Dow Chemical 2014 Annual Report Download - page 15

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2014 Annual Report 13
Optimizing Our Portfolio
Across our integrated portfolio, we are executing a number of strategic
actions to deliver maximum value from each business. We are enhancing
our cost position and the value of our integration, while at the same time
prioritizing investments in innovation and commercializing multi-tiered
and multi-generation solutions that bring value to our customers and to
Dow. With a careful eye toward value, we are exiting non-strategic and
capital-intensive businesses.
Our actions in 2014 resulted in $2 billion in proceeds expected from
divestitures of non-strategic assets and businesses signed or completed
in 2014. Since 2013, the Company has signed or completed transactions
that are expected to generate $2.9 billion in proceeds.
Our divestiture projects are on track, such as the carve-out of our chlorine
and epoxy assets, which is expected to close by year-end 2015.
At the same time, we also are optimizing our joint venture portfolio.
For example, by mid-2016, we plan to reduce our equity ownership in
our Kuwait joint ventures, allowing us to redeploy capital for more
strategic purposes.
Taken together with our divestiture actions in 2013, we are on track to
meet our divestiture targets and expect to generate $7 billion to
$8.5 billion in proceeds by mid-2016.
Infrastructure Solutions
Performance Materials
& Chemicals Performance Plastics
Ongoing, Proactive Portfolio Management
Pretax Proceeds (dollars in millions)
Expanded Target
Mid-2016 Implementation
Additional
Portfolio Actions
$7B–$8.5B
Chlorine Carve-Out
~$500MM (est.) Additional
Corporate Actions
AgroFresh
ANGUS Chemical Company
Sodium Borohydride
~$450MM Asset Sales
(Railcars, Land, etc.)
~$850MM in 2014
(Polypropylene Licensing
and Catalysts, others)
Completed In Progress
Total Sales $22,386
Dow Elastomers
56%
Dow Electrical and Telecommunications
7%
Dow Packaging and Specialty Plastics
4%
(dollars in millions)
Energy
31%Hydrocarbons
2%
Total Sales $15,114
Chlor-Alkali and Vinyl
41%
Chlorinated Organics
32%
Epoxy
13%
(dollars in millions)
Industrial Solutions
12%
Polyurethanes
2%
Total Sales $8,429
Dow Building & Construction 21%
Dow Coating Materials
28%
Energy & Water Solutions 24%
(dollars in millions)
Performance Monomers 27%