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Dow Finance

Empower financial excellence through data-driven insights that drive sustainable growth and customer-centric innovation

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Empower financial excellence through data-driven insights that drive sustainable growth and customer-centric innovation

Strengths

  • EFFICIENCY: Industry-leading cost structure and operational excellence
  • PORTFOLIO: Diverse portfolio across high-value growth markets
  • SUSTAINABILITY: Strong ESG performance metrics and circular initiatives
  • FINANCIAL: Robust cash flow generation supporting growth investments
  • INTEGRATION: Vertically integrated operations enhancing supply stability

Weaknesses

  • CYCLICALITY: Vulnerability to economic cycles affecting core markets
  • LEGACY: Aging infrastructure requiring significant capital investment
  • DIGITAL: Underinvestment in advanced financial analytics capabilities
  • FORECASTING: Limited predictive modeling for commodity price volatility
  • DECENTRALIZATION: Siloed financial processes across business segments

Opportunities

  • SUSTAINABILITY: Capitalize on growing demand for sustainable solutions
  • DIGITALIZATION: Leverage advanced analytics for improved forecasting
  • MARKETS: Expand into high-growth regions, particularly Asia-Pacific
  • INTEGRATION: Enhance value chain integration with strategic partners
  • INNOVATION: Develop financial models for breakthrough technologies

Threats

  • COMPETITION: Intensifying global competitive landscape
  • REGULATIONS: Evolving environmental regulations and compliance costs
  • VOLATILITY: Unpredictable raw material and energy cost fluctuations
  • DISRUPTION: New market entrants with innovative business models
  • GEOPOLITICAL: Trade barriers and regional economic instabilities

Key Priorities

  • DIGITALIZATION: Accelerate deployment of advanced financial analytics
  • SUSTAINABILITY: Develop financial framework for ESG-focused initiatives
  • FORECASTING: Enhance predictive models for commodity markets
  • INTEGRATION: Streamline financial processes across business segments

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Empower financial excellence through data-driven insights that drive sustainable growth and customer-centric innovation

DIGITAL REVOLUTION

Transform finance through cutting-edge analytics

  • PLATFORM: Implement integrated financial analytics platform with real-time dashboards for all business units by Q3
  • AUTOMATION: Reduce manual reporting processes by 40% through AI-powered automation, saving 2,500 hours quarterly
  • TRAINING: Complete advanced analytics certification for 85% of finance team members by end of Q2
  • INSIGHTS: Deliver 5 high-impact predictive analyses that influence strategic business decisions worth $50M+
SUSTAINABLE GROWTH

Drive financial framework for ESG leadership

  • METRICS: Develop comprehensive financial measurement system for sustainability initiatives across all segments
  • ROI: Quantify financial returns for top 10 circular economy projects with projected 5-year NPV of $300M+
  • REPORTING: Implement enhanced ESG financial reporting that exceeds TCFD standards by end of Q2
  • CAPITAL: Secure $500M in sustainability-linked financing with favorable terms based on ESG performance metrics
PREDICTIVE POWER

Master market forecasting with precision

  • MODELS: Deploy machine learning models that improve commodity price prediction accuracy by 30% vs traditional models
  • SCENARIOS: Create dynamic financial simulation tool capable of modeling 50+ variables with real-time market inputs
  • VALIDATION: Achieve <5% variance between forecasted and actual performance across key financial metrics
  • INTEGRATION: Connect predictive tools to operational planning systems in all business units by end of Q2
ONE FINANCE

Unite financial processes across the enterprise

  • STANDARDIZATION: Harmonize financial processes across all business segments reducing variations by 75%
  • EFFICIENCY: Decrease finance cost-to-revenue ratio from 1.2% to 0.9% through process optimization
  • COLLABORATION: Implement cross-functional financial planning approaches for all major business initiatives
  • VISIBILITY: Create single-source financial truth platform with 99.5% data accuracy accessible to all key stakeholders
METRICS
  • Adjusted Operating EBITDA Growth: 12% by 2026
  • Finance Digital Transformation Index: 85/100
  • Sustainability-Linked Financial Impact: $250M+
VALUES
  • Integrity
  • Respect for People
  • Protecting Our Planet
  • Customer-Centricity
  • Inclusion and Collaboration

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Align the learnings

Dow Finance Retrospective

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Empower financial excellence through data-driven insights that drive sustainable growth and customer-centric innovation

What Went Well

  • MARGINS: Successfully maintained operating EBITDA margins despite input cost pressures
  • PACKAGING: Performance Materials & Coatings segment exceeded revenue expectations
  • COST: Delivered $250M in cost savings through operational excellence initiatives
  • CASHFLOW: Generated strong free cash flow supporting dividend and share repurchases
  • SUSTAINABILITY: Advanced circular economy initiatives with measurable financial returns

Not So Well

  • VOLUME: Industrial Intermediates segment volumes declined 3% year-over-year
  • EUROPE: Regional economic headwinds impacted EMEA performance expectations
  • VOLATILITY: Unexpected energy cost fluctuations compressed margins in Q4
  • CAPEX: Delays in key capital projects impacting strategic growth initiatives
  • INVENTORY: Higher than optimal inventory levels affecting working capital metrics

Learnings

  • FLEXIBILITY: Need for more agile budgeting processes to respond to market changes
  • MODELING: Current forecasting models underestimated commodity price volatility
  • INTEGRATION: Better alignment needed between finance and operational planning
  • BENCHMARKING: Regular competitive analysis critical for strategic positioning
  • TRANSPARENCY: Enhanced scenario planning improves stakeholder communications

Action Items

  • IMPLEMENT: Develop advanced predictive models for commodity price forecasting
  • OPTIMIZE: Execute working capital improvement plan to reduce inventory by 12%
  • ACCELERATE: Fast-track digital transformation initiatives for finance functions
  • ENHANCE: Strengthen financial analysis capabilities for sustainability projects
  • INTEGRATE: Consolidate financial planning systems across business segments

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Empower financial excellence through data-driven insights that drive sustainable growth and customer-centric innovation

Strengths

  • DATA: Vast amounts of historical financial and operational data
  • INFRASTRUCTURE: Established ERP systems ready for AI integration
  • LEADERSHIP: Executive commitment to digital transformation
  • EXPERTISE: Strong foundation in quantitative financial analysis
  • RESOURCES: Capacity to invest in AI talent and technologies

Weaknesses

  • FRAGMENTATION: Disconnected data sources across business units
  • SKILLS: Limited specialized AI expertise within finance teams
  • LEGACY: Outdated forecasting models not optimized for AI
  • CULTURE: Risk-averse approach to implementing new technologies
  • GOVERNANCE: Underdeveloped data governance and security protocols

Opportunities

  • AUTOMATION: Streamline routine financial processes with AI
  • PREDICTIVE: Enhance forecasting accuracy with machine learning
  • INSIGHTS: Generate deeper business intelligence from existing data
  • EFFICIENCY: Reduce finance operational costs by 25-30% with AI
  • DECISION-MAKING: Support strategic decisions with AI-driven scenarios

Threats

  • COMPETITION: Competitors rapidly adopting AI for financial advantage
  • TALENT: Fierce competition for skilled AI finance professionals
  • COMPLEXITY: Regulatory challenges in implementing AI solutions
  • INVESTMENT: Risk of significant investment with uncertain ROI
  • DISRUPTION: Potential business disruption during implementation

Key Priorities

  • TALENT: Develop specialized AI capabilities within finance teams
  • AUTOMATION: Prioritize high-impact AI use cases for immediate value
  • GOVERNANCE: Establish robust data governance framework for AI
  • INTEGRATION: Create seamless data pipeline across business units

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AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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