Investors Presentation

Transcription

1 Morgan Stanley Global Automotive Conference April 10 12, 2006

2 Larry Denton Chairman & CEO Keith Marchiando Vice President & CFO Cautionary Statement This presentation contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as believe, expect, anticipate, intend, plan, estimate, or similar expressions. These statements are based on certain assumptions that the company has made in light of its experience in the industry as well as its perspective of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to (i) the company s reliance on major customers; (ii) fluctuations in the production volumes of vehicles for which the company is a supplier, (iii) the ability of the company to achieve its planned cost savings; (iv) labor disputes involving the company or its significant customers, (v) risks associated with conducting business in foreign countries, and (vi) general economic or business conditions affecting the automotive industry, either nationally or regionally, being less favorable than expected. 1

3 Agenda A Solid Foundation Staying Ahead of the Curve Financial Review Company Overview Larry Denton Chairman and Chief Executive Officer Based on 2005 Sales. US$1.30 Billion Milton Kniss Division President US$660 Million Jürgen von Heyden Division President US$390 Million Tim Stephens Division President Control Systems A Division of DURA Automotive Systems, Inc. Body & Glass Systems A Division of DURA Automotive Systems, Inc. Mobile Products A Division of DURA Automotive Systems, Inc. 2

4 A Solid Foundation A Solid Foundation Strong Performance in Key Metrics - Quality - Sales per Employee - Customer Diversification - Regional Sales Diversification - New product Introductions Agility & Best-in-Cost Positioning Product Innovation 3

5 A SOLID FOUNDATION AHEAD OF THE CURVE FINANCIALS Continued Gains in Quality & Efficiency Quality Index PERFORMANCE Sales per Employee A SOLID FOUNDATION AHEAD OF THE CURVE FINANCIALS A Diversified Customer Base PERFORMANCE Sales by end OEM Customer 13% 9% 5% 3% 1% 1% 2% 21% 4% Other OEMs 17% RV and Specialty Vehicles 24% 4

6 A Diversified Customer Base P E R F O R M A N C E Sales by Customer Group Asia OEMs Global 3% 36% Big 3 (NA) RV/Specialty Vehicle 17% EU OEM s 25% 19% Big 3 - ROW Geographic Diversification P E R F O R M A N C E 2005 Sales by Region 17% Atwood 4% Rest of World 40% NA Auto 38% EUR Auto 5

7 A Diversified Product Portfolio P E R F O R M A N C E Citroen Picasso Shift-by-Wire Actuator Mercedes Sprinter Sliding Glass, Cables Saturn Sky Pedal Asm Dodge Charger Park Brake Systems Dacia X90 (Romania) Park Brake Cables Dodge Nitro Seat Adjusters SsangYong (Korea) ATX Floor Shifter Ford Edge Modular Shifters, Seat Adjusters, Cables Audi A6 (China) Cross Members Lincoln Aviator Modular Shifters Acura MDX Tire Carrier Ford Expedition Glass Systems, Park Brake, Cables Nissan Altima Jack Asm Toyota Corolla Hinges Honda CRV (EU) Doors in White Buick Rendezvous 2nd & 3rd Row Seat Adjusters, Park Brake BMW Mini BMW X5 Jeep Wrangler/ Scrambler Cable Systems Exterior Trim, Cables Liftgate Glass, Pedals, Shifters Pontiac SV6 Skoda Roomster Saturn Outlook Over 140 New Launches in 2006 Seat Recliners Space Frame Components 2nd & 3rd Row Seat Adjusters, Cables, Shifters, Seat Recliners Solid Foundation B E S T I N C O S T Strong Performance in Key Metrics - Quality - Sales per Employee - Customer Diversification - Regional Sales Diversification - New Product Introductions Agility & Best-in in-cost Positioning Product Innovation 6

8 Agility & Best-in-Cost Positioning B E S T I N C O S T Average plant size 250 employees Small town locations Low legacy costs N.A. health care employee contributions Lean/small management team Global centers-of-excellence for engineering Low Cost Region Presence B E S T I N C O S T LCC Locations 12 * * Includes May 2006 expansion of Matamoros, Mexico campus 7

9 DURA Latin America B E S T I N C O S T Mexico Three facilities located in Matamoros and Queretaro Well established mfg locations, recognized by our customers Multi-product facilities Low-cost manufacturing 168,000 sq. ft. Matamoros expansion facility planned to open May 2006 Queretaro, Mexico Body & glass systems, sliding window systems, encapsulated windows, RackLift TM window lift systems Matamoros Campus Driver control systems, parking brake cables, jacks, ATX cables, sliding window systems DURA - Eastern Europe B E S T I N C O S T Romania New facility in Timisoara, Romania July 05 Multi-product facility: - driver control systems - cable systems - shifter systems Planning for two expansion phases in progress Czech Republic & Slovakia 4 New facilities since

10 DURA - Asia B E S T I N C O S T China DURA Vehicle Components Company DURA Ganxiang Automotive Systems Purchasing Office Japan, Korea & India Sales offices / alliances Solid Foundation I N N O V A T I O N Strong Performance in Key Metrics - Quality - Sales per Employee - Customer Diversification - Regional Sales Diversification Agility & Best-in-Cost Positioning - Low Legacy Costs - Best-In-Cost Locations Product Innovation 9

11 Joint Ventures - Duratronics I N N O V A T I O N 50 / 50 JV with Olhotronic GmbH Electronic Control Modules & Software Manufacturing and Design New Product Innovations I N N O V A T I O N New Hybrid Shift-By-Wire Designed for ATX Transmissions First Actuator Contract with PSA 06 Launch on Citroen Picasso New RackLift Window Lift Lightweight Plastic 06 PT Cruiser Launch Licensed for $1 Billion Market 2 nd and 3 rd Row Seating Growing Trend for Fully Adjustable Rear Seating in Crossover and SUV s DURA Seat Mechanisms Launch on Cadillac SRX, Saturn Outlook, Buick Rendezvous 10

12 New Product Innovations I N N O V A T I O N New Modular Shift Systems 9 Models of Cars & Trucks with Ford 05 Launch Zephyr, Fusion, Milan 06 Launch Edge, Aviator Power Adjustable Pedals 07 Dura launch on 4 new models Improves Driver Comfort and Safety Electronic Throttle Control Option Power Sliding Lightweight Door Module I N N O V A T I O N Highlights Leverages DURA s door structure and mechatronics capabilities Eliminates need for external guide rails Significantly improves egress DURA Peugeot

13 Staying Ahead of the Curve Staying Ahead of the Curve P E R F O R M A N C E 50 3 Initiative Restructuring Overview Shared Services Implementation Purchasing Initiatives Strategic Portfolio Evaluation 12

14 Three Accelerated Goals By End of I N I T I A T I V E Performance Optimization Worldwide Efficiency Results 50 PPM Global Quality 50% of Revenue In Best-In-Cost Facilities 50% Increase In Earnings (EBITDA) 50 3 Restructuring Overview I N I T I A T I V E Objective is to increase efficiencies in manufacturing 2,000 jobs relocated / moved to low cost countries with established operating experience 50% of our manufacturing facilities will be impacted 5 to 10 facilities to be closed Will be completed by year-end

15 Organizational Realignment I N I T I A T I V E Milt Kniss, President Control Systems Division Product transfers and facility consolidation Accelerating improved financial results through operational efficiencies 30+ years of operations experience in the automotive industry, including extensive restructurings Jurgen von Heyden, President Body & Glass Systems Division Lead representative for Western European Workers Council discussions John Knappenberger, VP Purchasing, Quality & IT Accelerating purchasing performance & cost reduction activities Two regional dedicated teams to implement restructuring activities Robert McMackins, Director of Mexico Operations Martin Becker, Director of Central Europe Operations Restructuring Current Status I N I T I A T I V E NA Product transfers have been initiated for selected sliding glass programs to be moved to Matamoros, MX EU Product transfers have been initiated for selected control systems and body & glass systems programs to be moved to Koprivnice, CZ, and Timisoara, RO 180 jobs identified to be relocated to Best-in-Cost locations = 9% of plan No facility closures have been announced to date 14

16 Shared Services Implementation I N I T I A T I V E Four Corporate Leveraged Functions Purchasing Human Resources Information Technologies Finance Enabling Technologies Global ERP Implementation (QAD) Global HRIS Package Purchasing Business Processes and Systems Information Technologies alignment and enhancements Finance Shared Services Enhanced Purchasing Initiatives I N I T I A T I V E Global Pricing Model 25% reduction in current supply base and increase volumes with preferred suppliers Increase Asia Pacific Sourcing Target commodities with high labor content and lower raw material price Dedicated resources added to manage and coordinate all regional sourcing activities 15

17 Enhanced Purchasing Initiatives I N I T I A T I V E VA/VE Opportunities OEM s steel resale programs Projected savings of 3-5% of purchased material cost in 2006 Objectives deployed through global purchasing organization by commodity team Staying Ahead of the Curve 50 3 Initiative Restructuring Overview Shared Services Implementation Purchasing Initiatives Strategic Portfolio Evaluation 16

18 Strategic Portfolio Evaluation Management Actions Strategic portfolio review Realigned SG&A investments and capital spending to support growth initiatives Presently evaluating strategic alternatives for three identified non-core operations Rotenburg Lage Lippstadt P O R T F O L I O Summary Dura has a solid foundation to build on Broad product portfolio and overall scale Superior quality Customer diversity Geographic coverage Strong pipeline of innovation & growth opportunities 50 3 plan is established and underway to position DURA ahead of the curve Our improved liquidity will allow DURA to weather any near-term challenges 17

19 Financial Review $2,500 $2,000 $1,500 $1,000 $ Actual vs. 04 Actual Causal Analysis Revenue $2,344.1 $2,492.5 $300 $250 $200 $150 $100 $50 Gross Profit $257.7 C A U S A L US$ Millions $278.4 $100 $ Operating Income $105.7 $90.0 $200 $ Adjusted EBITDA* $171.0 $210.9 $150 $50 $100 $50 $ $ *Adjusted to exclude facility consolidation and extraordinary items 18

20 05 Actual vs. 04 Actual Causal Analysis Dura Revenue Full Year R E V E N U E US$ Millions $15.0 $41.0 ($8.0) ($1.8) ($148.4) ($194.6) Total Volume (Auto) Volume (RV) Dura Mix/Net New Business ForEx All Other 05 Actual vs. 04 Actual Causal Analysis Dura Adjusted EBITDA Full Year $2.6 $0.4 E B I T D A US$ Millions $0.6 ($13.4) ($30.1) ($39.9) Total Vol: (Auto/RV) Mix/ Forex Economics/ Other Total Vol: (Auto/RV) Mix/New New Business Forex Economics/Performance Performance Other 19

21 05 Actual vs. 04 Actual Causal Analysis Dura Cash Flow Full Year C A S H US$ Millions $18 $79 $95 $90 $79 $192 $47 $31 $15 $10 $ YE Op. Inc. Dep'n & Revolver Cash Amort. BorrowingInterest CapEx Net W/C Debt GM Early Buyback Pay Cash Taxes 2005 YE Capitalization Table C A P I T A L I Z A T I O N % of % of Actual Total Actual Total 12/31/2005 Cap 12/31/2004 Cap Senior secured notes (ABL revolver) $ % $ - Term loan C % 2nd lien notes % - 8 5/8% Senior unsecured notes* % % 9% Senior subordinated notes USD % % EUR % % Other debt 7.5 1% 7.6 1% Convertible trust preferred % % 1, % 1, % Cash % % Total net debt 1, % 1, % Shareholders' equity % % Total capitalization (incl. Cash) $ 1, % $ 1, % _ * Excludes gains/losses on interest rate swaps. US$ Millions 20

22 Debt Amortization Pro Forma as of 12/31/05 D E B T Millions $700 $600 $500 $400 $300 $200 $100 $0 9% Notes May 2009 $524 2 nd Lien Notes Revolver May 2011 May 2010 $175 $ % Notes April 2012 $ % Trust Preferred March 2028 $ * *Pro forma for $75 million upsize Q Financial Liquidity L I Q U I D I T Y Unrestricted liquidity pro forma of $300* million as of 12/31/05 US$ Millions US/Canadian borrowing base $ Outstanding borrowings (17.5) Letters of credit (18.2) Excess availability $ Cash balances Total unrestricted liquidity $ nd lien upsize Q1 2006, net 73.0 Pro forma total unrestructured liquidity $ 300.4* *Pro forma for $75 million upsize Q

23 Restructuring Initiatives R E S T R U C T U R I N G Cash cost of $100 million Approximately $30 million for capital expenditures and $70 million for severance, moving and closure expenses Savings Primarily driven from wage rate enhancements, operational efficiencies and purchasing savings Payback period of three years Thank You Q&A 22