Exhibit 99.1

8/8/2006 6:39:09 PM

The Power of People and Ideas Investor Presentation August 9, 2006

 

Agenda Metaldyne Overview Sales Update Financial Review Technology Update Q&A

 

Safe Harbor Statement This document contains “forward-looking” statements, as that term is defined by the federal securities laws, about our financial condition, results of operations and business. Forward-looking statements include certain anticipated, believed, planned, forecasted, expected, targeted and estimated results along with Metaldyne’s outlook concerning future results. These forward-looking statements are subject to numerous assumptions, risks and uncertainties. Because the statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. We caution readers not to place undue reliance on the statements, which speak only as of the date hereof. Risks and uncertainties that could cause actual results to vary materially from those anticipated in the forward-looking statements included in this report include general economic conditions in the markets in which we operate and industry-based factors such as: declines in North American automobile and light truck builds, reductions in outsourcing by our automotive customers, increases in our raw material and energy costs, labor costs and strikes at our major direct and indirect customers and at our facilities, dependence on significant automotive customers, the level of competition in the automotive supply industry and pricing pressures from our customers, technological developments that could competitively disadvantage us, and risks associated with conducting business in foreign countries. In addition, factors more specific to us could cause actual results to vary materially from those anticipated in the forward-looking statements included in this report such as substantial leverage, limitations imposed by our debt instruments, the adequacy of our liquidity to meet our capital expenditures and other cash requirements, our ability to identify attractive and other strategic opportunities and to successfully integrate acquired businesses including actions we have identified as providing cost-saving opportunities. We do not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.

 

The Power of People and Ideas Metaldyne Overview

 

Key Attributes 22 plants (2 joint), 11 countries, 1 foreign JV, and 4,100 employees Three business units focused on predominantly proprietary technologies in such areas as powder metal, forged powdered metal, NVH, and exhaust capabilities Technology provides differential and premium price/margin Solid financial performance and track record Declining compensation to sales ratio Powertrain Sintered Products Vibration Controls Powertrain Products Group Overview Key Attributes 12 plants (2 joint), 7 countries, and 2,700 employees Three business units focused on mini corner technology / growth Maximizing New Castle integration Growing Mexican and Asian footprint Leveraging Ford EUCD in Europe Chassis NC-M Operations Chassis Products Chassis Europe

 

Summary of Metaldyne Performance REVENUE Adjusted EBITDA CAPEX Discussion Points Revenue growth despite Big Three market share losses and troubled economic environment. Growing EBITDA over last four years despite economic challenges and heavy leasing to finance large book of business growth. CAPEX stabilizing after above normal expenditures to change business model. Business model maturing – 2006 expected to provide solid EBITDA growth and CAPEX reduction. Continuing Operations (excludes NA Forging) $1,177$1,695$1,887$0$500$1,000$1,500$2,000$2,500200320042005$116$140$112$0$25$50$75$100$125$150$175200320042005$93$146$161$0$50$100$150$200$250200320042005

 

YTD 2006 Highlights Market Performance $152.6 Million YTD 2006 in new business awards Awarded Con Rods for Asian OEMs Awarded Isolation and Pulley Assembly for an Asian OEM Other Key InitiativesSuccessful Chery Tech Day held on June 14, 2006 200+ Chery engineers and executive attended Follow up visit to Metaldyne Plymouth headquarters Significant interest generated at Chery in the following products BSM - Dampers Gears - Water Pumps Oil Pumps - Conventional PM parts Con Rods - Clutch Modules Valve Bodies - Main Bearing Caps Bought out additional $3.9 million of operating leases Adds $1 million a year going forward to EBITDA

 

Sales expected to grow at 2.6x NAFTA growth rate Source: Metaldyne 2006-2009 Forecast, Roland Berger 2006-2009 CAGR Key takeaway Metaldyne expects strong sales growth to foreign OEMs with production in NAFTA – 35% CAGR from 2006-2009 Transplants GM Ford DCX 35% 2% 6% -2% 6% Total 17.0 2006-2009 CAGR NAFTA vehicle production by manufacturer (m units) 15.8 Transplants GM Ford DCX 5% 1% 1% 2% 2.3% Total Metaldyne plans to grow sales by 6% from 2006 to 2009 Other 9% 200620095.15.94.64.73.33.42.83.020062009

 

1) Passenger cars and light vehicles 26% 9% 22% 14% 5% 16.915.820042012NAFTA Europe Japan/Korea 0.8% p.a. China x% = Estimated worldwide market share of vehicle production 2012 3.62.5200420124.7% p.a. 23.320.0200420121.9% p.a. 9.14.7200520128.6% p.a. 14.813.0200420121.6% p.a. South America 9% 15% Source: Q1 2006 CSM Forecasts; Roland Berger analysis Overall Industry Overview Vehicle production1) 2004-2012 (m units) Estimated global CAGR of 2.4% from 2004 to 2012 Metaldyne continues to participate in growing markets

 

The Power of People and Ideas Sales Update

 

Technology and Innovation Revenue in $000s 05001000150020002500300020012002200320042005

 

2006 Customer Mix 8% Asian OEMs 17% Asian OEMs (1) Sales to end vehicle platforms (sees through Tier 1 sales relationships) (2) Includes sales that are currently being manufactured; business that has been “awarded” (with a purchase order and/or letter of intent in Company possession); “highly probable” quoted business that has a prototype order or an encouraging letter from the customer; and other “tracking” business that has been quoted to the customer 2009 $ inmils. Ford21%General Motors12%Other23%DCX27%Honda3%Toyota4%Hyundai5%Ren/Nis5%DCX37%Ford21%General Motors12%Other21%Ren/Nis2%Honda1%Toyota2%Hyundai3%PSA1%

 

2006 New Program Launches 35.6 Connecting Rods 160.9 Other 10.6 Wheel Hubs 30.7 Balance Shaft Modules 64.3 Differential Gears/Assemblies 25.2 Valve Bodies 16.3 Dampers 8.6 Control Arms 41.6 Knuckles/Mini Corner Modules Peak Sales (millions) 2006 New Program Launches 2006 New Program Launches Approximately $400 million Differential Case Assemblies Mini Corner Assemblies Valve Bodies Connecting Rods Balance Shaft Modules

 

Revenue Growth vs. Ford/GM Metaldyne Net Sales vs. Ford/GM BuildCAGR 2001-2005 (2.9%) 16.5%8.9% Metaldyne has increased sales over last five years despite overall production declines from the two market share leaders Ford and GM continue to outsource significant programs to Metaldyne; value added content continues to offset GM/Ford production declines Source: Metaldyne “Ford/GM Production” defined as NAFTA Light Vehicle Forecast “Diversified/Acquisitions” includes Livonia Fittings, Rome, Bedford Heights and New Castle, Greensboro 02040608010012014016018020020012002200320042005as % of 2001 figuresFord/GM ProductionMetaldyne Sales w/Divestitures/AcquisitionsMetaldyne Sales w/o Divestitures/Acquisitions

 

 Asian-based resources focus on balancing customer base - Asian shift underway Forecast of 20% of sales by 2010 (vs. 10% in 2006 vs. 5% in 2001) Transitioning to Asia-based supply - 10% of Metaldyne sales locally in Asia by 2010 (vs. nil in 2001) Metaldyne Asian Growth Metaldyne Asian OEM/Asian Sales Forecast (as of Q2 2006) (includes In Production, Awarded, Hi Prob, Tracking for supply to Asian OEM and Other OEMs sales in Asian market) $197.7M $237.1M $298.5M $443.5M $488.3M

 

Facility Update – Suzhou, ChinaRibbon Cutting June 13, 2006 Occupation June 24, 2006 Handover July 21, 2006 Damper and Chassis Areas Plant Entrance Quality Lab

 

The Power of People and Ideas Financial Review

 

2006 Second Quarter Revenue 2005 2006 2006 Q2 Guidance $507 $506 $500-$510 $Mils. HIGHLIGHTS Metaldyne revenue essentially flat versus 2005 DCX shutdown JR platform for model changeover – negative impact of approx $10M for quarter Metaldyne has been awarded successor program to JR, which launches in Q3 Big 3 production down 1.1% versus 2005 Second Quarter Actual $0$100$200$300$400$500$600

 

2006 Second Quarter Adjusted EBITDA20052006 2006 Q2 Guidance $58 $55 $55-$60 $Mils. HIGHLIGHTS Non-cash fixed asset loss of $2.2 million in Q2 2006 Note that Q2 2006 guidance did not include a forecast for non-cash fixed asset losses FAS 106 gain of $2.6 million in Q2 2005 Specific bridge of variances are included in the appendix $50 $40 $30 $20 $10 $0 Second Quarter Actual $60

 

7-02-06 Metaldyne Capitalization ($ in millions) 7-02-06Working Capital Revolver…………………………………………………..…………...…………………………35.0Term Loan D………………………...………………………...……………………………………………………………..374.710.0% Senior Notes………………………...………………………...……………………………………………………………..150.0IRBs / Other Foreign Debt and Capital Leases ………………………...………………………...……………………………………………………………..27.4Subtotal, Senior Secured Debt………………………...………………………...…………………………587.1DCC Seller Sub Note………………………...………………………...……………………………………………………………..31.711% Senior Subordinated Notes………………………...………………………...……………………………………………………………..250.0Total Debt………………………...………………………...…………………………868.8Series A Preferred………………………...………………………...……………………………………………………………..74.6Series B Preferred………………………...………………………...……………………………………………………………..31.5DCC Seller Preferred………………………...………………………...……………………………………………………………..81.4Common Equity..……………………...………………………...……………………………………………………………..198.0Total Equity………………………………………..…………………………………..…………………………………..385.5Total Capitalization…………………………………..………………………………………1,254.3Memo: A/R Securitization…………………………………………………………………….66.5Total Debt + A/R Securitization………………………………………………………..935.3Key Financial Ratios:LTM Bank EBITDA……………………………………………………………………………………………..201.9Total Debt/LTM Bank EBITDA ………………………………………….………………………………………….………………………………………….4.63xLeverage Ratio for Covenants…….………………………………………….………………………………………….………………………………………….5.25xLTM Bank EBITDA/LTM Cash Interest………………………………………….………………………………………….………………………………………….2.03xCoverage Ratio for Covenants…….………………………………………….………………………………………….………………………………………….1.75x

 

Daily Net Undrawn Commitments Proforma impact of NAF sale, bank amendment and Term D raise Note: Net Undrawn Commitments above include cash on hand Notes Trough liquidity has improved since NA Forging sale and new Term D raise Although debt level reduced by $10.3 million in Q2 versus Q1, our undrawn commitments decreased by $12.8 million Key driver: decreased liquidity from AR securitization driven by customer ratings quality (e.g. Ford) and higher customer concentrations with NA Forgings receivables removed from the facility 020406080100120140160180200Q1Q2Q3Q4'04'05'06

 

The Company is seeking to refinance its existing working capital revolving credit facility in order to: Extend debt maturities Reduce the Company’s interest obligations Enhance Metaldyne’s financial flexibility New Financing Overview SourcesSynthetic Revolving Credit Facility$37.0 Revolving Credit Facility0.0Total Sources$37.0UsesRefinance Existing Working Capital Revolving Credit Facility $35.0Fees and Expenses2.0Total Uses$37.0

 

Q3 2006 Preliminary Outlook ($ in millions) Notes 2005 Q3 Operating Profit and Adjusted EBITDA include a $2.4 million FAS 106 curtailment gain and a $1.1 million Fixed Asset Loss. 2006 Q3 has no FAS 106 benefit or Fixed Asset Loss forecasted.2006 Guidance2005 ActualSales from Continuing Operations……………………………………………$440 - $450$443Operating Profit from Continuing Operations……..………...………………………………………9 - 1210Adjusted EBITDA from Continuing Operations……………………..……………………………………….35 - 4038Third Quarter

 

The Power of People and Ideas Technology Update

 

Competitive Advantage Through Product and Process Innovation Balance Shaft Modules Clutch Modules Connecting Rods Valve Bodies Mini Corner Assemblies Damper / Isolation Pulleys Differential Case Assemblies

 

Single Mass Dual Mode Damper C/S Bending Damper Toyota first introduced the Bending damper in 1989 to address C/S Bending A second damper was added to the torsion damper that works in the radial direction This approach adds mass to the end of the crankshaft The added mass lowers the crankshaft bending frequency This intern lowers resonant frequencies and pulls additional vibration modes into the engine speed range that must be dealt with Traditional Solution to C/S Bending Existing Torsion Damper Bending Damper Added Torsion Bending

 

C/S Bending Damper Metaldyne has developed a patented design which utilizes the existing Torsion Damper When combined with the structural design of the hub, overall engine NVH can be significantly influenced Torsional Fluctuations Torsional Cancellation Bending Fluctuations Metaldyne defined “Roll Mode” Translated Bending Cancellation Vertical Direction Lateral Direction Axial Direction Pat. # 5,231,893

 

C/S Bending Damper Tuning can be changed by modifying the rubber section geometry while keeping the same rubber compound Structural design stiffness of the hub and ring can also be used to impact the bending tuning Patented Single Mass Dual Mode Damper Design

 

Elimination of weight and cost by utilizing Metaldyne technology (Pat. # 5,231,893) for tuning a single mass damper in both torsion and bending. C/S Bending Dampers Competitor’s heavier dual mass dual mode damper with an extra damper needed for tuning. Testing has demonstrated that the SMDM can outperform the DMDM on engine applications Testing results showed improvement with a single-mass dual-mode damper in both overall vibration levels and subjective NVH listening studies Crank Nose Vertical Bending Vibration 2000650030004000500060002500350045005500rpm0701020304050605152535455565Amplitudegtr2444pr1h_sCrank Nose X2204_6_sCrank X2204_3_sCrank Xstock_sCrank XNo Damper Torsion only SMDM DMDM DMDM SMDM

 

C/S Bending Damper Single Mass / Dual Mode Dampers Metaldyne’s patented design* allows, through proper configuration and selection of rubber and component design, damping of both Torsional and Bending vibrations with a single inertial mass. Realized Benefits Reduced Weight Reduced Inertia Eliminates torsional interaction of the dual mass bending damper Improved NVH Characteristics Reduced Parasitic Power Loss Reduced CostUS Patent Number: 5,231,893

 

Value Proposition: Why Sinter Forged Technology for Connecting Rods? Cost Savings Opportunity + Engineering Value Rough PartRough PartRough PartRough PartSTEELFORGESINTERFORGE$Total CostMachiningMachiningAcquisition Cost, Consumables, Maintenance, EfficiencyMachining & AssemblyMachining & AssemblyMachining & AssemblyMachining & AssemblyCost SavingsOpportunity+ Engineering ValueProven Diesel & Gasoline Applications (85Hp/L or 63kW/L) High Material UTS, Yield and Cyclic Fatigue PropertiesReduced Reciprocating and Rotating MassBest in Class Weight Control for Improved NVHNear Net Shape Forming - High Material UtilizationDesign Flexibility for Weight OptimizationImproved Dimensional CapabilityMinimal Crank Bore Deformation at Fracture SplitCrank Bore Reassembly Roundness (low residual stress)Less Finishing Operations and Machine StockForging and Machining Process Robustness

 

Sinter Forged Technology - Material & Design C70 HS150TM HS160HS170High Fatigue Strength Material Design Optimization Pin End Design Optimization Crank End 100%130%133%139%0%25%50%75%100%125%150%Relative Fatigue Strength (%)010203040506070Scatter (MPa)

 

Steel Forging Sinter Forge Sinter Forged Technology - Material Utilization Efficiency Less material Less forming strokes Increased tool life Improved die dimensional capability Improved weight control Significant reduction in machining Preform » ± 2.0 g

 

Sinter Forged Technology - Value Maximized Material Utilization Forged Steel Metaldyne Powder Forged Technology 85% Util 42% Util 020040060080010001200140016001800Material Mass (grams)Raw MaterialRough Formed PartFinish Machined PartDrop Forge SteelPowder Forge

 

Formed Small End Pin BoreNo Back-Counter Bore Machining RequiredNo Draft Angle or Trim LineMinimal Bolt Seat Machine Stock Sinter Forge Technology Forming Advantage Minimal Thrust Face Machine StockMinimal Crank Bore Machine Stock Sinter Forged Technology - Near Net Forming Simple V-Block FixturingForged-in Chamfers on Datum or non-Datum Side Mechanical Broach Fracture Notch (no laser etch required)

 

Sinter forging advantage - Reduced balancing moment variation Smaller range and tighter distribution within the range Sinter Forged Technology - Weight Control 64% Decrease 67% Decrease 55% Decrease Pin End Crank End 74% Decrease 0.483.60.621.8710.11.875.81302468101214SigmaRangeSigmaRangeWeight Variation (grams)Powder ForgingDrop Forging

 

Global Connecting Rod Production I4 Engines continue to see significant growth (12% from 2006-10) I4 Engine market share is 64% I4 Engine growth primarily in developing countries Source: AUTOFACTS Global Light Vehicle Outlook 2006 Q2 Release Metaldyne production is heavily weighted to V6 and V8 engine production I4 engines dominate Europe, Asia and developing markets Metaldyne’s new technologies and processes are accelerating growth in the I-4 market World Cylinder Production050,000,000100,000,000150,000,000200,000,000250,000,000300,000,000350,000,0002005200620072008Calendar YearNumber of CylindersI6I3V8V6I4Metaldyne Con Rod Production010,000,00020,000,00030,000,00040,000,00050,000,00060,000,0002003200420052006Calendar YearNumber of CylindersV8V6I4

 

The Power of People and Ideas Q&A

 

The Power of People and Ideas Appendix

 

Q2 2006 Performance ($ in thousands) SalesQ2 2006Q2 2005% VarianceQ2 2006Q2 2006% VarianceChassis Group…..………....………....………....………....………....………....………....………....………..………....………....………....………....………....………....………....………....………..$261,141$273,749-4.6%$521,219$531,592-2.0%Powertrain Group …………………………....………....………....………....………....………....………....………....………..………....………....………....………....………....………....………....………....………..…………………………….244,477232,8565.0%488,653464,3855.2%Total Sales ……………....………....………....………....………....………....………....………....………..……………………………………………………505,618506,605-0.2%1,009,872995,9771.4%Segment EBITDA - As ReportedChassis Group…..………....………....………....………....………....………....………....………....………..………....………....………....………....………....………....………....………....………..$32,896$25,11631.0%$48,674$46,6434.4%Powertrain Group …………………………....………....………....………....………....………....………....………....………..………....………....………....………....………....………....………....………....………..…………………………….29,16634,705-16.0%62,40568,515-8.9%Total Segment Adjusted EBITDA………………………………………………………………………………………………………………………………………………………62,06259,8213.7%111,079115,158-3.5%Less: Corporate Expenses …………………....………....………....………....………....………....………....………....………..………....………....………....………....………....………....………....………....………..…………………………….(7,007)(2,130)229.0%(9,142)(6,025)51.7%Total Company Adjusted EBITDA From Continuing Operations(1)………………………………………………………………………………………………………………………………………………………55,05557,691-4.6%101,937109,133-6.6%% Margin…………………………………………………………………………………………………………………………………………………….10.9%11.4%-0.5%10.1%11.0%-0.9%Memo Items:Restructuring charges……………………………………………………………………………………..324367-11.7%4021,619-75.2%Fixed Asset losses……………………………………………………………………………………………………………2,216301636.2%7,8283322257.8%Foreign currency (Gain)/Loss……………………………………………………………………………………………………………29783612.5%1,625(351)-563.0%FAS 106/87 curtailment (Gain)/Loss………………………………………………………………………………………………………………..-(2,577)-100.0%165(4,657)-103.5%Three Months EndedSix Months Ended(1)The Company defines Adjusted EBITDA as net income (loss) before cumulative effect of accounting change and interest, taxes, depreciation, amortization, asset impairment, non-cash losses on sale-leaseback of equipment and non-cash restricted stock award expense.

 

Operating Groups – Q2 2006 Results SalesEBITDASalesEBITDAQ2 2005 Actual ……………………………………………………………….$273.7$25.1Q2 2005 Actual ……………………………………………………………….$232.9$34.7Net Volume/Loss Business/Productivity…………………………………….…………………………………..(13.7)(2.6)Net Volume/Loss Business/Productivity…………………………………….…………………………………..5.90.6Material/Net Cost Reductions……………..…..…………………………………(1.6)5.3Material/Net Cost Reductions……………..…..…………………………………4.2(0.1)Exchange…………………………………………………………………………………..0.60.1Exchange…………………………………………………………………………………..0.90.3Lease Expense……....……………………………………………………………………………….-0.6Lease Expense……....……………………………………………………………………………….-1.8Resolution of Commercial Dispute……………………………………………………………………………………-4.1Launch Related Activity……....……………………………………………………………………………….-(2.9)Other……....……………………………………………………………………………….2.0(1.3)Other……....……………………………………………………………………………….0.6(1.8)Subtotal……………………………………………………………………………………………261.031.3Subtotal……………………………………………………………………………………………244.532.6Fixed Asset Losses…………………………………………………………………….-1.6Fixed Asset Losses…………………………………………………………………….-(3.4)Q2 2006 Actual ………………………………………………………………………..$261.1$32.9Q2 2006 Actual ………………………………………………………………………..$244.5$29.2Q2 2006 versus 2005Q2 2006 versus 2005Chassis GroupPowertrain Group

 

 Corporate Bridge ($ in millions) Q2 2005 vs. 2006EBITDAQ2 2005 Actual ……………………………………..($2.1)FAS 106/87 Gain………………………….(2.6)SOX 404 Efforts…………………………………..………………………….(0.2)Foreign Currency Loss………………………….…………………………………………..(0.3)Interest Income Decrease………………………….…………………………………………..(0.2)Other………………………….…………………………………………..(1.6)Q2 2006 Actual ………………………………………………($7.0)

 

 Income Statement ($ in millions – except per share data) Q2 2006Q2 2005Q2 2006Q2 2005Net sales……………………………………………………………………………………………………………………………………………………$505.6$506.6$1,009.9$996.0Cost of sales………………………………………………………………………………………………………………………………………….449.3445.5913.8883.4Gross profit……………………………………………………………………………………………………………………………………….56.361.196.0112.6Selling, general and administrative expenses………………………………………………………………………………………………29.430.157.955.9Restructuring Charges………………………………………………………………………………………………………………………………0.30.40.41.6Operating profit……………………………………………………………………………………………………………………………………..26.530.637.855.1Other expense, net:Interest expense…………………………………………………………………………………………………………………………………….24.221.748.144.3Preferred stock dividends………………………………………………………………………………………………….9.15.615.611.0Equity income/gain on sale…………………………………………………………………………………………………(0.7)(1.0)(1.6)(1.6)Other, net……………………………………………………………………………………………………………………………………………………..5.02.09.83.6Other expense, net……………………………………………………………………………………………………………………………….37.628.371.957.3Income (loss) from continuing operations before income taxes…………………………………………………………………………..(11.1)2.3(34.1)(2.2)Income tax expense (benefit)……………………………………………………………………………………………………………………………………….5.51.710.50.1Loss from continuing operations……………………………………………………………………………………………………………….(16.5)0.6(44.6)(2.3)0.0(0.5)(0.4)(1.1)Loss on discontinued operations (net of tax of zero)………………………………………………………………………….--(6.9)-Net loss attributable to common stock…………………………………………………………………………………………………………………………………………………(16.5)0.1(51.9)(3.4)Basic and diluted loss per share:Loss from continuing operations less preferred stock dividends………………………………………………………………………………………………………………………………………(0.39)$ -$ (1.04)$ (0.07)$ Loss from discontinued operations………………………………………………………………………………………………………………………………………--(0.01)(0.01)Loss on discontinued operations………………………………………………………………………………………………………………………………………--(0.16)-Net loss attributable to common stock………………………………………………………………………………………………………………………………………(0.39)$ -(1.21)$ (0.08)Loss from discontinued operations (net of tax of zero for the three and six months ended July 2, 2006; and $(0.3) and $(0.6) for the three and six months ended July 3, 2005, respectively)……………………………………………………………………………..Three Months EndedSix Months Ended

 

 Summary Balance Sheet ($ in millions) Q2 2006Q4 2005ChangeCash and investments………………………………………………………………$5.8$3.7$2.1Receivables…………………………………………………………………………………156.6139.916.7Inventories……………………………………………………………………………….85.984.31.6Other current assets……………………………………………………………..44.540.63.9Assets of discontinued operations……………………………………-116.6(116.6)Total current assets…………………………………………$292.8$385.1($92.3)Property and equipment, net………………………………….667.4630.437.0Goodwill…………………………………………………………………………………594.0584.010.0Other assets…………………………………………………………………………………….236.2247.4(11.2)Total assets………………………………………………………………………..$1,790.4$1,846.9($56.5)Accounts payable………………………………………………………………..250.7261.1(10.4)Accrued liabilities……………………………………………………………………125.1123.91.2Liabilities of discontinued operations…………………………………………………-70.6(70.6)Long-term debt, including current portion……..…………………………………………….864.7857.37.4Long term liabilities………………………………………………….164.4142.821.6Redeemable preferred stock………………………………………………….187.5171.915.6Total liabilities…………………………………………………….$1,592.4$1,627.6($35.2)Shareholders equity…………………………………………………….198.0219.3(21.3)Total liabilities and shareholders equity………………………….$1,790.4$1,846.9($56.5)Memo: DebtLong-term debt …………………………………………………………………..864.7857.37.4NA Forging IRB…………..………………………………………………………………-7.5(7.5)NA Forging Capital Leases…………………………………………………………………..-0.3(0.3)Unamortized discount………………………………………………………………………….4.14.2(0.1)A/R Securitization Facility………………………………………………………..66.583.4(16.9)Total Debt…………………………………………………………………………………………..$935.3$952.7($17.4)

 

Summary Cash Flow Statement ($ in millions) Q2 YTD 2006Q2 YTD 2005Net Loss………………..…………………………………………………………………………………………….(51.9)$ (3.4)$ Depreciation and amortization……………………………………………………………………….65.852.5Debt fee amortization………………………………………………………………………………….2.81.6Fixed asset losses………………………………………………………………………………………….7.80.3Loss from discontinued operations, net of tax…………………………..…………………………………………….0.41.1Loss on discontinued operations, net of tax…………………………..…………………………………………….6.9-Deferred income taxes………………………………………………………………………………………..0.3(11.5)Preferred stock dividends………………………………………………………………………………………….15.611.0Non-cash interest expense………….………………………………………………………………………………………0.20.1Equity earnings from affiliates, net of dividends…………………………..(1.6)(1.6)Curtailment (gain) loss on elimination of certain benefits…………………………………………………………………………………………………………………….0.2(4.6)Discontinued operations………………………………………………………………………………………………………………….(1.6)10.0Other, net…………………………………………………………………………………………………………………….(0.7)(0.5)AR Securitization…………………………………………………………………………………………………………………….(16.8)38.6Changes in working capital……………………………...……..………………………………………………………………………..(2.9)(31.2)Change in other long-term assets……………………………...……..………………………………………………………………………..(1.0)(3.0)Change in other long-term liabilities……………………………...……..………………………………………………………………………..(5.9)(4.2)Net cash provided by operating activities……………………………………..………………...…..………………………………………………………17.455.4Capital expenditures………………..………………………………………………………………….(47.1)(54.2)Repurchase of leased assets……………..………………………………………………….(40.0)-Proceeds from sale/leaseback of fixed assets………………………………………………….-16.4Reimbursement from acquisition of bus., net of cash recvd………………………………………………….-8.0Discontinued operations investing activities………………..………………………………………………….(2.5)(5.0)Proceeds from sale of discontinued operations…………………...………………………………………………………………………………….69.1-Net cash used for investing activities……………………………………..………………...…..………………………………………………………(20.6)(34.9)Proceeds from term loan facilities…………….…………………………………………………………………………………58.9-Principal payments of term loan facilities…………….…………………………………………………………………………………(25.5)(0.4)Proceeds of revolving credit facility…………….…………………………………………………………………………………145.0215.0Principal payments on revolving credit facility…………….…………………………………………………………………………………(169.6)(228.5)Proceeds of other debt…………….…………….…………………………………………………………………………………4.33.0Principal payments of other debt…………….…………………………………………………………………………………(6.5)(8.8)Capitalization of debt refinancing fees………………………………….…………….…………………………………………………………………………………(2.3)-Issuance of stock options………………………………….…………….…………………………………………………………………………………0.1-Discontinued operations financing activities………………..………………………………………………….-(0.1)Net cash provided by (used for) financing activities……………………………………..………………...…..………………………………………………………4.5(19.9)Effect of exchange on cash……...………………………………….…………….…………………………………………………………………………………0.9(0.6)Net decrease in cash……...………………………………….…………….…………………………………………………………………………………2.10.0Cash and cash equivalents, beginning of period……...………………………………….…………….…………………………………………………………………………………3.7-Cash and cash equivalents, end of period……...………………………………….…………….…………………………………………………………………………………5.8$ 0.0

 

($ in millions) Metaldyne Undrawn Commitments at 7-02-06 Revolving Credit Commitment………………………………………………………………………………………………………………………………$200.0Amount Outstanding…………………………………………………………………………………………………………………………………………(35.0)Letters of Credit …………………………………………………………………………………………………………………………………………(53.2)Undrawn Revolver Commitments………………………………………………..111.8AR Securitization Gross Availability…………………………………………………………75.5AR Securitization Outstanding…………………………………………………………(66.5)AR Securitization Net Availability……………………………8.9Total Net Undrawn Commitments Available……………………………………………………………………………………………….$120.7Net Cash………………………………………………………………………………5.8Net Commitments Available incl. Cash………………………………..$126.5Adjustment Based Upon Leverage…………………………………………………-Net Liquidity Available incl. Cash………………………………..$126.5

 

Net Loss to EBITDA Bridge ($ in Millions) Q2 2006Q2 2005Q2 2006Q2 2005Net loss……………………………………………………………………………………………….(16.5)$ 0.1$ (51.9)$ (3.4)$ Income tax (benefit) expense……………………………………………………………………….5.51.710.50.1Loss from discontinued operations, net of tax……………………………………………………………………….-0.50.41.1Loss on discontinued operations, net of tax……………………………………….--6.9-Interest expense……………………………………………………………………………………24.221.748.144.3Depreciation and amortization in operating profit……………………………………………………28.926.465.752.6Preferred stock dividends and accretion…………………………………………………………..9.15.615.611.0Equity income from affiliates, net…………………………………………………………….(0.7)(1.0)(1.6)(1.6)Certain items within other, net…………………………………………………………………….4.62.78.25.0Adjusted EBITDA from continuing operations………………………………………………………………………………….55.1$ 57.7$ 101.9$ 109.1$ Three Months EndedSix Months Ended

 

Net Loss to Bank EBITDA Bridge ($ in Millions) Q2 2006Q2 Net loss (including discontinued operations)………………………..……………………………………………………………………………………………….(16.5)$ Income tax expense……………………………………………………………………………..5.5Gain from discontinued operations, net of tax……………………………………………………………………………..(0.0)Loss on discontinued operations, net of tax……………………………………………………………………………..-Interest charges……………………………………………………………………………………24.2Depreciation and amortization (inc. amortization of loss on sale-leasebacks)……………………………………………………30.6Foreign currency translation loss…………………………………………………………………..0.3Amortization of other non-cash items…………………………………………………………………..0.4Preferred stock dividends and accretion…………………………………………………………..9.1Deferred Financing Costs on Sale-Leaseback Arrangements…………………………………………………0.0Loss on abandonment of fixed assets…………………………………………………2.2Losses incurred in connection with sale of A/R…………………………………………………1.7Heartland monitoring fee……………………………………………………………………………………..1.0Q2 2006 Bank EBITDA………………………………………………………………………………….58.6$ Q1 2006 Bank EBITDA………………………………………………………………………………….55.9Q4 2005 Bank EBITDA………………………………………………………………………………….42.4Q3 2005 Bank EBITDA………………………………………………………………………………….44.5Expenses related to sale-leaseback repurchases……………………………………………………………………………..7.8North American Forging Divestiture - LTM EBITDA……………………………………………………………………………..(7.3)Consolidated Bank EBITDA for LTM ended July 2, 2006………………………………………………………….201.9$ 

 

NA Big Three Production In 1,000’s 2005 A2006 A% Change2005 A2006 A% Change2005 A2006 F% Change2005 A2006 F% Change2005 A2006 A/F% ChangeDaimler Chrysler……………………………………………..684661-3.4%784768-2.0%675645-4.4%64972712.0%2,7922,8010.3%Ford…………………………………………………………….924860-6.9%918909-1.0%734722-1.6%804766-4.7%3,3803,257-3.6%General Motors………………………………………………..1,1501,2357.4%1,2111,204-0.6%1,1151,038-6.9%1,2521,104-11.8%4,7284,581-3.1%Total NA Big Three Production……………………………………………….2,7582,756-0.1%2,9132,881-1.1%2,5242,405-4.7%2,7052,597-4.0%10,90010,639-2.4%TotalQ1Q2Q3Q4

 

Detail of Cash Flow Components 2006 Summary Q1Q2Employment Benefit Plan Funding:Pension Expense……………………………………………………….1.51.3Pension Contribution……………………………………………………….(4.7)(5.7)Difference……………………………………………………….(3.2)(4.4)Accounts Receivable Programs:Non Contractual Acclerated Collections………………………………………………….22.318.2Contractual Acclerated Collections………………………………………………….28.728.2Foreign Factoring……………………………..………………………………………………….50.853.2Net Cash Taxes.………………………………………………..(4.2)(11.1)