Dana Incorporated · NYSE:DAN
Dana — Q2 2024 Earnings Presentation
23 slides from Dana's earnings presentation, Jul 31, 2024
Slide 1: 2024 Second-Quarter Earnings Conference Call
2024 Second-Quarter Earnings Conference Call July 31, 2024 Value Others | Inspire Innovation | Grow Responsibly | Win Together
Slide 2: Safe Harbor Statement
© 2024 Dana 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
Slide 3: Agenda
© 2024 Dana Agenda Craig Barber James Kamsickas Timothy Kraus Senior Director, Investor Chairman and Senior Vice President and Relations and Corporate Chief Financial Officer Chief Executive Officer Communications 3 Introduction Business Review Financial Review
Slide 4: Q2 Financial Results Key Highlights
© 2024 Dana Highlights Q2 Financial Results Key Highlights 73% sales § Conversion on traditional Company-wide organic sales through H1 efficiency § Supports full-year In Line conversion target improvements with prior year ~$130M adjusted EBITDA § Organic Sales growth End-market through H1 demand $1
Slide 5: Business Environment 2024 Outlook
© 2024 Dana Business Environment 2024 Outlook End-Market Outlook • Improved customer production stability increasing productivity Market From last year Update Company-Wide • Continued production costs reductions Efficiencies Slight Agriculture Softening • Efficiency improvements in all areas of the
Slide 6: Dana Innovations Power Everything that Moves
© 2024 Dana Dana Innovations Power Everything that Moves HY BRI D I CE EV Medium-Duty Truck Construction Light-Duty Truck ® Spicer Electric Torque Hub ® ® Spicer Front and Rear Axles Spicer eS9000r e-Axle and On-Engine Generator 6 Strong Balance of ICE, Hybrid, and Electric Vehicle Development Acros
Slide 7: Drivers of Continued Profit Expansion: H1 Comparison
© 2024 Dana Drivers of Continued Profit Expansion: H1 Comparison Adjusted EBITDA Impact End-to-End Execution $135M Winning Team: +41% Organization and Talent $467M $447M Sustained Financial Improvement Business Commercial Effectiveness and Growth Priorities $332M Common / Core Processes and Systems
Slide 8: Financial Review
© 2024 Dana Financial Review 8
Slide 9: 2024 Q2 and YTD Financial Results
© 2024 Dana 2024 Q2 and YTD Financial Results Changes from Prior Year § Lower sales driven by currency impacts and lower commodity recoveries ($ in millions, except EPS) Q2 ‘24 Q2 ‘23 Change YTD ‘24 YTD ‘23 Change § Increased production efficiency, company-wide cost Sales $ 2,738 $ 2,748 $ (10) $ 5,
Slide 10: 2024 Q2 Sales and Profit Changes
© 2024 Dana 2024 Q2 Sales and Profit Changes Sales § Higher organic sales driven by renewed vehicle programs, new $19M $11M $2,748M $2,738M business, and market share ($2M) ($22M) ($16M) gains, offset by lower demand in off-highway end markets § End-to-end business execution and production efficienc
Slide 11: 2024 Q2 Free Cash Flow
© 2024 Dana 2024 Q2 Free Cash Flow § Higher cash taxes due to Changes from Prior Year timing of payments and ($ in millions) jurisdictional mix § Working capital requirements increased primarily due to the Q2 ‘24 Q2 ‘23 Change timing of payments Adjusted EBITDA $ 244 $ 243 $ 1 § Reduced capital spen
Slide 12: 2024 FY Financial Guide
© 2024 Dana 2024 FY Financial Guide § Sales growth driven by new Guidance Ranges business backlog, improved end-market demand, new / Change from Change from refreshed programs, and Prior Guide Prior Year market share gains ~$10,700M § Weakening demand for electric -$200M +$145M vehicles driving lowe
Slide 13: 2024 FY Sales and Profit Changes
© 2024 Dana 2024 FY Sales and Profit Changes Sales § Organic growth driven by strong sales, pricing, and ~$65M ~$230M ~$10,700M market share gains ~$10,555M ~($40M) ~($45M) ~($65M) § Strong conversion on organic growth due to improved efficiencies and cost savings actions § Cost recovery actions exp
Slide 14: 2024 FY Free Cash Flow
© 2024 Dana 2024 FY Free Cash Flow § Raising full-year guidance due Changes from Prior Year to lower capital spending ($ in millions) § Higher profit and lower capital investment requirements driving improvement over last 2024 2023 Change year Adjusted EBITDA $ ~925 $ 845 $ ~80 § Increase in net int
Slide 15: Appendix
© 2024 Dana Appendix 15
Slide 16: 2024 Q2 Sales and Profit Change by Segment
© 2024 Dana 2024 Q2 Sales and Profit Change by Segment Light Vehicle Drive Systems Off-Highway Drive and Motion Systems $842M $60M $8M $4M $1,132M $746M $1,066M ($57)M ($13)M ($2)M ($8)M ($6)M ($16)M Sales Sales 2023 Traditional EV Organic Currency Commodities 2024 2023 Traditional EV Organic Divest
Slide 17: Segment Profiles
© 2024 Dana Segment Profiles Light Vehicle Commercial Vehicle Off-Highway Power Drive Systems Drive and Motion Systems Drive and Motion Systems Technologies Year to Date 6/30/2024 Year to Date 6/30/2024 Year to Date 6/30/2024 Year to Date 6/30/2024 Deere Other GM 9% 13% PACCAR AGCO 17% 22% 7% Renaul
Slide 18: Diluted Adjusted EPS
© 2024 Dana Diluted Adjusted EPS DANA INCORPORATED DANA INCORPORATED Reconciliation of Net Income Attributable to the Parent Company to Reconciliation of Net Income Attributable to the Parent Company to Adjusted Net Income Attributable to the Parent Company and Adjusted Net Income Attributable to th
Slide 19: Segment Data
© 2024 Dana Segment Data DANA INCORPORATED DANA INCORPORATED Segment Sales and Segment EBITDA (Unaudited) Segment Sales and Segment EBITDA (Unaudited) For the Three Months Ended June 30, 2024 and 2023 For the Six Months Ended June 30, 2024 and 2023 Three Months Ended Six Months Ended (In millions) J
Slide 20: Segment Data Continued
© 2024 Dana Segment Data Continued DANA INCORPORATED DANA INCORPORATED Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) Reconciliation of Segment and Adjusted EBITDA to Net Income (Unaudited) For the Three Months Ended June 30, 2024 and 2023 For the Six Months Ended June 30, 2
Slide 21: Cash Flow
© 2024 Dana Cash Flow DANA INCORPORATED Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow (Unaudited) Three Months Ended (In millions) June 30, 2024 2023 Net cash provided by operating activities $ 215 $ 256 Purchases of property, plant and equipment ( 111) (122) Free cas
Slide 22: Non-GAAP Financial Information
© 2024 Dana Non-GAAP Financial Information 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 postretiremen
Slide 23: Value Others | Inspire Innovation | Grow Responsibly | Win Together
Value Others | Inspire Innovation | Grow Responsibly | Win Together