Dana Incorporated · NYSE:DAN
Dana — Investor Presentation (March 2005)
40 slides from Dana's investor presentation, Mar 1, 2005
Slide 1: Investor Relations Update
Investor Relations Update March, 2005
Slide 2: Dana At A Glance
Dana At A Glance » Headquartered in Toledo, Ohio > Founded in 1904 | » 2004 Sales of ~ $9.1B > Market Cap ~ $2.1B » 46,000 Employees » 28 Countries / 176 Major Facilities S&S Dana Corporation. March 1, 2005
Slide 3: Business Units
Business Units Automotive Systems Torque and traction technologies (axles, driveshafts, and drivelines), structural and chassis technology solutions (structures and steering and suspension components), and systems integration technology (including advanced modularity concepts and systems) Sealing sy
Slide 4: Two Focused Business Units
Two Focused Business Units Heavy Vehicle Technologies & Systems Group Automotive Systems Group a Based on full-year sales ended Dec. 31, 2004 DANA a Dana Corporation. March 1, 2005
Slide 5: Major Markets
Major Markets >» Automotive - Passenger Cars - Pickup Trucks - Sport Utility Vehicles - Minivans ~ Crossover Vehicles ( > Commercial Vehicle Medium & Heavy Trucks (Class 5-8, 6-15T) Bus & Motor Coaches Trailers > Off-Highway — Construction Vehicles — Agricultural Tractors — Leisure/Utility Vehicles
Slide 6: Core Products
Core Products Axles Driveshafts Structures \ Modules Bearing & Sealing Products Fluid Systems & Systems Dana Corporation. March 1, 2005.
Slide 7: Dana's Product Capability
Dana’s Product Capability
Slide 8: Markets, Products & Competitors
Markets, Products & Competitors Markets & Core Products Major Competitors Automotive Axles, Driveshafts and Drivelines, MMAGNA : ¥ Misteorr IVa JW=R “¢ Se AUTOMOTIVE ~*~ Ci + Various vertically i, x integrated operations Structures, Modules and Systems Sealing, Thermal Management, . . Fluid Transfer
Slide 9: Diverse Markets & Customer Base
Diverse Markets & Customer Base Diversified By Markets Dana's Customers @ Light Vehicle B Commercial O Off-Highway @ Detroit Big 3 m@ Next 5 m Other Next 5: PACCAR, Navistar, Renault-Nissan, Volvo Truck, Toyota = Goal: Continue to increase sales per customer Lo Based on full-year sales ended Dec. 31
Slide 10: Geographic Diversification
Geographic Diversification 100% - GOAL 80% - 60% - 40% - 20% + O 1 o = <x iS a ie) za a" 0% | 1999 2004 2009 Hi North America 1 Europe Hi South America BB Asia-Pacific BW Rest of World GOAL: 50% of Sales in North America by 2009 a Based on full-year sales ended Dec. 31, 1999 and Dec. 31, 2004 Qa Dan
Slide 11: Dana Customer Base
Dana Customer Base Automotive Gord lor Gompany, >) TOYOTA a v Secreto =— —_ General Motors J _ GUAR oe SUBARU. uls|o}psj|a us PSA PEUGEOT CITROEN \ wy Auol [F/T/A/T | iseou Mahindr< HOLOEN 11 Dana Corporation. March 1, 2005
Slide 12: Dana Customer Base
Dana Customer Base Commercial Vehicle & Off-Highway a GD ) —— 4 CATERPILLAR’ UArF | fF KOMATSU lxe — ro a (ABA: 4 3 re) KA / ~ 9 Trailmobile A% = WESTERN a mt IVECO Dana Corporation. March 1, 2005. 12
Slide 13: 2005 Light Vehicle Production
2005 Light Vehicle Production (Units Millions) North America South America 20 a 15.9 15.8 15.8 16.1 15 3 24 26 2.7 1.9 10 2 5 1 a 10] T , 2003 2004T 2005P 2006P 2003 2004T 2005P 2006P Europe Asia Pacific 25 3 30 20.5 20.7 21. 23.9 19.6 23. 20 25 sate 21.8 22.7 20 15 10 5 0 2003 2004T 2005P 2006P 200
Slide 14: 2005 NAFTA Vehicle Production
@ 2005 NAFTA Vehicle Production wees Heavy (Class 8) + 13.1% 700 Medium (Class 5-7) + 10.3% 600 - 500 + 400 + 300 5 1999 2000 2001 2002 2003 2004T 2005P 2006P OClass 5-7 O@Class 8 Dana Corporation. Dated March 1, 2005. Slide contains forward-looking information. Actual results may differ materially
Slide 15: 2005 Off-Highway Vehicle Production
2005 Off-Highway Vehicle Production* North America South America 450 4 353 361 80 73 onl 325 es 65 Be 281 sn 250 4 40 150 4 20 50 4 T T T oO T T T -50/ = 2003 2004T 2005P 2006P 2003 2004T 2005P 2006P Western Europe Asia Pacific 600 600 526 549 564 480 500 452 450 453 447 500 400 400 300 300 200 200
Slide 16: 2005 Off-Highway Environment
2005 Off-Highway Environment (Vehicle Production) NA. Europe S.A Asia Mining Forestry e sm wy Agriculture 2% e Lf wy Material Handling we oa oe OPE Leisure/Utility SQ Dana Corporation. Dated March 1, 2005. Slide contains forward-looking information. 16 Actual results may differ materially due to fac
Slide 17: Anticipate Customers' Needs
Anticipate Customers’ Needs Controlled noise, vibration, and harshness Fuel Economy Handling Vehicle Performance © Dana Corporation. March 1, 2005. 17
Slide 18: 2004 Highlights
2004 Highlights » Year-over-year sales increased 14% to $9.1 billion » Renewed focus on global OE customers —Adopted disciplined program management approach — from quotation to launch —Improved PPM performance by more than 75% » Excluding unusual items, net income increased 43% despite steel costs »
Slide 19: 2005 Strategic Goals
2005 Strategic Goals » Profitable sales growth at twice the rate of the global vehicle market — Reinvest in business: ¢ New technologies ¢ New products ¢ Strategic acquisitions and joint ventures — Deliver best-quality products, on-time to our customers — Expand geographically in growth markets Am.
Slide 20: 2005 Strategic Goals
2005 Strategic Goals » Increase earnings through accelerated cost and productivity initiatives — Leverage our new, consolidated purchasing function — Deploy lean manufacturing in every plant — Apply value engineering to every product — Continue standardizing administrative processes » Maintain a str
Slide 21: Cost Savings Through Relentless Efficiency
Cost Savings Through Relentless Efficiency A Consolidate purchasing Promote lean manufacturing techniques rvr wT WW Initiatives Instill value engineering discipline Standardize administrative processes » ROIC | Productivity » Working capital/sales Metrics | » Gross margin _> Assets/sales <Cana> a 21
Slide 22: Cumulative Net New Business
Cumulative Net New Business ($ Millions) 2,400 - 2,000 | 1,600 - 1,200 Minuses J Heavy Vehicle J ~400 Techvalogies -800 + & Systems -1,200 - Hi Automotive , Syst 1,600 2005 2006 2007 ¥erems Net $410M T Net $250M T Net $300M T vs. 2004 vs. 2005 vs. 2006 Estimates based on Dana’s review of the project
Slide 23: Dana's Net New Business
Dana’s Net New Business ($ Millions) 2005 006 2007 Jan-2005 ASG $285 $150 $155 HVTSG 125 100 145 TOTAL $410 $250 $300 Estimates based on Dana’s review of the projected production schedules of our customers Ana <> Dana Corporation. March 1, 2005. 23
Slide 24: 2005 North American International Auto Show Worldwide Production Launches
2005 North American International Auto Show 23 Worldwide Production Launches >» BMW 5-Series AWD >» Lexus GX 470 >» Cadillac STS-V >» Lexus RX 330 > Chevrolet Z06 Corvette Thundercloud >» Dodge Charger r Lincoln Zephyr > Ferrari Superamerica © Eneel Mane T ‘ >» Mercedes-Benz M-Class E Fore Fusion >»
Slide 25: 2005 Launches
2005 Launches Z06 Corvette Hummer H3 Land Rover LR3 Dana Corporation. March 1, 2005.
Slide 26: Focus on Technology
Focus on Technology Wlicrowave Plasma Technology Harnesses microwave energy and plasma formed at atmospheric pressure to heat-treat and coat metal parts. Can improve material properties while significantly reducing both cycle times and operating costs. Magnetic Pulse Welding Enables the joining of s
Slide 27: Financial Overview
Financial Overview
Slide 28: Financial Summary
Financial Summary ($ Millions, except per share data) Sales Net Income (loss) Earnings per share Net income, excluding unusual items Earnings per share, excluding unusual items an Sr Dana Corporation. March 1, 2005 Fourth Quarter 2004 $ 2,300 $ (133) $ (0.89) $ 0.41 Full Year 2003 2004 2003 $ 2,050
Slide 29: Income Statement
Income Statement With DCC on an Equity Basis* _ Fourth Quarter Full Year ($ Millions) 2004 2003 20 2003 Net sales $ 2,300 $ 2,050 $ 9,056 $ 7,918 Other income (expense) (121) 18 (78) 91 2,179 2,068 8,978 8,009 Cost of sales 2,184 1,883 8,361 7,293 Realignment charges 66 5 72 SG&A expense 115 107 472
Slide 30: Dana Credit Corporation
Dana Credit Corporation Portfolio Analysis ($ Millions) 12/01 Total Portfolio Assets - $2,200 Wi Value-Added Services ® Real Estate a i Dana Corporation. March 1, 2005 12/04 Total Portfolio Assets - $830 Capital Markets Retained 30
Slide 31: Net Debt and Capitalization Progress
Net Debt and Capitalization Progress ($ Millions) Net Debt/Capital % $3,000 70% $2.500 60% $2,000 50% $1,500 40% $1,000 30% $500 20% $0 10% » Ss Ss Sc Ss sv os S'< ¥ & * Pe Ng Ss s ¢ Na PF HF cek oF oF Keg go? OF yok go? hy os oo® SS : Dana Corporation. March 1, 2005.
Slide 32: Capital Structure
Capital Structure With DCC on an Equity Basis* ($ Millions) Dec-03 Operations Other Dec-04 Short-term debt $ 260 $ 25 $ 4 $ 289 Long-term debt 2,087 (445) (31) 1,611 Borrowings 2,347 (420) (27) 1,900 Cash 664 (45) - 619 Net debt $1,683 $ (375) $ (27) $ 1,281 Equity $ 2,050 $ 9 $ 376 $ 2,435 NetDebt/
Slide 33: December 31, 2004 Debt Portfolio
December 31, 2004 Debt Portfolio With DCC in an Equity Basis ($ Millions) Average Life - 9.5 Years 1000 - r 800 + © 600 - = 400 - 289 eae * 9500 iT 6 153 126 = 0 4 : : i om | 2005 2006 2007 2008 2009 2010 2011 2015 2028 2029 mw Domestic STD m@ Sr Notes . Other Pe Maturities do not reflect swap valua
Slide 34: December 31, 2004 Liquidity
December 31, 2004 Liquidity Excluding DCC ($ Millions) Committed Drawn Available 5-year bank facility $ 400 $ - $ 400 Accts receivable program 200 - 200 Bank lines 120 $ 65 55 Bank facilities 720 65 655 Amount due DCC $ 185 $ (185) Total short-term facilities $ 250 $ 470 Plus cash 619 Total $ 1,089
Slide 35: 2005 Guidance
2005 Guidance ($ Millions, except per share data) Sales $9,600 Net Income* $210 - $245 EPS* $1.40 - $1.62 * Excludes unusual items <fana> DANA Dana Corporation. Dated March 1, 2005. Slide contains forward-looking information. Actual results may differ materially due to factors discussed on slide 39
Slide 36: 2005 Free Cash Flow Outlook
2005 Free Cash Flow Outlook With DCC on an Equity Basis* (Millions) Sources: Net income $210 - $245 Depreciation 300 Working Capital 100 $610 - $645 Less: Capital spend (325) Restructuring payments (30) Other (80) $ (435) Free Cash Flow $175 - $210 <Pans> “Comparable GAAP measures available at www.d
Slide 37: 2005 Steel Outlook
2005 Steel Outlook » Estimated adverse impact of $100 million after tax, net of customer recoveries, versus 2003 levels » Cost-reduction programs underway >» Scrap prices are down and demand is moderating, but prices are not following » Uncertainty exists <fans> Dana Corporation. Dated March 1, 2005
Slide 38: Dana Consolidated ROIC
14.20% Dana Consolidated ROIC (Last 12 Months Total Income/5-Quarter Rolling Average Invested Capital) 18% 7 14% 12% 10% 7 9.10% 9.20% 8% 1 e.eo% a0% 6% 7 a% [_ 2% 0% “ T T a Goal: 15% ROIC after tax over the Cycle Qo Return excludes unusual items. Invested capital reflects DCC on an equity basis. 3
Slide 39: Forward-Looking Statements
Forward-Looking Statements 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 expectations based on our current information and assumptions. Forward- l
Slide 40: www.dana.com
www.dana.com