Annual Report 2020 Inspired to Deliver At Dow, we are driven by our purpose: to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. That’s why we seek to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world. Together our ambition and purpose propel us forward, inspiring us to seek new and better solutions to transform our world. To be easy, enjoyable and effective in our interactions with our customers. To build a culture in which we value our differences. To embed innovation and sustainability in the way we work. Why? Because we believe that when combined with our science and expertise, the competitive advantage created can be enormous and benefit our customers, our company and our investors, and society as a whole. AMBITION PURPOSE To be the most innovative, To deliver a sustainable customer-centric, future for the world through inclusive and sustainable our materials science materials science expertise and collaboration company in the world with our partners OUR GOAL Value growth and best-in-class performance OUR VALUES Integrity Respect for People Protecting Our Planet 2 2020 Dow Annual Report Financial Highlights In millions, except per share amounts 2020 2019 Net Sales $38,542 $42,951 Pro Forma Net Sales N/A $42,998 Income (Loss) from Continuing Operations, Net of Tax $1,294 ($1,717) Operating EBIT1 $2,715 N/A Pro Forma Operating EBIT1 N/A $4,352 Earnings (Loss) per Common Share from Continuing Operations – Diluted $1.64 ($2.42) Operating EPS1 $1.66 N/A Pro Forma Operating EPS – Diluted1 N/A $3.53 Cash Provided by Operating Activities – Continuing Operations $6,252 $5,713 Free Cash Flow1 $5,000 $3,752 Net Sales, Pro Forma Net Sales2 Operating EBIT, Pro Forma Cash Flow Conversion 1,2 (dollars in millions) Operating EBIT 1,2 (dollars in millions) 2020 $38,542 2020 $2,715 2020 112% 2019 $42,998 2019 $4,352 2019 78% 2018 $49,852 2018 $6,236 2018 41% 2020 Shareholder Remuneration 2020 Sales by Operating Segment 2020 Sales by Geography (dollars in millions) (dollars in millions) (dollars in millions) $7,951 $12,969 Dividends $8,165 Performance Asia Pacific Europe, Middle $2,071 Materials & East, Africa Coatings and India $18,301 $2,196 Packaging $38,542 $38,542 & Specialty Plastics Share Buyback3 $12,021 $13,582 $3,826 $125 Industrial U.S. & Canada Latin America Intermediates & Corporate: $269 Infrastructure 1 Non-GAAP measure. For definitions and reconciliation to the most directly comparable U.S. GAAP measure, see supplemental information in the appendix and located atinvestors.dow.com under Financial Reporting. See the appendix for a full list of financial definitions. 2 Results for 2020 are presented on an as-reported basis. Results for 2019 and 2018 are presented on a pro forma basis. 3 In April 2020, Dow announced proactive actions to electively focus on cash and maintain financial strength during the COVID-19 pandemic, including temporarily suspending share repurchases. In the first quarter of 2020, Dow repurchased $125 million of its common stock. Certain statements in this report are “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” "target," “will,” “will be,” “will continue,” “will likely result,” “would” and similar expressions, and variations or negatives of these words or phrases. Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow’s control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. Dow Inc. and TDCC assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws. References to “Dow” or the “Company” mean Dow Inc. and its consolidated subsidiaries, unless otherwise expressly noted. 2020 Dow Annual Report 3 Dear Fellow Dow Shareholders, In 2020, Team Dow overcame significant macroeconomic and Our disciplined approach to cost management, including external challenges. In the face of the COVID-19 pandemic reducing our operating expenses by $500 million, supported and natural disasters, we remained focused on delivering operating EBIT of $2.7 billion and operating EBIT margin of for our stakeholders. We kept our businesses running safely 7%. Cash flow from operations improved 9% year-over-year to and shipping essential products, while stepping up to help $6.3 billion, and cash flow conversion was 112%, a more than our communities fight the pandemic. We found new ways to 30% improvement over the prior year. innovate with and serve our customers in a virtual world. And Our consistent focus on cash generation was supported by: we did all of this while improving our financial position, creating • CapEx reduced to $1.25 billion, down more than $700 million value for our owners, accelerating our sustainability goals and versus the prior year; taking concrete steps to help address inequality. • more than $600 million in cash liberated through lower Nimble Response to Market Conditions working capital; and • unique-to-Dow cash tailwinds of more than $1.5 billion, In the first half of 2020, as the pandemic drove a global including the sale of select North American rail and marine economic downturn and amidst stay-at-home orders that assets. created sharp demand declines, we remained focused These solid financial results enabled us to support our industry- on controlling what we could control. Early in this period, leading dividend and return $2.2 billion to shareholders. In we mobilized our crisis management teams implementing addition, we strengthened our liquidity and decreased net debt1 measures to keep our people safe and maintain essential by more than $2.6 billion, ending the year with $14.6 billion operations. We quickly adjusted our operating rates, focusing in cash and available committed liquidity. As a result of our on cash and liquidity, reducing expenses and further enhancing actions, we decreased our interest expense by more than our liability profile. At the same time, we capitalized on strong $100 million year-over-year and extended our debt maturity demand in packaging, health and hygiene, home care and profile. Furthermore, Sadara’s agreement in principle with pharma end markets as consumer purchasing behaviors its lenders to reprofile its debt is expected to eliminate our adjusted in response to the pandemic. To maintain our financial cash support to the joint venture for its annual debt service strength, we temporarily suspended our share buyback obligations. Altogether, our actions were critical to navigating program and executed a restructuring program to deliver the challenging environment and positioning us for the $300 million in annualized EBITDA benefits. economic recovery. A challenging first half of the year was followed by a positive, Looking ahead, we expect to see increasing margins as yet uneven, recovery. As economies reopened and consumer differentiated parts of our portfolio see improving demand and durable end markets improved, we ramped up production our structural cost actions take hold. to capture this demand. We also continued to benefit from resilient demand for packaging applications. By year-end, #DowStrong in 2020 we delivered overall volumes above pre-COVID levels, with packaging volumes exceeding the prior year. Early in the pandemic, Team Dow implemented health, safety and security protocols that became the blueprint for other manufacturers. We committed more than $4 million to Reinforced Financial & Competitive COVID-19 relief efforts to build community resilience in the face Position of the pandemic and floods that impacted our hometown in Michigan. We also leveraged our materials science capabilities For 2020, net income was $1.3 billion and GAAP earnings per and modified our manufacturing processes to meet increased share were $1.64. demand for raw materials used to produce disinfectants, personal protective equipment and pharmaceutical ingredients. We quickly adjusted our operating rates, focusing on cash and liquidity,“ “ reducing expenses and further enhancing our liability profile. Returned $2.2B to >2% year-over-year >$1.5B of strategic, shareholders with demand growth in non-operational cash industry-leading dividend packaging applications levers delivered in 2020 and share repurchases 4 2020 Dow Annual Report 1 Net debt is a non-GAAP measure. For definitions and reconciliation to the most directly comparable U.S. GAAP measure, see supplemental information in the appendix. Uniquely Positioned to Drive Early in the pandemic, Team Dow Outperformance implemented health, safety and Looking to 2021 and beyond, I remain confident about our security protocols that became the path forward. While the macroeconomic environment remains uncertain, our priorities remain unchanged. We will: blueprint