Slide 1: Business Update
Value Others | Inspire Innovation | Grow Responsibly | Win Together January 24, 2025 Business Update
Slide 2: 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 about our industry and
Slide 3: Agenda
Craig Barber Senior Director, Investor Relations and Corporate Communications Introduction R. Bruce McDonald Chairman and Chief Executive Officer Business Review Timothy Kraus Senior Vice President and Chief Financial Officer Financial Review Agenda
Slide 4: Revised Strategy Will Increase Profit, Reduce Leverage, and Add Significant Value
Existing Strategy Strategy Update Revised Strategy Revised Strategy Will Increase Profit, Reduce Leverage, and Add Significant Value Three-market focus Broad reach but with higher complexity Rapid expansion into emerging EV market Attained leading market position but at higher cost and capital inves
Slide 5: Financial Commitments
Increasing our total 2026 cost-reduction target from $200M to $300M Revised EV commercial strategy Downsizing corporate overhead structure Complexity reduction From 3 to 2 segments Integration of Aftermarket operations Reduction in infrastructure cost outside North America New Dana target adjusted E
Slide 6: Financial Review
Financial Review
Slide 7: Full-Year Preliminary Financial Results
Full-Year Preliminary Financial Results 2024 Preliminary Financial Results sales ~$10.3 billion Middle of guidance range Key Highlights adjusted EBITDA ~$885 million High-end of guidance range Conversion on organic sales drove margin improvement Cost-savings actions underway Lower demand for EVs and
Slide 8: 2024 FY Preliminary Sales and Profit Changes
Organic growth impacted by lower end-market demand in 2nd half Margin benefiting from improved efficiencies and cost savings actions Cost recoveries for delayed EV programs of ~$15 million Translation of foreign currency was a slight headwind to sales Lower commodity costs resulting in lower sales r
Slide 9: 2025 FY Preliminary Financial Guide
Sales Adjusted EBITDA Implied Profit Margin Free Cash Flow 2025 FY Preliminary Financial Guide Lower sales driven by lower end-market demand primarily in off-highway and currency translation Weakening demand for electric vehicles driving lower sales Efficiency improvements and cost-savings actions d
Slide 10: 2025 FY Preliminary Sales and Profit Changes
Lower end-market demand in Off-highway Decremental margin benefiting from improved efficiencies Significant cost savings actions driving margin improvement Translation of foreign currency expected to be a headwind to sales and profit Lower commodity costs resulting in lower sales recoveries; profit
Slide 11: 2025 FY Free Cash Flow
2025 FY Free Cash Flow Higher profit, improved working capital efficiency, and lower capital investment requirements driving improvement over last year Increase in net interest payments due to higher rates 1 Includes costs associated with business acquisitions and divestitures and restructuring. 2 C
Slide 12: Adjusted EBITDA non-GAAP definition
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 costs and other adjustments not r
Slide 13: DANA
DANA