Dana Incorporated : Q1 2024 Dana Incorporated Earnings Conference Call

2024 First-Quarter Earnings Conference Call

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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 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.

© 2024 Dana

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Agenda

Craig Barber	James Kamsickas	Timothy Kraus
Senior Director, Investor	Chairman and	Senior Vice President and
Relations and Corporate	Chief Executive Officer	Chief Financial Officer
Communications

Introduction

Business Review

Financial Review

Highlights

Q1 Financial Results

Key Highlights

sales

$91 million

from prior year

adjusted EBITDA

$19 million

from prior year

free cash flow

$118 million

from prior year

Company-Wide efficiency improvements

End market demand stable

Financial outlook remains strong; higher free cash flow

39%

• Conversion on traditional organic sales in Q1
• Supports full-year conversion target

~$100M

• Organic Sales growth in Q1
• Full-Yearmarket forecast unchanged

$75M

• Revised full-year FCF outlook
• 50% increase

© 2024 Dana

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Company-Wide Efficiency Improvements and Improving Customer Order Patterns Driving Profit and Cash Flow Growth

Business Environment

2024 Outlook

Company-wide

Efficiencies

Supply

Chain

New Programs &

Refreshed

Base Business

• Improved customer production stability increasing productivity
• Continued lowering production costs
• Efficiency improvements in all areas of the enterprise
• Net commodities expected to be sales and profit headwind
• Steel prices expected to be mostly flat in 2024
• Commodity recoveries reversing as input costs decline
• Refreshed, conquest, and new business growth
• Share gains partially offsetting market in Commercial Vehicle
• Normalized annual launch cadence driving higher efficiency

End-Market Outlook

Market

From last year

Agriculture

Construction

Mining

Light Truck

Medium-Duty Truck

Heavy-Duty Truck

Update

Softening

No Change

No Change

No Change

Slight

Improvement

Slight

Improvement

Dana

Industry Trends	Cost Inflation Moderating		OEM Production Stable		EV Demand Fluctuating

PACE Award: Electro-Mechanical, Infinitely Variable Transmission

Dana's Patented Electro-Mechanical, Infinitely Variable Transmission (EMIVT)

operates in engine-only, hybrid, or full-battery electric modes

Improved Sustainability		Enhanced Performance		Safer Working Environment		Reduce Total Cost
	and Functionality			of Ownership

• Up to 40% better fuel economy
• 28% faster acceleration
• Reduction of brake wear
• Zero-Emissionand low-noise
• Functional-Safetycompliance
• Pump and roll operation
• Regenerative braking

© 2024 Dana

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Industry and Customer Recognition

© 2024 Dana

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Recognition Demonstrates Dana's Ethical Foundation, Customer Focus, and Technological Expertise

Financial Review

A P R I L 3 0 , 2 0 2 4

2024 Q1 Financial Results

• Higher sales driven by renewed vehicle programs, new business, and market share gains in commercial vehicle market
• Increased production efficiency, company-wide cost improvement actions, and more stable customer order patterns drove higher profitability
• Announced divestiture of European hydraulics business within the Off-Highway segment resulted in a $29M impairment charge and $7M of additional income tax expense due to valuation allowance adjustments, negatively impacting EPS by $0.25/share; transaction is expected close in Q2
• Improved cash flow driven by higher profit and lower working capital requirements

Changes from Prior Year

($ in millions, except EPS)	Q1 '24	Q1 '23	Change
Sales	$	2,735	$	2,644	$	91
Adjusted EBITDA		223		204		19
Margin		8.2%		7.7%		50 bps
Loss on Business Held for Sale		(29)		0		(29)
EBIT		70		90		(20)
Interest Expense, Net		35		30		5
Income Tax Expense		37		30		7
Net Income (attributable to Dana)		3		28		(25)
GAAP Diluted EPS	$	0.02	$	0.19	$	(0.17)
Operating Cash Flow		(102)		(170)		68

© 2024 Dana

See appendix for comments regarding the presentation of non-GAAP measures

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Higher Sales, Profit and Operating Cash Flow Driven by Strong Execution

2024 Q1 Sales and Profit Changes

• Higher organic sales driven by renewed vehicle programs, new business, and market share gains in commercial vehicle market partially offset by lower sales in off-highway agriculture markets
• Higher demand for battery cooling products driving increased EV sales
• Company-Widecost management and production efficiency more than offset inflation
• Positive contribution of current EV programs offset by engineering and development spending for future programs
• Minimal impact from currency translation
• Lower commodity costs resulting in lower sales recoveries; profit benefit of lower input costs offset by the cost true-ups with customers

		Sales
$2,644M	$75M	$23M	$3M	($10)M	$2,735M
2023	Traditional	EV Organic	Currency	Commodities	2024
	Organic

Adjusted EBITDA

$204M	$29M				$223M
		($		($1)M
		4)M	($		5)M

7.7%	~90 bps	~(20) bps	~0 bps	~(20) bps	8.2%
Margin	Margin

2023 Traditional EV Organic Currency Commodities 2024 Organic

See appendix for comments regarding the presentation of non-GAAP measures

© 2024 Dana

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Strong Performance Driven by Company-Wide Efficiencies