Dana Incorporated · NYSE:DAN
Dana — Q2 2020 Earnings Presentation
24 slides from Dana's earnings presentation, Jul 30, 2020
Slide 1: 2020 Second-quarter Earnings Conference Call
2020 Second-quarter Earnings Conference Call July 30, 2020
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
IntroductionCraig Barber Senior Director, Investor Relations and Strategic Planning Business ReviewJames Kamsickas Chairman and Chief Executive Officer Financial ReviewJonathan Collins Executive Vice President and Chief Financial Officer Agenda
Slide 4: Business Overview
Business Overview Reopening completed New electric truck program win Acquired EV software capabilities Hyliion partnership Ford Bronco reveal monthly sales progression $1.1 billion adjusted EBITDA ~Breakeven diluted adjusted EPS $(0.69) Second Quarter Results Key Highlights Pandemic Impact sales +83
Slide 5: Return to Growth
Return to Growth RE ENGAGE RESTART Operations and Manufacturing Customers Supply Chain Employees Launch Backlog RE NEW
Slide 6: New Business: European Electric Truck
New Business: European Electric Truck Dana’s 3rd Significant Electric Truck Program Major European manufacturer Multi-year program Launching in 2021 Complete Dana e-Powertrain: Electrodynamic components Complete vehicle integration Embedded software and controls Power Pack Battery Modules, Thermal M
Slide 7: Rational Motion Acquisition
Rational Motion Acquisition Electric vehicle system integration Embedded software Electric powertrain testing Hardware and software in the loop Battery simulation Electric vehicle in-house driver simulator Proven technical expertise in software, controls, integration, and engineering services for el
Slide 8: Hyliion Partnership
Hyliion Partnership Converts a traditional 6x2 truck into a hybrid by adding a Dana e-Propulsion system including a Spicer electric rear axle Dana thermal management integrated in e-Power system High value proposition to fleets due to lower: Fuel costs Emissions Maintenance costs Dana has a strategi
Slide 9: Ford Bronco Family
Ford Bronco Family c Off-Road Capabilities and Proven Durability 2021 Launch with Spicer® SmartConnect™ 2020 Launch with CV33 Joints
Slide 10: Financial Review
<u> Financial Review
Slide 11: Near-term Financial Priorities
Near-term Financial Priorities See appendix for comments regarding the presentation of non-GAAP measures Actions taken to reduce inventory by $77 million in H1 as production demand declined due to shutdowns Through shutdown period, reduced hourly and salary labor costs and reduced operating costs in
Slide 12: 2020 Q2 Financial Results
2020 Q2 Financial Results See appendix for comments regarding the presentation of non-GAAP measures ($ in millions except EPS) Sales and profit declines due to production shutdowns associated with the global COVID-19 pandemic Lower diluted adjusted EPS primarily due to lower earnings Capital expendi
Slide 13: 2020 Q2 Sales and Profit Changes
See appendix for comments regarding the presentation of non-GAAP measures Organic decline driven by global production shutdowns due to the COVID-19 pandemic Targeted cost management actions and a successful restart of operations helped mitigate margin impact Currency translation was a headwind to sa
Slide 14: 2020 Q2 Cash Flow
2020 Q2 Cash Flow 1 Includes costs associated with business acquisitions and divestitures and restructuring. 2 Changes in working capital relating to interest, taxes, restructuring, and transaction costs are included in those respective categories. 3Includes other financing and investing activities
Slide 15: Business Outlook
Business Outlook Strong light-truck demand Key vehicle inventories remain low N.A. and China seeing fastest recovery Class 8 demand soft; order rates improving Medium duty demand remains challenged Indian OEM production restarting slowly Agriculture equipment market outperforming Construction equipm
Slide 16: leeghe Finding ff Otter Way?
leeghe Finding ff Otter Way?
Slide 17: Appendix
Appendix
Slide 18: 2020 Q2 Sales and Profit Change by Segment
2020 Q2 Sales and Profit Change by Segment See appendix for comments regarding the presentation of non-GAAP measures 12.7% (9.5)% Positive Change Negative Change Segment EBITDA Sales Quarter Light Vehicle Drive Systems Commercial Vehicle Drive and Motion Systems Off-Highway Drive and Motion Systems
Slide 19: Segment Profiles
* Includes sales to system integrators for driveline products that support FCA vehicles Segment Profiles Performance Customer Sales Regional Sales $ Millions $ Millions $ Millions Light Vehicle Drive Systems Year to Date 6/30/2020 Commercial Vehicle Drive and Motion Systems Year to Date 6/30/2020 Of
Slide 20: Diluted Adjusted EPS
Diluted Adjusted EPS DANA INCORPORATED DANA INCORPORATED Diluted Adjusted EPS (Unaudited) Diluted Adjusted EPS (Unaudited) For the Three Months Ended June 30, 2020 and 2019 For the Six Months Ended June 30, 2020 and 2019 (in millions, except per share amounts) (In millions, except per share amounts)
Slide 21: Segment Data
Segment Data DANA INCORPORATED Segment Sales and Segment EBITDA (Unaudited) For the Three Months Ended June 30, 2020 and 2019 Three Months Ended (in millions) June 30, 2020 2019 Sales Light Vehicle $ Commercial Vehicle Off-Highway Power Technologies Total Sales Segment EBITDA Light Vehicle $ (32) 11
Slide 22: Segment Data Continued
Segment Data Continued DANA. DANA INCORPORATED Reconciliation of Segment and Adjusted EBITDA to Net Loss (Unaudited) For the Three Months Ended June 30, 2020 and 2019 (in millions) ‘Segment EBITDA Corporate expense and other items, net Amortization Restructuring charges, net Stock compensation expen
Slide 23: Cash Flow Reconciliation
Cash Flow QS DANA INCORPORATED Reconciliation of Net Cash Provided By (Used In) Operating Activities to Free Cash Flow and Adjusted Free Cash Flow (Unaudited) Three Months Ended (In millions) June 30, 2020 2019 Net cash provided by (used in) operating activities $ (75) $ 73 Purchase of property, pla
Slide 24: Adjusted EBITDA definition (non-GAAP measure)
Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income 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 related