Slide 1: 2023 Second-quarter Earnings Conference Call
July 28, 2023 2023 Second-quarter Earnings Conference Call “Driving Customer Satisfaction and Technology Leadership”
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 Q2 Financial Results sales $2.7 billion $162M from prior year adjusted EBITDA $243 million $81M from prior year free cash flow $134 million $33M from prior year diluted adjusted EPS $0.37 29¢ from prior year Highlights Ope
Slide 5: Operating Environment
Operating Environment Cost inflation continues: COLAs driving labor costs higher Higher energy costs in Europe Pricing actions muting inflation impact Sequential improvement in customer production volatility seen late in Q2 OEM customers are indicating that their supply chains are improving Steel mo
Slide 6: Electric Light Truck for Major North American OEM
Electric Light Truck for Major North American OEM Rigid Beam e-Axle Representative product image
Slide 7: e-Transmissions Across All Markets
e-Transmissions Across All Markets Light Vehicle Off Highway Commercial Vehicle Zero-6 e-Transmission Introducing e-Transmissions for Commercial Vehicle
Slide 8: Financial Review
@ DAN LISTED NYSE Financial Review
Slide 9: 2023 Q2 Financial Results
See appendix for comments regarding the presentation of non-GAAP measures Sales growth primarily due to increased demand and recovery of cost inflation, partially offset by currency headwinds Improved profit driven by lower net manufacturing costs, EV investment, and commodity costs Higher income ta
Slide 10: 2023 Q2 Sales and Profit Changes
Organic growth driven by improved demand, pricing, and mix Strong operational execution muting ongoing cost inefficiencies from customer order volatility Cost inflation offset by customer recoveries Timing of investment offsetting majority of profit growth in EV business Translation of foreign curre
Slide 11: 2023 Q2 Free Cash Flow
2023 Q2 Free Cash Flow Higher profit offset by increased working capital requirements and higher capital investment Higher cash interest due to higher interest rates and accelerated payment related to refinancing Higher working capital requirements due to increased sales and higher launch cadence Hi
Slide 12: 2023 FY Financial Guide
Sales Adjusted EBITDA Implied Profit Margin Free Cash Flow Diluted Adjusted EPS 2023 FY Financial Guide Sales growth supported by improved end-market demand, pricing actions, and market share gains Cost inefficiencies, driven by volatile customer production, and higher sales due to cost recoveries h
Slide 13: 2023 FY Sales and Profit Changes
Organic growth driven by strong sales, pricing, and market share gains Gross inflation and related recoveries are now expected to be lower than prior estimate; net profit impact from inflation remains the same, as cost recovery actions are expected to offset all but ~$50M of inflation headwind Conti
Slide 14: 2023 FY Free Cash Flow
2023 FY Free Cash Flow Positive free cash flow even with increased capital spending Working capital expected to be a modest source, despite sales increase, as efficiency gains from 2022 continue Higher capital spending to support new business backlog and EV programs 1 Includes costs associated with
Slide 15: Strengthened Balance Sheet
Debt Capital Source: Dana ($ in millions) Strengthened Balance Sheet Liquidity Cash Balance1 $484 M Revolver Capacity $1.1 B Q2 Liquidity ~$1.6 B 1Available cash and cash equivalents as of 6/30/23 New Euro Bond Redeemed $200M 2025 Bond Repaid & Extended Revolver $245M Ample liquidity for growth, pru
Slide 16: Appendix
Appendix
Slide 17: 2023 Q2 Sales and Profit Change by Segment
2023 Q2 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 18: 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 6/30/2023 Year to Date 6/30/2023 Year to Date 6/30/2023 Year to Date 6/30/2023 * Includes sales to systems integ
Slide 19: Diluted Adjusted EPS
Diluted Adjusted EPS DANAINCORPORATED DANAINCORPORATED iliation of Net Income Attributable to the Parent Company to Net Income Attributable to the ‘Adjusted Net Income Attributable to the Parent Company and Diluted Adjusted EPS (Unaudited) For the Three Months Ended June 30, 2023 and 2022 (tn mition
Slide 20: Segment Data
Segment Data DANA INCORPORATED Segment Sales and Segment EBITDA (Unaudited) For the Three Months Ended June 30, 2023 and 2022 (ia millions) Sales Light Vehicle Commercial Vehicle Off Highway Power Technologies Total Sales Segment EBITDA Light Vehicle Commercial Vehicle OftHighway Power Technologies
Slide 21: Segment Data Continued
Segment Data Continued DANA INCORPORATED Reconciliation of Segment and Adjusted EBITDA to Net Income For the Three Months Ended June 30, 2023 and 2022 (in millions) ‘Segment EBITDA Corporate expense and other items, net Non-senice cost components of pension and OPEB costs Restructuring charges, net
Slide 22: Cash Flow
Cash Flow @ DANA INCORPORATED Recon ‘ion of Net Cash Provided By Operating Activities to Free Cash Flow (Unaudited) Three Months Ended (in millions) June 30, 2023 2022 Net cash provided by operating activities $ 256 $ 257 Purchases of property, plant and equipment (122) (90) Free cash flow $134 «= $
Slide 23: DANA
DANA
Slide 24: 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