Dow Chemical 2013 Annual Report Download - page 10

8 The Dow Chemical Company
Prioritizing Market and Integrated
Value Chain Opportunities
Dowhasbeenonaconsistentjourney–purposely
reshapingourCompanyandcreatinglong-term
shareholdervaluebybothinvestinginintegration
asthebuildingblocksforourvalue-addedmarket-
facingbusinesseswhile,atthesametime,divesting
non-strategicassets.Ourresultsin2013underscore
thisfocus.Forexample:
• OurPerformancePlasticssegment,whichachieved
$14.6billioninsalesandEBITDAmargin1expansion
ofnearly700basispoints,continuestodeliverstrong
salesincreasesinitsmarket-facingbusinesses–such
asexiblefoodandspecialtypackaging–wherewe
areleveragingcostadvantagesfromourintegrated
valuechainalongwithstrategicgrowthinvestments.
Maxizg Rns Thrgh
In 2013, we accelerated the execution of our market-driven strategy, narrowing and deepening our focus on
select, high-growth market sectors where Dow is uniquely positioned to create value for our customers and
society. At the same time, we made meaningful progress on our aggressive portfolio management objectives.
Together, these actions demonstrated our focus on creating a high-growth, high-margin company with less
volatile earnings that is well positioned for sustainable, long-term growth.
O Mk-Dri Stregy
q We continue to invest in upstream integration to drive sustainable competitive advantage, while harnessing this benefit
for growth in attractive downstream markets and regions where Dow’s differentiated technology is clearly valued.
Performance
Materials
Agricultural
Sciences
Performance
Plastics
In  Gr
Electronic and
Functional
Materials
Competitive Cost
Position
Attractive Market
Alignment
Science Drives
Differentiation
(part of the Feedstocks and
Energy reporting segment)
Chemicals
Repi d Ex
Coatings and
Infrastructure
Solutions
• InElectronicandFunctionalMaterials,ourrobust
innovationpipeline,togetherwithclosecustomer
collaboration,areenablingnext-generationproducts
suchaslighter,brighter,moreecientelectronics,
healthierfoodsandmoreeectivepharmaceuticals.
• OurAgriculturalSciencessegmentcontinuesto
harnessDow’suniqueexpertiseattheintersection
ofbiologyandchemistry,deliveringstrongtop-line
growthin2013throughtheramp-upofnewproduct
salesandsolidindustrydemand–outperformingthe
industryandachievingsalesrecords.
Dow Elastomers
Dow Electrical and
Telecommunications
Other
Dow Packaging and
Specialty Plastics
1%
82%
7%
10%
Total Sales
$14,645
(dollars in millions)
Total Sales
$4,591
Dow El s46%
Fu s54%
(
Total Sales
$7,137
Crop Protection 77%
Seeds, Traits and Oils 23%
(dollars in millions)
Strategy from Chemicals to Growth Businesses
1 Adjusted EBITDA margin is defined as EBITDA excluding the impact of Certain Items as a percentage of reported sales.