Slide 1: FY23 Benchmarking Update
FY23 BENCHMARKING UPDATE April 25, 2024
Slide 2: Dow Remains a Compelling Investment Opportunity
DOW REMAINS A COMPELLING INVESTMENT OPPORTUNITY Leading Cash Flow Generation Current Valuation Attractive shareholder remuneration Across the Economic Cycle EV / 2025 Op. EBITDA2 ▪ Dividend yield well covered by free cash flow generation 2021-2023 Avg. Annual Free Cash Free Cash Flow Yield1 7.1x ▪ E
Slide 3: Financial Flexibility to Advance Long-Term Strategy
FINANCIAL FLEXIBILITY TO ADVANCE LONG-TERM STRATEGY Enhanced Financial Performance and Capital Structure Solid Financial Position Key Metrics At Spin 4Q23 ▪ Reduced net debt and pension liabilities No Substantial Debt Maturity Until 2027 Operating EBITDA (3-Year Avg.)1 $8.2B $9.0B ($B) by ~$10B sinc
Slide 4: Benchmarking Peers
BENCHMARKING PEERS Total Dow P&SP Olefins & Polyolefins Chemical Products Corporate Polyolefins II&I Corporate Corporate Corporate Intermediates & Derivatives PM&C Functional Silicones Acetyl Chain Solutions & Corporate Specialties Materials Benchmarking conducted against segment level peers if suff
Slide 5: Total Dow Benchmarking: Summary of Observations
TOTAL DOW BENCHMARKING: SUMMARY OF OBSERVATIONS Benchmarking: Strengths & Gaps ✓ FY23 Adj. Op. EBITDA margin above the peer group median benefiting from our cost-advantaged footprint, with 65% of capacity in the Americas, as well as leading feedstock flexibility and low cost-to-serve operating model
Slide 6: Total Dow Benchmarking Snapshot
TOTAL DOW BENCHMARKING SNAPSHOT (1,2,3) CORE STRENGTHS FOCUS AREAS FY23 UPDATE & FY22 • Hallmark safety Adj. Op. EBITDA Adj. Op. EBITDA SG&A + R&D • Execute on Decarbonize & performance and Cash Flow Conversion Grow and Transform the Growth Margin (as a % of Sales) operational excellence FY23 vs. FY
Slide 7: Delivering on Disciplined and Balanced Capital Allocation Strategy
DELIVERING ON DISCIPLINED AND BALANCED CAPITAL ALLOCATION STRATEGY Operating Return on Capital (%) Free Cash Flow Yield1 (%) 2021-2023 Annual Average 2021-2023 Annual Average 15% Median 13% Excl. Dow ~10% Median Excl. Dow ~7% Peer 1 Peer 2 DOW Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 2 Dow Peer 1 Pee
Slide 8: Culture of Benchmarking: Summary of Observations
CULTURE OF BENCHMARKING: SUMMARY OF OBSERVATIONS Segment Benchmarking: Strengths & Gaps YoY Adj. Op. EBITDA outperformed the peer median, driven by our differentiated portfolio and global scale ✓ Adj. Op. EBITDA margin delivered best-in-class performance, driven by a global footprint with low-cost
Slide 9: Packaging & Specialty Plastics Benchmarking Snapshot
PACKAGING & SPECIALTY PLASTICS BENCHMARKING SNAPSHOT (1,2,3) CORE STRENGTHS FY23 UPDATE & FY22 FOCUS AREAS Adj. Op. EBITDA Adj. Op. EBITDA SG&A + R&D • World-class packaging Free Cash Conversion • Execute on Decarbonize & Growth Margin (as a % of Sales) franchise with leading FY23 vs. FY22 vs. FY23
Slide 10: Dow's Differentiated P&SP Portfolio
DOW’S DIFFERENTIATED P&SP PORTFOLIO Dow’s P&SP Continues to Deliver Superior Returns Demonstrating Resiliency by Generating Higher Margins vs. Peers Op. EBITDA Per Pound of Annual Op. EBITDA Margins Polyolefins Capacity1 (cpp) 30% 25% 25 Advantage over Peers 20% 5-Yr Avg. 20 16 17 ~21%. 15% 15 12 9
Slide 11: Industrial Intermediates & Infrastructure Benchmarking Snapshot
INDUSTRIAL INTERMEDIATES & INFRASTRUCTURE BENCHMARKING SNAPSHOT (1,2,3) CORE STRENGTHS FY23 UPDATE & FY22 FOCUS AREAS • Leading producer of Adj. Op. EBITDA Adj. Op. EBITDA SG&A + R&D • Execute on Decarbonize & Free Cash Conversion Purified Ethylene Oxide, Growth Margin (as a % of Sales) Grow strateg
Slide 12: Performance Materials & Coatings Benchmarking Snapshot
PERFORMANCE MATERIALS & COATINGS BENCHMARKING SNAPSHOT (1,2,3) CORE STRENGTHS FY23 UPDATE & FY22 FOCUS AREAS Adj. Op. EBITDA Adj. Op. EBITDA SG&A + R&D • Leading producer of Free Cash Conversion • Execute on Decarbonize & Siloxanes & Silicones and Growth Margin (as a % of Sales) Grow strategy and de
Slide 13: General Comments
GENERAL COMMENTS Background On April 1, 2019, DowDuPont completed the separation of its materials science business and Dow Inc. became the direct parent company of TDCC, owning all of the outstanding common shares of TDCC. For filings related to the period commencing April 1, 2019 and thereafter, TD
Slide 14: 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 15: 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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