Dow Inc. · NYSE:DOW
Dow — Investor Day (November 2018)
133 slides from Dow's investor day presentation, Nov 7, 2018
Slide 1: Creating the New Dow
CREATING THE NEW DOW JIM FITTERLING Chief Executive Officer, Dow Chief Operating Officer, Materials Science Division, DowDuPont
Slide 2: We are squarely focused on maximizing shareholder value
WE ARE SQUARELY FOCUSED ON MAXIMIZING SHAREHOLDER VALUE WHAT YOU WILL SEE & HEAR TODAY • Substantial changes are underway – mindset, cost structure and organization • New Dow has a bright future – streamlined, focused and positioned to win • Our resource allocation will reflect an unbiased, best-own
Slide 3: The New Dow: a compelling investment opportunity
THE NEW DOW: A COMPELLING INVESTMENT OPPORTUNITY HIGHER EARNINGS & CASH FLOW HIGHER VALUE • Reduced cost structure • Greater financial & capital discipline • Suite of low-risk growth projects • Streamlined, focused portfolio • Cycle discipline • Lower volatility vs. peers • Lower Capex • Higher ROIC
Slide 4: The New Dow: we are making changes
THE NEW DOW: WE ARE MAKING CHANGES THE ‘NEW DOW’ THE CATALYST FOR CHANGE Streamlined, focused portfolio & business model TRANSACTION RATIONALE Right-sizing cost structure, reducing layers • Create market leaders • Best-owner business alignment Unbiased, lower-risk, higher-return resource & • B
Slide 5: The New Dow: we are making changes
THE NEW DOW: WE ARE MAKING CHANGES THE ‘NEW DOW’ THE CATALYST FOR CHANGE Streamlined, focused portfolio & business model TRANSACTION RATIONALE Right-sizing cost structure, reducing layers • Create market leaders • Best-owner business alignment Unbiased, lower-risk, higher-return resource & • B
Slide 6: Streamlined and focused business portfolio
STREAMLINED AND FOCUSED BUSINESS PORTFOLIO MORE FOCUSED PORTFOLIO COMPOSITION RE-ALIGNED BUSINESSES RETAINED BUSINESSES • Ag • Home & Personal Care • Focused, singular business model • Electronic Materials • Coatings & Monomers • Water • Polyurethanes (incl. Europe CAV, • Microbial Control Construct
Slide 7: Focused, singular business model drives substantial changes
FOCUSED, SINGULAR BUSINESS MODEL DRIVES SUBSTANTIAL CHANGES PORTFOLIO CHANGES HAVE GIVEN US FOCUS… …AND ENABLED OPERATING CHANGES Old Dow(1) New Dow(1) AG Corteva Businesses 15+ 6 E&I Sector >10 3 Participation New DuPont Resource Intensity Employees ~56k ~37k N&B S&C Employees T&AP Aligned to <75%
Slide 8: Driving greater productivity, reducing layers
DRIVING GREATER PRODUCTIVITY, REDUCING LAYERS HEADCOUNT • Realized >$650MM of cost synergy savings through 3Q18 • ~$700MM of additional savings through 2019 • Reducing layers and complexity 2016 2Q18 TTM (Old Dow) (New Dow) • SG&A + R&D down $1.9B vs. 2015 • Driving down Corporate Cost to $(200)-(30
Slide 9: The New Dow portfolio: powerful scale and leading positions
THE NEW DOW PORTFOLIO: POWERFUL SCALE AND LEADING POSITIONS PERFORMANCE MATERIALS INDUSTRIAL INTERMEDIATES PACKAGING & SPECIALTY PLASTICS & COATINGS & INFRASTRUCTURE Packaging and Hydrocarbons & Consumer Solutions Coatings & Monomers Polyurethanes & CAV Industrial Solutions Specialty Plastics Energy
Slide 10: World class operations are our hallmark
WORLD CLASS OPERATIONS ARE OUR HALLMARK WORLD-CLASS SUSTAINABILITY TOP-TIER SAFETY HALLMARK OPERATIONAL LEADERSHIP PROGRAMS, TRANSPARENCY & GOAL PERFORMANCE EXCELLENCE POSITIONS SETTING 2017 OSHA Recordable 2017 Global Operating Rates(2) Incident Rate for Dow & Peers(1) #1 Siloxanes & Silicones Dow
Slide 11: The New Dow: we are making changes
THE NEW DOW: WE ARE MAKING CHANGES THE ‘NEW DOW’ THE CATALYST FOR CHANGE Streamlined, focused portfolio & business model TRANSACTION RATIONALE Right-sizing cost structure, reducing layers • Create market leaders • Best-owner business alignment Unbiased, lower-risk, higher-return resource & • B
Slide 12: Unbiased capex and resource allocation
UNBIASED CAPEX AND RESOURCE ALLOCATION STRONG BIAS FOR ACTION TO DRIVE VALUE CREATION Disciplined Growth (Industrial Solutions, P&SP, PU) Dow avg (~1.3X GDP) Industrial • Incremental expansions Solutions • Cost and growth synergies • Differentiated derivatives Op. ROIC (2Q18 TTM) Drive Returns Highe
Slide 13: Right-sizing SG&A and R&D cost structure
RIGHT-SIZING SG&A AND R&D COST STRUCTURE OLD DOW (2015), $4.5B SPEND(1) NEW DOW (2017), $2.7B SPEND Change in SG&A + R&D as a % of Sales Segment 1H18 vs. FY 2015(2) Down ~40% PM&C ↘ 60 bps II&I ↘ 120 bps P&SP ↘ 40 bps >10% of sales <6% of sales Lower intensity and resources spread across 10+ busines
Slide 14: Disciplined capex – lower spend and shifted to higher returns
DISCIPLINED CAPEX – LOWER SPEND AND SHIFTED TO HIGHER RETURNS CAPEX PROFILE ~$4B/year Drive rigorous, criteria-based prioritization Avg IRR: >13% • Hold capex budget ≤ D&A of ~$2.8B ~$2.8B/year • Lower risk and capital intensity Avg IRR: 10-13% • Project timing aligned to take advantage of economic
Slide 15: The New Dow: we are making changes
THE NEW DOW: WE ARE MAKING CHANGES THE ‘NEW DOW’ THE CATALYST FOR CHANGE Streamlined, focused portfolio & business model TRANSACTION RATIONALE Right-sizing cost structure, reducing layers • Create market leaders • Best-owner business alignment Unbiased, lower-risk, higher-return resource & • B
Slide 16: Our commitment to benchmarking
OUR COMMITMENT TO BENCHMARKING Drive external and internal accountability • Relative performance vs. peer set (quarter / annual) • Identify areas of opportunity and size upside potential Conduct at all levels (annual / biennial) • Enterprise-wide, reporting segments, businesses • Functions (e.g., Th
Slide 17: Culture of benchmarking: Performance Materials & Coatings
CULTURE OF BENCHMARKING AND INCREASED GRANULARITY PERFORMANCE MATERIALS & COATINGS BENCHMARKING SNAPSHOT(1,2,3,4) CORE STRENGTHS Op. EBITDA Growth Op. EBITDA Margin Free Cash Conv. SG&A + R&D FOCUS AREAS • World-class 2Q18 TTM vs. 2Q17 TTM 2Q18 TTM FY 2017 FY 2017, as a % of Sales • Pursue increment
Slide 18: Culture of benchmarking: Industrial Intermediates & Infrastructure
CULTURE OF BENCHMARKING AND INCREASED GRANULARITY INDUSTRIAL INTERMEDIATES & INFRASTRUCTURE BENCHMARKING SNAPSHOT(1,2,3,4) CORE STRENGTHS Op. EBITDA Growth Op. EBITDA Margin Free Cash Conv. SG&A + R&D FOCUS AREAS • Top global producer of 2Q18 TTM vs. 2Q17 TTM 2Q18 TTM FY 2017 FY 2017, as a % of Sale
Slide 19: Culture of benchmarking: Packaging & Specialty Plastics
CULTURE OF BENCHMARKING AND INCREASED GRANULARITY PACKAGING & SPECIALTY PLASTICS BENCHMARKING SNAPSHOT(1,2,3,4) CORE STRENGTHS Op. EBITDA Growth Op. EBITDA Margin Free Cash Conv. SG&A + R&D FOCUS AREAS • World-class packaging 2Q18 TTM vs. 2Q17 TTM 2Q18 TTM FY 2017 FY 2017, as a % of Sales • Improve
Slide 20: Dow P&SP delivers better returns & growth
DOW P&SP DELIVERS BETTER RETURNS & GROWTH FULL INTEGRATION DELIVERS ENHANCED RETURNS SIGNIFICANT PROFIT GROWTH STILL TO COME EBITDA Per Pound of Polyolefins Capacity(1) (2Q18 TTM, cpp) $600-$1,100MM(2) Market price transfer of ethylene adds another ~0.6 cpp 22 21 $400-$750MM(2) 18 $5.1B 12 Dow P&SP
Slide 21: Metrics drive culture, aligning with investor expectations
METRICS DRIVE CULTURE, ALIGNING WITH INVESTOR EXPECTATIONS EXTERNAL PROFIT INTERNAL TRANSFER PRICING JV DISCLOSURES METRIC Shifting back to Moving to market- Enhanced disclosure historical use of EBIT based internal for Principal JVs (will provide disclosure to transfer pricing (Principal JVs includ
Slide 22: Enhanced JV granularity reveals strengths and opportunities
ENHANCED JV GRANULARITY REVEALS STRENGTHS AND OPPORTUNITIES SADARA JV FOCUS • Multi-phase improvement plan in-flight • Feedstock supply & flexibility Dow Equity Earnings ($MM) • Pass LRT, remove related support costs KUWAIT & • Capacity creep THAILAND $850 – 900 $779 • Sell-up capacity – higher marg
Slide 23: The New Dow: we are making changes
THE NEW DOW: WE ARE MAKING CHANGES THE ‘NEW DOW’ THE CATALYST FOR CHANGE Streamlined, focused portfolio & business model TRANSACTION RATIONALE Right-sizing cost structure, reducing layers • Create market leaders • Best-owner business alignment Unbiased, lower-risk, higher-return resource & • B
Slide 24: Dow's Board of Directors
DOW’S BOARD OF DIRECTORS Jeff M. Fettig Ajay Banga Jacqueline K. James A. Bell Wesley G. Bush Executive chairman President and Barton Former executive Chairman and CEO, and co-lead CEO, Arthur and Marian vice president, Northrop Grumman independent director, MasterCard Hanisch Memorial corporate pre
Slide 25: Who you will hear from today
WHO YOU WILL HEAR FROM TODAY HOWARD JIM FITTERLING UNGERLEIDER Chief Executive President and Officer Chief Financial Officer MAURO GREGORIO NEIL CARR JANE DIEGO JACK PALMIERI ESTER DONOSO Business BAIGET BROODO Business President President Business Business Business President Business President Cons
Slide 26: Path Forward
PATH FORWARD 26
Slide 27: Our financial goals
OUR FINANCIAL GOALS Disciplined capital allocation and strong credit profile across the cycle LEADERSHIP Operating return on invested capital > 13% Management COMPENSATION incentives METRICS squarely • ROIC aligned with • Relative TSR Grow bottom-line faster than top-line shareholders • EBIT Growth
Slide 28: CEO near-term priorities
CEO NEAR-TERM PRIORITIES PROFITABLE DISCIPLINED CAPITAL LOW-COST BEST OWNER GROWTH ALLOCATION OPERATING MODEL MINDSET Capitalize on growth and Prioritize lower-risk, faster- Achieve best-in-class Implement most value- value-add materials science payback projects, with cost structures creating strate
Slide 29: Thank you
THANK YOU
Slide 30: Financial strength, flexibility & discipline
FINANCIAL STRENGTH, FLEXIBILITY & DISCIPLINE Howard Ungerleider President and Chief Financial Officer, Dow Chief Financial Officer, DowDuPont
Slide 31: Our financial goals
OUR FINANCIAL GOALS Disciplined capital allocation and strong credit profile across the cycle LEADERSHIP Operating return on invested capital > 13% Management COMPENSATION incentives METRICS squarely • ROIC aligned with • Relative TSR Grow bottom-line faster than top-line shareholders • EBIT Growth
Slide 32: New Dow's disciplined capital allocation framework
NEW DOW’S DISCIPLINED CAPITAL ALLOCATION FRAMEWORK CREDIT GROWTH DIVIDEND SHARE PROFILE INVESTMENTS POLICY REPURCHASES • Strong investment-grade • Lower-risk capex spending • Industry-leading long-term • Share repurchases are a credit profile across the payout ratio target across consistent part of
Slide 33: New Dow will have a strong & flexible balance sheet
NEW DOW WILL HAVE A STRONG & FLEXIBLE BALANCE SHEET $11-12B OF AVAILABLE LIQUIDITY AT SPIN MANAGEABLE DEBT MATURITY PROFILE Cash & Cash Equivalents Revolver $4.5B term loan; $3B $5B Dow holds option to extend maturity $ billions to 12/2021 Committed A/R Securitization $1.3B $2.5 $1.9 $1.8 Bilateral
Slide 34: Strong financial position enables attractive shareholder returns
STRONG FINANCIAL POSITION ENABLES ATTRACTIVE SHAREHOLDER RETURNS DIVIDEND PAYOUT RATIO (2013-2017 AVG) • Targeting industry-leading long-term dividend payout ratio across the cycle of ~45% of Net 45% Income S&P Chems (2013-2017 Avg)(1): 41% • Provides attractive dividend and profitable growth • Grow
Slide 35: Our financial goals
OUR FINANCIAL GOALS Disciplined capital allocation and strong credit profile across the cycle LEADERSHIP Operating return on invested capital > 13% Management COMPENSATION incentives METRICS squarely • ROIC aligned with • Relative TSR Grow bottom-line faster than top-line shareholders • EBIT Growth
Slide 36: Benchmarking highlights our ROIC opportunity
BENCHMARKING HIGHLIGHTS OUR ROIC OPPORTUNITY ROIC (2013-2017 AVG) ROIC EX-GOODWILL (2013-2017 AVG) KEY IMPROVEMENT LEVERS 25% 25% • Lower-risk, higher-return investment mindset 20% 20% • Earnings contribution from 15% 15% Median excl. Dow growth investments Median excl. Dow 10% 10% • Cost synergy an
Slide 37: Driving ROIC above our target on a consistent basis
DRIVING ROIC ABOVE OUR TARGET ON A CONSISTENT BASIS DowDuPont • ROIC target of ≥ 3% spread over our WACC, merger & business re-alignment Chlorine Dow Corning WACC chain ownership across the cycle divestiture restructure 14% + 3% Styron divestiture Introduced • Significant progress made to drive ROIC
Slide 38: Disciplined growth investments with lower risk
DISCIPLINED GROWTH INVESTMENTS WITH LOWER RISK WAVE 1 (2012-2018): LARGE-SCALE, MAINLY WAVE 2 (2019-2023): INCREMENTAL, GREENFIELD INVESTMENTS; CAPEX > D&A BROWNFIELD INVESTMENTS; CAPEX ≤ D&A • Univation catalyst Wave 2 ethylene • St. Charles cracker restart • Gas phase debottleneck • Alkoxylates &
Slide 39: Additional disclosures in-flight
ADDITIONAL DISCLOSURES IN-FLIGHT CHANGES WE’RE MAKING STATUS Disclosure of key product capacities, including JVs PROVIDED TODAY Annual updates on benchmarking progress Shift to EBIT as primary profit metric Shift to market-based internal transfers AT SPIN Disclosure of Dow’s share of Principal JV fi
Slide 40: Our financial goals
OUR FINANCIAL GOALS Disciplined capital allocation and strong credit profile across the cycle LEADERSHIP Operating return on invested capital > 13% Management COMPENSATION incentives METRICS squarely • ROIC aligned with • Relative TSR Grow bottom-line faster than top-line shareholders • EBIT Growth
Slide 41: Solid organic growth with profit & cash flow improvements
SOLID ORGANIC GROWTH WITH PROFIT & CASH FLOW IMPROVEMENTS YOY VOLUME GROWTH (%) Dow Global GDP WHAT WE’VE DONE TO GROW TOP-LINE ~2X GDP 8% • Strong execution of growth projects • Monetized accretive new product 2016 2017 1H18 TTM introductions OP. EBIT ($B)(1) • Aligned our business focus with marke
Slide 42: Bolstered bottom-line growth with significant cost reductions
BOLSTERED BOTTOM-LINE GROWTH WITH SIGNIFICANT COST REDUCTIONS DOW’S CUMULATIVE COST SYNERGY SAVINGS SYNERGY SAVINGS BREAKDOWN BY CATEGORIES ~$300MM SG&A and R&D Defined plans in place to achieve ~$700MM 20% Variable Cost majority of savings 25% by end of 2019 INCOME FIXED / STATEMENT VARIABLE BREAKD
Slide 43: Significant near-term earnings upside potential
SIGNIFICANT NEAR-TERM EARNINGS UPSIDE POTENTIAL MULTIPLE VALUE LEVERS DIRECTLY IN OUR CONTROL… …AND MORE POTENTIAL $200MM- $600MM- $400MM • JV improvements – MEGlobal $1,100MM USGC capacity add, Sadara ramp $400MM- $750MM • Continuous productivity to at least ~$900MM offset cost inflation ~$300MM GR
Slide 44: Our financial goals
OUR FINANCIAL GOALS Disciplined capital allocation and strong credit profile across the cycle LEADERSHIP Operating return on invested capital > 13% Management COMPENSATION incentives METRICS squarely • ROIC aligned with • Relative TSR Grow bottom-line faster than top-line shareholders • EBIT Growth
Slide 45: Operating earnings growth amplified by better cash conversion
OPERATING EARNINGS GROWTH AMPLIFIED BY BETTER CASH CONVERSION HISTORICAL EBITDA-TO-CFFO CONVERSION(1) VS. PEERS (2015-2017) OUR GOAL: DRIVE EBITDA-TO-CFFO CONVERSION TO BEST IN CLASS Peer 9 OUR OPPORTUNITY Peer 8 ~90% Closing the >10 pt gap Peer 7 would have generated Peer 6 ~$3B more cash flow Peer
Slide 46: Targeted levers to drive higher EBITDA-to-CFFO conversion
TARGETED LEVERS TO DRIVE HIGHER EBITDA-TO-CFFO CONVERSION CASH FLOW OPPORTUNITY (vs. 2018E) Merger-Related Reduce integration, separation and Costs restructuring costs ~$1B ~$100MM for every Net Working Capital Drive net working capital efficiency 1 day improvement Pension Contributions Reduced volu
Slide 47: The New Dow: a compelling investment opportunity
THE NEW DOW: A COMPELLING INVESTMENT OPPORTUNITY Low-risk, profitable business growth – in our control $2B to EBITDA Upside vs. 2Q18 TTM Accelerated bottom-line growth with synergies & productivity >$3B Path to sustainably higher ROIC across the cycle >13% ROIC Target Across the Cycle Better earning
Slide 48: Consumer Solutions
CONSUMER SOLUTIONS Mauro Gregorio Business President November 7, 2018
Slide 49: Consumer Solutions: unrivaled portfolio delivering robust results
Consumer Solutions UNRIVALED PORTFOLIO DELIVERING ROBUST RESULTS • Organic growth focus to serve a fast-growing, rapidly-changing industry • Largest scale, low cost, most global and holistic vertical integration among peers • Silicone industry’s broadest toolkit with unique innovation engine powered
Slide 50: Business at a glance
BUSINESS AT A GLANCE 2017 FINANCIALS(1) SUCCESS ENABLERS ADDRESSABLE MARKET SEGMENT > $20B GROWING > 1.5X GLOBAL GDP $5.1B >2X GDP 18 Manufacturing Sites Net Sales YOY Sales Increase 14 Innovation & Appl. Dev. Centers $1.3B 26% OP. EBITDA OP. EBITDA Margin E-commerce Platform HIGH PERFORMANCE BUILDI
Slide 51: High performance building
HIGH PERFORMANCE BUILDING: ENABLING THE NEXT GENERATION OF CITY SKYLINES Enable architects to achieve unique designs with proven performance Deliver energy-efficient, safe, sustainable buildings Safeguard high rises worldwide against weather, ensuring longevity and durability 51
Slide 52: Silicone elastomers: moldable optical silicones
SILICONE ELASTOMERS: MOLDABLE OPTICAL SILICONES FROM DOW EFFICIENTLY TRANSMITTING LIGHT INTO DESIRED SHAPES AND PATTERNS FEATURES AND BENEFITS APPLICATIONS • Optical performance High Power and High-Performance Lighting Lenses • Processing capability • Street lighting lenses • Environmental stability
Slide 53: Business at a glance
BUSINESS AT A GLANCE 2017 FINANCIALS(1) SUCCESS ENABLERS ADDRESSABLE MARKET SEGMENT > $20B GROWING > 1.5X GLOBAL GDP $5.1B >2X GDP 18 Manufacturing Sites Net Sales YOY Sales Increase 14 Innovation & Appl. Dev. Centers $1.3B 26% OP. EBITDA OP. EBITDA Margin E-commerce Platform HIGH PERFORMANCE BUILDI
Slide 54: Scale & global presence in a growing silicones market
SCALE & GLOBAL PRESENCE IN A GROWING SILICONES MARKET GLOBAL SUPPLY & DEMAND(1, 2, 3) CONSUMPTION BY REGION(4) SILOXANE CAPACITY SHARES(4) 2016-2021 Volume CAGR and Asset Utilization Global Capacity 2016 Siloxane Consumed 3,000 100% 90% China, 7.5% 834 KT 2,500 2,600 Dow 27% Kt 80% Other 33% Europe,
Slide 55: Successful integration unlocking significant value creation
SUCCESSFUL INTEGRATION UNLOCKING SIGNIFICANT VALUE CREATION SINCE THE DOW CORNING OWNERSHIP RESTRUCTURING IN 2016… $1.5B Highly accretive transaction for shareholders 2Q18 TTM $1.3B Captured $600MM+ in cost synergies 2017 Increased ROIC by >650 bps $0.7B Exceeded $60MM EBITDA growth synergy
Slide 56: Unparalleled value proposition
UNPARALLELED VALUE PROPOSITION FAST-GROWING STRATEGIC MARKETS Global Reach ACRYLATES CELLULOSICS Material Science Silicone Hybrids Digitalization SILICONES URETHANES High Throughput POLYOLEFINS Inclusive Workforce 56
Slide 57: Expanding growth opportunities with silicone hybrids
EXPANDING GROWTH OPPORTUNITIES WITH SILICONE HYBRIDS Silicone + Polyethylene Silicone + Acrylics Sustainability Driver $100MM Key Growth Areas Addressing Personal Care Trends Silicone enables greater use revenue by Multiple Markets Superior film-forming resistance of recycled polyethylene 2023 75% 9
Slide 58: One of the industry's largest B2B digital platforms
ONE OF THE INDUSTRY’S LARGEST B2B DIGITAL PLATFORMS LAUNCHED IMPROVED DIGITAL E-COMMERCE PLATFORM IN FEBRUARY 2018 (1,2) 180,000 5,000 7MM page views tech support searches products offered ~$3B REVENUE 3,300 540,000 ~ 50% annual sales customers product searches via e-commerce Low Cost to Serve Worki
Slide 59: Digital commerce multiplies our global reach
DIGITAL COMMERCE MULTIPLIES OUR GLOBAL REACH AND MARKET INTELLIGENCE 2 68 2 5K 4K 35K 646 25K 4K 178 38K 801 7K 33 9K 1K 174 5K 71 201K 2K 60K 32K 70K 16 579 1K 56 370 3K 52K 16K 5K 256 6K 47 10 7K 1k 16 7K 9 241 4 861 22 3K 18 4 298 11K 10k 5 1k 12 3K 1 31 1 58 37 47 8 170 5K 558 2K 2K 482 # of uni
Slide 60: Outperforming the industry
OUTPERFORMING THE INDUSTRY REVENUE SG&A AND R&D % OF SALES EBITDA MARGIN CAPITAL VS. D&A $5.1B 16% 26% Revenue EBITDA SG&A and R&D % of Margin D&A(2) Sales 19% EBITDA $2.7B Margin Revenue 8% Capital SG&A and Capital R&D % of Spend Spend D&A Sales Consumer Next Largest Consumer Industry Consumer Indu
Slide 61: Consumer Solutions: unrivaled portfolio delivering robust results
Consumer Solutions UNRIVALED PORTFOLIO DELIVERING ROBUST RESULTS • Organic growth focus to serve a fast-growing, rapidly-changing industry • Largest scale, low cost, most global and holistic vertical integration among peers • Silicone industry’s broadest toolkit with unique innovation engine powered
Slide 62: Thank you
® THANK YOU 62
Slide 63: Coatings and Performance Monomers
COATINGS AND PERFORMANCE MONOMERS Neil Carr Business President November 7, 2018
Slide 64: Global leader of high-performing, sustainable coating solutions
Coatings and Performance Monomers WE ARE THE GLOBAL LEADER OF HIGH-PERFORMING, SUSTAINABLE COATING SOLUTIONS • Results-driven: Delivered >500 bps improvement in EBITDA margin & ROIC from 2015 to 2017 • Low cost: Leading architectural coatings player, enabled by strong backward integration • Brand-bu
Slide 65: Coatings & Performance Monomers at a glance
~ $70% OF MONOMER SUPPLY SUPPORTS CAPTIVE COATINGS & PERFORMANCE MONOMERS DEMAND, ENABLING OVER $5B OF DOWNSTREAM REVENUE AT A GLANCE 2017 FINANCIALS(1) SUCCESS ENABLERS COATINGS ADHESIVES & CONSTRUCTION $3.7B 12% 44 Manufacturing Sites FUNCTIONAL MATERIALS CHEMICALS Net Sales YOY Sales Increase ~3,
Slide 66: Metal packaging
METAL PACKAGING CANVERATM Polyolefin Dispersion A novel technology enabling replacement of BPA containing epoxy coatings in metal packaging MARKET OPPORTUNITY Polyolefin Mitigation of Dispersion ~30% Materials of Concern SOM Technology Delivering value to various metal packaging types and closures M
Slide 67: Traffic & road marking technology
TRAFFIC & ROAD MARKING TECHNOLOGY FASTRACK™ Waterborne Traffic Paint Solutions Quick-dry, superior performance, industry trusted for over 25 years MARKET OPPORTUNITY Value Chain Direct Specification of 65% Penetration FASTRACK™ products U.S. Market Share MARKET DRIVERS Safety Sustainability Next-Gen
Slide 68: General industrial
GENERAL INDUSTRIAL Waterborne Freight Container Coating Low-VOC, reliable, and easy-to-use MARKET OPPORTUNITY Solventborne Coating Waterborne Coating ~80% VOC Reduction Applying Dow Waterborne Solutions to Replace Solventborne System MARKET DRIVERS VOC reduction Sustainability Wellness Acrylic Techn
Slide 69: We are the premier innovator in architectural coatings
WE ARE THE PREMIER INNOVATOR IN ARCHITECTURAL COATINGS THE FOUR MAIN INGREDIENTS OF PAINT INDUSTRY-LEADING PERFORMANCE POWERED BY DOW Water Pigment Additives Binder Dow works hand-in-hand with formulators Dow solutions featured in 7 of the to achieve the optimal finished product Top 10 architectural
Slide 70: Benchmarking highlights the progress we've made
BENCHMARKING HIGHLIGHTS THE PROGRESS WE’VE MADE DOW PERFORMANCE OUTPACING COMPETITION(1) KEY IMPROVEMENT DRIVERS Segment Benchmarking (2015 to 2017) Continuous Asset Productivity Idled monomer train & exited emulsion sites Peer Range Median EBITDA Optimized Cost Structure Growth $40MM cost out +
Slide 71: Strategic growth actions over the near-term
STRATEGIC GROWTH ACTIONS OVER THE NEAR-TERM COST REDUCTION ACTIONS NEW GROWTH ACTIONS Leverage Formulation Optimize Operations Redesign Service Model Win in Industrial Expertise +100-150 bps +100-150 bps +50-100 bps +50-100 bps EBITDA Margin EBITDA Margin EBITDA Margin EBITDA Margin • Top quartile m
Slide 72: Global leader of high-performing, sustainable coating solutions
Coatings and Performance Monomers WE ARE THE GLOBAL LEADER OF HIGH-PERFORMING, SUSTAINABLE COATING SOLUTIONS • Results-driven: Delivered >500 bps improvement in EBITDA margin & ROIC from 2015 to 2017 • Low cost: Leading architectural coatings player, enabled by strong backward integration • Brand-bu
Slide 73: Thank you
THANK YOU
Slide 74: Polyurethanes and Construction Chemicals
POLYURETHANES AND CONSTRUCTION CHEMICALS Jane Palmieri Business President November 7, 2018
Slide 75: Attractive returns from portfolio shifts and differentiation
Polyurethanes & Construction Chemicals ATTRACTIVE RETURNS FROM PORTFOLIO SHIFTS AND DIFFERENTIATION • Strong industry drivers – Polyurethanes market growth >1.5X GDP • Demand expected to outpace capacity growth for key PU components (polyols & isocyanates) • Shift to downstream strategy improves com
Slide 76: Business at a glance
ADDRESSABLE MARKET SEGMENT OF $60B BUSINESS AT A GLANCE GROWING AT >1.5x GLOBAL GDP ComfortScience 2017 FINANCIALS(1) SUCCESS ENABLERS $8.9B 21% Strengthening Differentiated Net Sales YOY Sales Increase Portfolio CONSUMER TRANSPORTATION Bedding, Mattresses, Pillows, Seat Cushioning, Sound $1.4B 15%
Slide 77: Earnings growth enabled by ongoing portfolio shifts
EARNINGS GROWTH ENABLED BY ONGOING PORTFOLIO SHIFTS DELIVERING POSITIVE OP. EBITDA(1) TREND OPPORTUNITY TO FURTHER IMPROVE PORTFOLIO BALANCE 2018 Global PU Capacities 16% 15% Dow 12% ~$500 ~$325 Covestro BASF ~$1,000 ~$1,100 Wanhua ~$900 Huntsman 2016 2017 2Q18TTM 0 500 1000 1500 2000 2500 3000 3500
Slide 78: Portfolio growth from systems, performance polyols & construction chem
PORTFOLIO GROWTH FROM SYSTEMS, PERFORMANCE POLYOLS & CONSTRUCTION CHEM TOTAL PORTFOLIO 2017 REVENUE Constr. PROVEN DIFFERENTIATION IN DOWNSTREAM Chem Polyurethanes MARKET SEGMENTS CAV • Faster than market growth (2-3X GDP) since Systems & Perf. Polyols Systems strategy implemented in 2014 $8.9B PO/P
Slide 79: ComfortScience
COMFORTSCIENCE Customized Solutions to Capture SleepTech Opportunity MARKET OPPORTUNITY Foundational Polyols ComfortScience Systems 3X 35% SOM1 of 5B lbs. 10% SOM(1) of 2B lbs. Unit Margin Microclimate Consumer comfort drivers aligned to MARKET DRIVERS Temperature, Humidity, Freshness differentiated
Slide 80: InsulationScience
INSULATIONSCIENCE Sustainable Solutions to Deliver Fresh Food MARKET OPPORTUNITY MDI / Foundational Polyols Cold Chain Systems 3X Unit Margin Continued leadership in Cold MARKET DRIVERS Chain industry Food Scarcity Food Waste Increasing Sustainability Population Low GWP Solutions PASCAL™ Technology
Slide 81: StructuralScience
STRUCTURALSCIENCE Durable, Easy-to-Use Infrastructure Solutions MARKET OPPORTUNITY MDI / Foundational Polyols PU Elastomer Systems 5X Unit Margin Delivering value to a range of innovative MARKET DRIVERS tailor-made infrastructure applications Ease of Application Durability Regulation Adhesives & Sea
Slide 82: Strategic path
STRATEGIC PATH PRIORITIES KEY INITIATIVES • Execute low risk, high return brownfield investments ⎻ Capex spend remains below D&A Strengthening Differentiated ⎻ Investments focused in pre-polymers, rigid blending, distillation & latex polymers Portfolio • Prioritize downstream growth over components
Slide 83: Higher returns from portfolio shifts and differentiation
Polyurethanes & Construction Chemicals HIGHER RETURNS FROM PORTFOLIO SHIFTS AND DIFFERENTIATION • High ROIC Systems, Performance Polyols & Construction Chemicals investments • Strong Polyurethanes industry fundamentals • Leading integration strength and advantaged differentiation capabilities • Incr
Slide 84: Thank you
® THANK YOU
Slide 85: Industrial Solutions
INDUSTRIAL SOLUTIONS Ester Baiget Business President November 7, 2018
Slide 86: Enabling manufacturing, infrastructure & industrial solutions
Industrial Solutions ENABLING MANUFACTURING, INFRASTRUCTURE & INDUSTRIAL SOLUTIONS • Integrated, low-cost business model with scale, global footprint and differentiated solutions • Delivering high ROIC to ethylene and propylene molecules • Participation in range of end-markets growing > GDP • Earnin
Slide 87: Business at a glance
BUSINESS AT A GLANCE 2017 FINANCIALS(1) SUCCESS ENABLERS MORE THAN 50% OF SALES IN MARKET Integrated Ethylene/Propylene SEGMENTS GROWING ABOVE GDP $4.1B 13% Model Net Sales YOY Sales Increase Flexible, Global Asset Footprint SUSTAINABLE TEXTILES ECOFAST™ Pure $1B 24% JV Partnerships Enabling unique,
Slide 88: Our solutions in action: sustainable textiles
OUR SOLUTIONS IN ACTION SUSTAINABLE TEXTILES ECOFAST™ Pure Sustainable Textile Treatment Unique, brighter colors on cotton textiles while reducing water, energy, dye and chemical use Cotton Pretreated with ECOFAST™ Pure • Unique, brighter colors • Up to 90% fewer chemicals used • Up to 50% less wate
Slide 89: Our solutions in action: oil & gas extraction and processing
OUR SOLUTIONS IN ACTION OIL & GAS EXTRACTION AND PROCESSING • Solutions that optimize performance throughout the oil and gas value chain • Industry leading expert consultancy Innovation Through Chemistry, Consultancy and Performance 89
Slide 90: Our solutions in action: 3D printing universal support
OUR SOLUTIONS IN ACTION 3D PRINTING UNIVERSAL SUPPORT MATERIAL (USM) • Maintains structural integrity during 3D printing process • Readily dissolves in tap water, providing safer-to- handle solution and eliminating need for harsh chemical disposal methods • Versatile, sustainable material Sustainabl
Slide 91: Operating model designed to deliver greatest returns
OPERATING MODEL DESIGNED TO DELIVER GREATEST RETURNS HOW WE GO TO MARKET OPERATING MODEL COMPETITORS Global scale & integration LyondellBasell Intermediates & Derivatives Operating Operating excellence Eastman EBITDA Leading Positions in EO, Solvents and Amines Higher capital intensity Additives & F
Slide 92: Business value drivers delivering portfolio upgrade
BUSINESS VALUE DRIVERS DELIVERING PORTFOLIO UPGRADE COMBINATION OF INTEGRATION, PARTICIPATION IN ATTRACTIVE MARKETS SCALE + FLEXIBILITY Market-Aligned Sales and Growth Pipeline: Integration, Low Cost & Scale: >50% of sales tied to markets growing > GDP Cost-advantaged Growth pipeline driven by disru
Slide 93: Business model to capture market-aligned growth
BUSINESS MODEL TO CAPTURE MARKET-ALIGNED GROWTH CONSUMER TECHNOLOGY > 1.5x GDP DIFFERENTIATED SOLUTIONS LIFE SCIENCES Electronics Increasing Return Over Ethylene/Propylene 1.5x GDP Processing ENERGY 3D Printing > 1x GDP Pharma INFRASTRUCTURE Sustainable 1x GDP Crop Defense Textiles Fuel Additives Fo
Slide 94: Differentiated products deliver attractive returns to monomers
DIFFERENTIATED PRODUCTS DELIVER ATTRACTIVE RETURNS TO MONOMERS ALKOXYLATES DELIVER A ~7x/LB HIGHER HIGHER ROIC INVESTMENTS RETURN OVER ETHYLENE(1) AT HALF THE Upcoming growth through incremental debottlenecking VOLATILITY OVER THE CYCLE and expansion investments with IRRs > 20% and DIFFERENTIATED RE
Slide 95: Embracing a culture of benchmarking
EMBRACING A CULTURE OF BENCHMARKING STRONG PROFITABLE GROWTH ABOVE PEERS (2Q18 TTM(1) VS. 2017) WHAT’S GOTTEN US HERE Revenue Growth (peer set range: 5-10%) 17% 2017 to 2Q18 TTM Performance Journey • Improved asset reliability and productivity • Sadara improvement Op. EBITDA Growth (peer set range:
Slide 96: Capturing the growth opportunity
CAPTURING THE GROWTH OPPORTUNITY 2017 Op. EBITDA of $1B(1) Near-Term Equity Earnings Improvement • MEGlobal investment, Sadara improvement Grow Op. EBITDA by • Advancing digitalization (Digital Dow) ~9% CAGR • Diligent price/volume management Maximizing Foundational Business Tools while • Strong ass
Slide 97: Enabling manufacturing, infrastructure & industrial solutions
Industrial Solutions ENABLING MANUFACTURING, INFRASTRUCTURE & INDUSTRIAL SOLUTIONS • Integrated, low-cost business model with scale, global footprint and differentiated solutions • Delivering high ROIC to ethylene and propylene molecules • Participation in range of end-markets growing > GDP • Earnin
Slide 98: Thank you
THANK YOU
Slide 99: Packaging & Specialty Plastics
PACKAGING & SPECIALTY PLASTICS Leading Global Plastics Franchise Diego Donoso Business President November 7, 2018
Slide 100: Packaging and Specialty Plastics
Packaging and Specialty Plastics • Industry leader on EH&S(1) with top-quartile results(2) • High asset utilization enabled by operational excellence • Emphasis on disciplined use of capital • Proprietary technologies serving high-value growth markets • Experienced and talented team Strong Pipeline
Slide 101: Segment at-a-glance
SEGMENT AT-A-GLANCE 2017 PRO FORMA FINANCIALS(1) SUCCESS ENABLERS ~ $700B ADDRESSABLE MARKET SEGMENT(3) GROWING AT ~1.5x GLOBAL GDP Advantaged feedstocks $22.5B 22% FLEXIBLE PACKAGING Net Sales YOY Sales Increase(2) World’s largest producer of Regional presence covering polyethylene and adhesives fo
Slide 102: Global ethylene supply / demand remains favorable
GLOBAL ETHYLENE SUPPLY / DEMAND REMAINS FAVORABLE ETHYLENE INDUSTRY TAKEAWAYS DOW’S ETHYLENE POSITION • Global market is generally balanced, but length • At spin, we will internally transfer ethylene at market price exists in USGC • Announced derivative expansions in the U.S. & Europe will allow • P
Slide 103: Global polyethylene supply / demand remains favorable
GLOBAL POLYETHYLENE SUPPLY / DEMAND REMAINS FAVORABLE GLOBAL POLYETHYLENE SUPPLY / DEMAND(1) KEY TAKEAWAYS 160 100 • Polyethylene is a global product, with Estimated 200-300 bps demand growing at ~1.4x global GDP improvement in 140 operating rate Polyethylene (MM Metric Tons) 90 • Strong operating r
Slide 104: Dow P&SP uniquely positioned to capture rapidly growing demand
DOW P&SP UNIQUELY POSITIONED TO CAPTURE RAPIDLY GROWING DEMAND Differentiated PE Demand Commodity PE Demand • Population growth, urbanization, rising middle-class incomes continue to drive NAA overall PE demand Developed Regions: Polyethylene Demand Per Capita 33 kg per capita • Dow is focused on ca
Slide 105: Customer to catalyst engine drives differentiated PE demand
CUSTOMER TO CATALYST ENGINE DRIVES DIFFERENTIATED PE DEMAND AND VALUE DEVELOPMENT CAPABILITIES RECYCLEREADY™ TECHNOLOGY Market-Aligned Collaboration with VALUE CHAIN MARKET NEEDS Technical Service & 7th Generation to develop Application Development 100% PE stand up pouch – replacing PET and Nylon Po
Slide 106: Top global producer with strategic geographic footprint
TOP GLOBAL PRODUCER WITH STRATEGIC GEOGRAPHIC FOOTPRINT ETHYLENE CAPACITY BY SHAREHOLDER (2018)(1) POLYETHYLENE CAPACITY BY SHAREHOLDER (2018)(1) Thousand MT 0 3,000 6,000 9,000 12,000 15,000 Thousand MT 0 2,000 4,000 6,000 8,000 10,000 Dow Dow JVs(2) Dow Sabic ExxonMobil ExxonMobil Sinopec Sinopec
Slide 107: Location and feed flexibility drive competitive advantage
LOCATION AND FEED FLEXIBILITY DRIVE COMPETITIVE ADVANTAGE 2017 GLOBAL CASH COST CURVE(1) DOW’S SOURCES OF COMPETITIVE ADVANTAGE $800 • Advantaged cost positions in Americas and Europe Ethylene Cash Cost, USD/MT $600 Asia Dow Latin Latin Dow Europe • Industry leading flexibility provides key strategi
Slide 108: PE value generation through commercial and operational excellence
PE VALUE GENERATION THROUGH COMMERCIAL AND OPERATIONAL EXCELLENCE HIGHEST FLEXIBILITY POLYMER TECHNOLOGIES BEST-IN-CLASS IN REVENUE GENERATION • Standardized technologies with leveraged resource deployment AND CONVERSION COST • Gives highest flexibility to maximize return on capacity investment • Ha
Slide 109: Functional polymers deliver higher returns to ethylene
FUNCTIONAL POLYMERS DELIVER HIGHER RETURNS TO ETHYLENE 50% HIGHER OP. EBITDA PER POUND OF ETHYLENE FROM KEY TAKEAWAYS SAME PROCESS TECHNOLOGIES(1) • Functional Polymers portfolio has contributed: ⎻ One-third of total derivatives revenue ⎻ ~600 bps Op. EBITDA margin improvement over last 5 years • Se
Slide 110: Strong segment financial performance
STRONG SEGMENT FINANCIAL PERFORMANCE DERIVATIVE GROWTH OF 5% CAGR SINCE 2014 BEST-IN-CLASS SEGMENT OP. EBITDA MARGINS(1) 10,000 30% Average of 2015-17 Volume (KTA) 9,000 25% 20% 8,000 15% 7,000 10% 5% 6,000 0% 2013 2014 2015 2016 2017 Dow P&SP Comp A Comp B Comp C Comp D Comp E Comp F STRONG CASH FL
Slide 111: Earnings growth from operational excellence and targeted investments
EARNINGS GROWTH FROM OPERATIONAL EXCELLENCE AND TARGETED INVESTMENTS OPERATING EBITDA GROWTH DRIVERS 2017 NEAR-TERM OPERATING EBITDA MARGIN 21% ~23%(1) Synergies/Productivity • Continue to capture cost and growth synergies of integrated businesses • Accelerating program to deliver improvements in et
Slide 112: Packaging and Specialty Plastics
Packaging and Specialty Plastics • Industry leader on EH&S with top-quartile results(1) • High asset utilization enabled by operational excellence • Emphasis on disciplined use of capital • Proprietary technologies serving high-value growth markets • Experienced and talented team Strong Pipeline of
Slide 113: Thank you
THANK YOU
Slide 114: Feedstocks & Energy
FEEDSTOCKS & ENERGY Jack Broodo Business President November 7, 2018 114
Slide 115: Dow's global foundation
DOW’S GLOBAL FOUNDATION Designed & Built for Advantage • Feedstocks & Energy Asset Footprint and Scale • Unique Ability to Win from Market Movements • Tackling Challenges to a “Lower Carbon World” • Feedstock & Energy Market Views • Optimization Investment to Enhance Profitability & Support Growth P
Slide 116: Business at a glance
BUSINESS AT A GLANCE ~3,300 17 >7GW crackers Consume >1MM people together(1) of power and steam working for profitability 5 30 across BPD of feedstocks JV crackers Major sites $ >0.7GW ~75% renewable of Dow’s raw material spend Major feedstocks and energy consumer with scale and capability (1) Acros
Slide 117: Tactical advantage: in & ahead of the markets every day
TACTICAL ADVANTAGE: IN & AHEAD OF THE MARKETS EVERY DAY Asset & Logistics Flexibility that Keeps Pace with Detected Trading Opportunities Dow site in St. Charles, Louisiana, USA Dow site in Terneuzen, The Netherlands Dow site in Tarragona, Spain RAPIDITY OF CHANGE FEEDSTOCK FLEXIBILITY MARKET INSIGH
Slide 118: Strategically advantaged in every region
STRATEGICALLY ADVANTAGED IN EVERY REGION Industry-Leading Flexibility Drives Value through the Cycle AMERICAS Feedstock Consumption Ranges(1) (kbbl/d) 1 1 Naphtha 3 1 1 LPG 4 2 3 1 Ethane 2 0 300 600 FIRST MOVERS: Real end-to-end rapid flexibility Structural hedges in disconnected markets are cost-a
Slide 119: Free of upstream capex and production puts
FREE OF UPSTREAM CAPEX AND PRODUCTION PUTS Free to Optimally Position Feedstock Mix Based on Market Dynamics CRUDE OIL & NATURAL GAS 25 Spot Price ($/MMBtu) 20 Brent Crude 15 Dow Advantage vs. 10 O/G Integrated Competitors 5 Henry Hub Natural Gas Source: IHS-Markit 0 Freedom to select position impro
Slide 120: Advantaged in both the strategic and tactical horizons
ADVANTAGED IN BOTH THE STRATEGIC AND TACTICAL HORIZONS Designed and Built to Capitalize on Market Volatility to Create Shareholder Value 1 Minimal commitments upstream 2 First mover with advantaged structural hedges 3 Global market player with diversified exposure 4 Feedstocks and trading flexibilit
Slide 121: Tackling the challenges to a lower carbon world
TACKLING THE CHALLENGES TO A LOWER CARBON WORLD 121
Slide 122: A value-driven clean energy portfolio
A VALUE-DRIVEN CLEAN ENERGY PORTFOLIO Seeking to Meet & Surpass Shareholder Expectations • Dow proprietary optimization delivers ~$200MM/yr Affordability h-DuPont Sabine power plant: 2X value ($20MM to $40MM) • Largest(1) petchem clean power portfolio (>10% of purchases) Societal Science Requireme
Slide 123: Market outlooks
® MARKET OUTLOOKS 123
Slide 124: Brent oil bullish to mid-2019, neutral late '19, constructive 2020+
BRENT OIL BULLISH TO MID-2019, NEUTRAL LATE ’19, CONSTRUCTIVE 2020+ OPEC SPARE CAPACITY DECLINES TO BALANCE MARKET(1) PERMIAN GROWTH CURRENTLY CONSTRAINED, 6.0 BUT UPSIDE IN 2H19(2) 5.0 Spare Capacity, MMbbl/d Constrained Growth 4.0 Through 1H19 MMBPD 3.0 Total OPEC Spare Capacity Production 2.0 Ups
Slide 125: US natural gas is well supplied at <$3/MMBtu
US NATURAL GAS IS WELL SUPPLIED AT <$3/MMBTU RISING US NATURAL GAS PRODUCTION(1) Misc. Appalachian Haynesville Permian Eagle Ford NATURAL GAS OUTLOOK 120 SCOOP/STACK Bakken Gulf of Mexico DJ • Dow is actively working to invest in low-cost long-term 100 gas positions 80 • Deepens our first-hand knowl
Slide 126: Ethane advantages in Canada & Argentina expand
ETHANE ADVANTAGES IN CANADA & ARGENTINA EXPAND, TEMPORARY VOLATILITY IN USGC EMPHASIZES DOW FLEXIBILITY AND MARKET AGILITY Pipeline + Rejection Cracker Demand Waterborne Supply U.S. ETHANE OUTLOOK Exports 3000 • Ethane is well-supplied but temporarily logistically limited 2500 • Associated gas, main
Slide 127: LPG supply grows from associated gas and return of OPEC oil
LPG SUPPLY GROWS FROM ASSOCIATED GAS AND RETURN OF OPEC OIL 4000 PROPANE/LPG OUTLOOK 3500 • Supply growth from associated gas (Permian, WCSB) 3000 • U.S. propane surplus to expand through next decade • Vienna Group oil production brings LPG to market LPG (kbbl/d) 2500 2000 • Exports limited by termi
Slide 128: Improving existing fleet; footprint attractive for growth
IMPROVING EXISTING FLEET; FOOTPRINT ATTRACTIVE FOR GROWTH CANADA EUROPE STRATEGY THAT ENABLES PROFITABLE GROWTH + FS-1 expansion + Reliability/efficiency • Focus on improving overall returns, reliability and efficiency + Improving feedstock supply improvements • Expansions (Canada, U.S.) + Extending
Slide 129: A firm foundation that delivers across the market
A FIRM FOUNDATION THAT DELIVERS ACROSS THE MARKET • Dow’s robust global feedstock advantage will continue • 40% of Dow’s ethane in the Americas is hugely advantaged (Canada/Argentina) • USGC ethane volatility can be readily handled through feedstock flexibility and market agility • Incremental inves
Slide 130: Thank you
THANK YOU 130
Slide 131: Safe harbor statements
SAFE HARBOR STATEMENTS Cautionary Statement about Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
Slide 132: Safe harbor statements (continued)
SAFE HARBOR STATEMENTS (CONTINUED) Cautionary Statement about Forward-Looking Statements, continued Discussion of segment revenue, operating EBITDA and price/volume metrics on a divisional basis for Materials Science is based on the combined results of the Performance Materials & Coatings, Industria
Slide 133: Definitions
DEFINITIONS Definitions Pro Forma Operating EBIT is defined as pro forma earnings (i.e., pro forma “income from continuing operations before income taxes”) before interest, excluding the impact of adjusted significant items. Pro forma Operating EBITDA is defined as pro forma earnings (i.e., pro form