Dana Incorporated · NYSE:DAN
Dana — FY2007 Earnings Presentation
22 slides from Dana's earnings presentation, Mar 19, 2008
Slide 1: Fourth-Quarter & Full-Year 2007 Conference Call
Dana Holding Corporation Fourth-Quarter & Full-Year 2007 Conference Call March 19, 2008
Slide 2: To Print This Presentation
To Print This Presentation ... Please go to: www.dana.com/investors
Slide 3: 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 4: Agenda
Agenda Emergence Summary John Devine Executive Chairman & Acting CEO Company Overview John Devine 2007 Financial Review Ken Hiltz Chief Financial Officer Looking Forward John Devine Q&A Session
Slide 5: Emergence Summary
Emergence Summary Entered Chapter 11 Reorganization on March 3, 2006; emerged on January 31, 2008 Achieved Four Key Initiatives: Improve product profitability ($180 million) Obtained pricing improvements from customers Reduce labor and benefit cost ($170 million) Established VEBAs, wage and benefit
Slide 6: Emergence Summary (Continued)
Emergence Summary Restructuring/repositioning Divestitures: Engine Hard Parts, Fluid Products, Coupled Products, Pump Products, Trailer Axle, GETRAG, DCC Headcount reduction 2005 - 44,000 2006 - 45,000 2007 - 35,000 Capital structure/financing Centerbridge Investment Agreement Forged innovative part
Slide 7: Business Overview
Business Overview Three primary markets (% of 2007 sales) Commercial Vehicle (14%) Medium and heavy-duty trucks, buses, and other commercial vehicles Automotive (68%) Passenger cars, light trucks, vans, SUVs, and CUVs Construction machinery and leisure/utility vehicles and outdoor power, agricultura
Slide 8: Product Mix
Product Mix Axle Driveshaft Structures Sealing Thermal Other 23 4 - - - - - - 5 32 30 14 13 8 3 - - - - 68 53 18 13 8 3 5 100 ASG HVSG Total 2007 Percent of Sales
Slide 9: Key Customers
Key Customers 2007 2006 2005 23 23 26 7 10 11 6 5 4 19 23 21 Percent of Sales
Slide 10: Geographic Information
Geographic Information Net Sales by Country ($ in millions) United States $4,000 Italy 832 Canada 536 Brazil 531 Germany 462 Mexico 255 Australia 250 All Others* 1,855 TOTAL $8,721 * Combined Net Sales by Region ($ in millions) N. America $4,791 Europe 2,256 S. America 1,007 Asia Pacific 667 TOTAL $
Slide 11: Income Statement
Income Statement 2007 2006 2005 Sales $ 8,721 $ 8,504 $ 8,611 Cost of sales (8,231) (8,166) (8,205) SG&A (365) (419) (500) Other income, net 162 140 88 Income (loss) from continuing operations before realignment, impairment, interest, reorganization items, and income taxes 287 59 (6) Realignment cha
Slide 12: Income Statement and Expected Annual Reorganization Benefits
Income Statement 2007 2006 2005 Sales $ 8,721 $ 8,504 $ 8,611 Cost of sales (8,231) (8,166) (8,205) SG&A (365) (419) (500) Other income, net 162 140 88 Income (loss) from continuing operations before realignment, impairment, interest, reorganization items, and income taxes $ 287 $ 59 $ (6) ($ in mil
Slide 13: Segment Sales & Profit
Segment Sales & Profit 2007 2006 2005 2007 2006 2005 Light Axle $ 2,627 $ 2,230 $ 2,448 $ 21 $ (43) $ 9 Driveshaft 1,200 1,124 1,088 64 80 99 Structures 1,069 1,174 1,288 43 (15) 2 Sealing 720 679 661 46 49 56 Thermal 291 283 312 11 26 58 Commercial Vehicle 1,235 1,683 1,540 27 25 (20) Off Highway 1
Slide 14: Fourth Quarter 2007 vs. 2006
Fourth Quarter* 2007 2006 Sales $2,157 $1,998 Income (loss) from continuing operations before realignment, impairment, reorganization items, interest, and taxes 79 (37) Realignment and impairment (135) (142) Reorganization items (102) (29) Loss from continuing operations (228) (210) Loss from discon
Slide 15: Cash Flow
Cash Flow 2007 2006 2005 Net loss $ (551) $ (739) $ (1,605) Depreciation and amortization 279 278 310 Other non-cash charges - impairment, reorganization, pension settlement and net losses on divestitures 345 457 515 Deferred income taxes (29) (41) 751 OPEB and VEBA payments (98) - - - - - - Working
Slide 16: Impact of Reorganization & Related Items
Cash Flow 2007 2006 2005 Cash provided by (used for) operations $(52) $ 52 $(216) Reorganization and related items: Reorganization 141 118 - - - VEBA payments 27 - - - - - - U.K. pension settlement 93 - - - - - - $209 $170 $ (216) ($ in millions) 16 (c) 2008 Dana Limited. Impact of Reorganization &
Slide 17: Pro Forma Post-Emergence Liquidity
Pro Forma Post-Emergence Liquidity Cash at December 31, 2007 $ 1,271 Less - deposits supporting obligations (111) Less - cash in less than wholly-owned subsidiaries (88) Available cash at Dec. 31, 2007 - before emergence impact 1,072 Additional cash availability provided at emergence - Exit Facility
Slide 18: Pro Forma Post-Emergence Balance Sheet
Pro Forma Post-Emergence Balance Sheet Assets - Cash and other current assets $ 3,792 $ 853 $ 138 $ 4,783 Property, plant, and equipment 1,763 - - - 271 2,034 Intangibles 1 - - - 683 684 Goodwill 349 - - - (170) 179 Other non-current assets 520 39 (39) 520 Total assets $ 6,425 $ 892 $ 883 $ 8,200 Li
Slide 19: Our Focus in 2008
Our Focus in 2008 Rebuild the Team New Board of Directors Search for new CEO and CFO Aggressive pursuit of talent where necessary Jump-Start Operations Build on 2007 changes in manufacturing footprint and labor agreements Focus on driving consistent metrics, benchmarking, and execution Cost opportun
Slide 20: Questions?
Questions?
Slide 21: Our New Beginning
Our New Beginning <Bana>
Slide 22: Q4 Income Statement
Q4 Income Statement 2007 2006 Sales $2,157 $1,998 Cost of sales (2,030) (1,957) SG&A (102) (104) Other income, net 54 26 Income (loss) from continuing operations before realignment, impairment, interest, reorganization items, and income taxes 79 (37) Realignment charges (46) (88) Impairment charges