![]() Honesty & Integrity Good Corporate Citizen Open Communication Continuous Improvement Honesty & Integrity Good Corporate Citizen Open Communication Continuous Improvement Dana Holding Corporation Deutsche Bank Global Auto Industry Conference January 12, 2016 1 Exhibit 99.2 © 2016 Dana Limited. This presentation contains copyrighted and confidential information of Dana Holding Corporation and/or its subsidiaries. Those having access to this work may not copy it, use it, or disclose the information contained within it without written authorization of Dana Holding Corporation. Unauthorized use may result in prosecution. |
![]() © Dana 2016 Safe Harbor Statement 2 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 business, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward- looking statement. Dana’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss important risk factors that could affect our business, results of operations and financial condition. The forward-looking statements in this presentation speak only as of this date. Dana does not undertake any obligation to revise or update publicly any forward-looking statement for any reason. |
![]() Dana Snapshot Founded in 1904 Based in Maumee, Ohio 2015 sales: ~$6 billion* 23,000 people Global operations and customers Over 90 major facilities 25 countries on six continents Customers in over 125 countries 16 R&D centers *Preliminary 3 |
![]() Dana Overview Dana Core Technologies Vehicle Driveline: Axles, driveshafts, transmissions, and tire management Vehicle Engine and Transmission: Gaskets and seals, cam cover and oil pan modules, heat shields, and fuel cell plates Vehicle Engine and Transmission: Oil cooling, battery and electronics cooling, charge air cooling, exhaust-gas heat recovery, hydrogren reformers, and balance-of-plant solutions Dana Business Units Light Vehicle Driveline 41% Commercial Vehicle Driveline 25% Off-Highway Driveline 17% Power Technologies 17% End Markets Light Vehicles Off-Highway Heavy Vehicles 4 |
![]() Did You Know? Adjacent Applications 5 |
![]() Dana: Integrated Power Solutions Commercial Vehicle Light Vehicle Off-Highway Power Technologies Driveshafts Axles • Front and Rear Axles • E-Axles • Disconnect Systems • Thermal Management • All-Wheel-Drive Systems Transmissions • OH Transmissions • Sealing & Thermal • Variglide ® CVT Engines Internal Combustion • Sealing & Thermal • Hydraulic PowerBoost ® Electric & Hybrid Drive • Battery Thermal Management Hydrogen Fuel Cells • Bi-Polar Metallic Plates Vehicle System Dana Business Unit 6 © Dana 2016 |
![]() © Dana 2016 2007-2008 Reorganize 2009-2012 Re-Emerge 2013-2015 Build 2016 Grow • Improved structure • Strong balance sheet • Divested non-core • New operating system • Lower cost structure • Focused operations • Financial strength • New technology • New business awards • Operational excellence • Continue organic growth • Inorganic growth Dana Evolution 7 © Dana 2016 |
![]() 2016 - 2018 Sales Backlog Flow by Year Sales Backlog 8 2015 - 2017 Backlog 2015 - 2017 Updated Backlog 2016 - 2018 Backlog Sales Backlog Comparison $560 100 80 10 $250 By BU +$70 Sales Backlog Providing Top-Line Growth in Excess of Market Factors Represents new business awards, net of any known losses. Excludes replacement business wins By Region By Customer $750 $750 ($ in millions) 2015-2017* $ 730 Market 5 New Bus 135 Increase $ 140 Fx (65) Market Share (125) 2015-2017 Updated $ 680 $(50) New business wins increased sales backlog despite currency and CV market share change * As presented in Jan. 2015 $730 $680 $750 $150 $525 $750 $375 $225 2016 Increment 2017 Increment 2018 Nissan 19% Ford 17% FCA 16% Toyota 9% VW 7% GM 4% JLR 4% Honda 3% JLG 3% Other 18% NA 38% EU 36% SA 8% AP 18% © Dana 2016 |
![]() 2017 Ford F-250/350/450 Super Duty Front and Rear Driveshafts, Front and Rear Axles, Charge Air, Transmission & Diesel Fuel Coolers, Heat Shields, Valve Stem Seals, Cam Cover 2016 Volkswagen Touran Transmission Gaskets, Cylinder Head Gaskets, Secondary Gaskets 2016 Chevrolet Camaro Engine Oil Cooler, Transmission Oil Cooler, Heat Shields, Cylinder Head Gaskets, Secondary Gaskets 2016 Ford Galaxy Engine Oil Cooler and Transmission Oil Cooler, Exhaust Gaskets, Cylinder Head Gaskets 2016 Opel Astra Engine Oil Cooler, Heat Shields, Secondary Gasket 2016 Mercedes-Benz GLC Cylinder Head Gaskets, Heat Shields, Secondary Gasket 2016 Chevrolet Malibu Engine Oil Cooler, Valve Stem Seals, Heat Shields, Cylinder Head Gaskets 2017 Chrysler Town & Country Exhaust Gaskets, Heat Shields 2016 Nissan Titan Exhaust Manifold Shields, Front and Rear Driveshafts 2016 Ford Taurus Engine Oil Cooler, Transmission Oil Cooler 2016 Volkswagen Tiguan Cylinder Head Gaskets, Transmission Gaskets, Secondary Gaskets 2017 Mercedes-Benz E-Class Cylinder Head Gaskets, Heat Shields, Secondary Gaskets 2016 Renault Megane Engine Oil Cooler, Cylinder Head Gaskets, Transmission Pump Gaskets, Secondary Gaskets 2017 Jaguar F-Pace Front Propshaft and Rear Axle 2016 Toyota Hilux Front and Rear Driveshafts and Rear Differential 2016 BMW X1 Cylinder Head Gasket, Secondary Gaskets, Engine Oil Cooler, Heat Shields Key Program Launches Light Vehicle Driveline and Power Technologies Strong Launch Cadence with Diversified Customers 9 © Dana 2016 |
![]() Key Program Launches Commercial Vehicle and Off-Highway Daimler New Model Spicer AG S130 and S145 MAN VW Constellation Truck Spicer 1710 / 1810 / SPL 250 Driveshafts Lonestar Truck Group TBD Spicer Glider Axles Eicher 2100 8x2; 6x4 Tipper Spicer Driveshafts Sany 5T Wheel Loader Spicer Rui Ma TZL 16 and Spicer TE16 Fendt AG Tractor X1015 Spicer 990 Axle Claas A7X AG Tractor Spicer Modular Ag Axles Deutz Series 6-7 AG Tractor Spicer Modular Ag Axles Kubota M Serie AG Tractor Spicer M40 Ag Axles Dynapac Single Drum Compactor Spicer 192 Axles New Model Spicer Full Air Suspension New Model Spicer Drive Axle, Steer Axle, and Driveshafts Commercial Vehicle OE Strong Launch Cadence with Diversified Customers Commercial Vehicle OE 10 © Dana 2016 |
![]() © Dana 2016 Robust Technology Pipeline 11 Technology Product Market AdvanTEK ® Dual Range Disconnect™ Electronics Cooling Spicer PowerBoost Optimized Tire Pressure Management Hybrid Transmission AdvanTEK ® Disconnecting Drive Unit Concept Production Concept Concept Concept Concept Production Production Production Production Concept Production |
![]() Opening New Commercial Channels Construction and Agriculture Equipment 12 In Field Evaluation with Customer Waste Energy Recovery and Re-use Incremental Vehicle Content Up to 40% Fuel Savings Dana Spicer PowerBoost ® |
![]() © Dana 2016 Opening New Commercial Channels Passenger Car and Small SUV 13 AdvanTek ® Disconnecting All Wheel Drive Unit Incremental Vehicle Content Global Vehicle Platform Industry Leading Technology Incremental to 2016-2018 Backlog |
![]() Go-Forward Priorities Enhance competitive position and grow our core business Relentless focus on customer satisfaction Sustained investment in innovative technologies and differentiated products Continue to grow organically Pursue complementary inorganic opportunities Continue driving profit margin improvement Accelerate lean manufacturing initiatives to eliminate waste and reduce cost Ensure seamless launch of new business programs Improve CV while continuing strong performance in LV, OH, and PT Maintain a strong balance sheet Continue capital investment discipline to drive returns Retain flexibility to take advantage of new opportunities Return excess capital to shareholders 14 © Dana 2016 |
![]() © Dana 2016 LV CV OH PT MKT Sales Impacted by FX 2016 Market Expectations and Dana Sales Impact vs 2015 Key Market Themes NA Light vehicle markets remain strong. Commercial vehicle markets down from the peak SA Economic uncertainty and high interest rates stifling demand; Fx headwinds EU Expected to remain relatively flat; Fx headwinds continue AP Some market growth offset by currency Worldwide Agriculture demand remains depressed; Construction flat 15 Markets Mostly Flat; New Business Offsetting Currency Headwinds in S. America and Asia LV CV OH PT MKT LV Market Gains offset by CV LV CV OH PT MKT Sales Impacted by FX North America Europe LV CV OH PT MKT LV New Business Offset by FX South America Asia Pacific |
![]() Sales and Adjusted EBITDA 16 See appendix for comments regarding the presentation of non-GAAP measures 2015 Prelim. ~$6.0B* FX Adjusted $5.7B- $5.8B- 2016 Target $5.8B- $6.0B- FX $(200)-$(300)M +$100 - $200M 2015 Prelim. ~$655M* FX Adjusted $625M- $635M- Volume Mix $15M - $25M Performance ~$10M 2016 Target $640M- $670M- +$15 - 35M 2016 Targets Sales $5.8 – $6.0 B Adjusted EBITDA $640 – $670 M Diluted Adjusted EPS* $1.65 – $1.80 Margin 11.0 – 11.2% Capital Spend $280 – $300 M Free Cash Flow $160 – $180 M Tax Rate 30% 24% 27% Significant new business helping to offset currency and market headwinds Margin improvement driven by new business and lower cost structure Strong cash flow including ongoing capital investment to support future growth 10.9% Margin 11.0-11.2% Margin * Preliminary 2015 results * Excludes the impact of share repurchases after 12/31/15 Backlog ~$150M Market/Mix $(50) - $50M FX $(20)-$(30)M © Dana 2016 |
![]() Strength Driving Shareholder Value 17 Invest in Current Business / Organic Growth Protect Access to Capital Shareholder Value Initiatives Inorganic Growth Initiatives Focus 2015 Capital Spend $265M* Rating: BB+ Outlook: Stable Returned $1.4B Via Share Repurchases M&A Focus: Bolt-on, adjacent <$500M * Preliminary 2015 2016 Capital Spending Target: $280-300M M&A Execution: Bolt-on, adjacent Right opportunity Right value Additional $300M share repurchase auth. through 2017 DANA Highest capital distribution in peer group Dana returned 46% of average market cap Dana distributed 184% of free cash flow © Dana 2016 |
![]() Why Dana? Complementary core businesses Differentiating technology and innovation that drives value Strong global footprint and brand recognition Positioned for top line growth Major program replacement business secured New business growth with a strong sales backlog Increased focus on complementary inorganic opportunities Positive demand outlook in key markets Strong financial position Robust free cash flow generation Strong balance sheet and disciplined capital allocation Profit margin improvement opportunities Demonstrated commitment to return excess capital to shareholders Proven ability to generate solid returns in challenging markets Driveline Technologies Sealing Solutions Thermal Management 18 Core Expertise © Dana 2016 |
![]() © Dana 2016 Appendix Non-GAAP Financial Information The preceding slides refer to Adjusted EBITDA, which we’ve defined to be earnings from continuing and discontinued operations before interest, taxes, depreciation, amortization, equity grant expense, restructuring expense and other nonrecurring items (gain/loss on debt extinguishment, pension settlements or divestitures, impairment, etc.). Adjusted EBITDA is a primary driver of cash flows from operations and a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. Adjusted EBITDA should not be considered a substitute for income (loss) before income taxes, net income (loss) or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Diluted adjusted EPS is a non-GAAP financial measure which we have defined as adjusted net income divided by adjusted diluted shares. We define adjusted net income as net income attributable to the parent company excluding any nonrecurring income tax items, restructuring and impairment expense, amortization expense and other nonrecurring items (as used in adjusted EBITDA), net of any associated income tax effects. We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies. Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported under GAAP. Free cash flow is a non-GAAP financial measure which we have defined as cash provided by (used in) operating activities, less purchases of property, plant and equipment. We believe this measure is useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Free cash flow is neither intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported under GAAP. Free cash flow may not be comparable to similarly titled measures reported by other companies. Please reference the “Non-GAAP financial information” accompanying our quarterly earnings conference call presentations on our website at www.dana.com/investors for our GAAP results and the reconciliations of these measures, where used, to the comparable GAAP measures. |