Dow Chemical Company Investor Presentation — October 2020

Document content

October 22, 2020AGENDA

Further Enhancing Our Financial StrengthQuarterly Highlights

Continued Market Recovery

Competitively Positioned for Growth

2Net Sales of $9.7B – above guidance; sequential increase of 16%

Demand growth YoY in Packaging & Specialty Plastics was more than

offset by continued pandemic -driven weakness, primarily in durable good

Volume grew 9% vs. PQ with gains in all operating segments and regions

Quarter-over -quarter Operating EBIT margin improved 710 bps

Generated $1.8B of cash flow from operating activities –continuing

operations, approximately flat compared to the year -ago period; received

$315MM payment for rail divestiture

FCF of $1.5B up $156MM YoY; improved every quarter since spin on a YoY basis

Returned $518MM to shareholders with industry -leading dividend

Signed agreement to divest certain U.S. Gulf Coast marine and

terminal operations assets –expected cash proceeds of $620MM before

committed liquidity Net debt reduced

year -to-date3Q 2020 H IGHLIGHTS

33Q20 O PERATING SEGMENT PERFORMANCE

3Q19 2Q20 3Q20YoY: Sales ↓ 10%; Volume ↑ 1%

•Integrated plastics demand growth partly

offset by lower licensing activity

QoQ: Sales ↑ 14%; Volume ↑ 1%

•Strong polyethylene price gains in all regions and double -digit gains in the U.S. &

Canada and Latin America798

3Q19 2Q20 3Q20REVENUE ($MM)YoY: Op. EBIT ↓ 19%

•Targeted expense reductions & volume

gains were more than offset by integrated

QoQ: Op. EBIT margins ↑ 630bps