Dana Incorporated · NYSE:DAN
Dana — Q3 2009 Earnings Presentation
37 slides from Dana's earnings presentation, Nov 3, 2009
Slide 1: Third Quarter 2009 Earnings Conference Call
November 3, 2009 Dana Holding Corporation Third Quarter 2009 Earnings Conference Call
Slide 2: To Print This Presentation
To Print This Presentation ... Please visit: 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 Introduction Lillian Etzkorn Senior Director - Investor Relations Welcome John Devine Executive Chairman Update on Key Issues Jim Sweetnam and Initiatives President & CEO Quarterly Financial Jim Yost and Market Review Chief Financial Officer Jacqueline Dedo Senior Vice President - Strategy an
Slide 5: Third Quarter Summary
Third Quarter Summary Raised $250 million in new equity Strong liquidity and strengthened balance sheet following offering Continued improvement in EBITDA and Revenue Continued progress on right-sizing operations, cost reductions, and pricing Strong positive free cash flow Achieved third quarter fin
Slide 6: Third Quarter Business Highlights
Third Quarter Business Highlights Revenue increased sequentially across most markets Global industry outlook: Light vehicle market appears to be improving Commercial vehicle market has stabilized - slight improvement expected Off-Highway market expected to flatten Generating new business in all thre
Slide 7: Future Focus
Future Focus Continue operational improvements and restructuring Manufacturing footprint, supply chain Reduce complexity in the product and supply chain Focus Dana on growing profitably Reinvigorate product portfolios Pursue attractive business opportunities, primarily in Asia Pacific Seek geographi
Slide 8: Quarterly Financial Review
acini Quarterly Financial Review
Slide 9: Financial Summary
Financial Summary ($ in Millions) See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA to income (loss) from continuing operations before income taxes and free cash flow to cash from (used by) operations. Q3 2009 Sales $ 1,329 $ (600 ) $
Slide 10: Change in Sales (Q3 2009 vs. Q3 2008)
2008 2009 Volume/Mix Pricing Currency 1929 1329 -594 45 -51 ($600) Change in Sales (Q3 2009 vs. Q3 2008, $ in Millions)
Slide 11: Change in EBITDA (Q3 2009 vs. Q3 2008)
2008 2009 Volume/Mix Currency Pricing Cost Saving/ Other 47 101 -113 2 45 120 Change in EBITDA (Q3 2009 vs. Q3 2008, $ in Millions) See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA to income (loss) from continuing operations before i
Slide 12: Change in EBITDA (Q3 2009 vs. Q2 2009)
Change in EBITDA (Q3 2009 vs. Q2 2009, $ in Millions) Q2 Q3 Volume/Mix Currency Pricing Cost Saving/ Other 94 101 27 2 -15 -7 See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA to income (loss) from continuing operations before income
Slide 13: Change in EBITDA (YTD 2009 vs. 2008)
Change in EBITDA (YTD 2009 vs. 2008, $ in Millions) 2008 2009 Volume/Mix Currency Pricing Cost Saving/ Other 345 211 -518 -20 176 228 See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA to income (loss) from continuing operations before
Slide 14: Restructuring Actions Leading to Higher Margins
Restructuring Actions Leading to Higher Margins EBITDA as a Percent of Sales Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 East 0.058 0.07 0.024 0.003 0.013 0.079 0.076 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 See supplemental slides for comments regarding the presentation of non-G
Slide 15: Free Cash Flow
Free Cash Flow ($ in Millions) 1 - The changes in working capital relating to interest, taxes, and realignment are included in those respective categories See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA to income (loss) from continu
Slide 16: Inventory Improvement
Inventory Improvement Q4 2008 Q3 2009 Inventory 915 679 650 Inventory as % of Sales 60 % 51 % Days Supply ~ 90 ~ 55 Quarter End Inventory Balance ($Millions) At 12/31/08 Exchange Actual Q4 2008 Q3 2009 $265 See supplemental slides for comments regarding the presentation of non-GAAP measures and a re
Slide 17: Equity Issuance
Equity Issuance Announced intent to issue 27 million shares - expected $150 million equity raise Issued 39 million shares (including Greenshoe) at $6.75 - resulting in $250 million equity raise Proceeds of equity offering Further strengthens Dana's balance sheet and reduces potential risk through de
Slide 18: Net Debt
Net Debt ($ in Millions) September 30, 2009 Net debt improved $364 million in the third quarter Cash - U.S. $ 411 International 403 Total Cash $ 814 Term Loan Facility $ 1,021 Less OID (62 ) All other debt 37 Total Debt $ 996 Net Debt $ 182
Slide 19: Track Record of Improving Balance Sheet and Financial Flexibility
Track Record of Improving Balance Sheet and Financial Flexibility 9/30/09 Actual Cash & Equiv. $ 814 $ 832 Total Debt 996 982 Net Debt $ 182 $ 150 Net Debt / LTM EBITDA 0.85x 0.70x Memo: Net Debt / 3rd Qtr Annualized EBITDA 0.37x Pro Forma Capital Structure Net Debt 12/31/08 A 474 9/30/09 A 182 9/30
Slide 20: Strong Global Liquidity
Strong Global Liquidity ($ in Millions) 9/30/09 Cash $ 814 $ 832 Less: Deposits Supporting Obligations (30 ) (30 ) Available Cash $ 784 $ 802 Additional Cash Availability from: Lines of Credit (U.S. and Europe) 136 150 Total Global Liquidity $ 920 $ 952 Pro Forma * * Adjustment includes the exercise
Slide 21: Global Vehicle Production Dana Forecasts
Global Vehicle Production Dana Forecasts (Units in 000s) North America Light Vehicle 12,650 8,300 - 8,400 Medium Truck 157 95 - 100 Heavy Truck 196 114 - 117 Europe (including E. Europe) Light Vehicle 21,260 16,100 - 16,300 Medium/Heavy Truck 749 290 - 310 South America Light Vehicle 3,800 3,400 - 3
Slide 22: Revenues by Customer (Year-to-date September 2009)
Revenues by Customer (Year-to-date September 2009) Toyota Ford 0.202 Toyota 0.056 Paccar Inc 0.049 General Motors Corporation 0.046 Navistar International Corporation 0.041 Chrysler Group Llc 0.036 Daimler Ag 0.032 Deere & Company 0.029 Nissan 0.028 Hyundai 0.026 All Other 0.455 Ford GM Paccar Nissa
Slide 23: Net New Business by Region
2009 2010 2011 2012 N.America -4 -2 15 -30.98 S.America 13.04 100.65 100.52 67.81 Asia 12.95 38.17 84.95 96.95 Europe 55.72 88.45 110.59 126.53 Total $M: (22) 282 233 382 $ 875 Total Note: Cumulative business wins/losses for start of production 2008 and later expressed as incremental to base year 20
Slide 24: 2009 Outlook
2009 Outlook Right-size Operations Improve Operations Plant Performance Pricing Improvement Align Operations to Volume Maintain Adequate Liquidity & EBITDA Global workforce reductions of more than 5,800 in 2009 * +35% workforce reduction since 2007 Conversion cost improvement of $150M - $200M $160M
Slide 25: Summary
Summary Focus remains on achieving our 2009 plan: Right-size operations Improve profits and operational performance Maintain adequate liquidity and profits Focus Dana on growing profitably
Slide 26: Q&A Session
chain Q&A Session
Slide 27: DAN NYSE
DAN NYSE.
Slide 28: Supplemental Slides Non-GAAP Financial Information
Supplemental Slides Non-GAAP Financial Information In connection with Dana's emergence from bankruptcy on January 31, 2008 and the application of fresh start accounting in accordance with the provisions of the American Institute of Certified Public Accountants' Statement of Position 90-7, the post-e
Slide 29: Consolidated Statement of Operations - Three Months
29 (c) Dana Limited DANA HOLDING CORPORATION Consolidated Statement of Operations (Unaudited) For the Three Months Ended September, 2009 and 2008 (In millions, except per share amounts) DANA HOLDING CORPORATION Consolidated Statement of Operations (Unaudited) For the Three Months Ended September, 20
Slide 30: Consolidated Statement of Operations - Nine Months
30 (c) Dana Limited DANA HOLDING CORPORATION Consolidated Statement of Operations (Unaudited) For the Nine Months Ended September 30, 2009 and 2008 (In millions, except per share amounts) DANA HOLDING CORPORATION Consolidated Statement of Operations (Unaudited) For the Nine Months Ended September 30
Slide 31: Consolidated Balance Sheet
31 (c) Dana Limited DANA HOLDING CORPORATION Consolidated Balance Sheet (Unaudited) As of September, 2009 and December 31, 2008 (In millions) DANA HOLDING CORPORATION Consolidated Balance Sheet (Unaudited) As of September, 2009 and December 31, 2008 (In millions) September 30, December 31, Assets 20
Slide 32: Consolidated Statement of Cash Flows - Three Months
32 (c) Dana Limited DANA HOLDING CORPORATION Consolidated Statement of Cash Flows (Unaudited) For the Three Months Ended September 30, 2009 and 2008 (In millions) DANA HOLDING CORPORATION Consolidated Statement of Cash Flows (Unaudited) For the Three Months Ended September 30, 2009 and 2008 (In mill
Slide 33: Consolidated Statement of Cash Flows - Nine Months
33 (c) Dana Limited DANA HOLDING CORPORATION Consolidated Statement of Cash Flows (Unaudited) For the Nine Months Ended September 30, 2009 and 2008 (In millions) DANA HOLDING CORPORATION Consolidated Statement of Cash Flows (Unaudited) For the Nine Months Ended September 30, 2009 and 2008 (In millio
Slide 34: Segment Sales & EBITDA - Three Months
34 (c) Dana Limited DANA HOLDING CORPORATION Segment Sales & EBITDA For the Three Months Ended September, 2009 and 2008 (In millions) DANA HOLDING CORPORATION Segment Sales and EBITDA For the Three Months Ended September, 2009 and 2008 (In millions) Three Months Ended September 30, SALES 2009 2008 L
Slide 35: Segment Sales & EBITDA - Nine Months
35 (c) Dana Limited DANA HOLDING CORPORATION Segment Sales & EBITDA For the Nine Months Ended September 30, 2009 and 2008 (In millions) DANA HOLDING CORPORATION Segment Sales and EBITDA For the Nine Months Ended September 30, 2009 and 2008 (In millions) Dana Combined (1) Dana Prior Dana Eight Months
Slide 36: Segment EBITDA Reconciliation - Three Months
36 (c) Dana Limited DANA HOLDING CORPORATION Segment EBITDA Reconciliation (Unaudited) Reconciliation of Segment EBITDA to Income (Loss) from Continuing Operations Before Income Taxes For the Three Months Ended September 30, 2009 and 2008 (In millions) DANA HOLDING CORPORATION Segment EBITDA Reconci
Slide 37: Segment EBITDA Reconciliation - Nine Months
37 (c) Dana Limited DANA HOLDING CORPORATION Segment EBITDA Reconciliation (Unaudited) Reconciliation of Segment EBITDA to Income (Loss) from Continuing Operations Before Income Taxes For the Nine Months Ended September 30, 2009 and 2008 (In millions) DANA HOLDING CORPORATION Segment EBITDA Reconcil