Dana Incorporated · NYSE:DAN
Dana — Deutsche Bank Global Auto Industry Conference 2017
21 slides from Dana's conference presentation, Jan 10, 2017
Slide 1: Dana Incorporated Deutsche Bank Global Auto Industry Conference
Dana Incorporated Deutsche Bank Global Auto Industry Conference January 10, 2017 Jonathan Collins Executive Vice President and Chief Financial Officer James Kamsickas President and Chief Executive Officer Exhibit 99.2
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: Snapshot
Founded in 1904 Based in Maumee, Ohio 2016 sales: ~$5.8 billion* ~25,000 people Global operations and customers – Over 90 major facilities – 25 countries on six continents – Customers in more than 130 countries 16 Technical Centers Snapshot *Preliminary
Slide 4: Product Overview
Engine Transmission Axles Driveshaft Product Overview Seals & Gaskets Battery Cooling Electronics Cooling Engine Cooling Hydraulic Hybrid Sealing & Cooling Active Warm Up Planetary Continuously Variable Transmissions Hydrostatic/Hydrodynamic/ Powersplit Transmissions Aluminum Driveshafts Steel Drive
Slide 5: “Dem
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Slide 6: Slide 6
Slide 7: Market Overview
North America South America Europe Asia Pacific Market Overview North American economic growth expected to reach about 2% in 2017 U.S. dollar likely to remain strong compared with other global currencies Infrastructure spending expected to increase over the next several years Uncertainty remains aro
Slide 8: Business Overview
Light Vehicle Driveline Off-Highway Drivetrain Commercial Vehicle Driveline Power Technologies Business Overview North American light-vehicle production volume is expected to be flat in 2017 Global light-truck production is expected to see modest improvement Dana successfully launched several progra
Slide 9: Enterprise Strategy: Shifting Into Overdrive
Strengthen Customer Centricity Leverage the Core Commercialize New Technology Expand Global Markets Accelerate Hybridization & Electrification Operational Excellence Design & Engineering Manufacturing Purchasing Aftermarket Acquisitions Shifting Into Overdrive Enterprise Strategy
Slide 10: Inorganic Growth
Activity Strategic Rationale Business acquisition closed December 2016 Secures local supply requirements for Brazilian market Improves cost structure through vertical integration Business acquisition to close Q1 2017 Doubles Off-Highway Driveline addressable market through technology to enter the tr
Slide 11: Organic Growth Vectors
Strengthen Customer Centricity Commercialize New Technology Accelerate Hybridization & Electrification Expand Global Markets Organic Growth Vectors Durastar Package Spicer ® SmartConnect™ Disconnecting AWD MultiTwister ® Air/Oil Separator Enterprise Strategy Elements Driving Organic Growth
Slide 12: RAN Ge FR
RAN Ge FR COMING:TO NORTH AMERICA IN 2019 z EQUIPPED >)?
Slide 13: Outlook and Financials
Outlook and Financials Jonathan Collins Executive Vice President and Chief Financial Officer
Slide 14: Preliminary Results: 2016 Financials
Preliminary Results Guidance range 2016 Financials Preliminary results deliver on commitments and expectations Preliminary sales, adjusted EBITDA, and margin are all in line with expectations Adj. EBITDA benefits from $15m of gains in recently divested Dana Companies Capital spend, FCF and diluted A
Slide 15: Guidance: 2017 Financials
Guidance With Valuation Allowance Release 2017 Financials Sales Adjusted EBITDA Margin Capital Spend Free Cash Flow Diluted Adjusted EPS ~$5.9B ~$675M ~$60M ~$710M 11.4% ~$350M ~$360M ~$6.3B ± $100M ~$1.60 ± $15M ± 10bps 2017 guidance provided both with and without impact of pending Brevini acquisit
Slide 16: 2017 Sales and Profit Growth
~[VALUE]M ~[VALUE]M ~[VALUE]M ~11.3% ~11.4% ~11.3% 2017 Sales and Profit Growth ’17 guidance improves over ’16 and progresses toward ’19 See appendix for comments regarding the presentation of non-GAAP measures ~$(0.2)B ~[VALUE]M ~[VALUE]M ~$(15)M ~[VALUE]M ~$5.8B ~$0.3B ~$5.9B ~$0.4B ~$6.3B 2016 P
Slide 17: Organic Growth Update
$175 $475 $750 2019 Backlog 2019 Organic Growth Organic Growth Update NA 60% EU 15% SA 10% AP 15% 2016 Base $1B organic sales growth is supported by $750M of backlog Backlog includes: booked incremental new business net of any lost replacement business Backlog remains strong due to new business wins
Slide 18: Financial Trends Including Acquisitions
$652 $660 ~[VALUE] ~ [VALUE] 5% 6% 7% 8% 9% 10% 11% 12% 13% $5.8 $5.6 $0.3 $0.2 Sales Adjusted EBITDA Cash Flow Diluted Adj. Earnings Per Share¹ $146 ~[VALUE] ~[VALUE] ~[VALUE] $260 ~[VALUE] ~[VALUE] ~[VALUE] ± 20% ± 5% ~$1.70 10.8% ~ [VALUE] ~[VALUE] ~ 12.8 % 2015A 2016P 2017T 2019T 2015A 2016P 201
Slide 19: 2019 Financial Targets
Sales Growth vs. 2016 Adjusted EBITDA Margin Free Cash Flow % of Sales Diluted Adj. Earnings Per Share¹ 2019 Financial Targets +$1.4B 12.8% 5% $2.60 Assumes release of US tax valuation allowance See appendix for comments regarding the presentation of non-GAAP measures Revised projections include imp
Slide 20: Investment Highlights
Global Presence Cycle Positioning Customer Diversity Solid Balance Sheet Expanding Margins Technology Portfolio Sales Growth Clear Investment Priorities Investment Highlights
Slide 21: Non-GAAP Measures Notes
The preceding slides refer to adjusted EBITDA, a non-GAAP financial measure which we have defined as net income before interest, taxes, depreciation, amortization, equity grant expense, restructuring expense and other adjustments not related to our core operations (gain/loss on debt extinguishment,
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