LV-Competitor-China---10th-Oct

Honesty&IntegrityGoodCorporateCitizenOpenCommunicationContinuousImprovement©2012DanaLimited.ThispresentationcontainscopyrightedandconfidentialinformationofDanaHoldingCorporationand/oritssubsidiaries.Thosehavingaccesstothisworkmaynotcopyit,useit,ordisclosetheinformationcontainedwithinitwithoutwrittenauthorizationofDanaHoldingCorporation.Unauthorizedusemayresultinprosecution.LVDriveLineCompetitorAnalysis-China27thSep2012©Dana201222012Production(AWD/RWD/4WD)AxleSupplierSAICNanjing121,147InhouseSAICCV15,364InhouseSAIC-GM-WL848,376Inhouse70%,Jianan30%SAIC-GM/VW131,752Dana,Magna,importSAIC1,116,639DFM&DFAC675,595Banle,HubeiAxle,OthersDFM-Honda89,230Import(Inhouse)ZZ-Nissan127,426JiangDiDongFeng892,251Changan734,077InhouseBAICFoton550,53540%SG,30%ZC,30%OtherBAW50,025ZhuchengBeijing-Benz95,892AAM,ImportBeijing-Hyundai18,157InhouseBAIC714,609FAW268,668InhouseFAW-Toyota168,460Import(inhouse)FAW-VW86,067MagnaFAW523,195Brilliance-BMW145,118Import(Inhouse)Brilliance-Jinbei296,211SG30%,Others70%Brilliance441,329JAC299,526InhouseGreatWall247,483InhouseJMC201,540Inhouse,DanaTop9ChinaOEMAxleSupplier-Addressablemarketonly(2012FfromGI)DatafromIHSJulyOnlyconsiderdaddressablemarket0200,000400,000600,000800,0001,000,0001,200,000SAICDongfengChanganBAICFAWBrillianceAutoJACGreatWallJMCImportOthersFSDZhuchengJiangDiShuguangBangleAAMJian'AnInhouse©Dana20123ChinaAxleCompetitorShareInChina,40.6%oftotalaxlesupplyarefrominhouseaxlesupplier.MosthighendvehicleaxleareimportedfromforeignOEMhomecountry.(10.5%)Almosthalf48.9%oftotalvolumearesuppliedbyNonCaptiveaxlesupplier;KeylocalaxlecompetitorareBangle,Shuguang(LT),JianAn(Mini),Zhucheng&JiangDi(PickUp/Van)KeyforeignaxlecompetitorareAAM(RDCar),GKN/MAGNA(Car/SUV)Capative40.6%Import10.5%Supplier48.9%Bangle5.9%Shuguang5.0%Jian'An4.2%Zhucheng3.9%Jiangdi2.1%FSD1.2%AAM1.2%Others25.5%AxlesupplierCapativeImportSupplier1Bangle357,1602SG299,0953Jian'An254,5134Zhucheng232,6555JiangDi127,4266FSD72,6637AAM70,0008Others1,539,318Total2,447,332633,6632,952,830©Dana20124StructurecarSUVPUMiniVanLTProductrangeVolume2011PriceVsDanaMajorcustomerR&DCommentsGKNJVwithSAICRDU+ITCC+PTU5%higherYes1)PurchasedGetrac,axlealso2)PurchasedToyotagearplantinJapanAAMWhollyownedRDU+PTU,395418SameBJBenz,BMW,GMYesStrongcompetitoronSUVwithBWITCC,linkedwithDaimlerforRDU.JVwithJACBEAMAXLE10000015%LowerFoton,JAC,NoAAM/JACJVforlighttruckMAGNAIndependentRDU+PTU460K2016SameVW?OnlyfriendwithUScompanyJian'AnBelongtoChanganBEAMAXLE113005035%lowerDFAC,WlNoVerycompetitiveprice,verystrongshareinMinivehiclemarketJiangDiBelongtoJMCBEAMAXLE2430020%lowerNissan,FotonYesJiangdimainlysupplieraxleforJMC,activelycompetingwithusonothermarketBangLeJVbetweenDFAC/ZoomlineBEAMAXLE25%lowerDFAC,Hunan,NoDFAChold49%share,Zoomline51%SGSGisavehiclemakeraswellBEAMAXLE35000015%lowerSG,Foton,JinbeiYesSGislargestNoncapativeaxlesupplier,mainlyforLTmarketOthersDanaIndependentRDU+DS700001Liuqi,JLFordYesChinaAxleCompetitorOverView©Dana201252012Production(AWD/RWD/4WD)SAIC1,116,639Dongfeng892,251Changan734,077BAIC714,609FAW523,195BrillianceAuto441,329Jianghuai299,526GreatWall247,483Jiangling201,5405,170,649Total6,033,82586%0200,000400,000600,000800,0001,000,0001,200,000SAICDongfengChanganBAICFAWBrillianceAutoJACGreatWallJianglingImportOthersMTUGKNSSDZhuchangDSChongqiDSXuchangWanxiangInhouseChinaTop9OEMDSSupplierSituationSupplierSegmentProductrangeVolumePriceVSDanaR&DMainCustomerGKNSUV,MPV,Car1210-1350400,000Lower5%for1210-1350YesSAICgroup,Ford,GM,NissanSDL14,18,27Higher5%forSDL14,18,27WanxiangAllrange1000-18102,000,000Lower12%YesMini,SAIC-GM-Wuling,GW,Liuqi,FotonXuchangPickup,LightTruck1310700,000Lower15%YesZZNissan,Foton,GW,JAC,Jiangling©Dana20126Inhouse5.4%Import9.7%Supplier84.8%Wanxiang33.4%Xuchang12.1%ChongqiDS11.6%ZhuchengDS8.7%Dana3.3%GKN3.2%MTU0.1%Others12.42012InhouseInhouse328,438SupplierWanxiang1,325,203Xuchang728,231ChongqiDS700,951ZhuchangDS525,578Dana200,034GKN195,942MTU4,027Others576,318ImportImport585,927Top9total5,170,6492012Total6,033,825Detal863,176Oppositewithaxle,onlyverysmallportionofdriveshaft(5.4%)arefrominhousesupplier.SomehighendvehicleDSareimportedfromforeignOEMhomecountry.(9.7%)MajorityofvehicleDSaresuppliedbyNonCaptiveDSsupplier;WXdominatethemarketwith33.4%marketshare,WXpriceisabout10%lowerthanDanaSSD.GKNisourKeycompetitoronhighendmarket.WithinhouseCross&CVJcapability,Danaareinaweakpositiontocompete.ChinaDriveShaftCompetitorShare©Dana2012Remark:1.RedBubblemeansthevehicleproductionsizeintheprovince.2.AllpercentageofeachProvinceareCAGR2012-2017.3.GreenBubblemeansAxlefacility.OrangeBubblemeansDSfacilityChinaLVOEMandCompetitorLocationProvienceManufacturer20122017Beijing+HebeiBAICFoton514,787635,653GreatWall245,927327,863Beijing-Benz95,892209,969Zhongxing59,69573,256BeijingAutomobileWorks50,02578,740Beijing-Hyundai18,15733,580Changan42,837148,914Others2,50012,440Beijing+HebeiTotal1,029,8201,520,415GuangxiSAIC-GM-Wuling848,3761,048,640Dongfeng38,23931,172GuilinBus1,6501,544GuangxiTotal888,2651,081,356Anhui+JiangsuJia