Dow Inc. · NYSE:DOW
Dow — The Dow Chemical Company — Shareholder Meeting (2017)
39 slides from Dow's shareholder meeting presentation, May 27, 2017
Slide 1: Slide 1
Slide 2: SEC Disclosure
SEC Disclosure Some of our comments today include statements about our expectations for the future. Those expectations involve risks and uncertainties. Dow cannot guarantee the accuracy of any forecasts or estimates, and we do not plan to update any forward-looking statements if our expectations cha
Slide 3: Slide 3
Slide 4: 120th Annual Meeting of Stockholders
120th Annual Meeting of Stockholders Andrew N. Liveris Chairman & CEO
Slide 5: New Dow
New Dow
Slide 6: Digitalization Globalization Sustainability
Digitalization Globalization Sustainability
Slide 7: Digitalization Globalization Sustainability
Digitalization Globalization Sustainability
Slide 8: Digitalization Globalization Sustainability
Digitalization Globalization Sustainability
Slide 9: Digitalization Globalization Sustainability
Digitalization Globalization Sustainability
Slide 10: Transformation
Transformation 2008 • Acquired Rohm & Haas 2006 • Approached DuPont 2010 for MOE • Divested Styrenics • Approached Syngenta for to Bain Merger 2011 2000-2005 • Cyclical • Divested Refinery Commodities 2015 Stake • Divested Chlorine to Olin 2013 • Reduced Stake in Kuwait • Decision to Exit • Announce
Slide 11: A Portfolio for All Seasons
Transformation A Portfolio for All Seasons • Higher Margin • Technology-Driven Materials • Markets & Value Chains: Narrower and Deeper
Slide 12: Extended Winning Streak
Extended Winning Streak • 18th consecutive quarter of year-over-year operating EPS growth • 14th consecutive quarter of year-over-year adjusted volume growth • Highest-ever operating EBITDA • Highest EBITDA margin in nearly two decades Select highlights from 4Q16 and 1Q17
Slide 13: Extended Winning Streak
Extended Winning Streak • Returned nearly $3 billion to our shareholders in 2016 • Highest annual dividend – a record $2 billion • Converted all “Series A” preferred shares into common stock • Record high stock price Select highlights from 4Q16 and 1Q17
Slide 14: Driving Into the Future
Driving Into the Future Higher, More Consistent Earnings Reduced Volatility; Record EBITDA in 2016 Increased Cash Flow Generation Clear Inflection in EPS Growth & Trajectory Avg. Operating EBITDA ($B) Avg. Operating Cash Flow 1 ($B) $6.7 Avg. Op. EPS $3.72 $9.8 $3.0 $1.87 $5.1 2001-05 2006-10 2011-1
Slide 15: Strategic Trajectory
Strategic Trajectory Quarter after Quarter
Slide 16: Innovation and Integration
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Slide 17: Dow Corning
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Slide 18: Dow Corning: Hand-in-Glove Fit
Dow Corning: Hand-in-Glove Fit ADVANTAGED NARROWER, DEEPER BACK-INTEGRATION END-MARKET PRESENCE High-Throughput Ethylene Research Packaging Catalyst Discovery & Ligand Synthesis Transportation Polymer Science Building Blocks Platforms Infrastructure Solutions Propylene Material Science Formulation S
Slide 19: Dow Delivering New-to-the-World Solutions
Dow Delivering New-to-the-World Solutions
Slide 20: Dow Delivering New-to-the-World Solutions
Dow Delivering New-to-the-World Solutions Infrastructure Packaging Consumer Care Transportation
Slide 21: Dow Delivering New-to-the-World Solutions
Dow Delivering New-to-the-World Solutions Infrastructure Packaging Consumer Care Transportation
Slide 22: Dow Delivering New-to-the-World Solutions
Dow Delivering New-to-the-World Solutions Infrastructure Packaging Consumer Care Transportation
Slide 23: Dow Delivering New-to-the-World Solutions
Dow Delivering New-to-the-World Solutions Infrastructure Packaging Consumer Care Transportation
Slide 24: Dow Delivering New-to-the-World Solutions
Dow Delivering New-to-the-World Solutions Infrastructure Packaging Consumer Care Transportation
Slide 25: High-throughput Experimentation
High-throughput Experimentation • 2 million experiments a year • 754 U.S. patent grants • Most powerful innovation engine
Slide 26: Powerful Growth Drivers
Powerful Growth Drivers TECHNOLOGY-RICH SOLUTIONS Remaining units are schedule to start-up Othe throughout 2017 r PACKAGING INDUSTRIAL PACKAGING Plastics franchise has been commercialized 18 units in operating or HEALTH & HYGIENE AUTOMOTIVE startup 26 integrated mode world-scale manufacturing plants
Slide 27: Powerful Growth Drivers
Powerful Growth Drivers Silicone TECHNOLOGY-RICH SOLUTIONS s Othe US Gulf Coast r Ethylene plant construction is complete GAS PHASE DE-BOTTLENECK ELITE™ Louisiana expansion Dow’s long-term BI-MODAL NEXT-GENERATION commitment to DE-BOTTLENECK LDPE making products for world markets NEXT-GENERATION HIG
Slide 28: Historic Merger
Historic Merger Agriculture Co. Specialty Products Co. *The post-merger Materials Science Company is expected to be the first spin-off, assuming such sequencing would allow for the completion of all intended spin-offs within 18 months of merger closing and would not adversely impact the value of the
Slide 29: The New Dow
The New Dow ADVANTAGED WORLD-CLASS SCIENCE AND NARROWER, DEEPER BACK-INTEGRATION ENGINEERING CAPABILITIES END-MARKET PRESENCE High-Throughput Ethylene Research Packaging Catalyst Discovery & Ligand Synthesis Polymer Science Building Blocks Transportation Platforms Solutions Propylene Material Scienc
Slide 30: The New Dow
The New Dow ADVANTAGED WORLD-CLASS SCIENCE AND NARROWER, DEEPER BACK-INTEGRATION ENGINEERING CAPABILITIES END-MARKET PRESENCE High-Throughput Ethylene Research Packaging Catalyst Discovery & Ligand Synthesis Polymer Science Building Blocks Transportation Platforms Solutions Propylene Material Scienc
Slide 31: The New Dow
The New Dow Packaging Transportation Infrastructure Consumer Care
Slide 32: The New Dow
The New Dow Packaging Transportation Infrastructure Consumer Care
Slide 33: The New Dow
The New Dow Packaging Transportation Infrastructure Consumer Care
Slide 34: The New Dow
The New Dow Packaging Transportation Infrastructure Consumer Care
Slide 35: The New Dow
The New Dow Packaging Transportation Infrastructure Consumer Care
Slide 36: The Next Level of Growth
The Next Level of Growth Cum. Cash to Operating EPS: >2x Increase Operating Cash Flow1: Up 50% Operating ROC: Up 390 bps Shareholders3: >$17B $4.25 $3.89 CAPEX Op. Free Cash Flow 2 $17.1 $8 13% $18 ($B) ($B) $6.7 11.5% $3.50 $6 11% $2.75 $4.1 $3.0 $12 $4 9% $1.5 7.6% $2.00 $1.90 $2 7% $6 $1.25 $0 5%
Slide 37: Delivering Higher, More Consistent Earnings
Delivering Higher, More Consistent Earnings Innovation & Integration Shift Earnings Trajectory 7-Year Avg Operating EBITDA Future Dow Operating EBITDA ($ billion)1 ~ $15B “New Dow” 1Q17 TTM 2012 > $10B < $8B CAGR: 1% Below-GDP Growth Above-GDP Growth 1995 2000 2005 2010 2015 1 Source: Dow 10-K filin
Slide 38: Next Phase of Growth Investments
Next Phase of Growth Investments Double Dow’s growth investments to more $12 billion over a 10-year period • Expand our new Texas-9 cracker • Unleash an additional 350,000 – world’s largest ethylene facility metric tons of polyethylene from our • Construct world-scale polyethylene existing asset net
Slide 39: Slide 39
The Dow Chemical Company — Shareholder Meeting (2017) on 6ix