Slide 1: 2023 Third-quarter Earnings Conference Call
October 27, 2023 2023 Third-quarter Earnings Conference Call “Versatility and Performance by Design”
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: Agenda
Agenda Craig Barber Senior Director, Investor Relations and Strategic Planning Introduction James Kamsickas Chairman and Chief Executive Officer Business Review Timothy Kraus Senior Vice President and Chief Financial Officer Financial Review © 2023 Dana
Slide 4: Company-wide transformation and execution driving profitable long-term growth
Company-wide transformation and execution driving profitable long-term growth Q3 Financial Results sales $2.7 billion $134M from prior year adjusted EBITDA $242 million $50M from prior year free cash flow $(5) million $82M from prior year diluted adjusted EPS $0.30 6¢ from prior year Highlights Oper
Slide 5: Operating Environment
Operating Environment Cost inflation moderating Pricing actions muting inflation impact Sequential improvement in customer production volatility Operational cost savings and efficiency gains benefiting margin Steel moderating compared to 2022 Expected to be profit tailwind Commodity recoveries level
Slide 6: Continued strong demand in heavy-vehicle markets
Continued strong demand in heavy-vehicle markets End-market Trends 2023 NA Class 8 and medium-duty production expected to be up ~7% compared to 2022 EU heavy-truck production outlook remains strong, up ~15% SA truck / bus market down ~30% India truck / bus market up ~2% NA production significantly i
Slide 7: 2023 Launch Update
>120 Program Launches All launches successful to-date 2023 Launch Update >70% Completed to-date Fully industrialized and ready >$2B Annual Sales From 4 of our largest programs
Slide 8: Financial Review
@ DAN LISTED NYSE Financial Review
Slide 9: 2023 Q3 Financial Results
See appendix for comments regarding the presentation of non-GAAP measures Sales growth in all segments driven by higher demand, pricing, and favorable currency translation partially offset by impact of UAW labor disruption at key customers Improved profit driven by lower net manufacturing costs and
Slide 10: 2023 Q3 Sales and Profit Changes
Organic growth driven by improved demand, pricing, and mix, partially offset by UAW strike at key customers Strong operational execution and improved efficiency in customer order patterns, partially offset by 2 weeks of strike impact Net cost inflation of $14M as customer recoveries partially offset
Slide 11: 2023 Q3 Free Cash Flow
2023 Q3 Free Cash Flow Higher profit offset by increased working capital requirements and higher capital investment Higher working capital requirements due to increased sales and higher launch cadence Higher capital spending to support new business backlog, replacement business, and electrification
Slide 12: 2023 FY Financial Guide
Sales Adjusted EBITDA Implied Profit Margin Free Cash Flow Diluted Adjusted EPS 2023 FY Financial Guide Sales remain strong due to our broad global customer base and multiple-market presence High end of guidance assumption is that UAW strike is resolved for all Detroit 3 customers as of October 31 L
Slide 13: Appendix
Appendix
Slide 14: 2023 Q3 Sales and Profit Change by Segment
2023 Q3 Sales and Profit Change by Segment © 2023 Dana
Slide 15: 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 9/30/2023 Year to Date 9/30/2023 Year to Date 9/30/2023 Year to Date 9/30/2023 * Includes sales to systems integ
Slide 16: Diluted Adjusted EPS
Diluted Adjusted EPS DANAINCORPORATED Attributable to the Diluted Adjusted EPS (Unaudited) i) For the Three Months Ended September 30, 2023 and 2022 (ia mitions, except per share amounts) Net income (loss) attributable tothe parent company ‘tems impacting income (loss) betore income taxes: ‘Amortiza
Slide 17: Segment Data
Segment Data DANA INCORPORATED Segment Sales and Segment EBITDA (Unaudited) For the Three Months Ended September 30, 2023 and 2022 Three Months Ended (ia millions) Sales Light Vehicle Commercial Vehicle Off-Highway Power Technologies Total Sales ‘Segment EBITDA Light Vehicle Commercial Vehicle Of Hi
Slide 18: Segment Data Continued
Segment Data Continued DANA INCORPORATED Adjusted @ DANA INCORPORATED For the Three Months Ended September 30, 2023 and 2022 (tn mitions) ‘Segment EBITDA Corporate expense and other items, net ‘Adjusted EBITDA Depreciation Amortization 'Non-service cost components of pension and OPEB costs, Impaimen
Slide 19: Cash Flow
Cash Flow DANA INCORPORATED @ of Net Cash 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 property, plant and equipment Free cash flow ByO
Slide 20: DANA
DANA
Slide 21: Non-GAAP Financial Information
Non-GAAP Financial Information 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 co