Slide 1: 2022 Second-quarter Earnings Conference Call
2022 Second-quarter Earnings Conference Call August 3, 2022
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 § 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 © 2022 Dana 3 3
Slide 4: Business Highlights: 2022 Second Quarter Financial Results
Business Highlights: 2022 Second Quarter Financial Results Key Items sales free cash flow §Market Update §Key Program Launches $381M from prior year $180M from prior year §Heavy-Duty EV Update adjusted EBITDA diluted adjusted EPS §EV Powertrain Evolution $71M from prior year 51¢ from prior year See
Slide 5: Market Update
Market Update Commodity Costs Cost Inflation & Currency Market Demand Dana Dana Dana Impact Impact Impact § Commodity costs escalated through Q2 § Other cost inflation continues: § End-market demand remains § Commodity cost recoveries continue § Energy strong; vehicle inventories low § Labor § Steel
Slide 6: Key Program Launch Update
Key Program Launch Update Q2 2022 Q1 2022 Q2 2022 Q2 2022 2 Dana Facilities 5 Dana Facilities 4 Dana Facilities 7 Dana Facilities Q2 2022 Date: TBA Date: TBA Q4 2022 5 Dana Facilities 12 Dana Facilities 7 Dana Facilities 4 Dana Facilities Successfully Launching Significant Light-Vehicle Programs © 2
Slide 7: Hydrogen Electric Terminal Tractor e-Transmission
Hydrogen Electric Terminal Tractor e-Transmission In just a few months, we’ll be the first company in the U.S. to test the capabilities and performance of Capacity’s very first second-generation hydrogen fuel cell yard truck. The truck is manufactured by Capacity in Longview, Texas, and has a range
Slide 8: Power Technologies: e-Thermal Engineering
Power Technologies: e-Thermal Engineering Conventional Powertrains e-Powertrains Battery Enclosure / Sealing Technology Dana System Housing Sealing 1. Electric Motors 2. Power Electronics 3. Mechanical Gearboxes 4. Thermal Management Battery Cooling Merging core capabilities Thermal Management Elect
Slide 9: Dana e-Propulsion System
Dana e-Propulsion System e-Powertrains e-Motors Power Electronics 1 e-Propulsion High-voltage Low-voltage High- Low- Software & 3 e-Motors e-Motors voltage voltage Controls Systems Inverters Inverters Mechanicals Thermal Management 4 2 Battery Battery Motor and Cooling Gearboxes Axles Enclosures Ele
Slide 10: Financial Review
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Slide 11: 2022 Q2 Financial Results
2022 Q2 Financial Results § Sales growth primarily due to Changes from Prior Year demand recovery in all our ($ in millions except EPS) Q2 ‘22 Q2 ‘21 Change end-markets and recovery of commodity cost inflation Sales $ 2,586 $ 2,205 $ 381 § Profit conversion on higher Adjusted EBITDA 162 233 (71) sal
Slide 12: 2022 Q2 Sales and Profit Changes
2022 Q2 Sales and Profit Changes § Organic growth driven by strong sales in all end markets Sales and cost recoveries $142M $2,586M $59M § Net cost inflation of ~$38 $278M $2,205M million and customer-demand- ($98)M 98% driven operational environment Recovery and higher launch costs causing negative
Slide 13: 2022 Q2 Free Cash Flow
2022 Q2 Free Cash Flow § Cash flow improvement Changes from Prior Year driven by lower working ($ in millions) capital requirements, offsetting lower profit and higher capital investment Q2 ‘22 Q2 ‘21 Change § Lower cash interest in this Adjusted EBITDA $ 162 $ 233 $ (71) year’s second quarter due t
Slide 14: 2022 FY Financial Guidance
2022 FY Financial Guidance § Sales supported by strong Guidance Ranges end-market demand and cost recovery actions Change in Midpoint § Translation of foreign from Prior Guidance currency expected to be a sales and profit headwind. ~$10,100M Outlook assumes euro to ± $100M Sales dollar parity § Prof
Slide 15: 2022 FY Sales and Profit Changes
2022 FY Sales and Profit Changes § End-market growth driven by increased production in light Sales vehicles and continued ~$475M ~$10,100M ~$230M recovery in heavy-vehicle ~$880M markets ~($430)M § Net cost inflation of ~$145 ~104% $8,945M Recovery million in 2022, along with operational inefficienc
Slide 16: 2022 FY Free Cash Flow Guidance
2022 FY Free Cash Flow Guidance § Management of working Changes from Prior Year capital improving free cash flow ($ in millions) § Managing inventory 2022T 2021A Change requirements for uneven customer demand patterns Adjusted EBITDA $ ~720 $ 795 $ ~(75) § Working with customers and 1 One-time Costs
Slide 17: Resilient Balance Sheet
Resilient Balance Sheet Strong Liquidity Debt Capital $ in millions 1 Cash Balance $339 M $1,150 Revolver Capacity $934 M $400 $400 $400 $400 $350 $341 Q2 Liquidity ~$1.3 B 2022 2025 2026 2027 2028 2029 2030 2031 2032 USD Debt EUR Debt Revolving Credit Facility 1 Available cash and marketable securi
Slide 18: Appendix
Appendix
Slide 19: 2022 Q2 Sales and Profit Change by Segment
2022 Q2 Sales and Profit Change by Segment Light Vehicle Drive Systems Off-Highway Drive and Motion Systems $115M $3M $46M $768M $41M $1,028M $15M $99M $669M $890M ($65)M ($17)M Sales Sales 2021 Traditional EV Organic Currency Commodities 2022 2021 Traditional EV Organic Currency Commodities 2022 Or
Slide 20: Segment Profiles
Segment Profiles Light Vehicle Commercial Vehicle Off Highway Power Drive Systems Drive and Motion Systems Drive and Motion Systems Technologies Year to Date 6/30/2022 Year to Date 6/30/2022 Year to Date 6/30/2022 Year to Date 6/30/2022 Deere Ford Paccar Other 9% CNH 15% 13% 19% 6% Ford Oshkosh Volv
Slide 21: Diluted Adjusted EPS
Diluted Adjusted EPS DANA INCORPORATED DANA INCORPORATED Reconciliation of Net Income Attributable to the Parent Company to Reconciliation of Net Income Attributable to the Parent Company to Adjusted Net Income Attributable to the Parent Company and Adjusted Net Income Attributable to the Parent Com
Slide 22: Segment Data
Segment Data DANA INCORPORATED DANA INCORPORATED Segment Sales and Segment EBITDA (Unaudited) Segment Sales and Segment EBITDA (Unaudited) For the Three Months Ended June 30, 2022 and 2021 For the Six Months Ended June 30, 2022 and 2021 Three Months Ended Six Months Ended (In millions) June 30, (In
Slide 23: Segment Data Continued
Segment Data Continued DANA INCORPORATED DANA INCORPORATED Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) For the Six Months Ended June 30, 2022 and 2021 For the Three Months Ended June 30, 2022 and 2021
Slide 24: Cash Flow
Cash Flow DANA INCORPORATED Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow and Adjusted Free Cash Flow (Unaudited) Three Months Ended (In millions) June 30, 2022 2021 Net cash provided by operating activities $ 257 $ 67 Purchase of property, plant and equipment (90) (
Slide 25: Global Scale & Technologies for Tomorrow
Global Scale & Technologies for Balanced End- Complete Electric Financial Strength Tomorrow Market Presence Product Portfolio © 2022 Dana 25 25
Slide 26: 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