Dow Chemical 2014 Annual Report Download - page 13

In 2014, we were granted 635 U.S.
patents, a record number for the
Company. Patent-advantaged sales
now represent more than 20 percent
of our revenue. Dow has delivered,
on average, more than 1,000 basis
points of margin premium over
non-patented products over the
past ve years.
DELIVERING SIGNIFICANT
GROWTH, MEETING
GROWERS’ NEEDS
Approximately 84 million acres of
American farmland are infested with
hard-to-control and resistant weeds,
which make it a challenge for farmers
to produce high-yielding crops. Dow
AgroSciences’ breakthrough ENLIST™
Weed Control System is expected
to address this critical agricultural
challenge, while also delivering

includes seeds developed to be used
with our new herbicide, ENLIST DUO™.
ENLIST DUO™ herbicide provides

more effective weed control solution to

on crop yields.
In 2014, we received U.S. EPA
registration enabling our launch of
ENLIST DUO™ herbicide, and we have
initiated a stewarded introduction of
ENLIST™ corn in the United States
and Canada. The ENLIST™ technology
illustrates how our industry-leading
R&D expertise is a key catalyst for
growth. We expect this technology
to lead Dow AgroSciences’ drive to
$1 billion in incremental revenue from
the sale of new products by 2018.
Leading Science and
Technology Expertise
Dow’s ability to innovate in a volatile
economy is essential to our growth
and future success. To drive returns,
we are prioritizing our investment in
high-value markets such as agriculture,
electronics, automotive, energy and
water. We also work closely with
customers to develop dierentiated,
science-based solutions and to
commercialize these technologies
faster than our competitors.
• On the U.S. Gulf Coast, our propane
dehydrogenation (PDH) unit is on
track to come on-line in mid-2015
and will begin providing bottom-
line impact to our Infrastructure
Solutions segment, as well as our
Performance Materials & Chemicals
segment. Our new 1.5 million
metric tons world-scale ethylene
production facility in Freeport
remains on track for completion
in early 2017.
• Our Sadara joint venture, which
will comprise 26 manufacturing
units expected to produce more
than 3 million metric tons of
high-value performance plastics
and chemical products, remains
on track for a polyethylene train
and related units to come on-line
in the second half of 2015, with
remaining units in 2016. Once fully
operational, we expect to realize
average annual equity earnings of
$500 million over the first 10 years
after start-up.
All projects are on track to meet their
start-up dates and capital budgets, and
could add, in aggregate, more than
$3 billion to Dow’s annual EBITDA.
2009 2010 2011 2012 2013 2014
Dow U.S. Patent Grants
Priority Patent Applications
Record Pace of U.S. Patents Granted
205
659
301
925
313
912
411
1010
567
936
635
930
2010 2011 2012 2013 2014
Patent-Advantaged Sales on the Rise
(dollars in billions)
22%
20%
23%
23%
23%
13
12.5
12
11.5
11
10.5
13.5
2014 Annual Report 11