Dow (DOW) launches Transform to Outperform to raise the competitive industry benchmark for productivity and growth to enable improved returns; targeting at least USD 2bln near-term Op. EBITDA improvement; to cut around 4,500 jobs

• Actions aim to radically simplify the Company's operating model, streamline its processes, reset its cost structure and modernise how it serves customers.
• Benefits will be accretive to 2025 earnings levels and Dow's previously announced USD 1bln cost savings program.
• The Company anticipates ~USD 1.1-1.5bln in one-time costs associated with Transform to Outperform, including ~USD 600-800mln in severance for ~4,500 Dow roles and ~USD 500-700mln in other one-time costs.

Dow's launch of the "Transform to Outperform" initiative signals a significant shift in its operational strategy, aiming for a notable near-term EBITDA improvement and substantial job cuts. While the one-time costs associated with this transformation indicate short-term pain, the long-term focus on increased productivity and reduced costs could position Dow favorably in the competitive landscape, potentially enhancing profitability and shareholder returns by 2025.