Dana Incorporated · NYSE:DAN
Dana — Merger or Acquisition (March 2018)
8 slides from Dana's merger presentation, Mar 19, 2018
Slide 1: Important Information for Investors and Stockholders
Important Information for Investors and Stockholders This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed transaction between Dana and GKN, an entity to be formed for th
Slide 2: Revised Dana Outlook
2 © Dana 2018 Revised Dana Outlook
Slide 3: Key Assumptions: Revised Foreign Currency, End-Market Demand, Acquisition Synergies
Acquisition Synergies Key Assumptions: Revised Foreign Currency End-Market Demand 1 2 3 Revising Euro rate assumption from 1.15 to approximately 1.25 March 8th, European Central Bank increased forecast from 1.17 to 1.23 Eurozone economic outlook has improved and stabilized Strong orders and releases
Slide 4: Market demand and synergy execution driving growth
Market demand and synergy execution driving growth 4% increase in sales vs. prior guidance due to currency translation, improving fundamentals in off-highway end markets driving increased customer demand Continued strong market demand for light and commercial vehicles Adjusted EBITDA margin guidance
Slide 5: 2018 FY Sales and Adj. EBITDA Changes
11.6% ~12.4% ~$200 Market ~$300 Backlog 2018 FY Sales and Adj. EBITDA Changes ~20% conversion Sales growth of 10% compared to last year driven by conversion of backlog and improving end market demand Acquisitions that closed in the first quarter of 2017, net of divestiture expected in 2018, are incr
Slide 6: Quarterly Margin Progression
Quarterly Margin Progression Quarterly Adjusted EBITDA Margin Seasonality of 2018 profitability expected to be comparable to prior years Q1 and Q4 typically generate lower quarterly EBITDA margins Q1 and Q4 expected to be below 12% margin in 2018 Peak margins expected to be achieved in Q2 and Q3 – m
Slide 7: 2018 FY Free Cash Flow Growth Drivers
2018 FY Free Cash Flow Growth Drivers Full-Year Changes from Prior Year Lower one-time costs as 2017 acquisition integration and restructuring actions are completed; pending acquisitions not reflected Cash tax increase includes the one-time tax impact of entity restructuring in a subsidiary Higher w
Slide 8: Adjusted EBITDA non-GAAP financial measure definition
The preceding slides refer to Adjusted EBITDA, a non-GAAP financial measure which we have defined as net income before interest, taxes, depreciation, amortization, equity grant expense, restructuring expense and other adjustments not related to our core operations (gain/loss on debt extinguishment,