dow chemical Goldman Sachs Agricultural Conference Presentation

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dow chemical Goldman Sachs Agricultural Conference Presentation

  1. 1. Dow AgroSciences: Delivering Beyond the Expected Jerome Peribere President and CEO February 10, 2009 ® Goldman Sachs Agriculture Conference ®Trademark of The Dow Chemical Company
  2. 2. Dow AgroSciences Delivering Beyond Expectations in Four Key Areas Consistent Financial Market Access Performance Creativity Franchise Expansion Technology Delivery Goldman Sachs Agriculture Conference ® 2 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company
  3. 3. 2008 Results Deliver Growth Beyond Expectations 2001-2008 2008 2001 -2007 Actual CAGR Performance1 Actual CAGR Volume and Price 20% 6% 8% Sales New Product Success Market Share Growth R&D investment 15% 3% 1% New Product Ramp-up SARD2 Geographic expansion 23% 36% 25% Record EBIT in 2008 Capitalized on strong EBIT3 agricultural market 1Percentage growth from prior year Research & Development, and Selling, General and Administrative expenses 2 Non-GAAP financial measure. Excludes certain items. See www.dow.com for additional information 3 Goldman Sachs Agriculture Conference ® 3 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company
  4. 4. Dow AgroSciences Delivering Beyond Expectations in Four Key Areas Consistent Financial Market Access Performance Creativity Franchise Expansion Technology Delivery Goldman Sachs Agriculture Conference ® 4 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company
  5. 5. Pyroxsulam Extends Cereal Herbicide Franchise Market Share Growth Expected in Key Geographies Key Brands Enable Segmentation • Launched in 5 countries, 45 to go • Maturity sales now expected to be >$200MM Western In 2013 with In 2013 with Canada Europe Today Today Pyroxsulam Pyroxsulam Broadleaf Broadleaf TECH 40% 40% Weeds 33% 33% Weeds Grasses Grasses 9% 2% and cross 17% 1% and cross spectrum spectrum All 18% 15% All 21% 12% Segments Segments Eastern In 2013 with In 2013 with In 2013 with U.S. Australia Today Europe Today Today Pyroxsulam Pyroxsulam Pyroxsulam Broadleaf Broadleaf Broadleaf 24% 24% 6% 22% 6% 22% Weeds Weeds Weeds Grasses Grasses Grasses 0% 21% and cross 0% 2% 26% and cross and cross 10% spectrum spectrum spectrum All 18% 9% All All 2% 14% 5% 22% Segments Segments Segments Goldman Sachs Agriculture Conference ® 5 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company
  6. 6. Successful Positioning and Segmentation of Aminopyralid Builds Franchise Switching to patent-protected products • Have developed over 35 new product concepts/formulations expected on market by 2012 New mixtures with proprietary chemistry • Expanding market with proprietary chemistries to address more weed species Novel Formulations and Delivery Systems Net Sales Growth from 2004-2012E 60% 80% Brazil U.S. Range & Pasture Segment Share Total Range & Pasture Portfolio Goldman Sachs Agriculture Conference ® 6 J. Peribere Feb. 10, 2009 ™Trademark of Dow AgroSciences LLC ®Trademark of The Dow Chemical Company
  7. 7. Dow AgroSciences Delivering Beyond Expectations in Four Key Areas Consistent Financial Market Access Performance Creativity Franchise Expansion Technology Delivery Goldman Sachs Agriculture Conference ® 7 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company
  8. 8. Creative Go to Market Translates Technology Strength to Market 27 new hybrids in Mycogen Seeds line up Proprietary Build market presence via bolt-on M&A Brand 2008: Triumph Seed, Dairyland Seed, Renze Seeds, Brodbeck Seeds Strength (U.S.) Südwestsaat GbR (Germany) Dow AgroSciences, Mertec LLC, M.S. Technologies LLC Collaborate to Bring New Soybean Technologies to U.S. Soybean Growers Strategic Dow AgroSciences Submits SmartStax™ for Regulatory Review Partnerships Syngenta, Dow AgroSciences Jointly to Develop Dow Compounds for use in Syngenta Seed Care HERCULEX® Insect Protection leading insect resistance trait widely licensed Dow Herbicide Tolerance (DHT) technology to become an industry Licensing standard EXZACT™ Precision Technology commercial license allows wide technology reach ®™Trademark of Dow AgroSciences LLC Goldman Sachs Agriculture Conference ® SmartStax™ and the SmartStax logo are 8 J. Peribere Feb. 10, 2009 trademarks of Monsanto Technology LLC ®Trademark of The Dow Chemical Company
  9. 9. SmartStax™ Technology Creates New Standard Dual Effective Dose Drives Value SmartStax to Dominate Introgression Process Moving Dow AgroSciences Corn Portfolio • Robust trait introgression work underway to accelerate launch and ramp-up • World class Dow AgroSciences trait conversion process using continual nurseries, molecular marker processes technologies and parallel introgression to accelerate high quality conversions % of Dow AgroSciences grain corn portfolio containing SmartStax™ Regulatory Regulatory Milestones Being Met submissions Q4 - Brazil Regulatory Regulatory U.S. launch Field trials in submissions Argentina, Brazil >750,000 yield Brazil, Q2 - Argentina launches plots supporting Argentina launch 2008 2009 2010 2011 2012 ™Trademark of Dow AgroSciences LLC Goldman Sachs Agriculture Conference ® SmartStax™ and the SmartStax logo are 9 J. Peribere Feb. 10, 2009 trademarks of Monsanto Technology LLC ®Trademark of The Dow Chemical Company
  10. 10. Dual Effective Dose Improves Yield through Better Plant Protection Better on Western Better on Fall Armyworm Bean Cutworm – – Key Pest in Brazil Emerging Pest SmartStax™ SmartStax™ Multi-year Performance of SmartStax in Western Bean Cutworm Field Trials (2007-08) 2008 Comparison of Bt Technologies for whorl stage protection from Fall Armyworm Better on Corn Rootworm – Opportunity for 5-10% Higher Yield Driving Pest in U.S. Corn Belt 3-5% from lower SmartStax™ refuge 2-5% from consistent insect control 2007-2008 WCRW Multi-Year Summary Node Injury Rating Analyzed Across 12 Locations ™Trademark of Dow AgroSciences LLC Goldman Sachs Agriculture Conference ® SmartStax™ and the SmartStax logo are 10 J. Peribere Feb. 10, 2009 trademarks of Monsanto Technology LLC ®Trademark of The Dow Chemical Company
  11. 11. Dow AgroSciences Delivering Beyond Expectations in Four Key Areas Consistent Financial Market Access Performance Creativity Franchise Expansion Technology Delivery Goldman Sachs Agriculture Conference ® 11 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company
  12. 12. Dow Herbicide Tolerance (DHT) a Solution Sought by Growers Key Customer Benefits of DHT DHT Enables Herbicide Solution to Traits Improve Performance of Glyphosate Additional modes of action in glyphosate-tolerant crops Superior broadleaf weed Label rate of glyphosate 89 control vs. glyphosate alone Increased application window DHT Herbicide 98 and flexibility of 2,4-D, a trusted and economical herbicide Mean % control of 11 Key Broadleaf weeds of corn & soybeans (18 trials, 2008) Launch Plans Moving Forward Lead events Launch in for DHT corn Launch soybeans and soybeans in corn Regulatory identified time frames on track Launch in cotton 2009 2010 2011 2012 2013 2015 Goldman Sachs Agriculture Conference ® 12 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company
  13. 13. EXZACT™ Precision Technology Rapidly Opening Doors Technology Deployment Technology Enhancement Ongoing Accelerate Co-Develop Sponsored Internal Stacking in Traits, New Academic Research Early-Stage Trait Research Program Discovery Opportunities Novel Continuing Gene/Trait Sangamo Discovery Research Accelerate Development Continuous Improvement Expand Range of Traits Push Technical Limits Open Door for Novel Traits Novel Applications ™Trademark of Dow AgroSciences LLC Goldman Sachs Agriculture Conference ® 13 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company
  14. 14. Precise Placement to Deliver Commercially Viable Traits Precise insertion of a herbicide tolerance gene into a native maize gene leads to a potential stacked trait that could reduce phytate output Precise insertion of a herbicide tolerance gene at a second native maize gene identifies a potential “safe harbor” locus Goldman Sachs Agriculture Conference ® 14 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company
  15. 15. Continuing To Deliver Beyond Expectations • Expect consistent performance • Expect franchise growth • Expect creative approaches to build market channel • Expect technology expansion Goldman Sachs Agriculture Conference ® 15 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company
  16. 16. SEC Disclosure Rules Some of our comments today include statements about our expectations for the future. Those expectations involve risks and uncertainties. Dow cannot guarantee the accuracy of any forecasts or estimates, and we do not plan to update any forward-looking statements if our expectations change. If you would like more information on the risks involved in forward-looking statements, please see our annual report and our SEC filings. In addition, some of our comments reference non-GAAP financial measures. Where available, a reconciliation to the most directly comparable GAAP financial measures and other associated disclosures are provided on the internet at www.dow.com in the Financial Reports page of the Investor Relations section. Goldman Sachs Agriculture Conference ® 16 J. Peribere Feb. 10, 2009 ®Trademark of The Dow Chemical Company

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