RECYCLEREADY TECHNOLOGY

TO

CREATE VALUE FOR RECYCLING STREAM

MILIND CHAVAN

INDIA P&SP SUSTAINABILITY

April 12, 2019

New Dow

Sustainability Priorities

Why Recyclable Packaging

RecycleReady Technology

Improved PCR with Compatibilizers

Collaboration to give end of life to plastics waste

Alliance to End the Plastics Waste

AGENDA

ABOUT DOW

(1) Source: Dow Inc. Amendment #4 to the Form 10 filed on 3/8/2019

• 2018 Pro Forma Op. EBITDA of $9.1B

• 2018 Pro Forma Op. EBIT of $6.2B

• 2018 Pro Forma Net Sales of $49.7B

• 113 manufacturing sites in 31 countries

• Serving customers in ~160 countries

Corporate Stats1

3

PACKAGING & SPECIALTY PLASTICS

4(1) Source: Dow Inc. Amendment #4 to the Form 10 filed on 3/8/2019

Packaging and Specialty Plastics Hydrocarbons & Energy

• Advantaged feedstocks

• Regional presence

covering >110 countries

• 3 versatile and

differentiated polymer

process technologies

• ~5,700 employees

~ $700B ADDRESSABLE MARKET SEGMENT

GROWING AT ~1.5x GLOBAL GDP

FLEXIBLE PACKAGINGWorld’s largest producer of

polyethylene and adhesives for

flexible food and beverage packaging

CONSUMERLeveraging capabilities in elastomers,

fibers and polyolefin technology for

hygiene applications, artificial turf,

sporting goods and cosmetics

RIGID PACKAGINGHigh performing resins bottles, drums,

caps and lids that are lightweight and

durable, with design versatility

INFRASTRUCTUREDurable resin technology for

pressure pipe, power/telecom

transmission, road paving and

construction applications

~75% of Dow’s raw material spend

17crackers

JV crackers5

>1MM BPD

Consume

of feedstocks

~3,000people together

working for profitability

>7GWof power and steam

30Major sites

across

>0.7GWrenewable

$

31%

69%

2018 Pro Forma Sales

by Global Business1

Packaging & Specialty Plastics is a world leader in

plastics and consists of two highly integrated global

businesses: Hydrocarbons & Energy and Packaging

and Specialty Plastics. The segment employs the

industry’s broadest polyolefin product portfolio,

supported by Dow’s proprietary catalyst and

manufacturing process technologies to deliver high

performing and more sustainable plastics to

customers in food and specialty packaging; industrial

and consumer packaging; health and hygiene; caps,

closures and pipe applications; consumer durables;

and infrastructure.

Hydrocarbons

& Energy

Packaging and

Specialty

Plastics

Pro Forma Net Sales: $24.3B

Our Vision: A More Circular Economy

Make sure all plastic packaging

is recovered and

its value is captured instead of ending up

buried in

a landfill somewhere

®™ Trademark of The Dow Chemical Company (Dow) or an affiliated company of Dow

OUR SUSTAINABILITY PRIORITY AREAS

6

1 2 3

DECREASEFOOD WASTE

AND

MATERIAL USE

INCREASERECYCLABILITY

OF FLEXIBLE

PACKAGING

RECOVERTHE VALUE

FROM WASTE

Convert More & more packaging formats to Recyclable

Collaborate to give end of life to non recyclable

75%

25

%

WHY RECYCLABLE PACKAGING

Improved economic value

Reduced environmental impact

Lowering consumption of plastics

Drives circular economy

Value for Waste pickers

Minimizing plastics to landfill

Less load on natural resources

7

Sources: E<https://www.indiatimes.com/news/india/milk-packs-can-be-used-to-make-irrigation-pipes-one-third-of-

garbage-has-high-recycle-value-349933.html>

WHAT MAKES A PACKAGE RECYCLABLE?

8

Must Have A Market For

the Recycled Material

WHAT MAKES A PACKAGE RECYCLABLE?

Key is to have

High economic value

RECYCLEREADY™ TECHNOLOGY FROM DOW

* Source: Pouch & Film Study, Dow Market Intelligence

35%

25%

15%

25%

High Barrier

Multi-material

(eg. Foil/

Metalized, PET/PE)

No Barrier

Mono-material

(All PE)

Low Barrier

Multi-material

(eg, PE/PE)

Barrier

Multi-material

(EVOH/PE/PA)

2

4

1

* Source: Dow Internal assessment

3

RECYCLABLE PACKAGING – ECONOMICS & VALUE CREATION

Economics Value creation

10

Preference to Recyclable: The cost of collection handling of post consumer plastic waste should be manageable from recyclates value

Elements Non-

recyclable

Recyclable

EPR Cost ~Rs.10-15/Kg ~Rs.5-7/kg,

Existing Stream

Value for PCR Zero (Cement

Kiln)

~Rs.65/Kg

Waste pickers

livelihood

~Rs 2-3/Kg ~Rs.12-15/Kg

All numbers are based on our interaction and understanding and are typical and may vary from region to region

Performance

indicator

PET/PE PE/PE Benefits

Product

wastage

reduction

2-3% <1% Cost saving

Seal Width ~8mm 3mm Laminate

saving 2%

Packaging

Yield

Less Improved by

13% due to

density

difference

~4% lower

cost

Productivity 45 pouch/min 45 pouch/min No change

Avoid black, fillers, pigments where possible

Avoid paper with plastics

Avoid contamination with different Polymers

Avoid difficult to recycle materials like PVC

Integrate compatibilisers in order to facilitate post Industrial and post consumer

recycling (RecycleReady)

Lightweight , wherever possible while maintaining or even improving

performance

DESIGN GUIDELINES FOR BETTER RECYCLABILITY

11

Recyclability of PET/PE or Nylon/PE laminates is challenging

Due to low economic value

ALL PE RECYCLABLE PACKAGING

12

DOW CONFIDENTIAL - Do not share without permission

COEX 3 layers

Blown Film

Development of blown PE print film with Dow’s unique

formulation offers unprecedented printability, brings

extraordinary laminate properties like never before…

20µ Film which can be printed on existing rotogravure machine without comprising

printing speed (300mpm – same as PET film)

Dow’s solution gives 3 times lower stretching ability compared to existing PE based

print on rotogravure machine giving better print registrations

Excellent Optical Properties (Clarity and Gloss)

Twice the bending stiffness

High Temperature Resistant

Lower WVTR (3.2gm/sqm/day for 50um)

Packs on VFFS at same rates

Zero wastage from packing to retailer

What has been achieved with Dow’s Solution?

RECYCLABLE BARRIER FILMS POWERED BY RETAINTM

Expects recyclable packaging to address the PWM2016 rules

Brand

OwnerKey Benefits

• Recyclable packaging

• Creating circular Economy

• Enhanced economic value

Recyclable Barrier

Film

Converter

Need to provide the easy recyclable solution for barrier films

Testing & certification as arecyclable pack Certification

Post Consumer

waste

• Recycled to use in the secondary applications

• Recycler gets better value

• Recyclate has higher economic value

REAIN in tie layer to help recycle Film with nylon as a barrier.

Recyclable for better applications

Structural

Approach

HOW RETAIN BASED SOLUTIONS WORK?

14

Industrial Validation

RETAIN based

films Shredded

Re-granulated (RG)

Dried

>40% of

RG used in

Pipes

No deterioration

of surface

roughness in

pipes

Successful

qualification

UNIQUE PORTFOLIO FOR MECHANICAL RECYCLING

15

Impact Modification

Viscosity Control

+Stress Crack

Resistance

Compatibilization

APPLICATIONS | OFFERING FOR PACKAGING RECYCLING

SOLUTIONS FOR POST-INDUSTRIAL AND FOR POST-CONSUMER WASTE

7

Post Industrial Waste (PIR)

PE and EVOH & PA

PP and EVOH & PA

PE and PP

Post Consumer Waste (PCR)

Flexibles

Coming from separate

collection

Coming from mixed collection

Rigids

PET PE and PP

HEFTY ENERGY BAG OMAHA PROGRAM

17

Collaborative effort between:

Improve Education Drive ScienceImprove Waste Management

Develop End Market

Build Collaboration

ASIA PACIFIC FOCUS

18

DEVELOP END USE MARKET – PLASTIC WASTE ROAD

19

• Two documentary videos

• Strong municipality supports

• 8% bitumen replacement

• 4 partners and 2 municipalities

• 40+ volunteers and pickers

Global alliance toend plasticwaste

A new CEO led, cross-sector, not-for-profit organization with a

clear mission to develop, accelerate & deploy solutions,

catalyze public & private investment and engage

communities to help end plastic waste in the environment

I N N O V A T I O N

Innovate new materials, designs, technologies and business models based on science and economics

C L E A N U P

Develop solutions to address and clean up areas of existing plastic waste in the environment

E D U C A T I O N

Engage and collaborate with governments, businesses and consumers to drive effective solutions

I N F R A S T R U C T U R E

Catalyze investment in enhanced waste infrastructure to prevent plastic from reaching the environment

Alliance to End Plastic Waste Four Part Strategy

1. Enhance recyclability • All-PE technology

• Compatibilizer

2. Improve waste management infrastructure• Modernize our Material Recovery Facilities (MRF’s)

• Increase waste collection

3. Educate and engage consumers• Understand the value of plastics

• Source segregation

4. Closing Plastics Loop & Drive end-use markets for

recycled plastics • Mechanical recycling

• Chemical recycling

IN SUMMARY: THERE ARE SOLUTIONS

Plastics is Not Waste

DOW CONFIDENTIAL - Do not

share without permission

2

3

mschavan@dow.com

Mobile: +91 9920091525