LEARNING CENTER

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Dow has continued to grow and evolve by generating lasting value –
leveraging unique strengths that are core to the entire franchise and enable
best-in-class business and operational value delivery.

FUTURE: FOCUSED. SCIENCE BASED. MARKET DRIVEN.

Discover how Dow is utilizing clear and compelling drivers, to collaborate closely with customers to deliver profitable solutions that address global trends in the markets of tomorrow, while delivering on the strategic priorities of today.

At Dow, we view chemistry as a powerful means of solving challenges while creating tremendous value for customers, shareholders and society. This foundation of science has served as a grounding force and source of momentum throughout the Company’s history.

Dow has ensured its longevity throughout significant industry changes by proactively reinventing itself – building a strategy that balances the needs of owners and delivers against targeted near-term strategic priorities, while – at the same time – prioritizing investments that are enabling sustainable growth. Download the Corporate Annual Report to learn more about the value Dow brings and the financial results that clearly reflect our strategy.

Taken together, Dow’s Mission, Vision, Corporate Strategy and Values help guide the decisions, actions and behaviors that maximize long-term value per share.

WHY INVEST IN DOW STOCK?

Our earnings performance, coupled with our strengthened balance sheet and the growth catalysts we have in place, provide us with confidence in our future cash flow. In the near term, we expect our demand on cash to decrease, while anticipating cash flow increases from multiple key drivers. This increased cash flow is the outcome of our foundational focus on taking targeted actions to enhance financial flexibility.

CORE STRENGTHS

Cost advantaged feedstocks in every region – Our investments in advantaged feedstocks, such as those in the Middle East with our Sadara joint venture enable a powerful regional position with tremendous access to high-growth geographic regions such as the Asian and future African markets for decades to come.

Scale and operational excellence – We are optimizing our operations and work processes through our science platforms, and our global technology centers – and therefore our cost positions while maintaining our ongoing focus to increase Dow’s overall asset utilization, monitoring closely the efficiency of our capital allocation.

Molecular/Physical Integration – Our fully integrated technology Company is steeped in chemistry and we are leveraging that power across the enterprise. Dow is improving its ability to compete in value chains that have a compelling growth proposition over both the near and longer term. We will continue to reap the benefits from our collective actions to enhance our integration advantage, drive further operational discipline and prioritize our technology investments to preferentially invest in attractive end-markets. Today, we are seeing the results of our innovative products and technologies, coupled with our productivity measures and our strategic integration downstream – driving significant margin up-lift.

Global reach – We are building upon competitive advantages in key regions, such as our preferred partnership position in Saudi Arabia, Kuwait, Canada and Argentina while moving forward with the on-time progress of our strategic investments. This coupled with our geographic diversification model – which serves as a natural hedge against regional, macroeconomic volatility – positions Dow well for stronger returns over the long-term.

Science and technology expertise – Dow is innovating side-by-side with customers and bringing forward timely solutions that leverage cross-business synergies...while developing leading-edge process technologies to continue to differentiate our manufacturing excellence model. For example, functionality, convenience and sustainability are major trends driving innovation in packaging. Pack Studios is a global network of packaging experts, equipment and testing capabilities that enhance the collaborative development of better packaging. Take PACXPERT™ for example, an innovative and flexible alternative to rigid packaging.

Strong Brand Value – We know when our customers win, we win. That is why we are taking a solutions-oriented approach to innovation. Using our expertise at the intersection of the sciences to jointly develop customized solutions that address today’s global needs, we are creating sustainable growth for our customers and sustainable growth for Dow.

INTEGRATED PORTFOLIO

Dow is a vertically integrated science and technology company. Customized integration benefits, such as science and technology expertise, global reach, scale and operational excellence, create a compelling source of advantage. These common linkages are applied across the Company’s portfolio, establishing a firm foundation for growth throughout strategic value chains where a market-focused approach drives Dow’s global footprint.

2015 SEGMENT OVERVIEWS

Principal Joint Ventures

EQUATE Petrochemical Company K.S.C.

Established in 1995, EQUATE is an international joint venture between Dow, Petrochemical Industries Company (PIC), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). Commencing production in 1997, EQUATE is the single operator of a fully integrated world-scale manufacturing facility producing more than 5 million tons annually of high-quality petrochemical products that are marketed throughout the Middle East, Asia, Africa and Europe.

Formed: 1995
Ownership: Petrochemical Industries Company K.S.C. 42.5%;
Dow 42.5%;
Boubyan Petrochemical Company K.S.C. 9%;
Al-Qurain Petrochemical Industry Company K.S.C. 6%
Headquarters Location: Salmiya, Kuwait
Production Facility: Shuaiba, Kuwait
Products: Polyethylene, Ethylene, Ethylene Glycol

For more information, visit the EQUATE Petrochemical Co. K.S.C. website.

The Kuwait Olefins Company K.S.C.

Formed in 2004, The Kuwait Olefins Company (TKOC) is an international joint venture among Dow, Petrochemical Industries Company (PIC), Boubyan Petrochemical Company (BPC) and Qurain Petrochemical Industries Company (QPIC). EQUATE is the single operator of Greater EQUATE, which includes The Kuwait Styrene Company (TKSC), Kuwait Paraxylene Production Company (KPPC) and TKOC under one fully integrated operational umbrella at Kuwait’s Shuaiba Industrial Area.

Formed: 2004
Ownership: Petrochemical Industries Company K.S.C. 42.5%
Dow 42.5%
Boubyan Petrochemical Company K.S.C. 9%
Al-Qurain Petrochemical Industries Company K.S.C. 6%
Headquarters Location: Salmiya, Kuwait
Production Facility: Shuaiba, Kuwait
Products: Ethylene, Ethylene Glycol

For more information, visit www.equate.com.

The Kuwait Styrene Company K.S.C.

  • 42.50% Ownership interest
  • A Kuwait-based company, that manufactures styrene monomer

Map Ta Phut Olefins Company Limited

Map Ta Phut Olefins Company Limited (MOC) is a joint venture naphtha cracker between SCG Group and Dow located in Map Ta Phut Industrial Estate, Thailand. Managed by SCG Group, MOC started up in 2010 with an original nameplate capacity of 700,000 metric tons of ethylene and 635,000 metric tons of propylene. After completion of debottlenecking, which is expected to occur in the fourth quarter of 2013, ethylene and propylene capacities will increase to 900 KTA and 800 KTA, respectively. Ethylene and propylene produced from MOC are supplied as raw materials for downstream plants of SCG Group and The SCG-Dow Group joint venture in Thailand.

Formed: 2006
Ownership: Dow 20%
Dow’s overall direct and indirect ownership 32.77%
Thai Polethylene Company Limited 54.73%
Siam Polyethylene Company Limited 16.25%
Siam Synthetic Latex Company Limited 8.75%
Headquarters Location: Bangkok, Thailand
Production Facility: Naptha cracker in Map Ta Phut Industrial Estate
Products: Ethylene, propylene, C4 and aromatics

Sadara Chemical Company

Sadara Chemical Company (Sadara), a joint venture formed in 2011 between Dow and Saudi Arabian Oil Company (Saudi Aramco), continued to advance in 2012. When completed, Sadara’s world-scale operations, supported by strong back-integration to competitive feedstocks, will be a key enabler of Dow’s strategy to drive long-term profitable growth in its downstream, innovation-driven businesses and in fast growing regions.

Capitalizing on rapidly expanding markets in energy, transportation, infrastructure and consumer products, Sadara is expected to deliver high-margin growth for decades to come. It is anticipated that the joint venture will bring:

  • Estimated to deliver EBITDA margins of 35-40 percent and average equity earnings for Dow of approximately $500 million annually during the first 10 years following its start-up
  • Positive cash flow to Dow within five years of start-up

Encompassing 26 manufacturing plants, the integrated complex under construction in Jubail Industrial City II, Kingdom of Saudi Arabia, will possess flexible cracking capabilities and produce more than 3 million metric tons of high-value performance plastics and specialty chemical products. Major product families include amines, glycol ethers, isocyanates, polyether polyols, propylene glycol, polyethylene and polyolefin elastomers. Sadara’s first production units will come on line in the second half of 2015, and all units are expected to be up and running in 2016.

Through a set of agreements signed in 2012, Dow will market and sell the majority of products produced by Sadara. Dow will leverage its global marketing expertise, strong brand recognition and well-established market channels, along with Sadara’s strategic, well-positioned location, to bring high-value products to new and existing customers in fastgrowing regions. More than half of the products Sadara offers will be targeted for expanding Asia Pacific markets, while the majority of the remainder will be sold in other key growth countries in Central and Eastern Europe, Africa and India.

Formed: 2011
Ownership: Dow: 35%, Saudi Aramco: 65%
Dow and Saudi Aramco shares will be equal following introduction of a third investor (PublicCo) formed for purposes of holding shares in Sadara and conducting an initial public offering (IPO) through the Saudi Capital Market Authority
Headquarters Location: Dhahran, Saudi Arabia
Production Facilities: 26 manufacturing units being built in Jubail Industrial City II, Eastern Province, Saudi Arabia
Products: Ethylene, propylene oxide, propylene, benzene, toluene, pygas, polyethylene, polyurethanes (isocyanates, polyether polyols), propylene glycol, butyl glycol etherers, amines, polyolefin elastomers
Product Applications: High-growth end markets such as: transportation (automotive parts, maintenance fluids), construction (pipes, adhesives & sealants), packaging and containers (food and non-food), consumer goods (foam for furniture and bedding; rigid PU foam insulation for appliances), adhesives and sealants, coatings (wide range of coatings for industrial, maintenance and marine applications), oil and gas (pipeline protection & flow assurance, gas treatment), electrical and electronics (wire and cable, insulation)

For more information, visit the Sadara website.

Sadara is owned by Dow Saudi Arabia Holding BV, a wholly-owned subsidiary of The Dow Chemical Company, and Performance Chemicals Holding Company, a wholly-owned subsidiary of Saudi Arabian Oil Company.

The SCG-DOW Group

The SCG-Dow Group is comprised of five main operating joint venture companies in Thailand that manufacture and supply customers across Asia Pacific with products used in a wide range of industrial and consumer goods, including food packaging, foam insulation and furniture.

In 2011, a specialty elastomers plant began operation to support growth in the Performance Plastics segment. In 2012, Dow marked its 45th anniversary in Thailand and the 25th anniversary of the SCG-Dow partnership with the grand opening of its new production complex in Asia Industrial Estate (AIE). Together, the site’s world-scale facilities make Thailand Dow’s largest manufacturing base in Asia Pacific.

Formed: 1988 Siam Styrene Monomer Company Limited
1990 Siam Synthetic Latex Company Limited
1993 Siam Polystyrene Company Limited
1995 Siam Polyethylene Company Limited
Ownership: Dow 49.99%
SCGChemicals Co., Ltd. 49.99%
Others 0.02%
Headquarters Location: Bangkok, Thailand
Production Facility: Rayong Province
Products: Styrene monomer, latex, polystyrene, polyethylene, specialty elastomers

Subsidiaries

Dow also has a number of subsidiaries, including Dow Corning, Dow AgroSciences LLC and Union Carbide Corporation. For a comprehensive list of joint ventures and subsidiaries of The Dow Chemical Company, please see the Company's most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission.

Science and Technology Expertise

Dow is strengthening competitive advantage by accelerating our market-driven strategy, narrowing and deepening focus on select, high-growth market sectors and the strategic integration of our manufacturing operations with new supplies of advantaged feedstocks. Constantly innovating with customers, developing customized, profitable solutions and commercializing technologies faster than our competitors – Dow’s pipeline of industry-leading technologies remains a crucial source of competitive advantage for the Company. Behind every innovation at Dow is a team of world-class researchers able to move transformative ideas into real-world solutions.

Learn more about our areas of expertise

SOLVING GLOBAL CHALLENGES

Dow’s ability to innovate in a volatile economy is essential to our growth and future success. We are applying this innovation at the intersection of chemistry, biology and physics across the portfolio to meet challenges around the globe, while working closely with our customers to develop differentiated solutions – commercializing our technologies faster than our competitors.

GROWTH STRATEGY

Dow's investments in the Middle East and on the U.S. Gulf Coast secure a unique, advantaged cost position.

ST. CHARLES ETHYLENE RESTART

The restart of the St. Charles (Louisiana) ethylene production facility in December 2012 is contributing incremental EBITDA of $250 million on an annual run-rate basis. Read More

LOUISIANA ETHANE FLEXIBILITY

An ethane flexibility project which will contribute another $250 million of EBITDA when fully operational.

SADARA

When fully operational, Sadara will be one of the world's largest integrated chemical complexes and will help drive growth for Dow's innovation-driven businesses across fast-growing regions in the emerging world. Read More

FREEPORT PDH START-UP

Dow's world scale propane dehydrogenation (PDH) unit located at Oyster Creek (Texas Operations) has begun commercial operations. Capacity for the new propylene production facility is 750 KTA, making it the largest on demand propylene facility of its kind, and the largest and most advanced Honeywell UOP Oleflex™ unit ever built. Read More

TEXAS ETHYLENE UNIT GROUNDBREAKING

Dow's world scale ethylene plant located at Oyster Creek (Texas Operations) remains on track for start-up in 2017. Construction began in 2014. Read More

TEXAS ETHYLENE UNIT AND DERIVATIVES START-UP

These assets are focused on fast growing, higher margin markets such as flexible packaging, hygiene, medical, transportation, consumer durables, wire and cable and industrial specialties – expected to contribute approximately $1.5 billion of annual EBITDA at full run-rate.