Dow Chemical 2014 Annual Report Download - page 19
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DELIVERING MORE
WITH LESS
A critical part of our drive to return
value to shareholders is our ongoing
focus on productivity. By taking
actions to reduce our structural costs
and streamline our operations, we
per year since 2012, compared to the
In line with our focus to do more with
less, our latest productivity efforts
the next three years, within which we
expect to realize approximately
Our ability to drive an array of self-
help actions has helped us deliver
on our priorities, even in a volatile
economic environment.
Committed to Shareholders
Rewarding our shareholders is
an area of consistent focus for
Dow. Since 2009, our dividend has
increased an average of 19 percent
per year on a compound basis. With
the announcement of a 14 percent
increase in the dividend in late 2014,
our annualized dividend is back to
our historical high of $1.68 per share.
This increase — the second increase
in 2014 — reinforces our commitment
to maintain a leading dividend yield
for our industry.
Clear Financial Priorities
Moving forward, our focus remains on execution — controlling what we can
control, driving productivity measures and positioning Dow for growth.
We are committed to:
• Enhancing return on capital.
• Continuing to drive EPS growth,
targeting an average of 10 percent
over the long term.
• Maintaining financial flexibility to
advance our corporate strategy, fund
organic growth and further reward
our shareholders through continued
share buyback, a competitive
dividend and solid investment.
Our divestiture program coupled
with our solid balance sheet and
strong cash generation has enabled
us to announce the next tranche of
share repurchases. In late 2014, we
authorized an additional $5 billion
in share repurchases — of which
$2 billion is expected to be completed
in 2015 and the remainder by year-end
2017 in line with our portfolio actions.
This is in addition to a $4.5 billion
program we completed in 2014,
bringing our total share repurchase
authorization to $9.5 billion.
2014 Annual Report 17
Next Productivity Tranche
Manufacturing and Engineering
Supply Chain
Business Services
($1 billion by 2017)
Enterprise-Level Activities
50%
25%
20%
5%
2015-2018
5.0
8
7
10
9
2
1
4
6
5
3
0
0.30
4Q 2013
2.40
2Q 2014
3.40
3Q 2014
$9.5B Cumulative Target for Share Repurchases
Cumulative Share Repurchase (dollars in billions)
Complete by 4Q 2014
New Program
4Q 2014
4.5
1.55
1Q 2014