Dana Incorporated J.P. Morgan Automotive Conference

Thanks, Byron. Okay, great. Thanks for having me.

Excited to be with you today. Promise I won't bore you with a 100-page PowerPoint, but I had a couple, three slides that I thought might be helpful to frame the discussion today. Starting with our second quarter, we reported second quarter results a week ago. Had a really good quarter. Team remains focused on execution. We obviously have a lot going on with the company, and we'll talk about that, I'm sure, in today's conversation. But team remains focused on delivering solid results. You can see sales of just over $2 billion and margins came in at 10.3% or $207 million. Cost savings has been a big part of our story over the last year and a half or so.

We delivered $19 million of incremental cost savings in the quarter, working towards our overall commitment of $325 million that we put in place at the start of the program, and continuing to work on some of the stranded costs that'll be a result of our off-highway spend. So making good progress there. Share repurchases was a big part of our story. When we announced the Eaton deal, we also announced that we would have to pause our repurchase program for 24 months. We were excited to announce that we are restarting the repurchases that will take place between now and the close of the deal. So that'll be worth roughly $200 million that we will execute between now and the end of the calendar year. And that will put us on track to our commitment of $2 billion by the end of 2029.

There's a second piece of the repurchase story, and that's our ability to repurchase stock post-closing of the Eaton deal, and we're working on a solution there to see if we can't restart that part of the program. So more news to come on that front. And then also in the quarter, we gave an update on our Dana 2030 plan, which is a plan that gets the company pre-Eaton to a $10 billion top line and margins in the kind of 14% range. So we gave some updates on some wins on the aftermarket side, as well as some work we're doing on the defense side of the business. So, overall a solid quarter and really appreciate all the hard work from the team to deliver that result. Next, just to talk a little bit about Eaton Mobility.

That's obviously big news for us and excited about the combination of Dana and Eaton Mobility. We expect that transaction to close in Q1 of 2027. Post-close on a pro forma 2026 basis, that will make the company $11 billion in top line and 15% EBITDA margins. As part of the transaction, we've announced $250 million of run rate synergies at the end of the second year of closing. We gave a little bit more color in the earnings call on that 250 and how we expect that to be delivered. Another big part of the message around the combination is in our aftermarket position, we'll have a $1.7 billion aftermarket business with the combined companies. In the graphic there, you can see the picture of the truck.

Really wanted to highlight the complementary products that come together as part of this combination with the blue driveline products being traditional Dana product lines. In the green there, you can see the transmission business that is coming as part of Eaton. It's not shown here, but also as part of the engine, we both supply various components into the engine system. We really see this combination as complementary on many fronts, but from a product and technology standpoint, a lot of synergy between the two groups. My last slide is just kind of the key messages and the key focus for Dana. One is staying focused on execution and delivering our Dana 2030 plan.

That plan is about top-line growth, top-line profitable growth in our traditional markets, as well as aftermarket and some of the adjacencies that we see in the business. It's also about execution and continuing to drive more efficiency in the business on the cost side. Obviously getting ready for day one with the Eaton transaction closing in Q1 of 2027. Working in the share repurchase plan. The deal, I should highlight, will be structured as a split-off, which we think will minimize the churn in the stock as the transaction closes in Q1. Making sure we're ready to deliver on what we think will just be a fantastic combination between Dana and Eaton. I appreciate you giving me a couple of minutes to kind of set the stage on the slides and happy to get into the conversation.

Yeah. A great question. I would say, first of all, I think the core Dana 2030 plan we remain committed to, and we believe that there's real opportunity in the improvements that we will continue to make in the core Dana business. I think the combination of Eaton only accelerates those Dana 2030 plans. If I think about aftermarket as one example, we have aspirations in the Dana 2030 plan to grow our aftermarket business, which requires investments in sales teams on the ground serving the market. Those teams we were going to have to put in place and grow organically. Those groups are in place at Eaton, so we can leverage that outreach, if you will, and provide those folks on the ground with a broader portfolio to serve those customers. So, that's one example. I think the other thing is it brings a better balance between our light vehicle and commercial vehicle segments.

We remain focused on those two core markets. This grows our position in CV, which we believe is good for the company and the overall balance in the portfolio. It brings added scale. So when we talk about synergies, purchasing is one example where we see significant purchasing synergies by bringing the two companies together just via the added scale. There are just a number of complementary pieces when we look at the products, and I show kind of the graphic of the commercial truck and where the products physically connect to each other, and how we can now think about and look at that more as a system opportunity to provide more efficient powertrains and driveline to our customers.

What's- Well, we're still in a stage with the- Yeah transaction where we can't gun jump and really get into the specifics with our customers.

I would just say that the transaction has been met very favorably by our customers as we obviously have had conversations about the deal and why we're doing it. And I would say there's a lot of support from the combination of the companies.