Slide 1: 2023 First-quarter Earnings Conference Call
April 28, 2023 2023 First-quarter Earnings Conference Call Company-wide Transformation Driving Customer Satisfaction and Technology Leadership Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements and projections contained in this presentation are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections
Slide 3: Agenda
Agenda Craig Barber Senior Director, Investor Relations and Strategic Planning Introduction James Kamsickas Chairman and Chief Executive Officer Business Review Timothy Kraus Senior Vice President and Chief Financial Officer Financial Review © 2023 Dana
Slide 4: Company transformation driving growth and positioning us for continued success
Company transformation driving growth and positioning us for continued success Q1 Financial Results sales $2.6 billion $164 from prior year adjusted EBITDA $204 million $34M from prior year free cash flow $(290) million $53M from prior year diluted adjusted EPS $0.25 9¢ from prior year Highlights Op
Slide 5: Operating Environment
Operating Environment Cost inflation continues: COLAs driving labor costs higher Higher energy costs in Europe Pricing actions muting inflation impact Strong operational execution partially offset customer production volatility Steel moderating compared to 2022 Certain grades increased slightly in Q
Slide 6: Major Launch Highlights
Major Launch Highlights Launch on track and nearing completion Pre-production beginning Battery cooling production ramp-up Roll-on of latest models of traditional and EV platforms Late fourth-quarter launch Q1 Q3 Q2 Q4 2023 Key Launches
Slide 7: Sustainability: Climate Action
Sustainability: Climate Action 75% Reduction of Scope 1 and Scope 2 GHG emissions by 2030 25%+ Reduction in Scope 3 GHG emissions by 2030 2040 Net zero Managing with Science Based Targets
Slide 8: Technology Expertise: Performance e-Transmissions
Technology Expertise: Performance e-Transmissions Dana EV technologies drive the most advanced performance cars in the world
Slide 9: Advanced Clean Transportation (ACT) Expo
Advanced Clean Transportation (ACT) Expo Look for our press release on Tuesday, May 2, 2023 Unveiling our latest electric drive system for medium-duty trucks
Slide 10: Financial Review
DAN LISTED NYSE Financial Review
Slide 11: 2023 Q1 Financial Results
See appendix for comments regarding the presentation of non-GAAP measures Sales growth primarily due to increased demand and recovery of cost inflation, offset by currency headwinds Improved profit driven by lower net manufacturing costs, EV investment, and commodity costs Higher income tax expense
Slide 12: 2023 Q1 Sales and Profit Changes
Organic growth driven by improved demand, pricing, and mix Strong operational execution muting cost inefficiencies from customer order volatility Cost inflation offset by customer recoveries Timing of investment in EV business driving modest margin benefit Translation of foreign currencies to U.S. d
Slide 13: 2023 Q1 Free Cash Flow
2023 Q1 Free Cash Flow Free cash flow use driven by increased working capital Higher cash interest due to timing of payments Higher working capital primarily driven by increased inventory to support launches and higher sales in heavy vehicle markets 1 Includes costs associated with business acquisit
Slide 14: 2023 FY Financial Guide
Sales Adjusted EBITDA Implied Profit Margin Free Cash Flow Diluted Adjusted EPS 2023 FY Financial Guide Sales growth supported by improved end-market demand, pricing actions, and market share gains Cost inefficiencies, driven by volatile customer production, and higher sales due to cost recoveries h
Slide 15: 2023 FY Sales and Profit Changes
Organic growth driven by strong sales, pricing, and market share gains Gross inflation and related recoveries are now expected to be lower than prior estimate; net profit impact from inflation remains the same, as cost recovery actions are expected to offset all but ~$50M of inflation headwind Conti
Slide 16: 2023 FY Free Cash Flow
2023 FY Free Cash Flow Positive free cash flow even with increased capital spending Working capital expected to be a modest source, even with sales increase, as efficiency gains from 2022 continue Higher capital spending to support new business backlog and EV programs 1 Includes costs associated wit
Slide 17: Appendix
Appendix
Slide 18: 2023 Q1 Sales and Profit Change by Segment
2023 Q1 Sales and Profit Change by Segment See appendix for comments regarding the presentation of non-GAAP measures 10.3% 10.1% 6.3% 13.5% 11.9% Light Vehicle Drive Systems Commercial Vehicle Drive and Motion Systems Off-Highway Drive and Motion Systems Power Technologies Sales Adjusted EBITDA 10.3
Slide 19: Segment Profiles
Segment Profiles CUSTOMER SALES REGIONAL SALES Light Vehicle Drive Systems Commercial Vehicle Drive and Motion Systems Off Highway Drive and Motion Systems Power Technologies Year to Date 3/31/2023 Year to Date 3/31/2023 Year to Date 3/31/2023 Year to Date 3/31/2023 * Includes sales to systems integ
Slide 20: Diluted Adjusted EPS
Diluted Adjusted EPS eS DANA INCORPORATED iliation of Net Income Attril to the Parent Company to Adjusted Net Income Attributable to the Parent Company and Diluted Adjusted EPS (Unaudited) For the Three Months Ended March 31, 2023 and 2022 (in millions, except per share amounts) Three Months Ended M
Slide 21: Segment Data
Segment Data DANA INCORPORATED Segment Sales and Segment EBITDA (Unaudited) For the Three Months Ended March 31, 2023 and 2022 (in millions) Sales Light Vehicle Commercial Vehicle Off Highway Power Technologies Total Sales Segment EBITDA Light Vehicle Commercial Vehicle Off-Highway Power Technologie
Slide 22: Cash Flow
@ Cash Flow DANA INCORPORATED Reconciliation of Net Cash Provided By (Used In) Operating Acti Free Cash Flow (Unaudited) Three Months Ended (In millions) March 31, 2023 2022 Net cash used in operating activities $ (170) $ (121) Purchase of property, plant and equipment (120) (116) Free cash flow $ (
Slide 23: DANA
F DANA
Slide 24: Non-GAAP Financial Information
Non-GAAP Financial Information Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit co