DOW CHEMICAL CO /DE/

NOTE 11 –NONCONSOLIDATED AFFILIATES

The Company’s investments in companies accounted for using the equity method (“nonconsolidated affiliates”), by classification in the consolidated balance sheets, and dividends received from nonconsolidated affiliates are shown in the following tables:

1. The carrying amount of the Company’s investments in nonconsolidated affiliates was $17 million more than and $55 million less than its share of the investees’ net assets at December 31, 2025 and 2024, respectively, exclusive of additional differences relating to Sadara and EQUATE Petrochemical Company K.S.C.C. ("EQUATE"), which are discussed separately in the disclosures that follow.

1. Included in "Earnings of nonconsolidated affiliates less than dividends received" in the consolidated statements of cash flows.

The nonconsolidated affiliates in which the Company has investments are privately held companies; therefore, quoted market prices are not available.

Sadara

In 2011, the Company and Saudi Arabian Oil Company formed Sadara - a joint venture between the two companies that constructed and operates a world-scale, fully integrated chemicals complex in Jubail Industrial City, Kingdom of Saudi Arabia. The Company has a 35 percent equity interest in this joint venture and continues to be responsible for marketing a significant portion of Sadara’s products through the Company’s established sales channels. In 2021, Dow and the Saudi Arabian Oil Company agreed to a marketing rights transition plan. Execution of the transition plan is ongoing and progressing towards aligning marketing rights and responsibilities to levels more consistent with each partner's equity ownership. This transition will not impact equity earnings, but is expected to reduce the Company's sales of Sadara products over the transition period.

The Company’s investment in Sadara was $1,120 million less than Dow’s proportionate share of the carrying value of the underlying net assets held by Sadara at December 31, 2025 ($1,280 million less at December 31, 2024). This basis difference, which resulted from the 2019 impairment of the investment, is primarily attributed to the long-lived assets of Sadara and is being amortized over the remaining useful lives of the assets. At December 31, 2025, the Company had a negative investment balance in Sadara of $901 million classified as "Other noncurrent obligations" (negative $517 million at December 31, 2024) in the Company’s consolidated balance sheets. The increase in the negative investment in Sadara Chemical Company at December 31, 2025 is primarily due to the equity losses generated during the year. See Note 15 for additional information related to guarantees.

EQUATE

At December 31, 2025, the Company had a negative investment balance in EQUATE of $24 million classified as "Other noncurrent obligations" (negative $51 million at December 31, 2024) in the consolidated balance sheets. The reduction in the negative investment was driven by equity earnings, partially offset by dividends distributed to shareholders in 2025. The Company's investment in EQUATE was $403 million less than the Company's proportionate share of EQUATE's underlying net assets at December 31, 2025 ($417 million less at December 31, 2024), which represents the difference between the fair values of certain MEGlobal assets acquired by EQUATE and the Company's related valuation on a U.S. GAAP basis at the acquisition date. A basis difference of $82 million at December 31, 2025 ($97 million at December 31, 2024), is being amortized over the remaining useful lives of the assets and the remainder is considered a permanent difference.

Transactions with Nonconsolidated Affiliates

The Company has service agreements with certain nonconsolidated affiliates, including contracts to manage the operations of manufacturing sites and the construction of new facilities; licensing and technology agreements; and marketing, sales, purchase, lease and sublease agreements.

The Company sells excess ethylene glycol produced at manufacturing facilities in the United States and Europe to MEGlobal, a subsidiary of EQUATE. The Company also sells ethylene to MEGlobal as a raw material for its ethylene glycol plants in Canada. Sales of these products to MEGlobal represented 1 percent of total net sales in 2025, 2024 and 2023. Sales of ethylene to MEGlobal are reflected in the Packaging & Specialty Plastics segment and represented 2 percent of the segment's sales in 2025, 2024 and 2023. Sales of ethylene glycol to MEGlobal are reflected in the Industrial Intermediates & Infrastructure segment and represented 1 percent of the segment's sales in 2025, 2024 and 2023.

The Company is responsible for marketing the majority of Sadara products outside of the Middle East zone through the Company’s established sales channels. Under this arrangement, the Company purchases and sells Sadara products for a marketing fee. Purchases of Sadara products represented 5 percent of "Cost of sales" in 2025 (6 percent in 2024 and 2023).

The Company purchases products from The SCGC-Dow Group, primarily for marketing and distribution in Asia Pacific. Purchases of products from The SCGC-Dow Group represented 2 percent of "Cost of sales" in 2025 (3 percent in 2024 and 2023).

Sales to and purchases from other nonconsolidated affiliates were not material to the consolidated financial statements.

Balances due to or due from nonconsolidated affiliates at December 31, 2025 and 2024, were as follows:

Principal Nonconsolidated Affiliates

The Company had an ownership interest in 36 nonconsolidated affiliates at December 31, 2025 (38 at December 31, 2024). The Company's principal nonconsolidated affiliates and its ownership interest (direct and indirect) for each at December 31, 2025, 2024 and 2023, are as follows:

1. The Company's effective ownership of Map Ta Phut Olefins Company Limited ("Map Ta Phut") is 32.77 percent, of which the Company directly owns 20.27 percent and indirectly owns 12.50 percent through its equity interest in Siam Polyethylene Company Limited.

The Company’s investment in and equity earnings from its principal nonconsolidated affiliates are as follows:

The summarized financial information that follows represents the combined accounts (at 100 percent) of the principal nonconsolidated affiliates.

1. The results in this table include purchase and sale activity between certain principal nonconsolidated affiliates and the Company, as previously discussed in the "Transactions with Nonconsolidated Affiliates" section.