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market quickly and efficiently. The result is a powerful lineup of technologically advanced products finely tuned to maximize fuel economy and performance. 

## Streamlined Processes that Deliver Results 

Our culture defines who we are, where we focus our efforts, how we address challenges, and ultimately how well we perform. At Dana, we implement practices that drive continuous improvement and increasingly higher standards of efficiency. 

The Dana Operating System provides a framework for promoting our fundamental principles: individual responsibility and accountability combined with a lean mindset that encompasses the organization as a whole. Last year, we conducted more than 2,800 training sessions and employee workshops, as well as 45 Jishuken continuous-improvement activities, to produce significant savings and increase efficiency throughout every aspect of the business. 

## Local Responsibility for Implementing Global Strategy 

Our operating model, which emphasizes local ownership and has been ingrained in our culture, empowers our nearly 23,000 employees in 25 countries on six continents to make decisions on execution at the customer level. Those who serve on the front line are immersed in our customers’ markets, technologies, and cultures every day, and they possess the flexibility, urgency, and responsibility to address opportunities quickly and effectively. We support them with a proven operational structure, an unwavering commitment to quality and safety, and access to technological expertise wherever it resides in the world. 

This approach fosters a two-way dialogue between the strategic level and everyone involved in tactical execution that is reflected in our customers’ continuing confidence in our solutions and our ability to meet their requirements. In fact, our 2015-2017 sales backlog – new business net of any losses – has surged to $730 million, a 30 percent increase over the three-year backlog announced in early 2014. 

## Simplified Capital Structure that Benefits Shareholders 

Over the past several years, we have taken steps to greatly simplify our capital structure and drive superior value for our shareholders. Through our $1.4 billion share repurchase program, we have repurchased 30 million shares of common stock and redeemed 

our former Series A preferred stock, returning $1.1 billion to our shareholders since program inception. Our rising share price also led to the conversion of all remaining Series B preferred stock during 2014. 

Additionally, we have paid quarterly dividends to our common shareholders for the past 12 quarters without interruption, and in 2014 we refinanced a portion of our senior notes, lowering interest costs and extending maturities. 

These actions have provided Dana with a solid footing and position us to weather currency headwinds, ensure our access to capital markets, fund capital investments that support our growth, and enhance our ability to make acquisitions of adjacent technologies that will support our growth strategy. 

## Looking Forward to a Strong Future 

Thanks to the support of our board of directors, invested leadership at every level, and engagement of our employees, we have transformed Dana into an efficient and focused enterprise poised to deliver consistent shareholder value well into the future. 

As I look forward to my final year before retiring from Dana, I am excited about the ways our talented people have integrated a high- performance culture, market-driven innovations, and an unmatched skill for execution amid challenges. 

I join our board of directors and my fellow Dana employees in offering our thanks for your confidence in our continued success as we leverage our undeniable momentum through an efficient, thoughtfully designed system to deliver the innovations that will continue to shape the future of energy management and power conveyance. 

Sincerely, 

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