Dana Incorporated 2015 Sustainability Report

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OUR VISIONTo be the global technology leader in efficient power

conveyance and energy-management solutions that enable our customers to achieve their sustainability objectives 1

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D e a r F e l l o w S t a k e h o l d e r s ,

D a n a ' s S t r a t e g i c V i s i o n t o " e n a b l e o u r c u s t o m e r s t o a c h i e v e t h e i r s u s t a i n a b i l i t y o b j e c t i v e s " s e r v e s a s t h e b a s i s t o i m p r o v e o u r o w no p e r a t i o n a l a n d f i n a n c i a l s u s t a i n a b i l i t y .

D a n a ' s f o c u s o n s u s t a i n a b i l i t y i s b a l a n c e d a m o n g o u r s t r o n g f i n a n c i a l p e r f o r m a n c e a n d o p e r a t i o n a l i n d i c a t o r s , l e a d e r s h i p i n p r o t e c t i n g a n d a d v a n c i n g o u r e m p l o y e e s , a n d c o m m i t m e n t i n e n s u r i n g t h a t t h e c o m m u n i t i e s a n d s u r r o u n d i n g a r e a s i n w h i c h o u rf a c i l i t i e s a r e l o c a t e d a r e n o t a d v e r s e l y i m p a c t e d b y o u r p r e s e n c e .

I n c o r p o r a t i n g t h e p r i n c i p l e s o f t h e D a n a O p e r a t i n g S y s t e m , D a n aw i l l c o n t i n u e t o d e v e l o p e f f i c i e n t p r o c e s s e s t o m i n i m i z e a d v e r s e i m p a c t s t o o u r f i n a n c i a l , h u m a n , a n d e n v i r o n m e n t a l r e s o u r c e s .

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FINANCIAL SUMMARY For the year ended Dec. 31, 2015

$ in millions except per share amounts

Annual Operating Results 2015 2014Sales $6,060 $6,617

Net Income Attributable to Dana1 $159 $319

Adjusted EBITDA2 $652 $746

Margin 10.8% 11.3%

Diluted Adjusted Earnings per Share3 $1.74 $1.99

Capital Spend $260 $234

Free Cash Flow2 $146 $276

Employees at Year End 23,100 22,600

Major Facilities at Year End 90 90

Balance Sheet Total Cash and Marketable Securities: $953 Net Debt: $643 Liquidity2: $1,205

1 2015 includes net charges of $68 relating to an impairment of a 50-percent-owned equity affi liate and an impairment charge for certain assets associated with a distressed supplier relationship in Brazil. 2014 includes a tax benefi t of $179 for partial release of U.S. income tax valuation allowances and net charges of $138 relating to loss on divestiture of Venezuela operations, settlement of pension liabilities, and loss on debt extinguishment.

2 See Pages 30 and 31 of Dana’s 2015 Form 10-K, included herein, for explanation and reconciliation of non-GAAP fi nancial measures, adjusted EBITDA and free cash fl ow, and Dana’s calculation of liquidity.3 Diluted adjusted EPS is a non-GAAP fi nancial measure, which we have defi ned as adjusted net income divided by adjusted diluted shares. See the “Quarterly Financial Information and Reconciliations of Non-GAAP Information” on

Dana’s Investor Relations website at www.dana.com/investors for explanation and calculation of diluted adjusted EPS.4 Includes $150 voluntary U.S. pension contribution in 2012.

Sales Adjusted EBITDA Margin Free Cash Flow 2,4

and Capital Spending

Capital spending Free cash fl ow

Diluted Adjusted EPS3

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DANA AT A GLANCE

G L O B A L S A L E SAs of December 31, 2015

Light Vehicle Driveline TechnologiesDana is a world-leading supplier of light-vehicle driveline

technologies, producing complete drivetrain systems and

components for passenger cars, CUVs, SUVs, vans, and

light trucks. Dana works collaboratively with original-

equipment manufacturers and the aftermarket to deliver

Dana axles, Spicer® propshafts, and complete systems

with best-in-class effi ciency.

Off-Highway Driveline TechnologiesDana delivers fully optimized Spicer® drivetrain systems and

individual product solutions to customers in construction,

agriculture, material-handling, underground-mining, and

forestry markets. We bring our global expertise to the local

level with technologies customized to individual requirements

through a network of strategically located technology centers,

manufacturing locations, and distribution facilities.

Commercial Vehicle Driveline TechnologiesDana is one of the world’s premier providers of driveline

and tire-management systems, as well as genuine service

parts for medium- and heavy-duty commercial vehicles.

Our cutting-edge Spicer® innovations increase fuel effi ciency

and decrease weight while reducing maintenance and total

cost of ownership.

Power Technologies GroupDana provides Victor Reinz® sealing solutions and Long®

thermal-management technologies to help reduce fuel

consumption and emissions, while improving vehicle durability

and performance. Our engineers anticipate industry trends

to provide innovation, value, and quality in every technology,

and our strong engineering know-how leads to high product

performance, fl exibility, and speed to market.

North America 53%

Europe 29%

Asia Pacifi c 12%

South America 6%

Markets Regions Customers

Light Vehicle 54%

Heavy Vehicle 27%

Off-Highway 19%

Ford 20%

FCA* 9%

PACCAR 8%

Nissan 4%

Tata 4%

GM 4%

Deere 3%

Toyota 2%

Ab Volvo 2%

Daimler 2%

Others 42%

* Sales to Fiat Chrysler Automobiles include sales to Hyundai Mobis.

One of the ways we

create value is by

locating our technical

and manufacturing

resources wherever

customers need

us globally.

Charts to the right represent consolidated sales only.

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M A R K E T B R E A D T H

Passenger Cars

Buses and RVs

Reach Stackers

Wheeled Excavators

Micro Cars

Delivery Trucks

Telehandlers

Single Drum Rollers

CUVs/SUVs

Cement Mixers

Rough Terrain Cranes

Harvesters and Combines

Pickup Trucks

Refuse Haulers

Tractors

Mining Trucks

Minivans Cargo Vans

Heavy-Duty Trucks Fork Lifts

Wheel Loaders Log Skidders

Mining DrillsLoad-Haul Dump Trucks

C O R E T E C H N O L O G I E S

Driveline Technologies

Brands: Spicer®, Dana, GWB®,

VariGlide®, Spicer® Rui Ma™

Axles, driveshafts, off-highway

transmissions, tire management,

and complete driveline systems

Sealing Solutions

Brands: Victor Reinz®,

Glaser®, Magnum®

Gaskets and seals, transmission

separator plates, plastic cam cover

and oil pan modules, heat shields,

and fuel-cell plates

Thermal Management

Brands:

Long®, TruCool®

Transmission and engine oil cooling,

battery and electronics cooling,

charge air cooling, and exhaust-gas

heat recovery

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SUSTAINABLE PRODUCT SOLUTIONSDana endeavors to position itself at the forefront of technology’s leading edge. Each day, our engineers are identifying sustainable solutions to challenges faced by customers on six continents.

Spicer® AdvanTEK® Dual Range Disconnect™ technology drives line-haul truck efficiencyDana’s Spicer® AdvanTEK® Dual Range Disconnect™ tandem axle technology combines the best of both 6x2 and 6x4 axle configurations for Class 8 line-haul applications. Optimized for trucks that implement engine

downspeeding, this innovation improves efficiencywithout sacrificing performance by seamlessly combining the traction and dependability offered by a 6x4 with the

reduced drivetrain losses and improved fuel economy of a 6x2.

In environments where additional traction is needed, Spicer AdvanTEK Dual Range Disconnect technology allows the tandem axle to operate as a 6x4, with a traditional starting ratio that delivers the optimal tractive effort needed. As the truck nears highway speed, the inter-axle shaft is disconnected from the power divider, allowing the axle to operate in a more efficient 6x2 mode. At the same time, the forward axle is shifted to a faster ratio.

This can improve overall powertrain system efficiency from 2 to 5 percent compared with conventional 6x4 tandem axles paired with overdrive transmissions.

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Dana sourced on global disconnecting all-wheel-drive programOne of Dana’s latest technologies – our disconnecting all-wheel-drive (AWD) system – delivers the improved safety and traction global light-vehicle customers seek,

while providing the fuel efficiency of a front-wheel-

drive system.

While standard AWD enhances traction, fuel economy is compromised. As such, Dana’s disconnecting AWD system rapidly connects and disconnects the rear wheels

only as required, which provides best-in-class efficiency. This performance-enabling innovation

disconnects when not in use to maximize efficiency when the AWD is not required,

reconnecting as needed for enhanced mobility. As the AWD market grows, this technology will help expand Dana’s influence in the passenger car and small SUV categories.

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Lightweight beam for Spicer® D-Series and E-Series steer axles improves performanceImproving the maintenance and safety of vehicles without compromising payload and fuel economy, Spicer® D-Series and E-Series steer axles help truck owners seeking to offset the added weight of today’s emissions systems. Spicer D-Series steer axles feature integrated air disc brake knuckle that lets fleets specify air disc brakes with no net increase in weight over most S-cam drum brake axle systems. This innovation

eliminates up to 76 pounds (34.5 kg) from the steer axle assembly. The lightweight

E-Series steel-forged beam design cuts 35 pounds(15.9 kg) from the axle with no sacrifice in

strength or braking performance. The axles are targeted for on-highway, city delivery, and bus chassis applications.

Dana named 2015’s “Best Battery Solution Provider” in ChinaIn recognition of Dana’s innovations and contributions to thermal-management technologies for hybrid-electric and battery-electric vehicles, the China Decision Makers

Consultancy named Dana the Best Battery Solution Provider of the Year for 2015.

Through the Long® brand of thermal-management technologies, Dana works with manufacturers of vehicles, electronics, and batteries to develop innovations for the next generation of hybrid, battery, and fuel-cell vehicles. Dana produces customizable components for cooling systems, designed to optimize the efficient operation of electrical systems, extend battery life, and allow faster battery charging.

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Spicer® optimized tire-pressure management system provides superior mobility technologyFor decades, Dana’s tire-management innovations have optimized the performance of the world’s most advanced military and vocational vehicles. Dana is bringing the benefits of this battle-tested technology to commercial vehicles worldwide – helping to enhance

safety and uptime, while improving fuel economy by up to 2 percent and tire life by up

to 15 percent.

The completely automated Spicer® optimized tire-pressure management system saves time and money by automatically maintaining target tire pressure for drive and steer axles. Unlike manual pressure checks, or tire-pressure monitoring systems that simply report data, fleets will be able to identify their target pressure and be assured that tires are performing optimally at all times.

Dana Rexroth advances R3 hydromechanical-variable transmissionImproving fuel economy while maintaining performance, Dana Rexroth Transmission Systems engineers have completed final validation testing of the R3 hydromechanical-variable transmission (HVT), with the start of production expected in late 2016. This follows the launch of the HVT R2 platform. A product of the Dana/Bosch Rexroth joint venture, Dana Rexroth HVTs

significantly reduce fuel consumption by

decreasing engine speeds throughout the duty cycle and at idle, to speeds as low as 650 RPM. These HVTs enable responsive, precise vehicle positioning with a stepless drive, offering improved acceleration while maintaining tractive effort. Both versions of HVT technology from Dana Rexroth feature a modular design that can be adapted for various off-highway equipment applications.

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D a n a ' s c o m m i t m e n t t o t h e e n v i r o n m e n t i s d e t a i l e d i n i t s S t a n d a r d s o f B u s i n e s s C o n d u c t e m p h a s i z i n g t h e m u t u a l l y a c h i e v a b l e o b j e c t i v e s o f a p r o f i t a b l e i n d u s t r i a l e n t e r p r i s e a n d s i m u l t a n e o u s e n v i r o n m e n t a l p r o t e c t i o n . T h e s t a n d a r d a p p l i e s r e g a r d l e s s o f l o c a t i o n , p o s i t i o n o r b a c k g r o u n d .

D a n a r e c o g n i z e s t h a t s u s t a i n a b l e o p e r a t i o n s r e q u i r e a b a l a n c e a m o n g s o c i a l p r o g r e s s , e c o n o m i c p ro s p e r i t y a n d e n v i r o n m e n t a l p r o t e c t i o n . D a n a w i l l a t t a i n t h o s e o v e r r i d i n g s u s t a i n a b i l i t y m e a s u r e s b y i m p l e m e n t i n g a n e n v i r o n m e n t a l m a n a g e m e n t s y s t e m t h a t f a c t o r s i n t h e r e l a t e d s o c i a l a n d f i n a n c i a l o b l i g a t i o n s i n a d d i t i o n t o e n v i r o n m e n t a l p r o t e c t i o n t o m a k e o u r s o l u t i o n s t r u l y s u s t a i n a b l e .

A s t h e c o r n e r s t o n e o f D a n a ' s e n v i r o n m e n t a l m a n a g e m e n t s y s t e m , t h e E n v i r o n m e n t a l P o l i c y d e t a i l s t h e c o m m i t m e n t s m a d e b y t h e e n v i r o n m e n t a l m a n a g e m e n t s y s t e m o f e f f i c i e n t n a t u r a l r e s o u r c e c o n s u m p t i o n , p o l l u t i o n p r e v e n t i o n , c o m p l i a n c e w i t h a p p l i c a b l e r u l e s a n d r e g u l a t i o n s a n d c o n f o r m a n c e t o c u s t o m e r a n d c o m p a n y e x p e c t a t i o n s . A l l e m p l o y e e s a r e r e m i n d e d t o m i n i m i z e w a s t e , p r e v e n t p o l l u t i o n , a n d c o n s e r v e e n e r g y .

D a n a ' s e n v i r o n m e n t a l m a n a g e m e n t s y s t e m p r o v i d e s t h e f r a m e w o r k f o r e s t a b l i s h i n g e n v i r o n m e n t a l c o n t i n u a l i m p r o v e m e n t o b j e c t i v e s , i n c l u d i n g :

A 1 0 % r e d u c t i o n i n n o r m a l i z e d e n e r g y c o n s u m p t i o n b y t h e e n d o f 2 0 1 8 , u s i n g 2 0 1 3 a s t h e b a s e l i n e y e a r . C o n s u m p t i o n d a t a i s e x p r e s s e d i n t e r m s o f t o t a l B T U s c o n s u m e d p e r m a n - h o u r w o r k e d .

A 5 % r e d u c t i o n i n n o r m a l i z e d w a t e r c o n s u m p t i o n b y t h e e n d o f 2 0 1 8 , u s i n g 2 0 1 3 a s t h e b a s e l i n e y e a r . C o n s u m p t i o n d a t a i s e x p r e s s e d i n t e r m s o f t o t a l c u b i c m e t e r s c o n s u m e d p e r m a n - h o u r w o r k e d .

F o c u s e d e n v i r o n m e n t a l s u s t a i n a b i l i t y w o r k s h o p s a n d t h e r e s u l t i n g p r o j e c t s a r e u s e d a s a m e a n s t o a d v a n c e D a n a ' s c o n t i n u a l i m p r o v e m e n t e f f o r t s , w h i c h i s a t e n a n t o f t h e D a n a E n v i r o n m e n t a l M a n a g e m e n t S y s t e m . T h e w o r k s h o p s a n d p r o j e c t s a r e d e s i g n e d t o l e s s e n t h e i m p a c t s t o D a n a ' s t r i p l e b o t t o m l i n e o f p e o p l e , p r o f i t , a n d p l a n e t a s s o c i a t e d w i t h D a n a ' s m a n u f a c t u r i n g p r o c e s s e s . T h e a c t i v i t i e s d r i v e r e d u c t i o n s i n g e n e r a t e d s o l i d s , r e d u c t i o n s i n w a t e r c o n s u m p t i o n , r e d u c t i o n s i n e n e r g y c o n s u m p t i o n , r e d u c t i o n s i n e m i t t e d a i r p o l l u t a n t s , a n d r e d u c t i o n s i n c h e m i c a l c o n s u m p t i o n .

T h e e n s u i n g g r a p h s d e p i c t t h e p r o g r e s s t h a t D a n a h a s m a d e i n t e r m s o f w a t e r a n d e n e r g y c o n s u m p t i o n r e d u c t i o n i m p r o v e m e n t s b e g i n n i n g w i t h t h e 2 0 1 3 b a s e l i n e y e a r t h r o u g h t h e e n d o f 2 0 1 5 .

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ENVIRONMENTAL SUMMARY

ENVIRONMENTAL PERFORMANCEN o r m a l i z e d W a t e r C o n s u m p t i o n N o r m a l i z e d Ene r g y C o n s u m p t i o n

G o a l : 5 % r e d u c t i o n i n n o r m a l i z e d w a t e r c o n s u m p t i o n b y 2 0 1 8 u s i n g 2 0 1 3 a s t h e b a s e l i n e

C o m b i n e d w a t e r c o n s u m p t i o n r e d u c t i o n p r o j e c t s c o n d u c t e d a t t h e D a n a s i t e s i n D a n v i l l e , K e n t u c k y , F o r t W a y n e , I n d i a n a , a n d T o l u c a , M e x i c o h a v e r e s u l t e d i na p p r o x i m a t e l y 5 5 m i l l i o n g a l l o n s i n w a t e r r e d u c t i o n f r o m 2 0 1 3 t o 2 0 1 5 .

D a n a s i t e s h a v e c o m p l e t e d 4 0 + w o r k s h o p s g l o b a l l y d e s i g n e d t o r e d u c e i t s e n v i r o n m e n t a l i m p a c t i n t e r m s o f s o l i d w a s t e g e n e r a t i o n , w a t e r c o n s u m p t i o n , e n e r g y c o n s u m p t i o n , a i r e m i s s i o n s g e n e r a t i o n a n d c h e m i c a l c o n s u m p t i o n s i n c e 2 0 1 4 .

G o a l : 1 0 % r e d u c t i o n i n n o r m a l i z e d e n e r g y c o n s u m p t i o n b y 2 0 1 8 u s i n g 2 0 1 3 a s t h e b a s e l i n e ( S c o p e 1 & 2 c o n s u m p t i o n o n l y )

E n e r g y r e d u c t i o n l i g h t i n g p r o j e c t s c o n d u c t e d a t t h e D a n a s i t e s i n Q u e r e t a r o , M e x i c o ( C V C ) , O a k v i l l e , O n t a r i o , a n d C a m b r i d g e , O n t a r i o h a v e r e s u l t e d i n a p p r o x i m a t e l y 4 7 7 m e t r i c t o n n e s o f C O 2 - e r e d u c t i o n i n 2 0 1 5 .

E n e r g y r e d u c t i o n a i r c o m p r e s s o r p r o j e c t s c o n d u c t e d a t t h e D a n a s i t e l o c a t i o n s i n H u m b o l d t , T e n n e s s e e , Q u e r e t a r o , M e x i c o ( C V C ) , a n d R o b i n s o n , I l l i n o i s h a v e r e s u l t e d i n a p p r o x i m a t e l y 1 , 4 4 9 m e t r i c t o n n e s o f C O 2 - e r e d u c t i o n i n 2 0 1 5 .

R e n e w a b l e e n e r g y p r o j e c t c o n d u c t e d i n P u n e , H i n j e w a d i , I n d i a p r o d u c e d 2 5 7 M W h o f e l e c t r i c i t y i n 6 m o n t h s f r o m s o l a r p a n e l s i n s t a l l e d a t t h e D a n a I n d i a T e c h n o l o g y C e n t e r .

ENVIRONMENTAL SUMMARY

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