Dana Incorporated · NYSE:DAN
Dana — Deutsche Bank Global Automotive Industry Conference (January 2011)
21 slides from Dana's conference presentation, Jan 12, 2011
Slide 1: Dana Holding Corporation – Deutsche Bank Global Automotive Industry Conference
Dana Holding Corporation Deutsche Bank Global Automotive Industry Conference John Devine Executive Chairman & Interim CEO January 12, 2011
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: 2010 Highlights
2010 Highlights Continuing positive momentum of delivering results 2010 Adjusted EBITDA expected to be about $550 Million on Revenues of about $6.1 Billion 2010 Adjusted EBITDA as % of Sales expected to be about 9% Free Cash Flow projected to be about $245 Million Continued progress improving operat
Slide 4: Dana's Turnaround since 2008
Dana's Turnaround since 2008... Management and Organization Built strong business and operational team Divested Structures business Increased Engineering resources and established regional engineering centers Combined 7 independent business lines into 2 businesses (Light and Heavy Vehicle) with sing
Slide 5: Strong Performance Across Three Markets
Strong Performance Across Three Markets Premier global provider of driveline and powertrain products with strong global brands Serving 3 major global growing markets by leveraging core competencies Off-Highway Commercial Automotive Segment Performance (Adjusted EBITDA Margins) Q3 2009 Q3 2010 Light
Slide 6: Expanding Presence in Asia Pacific with focus on India & China
Expanding Presence in Asia Pacific with focus on India & China India New India Gear Plant & Testing Center Establishing Engineering Technical Center in India China Agreement to increase ownership of DDAC JV to 50% Establishing Engineering Technical Center in China Growing the Industrial Driveshaft B
Slide 7: Dana to Increase Ownership in China Joint Venture
Dana to Increase Ownership in China Joint Venture Dana and our JV Partner Dongfeng Motor Co., Ltd. have reached an agreement to increase Dana's ownership in the Dongfeng Dana Axle Co., Ltd. (DDAC) joint venture from 4% to 50% Dana's cash payment will be approximately $120 million DDAC Profile Sole s
Slide 8: Our Focus... Margins and Growth
Our Focus... Margins and Growth Continue tenacity on operational improvements Reduce complexity in the product and supply chain Improved manufacturing footprint Grow the business Reinvigorate product portfolios Pursue attractive business opportunities and acquisitions globally Expect 50% growth over
Slide 9: 2010 Projected Financial Results
Revenue (2009 adjusted for sale of structures business) Up 5 - 10% ~$6.1 Bil Adjusted EBITDA About $450 million ~$550 Mil 1 Adjusted EBITDA as % of Sales 8 - 9 % ~9% Income from Continuing Operations Positive ~$115 Mil (before interest & income taxes) Capital Spending $135 - $185 million ~$120 Mil F
Slide 10: 2011 Economic Outlook
2011 Economic Outlook A two-speed world... NAFTA / Europe Sluggish economic recovery High ongoing unemployment Residential and commercial real estate issues Less inventory, more build to demand Favorable interest rates and improving financing options Asia / South America Asia generating global growt
Slide 11: Global Vehicle Production
Global Vehicle Production Dana Forecasts (Units in 000s) SOURCE: IHS Global Insight, ACT Research, Dana Estimates 2010 2011 2009 Estimate Outlook Expected Dana Market Growth of about 10% North America Light Vehicle (Total) 8,550 11,900 12,300-12,900 Light Truck (excl. CUV/Minivan) 2,330 3,500 3,500-
Slide 12: Several Growth Drivers
Several Growth Drivers Market Growth Strong recovery anticipated early in cycle, tapering to more "normal" market growth ~5% CAGR for Dana global businesses (2011 - 2015) 2010 Net New Business $846 million (cumulative 2010 - 2014) Additional Growth Initiatives Future net new business Aftermarket gro
Slide 13: Dana Growth - Significant Opportunities
2010 2011 2012 2013 2014 2015 2010 Base 5869 5869 5869 5869 5869 5869 2010 Growth 47 135 198 229 236 236 2011 Growth 27 106 160 211 246 Aftermarket Growth 0 70 145 245 245 245 New Inititatives 0 440 702 799 909 1030 Dana Growth - Significant Opportunities (Excludes Market, Pricing & Structures) Tota
Slide 14: Opportunities & Headwinds in 2011
Opportunities & Headwinds in 2011 Opportunities Improving economic and market conditions Cost reductions (+$50 million) Headwinds Commodity costs / supplier constraints Added engineering cost to support product development Added resources to support growth initiatives (Asia Pacific, Aftermarket, etc
Slide 15: 2011 Financial Targets
Revenue Up 10%+ (vs. 2010) Adjusted EBITDA $675 - 700 Mil Adjusted EBITDA as % of Sales 10%+ Diluted Adjusted EPS $1.30 - $1.40 Capital Spending $200 - 250 Mil Free Cash Flow >$100 Mil 2011 Financial Targets Plan See appendix for comments regarding the presentation of non-GAAP measures
Slide 16: Restructuring Actions Continuing to Drive Higher Margins
Restructuring Actions Continuing to Drive Higher Margins Full Year Adjusted EBITDA as a Percent of Sales 2008 2009 2010 2011 2013 East 0.043 0.062 0.09 0.101 0.12 West 31.6 North 43.9 See appendix for comments regarding the presentation of non-GAAP measures Revenue ($ mm) $8,095 $5,228 ~ $6.1 Bil 10
Slide 17: Diversity of Business Delivering Strong Financial Results
Diversity of Business Delivering Strong Financial Results North America 0.47 Europe 0.27 South America 0.14 Asia Pacific 0.12 North America 0.41 Europe 0.25 South America 0.15 Asia Pacific 0.2 2010 Full Year Revenue 2015 Revenue Projection Diverse Regional Footprint Light Vehicle Driveline 0.43 Powe
Slide 18: Summary
Summary Beat our 2010 Plan Our 2011 Plan continues to build on the strong foundation and focuses on Growth Continue tenacity on operational improvements Increased focus on growth Continue to improve margins and maintain strong balance sheet Build future strategies with focus on delivering shareholde
Slide 19: Q&A Session
Q&A Session
Slide 20: <Pana>
<Pana> DAN NYSE.
Slide 21: Non-GAAP Financial Information
Non-GAAP Financial Information The preceding slides refer to Adjusted 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 divestitures, im
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