Dow (DOW) Investor presentation summary

Benchmarking overview and peer comparison

• Benchmarked against major chemical and materials peers at both segment and corporate levels, with adjustments for recent divestitures and JV treatments.

• FY25 adjusted operating EBITDA growth and margin trailed peer median, mainly due to margin compression in Industrial Intermediates & Infrastructure and Performance Materials & Coatings.

• SG&A plus R&D as a percentage of sales remains best in peer group, reflecting strong cost discipline.

• Cash flow conversion lagged peers due to working capital use for new asset startups and lower margins.

• Over $6.5B in near-term margin and cash support measures implemented, with more than half delivered in 2025.

Segment performance and focus areas

• Packaging & Specialty Plastics (P&SP) outperformed peers in most metrics, driven by a differentiated portfolio, first-quartile cost position, and feedstock flexibility.

• Industrial Intermediates & Infrastructure (II&I) faced EBITDA and margin pressure from weak end markets and startup costs, but is optimizing its footprint and shifting to higher-value products.

• Performance Materials & Coatings (PM&C) showed strong downstream silicones growth but margin pressure in upstream siloxanes; asset shutdowns planned to improve margins.

• All segments maintain top-quartile SG&A plus R&D cost discipline.

Financial metrics and capital allocation

• Operating return on invested capital (3-year average) at peer median; adjusted operating EBITDA margin below peer median.

• Shareholder yield and operating return on capital for 2023-2025 annual average at or above peer median.

• Continued focus on delivering cost savings, operational excellence, and portfolio optimization for growth.