# DEAR FELLOW
SHAREHOLDERS

_Source: `DeepSeekOCR_Ardian_pruned_1k/consumer-cyclical-auto-parts/NYSE_DAN_2020/NYSE_DAN_2020.mmd` · pages 4-10_

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DEAR FELLOW
SHAREHOLDERS,

This past year has been one dominated by disruption and uncertainty. Yet, despite the challenges faced by our world and the mobility industry, I am immensely proud of the Dana team and all that we accomplished. This year continued to reveal the depth of our team's character, which brought us together to overcome hardship, while we strategically advanced our mission to support our customers across all markets and serve our communities around the globe.

Not only did we manage through the operational challenges of the pandemic with more than 100 facilities temporarily idled, but our teams also applied their expertise to support frontline workers, including manufacturing personal protective equipment and critical components for ventilators. We are grateful for the Dana women and men who, today, are working in our manufacturing facilities so that we can do our part to ensure the world's critical mobility industry can continue to operate during the pandemic.
It is the collective spirit of the Dana family that has me entering 2021 with confidence in our company's future. I truly believe the future is Dana.

My sentiment isn't just optimistic; it's realistic. In 2020, our team demonstrated a strong resilience by expanding our electric-vehicle components and systems offerings, securing future sales of $700 million – half of which will come from hybrid and electric vehicle programs, while continuing to generate cash and further strengthening our balance sheet.

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## LETTER TO SHAREHOLDERS

We also elevated our leadership position in the e-Mobility space, developing new electrified propulsion systems across all end markets and expanding our global capabilities and capacity for our electrification portfolio, including motors, inverters, controls, and beyond.

As the mobility industry shifts to place greater emphasis on electrified vehicle programs, Dana has strategically invested to build on our more than a century of leadership in powertrain solutions. Our acquisition of Rational Motion GmbH and investment in Pi Innovo LLC further extended our ability to provide complete software, controls, integration, and engineering services to support our customers. These solutions position Dana to assist our customers during their transition to electrification and ultimately enhance the flexibility, robustness, efficiency, and safety of electric-vehicle systems.

Our commercial-vehicle customers have leveraged these e-Propulsion competencies with new electric programs featuring fully integrated solutions from Dana, including the DAF LF Electric truck for the European market and Kenworth and Peterbilt programs in North America, which will be on the road this year.

In the off-highway segment, there are a diverse number of applications and duty cycles that benefit from Dana's portfolio of solutions, not only in e-Propulsion, but also in e-Motion systems. Dana has been a long-time leader in supplying hydraulic-driven scissor-lift drivetrains, but now we are leveraging Dana's renowned mechanical capabilities, combined with our electrified solutions, to expand into the growing electric-driven scissor-lift market. As an example, we have already secured a multi-year program with JLG Industries for North America and Europe, which begins early this year.

Dana's thermal-management capabilities will also be getting a boost in 2021 upon completion of the acquisition of the liquid-cooling automotive thermal-management business of Modline Manufacturing Company. The acquisition will add approximately $300 million in annual revenue, further diversify our geographic footprint for thermal products, strengthen our technology platform, and increase the scale of our Power Technologies business by 30 percent. The transaction will bring Dana complementary solutions and strengthen our relationships with existing customers while giving us entrance into new original-equipment manufacturers, such as Lucid Motors and Byton.

Over the past year, Dana has realized great successes from our light-vehicle business, especially in the SUV and light-truck segments. High-torque, maximum payloads, and extreme durability are key drivers for this market, as is evidenced by our content being featured on some of the year's highest-profile vehicles, including the Ford Bronco \( ^{®} \)  and Bronco Sport, Jeep \( ^{®} \)  Wrangler and Gladiator, Land Rover Defender, and Ram TRX. As automakers explore the best solutions for electrifying in the future, there will be a strong need for Dana's high-performance driveline technologies that will not only meet the needs of exacting truck owners, but also address the desire for off-road adventure.

As a company, we firmly believe our aggressive commitment to sustainability and social responsibility are positive forces driving our business and are important for our future. I am proud to report that Dana has committed to reducing our total annual greenhouse gas emissions by at least 50 percent before the end of 2035, and we remain focused on finding better ways to serve our people, develop our products, and protect our planet.

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## LETTER TO SHAREHOLDERS

As we look ahead, we believe continuing to execute our Powering into e-Drive enterprise strategy will position us for future success and further differentiate Dana among the mobility supply base as an energy-source agnostic supplier capable of supporting our customers across their diverse powertrain options.

A year ago, I was reporting on the most profitable year in our company's history, and I believe that momentum didn't just carry us through 2020, but it continues to build as we move forward – and it's all thanks to our people, our customers, and our investors.

Together with the Board of Directors and the global Dana team, I thank you for your support. I do not doubt that as we move into 2021, Dana will continue to adapt and innovate so that we can launch ourselves into a very bright future. After all, we are People Finding A Better Way.

My personal best,

![](images/6_0.jpg)

James K. Kamscikas
Chairman and Chief Executive Officer