The Dow Chemical Company - 2006 Corporate Report

This is Dow.

At Dow, chemistry is our business…just as it has been since Herbert H. Dow formed the Company in 1897 with the goal to “do it better.”

Today, 110 years later, that philosophy remains the same, with our 43,000 employees working hard to shape a better quality of life for people across the globe. Through them, Dow is harnessing the power of science and technology to provide our customers—and, ultimately, society at large—with a broad range of innovative chemicals, plastics and agricultural products that advance human progress. And in doing so, we maintain our founder’s commitment to being a good neighbor…not just locally, but globally, as we strive to seek the right balance between economic, environmental and social priorities.

Dow’s six operating segments (Performance Plastics, Performance Chemicals, Agricultural Sciences, Basic Plastics, Basic Chemicals, and Hydrocarbons and Energy) help bring thousands of consumer goods and industrial supplies to market—from toys, tools and textiles to pharmaceuticals, personal care products and water purification technologies. We are one of the world’s largest chemical companies, we have customers in more than 175 countries and manufacturing sites in 37 countries, and our sales in 2006 topped $49 billion.

From 1897 to 2007, our success has been driven by the one element you won’t find in the Periodic Table: the human element—the men and women of Dow. They are the best and the brightest—and come from virtually every part of the globe. Their combined talents create a one-of-a-kind company with a unique combination of strengths: global reach, local presence, an integrated product portfolio, technological expertise and a sharp focus on financial discipline.

The result: a strong and growing company that is committed to helping employees achieve; customers succeed; stockholders prosper; communities thrive and people everywhere benefit from healthier, more productive, more enjoyable lives.

Dow’s Performance Portfolio
Dow’s $25 billion Performance portfolio serves customers in markets around the world with an extensive range of differentiated plastic, chemical and agricultural solutions. We deliver innovations that improve lifestyles in many ways—making cars safer, buildings more energy efficient, foods healthier, water cleaner, computers faster, electronics more durable...and more. The key to our success lies in aligning our technologies and capabilities with our customers’ specific needs—and backing that with outstanding customer support. By accelerating innovation and growth, while increasing market and customer focus, the Performance portfolio is creating businesses and brands that deliver higher margins and consistent profitability for the Company.

Performance Plastics
Dow Automotive
Dow Building Solutions
Dow Epoxy
Polyurethanes and Polyurethane Systems
Specialty Plastics and Elastomers
Technology Licensing and Catalyst

Performance Chemicals
Designed Polymers
Dow Latex and Acrylic Monomers
Specialty Chemicals

Agricultural Sciences
Dow AgroSciences

Dow’s Basics Portfolios
This powerhouse $24 billion portfolio of leading basic plastics and chemicals serves more than 6,000 customers worldwide and is an integrated source of raw materials for Dow’s Performance portfolio. It meets the changing needs of a myriad of industries—from packaging, personal care, toys, pipes and tools to adhesives, de-icers, pharmaceuticals, paper and construction. The Basics portfolio is growing primarily through joint ventures that enable Dow to reduce capital intensity, expand globally and obtain access to advantaged feedstocks and energy.

Basic Plastics
Polyethylene
Polypropylene
Polystyrene

Basic Chemicals
Core Chemicals
Ethylene Oxide / Ethylene Glycol

Hydrocarbons and Energy

A more detailed description of Dow, its businesses and its products is included in the “2006 10-K and Stockholder Summary" and can be found at www.dow.com.



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