Dow Chemical 2010 Annual Report Download - page 13

Focus on Megatrends
We have taken an outside-
in approach – based on
the global demographics
and tectonic shifts that are
shaping the future. These
megatrends serve as the lens
that sharpens our focus and
directs our investments.
Robust Portfolio
As one of the world’s
largest performance products,
performance systems,
agroscience and advanced
materials providers, we
have leadership positions
in high-growth, high-margin
sectors such as electronics,
water, agriculture, coatings
and alternative energy. And
our restructured global Plastics
franchise is now comprised
in large part of technology-
based polymers that are at
the epicenter of growth in
high-performance packaging,
elastomers and wire and
cable applications.
Integration Strength
We deliver unparalleled
integration advantage to
our downstream market-
driven advanced materials,
agrosciences and performance
businesses through world-class
building blocks powered by
technology and manufacturing
economies of scale, coupled
with strategic partnerships
that bolster our feedstock
advantage.
Sustainability Leadership
Our innovation engine is
focused on delivering carbon
mitigation, alternative
energy, water purification,
crop productivity, building
efficiency and many more
solutions that improve lives
while protecting the planet.
Our leadership is validated
by third-party recognition.
Our Sustainability Goals are
integral to our corporate
vision, mission and values
– which continue to drive
change that is good for the
environment, good for people
and good for business.
Technology Leadership
Our innovation agenda is
focused on megatrends and
is backed by a rigorous
process that enables us to
deliver commercial success
and bottom-line results.
Our rich $30 billion pipeline
on a non-risk-adjusted net
present value (NPV) basis
is filled with solutions that
customers want and, in turn,
will enable us to expand
margins and reduce earnings
volatility over time.
Global Reach
Dow’s growing geographic
presence means we are now
in a better position than ever
to capitalize on emerging
market opportunities, with
32 percent of our sales in
2010 coming from these
fast-growing regions. And
this is only the beginning
as we continue to make
progress with key mega
projects that will even further
expand our ability to serve
high-growth regions.
Financial Discipline
We continue to drive
financial discipline and, as a
result, have reduced our cost
structure, lowered debt and
strengthened our balance
sheet. In 2010, we delivered
$2.4 billion in cost savings
related to our restructuring
programs and acquisition-
related synergies. We
exceeded our goal to divest
$5 billion in non-strategic
assets over the last several
years. And we reduced our
net debt to capital ratio
to 42.6 percent. Moving
forward, we will maintain
our vigilant approach to cost
productivity, while prudently
investing in growth.
Customer Focus
We have shifted our portfolio
to a more market-driven,
customer-centric model,
aligning our businesses
and innovations to address
customer needs. We recognize
that our customers will be
our organizing principle for
growth. That is why we are
building relationships with
customers who are on the
forefront of innovation and
technology differentiation –
identifying and anticipating
future needs throughout
the value chain.
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2010 Annual Report