Dana Incorporated · NYSE:DAN
Dana — Barclays Capital Third Annual Industrial Select Conference (February 2011)
20 slides from Dana's conference presentation, Feb 10, 2011
Slide 1: Barclays Capital Third Annual Industrial Select Conference
Dana Holding Corporation Barclays Capital Third Annual Industrial Select Conference James Yost Executive Vice President & CFO February 9, 2011
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: Company Snapshot
Dana is a Leading Supplier to Light Vehicle, Commercial Vehicle and Off-Highway OEMs Founded in 1904 Based in Maumee, Ohio 2010 sales: ~$6.1 billion Global customers and operations in 26 countries North America (about 47%) Europe (about 27%) South America (about 14%) Asia Pacific (about 12%) 92 majo
Slide 4: 2010 Highlights
2010 Highlights Continuing positive momentum of delivering results 2010 Adjusted EBITDA expected to be about $550 Million on Revenues of about $6.1 Billion 2010 Adjusted EBITDA as % of Sales expected to be about 9% Free Cash Flow projected to be about $245 Million Continued progress improving operat
Slide 5: Strong Performance Across Three Markets
Strong Performance Across Three Markets Premier global provider of driveline and powertrain products with strong global brands Serving 3 major global growing markets by leveraging core competencies Off-Highway Commercial Automotive Segment Performance (Adjusted EBITDA Margins) Q3 2009 Q3 2010 Light
Slide 6: Expanding Presence in Asia Pacific with focus on India & China
Expanding Presence in Asia Pacific with focus on India & China India New India Gear Plant & Testing Center Establishing Engineering Technical Center in India China Agreement to increase ownership of DDAC JV to 50% Establishing Engineering Technical Center in China Growing the Industrial Driveshaft B
Slide 7: Growing Commercial Business in South America
Growing Commercial Business in South America Dana becomes the leading full driveline supplier in South American commercial vehicle market under new strategic agreement with SIFCO S.A. Dana will add truck and bus steer axles to its existing product offering of front and rear axles, driveshafts, and s
Slide 8: Our Focus... Margins and Growth
Our Focus... Margins and Growth Continue tenacity on operational improvements Reduce complexity in the product and supply chain Improved manufacturing footprint Grow the business Reinvigorate product portfolios Pursue attractive business opportunities and acquisitions globally Expect 50% growth over
Slide 9: 2010 Projected Financial Results
Revenue (2009 adjusted for sale of structures business) Up 5 - 10% ~$6.1 Bil Adjusted EBITDA About $450 million ~$550 Mil 1 Adjusted EBITDA as % of Sales 8 - 9 % ~9% Income from Continuing Operations Positive ~$115 Mil (before interest & income taxes) Capital Spending $135 - $185 million ~$120 Mil F
Slide 10: Global Vehicle Production
Global Vehicle Production Dana Forecasts (Units in 000s) SOURCE: IHS Global Insight, ACT Research, Dana Estimates 2010 2011 2009 Estimate Outlook Expected Dana Market Growth of about 10% North America Light Vehicle (Total) 8,550 11,900 12,300-12,900 Light Truck (excl. CUV/Minivan) 2,330 3,500 3,500-
Slide 11: Several Growth Drivers
Several Growth Drivers Market Growth Strong recovery anticipated early in cycle, tapering to more "normal" market growth ~5% CAGR for Dana global businesses (2011 - 2015) 2010 Net New Business $846 million (cumulative 2010 - 2014) Additional Growth Initiatives Future net new business Aftermarket gro
Slide 12: Dana Growth - Significant Opportunities
2010 2011 2012 2013 2014 2015 2010 Base 5869 5869 5869 5869 5869 5869 2010 Growth 47 135 198 229 236 236 2011 Growth 27 106 160 211 246 Aftermarket Growth 0 70 145 245 245 245 New Inititatives 0 440 702 799 909 1030 Dana Growth - Significant Opportunities (Excludes Market, Pricing & Structures) Tota
Slide 13: 2011 Financial Targets
Revenue Up 10%+ (vs. 2010) Adjusted EBITDA $675 - 700 Mil Adjusted EBITDA as % of Sales 10%+ Diluted Adjusted EPS $1.30 - $1.40 Capital Spending $200 - 250 Mil Free Cash Flow >$100 Mil 2011 Financial Targets Plan See appendix for comments regarding the presentation of non-GAAP measures As Presented
Slide 14: Strengthening Balance Sheet
Refinanced Senior Debt Replaced Term Loan with $750 million unsecured debt $400 million at 6.5%, due in 2019 $350 million at 6.75%, due 2021 Reduced Debt Eliminated financial covenants Commitments for a new 5-year $500 million revolving credit facility Credit Rating upgrades to BB- and B1 Made a vol
Slide 15: Restructuring Actions Continuing to Drive Higher Margins
Restructuring Actions Continuing to Drive Higher Margins Full Year Adjusted EBITDA as a Percent of Sales 2008 2009 2010 2011 2013 East 0.043 0.062 0.09 0.101 0.12 West 31.6 North 43.9 See appendix for comments regarding the presentation of non-GAAP measures Revenue ($ mm) $8,095 $5,228 ~ $6.1 Bil 10
Slide 16: Diversity of Business Delivering Strong Financial Results
Diversity of Business Delivering Strong Financial Results North America 0.47 Europe 0.27 South America 0.14 Asia Pacific 0.12 North America 0.41 Europe 0.24 South America 0.15 Asia Pacific 0.2 2010 Full Year Revenue 2015 Revenue Projection Diverse Regional Footprint Light Vehicle Driveline 0.43 Powe
Slide 17: Summary
Summary Beat our 2010 Plan Our 2011 Plan continues to build on the strong foundation and focuses on Growth Continue tenacity on operational improvements Increased focus on growth Continue to improve margins and maintain strong balance sheet Build future strategies with focus on delivering shareholde
Slide 18: Q&A Session
Q&A Session
Slide 19: <Pana>
<Pana> DAN NYSE.
Slide 20: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information The preceding slides refer to Adjusted EBITDA, which we've defined to be earnings before interest, taxes, depreciation, amortization, non-cash equity grant expense, restructuring expense and other nonrecurring items (gain/loss on debt extinguishment or divest
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