Credit Suisse Basic Materials Conference

Credit Suisse Basic MaterialsConferenceThe Dow Chemical CompanyJim FitterlingExecutive Vice President andRecently announced Vice Chair, Business OperationsSeptember 17, 2014The Dow Chemical Company

SEC Disclosure RulesSome of our comments today include statements about our expectations forthe future. Those expectations involve risks and uncertainties. Dow cannotguarantee the accuracy of any forecasts or estimates, and we do not planto update any forward-looking statements if our expectations change. If youwould like more information on the risks involved in forward-lookingstatements, please see our Annual Report and our SEC filings.In addition, some of our comments reference non-GAAP financialmeasures. Where available, presentation of and reconciliation to the mostdirectly comparable GAAP financial measures and other associateddisclosures are provided on the Internet at www.dow.com/investors. Trademark of The Dow Chemical Company or an affiliated company of Dow.“EBITDA” is defined as earnings (i.e., “Net Income”) before interest, income taxes, depreciation and amortization.“Adjusted EBITDA” is defined as EBITDA excluding the impact of “Certain Items.”“Adjusted EBITDA margin” is defined as “Adjusted EBITDA” as a percentage of reported net sales.2

Near-Term Strategic Priorities (2014/2015)1. Invest in key integrated and feedstock driven value chains andsuccessfully start up these projects in 2015 (USGC and Sadara)2. Launch new products in Dow Packaging & Specialty Plastics, DowAgroSciences, Dow Electronic Materials and Dow Coating Materials,and deliver new margins in these businesses in 2014/20153. Drive productivity and reduce costs – manage cash and capital tightly4. Divest or JV chlorine chain and Epoxy business in 2014/20155. Release hidden value businesses and ventures, drive bettertransparency on ROC and value creation in each segment6. Drive returns that exceed the cost of capital, increase financialflexibility with cash generated and reward shareholders3

Priority 1: Successful start-up of Sadara and USGC investmentsSADARATimelineFREEPORT PDHSt. CharlesEthylene RestartTX Ethylene CrackerSadara Ground BreakingFinancialFreeport PDHCloseStart-up20122013/2014Run-Rate EBITDA: 250MMLA EthaneFlexibilitySadaraOlefins/PEStart-up2015 450MM 250MMTX ETHYLENE CRACKERSadaraPhase 2 & 3Start-upTX Ethylene Cracker& Derivatives Start-up20162017 500MM 1.5BCOMPLETEDPlanned Projects on Track within Budget4

Priority 2: Launch new products and deliver new marginsR&D MagazineAward Winning TechnologiesDow Automotive SystemsBETAMATE 1630 structural adhesiveDow Oil, Gas & MiningNEPTUNE subsea insulation systemPolyurethanesDow TERAFORCE utilized in preferredRCS Garnet 2.0 resin coated sandDow AgroSciencesTransform WG Insecticide and Closer SCInsecticide with Isoclast ActiveDow Water and Process Solutions Targeted at corn, soybean and cottonmarkets for the Americas Resistant and hard-to-control weedshave more than doubled from 2009, andaffect an estimated 70 million acres Significant regulatory milestones havebeen achieved with both USDA and EPA Pending regulatory approvals, DowAgroSciences expects to launch Enlist corn and soybeans in 2015TEQUATIC PLUS fine particle filter5

Priority 3: Driving Near-Term Margin Expansion and Growth2013 AdjustedEBITDA yNear-Term EBITDA Margin ExpansionE&FMExamples:300-400 bps400 bps11%Innovations in Oil and Gas, Auto, others; PDH integration to reduce raw material cost; Operating rate leveragePerf. PlasticsExamples:14%Commercialize R&D pipeline (Seeds, Crop Protection); Achieve scale efficiencies in SeedsPerf. Mtrls.Examples:300 bps13%Coatings and Water innovations; PDH integration; Operating rate leverage; Construction market recoveryDASExamples:100-150 bpsGrow Display Technologies; Enter adjacent markets and technologies; Brand-owner relationshipsC&IExamples:23%28%200-400 bpsCustomer relationships drive innovation; USGC investments, market improvement in Europe6

Strategic Decisions in Performance Plastics Maximize ReturnsStrength in HighMargin MarketsIndustry LeadingBrandsStrong st PositionSelect attractive, high-margin growth marketsDow’s investments enable industry-leading low-cost positionsand differentiated technologies that drive higher returns7

Investments in Operations Aligned to AdvantagedCost PositionsOperational StrategyDow U.S.90% Feedslate decisions minimize cost of ethyleneand maximize profitDow Americas80% Feedstock flexibility inclusive of propaneremains a key strategic '14 YTD25%201350%60%55%50%45%40%35%30%2012Industry U.S.2011Increasing Europe LPG Capability2010Dow U.S.75%EthaneMaximum cracking capabilityfor ethylene production byfeedstockIndustry Leading Flexibility USGC and Sadara growth projects furtherstrengthen Dow’s use ofcost-advantaged feedstocksDow Europe LPG crackingcapability for ethyleneproduction201440%201250%2010Dow ethane crackingcapability for ethyleneproductionIncreasing U.S. Ethane CapabilityExpand margins through increased use of low-cost feedstocksSource: Dow, IHS8

Performance Plastics Competitive AdvantagePackagingHygiene &MedicalInfrastructure& ConstructionConsumerDurablesTransportationGrowth Markets Value Technology-driven oBrand Recognition for High Performance from Differentiated Technology:LLDPE, HDPE, LDPE, Elastomers, EVA, Acrylic Binders, Adhesives,Barrier Films, Fibers, Sealants, Tie Layers, Formulated ProductsAdvantaged Business ModelIndustryLeading BrandsStrategicAdvantage9

Priority 4: Divest or JV chlorine chain and Epoxy businessin 2014/2015 Divesting non-strategic assets, representing 4 billion of revenue Assessing all market options Fine tuning scope to maximize integrationbenefits and minimize stranded costs Ensuring long-term value creationTransaction Close Remains on Schedule for Year-End 201510

Priority 5: Release hidden value businesses and ventures, drivebetter transparency on ROC and value creation in each segmentTotal: 4.5B – 6BIn ProceedsCorporate Assetsproceeds expected100% 3B – 4BChlorine CarveOut and OtherNon-StrategicBusinesses 12 corporate teamsreviewing all JVs and allstructural costs75% Reviewing large JVs to50%release new value andincrease transparency Release value in rail25% 0.6B - 1BCorporate Assets 0.9BCompleted in 2013 Nearly 1B incar fleet over nextsix months0%Rail CarsReal EstateTerminals & OtherRemain Committed to 4.5B - 6B Target11

On the Path to 10B EBITDA Near TermNear-Term Controllable Growth Catalysts20142015-16 50- 100MMover 2013St. CharlesEthyleneRestart 350MMin 2014-15CostSavingsRamp-up2017 450MM/yrrun-rateFreeportPDH 250MM/yrrun-rateLouisianaEthaneFlexibility 500MMannuallyNPV 1BU.S. Enlist LaunchSadara 1.5B/yrrun-rateTX Ethyleneand USGCDerivatives 4.5B - 6.0B in transactionsSegment-Specific Margin Expansion ActionsPotential Sources of Additional EBITDA UpsideLower PensionExpenseOperating LeverageTightening GlobalEthylene 100 bps increase in thediscount rate translatesto 250MM lowerpension expense 100 bps increase inannual operating ratetranslates to 200MM 0.01/lb marginimprovement translatesto 200MMProductivity Additional actions todrive earnings growth12

Priority 6: Drive returns that exceed the cost of capital, increasefinancial flexibility with cash generated and reward shareholdersKey Uses of Cash(2011-2013)Operational Focus DeliversHigher Levels of CashKey Uses of CashLast four quarters Strong cash from operations growth Financial flexibility afforded by previousdebt actions enables focus onshareholders and organic growth in 2014 CapEx increase: 1B Share buybacks: 4B*CapExCapExDividends and Repurchases Common Dividends Declared: 1.8BDebt ReductionDividends and RepurchasesDebt Reduction*Part of the announced 4.5B share repurchase programAn Unrelenting Focus on Cash Flow and Shareholder RemunerationDividends and Repurchases include dividends paid to common stockholders and share repurchasesDebt equals Total Debt13

TEQUATIC PLUS fine particle filter Dow Automotive Systems Dow Oil, Gas & Mining Dow Water and Process Solutions Dow AgroSciences Polyurethanes Targeted at corn, soybean and cotton markets for the Americas Resistant and hard-to-control weeds have more than do