Slide 1: 2022 First-quarter Earnings Conference Call
2022 First-quarter Earnings Conference Call April 27, 2022 1904 Today
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
Agenda Introduction Craig Barber Senior Director, Investor Relations and Strategic Planning Business Review James Kamsickas Chairman and Chief Executive Officer Financial Review Timothy Kraus Senior Vice President and Chief Financial Officer
Slide 4: Business Highlights: 2022 First Quarter
Business Highlights: 2022 First Quarter See appendix for comments regarding the presentation of non-GAAP measures adjusted EBITDA $170 million diluted adjusted EPS $0.16 free cash flow $(237) million sales $2.5 billion $217M from prior year $64M from prior year $211M from prior year 50¢ from prior y
Slide 5: Market Conditions
Market Conditions Light Vehicle Off-Highway Commercial Vehicle Heavy-duty Markets * 2020 Dana sales including 100% of DDAC Joint Venture Market Volume Light-duty Market Inflation and commodity cost increases accelerating during this period of volatile demand 1st Quarter Impact 1st Quarter Impact Mar
Slide 6: Industry Recognition
Industry Recognition 2021 North American Supplier Performance Management (SPM) Achiever Award 2021 10 Parts Per Million (PPM) Quality Award Achieving Excellence Program Partner Level Recognition 2021 Overdrive Award
Slide 7: Innovation and Technological Leadership
Innovation and Technological Leadership Dana Leads Automotive News PACE Award Nomination List with Five Electrification Innovations Dana TM4™ high-performance inverter Metallic bipolar plates for fuel cell stacks Composite battery enclosure with integrated thermal management Electric rigid beam axle
Slide 8: Commercial Vehicle: Med-Duty Top Truck
Commercial Vehicle: Med-Duty Top Truck 2022 Ford® F-650/F-750 Spicer® driveline technologies: Spicer® S140 and Dana 060 Series drive axles D- and E-Series front steer axles SPL® 100 and SPL® 140 Series driveshafts 5/5 Finalists 2022 Med-Duty Top Trucks Dana has supplied the driveline for 9 of the la
Slide 9: Light Vehicle: Electrification New Business Win
Light Vehicle: Electrification New Business Win Dana vertically integrated complete e-Propulsion system >3x content per vehicle vs. traditional ICE program Dana selected as electrification partner with major light-vehicle OEM
Slide 10: Off-Highway: EV Growth Transformation
Off-Highway: EV Growth Transformation High-voltage Drive System – Port Equipment e-Mini Excavator Low-voltage Material Handling Lawn and Turf Care Access Equipment Motorsport / Recreational Low-voltage Inverter for Pump Transformational EV growth in new markets and increased content per vehicle Low-
Slide 11: Sustainable Social Impact e-Drive System
Sustainable Social Impact e-Drive System
Slide 12: Financial Review
Value Others | Inspire Innovation | Grow Responsibly | Win Together | Financial Review
Slide 13: 2022 Q1 Financial Results
2022 Q1 Financial Results Sales growth primarily due to demand recovery in the heavy-vehicle markets and recovery of commodity cost inflation Profit conversion on higher sales limited by inflation and commodity cost increases, as well as inefficiencies driven by customer supply chain constraints Low
Slide 14: 2022 Q1 Sales and Profit Changes
Organic growth driven by continued rebound in heavy-vehicle markets and cost recoveries, including commodities and inflationary costs Net cost inflation of ~$45 million and operational inefficiencies driving negative organic conversion Investment in growing EV business offsetting profit contribution
Slide 15: 2022 Q1 Free Cash Flow
2022 Q1 Free Cash Flow Cash flow use driven by lower earnings, higher working capital requirements, and higher capital investment Higher cash interest in this year’s Q1 due to revised timing of payments Timing of payments and jurisdictional mix driving higher cash taxes this year Increased working c
Slide 16: 2022 Market Dynamics
Legend: = 2022 Market Impact to Dana 2022 Market Dynamics Impact Transportation costs Commodity costs Semiconductor shortage OEM production disruptions caused by shortage of semiconductors and other key components likely to continue through the first half of the year Transportation costs have contin
Slide 17: 2022 FY Financial Guide
Sales Adjusted EBITDA Implied Profit Margin Implied FCF Margin Diluted Adjusted EPS 2022 FY Financial Guide Expecting sales growth supported by strong end-market demand and cost recovery actions Profit margin headwinds from elevated commodity and other input costs now expected to continue for the re
Slide 18: 2022 FY Sales and Profit Changes
End-market growth driven by increased production in light vehicles and continued recovery in heavy-vehicle markets Net cost inflation of ~$120 million in 2022, along with operational inefficiencies driving reduced organic conversion Continued inefficiencies driven by customer production disruptions,
Slide 19: 2022 FY Free Cash Flow Outlook
2022 FY Free Cash Flow Outlook Free cash flow to improve as temporarily elevated inventory levels normalize Managing inventory requirements for uneven customer demand patterns Working with customers and suppliers to better align terms with market conditions 1 Includes costs associated with business
Slide 20: 2022 Guidance Drivers of Growth
Drivers of growth Outlook sales ~$10.1 billion adjusted EBITDA ~$820 margin ~8.1 free cash flow ~$215 ~$425M increase from prior year million ~13% increase from prior year ~3% increase from prior year % Improving OEM production cadence and continued strong end-market demand, new business backlog, an
Slide 21: Appendix
Appendix
Slide 22: 2022 Q1 Sales and Profit Change by Segment
2022 Q1 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
Slide 23: Segment Profiles
Segment Profiles Customer Sales Regional Sales $ Millions $ Millions $ Millions Light Vehicle Drive Systems Year to Date 3/31/2022 Commercial Vehicle Drive and Motion Systems Year to Date 3/31/2022 Off-Highway Drive and Motion Systems Year to Date 3/31/2022 Power Technologies Year to Date 3/31/2022
Slide 24: Diluted Adjusted EPS
Diluted Adjusted EPS Y pana INCORPORATED ition of Net Income (Loss) Attributable to the Parent Company to Adjusted Net Income oss) Attributable to the Parent Company and Diluted Adjusted EPS (Una For the Three Months Ended March 31, 2022 and 2021 (in millions, except per share amounts) ‘Three Months
Slide 25: Segment Data
Segment Data ~~ DANA INCORPORATED DANA INCORPORATED Segment Sales and Segment EBITDA (Unaudited) Recon ion of Segment and Adjusted EBITDA to Net Income (Unaudited) For the Three Months Ended March 31, 2022 and 2021 For the Three Months Ended March 31, 2022 and 2021 Three Months Ended Three Months En
Slide 26: Cash Flow
Cash Flow a DANA INCORPORATED Reconciliation of Net Cash Provided By (Used In) Operating Activities to Free Cash Flow and Adjusted Free Cash Flow (Unaudited) Three Months Ended (In millions) March 31, 2022 2021 Net cash provided by (used in) operating activities $ (121) $ 27 Purchase of property, pl
Slide 27: Balanced End- Market Presence Global Scale & Financial Strength Technologies for Tomorrow Complete Electric
Balanced End- Market Presence Global Scale & Financial Strength Technologies for Tomorrow Complete Electric Product Portfolio
Slide 28: 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