Slide 1: Dana Corporation Second-Quarter 2005 Conference Call
Dana Corporation Second-Quarter 2005 Conference Call July 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 expect
Slide 2: Agenda
Agenda Second-Quarter Overview Mike Burns Highlights Operational review Market outlook Detailed Financial Review Bob Richter Second-quarter results 2005 guidance Wrap-Up Mike Burns (c) Dana Corporation. Dated July 20, 2005.
Slide 3: Financial Overview
Financial Overview ($ Millions, except per share data) (c) Dana Corporation. Dated July 20, 2005. 2005 2004 Second Quarter 2005 2004 Six Months * Non-GAAP measure
Slide 4: Cumulative Net New Business
Cumulative Net New Business ($ Millions) Note: Estimates based on Dana's review of the projected production schedules of our customers. ASG HVTSG 2005 2006 2007 Pluses Minuses Net $505M vs. 2004 Net $395M vs. 2005 Net $445M vs. 2006 (c) Dana Corporation. Dated July 20, 2005. Slide contains forward-l
Slide 5: Net New Business Highlights 2005-2007
Net New Business Highlights 2005 - 2007 Others 0.8 Traditional Big 3 0.2 Non-North America 0.7 North America 0.3 (c) Dana Corporation. Dated July 20, 2005. Slide contains forward-looking information. Actual results may differ materially. See cautionary statement on Slide 1.
Slide 6: Customer Diversification
Customer Diversification (As a % of Revenue) (c) Dana Corporation. Dated July 20, 2005. Slide contains forward-looking information. Actual results may differ materially due to factors discussed on Slide 1. 11 2003 2004 2005 Trend Traditional Big 3 0.48 0.44 0.38 Others 0.52 0.56 0.62
Slide 7: Leading Steel Indicators
Leading Steel Indicators (c) Dana Corporation. Dated July 20, 2005. 1/1/2003 2/1/2003 3/1/2003 4/1/2003 5/1/2003 6/1/2003 7/1/2003 8/1/2003 9/3/2003 10/1/2003 11/1/2003 12/1/2003 1/4/2004 2/4/2004 3/4/2004 4/4/2004 5/4/2004 6/4/2004 7/4/2004 8/4/2004 9/4/2004 10/1/2004 11/1/2004 12/1/2004 1/6/2005 2
Slide 8: Q2 2005 vs. Q2 2004 Performance
Q2 2005 vs. Q2 2004 Performance ($ Millions) ASG HVTSG * Net of Customer Recoveries (c) Dana Corporation. Dated July 20, 2005.
Slide 9: Q2 2005 vs. Q1 2005 Performance
Q2 2005 vs. Q1 2005 Performance ($ Millions) * Net of Customer Recoveries (c) Dana Corporation. Dated July 20, 2005. ASG HVTSG
Slide 10: N.A. Light-Vehicle Production
N.A. Light-Vehicle Production Revised Dana estimate - 15.5 million units 60% light truck, 40% passenger car* 2005 production outlook* Q3 '05 vs Q3 '04 ............. 0.5% Q4 '05 vs Q4 '04 ............. (1.9)% 2005 vs 2004 .................. (1.8)% Six-month unit production vs. 2004 (U.S. & Canada)* L
Slide 11: NAFTA Commercial Vehicle Production
NAFTA Commercial Vehicle Production Class 5-7 Class 8 1999 241 333 2000 215 252 2001 176 146 2002 189 181 2003 196 177 2004 240 269 2005P 256 310 2006P 266 337 Units (000s) (c) Dana Corporation. Dated July 20, 2005. Slide contains forward-looking information. Actual results may differ materially due
Slide 12: Q2 2005 Income Statement With DCC on an Equity Basis
Excluding Unusual Items As Reported Q2 2005 Income Statement With DCC on an Equity Basis* Unusual Items Taxes (c) Dana Corporation. Dated July 20, 2005. ($ Millions) *Comparable GAAP measures available at www.dana.com/investors DCC Asset Sales
Slide 13: Six-Month Income Statement With DCC on an Equity Basis
Excluding Unusual Items As Reported Six-Month Income Statement With DCC on an Equity Basis* Unusual Items Taxes (c) Dana Corporation. Dated July 20, 2005. ($ Millions) *Comparable GAAP measures available at www.dana.com/investors DCC Asset Sales
Slide 14: Income Statement With DCC on an Equity Basis
2005 2004 Second Quarter 2005 2004 Six Months Income Statement With DCC on an Equity Basis* (c) Dana Corporation. Dated July 20, 2005. * Comparable GAAP measures available at www.dana.com/investors ($ Millions)
Slide 15: Cash Flow Statement With DCC on an Equity Basis
2005 2004 Second Quarter 2005 2004 Six Months Cash Flow Statement With DCC on an Equity Basis* (c) Dana Corporation. Dated July 20, 2005. *Comparable GAAP measures available at www.dana.com/investors ($ Millions)
Slide 16: Capital Structure With DCC on an Equity Basis
Capital Structure With DCC on an Equity Basis* (c) Dana Corporation. Dated July 20, 2005. *Comparable GAAP measures available at www.dana.com/investors ($ Millions)
Slide 17: June 30, 2005 Debt Portfolio Excluding DCC
2005 2006 2007 2008 2009 2010 2011 2015 2028 2029 Domestic STD 285 Sr Notes 149.8 349.267 74.158 124.402 449.8 164.217 265.74 DCC Loan to Dana 245.7 International/Other 39.054 4.629 3.778 4.103 3.153 5.739 June 30, 2005 Debt Portfolio Excluding Debt Maturities of DCC Note: Maturities do not reflect
Slide 18: June 30, 2005 Liquidity Excluding DCC
June 30, 2005 Liquidity Excluding DCC ($ Millions) Lines Drawn Available (c) Dana Corporation. Dated July 20, 2005. Note: Excludes committed borrowing lines related to foreign operations.
Slide 19: Dana Credit Corporation Portfolio Analysis
Retained 900 Capital Markets 1030 Value-Added 180 Real Estate 170 Retained 325 575 715 Capital Markets 315 Value-Added 0 180 Real Estate 0 12/01 Total Portfolio Assets - $2,200 Dana Credit Corporation Portfolio Analysis ($ Millions) Value-Added Services Retained Real Estate Capital Markets 6/05 Tota
Slide 20: 2005 Guidance
2005 Guidance ($ Millions, except per share data) Net Income* $196 - $219 EPS* $1.30 - $1.45 * Excluding unusual items (c) Dana Corporation. Dated July 20, 2005. Slide contains forward-looking information. Actual results may differ materially. See cautionary statement on Slide 1.
Slide 21: 2005 Free Cash Flow Outlook
2005 Free Cash Flow Outlook With DCC on an Equity Basis ($ Millions) (c) Dana Corporation. Dated July 20, 2005. Slide contains forward-looking information. Actual results may differ materially. See cautionary statement on Slide 1.
Slide 22: 2005 Working Capital Walk Forward
2005 Working Capital Walk Forward With DCC on an Equity Basis ($ Millions) (c) Dana Corporation. Dated July 20, 2005. Slide contains forward-looking information. Actual results may differ materially. See cautionary statement on Slide 1.
Slide 23: Second Quarter in Summary
Second Quarter in Summary Solid progress Q2 versus Q1 Sales up 6% Earnings up 53% in ASG and 48% in HVTSG New business momentum continues $215 million net new business in Q2 $1.3 billion in net new business: 2005-2007 More diverse geographically and by customer (c) Dana Corporation. Dated July 20, 2
Slide 24: Looking Ahead
Looking Ahead Strong commercial and off-highway markets Steel prices subsiding Uncertainty with North American light-vehicle production Continued strength of U.S. dollar Imperative that we continue to strengthen operational performance and reduce costs (c) Dana Corporation. Dated July 20, 2005. Slid
Slide 25: Questions
Questions (c) Dana Corporation, 2005 53
Slide 26: Supplemental Slides
Supplemental Slides (c) Dana Corporation, 2005 55
Slide 27: Dana's Net New Business
Dana's Net New Business $240 205 $445 ASG $320 $260 HVTSG 185 135 TOTAL $505 $395 2005 2006 2007 $160 180 $340 ASG $295 $205 HVTSG 175 115 TOTAL $470 $320 Q2-2005 Q1-2005 ($ Millions) Incremental Wins Since Q1 Conf. Call $ 35 $ 105 = $ 75 $215 (c) Dana Corporation. Dated July 20, 2005. Slide contain
Slide 28: Q2 2005 Segment Comparison
Automotive 1,948 1,766 10 61 72 (15) Heavy Vehicle 712 589 21 37 31 19 DCC 3 5 (40) Other (28) (24) (17) (48) (49) 2 Results from Cont. Operations 2,632 2,331 13 53 59 (10) Discontinued Ops.* 18 Unusual Items (2) 33 Consolidated 2,632 2,331 13 51 110 (54) % % $ $ $ $ Q2 2005 Segment Comparison Sales
Slide 29: Six-Month 2005 Segment Comparison
Automotive 3,795 3,523 8 101 143 (29) Heavy Vehicle 1,383 1,163 19 62 55 13 DCC 9 12 (25) Other (58) (44) (32) (101) (101) Results from Cont. Operations 5,120 4,642 10 71 109 (35) Discontinued Ops.* 31 Unusual Items (2) 35 Consolidated 5,120 4,642 10 69 175 (61) % % $ $ $ $ Six-Month 2005 Segment Co
Slide 30: Cash Flow Statement With DCC on an Equity Basis
2005 2004 Second Quarter 2005 2004 Six Months Cash Flow Statement With DCC on an Equity Basis * (c) Dana Corporation. Dated July 20, 2005. *Comparable GAAP measures available at www.dana.com/investors (Millions)
Slide 31: Cash Flow Reconciliation, Three Months Ended June 30, 2005
Dana With DCC On Equity Basis Cash Flow Statement Reconciliation for Three Months Ended June 30, 2005 (c) Dana Corporation. Dated July 20, 2005. ($ Millions) DCC Eliminations Dana With DCC Consolidated
Slide 32: Cash Flow Reconciliation, Six Months Ended June 30, 2005
Cash Flow Statement Reconciliation for Six Months Ended June 30, 2005 (c) Dana Corporation. Dated July 20, 2005. ($ Millions) Dana With DCC On Equity Basis DCC Eliminations Dana With DCC Consolidated
Slide 33: Cash Flow Reconciliation, Three Months Ended June 30, 2004
Cash Flow Statement Reconciliation for Three Months Ended June 30, 2004 (c) Dana Corporation. Dated July 20, 2005. ($ Millions) Dana With DCC On Equity Basis DCC Eliminations Dana With DCC Consolidated
Slide 34: Cash Flow Reconciliation, Six Months Ended June 30, 2004
Cash Flow Statement Reconciliation for Six Months Ended June 30, 2004 (c) Dana Corporation. Dated July 20, 2005. ($ Millions) Dana With DCC On Equity Basis DCC Eliminations Dana With DCC Consolidated
Slide 35: Capital Structure Reconciliation as of December 31, 2004
Capital Structure Reconciliation as of December 31, 2004 (c) Dana Corporation. Dated July 20, 2005.
Slide 36: www.dana.com
www.dana.com (c) Dana Corporation, 2005 77