Dow : 2024 Investor Day Presentation

Investor Day 2024

Dow 2024 Investor Day Agenda

Advancing Value	Executing
Growth	Strategic Vision

	Clear Financial
Dow's Path2Zero	Priorities to Advance
	Value Growth

Presentation

Jim Fitterling

Chair and CEO

Presentations

Packaging & Specialty Plastics

Karen S. Carter

President, P&SP

Industrial Intermediates & Infrastructure

Jane Palmieri

President, II&I

Pankaj Gupta

Vice President, Industrial Solutions

Performance Materials & Coatings

Brendy Lange

President, PM&C

Joanne Sekella

Vice President, Coatings & Performance Monomers

MobilityScience

Jon Penrice

President, MobilityScience

Panel Discussion	Presentation
Jim Fitterling	Jeff Tate
Chair and CEO	CFO
John Sampson
Senior VP, Operations,
Manufacturing & Engineering
Dan Futter
Chief Commercial Officer

Advancing Value Growth

Jim Fitterling

What You Will See and Hear Today

• Delivering on our commitments while driving industry leadership
• Leveraging our advantaged portfolio for growth in attractive market verticals
• Maintaining our disciplined and balanced capital allocation priorities to maximize value growth
• Driving underlying earnings growth by transforming and optimizing how we meet our customers' needs
• Advancing our ambition profitably with transparency and accountability

Dow is well-positioned to deliver long-term sustainable growth and enhance shareholder value

Driving Sustainable Growth and Enhancing Shareholder Value

• Delivering on Our Commitments

• Leveraging Our Advantaged Portfolio for Growth
• Maintaining Our Disciplined and Balanced Capital Allocation
• Driving Underlying Earnings Growth
• Advancing Our Ambition Profitably

Delivering on Our Commitments Since Spin

Our Commitments:

• Balanced capital allocation to maximize shareholder value
• Financial and operational discipline through the economic cycle
• Best-ownermindset
• Driving sustainability leadership in our industry
• Culture of benchmarking and enhanced transparency

Industry-leading cash flow generation	~$22B	Cumulative FCF1 generation; average FCF
yield is >2x the dividend yield since Spin2
		Average CapEx as a percent of D&A; in
Disciplined and balanced capital allocation	~65% line with our target to keep average CapEx
		at or below D&A over the cycle
Low-risk profitable growth	~12%	Average Operating ROIC1 between
2019-2023; above WACC of 10%
		Operating net income1 returned;
Attractive shareholder remuneration	~90% reduced share count by >45MM shares
Strong credit profile across the cycle	~$9B	Reduction in net debt1 and underfunded
pension liabilities since Spin
Robust organic growth investments	~$0.8B	Mid-cycle EBITDA impact from near-
term growth investments
	>$0.9B	Cash from select infrastructure
Best-owner mindset	divestiture in 2020; >$1B additional
		expected in 2024

1. See appendix for definition of Non-GAAP measures
2. Since Spin: April 1, 2019 through 1Q24

A Proven Playbook Across the Macroeconomic Cycle

Robust Cash Generation Through the Cycle

Operational and Financial Discipline

$7.3

$5.7

$5.6

$6.3

$12.4

$7.1

$9.3

$7.5

Operating

EBITDA2 ($B)

CFFO

($B)

$5.4

$5.2

Maintain strong financial flexibility	Investment-grade credit profile; ~$13B of
committed liquidity including cash
Maximize cash flow	~80% cash flow conversion2 since Spin
Maintain cost discipline	$1B cost savings actions in 2023
Lowered cash commitments	Reduced by ~$1B; including lower share count,
interest, pension and JV cash contributions
Capturing Value Growth
Advance disciplined organic growth	Investments to drive >$3B/year in underlying
earnings growth
Leverage strategically advantaged	Positioning and flexibility are key differentiators
feedstocks

2019

2020

2021

2022

2023

Global

GDP Growth ~2.6% ~(3.0)% ~6.2% ~3.0% ~2.7%

Rate (%)1

Capitalize on presence in attractive	Global scale and diverse product portfolio to
end markets	capitalize on market trends growing >GDP
Innovate with our materials science	>1,000 new innovative products commercialized
expertise	in 2023

1. S&P Global
2. See appendix for definition of Non-GAAP measures

Driving Sustainable Growth and Enhancing Enterprise Value

• Delivering on Our Commitments

• Leveraging Our Advantaged Portfolio for Growth

• Maintaining Our Disciplined and Balanced Capital Allocation
• Driving Underlying Earnings Growth
• Advancing Our Ambition Profitably

Industry Trends Enable >$800B Addressable Market by Mid-Decade

Market Verticals1

Packaging

~30%

Infrastructure

~40%

Consumer

~20%

Mobility

~10%

Packaging	Infrastructure
PE Demand Growing ~1.2-1.4x GDP	Global Infrastructure and Construction Spend to
with Recycled Demand >2x GDP	Increase ~$2T by 2030

Actual	Forecast		~3%	250-300	Circular	Transportation	$0.8
			200-250	Solutions	Residential	$0.7
	~4%	150-175			Low GHG	Energy	$0.3
~120	130-135				Emissions	Commercial	$0.3
					& Offices
					Conventional	Water	$0.2
					Other Non-
						$0.2
						Residential
2023A	2025E	2030E	2040E	2050E		Industrial	$0.1
Volumes in MM of MT

Source: OECD, Nexant, S&P Global, IEA, Industry interviews, Dow internal	Source: S&P Global
analysis; assumes 2.5% global GDP growth 2023-2050

						Consumer						Mobility
		Spending Growing at ~4% CAGR					Global EV Demand Driving
		Supported by Rising Middle Class					Light Vehicle Production Growth
							~$80T
							5.4	90	92			97
		~$60T
		4.6
4.2									48
									15	24
								2023	2025	2030
2023	2025	2030
						Middle-Class Population (B)				Light Vehicle (MM units)		BEV & PHEV (MM units)
						Total Consumer Spending($ T)
							Source: S&P Global - Mobility
Sources: Statista; Dow internal analysis

Leading Positions

Packaging & Specialty Plastics

#1 High-Pressure Technology

Capacity Including LD, EVA,

Ionomers, Acid Copolymer

#3 Total Ethylene and PE

Industrial Solutions

#1 Purified Ethylene Oxide

#1 Ethylene Amines

#1 Ethanol Amines

Polyurethanes

#1 Propylene Oxide

#1 Propylene Glycol

#1 Polyols

Consumer Solutions

#1 Silicones

Coatings & Monomers

#1 Acrylic Binders

#1 Waterborne Additives

1.Average 2021-2023 % of Total Dow Revenue excluding Corporate and Hydrocarbons & Energy

Global Scale in Attractive Market Verticals

Reporting Segments & Business Units

2023 Net Sales by Area1

Key Differentiators

Feedstock and Site Integration

Packaging & Specialty Plastics

Packaging and Specialty		Hydrocarbons & Energy
	Plastics

Industrial Intermediates &

Infrastructure

Polyurethanes &		Industrial Solutions
Construction Chemicals

Performance Materials & Coatings

Consumer Solutions		Coatings & Performance
	Monomers

▪ Diverse product portfolio enables full-system

solutions and unique go-to-market strategy

~$23.1B

▪ Proprietary technologies enable tailored solutions

▪ Breakthrough upstream innovation (i.e., FCDh, EDH,

e-cracking)

▪ World-leadingpurified EO capacity to capture growth

~$12.5B

in pharma, cleaning and energy

▪

PU chemistry reduces emissions in electric vehicles

and improves energy efficiency in building and

construction

▪ Robust innovation pipeline and application expertise

~$8.5B

▪ Differentiated silicones applications for electronics,

mobility and personal care end markets

▪ Broad sustainability toolkit enables next-gencoatings

solutions

U.S. and Canada

LAA

EMEAI

APAC

▪ World-scaleassets with upstream integration

	Net Sales		Employees	Manufacturing Sites	Global Reach
2023	~$45B		~35,900		98		31 countries
							in which Dow manufactures products

1.Excludes Corporate