Slide 1: Dana Corporation 1st Quarter Conference Call
Dana Corporation 1st Quarter Conference Call April 21, 2004 (c) Dana Corporation, 2004
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements herein about our forecasts, beliefs, and expectations constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on our current information and assumptions. Forward-looking state
Slide 3: Where We've Been, Where We're Going
Dana Corporation Where We've Been Where We're Going Decentralized Company Disconnected Functions SBU Organization OE/Aftermarket Global Footprint w/NA Bias 2001 Restructuring Program Integrated Company Top-Line Growth & Continually Improving Cost Structure Fully Leveraged Functions Market-Focused Or
Slide 4: Future Success Requires Focus
Future Success Requires Focus 1 3.3 2 4.8 2.178 5.1 1 1.9 3 6.1 3 4.7 3 5.3 3 6.2 3 6.3 Diverse Focused Source: Public Filings 7 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2
Slide 5: Aftermarket Business Divestiture
Aftermarket Business Divestiture Future success demands focus; Dana will focus on its OE markets Proposed transaction is a "win-win" for Dana and the aftermarket business Potential uses of divestiture proceeds: Reinvest in our core businesses Contribute to pension plans Repay debt 9 (c) Dana Corpora
Slide 6: Pleasant Surprises
Pleasant Surprises Excellent Quality Metrics Impressive Six Sigma Black Belt Program Dedicated People Unified by challenges Embracing change and, most importantly ... 11 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially du
Slide 7: Dana Customer Base: Automotive
Dana Customer Base Automotive 13 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2
Slide 8: Dana Customer Base: Commercial Vehicle & Off-Highway
Dana Customer Base Commercial Vehicle & Off-Highway 15 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2
Slide 9: NAFTA Heavy-Truck Overview
17 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2 NAFTA Heavy-Truck Overview Backlog Net Orders Build Sales Inventory 2001 69963 14785 13119 13888 47703 70726 12300 12184 13042 47415
Slide 10: Sales by Region / Global Footprint
Sales by Region North America South America Europe Asia Pacific $5.5 billion 70% $0.4 billion 5% $1.5 billion 19% $0.5 billion 6% Data as of Dec. 31, 2003; Includes Continuing Operations 19 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may
Slide 11: Organization & Product Mix
Organization & Product Mix Engine Hard Parts 0.11 Fluid 0.1 Sealing 0.1 Thermal 0.05 Torque-Traction 0.45 Structures 0.14 Systems 0.05 Off-Highway 0.39 Heavy-Duty 0.37 Medium-Duty 0.24 Automotive Systems Group Heavy Vehicle Technologies & Systems Group Off-Highway Heavy-Duty Medium-Duty Torque-Tract
Slide 12: Exciting New Programs
Exciting New Programs 23 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2
Slide 13: Financial Summary
Financial Summary Q1 -2004 Q1 -2003 Sales $2.3 billion $2.0 billion Net Income Earnings per Share $63 million $0.42 $41 million $0.28 Net Income, excluding unusual items $61 million $31 million Earnings Per Share, excluding unusual items $0.41 $0.21 25 (c) Dana Corporation. Dated April 21, 2004. Sli
Slide 14: 1st Quarter Segment Comparison
1st Quarter Segment Comparison Automotive 1,757 1,543 14 71 57 25 Heavy Vehicle 587 476 23 24 15 60 DCC 7 6 17 Other (33) (43) 23 (54) (52) (4) Results from Cont. Operations 2,311 1,976 17 48 26 85 Discontinued Ops.* 13 5 160 Unusual Items 2 10 (80) Consolidated 2,311 1,976 17 63 41 54 Sales OPAT 20
Slide 15: Income Statement With DCC on an Equity Basis
2003 2002 Income Statement With DCC on an Equity Basis* 29 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2 2004 2003 1st Quarter * NOTE: Comparable GAAP measures available at www.dana.
Slide 16: Cash Flow Statement With DCC on an Equity Basis
Cash Flow Statement With DCC on an Equity Basis 2004 2003 1st Quarter (Millions) 31 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2
Slide 17: Capital Structure With DCC on an Equity Basis
Capital Structure With DCC on an Equity Basis 33 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2
Slide 18: Debt Portfolio With DCC on Equity Basis
Maturities do not reflect swap valuation adjustments March 31, 2004 Debt Portfolio With DCC on Equity Basis 2004 2005 2006 2008 2009 2010 2011 2028 2029 A/R Sec'n 140 Sr Notes 150 350 250 821.33 165.05 268.25 Other 31.855 15.544 14 32 140 35 (c) Dana Corporation. Dated April 21, 2004. Slide may cont
Slide 19: Liquidity With DCC on an Equity Basis
5-year bank facility $400 $ - $ 400 Accts receivable program 400 140 260 Total short-term committed facilities $800 $ 140 $ 660 Plus: Cash 451 Total $1,111 Committed Drawn Available March 31, 2004 Liquidity With DCC on an Equity Basis 37 (c) Dana Corporation. Dated April 21, 2004. Slide may contain
Slide 20: DCC Portfolio Analysis
12/01 Total Portfolio Assets - $2,200 DCC Portfolio Analysis ($ Millions) VASG 90 50 12 RESG 170 740 0 CMG 480 Value-Added Services Retained Real Estate Capital Markets 3/04 Total Portfolio Assets - $1,260 VASG 120 10 50 RESG 170 900 0 CMG 410 Net of certain non-recourse debt 39 (c) Dana Corporation
Slide 21: 2004 Guidance: Supporting Assumptions
2004 Guidance: Supporting Assumptions Market Forecasts Light-Vehicle: 16.2 million units Heavy-Vehicle: 245,000 units Net New Business $400 million in 2004 Lower Start-Up Costs Restructuring Benefits Debt Reduction Aftermarket Transaction Targeted for Completion by End of Q2 41 (c) Dana Corporation.
Slide 22: Income Statement Outlook
Income Statement Outlook ($ Millions, except per share data) 2003 2004 Actual Outlook Sales $ 7,918 > $8,500 Net Income 222 > 285 EPS 1.49 > 1.90 43 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discusse
Slide 23: 2004 Cash Flow Projection
2004 Cash Flow Projection (DCC Shown on an Equity Basis) * Excludes proceeds from aftermarket divestiture * 45 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2 (Millions)
Slide 24: Shareholder Value: 15% ROIC Over the Cycle
Peak Trough Greater Than 15% ROIC A/T Achieve at Least the Cost of Capital Shareholder Value 15% ROIC A/T Over the Cycle Restructuring Transformation 47 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors disc
Slide 25: Our Focus: Top-Line Growth, Gross Margin Improvement
Our Focus Top-Line Growth Gross Margin Improvement 49 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2
Slide 26: Summary
Summary Q1 Performance: 17% Sales, 85% Profit* There is More Work to Do We Are Taking Action Tremendous Potential Solid Customer Base Great Group of People Confident in Our Future 51 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ
Slide 27: (c)Dana Corporation. April 21, 2004.
53 (c)Dana Corporation. April 21, 2004.
Slide 28: Capital Structure Reconciliation as of December 31, 2003
Capital Structure Reconciliation as of December 31, 2003 55 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2
Slide 29: Capital Structure Reconciliation as of March 31, 2004
Capital Structure Reconciliation as of March 31, 2004 57 (c) Dana Corporation. Dated April 21, 2004. Slide may contain forward-looking information. Actual results may differ materially due to factors discussed on slide 2