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Long Boat KeyLong Boat KeyOctober 14, 2009October 14, 2009Long Boat KeyLong Boat Key

October 14, 2009October 14, 2009

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About Dow CorningA joint venture of The

Dow Chemical Company andCorning Incorporated

Organized to explore the potential of the silicon atom in 1943

Vision:

We are innovative leadersunleashing the power of silicon to benefit everyone, everywhere. Dr. Franklin J. Hyde

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Silicones come in many forms with many features

Fluids

Emulsions

Adhesives

Resins

Elastomers

Sealants

These are sold and used directly or converted by our customers into their finished products.

Silicones are used in millions of products around the world.

QuartzCarbon

SiliconMetal

MethylchloroSilanes

MethylSiloxanes

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Dow Corning innovating around the world

More than 7,000 products and related services

Approximately 25,000 customers

Over $5 billion in sales in 2008, globally dispersed with more than 60% outside the US

Approx. 10,000 employees worldwide

A global leader in silicones and high purity silicon

Strong channels to market – distributors, web, commercial organization

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Dow Corning serves customers’ diverse needs…AutomotiveBeauty &

Personal CareChemical

ManufacturingConstructionElectronics Food & BeverageHealthcare Household & CleaningImagingPaints and Inks Power and UtilitySolarPressure SensitiveRubber FabricationTextile, Leather

& Nonwovens

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Focus is on Products

Standard Silicone Products

Relentless pursuit of efficiency

Focus is on Markets

Specialty Products & Services

Relentless pursuit of innovation

Dow Corning Corporation

Dow Corning – One Company, Many Big Opportunities

Focus is on Polysilicon for

Semiconductor and Solar

Industries

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Manufacturing Sites

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Dow Corning locations worldwide

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Financial performance

0

100

200

300

400

500

600

700

800

Ne

t In

co

me

, $

Mil

lio

n

2003 2004 2005 2006 2007 2008

Year

0

1

2

3

4

5

6

Sa

les

, $

Bil

lio

n

2003 2004 2005 2006 2007 2008

Year

UTi LogoJointly Creating Supply Chain Competitive Advantage

9April 2009

• Air freight and ocean freight forwarding

• Customs Brokerage

• Contract Logistics

• Truck Brokerage and Distribution

• Supply Chain Management Services

UTi Financial Highlights (FY09)

• Revenues: $4.5 billion

• Net Revenues: $1.5 billion

• Operating

Income: $154 million*

• Net Income – $97 million continuing ops: ($0.97/share)*

Comprehensive Global Network

• 20,415 employees • Owned Freight Forwarding locations in 288 cities in 62 countries• 200 Logistics Centers in 26 countries (26.4 M ft.2)

Six Major Industry Verticals

• Retail, Consumer Products• Fashion and Apparel• Pharmaceutical• Chemicals• Automotive and Assembly• Hi-Tech and Consumer Electronics

Service Lines

* Excludes impairment, restructuring and severance charges of $130.6 million /$109.5 miillion after taxes

CAGR = 19% CAGR = 19%

UTi Worldwide (UTIW Listing on Nasdaq)

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Scope of our Partnership is Global and evolved step-by-step

UTi LogoJointly Creating Supply Chain Competitive Advantage

1996 1997 1998 20092008200720062005200420032002200120001999Services

Plant & Equipment Moves

Ocean Freight Forwarding

1996 1997 1998

Recyclables Moves

Contract Logistics

Customs Brokerage

Air Freight Forwarding

20092008200720062005200420032002200120001999Services

Mexico Cross Border

Mexico Cross Border

Europe GlobalRaw

MaterialEurope Global

Raw Material(Si Metal)

Europe GlobalEurope

Canada Distribution

Europe LLP

Turkey Platform

Europe LLP

Multibase France

Turkey Platform

ChinaChina

3rd PillarChina

China 3rd Pillar

China & India

China & India

Duty Drawback(Lost in 2005)

HoudengRouting Ctr

Paradigm Shifts for Dow Corning

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MultipleProcesse

s

Global /Local

Buying

LocalBuying

InternalExpertise

MultipleProviders

Port-to-PortCosts

ScatteredReporting

Carrier Pricing Models

Business Unit

Optimization

Focus onEnterpris

e

Local ServiceOptimization

“Out”Source

Single GlobalProvider

Door-to-DoorCosts

Global / LocalReporting

SingleProcess

Global / Local

Optimization

Per Kg.Charges

ExtendedEnterprise

Global / BUOptimizati

on

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• Single source International Transportation and Brokerage.

• Statistical Process Control to create a Predictability Index

• Gain transparency to transportation costs (open book approach and Shared Ocean Solution)

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Single Sourcing Drives Innovation

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• First Chemical company to link to UTi’s global uTrac system that tracks the status of all UTi shipments.

• First company to break 5000+ queries per month from uTrac.

• SAP tied to a single source of transportation data (uTrac) equals increased data integrity.

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Visibility Is Important

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EDI interfacing

SAP

accessE-invoicing

IT Integration • EDI interfacing for:– Delivery information– Goods issue– ADD capturing

• SAP Access– UTi staff working on DC SAP

• Electronic invoicing– UTi supplies Dow Corning with a monthly e-

invoice (excel file) containing data-elements as agreed with Dow Corning.

– The file permits Dow Corning to automatically upload the cost information into SAP linked to the cost centres in SAP.

– The e-invoice together with the Freight Rate Database (FRD) facilitates the invoicing check for Dow Corning

– Quality of the data-entry is continuously monitored.

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System Connectivity via EDI

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• Gain share warehouse (Houdeng)

• Consistent cost savings / avoidance or service improvement every year since the beginning of the contract.

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79.785Delivery line

itemsreceived

79.785Delivery line

itemsreceived

28.203Deliveriesreceived

28.203Deliveriesreceived

129.886 tonsreceived

129.886 tonsreceived

294.066Picking

transactions

294.066Picking

transactions

200.043Delivery line

itemsdispatched

200.043Delivery line

itemsdispatched

85.290Deliveries

dispatched

85.290Deliveries

dispatched

132.512 tonsdispatched

132.512 tonsdispatched

HoudengWarehousing

&Freight

Management

HoudengWarehousing

&Freight

Management

SEVES

O II

Responsible

Care

QS 9000

GMP

ISO 9001/20

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Beyond Freight Forwarding

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Introduced UTi to a 6 sigma approach to quality • Jointly developed an

emergency response plan as a 6 σ project.

• UTi actually provided Green Belt training to Dow Corning employees during this project.

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Six Sigma Approach

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Raw materials &Indirect materialUTi handles Silicon metal shipmentsTo the Barry basic plants

Basic plants in Carrollton, KY / Barry, Wales UK / Zhangjiagang, CN. Basic plants produce & ship intermediate building block chemicals to finishing plants and regional warehouses. There are also specialty plants that ship to the end customers or regional warehouses.

Regional warehouses store and then fill orders going to both DCC plants and directly to customers. These warehouses consolidate shipments whenever possible. UTi handles the European Warehouse. From this warehouse, regional customers receive their deliveries via truck. DCC locations and direct customers receive their shipments via Air or Ocean.

Local finishing plants complete the mfg process and package final product in to consumer packs. Final shipments are sent to DCC clients.

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Dow Corning Global Supply Chain

RecyclablesTo China &India

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Accomplishments Value to Dow Corning

Single sourcing of International Transportation $4.9 million per annum

Houdeng savings and Implementation new Houdeng organization

 About €  5.000.000

Transit Time Report Increase in TT predictability and inventory reduction. Project management approach to problem solving

Silicon Metal Project $20 million in cost savings (2000)

15 Onsite Resources Free resources to help UTi to support Dow Corning

Coupling savings & ENCO containers freezing Proposed fix to a local problem

Heavy Equipment Investment to DCC JINCHEON Plant

$825,000 savings Maximizing operational efficiency ; easy & useful container loading, unloading for export-import

Rusted drums emergency situation DC has saved business with key customers

Infocube / Volume Cost Report Increased analysis & reporting capabilities.  Freight cost visibility

C-TPAT implementation Houdeng + Houdeng audit by US customs

 DC received Tier 3 status by Ctpat – Tier 3 is the highest, only 300 out of 7000 companies in it

20’ vs. 40’ Container Usage Project $3 million dollars in direct savings in 2005-2007

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• UTi Account Management structure facilitates teamwork

• UTi Global

• Joint UTi-Dow Corning Regional Management Teams

• Joint UTi-Dow Corning “local” review meetings

• Joint UTi-Dow Corning communication matrix in order to guarantee effective communication on all levels

Communication Structure for a Global Partnership

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UTi LogoJointly Creating Supply Chain Competitive Advantage

Dow Corning Approach

UTi Lessons Learned

• Think like the client• Set joint goals• Learn to speak the same “language.”• Cultural fit is important• Never Rest – pursuit of continuous

improvement• Seek Feedback and Problems  - Quick

Resolution Process• Dedicated team – starting from the senior

level going to the desk level

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A Decade of Global Partnership 1998-2008