Slide 1: Dow FY22 Benchmarking Update
DOW FY22 BENCHMARKING UPDATE April 25, 2023
Slide 2: Dow Remains a Compelling Investment Opportunity
DOW REMAINS A COMPELLING INVESTMENT OPPORTUNITY Leading Cash Flow Generation Growing enterprise value while driving zero-carbon emissions Current Valuation Across the Economic Cycle • Global scale in key value chains, with low-cost positions and 2020-2022 Avg. EV / 2024 Op. EBITDA2 advantaged deriva
Slide 3: Continued Focus on Cash Flow Generation
CONTINUED FOCUS ON CASH FLOW GENERATION 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 Flow (3-Year Cumulative)1 $5.
Slide 4: Benchmarking Peers
BENCHMARKING PEERS Total Dow P&SP Olefins & Polyolefins Chemical Products1 Corporate Polyolefins II&I Intermediates & Derivatives Corporate Corporate Corporate1 PM&C Silicones Acetyl Chain1 Solutions & Corporate Functional Specialties Materials Benchmarking conducted against segment level peers if s
Slide 5: Total Dow Benchmarking: Summary of Observations
TOTAL DOW BENCHMARKING: SUMMARY OF OBSERVATIONS Benchmarking: Strengths & Gaps FY22 Adj. Op. EBITDA margin remained among the top of the peer group with higher resiliency from a differentiated portfolio and leading feedstock flexibility with low-cost-to-serve positions FY22 YoY Adj. Op. EBITDA g
Slide 6: Total Dow Benchmarking Snapshot
TOTAL DOW BENCHMARKING SNAPSHOT (1,2,3) CORE STRENGTHS FY22 UPDATE & FY21 FOCUS AREAS Adj. Op. EBITDA Adj. Op. EBITDA SG&A + R&D • Hallmark safety Cash Flow Conversion • Execute on Decarbonize Growth Margin (as a % of Sales) performance and FY22 vs. FY21 vs. FY22 FY21 FY22 FY21 FY22 FY21 and Grow St
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 (%) 2020-2022 Annual Average 2020-2022 Annual Average 15% 15% Median Excl. Dow ~10% Median Excl. Dow ~7% Peer 1 Peer 2 DOW Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 DOW Peer 2 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 performance was most resilient among the peer group ✓ Adj. Op. EBITDA margin was best-in-class delivered by an advantaged and differentiated portfolio P&SP ✓ Op. EBITDA per pound polyolefin
Slide 9: Packaging & Specialty Plastics Benchmarking Snapshot
PACKAGING & SPECIALTY PLASTICS BENCHMARKING SNAPSHOT (1,2,3) CORE STRENGTHS FY22 UPDATE & FY21 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) and Grow Strategy to franchise with leading FY22
Slide 10: Dow's Differentiated P&SP Portfolio
DOW’S DIFFERENTIATED P&SP PORTFOLIO Dow 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% Advantage over Peers 21 25 5-Yr Avg. 20 17 20% ~22%. 15 13 8 15% 5-
Slide 11: Industrial Intermediates & Infrastructure Benchmarking Snapshot
INDUSTRIAL INTERMEDIATES & INFRASTRUCTURE BENCHMARKING SNAPSHOT (1,2,3) CORE STRENGTHS FY22 UPDATE & FY21 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) and Grow Strat
Slide 12: Performance Materials & Coatings Benchmarking Snapshot
PERFORMANCE MATERIALS & COATINGS BENCHMARKING SNAPSHOT (1,2,3) CORE STRENGTHS FY22 UPDATE & FY21 FOCUS AREAS Adj. Op. EBITDA Adj. Op. EBITDA SG&A + R&D • Leading producer of Free Cash Conversion • Execute on Decarbonize and Siloxanes & Silicones and Growth Margin (as a % of Sales) Grow Strategy to d
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 & Definitions
NON-GAAP & DEFINITIONS Non-GAAP Financial Measures This presentation includes information that does not conform to U.S. GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segments, including a
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