Dow Inc. · NYSE:DOW
Dow — Bernstein 39th Annual Strategic Decisions Conference 2023
12 slides from Dow's conference presentation, May 31, 2023
Slide 1: Dow Presents at the Bernstein 39th Strategic Decisions Conference
DOW PRESENTS AT THE BERNSTEIN 39TH STRATEGIC DECISIONS CONFERENCE JIM FITTERLING, DOW CHAIR AND CEO May 31, 2023
Slide 2: Disciplined Execution Enables Resiliency Across Dynamic Environments
DISCIPLINED EXECUTION ENABLES RESILIENCY ACROSS DYNAMIC ENVIRONMENTS Enhanced Financial Performance and Capital Structure Stable Cash Flow from Operations (CFFO) Generation Key Metrics At Spin YE22 Operating EBITDA ($B) $12.4 Operating EBITDA (3-Year Avg.)1 $8.2B $9.1B CFFO ($B) $9.3 $7.3 Free Cash
Slide 3: A Compelling Investment Opportunity
A COMPELLING INVESTMENT OPPORTUNITY Leading Cash Flow Generation Current Valuation Growing enterprise value while driving zero-carbon emissions Across the Economic Cycle EV / 2024 Op. EBITDA2 • Global scale in key value chains, with low-cost positions and 2020-2022 Avg. Annual Free Cash Free Cash Fl
Slide 4: Advancing Near-Term Growth Investments
ADVANCING NEAR-TERM GROWTH INVESTMENTS Underlying Trends Driving Demand Growth in Attractive Market Verticals 1 Near-Term Growth Investments Expected Packaging Infrastructure to Generate ~$2B Underlying EBITDA by Mid-Decade ~30% ~35% ▪ P&SP: FCDh operational and ramping up rates; incremental PE Dema
Slide 5: Decarbonize & Grow Investments Unlock Long-Term Growth Opportunities
DECARBONIZE & GROW INVESTMENTS UNLOCK LONG-TERM GROWTH OPPORTUNITIES Expect to grow capacity and underlying earnings by >$3B/year, while reducing CO2 emissions by ~30%1 by 2030. Innovation, Renewable Energy Alberta Net-Zero Terneuzen 2030 & Efficiency Scope 1 & 2 CO2 Emissions Site Reduced CO2 Emiss
Slide 6: Operational Discipline Through Dynamic Market Conditions
OPERATIONAL DISCIPLINE THROUGH DYNAMIC MARKET CONDITIONS Maintaining operational discipline as we NAA LAA EMEAI APAC China navigate a dynamic macro environment (excl. China) Expect 2Q23 net sales in the range of $11.0 – $11.5B Packaging Packaging Earnings outlook remains in line with modeling consid
Slide 7: Executing with Agility and Discipline
EXECUTING WITH AGILITY AND DISCIPLINE ✓ Implementing targeted actions to achieve $1B in cost savings in 2023 ✓ Focus on cash flow generation – TTM cash flow conversion of 85% Strong financial position – ample liquidity of >$13B with no substantive long-term debt ✓ maturities due until 2027 ✓ Advanci
Slide 8: Safe Harbor
SAFE HARBOR Cautionary Statement about Forward-Looking Statements Certain statements in this presentation are “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 Ac
Slide 9: Non-GAAP Financial Measures & Definitions
NON-GAAP FINANCIAL MEASURES & DEFINITIONS Non-GAAP Financial Measures This presentation includes information that does not conform to GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segment
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Slide 11: Delivering on Our Decarbonize & Grow Strategy
DELIVERING ON OUR DECARBONIZE & GROW STRATEGY Reducing CO2 Emissions by ~2MM On-Track to Deliver ~$2B/year EBITDA1 Growth mta/year2 by YE25 Projects Start-Up Est. EBITDA1 Status ~1MM Scope 1 & 2 Fort Saskatchewan cracker expansion 2H 2021 ~$75 – 100MM Complete CO2 Emissions ~0.5MM FCDh unit in Louis
Slide 12: Lower-Risk Growth Investments Enhance Near-Term Earnings Profile
LOWER-RISK GROWTH INVESTMENTS ENHANCE NEAR-TERM EARNINGS PROFILE Growth from Capital Investments Growth from Operating Investments EBITDA Run-Rate Segment ~$0.9 – 1.1B EBITDA1 ~$0.8 – 1.0B EBITDA1 C2/PE and Functional Polymers capacity Capabilities to enhance mix Packaging & Specialty Plastics Enhan
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