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THE DOW OF TOMORROW

THE DOW OF TOMORROW HERE TODAY The Dow Chemical Company 2010 Databook
THE DOW OF TOMORROW HERE TODAY The Dow Chemical Company 2010 Databook
THE DOW OF TOMORROW HERE TODAY The Dow Chemical Company 2010 Databook
THE DOW OF TOMORROW HERE TODAY The Dow Chemical Company 2010 Databook
THE DOW OF TOMORROW HERE TODAY The Dow Chemical Company 2010 Databook
THE DOW OF TOMORROW HERE TODAY The Dow Chemical Company 2010 Databook
THE DOW OF TOMORROW HERE TODAY The Dow Chemical Company 2010 Databook

HERE TODAY

THE DOW OF TOMORROW HERE TODAY The Dow Chemical Company 2010 Databook

The Dow Chemical Company 2010 Databook

VISION

To be the most profitable and respected science-driven chemical company in the world

MISSION

To passionately innovate what is essential to human progress by providing sustainable solutions to our customers

CORPORATE STRATEGY

To preferentially invest in a portfolio of technology-integrated, market-driven performance businesses that create value for our stockholders and growth for our customers

To manage a portfolio of asset-integrated, building-block businesses to generate value for our downstream portfolio

VALUES

Integrity

Respect for People

Protecting Our Planet

STRATEGIC THEMES

Financial Discipline

Sustainability

Performance Culture

Profitable Growth

The forward-looking statements contained in this document involve risks and uncertainties that may affect the Company’s operations, markets, products, services, prices and other factors as discussed more fully elsewhere and in filings with the U.S. Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the Company’s expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries, unless otherwise expressly noted.

References to Advanced Materials or Advanced Materials Division mean the businesses comprised within the Electronic and Specialty Materials, and Coatings and Infrastructure operating segments.

The financial or other data and information related to or used to create statements in this document regarding industry leading or leadership positions, or comparisons of products, portfolios, or industry positions to competitors was obtained from publicly available sources.

® ™ Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow unless otherwise specifically noted.

TABLE OF CONTENTS

2

Selected Pro Forma Historical Segment Information

4

Our Strategy

10

Our Geographic Reach

14

Innovation

20

Sustainability

24

Chemistry Flow

26

Dow at a Glance

86

Joint Ventures

94

Appendix

28 Electronic and Specialty Materials 34 Coatings and Infrastructure THANK YOU FOR YOUR INTEREST IN

28

Electronic

and

Specialty

Materials

34

Coatings and

Infrastructure

THANK YOU FOR YOUR INTEREST IN THE DOW CHEMICAL COMPANY.

This databook – our second edition – continues our pledge to give you ongoing transparency about our strategy and our businesses. In the pages that follow, you will get a clear view of how we are structured to grow and prosper in the years ahead. You will gain a better understanding of the three integrated business models and the distinct role each of them plays in our strategy. And you will see how we are deliberately liberating resources in some areas so we can make smart, strategic investments in our market-driven businesses.

Our strategy is clear. We will preferentially invest in a portfolio of technology-integrated, market-driven performance businesses that create value for our stockholders and growth for our customers. That means that, as we go forward, we will invest in projects and businesses that align with the societal and cultural megatrends of tomorrow. Those megatrends are highlighted in this databook and you can see how – and why – we are responding to them with our unique capabilities and technologies. We will also manage a portfolio of asset- integrated, building block businesses to generate value for our downstream portfolio. Our integration provides a distinct competitive advantage that we intend to preserve.

Dow has a great future ahead of it. With our rich pipeline of products, deep research and development capabilities, and unparalleled geographic and market reach, we have redefined how we are growing. We have a renewed focus on innovation and a rebuilt growth engine in order to provide value to our stockholders by building a stronger, more stable earnings profile. We invite you to join us on that journey.

earnings profile. We invite you to join us on that journey. Andrew Liveris President, Chief Executive

Andrew Liveris

President, Chief Executive Officer and Chairman of the Board

April 26, 2010

42

Health and

Agricultural

Sciences

48

Performance

Systems

58

Performance

Products

68

Basic

Plastics

76

Basic

Chemicals

82

Hydrocarbons

and Energy

2010 Databook

1

Selected Pro Forma Historical Segment Information 1,4

$ in millions (Unaudited)

Q1’07

Q2’07

Q3’07

Q4’07

2007

Q1’08

Q2’08

Q3’08

Q4’08

2008

Q1’09

Q2’09

Q3’09

Q4’09

2009

Sales by Operating Segment

 

Electronic and

$

1,090

$

1,148

$ 1,291

$ 1,348

$

4,877

$ 1,444

$ 1,583

$ 1,473

$ 1,229

$

5,729

$

971

$ 1,164

$

1,256

$ 1,223

$

4,614

Specialty Materials

             

Coatings and

 

1,233

 

1,427

 

1,389

 

1,252

 

5,301

 

1,509

 

1,780

 

1,711

 

1,219

 

6,219

 

1,038

1,242

 

1,330

1,178

 

4,788

Infrastructure

                         

Health and

 

1,045

 

1,097

 

807

 

890

 

3,839

 

1,326

 

1,368

 

995

 

920

 

4,609

 

1,461

1,204

 

796

1,076

 

4,537

Agricultural Sciences

                         

Performance Systems

 

1,696

 

1,853

 

1,830

 

1,930

 

7,309

 

2,062

 

2,356

 

2,180

 

1,630

 

8,228

 

1,281

1,458

 

1,538

1,577

 

5,854

Performance Products

 

3,354

 

3,386

 

3,496

 

3,511

 

13,747

 

3,364

 

3,562

 

3,614

 

2,587

 

13,127

 

2,014

2,085

 

2,420

2,604

 

9,123

Basic Plastics

 

3,232

 

3,494

 

3,619

 

3,822

 

14,167

 

3,807

 

4,114

 

3,849

 

2,470

 

14,240

 

2,029

2,371

 

2,636

2,889

 

9,925

Basic Chemicals

 

948

 

1,109

 

1,133

 

1,244

 

4,434

 

1,200

 

1,254

 

1,115

 

696

 

4,265

 

585

 

586

 

568

 

728

 

2,467

Hydrocarbons

 

1,612

 

1,623

 

1,828

 

2,042

 

7,105

 

2,165

 

2,618

 

2,611

 

1,574

 

8,968

 

988

 

910

 

1,209

1,134

 

4,241

and Energy

                           

Corporate

 

352

 

284

 

366

 

478

 

1,480

 

418

 

278

 

291

 

552

 

1,539

 

443

 

302

 

293

 

57

 

1,095

Total

$14,562

$15,421

$15,759

$16,517

$62,259

$17,295

$18,913

$17,839

$12,877

$66,924

$10,810

$11,322

$12,046

$12,466

$46,644

EBITDA 2 by Operating Segment

 

Electronic and

 

$

352

$

378

$

366

$

366

$ 1,462

$

409

$

492

$

390

 

$

274

 

$ 1,565

 

$

93

$

158

 

$

407

$

402

$

1,060

Specialty Materials

                           

Coatings and

 

168

 

220

 

208

 

112

 

708

 

178

 

218

 

192

 

66

 

654

 

121

 

25

 

213

 

108

 

467

Infrastructure

                             

Health and

 

310

 

228

 

47

 

(1)

 

584

 

356

 

356

 

95

 

85

 

892

 

363

 

140

 

5

 

69

 

577

Agricultural Sciences

                             

Performance Systems

 

243

 

244

 

215

 

18

 

720

 

199

 

210

 

106

 

(241)

 

274

 

103

 

212

 

207

 

153

 

675

Performance Products

 

618

 

475

 

498

 

399

 

1,990

 

454

 

327

 

315

 

(32)

 

1,064

 

147

 

212

 

438

 

302

 

1,099

Basic Plastics

 

752

 

670

 

773

 

609

 

2,804

 

609

 

589

 

650

 

(102)

 

1,746

 

122

 

405

 

590

 

548

 

1,665

Basic Chemicals

 

171

 

204

 

238

 

339

 

952

 

218

 

108

 

128

 

(176)

 

278

 

(5)

(107)

 

195

 

20

 

103

Hydrocarbons

 

 

(1)

 

 

(44)

 

(45)

 

 

 

(1)

 

(69)

 

(70)

 

 

(65)

 

457

 

(1)

 

391

and Energy

                             

Corporate

 

(204)

 

(162)

 

(279)

 

(245)

 

(890)

 

(81)

 

(219)

 

(263)

 

(529)

 

(1,092)

 

(178)

(384)

 

(275)

(255)

(1,092)

Total

 

$2,410

$2,256

$2,066

$1,553

$8,285

$2,342

$2,081

$1,612

 

$(724)

 

$5,311

 

$ 766

$ 596

 

$2,237

$1,346

$ 4,945

Certain Items Increasing (Reducing) EBITDA 3 by Operating Segment

 

Electronic and

 

$4

 

$

5

$

(6)

$

(25)

 

$

(22)

 

$

2

 

$

81

$

(4)

$

(17)

$

62

 

$

(29)

$(143)

 

 

$(172)

Specialty Materials

                         

Coatings and

 

———

   

(19)

 

(19)

 

 

(10)

 

(2)

 

(27)

 

(39)

 

(1)

(253)

 

 

 

(254)

Infrastructure

                     

Health and

 

 

 

(50)

 

(77)

 

(127)

 

 

 

(29)

 

(20)

 

(49)

 

 

15

 

 

 

15

Agricultural Sciences

                             

Performance Systems

 

———

   

(155)

 

(155)

 

 

(2)

 

(5)

 

(280)

 

(287)

 

 

(30)

 

1

 

 

(29)

Performance Products

 

———

   

(59)

 

(59)

 

 

 

(63)

 

(54)

 

(117)

 

 

(95)

 

140

 

(2)

 

43

Basic Plastics

 

———

   

(96)

 

(96)

 

 

 

(13)

 

(181)

 

(194)

 

 

(1)

 

 

(65)

 

(66)

Basic Chemicals

 

———

   

(7)

 

(7)

 

 

 

(21)

 

(117)

 

(138)

 

 

(75)

 

187

 

6

 

118

Hydrocarbons

 

———

   

(44)

 

(44)

 

 

 

(36)

 

(34)

 

(70)

 

 

(65)

 

457

 

 

392

and Energy

                       

Corporate

 

1

 

(13)

 

(83)

 

(95)

 

(190)

 

(12)

 

(70)

 

(50)

 

(652)

 

(784)

 

(150)

(310)

 

(103)

 

(60)

 

(623)

Total

 

$5

 

$(8)

$(139)

$(577)

 

$(719)

 

$(10)

 

$(1)

$(223)

$(1,382)

$(1,616)

 

$(180)

$(957)

 

$682

$(121)

$(576)

1 All periods presented include pro forma data except Q2’09, Q3’09 and Q4‘09. The unaudited pro forma historical segment information for each period in 2007, 2008 and the three months ended March 31, 2009, reflects the combination of Dow and Rohm and Haas Company (“Rohm and Haas” or “ROH”), assuming the acquisition of Rohm and Haas had been consummated on January 1, 2007; the treatment of Dow’s Calcium Chloride business as discontinued operations; and the impact of increased depreciation and amortization expense resulting from the fair valuation of assets acquired from Rohm and Haas.

2 The Dow Chemical Company

$ in millions (Unaudited)

Q1’07

Q2’07

Q3’07

Q4’07

2007

Q1’08

Q2’08

Q3’08

Q4’08

2008

Q1’09

Q2’09

Q3’09

Q4’09

2009

EBITDA by Operating Segment Excluding Certain Items

 

Electronic and

$

348

$

373

$

372

$

391

$ 1,484

$

407

$

411

$

394

$291

$1,503

$122

$

301

$

407

$

402

$1,232

Specialty Materials

                   

Coatings and

 

168

 

220

 

208

 

131

 

727

 

178

 

228

 

194

93

693

122

 

278

 

213

 

108

721

Infrastructure

                     

Health and

 

310

 

228

 

97

 

76

 

711

 

356

 

356

 

124

105

941

363

 

125

 

5

 

69

562

Agricultural Sciences

                     

Performance Systems

 

243

 

244

 

215

 

173

 

875

 

199

 

212

 

111

39

561

103

 

242

 

206

 

153

704

Performance Products

 

618

 

475

 

498

 

458

2,049

 

454

 

327

 

378

22

1,181

147

 

307

 

298

 

304

1,056

Basic Plastics

 

752

 

670

 

773

 

705

2,900

 

609

 

589

 

663

79

1,940

122

 

406

 

590

 

613

1,731

Basic Chemicals

 

171

 

204

 

238

 

346

 

959

 

218

 

108

 

149

(59)

416

(5)

 

(32)

 

8

 

14

(15)

Hydrocarbons

 

 

(1)

 

 

 

(1)

 

 

 

35

(35)

 

————

     

(1)

(1)

and Energy

                 

Corporate

 

(205)

 

(149)

 

(196)

 

(150)

(700)

 

(69)

(149)

(213)

123

(308)

(28)

 

(74)

 

(172)

(195)

(469)

Total

$2,405

$2,264

$2,205

$2,130

$9,004

$2,352

$2,082

$1,835

$658

$6,927

$946

$1,553

$1,555

$1,467

$5,521

Equity in Earnings (Losses) of Nonconsolidated Affiliates by Operating Segment

 

Electronic and

 

$

97

 

$

93

 

$

87

 

$

89

$

366

 

$

83

$181

$114

$ 87

$465

$

5

 

$

58

 

$

94

$133

$290

Specialty Materials

                 

Coatings and

 

 

1

 

1

 

 

2

 

 

 

2

 

2111

     

3

Infrastructure

                 

Health and

 

 

 

134121

       

4

 

1

 

 

2

 

(1)

2

Agricultural Sciences

           

Performance Systems

 

4

 

2

 

2

 

2

 

10

 

2

 

3

 

2

(9)

(2)

(3)

 

6

 

3

 

(2)

4

Performance Products

 

20

 

21

 

14

 

1

 

56

 

11

 

23

 

21

(3)

52

 

1

 

7

 

19

 

4

31

Basic Plastics

 

75

 

60

 

51

 

49

 

235

 

60

 

43

 

62

(50)

115

23

 

35

 

55

 

(1)

112

Basic Chemicals

 

69

 

75

 

111

 

131

 

386

 

99

 

71

 

58

(14)

214

40

 

9

 

45

 

69

163

Hydrocarbons

 

15

 

12

 

35

 

25

 

87

 

22

 

16

 

12

(9)

41

(2)

 

6

 

11

 

18

33

and Energy

                     

Corporate

 

(1)

 

 

 

(1)

 

(2)

 

(1)

 

(1)

 

(6)

(8)

(1)

 

 

(6)

 

(1)

(8)

Total

 

$279

 

$264

 

$302

 

$299

$1,144

 

$277

$338

$272

$(4)

$883

$65

 

$122

$224

$219

$630

Pro Forma Full Year Depreciation and Amortization and Combined Historical Capital Expenditures by Operating Segment

 

Depreciation and Amortization

2007

2008

2009

Capital Expenditures

2007

2008

2009

Electronic and Specialty Materials

$

466

$

518

$

565

Electronic and Specialty Materials

$

384

$

454

$

193

Coatings and Infrastructure

 

414

 

475

 

479

Coatings and Infrastructure

 

221

 

237

 

152

Health and Agricultural Sciences

 

144

 

146

 

146

Health and Agricultural Sciences

 

117

 

192

 

167

Performance Systems

 

335

 

346

 

342

Performance Systems

 

268

 

356

 

140

Performance Products

 

628

 

563

 

573

Performance Products

 

564

 

590

 

242

Basic Plastics

 

626

 

648

 

542

Basic Plastics

 

176

 

186

 

57

Basic Chemicals

 

288

 

302

 

275

Basic Chemicals

 

259

 

258

 

182

Hydrocarbons and Energy

 

———

 

Hydrocarbons and Energy

 

413

 

389

 

296

Corporate

 

205

 

215

 

153

Corporate

 

127

 

134

 

50

Total

$3,106

$3,213

$3,075

Total

$2,529

$2,796

$1,479

2 Dow defines EBITDA as earnings before interest, income taxes, depreciation and amortization. A reconciliation of pro forma EBITDA to pro forma “Income (Loss) from Continuing Operations before Income Taxes” is provided in the Appendix.

3 A description of Certain Items affecting results is provided in the Appendix.

4 The unaudited pro forma historical segment information is not necessarily indicative of the results of operations that would have actually occurred had the acquisition been completed as of the dates indicated, nor is it indicative of the future operating results of the combined company. The unaudited pro forma historical segment information does not reflect future events that may occur after the acquisition of Rohm and Haas, including the potential realization of operating cost savings (synergies) or restructuring activities or other costs related to the planned integration of Rohm and Haas, and does not consider potential impacts of current market conditions on revenues, expense efficiencies or asset dispositions (with the exception of the sale of Dow’s Calcium Chloride business).

2010 Databook

3

Our Strategy

The Dow of Tomorrow – Here Today

Reshaped. Rebuilt. Reinvigorated.

The Dow Chemical Company is a new enterprise today. We have redefined what it means to be a chemical company in the 21st century by creating a reshaped, rebuilt and reinvigorated organization to meet the opportunities of tomorrow.

Ever since our formation 113 years ago, Dow has been one of the world’s true catalysts for change and renewal. Steeped in the grand institutions of science and chemistry, we have continually sought new ways to serve the world around us. Because of our strong desire to push beyond what’s expected, we have given the world new discoveries and breakthroughs. We have developed novel technologies and unique products. We have created inventions and innovations that breach the boundary between the impossible and the possible.

Dow has had an unwavering belief through the years that to create value for all of our stockholders we must preferentially invest in businesses and technologies that allow us to solve some of the world’s greatest challenges. That steadfast principle has literally transformed our Company.

The latest example was the 2009 acquisition of specialty and advanced materials producer Rohm and Haas. By combining the two organizations, we have created a new Company that is even stronger and better suited to face the global economic and market conditions and opportunities ahead. And with a business portfolio shifted decidedly toward higher-value, higher-margin products, we are now positioned to increase value for our stockholders by delivering improved margins, greater earnings predictability and enhanced growth opportunities.

Along with our hallmark financial discipline, Dow today truly is a reshaped, rebuilt and reinvigorated Company. We have our eyes on the future and are committed to providing our customers and society solutions that not only improve lives, but also help us fulfill our vision to be the most profitable and respected science- driven chemical company in the world.

4 The Dow Chemical Company

OUR STRATEGIC GOAL: CREATE VALUE FOR OUR STOCKHOLDERS AND GROWTH FOR OUR CUSTOMERS

We’ll accomplish this goal – today and tomorrow – through our strategy by investing in science-based innovation and by sharpening our customer focus to create brands and technologies that will deliver higher growth and significantly improved earnings in the years ahead.

Preferentially invest in a portfolio of technology-integrated, market-driven performance businesses. The greatest example of this is our acquisition in 2009 of specialty and advanced materials producer Rohm and Haas. Two-thirds of the Company’s portfolio is now comprised of Advanced Materials, Performance Products and Systems, and Health and Agricultural Sciences. But we are also investing in smaller bolt-on acquisitions that add key capabilities and technologies in fast-growing areas such as coatings, water, electronics and agriculture.

Manage a portfolio of asset-integrated building block businesses to generate value for our downstream portfolio. Even as we seek new partners for our Basic franchise, we are committed to preserving the unique integration advantage we have with these assets.

Invest in innovation and leverage our immense research and development (R&D) pipeline to create a unique, science-based and customer-driven R&D powerhouse. Dow’s already strong R&D capabilities have been increased with the addition of the unique, value-adding capabilities of Rohm and Haas. We will invest another $1.6 billion in R&D in 2010, as we did in 2009. 1

Maintain the trademark financial discipline that Dow has become known for with the aim to preserve our financial flexibility by managing costs and operations, reducing debt, and increasing operating earnings to achieve a higher rate of return on capital and equity.

Create a market- and customer-focused culture that brings specialty solutions and materials to the value chain. We have the right people and the right science-based, application-specific technology to provide our customers the innovative solutions and specialty materials they need to be competitive in the marketplace and grow their businesses.

Preferentially Invest in Our Performance and Market-Driven Businesses

+

Manage a Portfolio of Asset-Integrated Building Blocks

+

Leverage Our Immense R&D Capabilities

1 2009 R&D investment was $1.6 billion on a pro forma basis.

E

e

r

g

n

y

Ascending Dow’s Three Business Model Summits MARKET-DRIVEN Consistently higher earnings growth and margins $4.00 to
Ascending Dow’s Three Business Model Summits
MARKET-DRIVEN
Consistently higher earnings
growth and margins
$4.00 to
$4.50 EPS
in ~ 2012
PERFORMANCE
~ 18 –30%
EBITDA Margins 2
1.5 –2x GDP
BASICS
~ 15 –18%
EBITDA Margins 2
1.1–1.3x GDP
Health and Agricultural
Sciences
Electronic and Specialty
Materials
~ 12 – 15%
EBITDA Margins 2
1–1.3x GDP
Performance Systems
Coatings and Infrastructure
Performance Products
Elevated:
Basic Plastics
• Technology differentiation
Basic Chemicals
• Customer centricity
Hydrocarbons and Energy
• Innovation
• Emerging geographies
• Business independence

OUR GOAL: IMPROVE OUR EARNINGS CONSISTENCY AND DELIVER THE EARNINGS GROWTH OF A PERFORMANCE-BASED AND MARKET-DRIVEN COMPANY

As Dow continues to transform its earnings profile to one characterized by higher, more stable earnings and growth, we are readjusting the way we view – and grow – our businesses. We will have a strong bias to fund and grow our performance and market-driven businesses. At the same time, we are strengthening our basics businesses by continuing to seek strategic joint ventures that will allow them to grow.

Underpinning it all is a renewed emphasis on leveraging our immense R&D pipeline to fuel organic growth in the industries with the highest growth opportunities. By focusing on megatrends, we can ensure Dow’s unique science capabilities and technologies are aimed at providing innovative products where they are needed most.

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– Coatings
– Water
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FOCUS ON HIGH-GROWTH MEGATRENDS

u r t s a r f n I FOCUS ON HIGH-GROWTH MEGATRENDS – Alternative Energy

– Alternative Energy

and Feedstocks

– Energy Production

and Efficiency

– Energy Storage

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– Electronics and Communications

– Home and Personal Care

– Furnishings

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– Agriculture

– Functional Foods

– Healthcare

2 Normalized EBITDA margin. EBITDA margin is defined as EBITDA as a percentage of Sales.

2010 Databook

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StrategyOur

Our Strategy

The Dow of Tomorrow – Here Today

Dow’s Business Model – Three Integrated Parts

Technology Differentiation

Technology Differentiation Hydrocarbons and Energy Highly Differentiated Market-Driven Health and Agricultural

Hydrocarbons and Energy

Highly Differentiated

Market-Driven Health and Agricultural Sciences Performance Basics Electronic and Specialty Materials Coatings and
Market-Driven
Health and Agricultural Sciences
Performance
Basics
Electronic and Specialty Materials
Coatings and Infrastructure
Performance Systems
Performance Products
Basic Plastics
Basic Chemicals
Building Blocks

Customer Intimacy

Performance Systems Performance Products Basic Plastics Basic Chemicals Building Blocks Customer Intimacy

Dow is increasingly focused on its higher-margin, higher-growth businesses where technology is the key differentiator. The recent acquisition of Rohm and Haas, for example, shifted Dow’s portfolio so that it is now two-thirds performance-based and market-driven where our science and R&D capabilities will fuel future growth. Today, we operate three integrated business models.

At the top are Health and Agricultural Sciences and Electronic and Specialty Materials. These are highly differentiated, technology-rich, market-driven businesses with high customer intimacy. Coatings and Infrastructure and Performance Systems consist of industry-leading, technology-driven businesses with unmatched R&D capabilities to develop and deliver next generation, functional solutions. Performance Products contains industry-leading products offering superior performance at a competitive cost, as well as building blocks to fuel growth in our downstream market-driven businesses.

Our basics businesses are world-class franchises that depend on affordable and secure feedstocks to deliver basic chemicals and plastics to customers around the globe, as well as a unique integration advantage to our downstream performance portfolio.

6 The Dow Chemical Company

1 Performance portfolio includes Electronic and Specialty Materials, Coatings and Infrastructure, Health and Agricultural Sciences, Performance Systems and Performance Products. Basics portfolio includes Basic Plastics, Basic Chemicals, and Hydrocarbons and Energy. 2 Excludes Hydrocarbons and Energy; Corporate; and certain specialty latex, acrylic acid and esters assets required to be divested as part of the Rohm and Haas acquisition.

Growth Synergy Year-end Run-Rate

All the Elements Are in Place…The Right Strategy, The Right Portfolio, The Right Focus, The Right Innovation Pipeline, The Right Geographic Balance and The Right Cost Structure

As we look ahead, we are confident that we have all of the right elements in place to improve our earnings consistency and deliver higher earnings growth of a performance-based and market-driven company.

THE RIGHT STRATEGY

Our strategy to preferentially invest in a portfolio of technology-integrated, market-driven businesses is the right one to create long-term value for all of our stockholders and growth for our customers. This strategy is already creating businesses and brands that are delivering higher margins and more consistent profitability.

THE RIGHT PORTFOLIO

Our three integrated business models demonstrate the strength of our strategy by showcasing our increasing emphasis on higher- growth, higher-margin and technology-rich businesses, while preserving our unique integration strength that provides us the building blocks to create sustainable growth in our performance- based and market-driven businesses. At Dow, we will have divested over $5 billion of non-strategic businesses during 2009 and 2010, liberating even more resources for our strategic investments. The most recent divestiture transaction is the pending sale of Styron Division 3 announced in the first quarter of 2010. The discipline of portfolio management is alive and well at Dow.

The combined Dow and Rohm and Haas portfolios are creating significant acquisition growth synergies from cross-selling opportunities, new business opportunities and new specialty material solutions for customers. We are targeting an acquisition growth synergy run-rate of $2 billion by the end of 2012.

2.0

1.5

1.0

0.5

0.0

Growth Synergy Target

$2 billion

2012. 2.0 1.5 1.0 0.5 0.0 Growth Synergy Target $2 billion $500 million $340 million 2009

$500 million

1.0 0.5 0.0 Growth Synergy Target $2 billion $500 million $340 million 2009 2010 target 2012

$340 million

Growth Synergy Target $2 billion $500 million $340 million 2009 2010 target 2012 target Performance and

2009

2010 target

2012 target

Performance and market-driven businesses now comprise two-thirds of Dow’s portfolio.

businesses now comprise two-thirds of Dow’s portfolio. 2009 Pro Forma Sales 1 Performance Portfolio Basics

2009 Pro Forma Sales 1

Performance Portfoliotwo-thirds of Dow’s portfolio. 2009 Pro Forma Sales 1 Basics Portfolio Dow’s products sell across a

Basics Portfolioportfolio. 2009 Pro Forma Sales 1 Performance Portfolio Dow’s products sell across a broad range of

Dow’s products sell across a broad range of key industries positioned for growth.

a broad range of key industries positioned for growth. 2009 Pro Forma Sales by Key Industry

2009 Pro Forma Sales by Key Industry 2

Consumer and Institutional Goods22%

22%

Construction17%

17%

Agriculture12%

12%

Electronics and Entertainment10%

10%

Industrial Markets9%

9%

Food8%

8%

Transportation6%

6%

Healthcare and Medical3%

3%

Paper and Publishing3%

3%

Utilities2%

2%

Mining1%

1%

All Other (including Third-Party Distribution)7%

7%

3 The Styron transaction is expected to close in the second quarter of 2010 subject to completion of customary conditions and regulatory approvals. Businesses and products in Styron include: Styrenics – polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene acrylonitrile (SAN) and expandable polystyrene (EPS); Emulsion Polymers (paper and carpet latex); Polycarbonate (PC) and Compounds & Blends; Synthetic Rubber; and Automotive Plastics including PULSE™ engineering resins, MAGNUM™ acrylonitrile butadiene styrene, INSPiRE™ performance polymers, and VELVEX™ reinforced elastomer. Also included will be some styrene monomer assets.

2010 Databook

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The Dow of Tomorrow – Here Today

THE RIGHT FOCUS

Dow is building its business by focusing on four emerging social and economic megatrends that represent not only the greatest societal need but also the greatest business opportunity. Those four megatrends are:

infrastructure and transportation, energy, consumerism, and health and nutrition. We’re aligning our R&D and investments to these trends and delivering practical solutions to solve some of the world’s most intractable problems such as the need for clean water, affordable energy and increased food resources.

THE RIGHT INNOVATION PIPELINE

In 2009, Dow invested $1.6 billion 1 in research and development, and we intend to invest at that same level in 2010. That kind of deep, world-class investment is targeted at those areas where we can provide real solutions to real problems. Our aim is nothing short of ensuring we provide the world practical solutions that build off our already strong scientific legacy. During the last four years, this focus has allowed us to triple the net present value (NPV) of our innovation pipeline to $30 billion.

$30 Billion Pipeline NPV, with >500 Projects H&N Consumerism Energy Our Strategy Our Strategy I
$30 Billion Pipeline NPV,
with >500 Projects
H&N
Consumerism
Energy
Our Strategy
Our Strategy
I & T

1 Pro forma basis.

8 The Dow Chemical Company

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THE RIGHT GEOGRAPHIC BALANCE

With a broad range of technology-based products and solutions to customers in approximately 160 countries, few companies can match Dow’s geographic strength. Today, 68 percent of our revenues come from locations outside the United States; 32 percent of our revenues are in the emerging geographies where growth rates are often two to three times global gross domestic product. We estimate that emerging geographies will comprise 35 percent of Dow’s sales by 2012.

THE RIGHT COST STRUCTURE

Dow’s hallmark financial discipline has served us well through the most recent economic challenges and has positioned us to fuel our future growth. We are focused on reducing debt, increasing operating earnings with lower volatility and achieving a higher return on capital and equity.

We are targeting annual cost savings of up to $2.5 billion by 2011 consisting of Rohm and Haas acquisition cost synergies, Dow’s restructuring plan announced in December 2008 and other restructuring costs primarily related to right-sizing our manufacturing and cost footprint.

to right-sizing our manufacturing and cost footprint. 68% of sales are outside the U.S. 2009 Pro

68% of sales are outside the U.S.

2009 Pro Forma Sales by Geography

North America36%

36%

Europe, Middle East, Africa East, Africa

35%

Asia Pacific18%

18%

Latin America11%

11%

$2.5 Billion Targeted Annual Expense Savings

Cost Synergies and Restructuring

Run-Rate Expense Savings Total: $2.5B Total: $1.85B Total: $1.7B $1.2B $.65B (incremental) $0.6B Total: $1.2B
Run-Rate
Expense Savings
Total: $2.5B
Total: $1.85B
Total: $1.7B
$1.2B
$.65B
(incremental)
$0.6B
Total: $1.2B
~ $2.5B
$0.5B
$1.2B
$1.3B
$1.1B
(2009 Actual)
$0.7B
2009 Year-End
2010 Year-End
2009 Actual
2010 Target

Target

2011 and Beyond Annual Expense Savings

B=billion

Target 2011 and Beyond Annual Expense Savings B=billion Rohm and Haas Acquisition Synergies Other Restructuring

Rohm and Haas Acquisition Synergies

Savings B=billion Rohm and Haas Acquisition Synergies Other Restructuring Programs Combined Expense Savings for

Other Restructuring Programs

B=billion Rohm and Haas Acquisition Synergies Other Restructuring Programs Combined Expense Savings for All Programs

Combined Expense Savings for All Programs

2010 Databook

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Our Geographic Reach

RECENT DEVELOPMENTS TO STRENGTHEN OUR GEOGRAPHIC POSITION

Established Geographic Leadership Council to take an active role in driving business development, fortifying government relationships, enhancing customer interface and participating in people development.

Dedicated Dow Leaders in key geographies to drive expansion: Asia Pacific (including leaders in China and India); Europe, Middle East, Africa (including leaders in Eastern Europe and Kuwait) and Latin America.

NORTH AMERICA: Investments in higher-margin, higher- growth businesses – DOW™ POWERHOUSE™ Solar Shingle Market
NORTH AMERICA:
Investments in higher-margin, higher-
growth businesses
– DOW™ POWERHOUSE™ Solar
Shingle Market Development Facility
– AERIFY™ Diesel Particulate Filter Plant
– Dow Kokam Battery Plant
36% ($16.8 billion)
of 2009 Pro Forma Sales
27% ($1.5 billion)
of Dow’s Share of 2009 JV Sales
LATIN AMERICA:
Above-average growth and major
opportunities from sustainable chemistry
– World-scale industrial park
to make polyethylene from
Brazilian sugarcane
– Growth-driving region for
Dow AgroSciences
– Doubled agrochemicals capacity
in Argentina
– New Leadership in Energy and
Environmental Design (LEED)-
certified corporate office in São
Paulo, as well as commercial center
in Peru to propel growth
11% ($5.2 billion)
of 2009 Pro Forma Sales
8% ($0.5 billion)
of Dow’s Share of 2009 JV Sales
Our Geographic Reach

10 The Dow Chemical Company

New investment in Thailand to fuel growth in Asia Pacific. Dow and the King Abdullah
New investment in Thailand to fuel growth in Asia Pacific. Dow and the King Abdullah

New investment in Thailand to fuel growth in Asia Pacific.

Dow and the King Abdullah University of Science and Technology (KAUST) establish a multi-year, multi-million dollar R&D program in Saudi Arabia.

multi-million dollar R&D program in Saudi Arabia. Shanghai Dow Center recently celebrated its one-year

Shanghai Dow Center recently celebrated its one-year anniversary as Asia Pacific Headquarters.

EUROPE, MIDDLE EAST, AFRICA: Significant growth opportunities in performance businesses and further options for
EUROPE, MIDDLE EAST, AFRICA:
Significant growth opportunities in
performance businesses and further
options for advantaged feedstocks
– Innovation opportunities through
unparalleled concentration of
top customers, leading machine
manufacturers and top academia
– JVs facilitate access to affordable
feedstock and energy: doubled
EQUATE capacity
– Polyurethanes growth fueled
by recently completed world-
scale propylene oxide plant,
the first based on innovative
HPPO 1 technology
35% ($16.4 billion)
of 2009 Pro Forma Sales
27% ($1.5 billion)
of Dow’s Share of 2009 JV Sales
ASIA PACIFIC:
Accelerated growth in performance
businesses to capitalize on megatrends
in rapidly emerging markets
– Thailand JV with new product
capabilities (HPPO and Specialty
Elastomers) to fuel downstream
performance products growth
– R&D centers in key growth markets
in China, India and Korea
– Increased footprint in Vietnam
18% ($8.2 billion)
of 2009 Pro Forma Sales
38% ($2.2 billion)
of Dow’s Share of 2009 JV Sales

1 Hydrogen Peroxide to Propylene Oxide (HPPO) technology jointly developed with BASF.

2010 Databook

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Our Geographic Reach

Strong Presence in Emerging Geographies

STRONG GROWTH IN EMERGING GEOGRAPHIES

– Double-digit growth rates

– Burgeoning consumerism

– Infrastructure development

– Fast population growth

Emerging– Infrastructure development – Fast population growth Geographies Developed Geographies 2008 Pro Forma Sales 28%

Geographies

Developeddevelopment – Fast population growth Emerging Geographies Geographies 2008 Pro Forma Sales 28% 2009 Pro Forma

Geographies

2008 Pro Forma Sales 28%
2008 Pro Forma Sales
28%
2009 Pro Forma Sales 32%
2009 Pro Forma Sales
32%
Projected 2012 35%
Projected 2012
35%

2009 Pro Forma Sales In Emerging Geographies By Operating Segment 1

Basic Chemicals

Basic Chemicals

Basic Plastics

Basic Plastics

Performance Products

Performance Products
Basic Chemicals Basic Plastics Performance Products Electronic and Specialty Materials Coatings and

Electronic and Specialty MaterialsBasic Chemicals Basic Plastics Performance Products Coatings and Infrastructure Health and Agricultural Sciences

Coatings and InfrastructurePerformance Products Electronic and Specialty Materials Health and Agricultural Sciences Performance Systems

Health and Agricultural Sciencesand Specialty Materials Coatings and Infrastructure Performance Systems POSITIONED FOR GROWTH IN KEY INDUSTRIES

Performance SystemsCoatings and Infrastructure Health and Agricultural Sciences POSITIONED FOR GROWTH IN KEY INDUSTRIES Healthcare and

POSITIONED FOR GROWTH IN KEY INDUSTRIES

Healthcare and Medical
Healthcare and Medical
Transportation
Transportation
Food
Food
Utilities
Utilities
Healthcare and Medical Transportation Food Utilities Electronics and Entertainment Industrial Markets

Electronics and

Entertainment

Food Utilities Electronics and Entertainment Industrial Markets Construction Agriculture Consumer and

Industrial Markets

Utilities Electronics and Entertainment Industrial Markets Construction Agriculture Consumer and Institutional Goods

Construction

Agriculture
Agriculture
Consumer and Institutional Goods
Consumer and
Institutional Goods

12 The Dow Chemical Company

1 Excludes Hydrocarbons and Energy, and Corporate.

Shanghai Dow Center Sugarcane in Brazil Dow Izolan in Russia Emerging Geographies Showcase Greater China
Shanghai Dow Center Sugarcane in Brazil Dow Izolan in Russia Emerging Geographies Showcase Greater China
Shanghai Dow Center Sugarcane in Brazil Dow Izolan in Russia Emerging Geographies Showcase Greater China

Shanghai Dow Center

Sugarcane in Brazil

Dow Izolan in Russia

Emerging Geographies Showcase

Greater China China’s chemical industry is expected to become as large as that of the
Greater China
China’s chemical industry is expected to
become as large as that of the U.S. within
the next five years.
KEY FACTS

– 2009 Pro Forma Sales: $3.7 billion

– Dow opened Hong Kong office in 1957 and Mainland China (Guangzhou) office in 1979

~ 3,800 employees

STRATEGIC HIGHLIGHTS

– Aggressive growth in Advanced Materials, and Performance Products and Systems

• Significant Electronic Materials footprint in Mainland China and Taiwan

• Coatings capacity expansion and infrastructure opportunities across the geography

• Exploring and building new growth options in alternative energy (wind and solar)

– Fully integrated Shanghai Dow Center and innovation capabilities to fuel growth in China, the rest of Asia Pacific and the world

• Unique Customer Innovation Center where Dow scientists and customers collaborate in the innovation process from idea conception to commercialization

• Powered by 500 scientists and researchers across 80 integrated labs

– Strengthening in-market supply and manufacturing capabilities

• Network of 20 manufacturing plants close to market within Greater China

• World-scale coal-to-chemicals mega- project continues to progress