Dana Incorporated · NYSE:DAN
Dana — Q2 2009 Earnings Presentation
35 slides from Dana's earnings presentation, Aug 6, 2009
Slide 1: Second Quarter 2009 Earnings Conference Call
August 6, 2009 Dana Holding Corporation Second Quarter 2009 Earnings Conference Call
Slide 2: To Print This Presentation
To Print This Presentation ... Please visit: www.dana.com/investors
Slide 3: 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 4: Agenda
Agenda Introduction Lillian Etzkorn Senior Director - Investor Relations Update on Key Issues John Devine and Initiatives Chairman Jim Sweetnam President & CEO Quarterly Financial Jim Yost and Market Review Chief Financial Officer Jacqueline Dedo Senior Vice President - Strategy and Business Develop
Slide 5: Second Quarter Summary
Second Quarter Summary Results were improved compared with the first quarter - despite decline in revenue Good progress on right-sizing operations, cost reductions, and pricing Continued improvements in working capital and generated positive free cash flow Achieved second quarter financial covenants
Slide 6: Second Quarter Business Highlights
Second Quarter Business Highlights Revenue continues to be weak - about flat with first quarter Global industry outlook mixed: Light vehicle market appears to be improving Commercial vehicle market decline has stabilized Off-Highway market continues to weaken Generating new business in all three pro
Slide 7: Second Quarter Business Highlights (con't)
Second Quarter Business Highlights (con't) Global roll-out of Dana Operating System driving significant reduction in conversion costs: Achieved 30% management structure improvement $200+ million first-half inventory reduction Minimal supplier disruptions in volatile market Continued workforce reduct
Slide 8: Quarterly Financial Review
Quarterly Financial Review
Slide 9: Financial Summary
Financial Summary ($ in Millions) See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA to income (loss) from continuing operations before income taxes and free cash flow to cash from (used by) operations. Q2 2009 Sales $ 1,190 $ ( 1,143
Slide 10: Change in Sales (Q2 2009 vs. Q2 2008)
2008 2009 Volume/Mix Pricing Currency 2333 1190.2 -1106 60 -97 ($1,143) Change in Sales (Q2 2009 vs. Q2 2008, $ in Millions)
Slide 11: Change in EBITDA (Q2 2009 vs. Q2 2008)
Change in EBITDA (Q2 2009 vs. Q2 2008, $ in Millions) 2008 2009 Volume/Mix Currency Pricing Cost Saving/ Other 164 94 -205 -3 60 78 See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA to income (loss) from continuing operations before i
Slide 12: Change in EBITDA (Q2 2009 vs. Q1 2009)
Change in EBITDA (Q2 2009 vs. Q1 2009, $ in Millions) Q1 Q2 Volume/Mix Currency Pricing Cost Saving/ Other 16 94 -10 -3 -11 102 See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA to income (loss) from continuing operations before incom
Slide 13: Change in EBITDA (First Half 2009 vs. First Half 2008)
Change in EBITDA (First Half 2009 vs. First Half 2008, $ in Millions) 2008 2009 Volume/Mix Currency Pricing Cost Saving/ Other 298 110 -410 -22 131 113 See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA to income (loss) from continuing
Slide 14: Flexible Operations
2nd Qtr 2008 2nd Qtr 2009 Sales 100 49 Flexible Operations 2nd Qtr 2008 2nd Qtr 2009 Sales 100 51 Worldwide Employment 34,900 22,500 51% Reduction REVENUE 49% Reduction DIRECT LABOR COST
Slide 15: Free Cash Flow
Free Cash Flow ($ in Millions) 1 - The changes in working capital relating to interest, taxes, and realignment are included in those respective categories See supplemental slides for comments regarding the presentation of non-GAAP measures and a reconciliation of EBITDA to income (loss) from continu
Slide 16: Change in Working Capital
Change in Working Capital ($ in Millions) Q2 2009 Accounts Receivable $ 57 $ (25 ) $ 39 Inventory 93 148 217 Accounts Payable (63 ) (59 ) (251 ) Other 4 9 0 Working Capital $ 91 $ 73 $ 5 Actual vs. 2008 First Half Memo:
Slide 17: Debt Reduction
Debt Reduction Total debt at $1,099 million, down $129 million Term loan reduced by $125 million, using cash of $77 million Reduced debt by 10% in the second quarter
Slide 18: Net Debt
Net Debt ($ in Millions) June 30, 2009 Net debt improved $133 million in the second quarter Cash - U.S. $ 236 International 317 Total Cash $ 553 Term Loan Facility $ 1,137 Less OID ( 72 ) All other debt 34 Total Debt $ 1,099 Net Debt $ 546
Slide 19: Global Liquidity
Global Liquidity ($ in Millions) June 30, 2009 Cash $ 553 Less: Deposits supporting obligations ( 41 ) Available cash $ 512 Additional cash availability from: Lines of credit (U.S. and Europe) 152 Total global liquidity $ 664
Slide 20: Global Vehicle Production Dana Forecasts
Global Vehicle Production Dana Forecasts (Units in 000s) North America Light Vehicle 12,650 8,000 - 8,700 Medium Truck 157 101 - 109 Heavy Truck 196 104 - 121 Europe (including E. Europe) Light Vehicle 21,260 16,300 - 17,100 Medium/Heavy Truck 749 338 - 392 South America Light Vehicle 3,800 3,100 -
Slide 21: Net New Business (By Region)
Net New Business (By Region, $ in Millions) 2009 2010 2011 2012 N.America 30.66 27.42 36.15 39.89 S.America 34.78 104.34 111.27 112.06 Asia 17.01 40.98 63.96 71.71 Europe 53.01 80.78 111.46 138.24 Total $M: 134 362 194 384 $1,074 Total Note: Cumulative business wins/losses for start of production 20
Slide 22: 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 23: Summary
Summary Focus remains on achieving our 2009 plan: Right-size operations Improve profits and operational performance Maintain adequate liquidity and profits Continue strategic initiatives
Slide 24: Q&A Session
Q&A Session {©2000 Oana Lint. Ts protean cots copyrahed an one evamatn of Oana HolngCaperaon ante subucare. Thoe avng aces toi work
Slide 25: DAN NYSE
DAN NYSE
Slide 26: Supplemental Slides Non-GAAP Financial Information
Supplemental Slides Non-GAAP Financial Information In connection with Dana's emergence from bankruptcy on January 31, 2008 and the application of fresh start accounting in accordance with the provisions of the American Institute of Certified Public Accountants' Statement of Position 90-7, the post-e
Slide 27: Consolidated Statement of Operations - Three Months Ended June 30
27 (c) Dana Limited DANA HOLDING CORPORATION Consolidated Statement of Operations (Unaudited) For the Three Months Ended June 30, 2009 and 2008 (In millions, except per share amounts)
Slide 28: Consolidated Statement of Operations - Six Months Ended June 30
28 (c) Dana Limited DANA HOLDING CORPORATION Consolidated Statement of Operations (Unaudited) For the Six Months Ended June 30, 2009 and 2008 (In millions, except per share amounts)
Slide 29: Consolidated Balance Sheet
29 (c) Dana Limited DANA HOLDING CORPORATION Consolidated Balance Sheet (Unaudited) As of June 30, 2009 and December 31, 2008 (In millions)
Slide 30: Consolidated Statement of Cash Flows - Three Months
30 (c) Dana Limited DANA HOLDING CORPORATION Consolidated Statement of Cash Flows (Unaudited) For the Three Months Ended June 30, 2009 and 2008 (In millions)
Slide 31: Consolidated Statement of Cash Flows - Six Months
31 (c) Dana Limited DANA HOLDING CORPORATION Consolidated Statement of Cash Flows (Unaudited) For the Six Months Ended June 30, 2009 and 2008 (In millions)
Slide 32: Segment Sales & EBITDA - Three Months
32 (c) Dana Limited DANA HOLDING CORPORATION Segment Sales & EBITDA For the Three Months Ended June 30, 2009 and 2008 (In millions)
Slide 33: Segment Sales & EBITDA - Six Months
33 (c) Dana Limited DANA HOLDING CORPORATION Segment Sales & EBITDA For the Six Months Ended June 30, 2009 and 2008 (In millions)
Slide 34: Segment EBITDA Reconciliation - Three Months
34 (c) Dana Limited DANA HOLDING CORPORATION Segment EBITDA Reconciliation (Unaudited) Reconciliation of Segment EBITDA to Income (Loss) from Continuing Operations Before Income Taxes For the Three Months Ended June 30, 2009 and 2008 (In millions)
Slide 35: Segment EBITDA Reconciliation - Six Months
35 (c) Dana Limited DANA HOLDING CORPORATION Segment EBITDA Reconciliation (Unaudited) Reconciliation of Segment EBITDA to Income (Loss) from Continuing Operations Before Income Taxes For the Six Months Ended June 30, 2009 and 2008 (In millions)