Slide 1: Dana Corporation 4th Quarter Conference Call
Dana Corporation 4th Quarter Conference Call February 11, 2004
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements herein about our forecasts, beliefs, and expectations constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on our current information and assumptions. Forward-looking state
Slide 3: Agenda
Agenda Recent Announcements 2003 Financials Market Overview 2004 Guidance Q&A Session Glen Hiner Chairman of the Board Bob Richter Chief Financial Officer (c)Dana Corporation. February 11, 2004.
Slide 4: New CEO, President & Director
New CEO, President & Director 34 years with General Motors Corp. Most recently served as President - GM Europe based in Zurich Past responsibility in operations, engineering, administration & sales Michael J. Burns (c)Dana Corporation. February 11, 2004.
Slide 5: Dividend Increase
Dividend Increase 12 cents per share (an increase of 6 cents from previous payment Second significant increase in as many quarters (5-cent-per-share increase in Q4) Reflects Board's continuing confidence in Dana Future dividends will balance: Performance; Financial position; and Core business invest
Slide 6: Financial Summary
Financial Summary (in millions, except earnings per share) 4th Quarter Full Year 2003 2002 2003 2002 Net Sales Continuing operations $ 2,050 $ 1,790 $ 7,918 $ 7,501 Discontinued operations 473 617 2,153 2,782 Total $ 2,523 $ 2,407 $ 10,071 $ 10,283 Net Income (Loss) Income (loss) from continuing ope
Slide 7: Impact of Discontinued Operations on Financial Statements - FAS 144
Impact of "Discontinued Operations" on Financial Statements - FAS 144 Criteria Committed to and actively pursuing sale of an available asset within one year. Income Statement Results from "Discontinued Operations" (i.e., AAG) must be reported in one line separately from Continuing Operations. Profit
Slide 8: 2003 Income Statement Reconciliation With DCC on an Equity Basis
2003 Income Statement Reconciliation With DCC on an Equity Basis 2003 "Expected" 2003 Reported (Millions) AAG Sale Total Previous Disc. Ops. $ $ $ $ $ $ $ $ $ $ (c)Dana Corporation. February 11, 2004.
Slide 9: Income Statement With DCC on an Equity Basis
(Millions) 2003 2002 Income Statement With DCC on an Equity Basis 2003 2002 YTD Fourth Quarter (c)Dana Corporation. February 11, 2004.
Slide 10: Segment Table - Full Year 2003 Reconciliation
Segment Table - Full Year 2003 Reconciliation Automotive 3,903 - - - 3,903 155 - - - 155 Aftermarket 2,180 (2,180) - - - 76 (76) - - - Engine & Fluid 2,077 108 2,185 90 (3) 87 Heavy Vehicle 1,999 - - - 1,999 79 - - - 79 DCC - - - - - - - - - 21 - - - 21 Other (243) 74 (169) (232) 21 (211) Results fr
Slide 11: Full-Year Segment Comparison
Full-Year Segment Comparison Automotive 3,903 3,629 8 155 157 (1) Engine & Fluid 2,185 2,157 1 87 73 19 Heavy Vehicle 1,999 1,889 6 79 63 25 DCC 21 26 (19) Other (169) (174) 3 (211) (236) 11 Results from Cont. Operations 7,918 7,501 6 131 83 58 Discontinued Ops. 52 88 Unusual Items 39 (133) Effect o
Slide 12: 2003 Balance Sheet With DCC on an Equity Basis
2003 Balance Sheet With DCC on an Equity Basis (Millions) $ $ $ $ $ $ 2003 "Expected" 2003 Reported AAG Sale (c)Dana Corporation. February 11, 2004.
Slide 13: 2003 Balance Sheet With DCC on an Equity Basis
2003 Balance Sheet With DCC on an Equity Basis (Millions) $ $ $ $ $ $ 2003 "Expected" 2003 Reported AAG Sale (c)Dana Corporation. February 11, 2004.
Slide 14: Cash Flow Statement With DCC on an Equity Basis
Cash Flow Statement With DCC on an Equity Basis 2003 2002 YTD (Millions) (c)Dana Corporation. February 11, 2004.
Slide 15: Capital Structure With DCC on an Equity Basis
Capital Structure With DCC on an Equity Basis (c)Dana Corporation. February 11, 2004.
Slide 16: Net Debt With DCC on an Equity Basis
Net Debt With DCC on an Equity Basis 12/1/2000 2732 0.51 3/1/2001 2767 0.532 6/1/2001 2824 0.543 9/1/2001 2764 0.539 12/1/2001 2590 0.569 3/2/2002 2563 0.612 6/2/2002 2501 0.588 9/2/2002 2388 0.588 12/2/2002 1964 0.57 3/3/2003 2138 0.574 6/3/2003 1999 0.528 9/3/2003 1899 0.507 12/3/2003 1683 0.451 N
Slide 17: Aftermarket Business Divestiture
Aftermarket Business Divestiture Future success demands focus; Dana will focus on its OE markets Proposed transaction is a "win-win" for Dana and the Aftermarket Group Potential uses of divestiture proceeds: Repay debt Contribute to pension plans Reinvest in our core businesses (c) Dana Corporation.
Slide 18: Light Vehicle Production North America
Light Vehicle Production North America 2002 2003 2004P 2005P East 16.4 15.9 16.2 16.5 Units in Millions (c) Dana Corporation. Dated February 11, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2.
Slide 19: Light Vehicle Production South America
Light Vehicle Production South America 2002 2003 2004P 2005P East 1.9 1.9 2.3 2.6 Units in Millions (Includes South Africa) (c) Dana Corporation. Dated February 11, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2.
Slide 20: Light Vehicle Production Europe
Light Vehicle Production Europe 2002 2003 2004P 2005P East 20.8 21 21.5 22.7 Units in Millions (Includes India) (c) Dana Corporation. Dated February 11, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2.
Slide 21: Light Vehicle Production Asia Pacific
Light Vehicle Production Asia Pacific 2002 2003 2004P 2005P East 18.1 18.5 19.6 20.2 Units in Millions (c) Dana Corporation. Dated February 11, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2.
Slide 22: NAFTA Production Class 5-8
NAFTA Production Class 5-8 Class 5-7 Class 8 1999 241 334 2000 215 252 2001 176 146 2002 189 181 2003 195 176 2004P 211 245 2005P 216 281 2006P 226 318 Units (000s) (c) Dana Corporation. Dated February 11, 2004. Slide may contain forward-looking information. Actual results may differ materially due
Slide 23: NAFTA Heavy Truck Build Units By Quarter
ACTUAL F'CAST 1999 79 85 85 85 2000 84 74 52 42 2001 39 39 34 34 2002 35 49 56 41 2003 36 44 46 50 2004 59 252,000 176,000 Thousands NAFTA Heavy Truck Build Units By Quarter 245,000 334,000 146,000 181,000 (c) Dana Corporation. Dated February 11, 2004. Slide may contain forward-looking information.
Slide 24: 2004 Off-Highway Environment
2004 Off-Highway Environment (Projected Vehicle Production) Construction Mining Forestry Agriculture Material Handling OPE Leisure/Utility +11% +3% +2% +3% +0% +0% +13% +16% - - 4% +5% +6% +9% +5% +6% +4% +3% +2% +1% +0% - - 5% N.A. Europe S.A. Asia (c) Dana Corporation. Dated February 11, 2004. Sli
Slide 25: Exciting New Programs
Exciting New Programs Tundra Tacoma Hilux Titan/Armada Infiniti Version X5 X3 Z4 F-150 Land Rover Discovery Colorado/Canyon Corvette C6 Hummer H3 PT Cruiser Turbo Chrysler Pacifica (c) Dana Corporation. Dated February 11, 2004. Slide may contain forward-looking information. Actual results may differ
Slide 26: 2004 Guidance: Supporting Assumptions
2004 Guidance: Supporting Assumptions Market Forecasts Net New Business Start-Up Costs Restructuring Benefits Debt Reduction AAG Transaction Closes by End of Q2 (c) Dana Corporation. Dated February 11, 2004. Slide may contain forward-looking information. Actual results may differ materially due to f
Slide 27: Pro-Forma Performance
Pro-Forma Performance ($ Millions, except per share data) 2003 2004 Actual Plan Sales $ 7,918 > $8,500 Net Income 222 > 285 EPS 1.49 > 1.90 (c) Dana Corporation. Dated February 11, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on s
Slide 28: 2004 Cash Flow Projection
2004 Cash Flow Projection ($ Millions) (c) Dana Corporation. Dated February 11, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2.
Slide 29: The New Dana
The New Dana New Spirit New Direction OE Aftermarket New Programs New Partnerships New Products & Technologies New Leadership (c)Dana Corporation. February 11, 2004.
Slide 30: Thank You
Thank You (c)Dana Corporation. February 11, 2004.
Slide 31: Supplemental Information
Supplemental Information (c)Dana Corporation. February 11, 2004.
Slide 32: Q4 2003 Income Statement Reconciliation With DCC on an Equity Basis
Q4 2003 Income Statement Reconciliation With DCC on an Equity Basis (Millions) $ $ $ $ $ $ $ $ $ $ Q4-2003 "Expected" Q4-2003 Reported AAG Sale Total Previous Disc. Ops. (c)Dana Corporation. February 11, 2004.
Slide 33: 2002 Income Statement Reconciliation With DCC on an Equity Basis
2002 Income Statement Reconciliation With DCC on an Equity Basis 2002 Reported 2002 Restated (Millions) $ $ $ $ $ $ (c)Dana Corporation. February 11, 2004. AAG Sale
Slide 34: Q4 2002 Income Statement Reconciliation With DCC on an Equity Basis
Q4 2002 Income Statement Reconciliation With DCC on an Equity Basis Q4 2002 Reported Q4 2002 Restated (Millions) $ $ $ $ $ $ (c)Dana Corporation. February 11, 2004. AAG Sale
Slide 35: Segment Table - Q4 2003 Reconciliation
Segment Table - Q4 2003 Reconciliation Automotive 1,035 - - - 1,035 39 - - - 39 Aftermarket 514 (514) - - - 17 (17) - - - Engine & Fluid 513 23 536 26 1 27 Heavy Vehicle 516 - - - 516 22 - - - 22 DCC - - - - - - - - - 4 - - - 4 Other (55) 18 (37) (46) 2 (44) Results from cont. operations 2,523 (473)
Slide 36: Segment Table - Full Year 2002 Reconciliation
Segment Table - Full Year 2002 Reconciliation Automotive 3,629 - - - 3,629 157 - - - 157 Aftermarket 2,189 (2,189) - - - 107 (107) - - - Engine & Fluid 2,046 111 2,157 81 (8) 73 Heavy Vehicle 1,889 - - - 1,889 63 - - - 63 DCC - - - - - - - - - 26 - - - 26 Other (249) 75 (174) (253) 17 (236) Results
Slide 37: Segment Table - Q4 2002 Reconciliation
Segment Table - Q4 2002 Reconciliation Sales OPAT Automotive 906 - - - 906 41 - - - 41 Aftermarket 498 (498) - - - 25 (25) - - - Engine & Fluid 475 21 496 19 (4) 15 Heavy Vehicle 437 - - - 437 10 - - - 10 DCC - - - - - - - - - 3 - - - 3 Other (65) 16 (49) (57) 7 (50) Results from cont. operations 2,
Slide 38: Fourth-Quarter Segment Comparison
Fourth-Quarter Segment Comparison Automotive $1,035 906 14% $ 39 $ 41 (5)% Engine & Fluid 536 496 8 27 15 80 Heavy Vehicle 516 437 18 22 10 120 DCC 4 3 33 Other (37) (49) 24 (44) (50) 12 Results from cont. operations $2,050 $1,790 15% 48 19 153% Discontinued ops. 14 13 Unusual items 6 (41) Consolida
Slide 39: (c)Dana Corporation. February 11, 2004.
(c)Dana Corporation. February 11, 2004.