Table of Contents Page About Dow 31 Overview 31 Results of Operations 34 Segment Results 41 Packaging & Specialty Plastics 41 Industrial Intermediates & Infrastructure 43 Performance Materials & Coatings 45 Corporate 46 Outlook 47 Liquidity and Capital Resources 48 Other Matters 57 Critical Accounting Estimates 57 Environmental Matters 61 Asbestos-Related Matters of Union Carbide Corporation 66 ABOUT DOW Dow combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance (ESG) leadership to achieve profitable growth and deliver a sustainable future. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated, science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer applications. Dow operates 104 manufacturing sites in 31 countries and employs approximately 35,700 people. In 2021 , the Company had annual sales of $55 billion , of which 36 percent of the Company’s sales were to customers in the U.S. & Canada; 36 percent were in Europe, Middle East, Africa and India ("EMEAI"); while the remaining 28 percent were to customers in Asia Pacific and Latin America. In 2021 , the Company and its consolidated subsidiaries did not operate in countries subject to U.S. economic sanctions and export controls as imposed by the U.S. State Department or in countries designated by the U.S. State Department as state sponsors of terrorism, including Cuba, Iran, the Democratic People's Republic of Korea (North Korea), Sudan and Syria. The Company has policies and procedures in place designed to ensure that it and its consolidated subsidiaries remain in compliance with applicable U.S. laws and regulations. OVERVIEW The following is a summary of the results from continuing operations for the Company for the year ended December 31, 2021 : The Company reported net sales in 2021 of $55 billion , up 43 percent from $38.5 billion in 2020 , with increases across all geographic regions and operating segments, driven by an increase in local price of 40 percent, a volume increase of 1 percent and a favorable currency impact of 2 percent. Local price increased 40 percent compared with the same period last year, with increases in all operating segments and geographic regions, primarily reflecting price gains due to tight supply and demand dynamics. Local price increased in Packaging & Specialty Plastics (up 50 percent), Industrial Intermediates & Infrastructure (up 40 percent) and Performance Materials & Coatings (up 19 percent). Volume increased 1 percent compared with 2020 , with increases in Packaging & Specialty Plastics (up 2 percent) and Performance Materials & Coatings (up 1 percent), partially offset by a decrease in Industrial Intermediates & Infrastructure (down 2 percent). Volume increased in the U.S. & Canada (up 2 percent) and in EMEAI (up 3 percent), partially offset by decreases in Asia Pacific (down 4 percent) and Latin America (down 3 percent). 31