Dana Incorporated · NYSE:DAN
Dana — Q3 2008 Earnings Presentation
29 slides from Dana's earnings presentation, Nov 6, 2008
Slide 1: Third-Quarter 2008 Earnings Conference Call
November 6, 2008 Dana Holding Corporation Third-Quarter 2008 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 Steve Superits Vice President - Investment Management & Investor Relations Update on Key Issues John Devine and Initiatives Executive Chairman Quarterly Financial Review Jim Yost Chief Financial Officer Q&A Session All
Slide 5: Update on Key Issues
Update on Key Issues Difficult third quarter because of peaking steel prices and depressed North American production volumes. Additional restructuring planned: Now planning up to 10 plant closures in 2009-2010 Hourly and salaried workforce reductions will increase from 3,000 to 5,000 in 2008 Good pr
Slide 6: Management Team
Management Team Continue to attract talent to the organization Mark Wallace President, Operational Excellence ? Former President & CEO, Webasto Products, North America Ken Cao President, Asia Pacific ? Former President, Asia Pacific Operations, GKN Sinter Metals Jacqui Dedo Vice President, Strategy
Slide 7: Operational Excellence Recent Progress & Developments
Operational Excellence Recent Progress & Developments Reduce global footprint by up to 10 facilities, primarily in U.S. and Canada Most moves in 2009 with remainder in 2010 Anticipate consolidations and closures will result in one-time costs of $100 to $150M Actions anticipated to generate annual op
Slide 8: Steel Price Volatility
Steel Price Volatility Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 Actual 260 295 370 345 279 295 291 302 322 315 295 325 2008 YTD Actual 410 402 420 597 703 773 870 853 553 300 2008 YTD Actual Current Q4 '08 Projection: $300/Ton U.S. Scrap Steel ($ per ton) H1 Q3 Q4 Total Steel Increase $
Slide 9: North American Production (2008 vs. 2007)
North American Production (2008 vs. 2007) Light truck Light truck (32%) (21%) Light vehicle Light vehicle Light vehicle (16%) (13%) Full-size light truck Full-size light truck Full-size light truck (50%) (35%) Medium truck (5-7) Medium truck (5-7) Medium truck (5-7) (23%) (19%) Heavy truck (Class 8)
Slide 10: Key Priorities: 2008 Priorities Update/Recent Actions
Key Priorities: 2008 Priorities Update/Recent Actions Rebuild the Team Jump-Start Operations Address Strategic Issues Financial Performance & Plans Operational Excellence President Asia Pacific President Strategy & Business Development V.P. Manufacturing talent Operational Excellence - Focus on cost
Slide 11: Quarterly Financial Review
Quarterly Financial Review
Slide 12: 3Q08 Summary
3Q08 Summary ($ in Millions) 2008 2007 Change Sales $ 1,929 $ 2,130 $ (201) EBITDA 15 126 (111) Net loss (271)* (69) (202) Capital spend (72) (54) (18) Free cash flow (151) (143) (8) See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA t
Slide 13: Change in Sales (3Q 2008 vs. 2007)
Change in Sales (3Q 2008 vs. 2007, $ in Millions) 2007 2008 Volume/Mix Pricing Currency 2130 1929 -318 45 72 ($318)
Slide 14: Change in EBITDA (3Q 2008 vs. 2007)
Change in EBITDA (3Q 2008 vs. 2007, $ in Millions) 2007 2008 Volume/Mix Steel Cost Pricing Cost Saving/ Ops. Improv. Other (Primarily Exchange) 126 15 -75 -65 45 12 -28 ($75) ($65) ($28) See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBIT
Slide 15: Free Cash Flow (Nine Months)
Free Cash Flow (Nine Months, $ in Millions) 2008 2007 EBITDA EBITDA EBITDA EBITDA $ 290 $ 373 Working capital Working capital Working capital (172) (183) Capital spend Capital spend Capital spend (164) (148) Interest, net Interest, net Interest, net (67) (49) Income taxes Income taxes (102) (75) Res
Slide 16: Net Debt
Net Debt ($ in Millions) Cash - U.S. $ 519 International 488 Total cash 1,007 Term loan facility 1,419 Less OID (102) All other debt 70 Total debt 1,387 Net Debt $ 380 September 30, 2008
Slide 17: Global Liquidity
Global Liquidity ($ in Millions) Cash $ 1,007 Less: Deposits supporting obligations (87) Cash in less than wholly-owned subsidiaries (64) Available cash 856 Additional cash availability from: Lines of credit (U.S. and Europe) 455 Additional lines of credit supported by letters of credit from the Rev
Slide 18: Debt Covenants - Term Loan
Debt Covenants - Term Loan In compliance through 09/30/08 Need covenant changes for 12/31/08 compliance test Will launch amendment next week Expect completion in the next few weeks
Slide 19: Financial Outlook
Financial Outlook Calendar 2008 Outlook Sales ? $8.2 billion EBITDA ? $300 million Capital Spend ? $250 million Free Cash Flow Negative $300 to $350 million 2009 Targets Sales $7.2 to $7.3 billion EBITDA ? $150 million improvement over 2008 ^ Customer pricing ($200 to $250 million) ^ Cost savings ($
Slide 20: Q&A Session
Q&A Session (©2008 Dna Lined, his preserttn corto copied and corti tran of Oana Hong Corporation ants subsidies. Those ving acess tots werk ay rt copy 8 te soe te ftoratn Cotened wat fwd wien eahareain & Dans king Capers, Unaortad vse ey veh ose
Slide 21: DAN NYSE
DAN NYSE.
Slide 22: 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 23: Supplemental table ($ in Millions)
45 (c) Dana Limited ($ in Millions)
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47 (c) Dana Limited ($ in Millions)
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49 (c) Dana Limited ($ in Millions)
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51 (c) Dana Limited ($ in Millions)
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53 (c) Dana Limited ($ in Millions)
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55 (c) Dana Limited ($ in Millions)
Slide 29: Supplemental table ($ in Millions)
57 (c) Dana Limited ($ in Millions)