Dana Incorporated · NYSE:DAN
Dana — Q3 2024 Earnings Presentation
23 slides from Dana's earnings presentation, Oct 30, 2024
Slide 1: 2024 Third-Quarter Earnings Conference Call
Value Others | Inspire Innovation | Grow Responsibly | Win Together October 30, 2024 2024 Third-Quarter Earnings Conference Call
Slide 2: 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 about our industry and
Slide 3: Agenda
Craig Barber Senior Director, Investor Relations and Corporate Communications Introduction James Kamsickas Chairman and Chief Executive Officer Business Review Timothy Kraus Senior Vice President and Chief Financial Officer Financial Review Agenda
Slide 4: Q3 Financial Results Highlights
Q3 Financial Results Highlights sales $2.5 billion $193 million from prior year margin 9.4 percent adjusted EBITDA $232 million Key Highlights $10 million from prior year 30 bps from prior year Conversion on traditional organic sales supports full-year margin Variable and fixed improvements Further
Slide 5: Continuous Margin Improvement
Continuous Margin Improvement Differentiating customer satisfaction Company-wide efficiencies Overall business execution See appendix for comments regarding the presentation of non-GAAP measures. Year-Over-Year Adjusted EBITDA % First Quarter Second Quarter Third Quarter Driven by… In-house e-Capabi
Slide 6: Dana Operating Priorities
Dana Operating Priorities Lower Cost Structure Soft End-Market Demand 2025 Early Expectations 2024 End-Market Outlook Construction Mining Light Truck Heavy-Duty Truck Medium-Duty Truck Agriculture Softening Softening No Change Softening 2nd Half Softening 2nd Half Softening Market Compared to ‘23 Up
Slide 7: Lamborghini Revuelto
Lamborghini Revuelto Modular High-Performance Hybrid 8-Speed Dual-Clutch Transmission and Thermal Management
Slide 8: Financial Review
Financial Review
Slide 9: Q3 2024 Financial Results
Lower sales driven by weakening market demand for electric vehicles, commercial trucks, off-highway equipment, and certain light-truck programs, as well as currency impacts and lower commodity recoveries Increased production efficiency and company-wide cost improvement actions drove higher profitabi
Slide 10: 2024 Q3 Sales and Profit Changes
Lower organic sales driven by reduced demand, partially offset by new business and market share gains Company-wide cost improvement actions drove profit growth despite organic sales headwinds Business execution and production efficiency offsetting inflation Decreased demand for EVs driving lower sal
Slide 11: 2024 Q3 Free Cash Flow
2024 Q3 Free Cash Flow Higher cash taxes due to timing of payments and jurisdictional mix Working capital requirements increased primarily due higher inventory Reduced capital spending required to support new business backlog and replacement business due to a more normal launch cadence and timing of
Slide 12: 2024 FY Financial Guide
Sales Adjusted EBITDA Implied Profit Margin Free Cash Flow Diluted EPS Diluted Adjusted EPS 2024 FY Financial Guide Lower sales driven by lower end-market demand in 2nd half Weakening demand for electric vehicles driving lower sales compared to prior outlook Company-wide efficiency improvements and
Slide 13: 2024 FY Sales and Profit Changes
Organic growth impacted by lower end-market demand in 2nd half Margin benefiting from improved efficiencies and cost savings actions Positive profit contribution on EV sales offset by investment in new program development costs Translation of foreign currency expected to be slight headwind to sales
Slide 14: 2024 FY Free Cash Flow
2024 FY Free Cash Flow Maintaining full-year guidance due to lower capital spending Higher profit and lower capital investment requirements driving improvement over last year Increase in net interest payments due to higher rates and payment timing from refinancing 1 Includes costs associated with bu
Slide 15: Appendix
A p pend Ix @
Slide 16: 2024 Q3 Sales and Profit Change by Segment
See appendix for comments regarding the presentation of non-GAAP measures 10.3% 10.1% 6.3% 13.5% 11.9% Light Vehicle Drive Systems Commercial Vehicle Drive and Motion Systems Off-Highway Drive and Motion Systems Power Technologies Sales Adjusted EBITDA 10.3% 10.1% Sales Adjusted EBITDA 10.3% Sales A
Slide 17: Segment Profiles
Segment Profiles CUSTOMER SALES REGIONAL SALES Light Vehicle Drive Systems Commercial Vehicle Drive and Motion Systems Off-Highway Drive and Motion Systems Power Technologies Year to Date 9/30/2024 Year to Date 9/30/2024 Year to Date 9/30/2024 Year to Date 9/30/2024 * Includes sales to systems integ
Slide 18: Diluted Adjusted EPS
Diluted Adjusted EPS DANAINCORPORATED Attributable to the Attributabl uted Adjustod EPS (Unaudited) For the Three Months Ended September 30, 2024 and 2023, (lomitions, except per share amounts) Netincome attributable tothe parent company tems impacting income before income taxes: ‘Amortization Restr
Slide 19: Segment Data
Segment Data DANAINCORPORATED Segment Sales and Segment EBITDA (Unaudited) For the Three Months Ended September 30, 2024 and 2023 ‘Three Months Ended (in millions) September 30, 2024 2023 Sales Light Vehicle S$ 1033 $ 1,084 Commercial Vehicle Of Highway Power Technologies Total Sales Segment EBITDA
Slide 20: Segment Data Continued
Segment Data Continued DANAINCORPORATED (Unaudited) For the Three Months Ended September 30, 2024 and 2023 ‘Three Months Ended (la millions) tember 30, 2028 ‘Segment EBITDA Ss 23S (tae Corporate expense and other items, net “ ‘Adjusted EBITDA 232 22 Depreciation @7) (101) ‘Amortization 6) © 'Non-sen
Slide 21: Cash Flow
Cash Flow DANA INCORPORATED Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow (Unaudited) (In millions) Net cash provided by operating activities Purchases of property, plant and equipment Free cash flow (In millions) Net cash provided by operating activities Purchases of
Slide 22: Adjusted EBITDA definition
Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit costs and other adjustments not r
Slide 23: DANA
DANA