Slide 1: Dana Corporation First-Quarter 2005 Results
Dana Corporation First-Quarter 2005 Results April 20, 2005 (c) Dana Corporation, 2005 Certain statements contained in this presentation constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent Dana's expectations b
Slide 2: Agenda
Agenda First-Quarter Overview Mike Burns Financial summary Operational review Detailed Financial Review Bob Richter First-quarter results 2005 guidance Wrap-Up Mike Burns (c) Dana Corporation. Dated April 20, 2005.
Slide 3: Financial Overview
Financial Overview Q1 - 2005 Q1 -2004 ($ Millions, except per share data) (c) Dana Corporation. Dated April 20, 2005. * Non-GAAP Measure
Slide 4: First-Quarter Challenges
First-Quarter Challenges Impact of Steel Remained Significant Heavy-Vehicle Component Shortage Lower Light-Vehicle Production Levels (c) Dana Corporation. Dated April 20, 2005.
Slide 5: 2005 Steel Outlook
2005 Steel Outlook Estimated adverse impact of $110 million after tax, net of customer recoveries, vs. previous outlook of $100 million Scrap prices are down and demand is moderating, but prices are not following Uncertainty persists (c) Dana Corporation. Dated April 20, 2005. Slide contains forward
Slide 6: Component Shortage
Component Shortage Heavy-duty axle shipments affected in March Corrective actions taken by supplier Product available to make April shipments Situation now essentially behind us (c) Dana Corporation. Dated April 20, 2005.
Slide 7: 2005 Light-Vehicle Demand
2005 Light-Vehicle Demand Our guidance is now 15.7 million units 60% light truck; 40% passenger car* Production outlook* Q1 '05 vs Q1 '04 ............ (4.5)% Q2 '05 vs Q2 '04 ............ (0.9)% Our key platforms Ford: F-Series, Explorer, Econoline, Expedition GM: Express/Savana van, Colorado/Canyon
Slide 8: 2005 Business Unit Performance
2005 Business Unit Performance ASG HVTSG * Net of Customer Recoveries ($ Millions) (c) Dana Corporation. Dated April 20, 2005.
Slide 9: Cumulative Net New Business
Cumulative Net New Business Estimates based on Dana's review of the projected production schedules of our customers Automotive Systems Heavy Vehicle Technologies & Systems 2005 2006 2007 Pluses Minuses Net $470M vs. 2004 Net $320M vs. 2005 Net $340M vs. 2006 ($ Millions) $1.1 billion in incremental
Slide 10: Net New Business Highlights
Net New Business Highlights Others 0.8 Traditional Big 3 0.2 Non-North America 0.7 North America 0.3 (c) Dana Corporation. Dated April 20, 2005.
Slide 11: Long-Term Success
Long-Term Success Three actions we are undertaking to better position Dana for long-term success: Buyout of minority interest in Dana's principal Brazilian subsidiary, Dana-Albarus Agreement to form a 50/50 joint venture - Dongfeng Axle Co., Ltd. -- in China Agreement with IBM to provide administrat
Slide 12: 1st Quarter Segment Comparison
Automotive 1,847 1,757 5 40 71 (44) Heavy Vehicle 682 587 16 25 24 4 DCC 6 7 (14) Other (41) (33) (24) (53) (52) (2) Results from Cont. Operations 2,488 2,311 8 18 50 (64) Discontinued Ops.* 13 N/M Unusual Items 2 N/M Consolidated 2,488 2,311 8 18 65 (72) % % $ $ $ $ 1st Quarter Segment Comparison S
Slide 13: Q1 2005 Income Statement With DCC on an Equity Basis
Excluding Unusual Items As Reported Q1 2005 Income Statement With DCC on an Equity Basis* **Unusual Items DCC Asset Sales** (Millions) *Comparable GAAP measures available at www.dana.com/investors (c) Dana Corporation. Dated April 20, 2005.
Slide 14: Income Statement With DCC on an Equity Basis
Q1 - 2005 Q1 - 2004 Income Statement With DCC on an Equity Basis* (Millions) (c) Dana Corporation. Dated April 20, 2005. *Comparable GAAP measures available at www.dana.com/investors
Slide 15: Cash Flow Statement With DCC on an Equity Basis
Cash Flow Statement With DCC on an Equity Basis * Q1 - 2005 Q1 - 2004 (Millions) (c) Dana Corporation. Dated April 20, 2005. *Comparable GAAP measures available at www.dana.com/investors
Slide 16: Capital Structure With DCC on an Equity Basis
Capital Structure With DCC on an Equity Basis* (c) Dana Corporation. Dated April 20, 2005. *Comparable GAAP measures available at www.dana.com/investors
Slide 17: Net Debt
Net Debt 12/2/2002 1964 3/3/2003 2138 6/3/2003 1999 9/3/2003 1899 12/3/2003 1683 3/4/2004 1820 6/4/2004 1765 9/4/2004 1979 12/30/2004 1281 3/31/2005 1544 (Millions) Denotes Seasonal Working Capital Increase (c) Dana Corporation. Dated April 20, 2005.
Slide 18: March 31, 2005 Debt Portfolio
March 31, 2005 Debt Portfolio Maturities do not reflect swap valuation adjustments Excluding Debt Maturities of DCC 2005 2006 2007 2008 2009 2010 2011 2015 2028 2029 Domestic STD 215 Sr Notes 2.071 150 349.2 74.127 125.06 450 164.207 265.713 DCC Loan to Dana 238.9 4.05 4.05 4.688 3.01 5.742 Internat
Slide 19: Dana Credit Corporation Portfolio Analysis
12/01 Total Portfolio Assets - $2,200 Dana Credit Corporation Portfolio Analysis ($ Millions) VASG 25 110 45 RESG 170 405 495 CMG 705 Value-Added Services Retained Real Estate Capital Markets 3/05Total Portfolio Assets - $755 VASG 120 10 50 RESG 170 900 0 CMG 410 (c) Dana Corporation. Dated April 20
Slide 20: 2005 Guidance
2005 Guidance (c) Dana Corporation. Dated April 20, 2005. Slide contains forward-looking information. Actual results may differ materially. See cautionary statement on Slide 1 Full-Year Guidance EPS $1.30 - $1.45 Midpoint of Guidance EPS $ 1.38 Diluted Shares MM x 151 Midpoint of Guidance $MM $ 208
Slide 21: Walk Forward
Walk Forward ($ Millions) (c) Dana Corporation. Dated April 20, 2005. Slide contains forward-looking information. Actual results may differ materially. See cautionary statement on Slide 1 First Quarter Net Income $ 18 "One Time" Items, incl. effect of component shortage 6 Steel Surcharges, net of re
Slide 22: 2005 Revised Free Cash Flow Outlook
2005 Revised Free Cash Flow Outlook With DCC on an Equity Basis (Millions) (c) Dana Corporation. Dated April 20, 2005. Slide contains forward-looking information. Actual results may differ materially. See cautionary statement on Slide 1
Slide 23: 2005 Strategic Goals
2005 Strategic Goals Profitable sales growth at twice the rate of the global vehicle market Increase earnings through accelerated cost and productivity initiatives Maintain a strong balance sheet (c) Dana Corporation. Dated April 20, 2005.
Slide 24: Wrap-Up
Wrap-Up Component shortage is behind us Focusing on other operational issues holding back margins Accelerating cost saving initiatives Net new business growth Unknowns Can light-duty vehicle production remain relatively stable? Will there be less pressure on steel and other material price increases?
Slide 25: Questions
Questions (c) Dana Corporation, 2005 49
Slide 26: Supplemental Slides
Supplemental Slides (c) Dana Corporation, 2005 51
Slide 27: Dana's Net New Business
Dana's Net New Business $160 180 $340 ASG $295 $205 HVTSG 175 115 TOTAL $470 $320 2005 2006 2007 $155 145 $300 ASG $280 $150 HVTSG 125 100 TOTAL $410 $250 Q1-2005 Q4-2004 ($ Millions) Incremental Wins Since Last Conf. Call $ 60 $ 40 = $ 70 $170M (c) Dana Corporation. Dated April 20, 2005. Slide cont
Slide 28: Capital Structure Reconciliation as of December 31, 2004
Capital Structure Reconciliation as of December 31, 2004 (c) Dana Corporation. Dated April 20, 2005.
Slide 29: Capital Structure Reconciliation as of March 31, 2005
Capital Structure Reconciliation as of March 31, 2005 (c) Dana Corporation. Dated April 20, 2005.
Slide 30: www.dana.com
www.dana.com (c) Dana Corporation, 2005 59