Dana Incorporated · NYSE:DAN
Dana — Investor Presentation (December 2009)
21 slides from Dana's investor presentation, Dec 17, 2009
Slide 1: Dana Holding Corporation 2010 Outlook
December 17, 2009 Dana Holding Corporation 2010 Outlook
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 Introduction Lillian Etzkorn Senior Director - Investor Relations Welcome John Devine Executive Chairman Update on Key Issues, Market Jim Sweetnam Review, and 2010 Outlook President & CEO Jim Yost Chief Financial Officer Jacqueline Dedo Senior Vice President - Strategy and Business Developmen
Slide 4: Completing Major Restructuring
Completing Major Restructuring Replaced prior management with strong business and operational team Revitalized operations through new management and Dana Operating System Reduced global headcount by 35% since end of 2007 Improved margins through pricing and lower costs, despite lower volumes Continu
Slide 5: Product Innovation Highlights
Product Innovation Highlights Focus on improving fuel economy for driveline products Reduced mass Improved friction, spin losses Higher power density Creating Driveline Systems which feature enhanced fuel economy
Slide 6: New Product Introductions
New Product Introductions Launching industry's first eco-friendly cylinder-head cover, providing significant cost and environmental benefits - used on the 2010 Ford Fusion and 2010 Ford Escape vehicles Jointly developed all-new Thermoplastic oil pan for the 2011 F-Series Super Duty Trucks Developed
Slide 7: 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 8: Economic Outlook
Economic Outlook After three quarters of contraction, the world economy began to recover in the second quarter of 2009 Leading indicators are improving across regions - slow recovery The global inventory correction is winding down Financial markets have stabilized, but credit remains tight The speed
Slide 9: Global Market Outlook
Global Market Outlook Light Vehicle Market appears to be improving U.S. Dealer inventory of platforms key to Dana may soften near-term production levels Production on platforms Dana supports expected to modestly increase (less than the overall market improvement) Commercial Vehicle Market has stabil
Slide 10: Global Vehicle Production Forecasts
Global Vehicle Production Dana Forecasts (Units in 000s) North America Light Vehicle (Total) 12,650 8,500 - 8,600 10,100 - 10,500 Light Truck (excl. CUV/Minivan) 3,330 2,320 - 2,360 2,575 - 2,700 Medium Truck 157 95 - 98 106 - 129 Heavy Truck 196 114 - 117 125 - 151 Europe (including E. Europe) Ligh
Slide 11: Our Top North American Light Vehicle Platforms
Our Top North American Light Vehicle Platforms * Large Pick-ups Ford F-250 / F-350 SUV / Crossover Jeep Wrangler Ford Escape / Mercury Mariner / Mazda Tribute Jeep Liberty / Dodge Nitro Vans Ford E-Series Passenger Cars Ford Fusion / Mercury Milan / Lincoln MKZ * Based on year-to-date Driveline Reve
Slide 12: Opportunities & Headwinds in 2010
Opportunities & Headwinds in 2010 Opportunities Improving economic and market conditions Full-year impact of 2009 aggressive cost reductions and resizing of operations and further cost reductions ($75 - $100 million year-over year favorable EBITDA impact) Further improvements to working capital - co
Slide 13: 2010 Financial Targets Compared with 2009
2010 Financial Targets Compared with 2009 Revenue Up 5 - 10% Pricing About flat Conversion Cost Reductions $75 - $100 million Target Income from Continuing Operations (before interest & income taxes) Positive EBITDA About $500 million Free Cash Flow Positive Capital Spending $150 - $200 million Full
Slide 14: Improving Margins
Improving Margins EBITDA as a Percent of Sales * Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 2010 2011 East 0.058 0.07 0.024 0.003 0.013 0.079 0.076 0.09 0.1 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 See supplemental slide for comments regarding the presentation of non-GAAP financ
Slide 15: Sale of Structural Products Business
Sale of Structural Products Business Divestiture of Dana's ongoing global Structures business to Metalsa Full perimeter frames for light trucks; frames and side rails for trucks and buses 11 Facilities in 6 countries (U.S., South America, Australia, UK) Approximately 2,800 people Longview, Texas pla
Slide 16: Sale of Structural Products Business: Pro Forma Impact
Revenue $ 625 - $ 690 million EBITDA $ 55 - $ 60 million Free Cash Flow $ 35 - $ 40 million Capital Spending About $ 20 million Transaction Value * $ 150 million * Dana will recognize a pre-tax loss of $150 - $180 million (primarily non-cash), most of which will be recognized in the 4th Quarter 2009
Slide 17: 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 18: Summary
Summary Managed through difficult environment in 2009 Benefiting from the significant operational improvement Growing net new business Continued focus on the "basics", but increasing efforts on product development and future growth opportunities
Slide 19: Q&A Session
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Slide 20: Supplemental Slide: Non-GAAP Financial Information
Supplemental Slide Non-GAAP Financial Information The preceding slides refer to 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
Slide 21: DAN NYSE
DAN NYSE