dura final 4-10-06 morgan stanley...

Investors Presentation

Morgan Stanley Global Automotive Conference – April 10–12, 2006


1

Larry Denton Chairman & CEO

Keith MarchiandoVice President & CFO

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.

Cautionary Statement


2

• A Solid Foundation

• Staying Ahead of the Curve

• Financial Review

Agenda

Company Overview

Larry DentonChairman and

Chief Executive Officer

US$1.30 Billion

Milton KnissDivision President

US$390 Million

Tim StephensDivision President

US$660 Million

Jürgen von HeydenDivision President

Based on 2005 Sales.

Body & GlassSystems

A Division of DURA Automotive Systems, Inc.

ControlSystems


MobileProducts



3

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

A Solid Foundation

A SOLID FOUNDATION AHEAD OF THE CURVE FINANCIALS


4

Continued Gains in Quality & Efficiency

Quality Index Sales per Employee

P E R F O R M A N C E


A Diversified Customer Base

Sales by end OEM Customer

9%

21%

24%

13%

5%

3%1%

17%

4%2%1%

Other OEMs

RV and Specialty Vehicles




5

A Diversified Customer Base P E R F O R M A N C E

Sales by Customer Group

36% Big 3 (NA)

19% Big 3 - ROW

EU OEM’s

RV/Specialty Vehicle

Asia OEMs Global 3%

17%

25%


Geographic Diversification

17%Atwood

40%NA – Auto 38%

EUR – Auto

4%Rest of World

2005 Sales by Region




6

A Diversified Product Portfolio

• Citroen Picasso

• Saturn Sky

• Dacia X90 (Romania)

• SsangYong (Korea)

• Audi A6 (China)

• Acura MDX

• Nissan Altima

• Honda CRV (EU)

• BMW Mini

• BMW X5

• Jeep Wrangler/ Scrambler

Shift-by-Wire Actuator

Pedal Asm

Park Brake Cables

ATX Floor Shifter

Cross Members

Tire Carrier

Jack Asm

Doors in White

Cable Systems

Exterior Trim, Cables

Liftgate Glass, Pedals,Shifters

Sliding Glass, Cables

Park Brake Systems

Seat Adjusters

Modular Shifters

Hinges

Seat Recliners

• Mercedes Sprinter

• Dodge Charger

• Dodge Nitro

• Ford Edge

• Lincoln Aviator

• Ford Expedition

• Toyota Corolla

• Buick Rendezvous

• Pontiac SV6

• Skoda Roomster

• Saturn Outlook

Space FrameComponents

Modular Shifters, Seat Adjusters, Cables

Glass Systems, Park Brake, Cables

2nd & 3rd Row Seat Adjusters, Park Brake

2nd & 3rd Row Seat Adjusters, Cables, Shifters, Seat Recliners


Over 140 New Launches in 2006


• Strong Performance in Key Metrics- Quality- Sales per Employee- Customer Diversification- Regional Sales Diversification- New Product Introductions

• Agility & BestAgility & Best--inin--Cost PositioningCost Positioning


Solid Foundation B E S T – I N – C O S T



7

Agility & Best-in-Cost Positioning

• 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

B E S T – I N – C O S T


Low Cost Region Presence

* Includes May 2006 expansion of Matamoros, Mexico campus

*


LCC Locations

12



8

DURA – Latin America

Driver control systems, parking brake cables, jacks, ATX cables, sliding window systems

Matamoros CampusBody & glass systems, sliding window systems, encapsulated windows, RackLiftTM window lift systems

Queretaro, Mexico

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



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

DURA - Eastern Europe

Czech Republic & Slovakia• 4 New facilities since 2001




9

DURA - Asia

China• DURA Vehicle Components

Company• DURA Ganxiang Automotive

Systems• Purchasing Office

Japan, Korea & India• Sales offices / alliances



• 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


Solid Foundation I N N O V A T I O N



10

Joint Ventures - Duratronics

• 50 / 50 JV with Olhotronic GmbH • Electronic Control Modules &

Software• Manufacturing and Design

I N N O V A T I O N


New Product Innovations

• Designed for ATX Transmissions

• First Actuator Contract with PSA

• ’06 Launch on Citroen Picasso

• Lightweight Plastic• ’06 PT Cruiser Launch• Licensed for $1

Billion Market

2nd and 3rd

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

New RackLift™ Window Lift

New Hybrid Shift-By-Wire

I N N O V A T I O N



11

• 9 Models of Cars & Trucks with Ford

• ’05 Launch Zephyr, Fusion, Milan

• ’06 Launch Edge, Aviator

New ModularShift Systems

New Product Innovations

• ‘07 Dura launch on 4 new models

• Improves Driver Comfort and Safety

• Electronic Throttle Control Option

Power Adjustable Pedals

I N N O V A T I O N


Power Sliding Lightweight Door Module

Highlights• Leverages DURA‘s door structure

and mechatronics capabilities• Eliminates need for external guide

rails• Significantly improves egress

Peugeot 1007Peugeot 1007DURADURA

I N N O V A T I O N



12

Staying Ahead of the Curve


•• 505033 InitiativeInitiative– Restructuring Overview

– Shared Services Implementation

– Purchasing Initiatives

• Strategic Portfolio Evaluation




13

50 PPMGlobal Quality

50% of RevenueIn Best-In-Cost

Facilities

50% IncreaseIn Earnings(EBITDA)

Three Accelerated Goals By End of 2007Three Accelerated Goals By End of 2007

PerformanceOptimization

Worldwide Efficiency Results

5 0 3 I N I T I A T I V E


503 Restructuring Overview

• 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 2007




14

Organizational Realignment

• 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

• 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 announcedto date




15

Shared Services Implementation

• 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

• 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




16

• 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

Enhanced Purchasing Initiatives 5 0 3 I N I T I A T I V E



• 503 Initiative

– Restructuring Overview

– Shared Services Implementation

– Purchasing Initiatives

• Strategic Portfolio Evaluation



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Strategic Portfolio Evaluation

• 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

Management ActionsP 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

• 503 plan is established and underway to position DURA ahead of the curve

• Our improved liquidity will allow DURA to weather any near-term challenges


18

Financial Review

‘05 Actual vs. ‘04 Actual Causal Analysis

$257.7$278.4

$0

$50

$100

$150

$200

$250

$300

2005 2004Operating Income

Revenue US$ Millions

$90.0$105.7

$0

$50

$100

2005 2004

$171.0

$210.9

$0

$50

$100

$150

$200

2005 2004

Adjusted EBITDA*

$2,344.1 $2,492.5

$0

$500

$1,000

$1,500

$2,000

$2,500

2005 2004

Gross Profit

*Adjusted to exclude facility consolidation and extraordinary items

C A U S A L



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($148.4)

($8.0)

$15.0

($194.6)

$41.0

($1.8)

Total Volume(Auto)

Volume (RV) Dura Mix/NetNew Business

ForEx All Other

US$ MillionsDura Revenue Full YearR E V E N U E


($39.9)

$0.4

($30.1)

$2.6

($13.4)

$0.6

Total Vol: (Auto/RV) Mix/New Business Forex Economics/Performance Other

‘05 Actual vs. ‘04 Actual Causal Analysis US$ MillionsDura Adjusted EBITDA Full Year

Vol: (Auto/RV) Mix/ New Business

Forex Economics/ Performance

OtherTotal

E B I T D A



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$90

$79

$18

$79

$47

$31$15

$10 $102

$192

$95

2004 YE Op. Inc. Dep'n &Amort.

RevolverBorrowing

CashInterest

CapEx Net W/C DebtBuyback

GM EarlyPay

CashTaxes

2005 YE

US$ MillionsDura Cash Flow Full YearC A S H


% of % of Actual Total Actual Total

12/31/2005 Cap 12/31/2004 Cap

Senior secured notes (ABL revolver) 17.5$ 1% -$ Term loan C - 146.3 10%2nd lien notes 150.0 11% - 8 5/8% Senior unsecured notes* 400.0 29% 400.0 28%9% Senior subordinated notes

USD 405.5 29% 453.8 32%EUR 118.4 9% 135.7 10%

Other debt 7.5 1% 7.6 1%Convertible trust preferred 55.3 4% 55.3 4%

1,154.2 83% 1,198.7 85%

Cash 101.9 7% 191.6 14%Total net debt 1,052.3 76% 1,007.1 71%

Shareholders' equity 339.7 24% 407.5 29%

Total capitalization (incl. Cash) 1,392.0$ 100% 1,414.6$ 100%

_ _ _ _ _*Excludes gains/losses on interest rate swaps. US$ Millions

Capitalization TableC A P I T A L I Z A T I O N



21

Debt Amortization Pro Forma as of 12/31/05

$524

$175 $225

$400

$55$0

$100

$200

$300

$400

$500

$600

$700

2006 2007 2008 2009 2010 2011* 2012 2028

Mill

ions

9% Notes May 2009

Revolver May 2010 7.5% Trust

Preferred March 2028

2nd Lien Notes

May 2011

8.625% Notes

April 2012

*Pro forma for $75 million upsize Q1 2006

D E B T


Financial Liquidity

• Unrestricted liquidity pro forma of $300* million as of 12/31/05

US/Canadian borrowing base 161.2$ Outstanding borrowings (17.5) Letters of credit (18.2) Excess availability 125.5$ Cash balances 101.9 Total unrestricted liquidity 227.4$ 2nd lien upsize Q1 2006, net 73.0 Pro forma total unrestructured liquidity 300.4$

US$ Millions

L I Q U I D I T Y

*

*Pro forma for $75 million upsize Q1 2006



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Restructuring Initiatives

• 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

R E S T R U C T U R I N G


Thank YouQ&A

dura final 4-10-06 morgan stanley...

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