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Dana Corporation Page 57 of 176 Table of Contents Sales by segment for 2003 and 2002 are presented in the following table. DCC did not record sales in either year. The "Other" category in the table represents facilities that have been closed or sold and operations not assigned to the SBUs, but excludes discontinued operations. Strategic Business Unit Sales Analysis Dollar Change Due To Dollar % Currency 2003 2002 Change Change Effects Acquisitions/ Divestitures Organic Change & Other ASG EFMG HVTSG Other S3,777 $3,526 2,150 2,119 1,924 1,797 67 59 $251 31 127 8 7% $152 1% 110 7% 87 14% 3 $5 (18) -- -- $ 94 (61) 40 5 $7,918 $7,501 $417 6% $352 H $(13) mum $ 78 ASG principally serves the light vehicle market, with some sales of driveshaft business to the original equipment commercial vehicle market. As previously mentioned, production levels in ASG's largest market -- the North American light-duty market -- were down 4% in 2003. With more than 71% of its sales to this market, the lower production levels caused ASG's sales to decline in that market. More than offsetting the overall market decline in North America were new business gains by ASG that came on stream in 2003. New business gains came principally from new structures business with Ford on the F-series pickup, Expedition/ Navigator SUVs and Freestar minivan. Other new programs contributing to sales in 2003 were axle business with General Motors on the Express/ Savannah full-size van and system integration business with Ford in Australia. Like ASG, our EFMG unit sells primarily to the light vehicle segment of the market. By comparison to ASG, however, more of EFMG's sales are to the commercial vehicle and engine parts aftermarket segments. Approximately 95% of EFMG's sales are in North America and Europe. As the production levels were down or stable in these two regions, compared to 2002, EFMG experienced lower sales due to overall market conditions. This group experienced higher sales from the addition of net new programs commencing in 2003. However, the impact of sales gains from net new business was more than offset by lower production volumes, thereby resulting in a net organic sales reduction. HVTSG focuses on the commercial vehicle and off-highway markets. More than 95% of HVTSG's sales are in North America and Europe. In the commercial vehicle segment in both North America and Europe, production levels were relatively stable, with the North American Class 8 segment being down, as previously noted. Overall, off-highway production demands were also down in 2003. The net increase in organic sales in HVTSG was primarily due to new business commencing with certain off-highway customers in 2003. Other income was $103 in both 2003 and 2002. Other income in 2003 included, among other items, gains on note repurchases, divestitures and asset sales of $47, gains from the favorable settlement of sales tax obligations in India of $6, favorable resolution of a contingency relating to the FTE business sold in 2002 of $5, Australian export credits of $6 and commission income of $5. These items were partially offset by expense incurred in connection with an unsolicited tender offer for our common stock. http://www.sec.gov/Archives/edgar/data/26780/000095015204001384/105571ael0vk.htm 8/1/2004