the dow story · product business diversifies a commitment to basic research: setting the...

The Dow Story Innovating to Solve World Challenges

Juan Fernando Martínez

Sustainability Director Latin America

Dow confidential. Do not share without permission.

Dow: An Innovation Company

Mission:

To passionately create innovation for our

stakeholders at the intersection of chemistry,

biology and physics

Vision:

To be the most valuable and respected science

company in the world

Corporate Strategy:

Invest in a market-driven portfolio of advantaged

and technology-enabled businesses that create

value for our shareholders and customers

Values:

Integrity ~ Respect for People ~ Protecting Our

Planet


Dow: An Innovation Company

Founded in 1897

119 years of growth

Largest chemical company in the U.S.

$49 billion in annual revenue in 2015

~ 49,500 employees worldwide

Integrated value chains aligned to high-

growth sectors

6,000 products manufactured at 179 sites

in 35 countries across the globe


Addressing World Challenges

Through strong collaboration and innovation that extract value from material, polymer,

chemical and biological science, Dow scientists are delivering the value our customers

want and solutions the world needs.

Packaging Providing

customers a

unique ability to

collaborate with

the launch of Pack

Studios

Agriculture Helping achieve

higher yield potential

through plant

biotechnology and

crop protection

Electronics Enabling next-

generation

semiconductor and

display materials for

a connected world

Transportation Contributing to lighter,

more fuel-efficient

cars

Water Tackling water

challenges in a

sustainable way


Dow’s Unique Growth Drivers

Low-Cost, Integration and Collaborative Innovation Underpinned by Operational and Commercial Excellence

Ethylene

Propylene

High-Throughput

Research

Polymer Science

Material Science

Formulation

Sciences

Process Engineering

NARROWER, DEEPER END MARKET PRESENCE

ADVANTAGED BACK-INTEGRATION

WORLD-CLASS SCIENCE AND ENGINEERING CAPABILITIES

Pla

tfo

rms

High-Performance

Computer Modeling

Packaging

Transportation

Energy/Water

Consumer

Infrastructure

Durables &

Industrial

Solu

tio

ns

Bu

ildin

g B

lock

s

Catalyst Discovery

& Ligand Synthesis

Application

Development

Silicones

https://en.wikipedia.org/wiki/File:Ethylene-CRC-MW-3D-balls.png

https://en.wikipedia.org/wiki/File:Propylene-3D-balls.png


Delivering the Value Our Customers Want and the World Needs

Bringing quality water to where

it’s needed

Global Challenges Market Opportunities Science-Driven Solutions

Water

Energy &

Climate Change

Reverse osmosis modules

Microbial control

Pipeline materials

Building insulation

Structural adhesives for automobiles

Gas-treating products

Weed and insect control

Seeds and trait technology

Healthier oils

Flexible food packaging Food &

Agriculture

Next-generation electronic materials

Enhanced drug formulations

Low VOC paints

Using energy more wisely

and creating new sources

More food, healthier food

and less waste

Higher standard of living for

a growing global population

Consumer &

Lifestyle


119 Years of Science-Driven Innovation

From bleach

to

chemicals:

A one-

product

business

diversifies

A

commitment

to basic

research:

Setting the

foundation for

product

innovation

Post-war

expansion:

Product

offerings

widen to serve

the post-war

consumer and

Dow expands

globally

Household

names, global

reach:

Sales grow from

$1 billion in 1960

to $10 billion in

1980; household

product line

doubles (Saran

Wrap™,

Scrubbing

Bubbles™)

Path to

sustainable

growth:

Strategic shift to a

differentiated

science and

technology

company and

leader in

sustainability

1897-1915

1915-1940

1940-1960

1960-1990

1990-Present

From a one-product company to an innovative global leader in agrosciences, advanced

materials and plastics


Scale, Technology and Expertise to Make a Difference

Agricultural Sciences Consumer Solutions Infrastructure Solutions Performance Materials & Chemicals Performance Plastics

2015 Sales of ~$49B

North America Sales: $18,396MM

Latin America Sales: $6,783MM

Europe, Middle East,

Africa and India Sales: $15,291MM Asia Pacific

Sales: $8,308MM


Dow’s Diverse and Integrated Portfolio

AGRICULTURAL

SCIENCES

CONSUMER

SOLUTIONS

INFRASTRUCTURE

SOLUTIONS

PERFORMANCE

MATERIALS & CHEMICALS

PERFORMANCE

PLASTICS

• Consumer Care

• Dow Automotive Systems

• Dow Electronic Materials

• Dow Building & Construction

• Dow Coating Materials

• Energy & Water Solutions

• Performance Monomers

• Seeds

• Crop Protection

• Chlor-Alkali and Vinyl

• Industrial Solutions

• Polyurethanes

• Dow Elastomers

• Dow Electrical and Telecommunications

• Dow Packaging and Specialty Plastics

• Energy

• Hydrocarbons

2015 Sales: $11,973MM

Op. EBITDA1: $2,070MM

2015 Sales: $18,357MM


2015 Sales: $6,381MM

Op. EBITDA1: $859MM

2015 Sales: $4,379MM


2015 Sales: $7,394MM


• Leading integrated

franchise with strong

market fundamentals

• Sadara and USGC

• Ethylene cycle

• Integrated value chains

• DCP transaction

• PDH and Sadara

• Productivity drive

• Growing positions in key

market segments

• Leading technology

platforms

• PDH and productivity

drive for acrylic chain

• Leading positions in

attractive markets


platform and strong

innovation pipeline

• Attractive market

fundamentals

• Aggressive growth funding

to expand leading

innovation pipeline

1. Operating EBITDA is defined as EBITDA excluding the impact of “Certain Items.”

Dow’s Diverse and Integrated Portfolio

22

AGRICULTURAL

SCIENCES

CONSUMER

SOLUTIONS

INFRASTRUCTURE

SOLUTIONS

PERFORMANCE

MATERIALS & CHEMICALS

PERFORMANCE

PLASTICS

• Consumer Care

• Dow Automotive Systems

• Dow Electronic Materials

• Dow Building & Construction

• Dow Coating Materials

• Energy & Water Solutions

• Performance Monomers

• Seeds

• Crop Protection

• Chlor-Alkali and Vinyl

• Industrial Solutions

• Polyurethanes

• Dow Elastomers

• Dow Electrical and Telecommunications

• Dow Packaging and Specialty Plastics

• Energy

• Hydrocarbons

2015 Sales: $11,973MM

Op. EBITDA: $2,070MM

2015 Sales: $18,357MM


2015 Sales: $6,381MM

Op. EBITDA: $859MM

2015 Sales: $4,379MM


2015 Sales: $7,394MM


• Leading integrated

franchise with strong

market fundamentals

• Sadara and USGC

• Ethylene cycle

• Strong integrated

franchise(s)

• DCP transaction

• PDH and Sadara

• Productivity drive

• Growing positions in key

market segments


platforms

• PDH and productivity

drive for acrylic chain

• Leading positions in

attractive markets


platform and strong

innovation pipeline

• Attractive market

fundamentals

• Aggressive growth funding

to expand leading

innovation pipeline

1. Operating EBITDA is defined as EBITDA excluding the impact of “Certain Items.”


Driven by Innovation

World-Leader in Material Chemistry

• $1.7 B R&D investments

• 30% of sales are new products

• More than 600 US patents granted in 2014

• 4 time Thomson Reuters Top 100

Global Innovator

• 5 R&D 100 Awards in 2014

World-Class R&D

• 6,300 researchers worldwide

• Strong customer engagement at

strategically located R&D centers

• Leading R&D partnerships at top tier

universities and national labs

• Accelerated innovation through high throughput

capabilities


2014 Winning Solutions

Transform® WG insecticide and

Closer® SC insecticide with

Isoclast™ active

TEQUATICTM PLUS Fine

Particle Filter

BETAMATE™ 1630 Structural

Adhesives

NEPTUNETM Subsea Insulation

System

Garnet 2.0/TERAFORCETM Resin

Coated Sand Technology

Transportation Water Food

Energy


Delivering Breakthroughs to World Challenges

23.3 million metric tons of CO2 emission avoidance

40% better purification with 30% less energy

~1.5 billion pounds of trans and saturated fat eliminated

45% reduction in preventable disease from handwashing with soap

Transportation: BETAMATE™

Structural Adhesives

Water: DOW FILMTEC™ ECO

Reverse Osmosis Elements

Food: Omega-9

Healthy Oils

Health: POLYOX™ Water-Soluble

Polymers in Lifebuoy™Soap


Industry Leader in Sustainability

• $13 B in products highly advantaged from

sustainable chemistry

• 40% reduction in energy intensity since

1990 – equivalent to annual energy

consumption of 48 million homes

• $412 M in savings through annual absolute

energy reduction since 2005

• 344 M pounds of by-products reused saving

more than $100 M since 2005

• First chemical company to earn National

Safety Council’s Robert Campbell Award

• 9 U.S. Presidential Green Chemistry Awards –

more than any other company

• 16 times named to Dow Jones Sustainability

World Index

• Ranked #1 for GRI Reporting Guideline

compliance among Fortune 100 companies


Sustainability

14

• Sustainable Chemistry

• Addressing Climate Change

• Contributing to Community Success

• Breakthroughs to World Challenges

CELEBRATING

THE CLOSE OF

OUR 2015 GOALS

• Local Protection of Human Health

and the Environment

• Product Safety Leadership

• Energy Efficiency & Conservation

Dow is embarking on the third stage of our sustainability journey with our ambitious

2025 Sustainability Goals. Dow’s seven 2025 Goals will help lead a global transition to

sustainability:

UNLOCKING THE POTENTIAL OF PEOPLE AND SCIENCE

The passion and creativity of people drives innovation at the intersection of the

sciences – generating value for business, humanity and the environment.

VALUING NATURE

Dow considers nature in strategic business decisions because

it is the right thing to do for people, planet and business.

BUILDING COURAGEOUS COLLABORATIONS

The health of people, planet and business are intrinsically linked.

Collaboration in new and deeper ways across the public and private

sectors is essential for the transition to a sustainable planet and society.

More detail on Dow’s sustainability practices and solutions can be found on dow.com

http://www.dow.com/en-us/science-and-sustainability/sustainability-reporting


Olympic Partnership

Dow’s Olympic partnership highlights how science and

chemistry can improve the Olympic Games and serve as

a proof point to how Dow solutions improve everyday life.

OBJECTIVES

• Enable profitable business growth

• Accelerate establishment of government market program

• Build brand and reputation

• Enhance customer experiences and relationships

• Expand employee pride and engagement

DOW AT RIO

Rio 2016 and Dow Partner

to Implement the Most

Comprehensive Carbon

Program in Olympic

Games History

• Dow will mitigate 500,000

tons of CO2equivalents

(CO2eq) from organizing

and hosting the Games

through 3rd party-verified

emissions reductions.

• Dow and Rio 2016 will also

work to generate an

additional 1.5 million tons

of CO2eq in climate benefits

by 2026, addressing other

Games-related emissions.

Microfoaming

For a Lighter World

Some of the key benefits offered by the

Microfoaming technology, coupled with

Dows’ extensive range of polyethylene

resins include:

• Improved packaging

performance such as superior

sealing integrity and abuse

resistance

• Differentiated optical properties

that deliver characteristics of

premium packaging

• A superior environmental

profile compared to traditional

packaging

• 15-25% more packages with

the same amount of raw

material

• Weight reduction without

thickness reduction

• Thicker films and enhanced

stiffness with lower resin

consumption

DOW RESTRICTED

Time Technolo

gy

Down gauging

Reference film

Microfoamed film

External Layer (solid)

External Layer (solid)

Internal layer (microfoamed)


World-Class Collaboration

CIRCULAR ECONOMY

WATER CLIMATE CHANGE

WELLBEING

SUSTAINABILITY AS BUSINESS DRIVER

SUSTAINABILITY AS

BUSINESS DRIVER

INFRASTRUCTURE ENERGY

FOOD CONSUMERISM

DOW RESTRICTED

Agenda Consumerism: Our Vision

DOW RESTRICTED

To build a collaborative platform where Dow acts as a link within other

companies, entrepreneurs and universities. This ecosystem enables a

creative space to understand and solve future Mexican Sustainable

Consumer Challenges. We are positioning Dow in the most relevant

country needs (Wellness, Mobility, Connectivity and Life Style)

DOW RESTRICTED

To build a collaborative platform where Dow

acts as a link within other companies,

entrepreneurs and universities

Strategy

Develop a trendsetter profile, linking Dow

with key Stakeholders (Government,

Associations, Companies)

Reinforce links with Universities

Involve Entrepreneurs in current

ideas/projects

DOW RESTRICTED

Platform: 1st Consumerism Forum

To Start Linking with Key Stakeholders, Dow invited companies to

discuss trends and future of Mexican Consumer.

Best way to understand consumers is

through their insight.

Special attention to e-commerce (accounts

for 30% of consumption in Mexico) and

specially on mobile phone transactions

Leverage the talent and diversity inside

work groups in the companies

Focus on today's leading consumers:

Millennial and Women

https://www.google.com.br/imgres?imgurl=http://i.ytimg.com/vi/hDhcbphmMQ4/maxresdefault.jpg&imgrefurl=http://www.youtube.com/watch?v=hDhcbphmMQ4&docid=rGqh3ViDczEnBM&tbnid=uV8L7MfTNjFCUM:&w=3000&h=2438&ved=0CAUQxiAwA2oVChMIyMGwif72yAIVxlw-Ch2iIAni&iact=c&ictx=1

DOW RESTRICTED

Platform: GEMI Consumer Event

DOW RESTRICTED

Strategy

Develop expertise on consumer focused

Innovation

Detect and Work on Mexico´s Challenges,

with Sustainability as a main driver.

Connect projects with potential partners to

create business opportunities

A creative space to understand and solve future

Mexican Sustainable Consumer Challenges

DOW RESTRICTED

Challenges: Design Thinking

Using mega trends, business

cases, futuristic analysis,

benchmark of developed

markets, five Sessions were

conducted to identify and

propose solutions for

Mexico´s four needs;

Wellness, LifeStyle,

Connectivity and Mobility.

.

From an User Experience

perspective, a total of 87 main

challenges & ideas were

presented after the sessions,

representing Human Values, or

desirability from more than 100

consumers.

Human Values

(usability, desirability)

Technology

(feasibility)

Business

(Viability)

ConsuMEX

Innovation

Universities

Entrepreneurs

Other Companies


Recognized Around the World

http://www.edisonawards.com/index.php


Join the Conversation #Dow2025

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