Dow Inc. · NYSE:DOW

Dow — The Dow Chemical Company — Credit Suisse Basic Materials Conference (September 2014)

14 slides from Dow's conference presentation, Sep 17, 2014

  1. Slide 1: Credit Suisse Basic Materials Conference

    Credit Suisse Basic Materials Conference The Dow Chemical Company Jim Fitterling Executive Vice President and Recently announced Vice Chair, Business Operations September 17, 2014 The Dow Chemical Company

  2. Slide 2: SEC Disclosure Rules

    SEC Disclosure Rules 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 expectatio

  3. Slide 3: Near-Term Strategic Priorities (2014/2015)

    Near-Term Strategic Priorities (2014/2015) 1. Invest in key integrated and feedstock driven value chains and successfully start up these projects in 2015 (USGC and Sadara) 2. Launch new products in Dow Packaging & Specialty Plastics, Dow AgroSciences, Dow Electronic Materials and Dow Coating Materia

  4. Slide 4: Successful start-up of Sadara and USGC investments

    Priority 1: Successful start-up of Sadara and USGC investments FREEPORT PDH SADARA TX ETHYLENE CRACKER LA Ethane TX Ethylene Cracker Sadara Flexibility Sadara Ground Breaking Phase 2 & 3 St. Charles Sadara TX Ethylene Cracker Financial Start-up Ethylene Restart Freeport PDH Olefins/PE & Derivatives

  5. Slide 5: Launch new products and deliver new margins

    Priority 2: Launch new products and deliver new margins R&D Magazine Award Winning Technologies Dow Automotive Systems BETAMATE™ 1630 structural adhesive  Targeted at corn, soybean and cotton Dow Oil, Gas & Mining markets for the Americas NEPTUNE™ subsea insulation system  Resistant and hard-to-co

  6. Slide 6: Driving Near-Term Margin Expansion and Growth

    Priority 3: Driving Near-Term Margin Expansion and Growth 2013 Adjusted Market Innovation Investments Productivity EBITDA Margin Growth Near-Term EBITDA Margin Expansion E&FM 23% 100-150 bps Examples: Grow Display Technologies; Enter adjacent markets and technologies; Brand-owner relationships C&I 1

  7. Slide 7: Strategic Decisions in Performance Plastics Maximize Returns

    Strategic Decisions in Performance Plastics Maximize Returns Strength in High Margin Markets Industry Leading Brands Strong Customer Relationships Premium Technology Advantaged Cost Position Select attractive, high-margin growth markets Dow’s investments enable industry-leading low-cost positions an

  8. Slide 8: Investments in Operations Aligned to Advantaged Cost Positions

    Investments in Operations Aligned to Advantaged Cost Positions Increasing U.S. Ethane Capability Operational Strategy  Feedslate decisions minimize cost of ethylene capability for ethylene Dow U.S. Dow Americas Dow ethane cracking 90% 80% and maximize profit production 70%  Feedstock flexibility i

  9. Slide 9: Performance Plastics Competitive Advantage

    Performance Plastics Competitive Advantage Packaging Hygiene & Infrastructure Consumer Transportation Attractive Medical & Construction Durables Markets Growth Markets Value Technology-driven Solutions Strong Technology Portfolio Brand Recognition for High Performance from Differentiated Technology:

  10. Slide 10: Divest or JV chlorine chain and Epoxy business

    Priority 4: Divest or JV chlorine chain and Epoxy business in 2014/2015  Divesting non-strategic assets, representing $4 billion of revenue  Assessing all market options  Fine tuning scope to maximize integration benefits and minimize stranded costs  Ensuring long-term value creation Transaction

  11. Slide 11: Release hidden value businesses and ventures

    Priority 5: Release hidden value businesses and ventures, drive better transparency on ROC and value creation in each segment Total: $4.5B – $6B In Proceeds Corporate Assets  Nearly $1B in 100% proceeds expected  12 corporate teams ~$3B – $4B 75% reviewing all JVs and all Chlorine Carve- structura

  12. Slide 12: On the Path to $10B+ EBITDA Near Term

    On the Path to $10B+ EBITDA Near Term Near-Term Controllable Growth Catalysts 2014 2015-16 2017 $50-$100MM >$350MM >$450MM/yr >$250MM/yr ~$500MM >$1.5B/yr NPV>$1B over 2013 in 2014-15 run-rate run-rate annually run-rate St. Charles Cost Louisiana TX Ethylene Freeport U.S. Enlist™ Ethylene Savings Et

  13. Slide 13: Drive returns that exceed the cost of capital

    Priority 6: Drive returns that exceed the cost of capital, increase financial flexibility with cash generated and reward shareholders Key Uses of Cash Operational Focus Delivers Key Uses of Cash (2011-2013) Higher Levels of Cash Last four quarters  Strong cash from operations growth  Financial fle

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