Dana Incorporated · NYSE:DAN
Dana — Merger or Acquisition (March 2018)
101 slides from Dana's merger presentation, Mar 13, 2018
Slide 1: Dana
DANA Peepple Finding of Dieter Way?
Slide 2: Important Information for Investors and Stockholders
Important Information for Investors and Stockholders This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed transaction between Dana and GKN, an entity to be formed for th
Slide 3: The Dana Leadership Team
The Dana Leadership Team Jim Kamsickas President, Chief Executive Officer Jonathan Collins Executive Vice President, Chief Financial Officer Finance Craig Price Senior Vice President Purchasing Dwayne Matthews President, Power Technologies Mark Wallace Executive Vice President, President, Commercial
Slide 4: © Dana 2018
© Dana 2018 4
Slide 5: Snapshot
© Dana 2018 $ 2017 sales: $7.2 billion 139 major facilities 33 countries on 6 continents With customers in 140+ countries 22 Technical Centers ~30,000 people Based in Maumee, Ohio, USA Founded in 1904 Snapshot
Slide 6: Our Vision
© Dana 2018 To be the technology leader in efficient power conveyance and energy-management solutions that enable our customers to achieve their sustainability objectives Our Vision
Slide 7: Our Mission
© Dana 2018 Our talented people power a customer-centric organization that is continuously improving the performance and efficiency of vehicles and machines around the globe We will consistently deliver superior products and service to our customers and will generate exceptional value for our shareh
Slide 8: Our Core Values
© Dana 2018 Honesty and Integrity Good Corporate Citizenship Continuous Improvement Open Communication Our Core Values
Slide 9: Core Technologies, End Markets and Business Units
Thermal Management Sealing Solutions Driveline Technologies Core Technologies End Markets Business Units Off-Highway Drive and Motion 21% Light Vehicle Driveline 44% Commercial Vehicle Driveline 20% Power Technologies 15% Motion Technologies Vehicle Driveline: Axles, driveshafts, transmissions, hydr
Slide 10: Customer Breadth
Brilliance Jinbei Customer Breadth
Slide 11: Industry Recognitions
Excellence in Innovation Top Powertrain Supplier PACE Award Finalist Outstanding Supplier Most Valuable Brand Design & Development Top Value Add / Engineering Innovation Award Sustainability Award Supplier Quality Excellence Industry Recognitions
Slide 12: Key Vehicle Programs
Ford F250-F450 Super Duty Sany 5T Wheel Loader GM Colorado/Canyon Dynapac Compactor JLG Skytrak Mercedes-Benz GLC Deutz 6-7 AG Tractor Ford Medium Duty Trucks Nissan Titan Jeep Wrangler Audi Q5 MAN VW Constellation Truck Bahrat Benz Medium Duty Jaguar F-Pace Toyota Hilux Ford Global Ranger Select Ke
Slide 13: Key Platforms Recognitions
Six of Ward’s 2017 Ten Best Engines 2017 North American Truck of the Year 2017 North American Utility Vehicle of the Year 2017 Motor Trend Truck of the Year Key Platforms Recognitions
Slide 14: Product Overview
Product Overview Engine Transmission Driveshaft Engine Seals & Gaskets Battery Cooling Electronics Cooling Engine Cooling Transmission Sealing & Cooling Active Warm Up Transmissions Hydrostatic Hydrodynamic Hydromechanical Variable Continuously Variable Planetary Aluminum Driveshafts Steel Driveshaf
Slide 15: The Dana Brand Family
The Dana Brand Family Driveline Technologies Sealing Solutions Thermal Management Digital Services Intelligent Load Monitoring Tire Analytics OpTiMa™ Motion Technologies
Slide 16: Commercial and Regional Diversity
Commercial and Regional Diversity Commercial Presence Regional Presence Note: Includes 100% DDAC; Figures shown as % of 2017 Sales. 1Includes sales to Hyundai Mobis that support FCA vehicles.
Slide 17: Market Participation
Light Vehicle Mobility Market Participation Commercial Vehicles Off-Highway US Housing Starts 2014–’18E CAGR: 7% Construction / Agriculture Remains Below Trend with Late-Cycle Upside Ongoing Recovery and Stability in Heavy Truck Market ACT Outlook for North America (Units in 000s) Shift in Vehicle B
Slide 18: Dana Global Manufacturing Footprint
Dana Global Manufacturing Footprint North America Europe CORP CV LV OH PT Tech Center (stand-alone only) South America Asia AUS / NZ South Africa MI WI IL IN OH PA WV NY Canada TO 1 Includes 100% DDAC; Figures shown as % of 2017 Sales. OH Sales by Region(1) Facility Breakdown LV CV PT Corp
Slide 19: Key Investment Highlights
© Dana 2018 Key Investment Highlights
Slide 20: Dana Investment Highlights
Dana Investment Highlights Global Presence 1 Cycle Positioning 5 Broad Customer Base 2 Solid Balance Sheet 7 Expanding Margins & Cash Flow 6 Relevant Technology Portfolio 3 Strong Sales Backlog 4 Clear Investment Priorities 8
Slide 21: Global Presence
Global Presence Represents a competitive advantage in each end market served 1 Regional demand fluctuations balanced through capacity utilization Existing footprint leveraged to capitalize on growth opportunities Technology utilized across multiple end markets Global supply chain integrated to drive
Slide 22: Broad Customer Base
Broad Customer Base No customer is >20% of sales and cross-end-market commercial synergies exist 2 Group represents more than 50% of our global sales We supply each in every region of the world Represents all three of our end markets Served by at least two of our four business units Select Customers
Slide 23: Relevant Technology Portfolio
Relevant Technology Portfolio 3 Products are differentiated through proprietary technology Consistent and efficient R&D spend of ~3% reflects commitment to innovation Vast intellectual property assets with 4,000 active patent cases Investment is leveraged across three end markets Key Technologies
Slide 24: Strong Sales Backlog
Strong Sales Backlog 4 Current sales backlog of $800M is balanced commercially and regionally Virtually all existing programs secured through the end of the decade Large portion of backlog driven by new programs and products from new vehicles and technology Backlog calculation is booked new business
Slide 25: Cycle Positioning
5 Cycle Positioning Positioned to benefit from recovery in global commercial and off-highway end markets Light Vehicle Commercial Vehicle Off Highway Market Historical Trend 2017 to 2020 2009 to 2020 North America (Full Frame Truck) Europe South America Asia Pacific 0% CAGR Market Historical Trend 2
Slide 26: Expanding Margins and Cashflow
Expanding Margins and Cashflow 6 Margin expansion of ~200 bps in earnings and ~260bps in cash flow 12.8% Adj. EBITDA Margin & FCF Progression 10.8% End market demand changes have had a significant impact to top line and margins Backlog to convert at accretive margins due to fixed cost leverage Lever
Slide 27: Strong Balance Sheet
6 $ in Millions 12/31/2017 Total Debt(1) $1,821 Cash 643 Net Debt $1,178 LTM EBITDA $835 Net Leverage 1.4x Revolver Capacity $578 Total Liquidity $1,221 Credit Metrics and Debt Maturity Cash Flow Revolver (Not Drawn) $600 7 Prudent balance sheet management resulting in very strong credit metrics pro
Slide 28: Clear Investment Priorities
Clear Investment Priorities 8 Organic Growth Inorganic Growth 1 2 Cash Repatriation 4 Capital Structure 3 Investing to deliver backlog generates attractive returns Targeting consistent capital spend levels at ~4% of sales Selectively expand product technology Enhance geographic presence Reduce debt
Slide 29: Enterprise Strategy
Enterprise Strategy
Slide 30: Overdrive: Strengthen the Core
SI OVERDRIVE ))) S Strengthen Customer the Core » Operational Excellence fanlelenaicesiing » Design & E1 » Manufact >>>) iii: © Dana 2018 30
Slide 31: Leverage the Core
Increase sharing of resources across business units Unlock value by leveraging core capabilities, technology, assets and people across the enterprise Operating model emphasizes shared enterprise functions Acquisitions have amplified benefits of leveraging our core Leverage the Core Source: Customer
Slide 32: Proven M&A Capabilities Recognized by Investors
February 2016 Transaction Value: $20mm December 2016 Transaction Value: $85mm EV / EBITDA: 5.0 – 6.0x February 2017 Transaction Value: ~$350mm EV / EBITDA Pre-Synergies: 11.5 – 12.0x Synergies: ~$30mm EV / EBITDA Post-Synergies: ~6.0x March 2017 Transaction Value: $100mm EV / EBITDA: ~5.0x Recent M&
Slide 33: Leverage the Core
Light Vehicle Commercial Vehicle Off-Highway 3 2 1 4 6 5 Mining Constr. Agri. Other 7 8 COMPETITORS Power Technologies Mining Constr. Agri. Other 3 2 1 6 5 4 7 8 Dana’s Sealing and Thermal Products Reach Across All Mobility Segments… 7 8 Dana Is the Only Driveline Supplier Across All Vehicle Classes
Slide 34: Dana Aftermarket Portfolio
Dana Aftermarket Portfolio DANA. a VICTOR REINZ TRU-COOL QS SPICER a. THOMPSON: a QS —_—_ GLASER A Dana Brand Ere S&S es =>, TRANSESES) ° © Dana 2018
Slide 35: Positioned for OEM Outsourcing Initiatives
Market and technology trends driving increased outsourcing initiatives Flexible manufacturing to support higher content Leverage core capabilities to win new business Positioned for OEM Outsourcing Initiatives Select Examples
Slide 36: Dana AdvanTEK axles
a a Dana® AdvanTEK® independent front and solid rear pea a axles with optional electronic-locking rear axle gach and dep: jement System yarturé) © Dana 2018 36
Slide 37: Recognized Global Brands
Recognized Global Brands S&S © Dana 2018 37
Slide 38: Major New Program Wins
Commercial Vehicle Off-Highway Light Vehicle TE14 powershift transmission Dana Smart-suite system for monitoring and control Production anticipated 1st half of 2018 2019 Silverado Class 4 medium duty Class 5 medium duty Production anticipated late 2018 Dana will supply: Front and rear axles Propshaf
Slide 39: Expand Global Markets
Investing to optimize global footprint and align with customers’ global sourcing patterns Focused on under-served regions and driving disproportionate growth in Asia Success in emerging markets driven by locally engineered and branded solutions T6 Program Ranger IMV Program Tacoma / Hilux HGRA Progr
Slide 40: New Facilities – Rayong, Thailand & Chongqing, China
New Facilities – Rayong, Thailand & Chongqing, China Investment to Support New Business Backlog
Slide 41: Dana China at a Glance
Dana China at a Glance Manufacturing Footprint 2017 Sales Distribution Key Brands in China Key Customers in China Division Customer Shengyang Shanghai Chongqing Fuzhou Shiyan Xiangyang Yancheng Wuxi Facilities: 14 2 added in 2017 People: 7,000
Slide 42: Continuous Commitment & Investment in China
1991 1994 1995 2005 2001 2011 2013 2012 2016 2015 2014 2017… Entered China market Shenyang Spicer Driveshaft (SSD) Co., Ltd. established Fujian Spicer Drivetrain System (FSD) Co., Ltd. established Dana (Wuxi) Technology Co., Ltd. opened Dongfeng Dana Axle (DDAC) Co., Ltd. established Increased the s
Slide 43: Dongfeng Dana Axle Company Limited
Dongfeng Dana Axle Company Limited Established in 2007 Dana and Dongfeng Commercial Vehicle are each a 50% owner of DDAC Dongfeng CV is a joint venture between Volvo (45%) and Dongfeng Motor (55%) The JV designs, manufactures, and sells commercial vehicle axles for the truck and bus markets in China
Slide 44: Commercialize New Technology
Investing in technology that helps customers address key secular trends Increasing content per vehicle in driveline and power technologies Expanded thermal-management needs to address heat from engines and electronics Adoption of AWD architectures creates driveline growth opportunity Commercializing
Slide 45: Select New Technologies
ILMS Spicer ® OpTiMa™ VariGlide® Pilot customers Intelligent Load Monitoring System Details Modular, integrated, protected sensor assembly Monitors vehicle stability & axle roll/pitch angles Estimates lifted loads & monitors axle shock loads Tire Pressure Management Details Fully integrated automati
Slide 46: Digital Services Offerings
Mobile device data collection Measures tire wear trends Delivers predictive analytics Preemptively minimizes downtime Establishes optimal timeframes for scheduled replacement Leverages Dana’s drive system expertise to solve real-world customer problems SaaS Features and Functionality “This system he
Slide 47: Electrification Strategy
Electrification Strategy >>>>>>>>>>)>))> ©Dana2018 47
Slide 48: Dana's Electrification Strategy – Summary
Vehicles that utilize Dana’s current driveline products, mainly full frame trucks and larger vehicles, will continue on a growth trajectory using traditional internal combustion engines These vehicles are expected to transition toward hybrid and electric propulsion much later in the cycle due to the
Slide 49: Thermal and Sealing Solutions; Electrification Products
Thermal and Sealing Solutions Chiller Intercell Element Cold Plate Battery Cooling Bipolar Plates Insulated Gate Bipolar Transistors Inverter Cooling Fuel Cell Mining e-Transmissions E-Transmissions optimized specifically for central motor architectures in mining applications Provides enhanced cooli
Slide 50: e-Axle for Class Light Commercial Van
e-Axle for Class 2 Light Commercial Van 1 Provides full system solution for light commercial van segment Single-speed, double-reduction gearbox with bolt-on electric motor and integrated anti-theft device Gearing and tooth geometry yields reduced noise Double-Reduction Gearbox
Slide 51: e-Axle for City Delivery Vehicles
e-Axle for City Delivery Vehicles Bolt-on e-Axle replaces centralized motor architecture for optimal driveline system 176 kg weight reduction and 11% reduction in energy consumption and improved vehicle packaging 2 Application for Class 5 Trucks
Slide 52: e-Axle for Transit Buses
e-Axle for Transit Buses Integrated e-Axle replaces centralized motor architecture for optimal flexibility Wide range of traction drive motors for maximum application coverage Improved vehicle packaging and weight reduction over conventional drivetrain EP8: Med-Bus < 13,000 kg GVW EP6: Mini-Bus < 80
Slide 53: Electric Drive for Off-Highway Applications
e-Planetary Wheel and Track Drive Electric 3-stage planetary hub drive with semi-integrated motor and integrated brake options Highly efficient with a compact modular design Dana is a single source for all off-highway drive and motion systems 4 Electric Drive for Off-Highway Applications
Slide 54: E-Transmission for Mining Applications
E-Transmission for Mining Applications 5 Electric Transmission Electrification of mining applications offers opportunity for market expansion EV’s reduce mining production cost and environmental impact Program currently launching with Sandvik
Slide 55: Battery Cooling
Battery Cooling 6 Liquid Cooled Plates Extends battery life and shortens charging time Uniform surface temperature of plates allows for faster warm-up Larger cold plates possible due to precision laser joining Over 20 million plates shipped to over 20 customers in North America, Asia, and Europe
Slide 56: Power Electronics Cooling
Power Electronics Cooling 7 Electronics and Inverter Cooling Increases efficiency and extends life of sensitive electronics Lightweight aluminum construction for low thermal resistance Ultra clean flux-less brazing with superior flatness Direct application for electric axles and inverters
Slide 57: Fuel Cells Plates
Fuel Cells Plates 8 Vehicle and Stationary Applications Key component of a fuel cell with multiple plates per cell Metallic plates used for high power density automotive applications Graphite composite used for durability in stationary and bus applications In production for over 10 years
Slide 58: Enterprise Strategy Execution
Enterprise Strategy Driving Growth: $800M Backlog Through 2020 World Excellence Award Supplier Quality Excellence Supplier Excellence Award Innovation Supplier of the Year Best Supplier Award Excellence in Innovation Toledo Manufacturing Győr Gear Plant Yancheng Manufacturing Chongqing Manufacturing
Slide 59: Financials and Outlook
© Dana 2018 Financials and Outlook
Slide 60: 2017 Year-End Review
2017 Year-End Review sales $7.2 billion 24% from prior year adjusted EBITDA $835 million $175M increase from prior year margin 11.6 30bps increase from prior year % diluted adjusted EPS $2.52 30% increase from prior year recognition 37 customer and industry honors +12 increase from prior year increa
Slide 61: Financial Overview
Financial Overview Sales Adjusted EBITDA Cash Flow % of Sales Diluted Adjusted EPS 6.6% 7.7% ~9.0% $1.94 $ in Millions $ in Billions 6.7% $1.74 $6.1 $5.8 $7.2 ~$7.9 A=Actual; T=Target ±2% ±3% ±5% See back of presentation for comments regarding the presentation of non-GAAP measures. ~$7.6 ±2% ±3% ~7.
Slide 62: 2018 – 2020 Sales Backlog: $800 Million
2018 – 2020 Sales Backlog: $800 Million Future growth will outperform market due to booked business Backlog includes booked incremental new business net of any lost replacement business Increased by $50M or 7% over prior three year disclosure Backlog increase due to new business wins as currency and
Slide 63: 2018 FY Financial Guidance
Projecting significant increases to all key financial metrics Sales guidance exceeds prior long-term financial targets one year early largely due to pace of market recovery Adjusted EBITDA guidance exceeds prior 2019 targets by $15M while margin progresses nicely towards 12.8% target Free cash flow
Slide 64: 2019 FY Financial Targets
Projecting significant increases to all key financial metrics Sales guidance exceeds prior long-term financial targets one year early largely due to pace of market recovery Adjusted EBITDA guidance exceeds prior 2019 targets by $15M while margin progresses nicely towards 12.8% target Free cash flow
Slide 65: Outlook
Outlook 2016 - 2017 2018 2019 Introduced Enterprise Strategy: Shifting Into Overdrive 4 businesses acquired and integrated Profitable organic and inorganic growth of more than $1B delivers 80 bps of margin expansion $750M of 3-year sales backlog Acquisitions synergies recognized Sales continue to gr
Slide 66: Combination with GKN Driveline: J.P. Morgan Auto Conference
J.P. Morgan Auto Conference August 8, 2017 Jonathan Collins Executive Vice President & Chief Financial Officer © Dana 2018 Combination with GKN Driveline Creating a Global Leader in Electrified Drive Systems
Slide 67: Transaction Summary
Transaction Summary Transaction Terms Timing / Approvals Corporate Structure Dana to combine with GKN Driveline for consideration of: $3.5 billion in Dana plc stock (133 million newly issued shares) $1.6 billion in cash Assumption of certain pension liabilities (approximately $1.0 billion, net) Tran
Slide 68: History and Overview
J.P. Morgan Auto Conference August 8, 2017 Jonathan Collins Executive Vice President & Chief Financial Officer © Dana 2018 History and Overview
Slide 69: Dana & GKN: A Journey of Long-term Partnership
Dana & GKN: A Journey of Long-term Partnership Strong cultural fit and long history together GUEST, KEEN & NETTLEFOLDS Dowlais Ironworks 1954 1759 1902 1904 1983 2018 1995 2011 1999 2002 plc Discussions Begin 7 Joint Ventures 3 Acquisitions by Dana 4 Acquisitions by GKN Global Transaction History 20
Slide 70: GKN Driveline Snapshot
© Dana 2018 $ 2017 sales: $7.0 billion1 61 Manufacturing Locations in 23 countries 5 R&D Centers 1,680 Patents & Applications ~35,000 people 22 Customer Recognitions in 2017 Founded in 1966 Snapshot 1Inclusive of pro rata share of joint ventures.
Slide 71: Complete Driveline Systems Offering
Complete Driveline Systems Offering Front Sideshaft Power Transfer Unit Disconnect CountertrackTM Jointed Propshaft CountertrackTM Joint & Face Spline Two-piece Propshaft Rear Sideshaft CrosstrackTM Propshaft Joint Electronic Torque Vectoring eTransmission eAxle ECO2 Twinster® Limited Slip Different
Slide 72: Strategy and Execution
J.P. Morgan Auto Conference August 8, 2017 Jonathan Collins Executive Vice President & Chief Financial Officer © Dana 2018 Strategy and Execution
Slide 73: Compelling Strategic Combination
Compelling Strategic Combination Scaling the Portfolio Completing the Platform Delivering Value Leading Electrification
Slide 74: Strategic Fit
Strategic Fit Increasing content with Dana existing customers Adding key light- vehicle customers Increasing platforms served Increased penetration in high-growth markets Unparalleled China presence Balanced global footprint Adding world-class engineering capabilities Adding all-wheel-drive capabili
Slide 75: Proven Acquisition Capability
Proven Acquisition Capability 2016 2017 2015 2018 Proven record of accretive acquisitions and successful integrations Transformational Tuck-in
Slide 76: Leadership Driving Transformation
Leadership Driving Transformation ($ in millions) CEO Kamsickas CFO Collins Join Dana Sales EBITDA Margin
Slide 77: GKN Driveline Highlights
J.P. Morgan Auto Conference August 8, 2017 Jonathan Collins Executive Vice President & Chief Financial Officer © Dana 2018 GKN Driveline Highlights
Slide 78: A Leading Provider of eDrive Systems
A Leading Provider of eDrive Systems... Pioneer in Electric Driveline Systems eDrive Offerings 2015 Winner – Two-Speed eAxle – BMW 2016 Winner – VL3 Driveshaft System – BMW 2017 Winner – Volvo eAxle Recent Awards Illustrative Automotive Platforms Battery Electric Plug-in Hybrid Full Hybrid Mild Hybr
Slide 79: With Growing Content per Vehicle
… With Growing Content per Vehicle… Front-Wheel-Drive (FWD) Internal Combustion Engine All-Wheel-Drive (AWD) Internal Combustion Engine FWD – AWD Battery Electric ~10x ~2x Gearbox Motor Inverter Software / Controls
Slide 80: The Right Product for Every Vehicle Architecture
The Right Product for Every Vehicle Architecture … Poised for Exponential Growth… BEV 88 101 110 (units in millions) Source: IHS. Hybrid transmissions eAxles Integrated eDrive modules Optimized AWD drivetrains ICE PHEV HEV BEV
Slide 81: With an Exceptional Presence in China
…With an Exceptional Presence in China 2017-2025 CAGR: >40% (units in millions) 3.0 30 years of experience and growth in China Over $1.3 billion in sales 1st western Tier 1 automotive components supplier in China Shanghai Driveline Systems joint venture, established in 1988 with HUAYU Automotive Str
Slide 82: Combination Rationale
J.P. Morgan Auto Conference August 8, 2017 Jonathan Collins Executive Vice President & Chief Financial Officer © Dana 2018 Combination Rationale
Slide 83: Unique Strategic Combination
Unique Strategic Combination Combined sales of $14.2 billion Leadership positions across all three mobility markets World-class management team with deep industry expertise Scaling the Portfolio Leading eDrive systems innovator Double content in shift to EV Significant market growth Core technology
Slide 84: A Global Leader in Drive Systems
A Global Leader in Drive Systems(1) Note:GKN Driveline financials figures converted from GBP to USD at 1.287 GBP/USD. 1Based on 2017 sales figures. Scaling Up to be a Global Leader Leading provider of drive systems across all 3 major mobility markets Creates the largest driveline supplier in the wor
Slide 85: Most Comprehensive eDrive Offering
Most Comprehensive eDrive Offering… GKN Electric Driveline Capabilities Dana Electric Driveline Capabilities Select Vehicles Sports Cars CUV/SUV Dana and GKN’s electric-vehicle capabilities and end markets are highly complementary City Delivery Freight Truck Transit Bus Gross Vehicle Weight Continuu
Slide 86: With Significant CPV Increase
…With Significant CPV Increase Internal Combustion Engine Electric Trucks Buses Construction ~2x ~2x ~1x
Slide 87: Diversified Business Mix
Diversified Business Mix… = Ë = Ë Note:Based on 2017 sales figures, inclusive of GKN’s pro rata share of joint ventures. GBP converted to USD at a rate of 1.287. Dana / GKN Driveline Dana GKN Driveline Balanced End- Market Mix Global Coverage of All Major Customers GM 8%
Slide 88: With a More Complete Product Offering
…With a More Complete Product Offering ~ ~ ü ü ü ü ~ ~ ~ ~ ü ü ü ü ~ ~ ü ü ~ ~ ü ü ü ü Mass transit Agriculture AWD FWD RWD 4WD Commercial Construction ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü Competitor A Competitor B Competitor C Light Vehicle Commercial Vehicle Off-Highway + ✗ ✗ ✗ ✗ ✗ ✗ ✗
Slide 89: Balanced Geographic Presence
Dana GKN Driveline Dana / GKN Driveline Dana GKN Driveline Legend = Ë Balanced Geographic Presence … Note:Based on 2017 sales figures, inclusive of GKN’s pro rata share of SDS joint venture. GBP converted to USD at a rate of 1.287. 1Inclusive of 100% of DDAC joint venture (Dana) and 100% of SDS join
Slide 90: With Industry Leading Joint Ventures in China
#1 #2 #3 #4 #5 #1 #2 #3 #4 #5 …With Industry Leading Joint Ventures in China Top Chinese Light Vehicle OEMs Top Chinese Commercial Vehicle OEMs Dana and GKN have joint ventures with the largest Chinese OEMs + = + = DDAC Source: IHS. OEM Supplier Joint Venture OEM Supplier Joint Venture
Slide 91: Significant Synergies ~$235 Million
Significant Synergies ~$235 Million Significant and achievable near-term cost synergy plan Procurement Purchasing scale benefits Align commercial terms Strategic supply partnerships Operating Efficiencies Integrate global footprint Lean manufacturing SG&A Leverage corporate structure Utilize common
Slide 92: Value Creation
J.P. Morgan Auto Conference August 8, 2017 Jonathan Collins Executive Vice President & Chief Financial Officer © Dana 2018 Value Creation
Slide 93: Attractive Financial Profile
Attractive Financial Profile Source: Dana financials based on reported financials. GKN Driveline financials on reported financials, including restatement of Off-Highway business per 1H 2017 financials GKN JV D&A based on trading profit %. Note: GBP converted to USD at 1.287. 1Adjusted for estimated
Slide 94: Strong Balance Sheet
Strong Balance Sheet Pro Forma Capitalization Committed debt financing in place No maturities until 2023 Robust liquidity approaching $2 billion Cash flow generation enables rapid deleveraging on path to investment grade credit metrics Pensions assumed from GKN largely “Pay-as-you-go”; UK plan fully
Slide 95: A Winning Proposition for All Stakeholders
A Winning Proposition for All Stakeholders Substantial synergies and significant value creation potential Transformational leadership team Dana has increased shareholder value by more than 130% over the past two years Best-in-class global governance OEMs prefer working with suppliers they trust and
Slide 96: Unique Strategic Combination
Unique Strategic Combination Scaling the Portfolio Completing the Platform Delivering Value Leading Electrification
Slide 97: Accelerating Electrified Mobility Growing Through Transformation Executing Enterprise Strategy Increasing Shareholder…
Accelerating Electrified Mobility Growing Through Transformation Executing Enterprise Strategy Increasing Shareholder Value
Slide 98: Appendix
Appendix
Slide 99: Adjusted EBITDA non-GAAP definition
The preceding slides refer to Adjusted EBITDA, a non-GAAP financial measure which we have defined as net income before interest, taxes, depreciation, amortization, equity grant expense, restructuring expense and other adjustments not related to our core operations (gain/loss on debt extinguishment,
Slide 100: Synergy Information
The information regarding synergies and similar information elsewhere in this presentation relate to the synergies being targeted by Dana following the consummation of the transactions. The estimates and forward-looking statements are necessarily speculative in nature and it can be expected that som
Slide 101: Pecpole Finding of Octler Mag?
Pecpole Finding of Octler Mag?