EX-99 2 exh_99.htm EXHIBIT 99

Exhibit 99

 

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.                                       
(United States dollars in millions, except per share figures) (Unaudited)                                      
Prepared in accordance with U.S. GAAP                                      
                                               
              2018   2019   2020
          Note   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL
VEHICLE VOLUME STATISTICS (in millions)                      
North American vehicle volumes (including Mexico)     4.408 4.355 4.040 4.206 17.009   4.227 4.249 3.909 3.911 16.296   3.777 1.240 3.945 4.022 12.984
                                               
European vehicle volumes:                                      
  Western Europe       3.939 4.005 2.997 3.388 14.329   3.720 3.614 2.999 3.285 13.618   2.893 1.164 2.603 3.397 10.057
  Eastern Europe       1.972 2.068 1.694 2.064 7.798   2.013 2.063 1.672 1.987 7.735   1.801 0.922 1.664 2.025 6.412
    Total Europe     5.911 6.073 4.691 5.452 22.127   5.733 5.677 4.671 5.272 21.353   4.694 2.086 4.267 5.422 16.469
                                               
Asia volumes         12.558 12.324 11.684 12.884 49.450   11.893 11.181 10.975 13.093 47.142   8.167 8.507 10.926 13.794 41.394
                                               
China volumes         6.663 6.614 6.094 6.990 26.361   6.024 5.484 5.631 7.422 24.561   3.228 5.835 6.291 8.176 23.530
                                               
Magna Steyr vehicle assembly volumes     0.041 0.033 0.034 0.037 0.145   0.046 0.043 0.035 0.034 0.158   0.031 0.017 0.027 0.035 0.110
                                               
AVERAGE FOREIGN EXCHANGE RATES                                      
1 Canadian dollar equals U.S. dollars     0.790 0.775 0.765 0.756 0.771   0.752 0.748 0.757 0.758 0.754   0.745 0.722 0.751 0.767 0.746
1 Euro equals U.S. dollars     1.229 1.193 1.163 1.141 1.181   1.135 1.124 1.112 1.107 1.119   1.102 1.101 1.170 1.192 1.141
1 Chinese renminbi equals U.S. dollars     0.157 0.157 0.147 0.145 0.151   0.148 0.147 0.142 0.142 0.145   0.143 0.141 0.145 0.151 0.145
                                               
CONSOLIDATED STATEMENTS OF INCOME (LOSS)                                      
Sales           10,792      10,280        9,618      10,137 40,827   10,591      10,126        9,319        9,395 39,431   8,657        4,293        9,129      10,568 32,647
                                               
Costs and expenses:                                        
  Cost of goods sold     9,293        8,795        8,253        8,714 35,055   9,164        8,710        8,063        8,085 34,022   7,567        4,206        7,681        8,753 28,207
  Selling, general and administrative      396           434           403           431 1,664   421           453           400           423 1,697   381           378           380           448 1,587
  Equity income       (87)            (72)            (62)            (56) (277)   (35)            (48)            (37)            (58) (178)   (30)            (25)            (44)            (90) (189)
  EBITDA     2   1,190        1,123        1,024        1,048 4,385   1,041        1,011           893           945 3,890   739          (266)        1,112        1,457 3,042
  Depreciation and amortization     315           320           325           318 1,278   321           334           335           355 1,345   336           334           334           362 1,366
  EBIT     3   875           803           699           730 3,107   720           677           558           590 2,545   403          (600)           778        1,095 1,676
  Interest expense, net     21             23             23             26 93   31             14             18             19 82   17             21             26             22 86
Operating income (loss) 2   854 780 676 704 3,014   689 663 540 571 2,463   386 (621) 752 1,073 1,590
Other expense (income), net 2   3 (39) 2 97 63   (679) 68 859 (8) 240   - 168 316 100 584
Income (loss) from operations before income taxes               851           819           674           607        2,951          1,368           595          (319)           579        2,223             386          (789)           436           973        1,006
Income tax expense (benefit)     182           183           114           140 619   267           145             45           134 591   134          (137)           109           223 329
Net income (loss)       669           636           560           467 2,332   1,101           450          (364)           445 1,632   252          (652)           327           750 677
(Income) loss attributable to non-controlling interests 2   (9)            (10)              (6)            (11) (36)   5               2           131              (5) 133   9               5             78            (12) 80
Net income (loss) attributable to Magna International Inc.     660 626 554 456 2,296   1,106 452 (233) 440 1,765   261 (647) 405 738 757
                                               
Adjusted net income (loss) attributable to Magna International Inc. 2   663 590 535 542 2,330   531 509 438 433 1,911   261 (511) 585 851 1,186
                                               
Diluted earnings (loss) per share:                                      
  Diluted          $      1.83  $      1.77  $      1.62  $      1.37  $      6.61    $      3.39  $      1.42  $     (0.75)  $      1.43  $      5.59    $      0.86  $     (2.17)  $      1.35  $      2.45  $      2.52
  Adjusted Diluted        $      1.84  $      1.67  $      1.56  $      1.63  $      6.71    $      1.63  $      1.59  $      1.41  $      1.41  $      6.05    $      0.86  $     (1.71)  $      1.95  $      2.83  $      3.95
                                               
                                               
Weighted average number of Common Shares outstanding                                       
  during the year (in millions):     359.9 354.1 343.0 333.2 347.5   326.3 319.5 310.7 306.3 315.8   302.7 298.4 299.4 300.9 300.4
                                               
PROFITABILITY RATIOS                                      
  Selling, general and administrative /Sales     3.7% 4.2% 4.2% 4.3% 4.1%   4.0% 4.5% 4.3% 4.5% 4.3%   4.4% 8.8% 4.2% 4.2% 4.9%
  EBITDA /Sales       11.0% 10.9% 10.6% 10.3% 10.7%   9.8% 10.0% 9.6% 10.1% 9.9%   8.5% -6.2% 12.2% 13.8% 9.3%
  EBIT /Sales         8.1% 7.8% 7.3% 7.2% 7.6%   6.8% 6.7% 6.0% 6.3% 6.5%   4.7% -14.0% 8.5% 10.4% 5.1%
  Operating income(loss) /Sales     7.9% 7.6% 7.0% 6.9% 7.4%   6.5% 6.5% 5.8% 6.1% 6.2%   4.5% -14.5% 8.2% 10.2% 4.9%
  Effective tax rate                                      
    Reported       21.4% 22.3% 16.9% 23.1% 21.0%   19.5% 24.4% -14.1% 23.1% 26.6%   34.7% 17.4% 25.0% 22.9% 32.7%
    Excluding Other expense (income), net of taxes     21.3% 23.1% 20.0% 21.4% 21.5%   23.7% 23.5% 19.6% 23.3% 22.7%   34.7% 16.9% 22.6% 19.6% 25.7%

 

 Page 1 of 6 

 

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.                                    
CONSOLIDATED BALANCE SHEETS                                    
(United States dollars in millions) (Unaudited)                                    
                                             
              2018     2019     2020
              1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q
ASSETS                 [Note 1]                  
Current assets:                                        
  Accounts receivable     8,073        7,656        7,160        6,548     7,446        7,204        7,068        5,927     5,684        5,253        6,618        6,394
  Inventories         3,564        3,600        3,580        3,403     3,501        3,521        3,457        3,304     3,531        3,503        3,509        3,444
  Prepaid expenses and other     250           201           237           250     275           278           211           238     234           303           265           260
                   11,887      11,457      10,977      10,201          11,222      11,003      10,736        9,469            9,449        9,059      10,392      10,098
Current liabilities:                                      
  Accounts payable and other accruals     9,855        9,048        8,847        8,597     9,347        9,048        8,757        8,198     8,381        6,992        8,905        9,373
                                             
Working capital          2,032        2,409        2,130        1,604     1,875        1,955        1,979        1,271     1,068        2,067        1,487           725
Investments                2,132        2,320        2,337        2,189            2,408        2,334        1,430        1,210            1,336        1,336        1,143           947
Fixed assets, net              8,204        8,026        7,743        8,095            7,958        8,109        7,943        8,260            7,948        7,860        7,898        8,475
Goodwill, other assets and intangible assets     3,837        3,684        3,467        3,527     3,487        3,593        3,461        3,456     3,340        3,362        3,423        3,539
Operating lease right-of-use assets                   -                 -                 -                 -              1,716        1,744        1,702        1,811            1,788        1,777        1,787        1,906
                   16,205      16,439      15,677      15,415          17,444      17,735      16,515      16,008          15,480      16,402      15,738      15,592
Net assets held for sale                    -                 -             568           541                   -                 -                 -                 -                     -                 -                 -                 -  
Funds employed              16,205      16,439      16,245      15,956          17,444      17,735      16,515      16,008          15,480      16,402      15,738      15,592
FINANCING                                        
Straight debt:                                        
  Cash and cash equivalents     (769)          (626)          (884)          (684)     (925)          (563)          (769)       (1,276)     (1,146)          (533)       (1,498)       (3,268)
  Short-term borrowings     262        1,123        1,291        1,098     335           199           436                -     -           188                -                -
  Long-term debt due within one year     114           120           231           201     122           112           104           106     93           150             98           129
  Long-term debt       3,220        3,115        3,112        3,084     3,062        3,071        3,021        3,062     3,021        3,771        3,832        3,973
  Current portion of operating lease liabilities     -                -                -                -     176           214           218           225     218           221           226           241
  Operating lease liabilities     -                -                -                -            1,566        1,544        1,527        1,601            1,586        1,577        1,582        1,656
                     2,827        3,732        3,750        3,699            4,336        4,577        4,537        3,718            3,772        5,374        4,240        2,731
Long-term employee benefit liabilities     691           659           592           597     598           606           584           677     659           675           696           729
Other long-term liabilities     340           314           291           400     396           404           388           371     420           390           305           332
Deferred tax liabilities, net     54             86           107           101     167           196           133           111     87             10             87             80
                     1,085        1,059           990        1,098            1,161        1,206        1,105        1,159            1,166        1,075        1,088        1,141
Shareholders' equity       12,293      11,648      11,505      11,159     11,947      11,952      10,873      11,131     10,542        9,953      10,410      11,720
                   16,205      16,439      16,245      15,956          17,444      17,735      16,515      16,008          15,480      16,402      15,738      15,592
                                                        
                                             
                                             
ASSET UTILIZATION RATIOS                                    
  Days in accounts receivable     67.3 67.0 67.0 58.1     63.3 64.0 68.3 56.8     59.1 110.1 65.2 54.5
  Days in accounts payable     95.4 92.6 96.5 88.8     91.8 93.5 97.7 91.3     99.7 149.6 104.3 96.4
  Inventory turnover - cost of sales     10.4 9.8 9.2 10.2     10.5 9.9 9.3 9.8     8.6 4.8 8.8 10.2
  Working capital turnover      21.2 17.1 18.1 25.3     22.6 20.7 18.8 29.6     32.4 8.3 24.6 58.3
  Total asset turnover      2.7 2.5 2.5 2.6     2.4 2.3 2.3 2.3     2.2 1.0 2.3 2.7
                                             
CAPITAL STRUCTURE                                    
  Straight debt       17.4% 22.7% 23.1% 23.2%     24.9% 25.8% 27.5% 23.2%     24.4% 32.8% 26.9% 17.5%
  Long-term employee benefit liabilities, other long-term                                    
    liabilities & deferred tax liabilities, net     6.6% 6.4% 6.1% 6.9%     6.6% 6.8% 6.7% 7.2%     7.5% 6.6% 6.9% 7.3%
  Shareholders' equity      75.9% 70.9% 70.8% 69.9%     68.5% 67.4% 65.8% 69.5%     68.1% 60.7% 66.1% 75.2%
              100.0% 100.0% 100.0% 100.0%     100.0% 100.0% 100.0% 100.0%     100.0% 100.0% 100.0% 100.0%
                                             
  Debt to total capitalization      22.6% 27.2% 28.7% 28.2%     30.6% 30.1% 32.8% 31.0%     31.8% 37.2% 35.5% 33.9%
                                             
  Adjusted Debt to Adjusted EBITDA 2   1.18x 1.32x 1.37x 1.32x     1.18x 1.18x 1.26x 1.23x     1.30x 2.30x 2.07x 1.84x
ANNUALIZED RETURNS                                    
  Return on assets (EBIT/assets employed)     21.6% 19.5% 17.8% 18.9%     16.5% 15.3% 13.5% 14.7%     10.4% -14.6% 19.8% 28.1%
  Return on equity (Net income attributable to Magna                                    
    International Inc. / Average shareholders' equity)     22.0% 20.9% 19.1% 16.1%     38.3% 15.1% -8.2% 16.0%     9.6% -25.3% 15.9% 26.7%
  Adjusted Return on equity (Adjusted Net income attributable                                    
     to Magna International Inc. / Average shareholders' equity)     22.1% 19.7% 18.5% 19.1%     18.4% 17.0% 15.4% 15.7%     9.6% -19.9% 23.0% 30.8%

 

 Page 2 of 6 

 

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.                                      
CONSOLIDATED STATEMENTS OF CASH FLOWS                                      
(United States dollars in millions) (Unaudited)                                      
                                               
              2018   2019   2020
Cash provided from (used for): Note   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL
                               
Operating activities                                        
  Net income (loss)               669           636           560           467        2,332          1,101           450          (364)           445        1,632             252          (652)           327           750           677
  Items not involving current cash flows               363           303           339           534        1,539            (213)           470        1,210           509        1,976             363           354           767           581        2,065
                     1,032           939           899        1,001        3,871             888           920           846           954        3,608             615          (298)        1,094        1,331        2,742
  Changes in operating assets and liabilities              (455)          (472)           177           597          (153)            (294)               -              (96)           742           352               24          (934)           518           928           536
Cash provided from (used for) operating activities               577           467        1,076        1,598        3,718             594           920           750        1,696        3,960             639       (1,232)        1,612        2,259        3,278
                                                     
Investment activities                                              
  Fixed asset additions               (243)          (379)          (381)          (647)       (1,650)            (251)          (328)          (349)          (513)       (1,441)            (203)          (169)          (213)          (560)       (1,145)
  Increase in investments, other assets and intangible assets              (109)          (103)          (114)          (150)          (476)              (77)          (102)            (83)          (122)          (384)              (93)            (72)            (68)            (98)          (331)
  Increase in private equity investments                  (5)               -                 -                 -                (5)                (5)              (5)               -                 -              (10)            (100)              (2)            (12)            (18)          (132)
  Proceeds from disposition                 29             48             76             70           223               86             26             57             16           185               23             11             14             69           117
  Proceeds from sale of (Investment in) Lyft, Inc.                   -            (200)            (20)               -            (220)                 -                 -               10           221           231                 -                 -                 -                 -                 -  
  Business combinations                   -                 4               -            (152)          (148)                 -            (152)               -                 5          (147)                (7)               -                 -               98             91
  Sale of Fluid Pressure & Controls Business ["FP&C"]                   -                 -                 -                 -                 -            1,129               -                 3               -          1,132                 -                 -                 -                 -                 -  
Cash (used for) provided from investment activities              (328)          (630)          (439)          (879)       (2,276)             882          (561)          (362)          (393)          (434)            (380)          (232)          (279)          (509)       (1,400)
                                                     
Financing activities                                              
  Net issues (repayments) of debt                   3           886           262          (284)           867            (855)          (187)           251          (435)       (1,226)                (6)           962          (246)            (27)           683
  Common Shares issued on exercise of stock options                   5             41               1               3             50                 8               6             19             11             44                 1               1             15             64             81
  Repurchase of Common Shares              (103)          (729)          (520)          (479)       (1,831)            (284)          (409)          (342)          (254)       (1,289)            (201)               -                (2)               -            (203)
  Tax withholdings on vesting of equity awards                   -                (2)              (4)            (10)            (16)                (3)              (2)               -                (4)              (9)              (10)               -                 -                (3)            (13)
  Contributions to subsidiaries by non-controlling interests                   -                 4               -                 -                 4                 2               -                 2               -                 4                 -                 -                 -               18             18
  Dividends paid to non-controlling interests                   -              (30)               -              (39)            (69)                 -              (13)               -                (9)            (22)                (3)              (3)               -              (12)            (18)
  Dividends paid                (118)          (115)          (109)          (106)          (448)            (119)          (110)          (109)          (111)          (449)            (121)          (116)          (115)          (115)          (467)
Cash provided from (used for) financing activities              (213)             55          (370)          (915)       (1,443)         (1,251)          (715)          (179)          (802)       (2,947)            (340)           844          (348)            (75)             81
Effect of exchange rate changes on cash, cash equivalents                                            
  and restricted cash equivalents                 10            (31)            (10)              (5)            (36)               14              (4)              (9)             10             11              (52)               9            (15)             81             23
Net increase (decrease) in cash, cash equivalents                                      
  and restricted cash equivalents during the period                 46          (139)           257          (201)            (37)             239          (360)           200           511           590            (133)          (611)           970        1,756        1,982
Cash, cash equivalents and restricted cash equivalents,                                      
  beginning of period 4             839           885           746        1,003           839             802        1,041           681           881           802          1,392        1,259           648        1,618        1,392
Cash, cash equivalents and restricted cash equivalents,                                            
  end of period                 885           746        1,003           802           802          1,041           681           881        1,392        1,392          1,259           648        1,618        3,374        3,374

 

 Page 3 of 6 

 

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.                                        
(United States dollars in millions, except per share figures) (Unaudited)                                        
     
    This Analyst should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020.
                                           
Note 1:  LEASES ADOPTION                                        
     
    On January 1, 2019, the Company adopted ASC 842, Leases using the modified retrospective transition approach, without restatement of comparative periods' financial information. The adoption requires the Company to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets.
                                                 
Note 2: NON-GAAP MEASURES                                        
     
    The Company presents Operating income, EBIT (Earnings before interest and taxes) and EBITDA (Earnings before interest, taxes and depreciation and amortization) before Other expense (income),net.  The Company also presents Adjusted Net Income (Net Income before Other expense (income),net , net of tax and excluding significant income tax valuation allowance adjustments), Adjusted Diluted Earnings per Share, Adjusted EBIT and Adjusted EBIT as a percentage of sales, Return on Invested Capital and Return on Equity. The Company calculates Adjusted Debt as total debt adjusted to include pension and lease liabilities and Adjusted EBITDA as earnings before, interest, net, taxes, depreciation and amortization adjusted to add back interest income, certain pension costs and operating lease expense. The Company presents these financial figures because such measures are widely used by analysts and investors in evaluating the operating performance of the Company.  However, such measures do not have any standardized meaning under U.S. generally accepted accounting principles and may not be comparable to the calculation of similar measures by other companies.

Other expense (income), net consists of:
                                                 
              2018   2019   2020  
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL  
                                                 
    Impairments and loss on sale of equity-accounted investments [a]   - - - 60 60   - - 700 - 700   - - 337 10 347  
    Restructuring and impairments [b]   3 17 2 37 59   14 7 34 3 58   - 168 - 101 269  
    Net (gains) losses on investments [c]   - (56) - - (56)   (177) 67 127 (11) 6   - - (21) (11) (32)  
    Gain on the sale of business [d]   - - - - -   (516) (6) (2) - (524)   - - - - -  
                                                 
              3            (39)               2             97             63   (679)             68           859              (8)           240   -           168           316           100           584  
  [a] Impairments and loss on sale of equity-accounted investments                                      
     
    In the fourth quarter of 2020, the Company recorded a $ 10 million loss in Power & Vision on the sale of its 50% interest in Dongfeng Getrag Transmission Co. Ltd.

In Power & Vision, during the third quarter of 2020, the Company recorded impairment charge of $337 million on investment.

In Power & Vision, during the third quarter of 2019, the Company recorded $700 million impairment on its equity accounted investment.

During the fourth quarter of 2018, the Company recorded a $60 million impairment charge on its equity accounted investment in Power & Vision.
     
  [b] Restructuring and impairments                                        
                                             
    COVID-19 Restructuring and Impairments: [i]     2018   2019   2020  
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL  
    Power & Vision                    -                -                -                -                -                  -                -                -                -                -                  -           115                -                -           115  
    Body Exteriors & Structures                    -                -                -                -                -                  -                -                -                -                -                  -             37                -                -             37  
    Seating Systems     - - - - -   - - - - -   - 16 - - 16  
              -                -                -                -                -   -                -                -                - -   -           168                -                -           168  
    Restructuring:      2018   2019   2020  
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL  
    Power & Vision                   3             12               2               3             20                  -                -                -                -                -                  -                -                -                -                -  
    Body Exteriors & Structures                    -               5                -             20             25               14               7               7               3             31                  -                -                -             21             21  
    Seating Systems     - - - - -   - - - - -   - - - - -  
              3             17               2             23             45   14               7               7               3 31   -                -                -             21             21  
    Impairments:     2018   2019   2020  
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL  
    Power & Vision                    -                -                -                -                -                  -                -             27                -             27                  -                -                -                -                -  
    Body Exteriors & Structures                    -                -                -             14             14                  -                -                -                -                -                  -                -                -             57             57  
    Seating Systems                    -                -                -                -                -                  -                -                -                -                -                  -                -                -                -                -  
              -                -                -             14             14   -                -             27                - 27   -                -                -             57             57  
    Brazil Closures: [ii]     2018   2019   2020  
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL  
    Body Exteriors & Structures                    -                -                -                -                -                  -                -                -                -                -                  -                -                -               8               8  
    Seating Systems     - - - - -   - - - - -   - - - 15 15  
              -                -                -                -                -   -                -                -                - -   -                -                -             23             23  
                                                 
      [i] In response to the impact that COVID-19 was expected to have on vehicle production volumes over the short to medium term, the Company initiated and/or accelerated the timing of restructuring plans to right-size its business.  These restructuring actions include plant closures and workforce reductions.
      [ii] In connection with the recently announced plant closures by Ford Motor Co. in Brazil, the Company made the decision to accelerate the [closure/restructuring] of two facilities in Brazil that supply these plants.

 

 Page 4 of 6 

 

                                                 
  [c] Net (gains) losses on investments
     
    In Corporate, during the third and fourth quarter of 2020, the Company remeasured its private equity investments at fair value resulting in a $21 million and $13 million gain, respectively. In additions, the Company recorded a non-cash impairment charge of $2 million on its private equity investment in Corporate.

In Corporate, during the first, second, third and fourth quarters of 2019, the Company recorded gains of $177 million, net losses of $67 million, net losses of $127 million, and net gains of $11 million respectively, substantially related to the revaluation of its investment in Lyft, Inc.

In Corporate, during the second quarter of 2018, the Company remeasured its private equity investments at fair value resulting in a $56 million gain, of which $46 million related to its investment in Lyft, Inc. 
     
  [d] Gain on the sale of business
     
    In Power & Vision, during the first quarter of 2019, the Company recorded a gain on the sale of its Fluid Pressure & Controls ["FP&C"] business of $516 million. In the second and third quarters of 2019, the Company recorded an increase in the gain on sale of $6 million and $2 million, respectively, as a result of finalizing the proceeds relating to working capital. 
     
    The following table reconciles Net (loss) income attributable to Magna International Inc. to Adjusted net income attributable to Magna International Inc.:
                         
              2018   2019   2020  
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL  
                                 
                                                 
    Net income (loss) attributable to Magna International Inc.     660           626           554           456        2,296   1,106           452          (233)           440        1,765   261          (647)           405           738           757  
      Exclude:                                         
        Impairments and loss on sale of equity-accounted investments [e]     -                -                - 59             59   -                -           537 -           537   -                -           200 19           219  
        Restructuring and impairments     3 17 2 33             55   14 7 27 3             51   - 136 - 101           237  
        Net (gains) losses on investments     - (53) - -            (53)   (151) 57 109 (10)               5   - - (20) (7)            (27)  
        Gain on the sale of business     - - - -                -   (438) (7) (2) -          (447)   - - - -                -  
        US tax reform     - - - 11             11   - - - -                -   - - - -                -  
        Reassessment of deferred tax balances - FP&C [f]     - - (21) -            (21)   - - - -                -   - - - -                -  
        Adjustment to tax valuation allowance in India      - - - (17)            (17)   - - - -                -   - - - -                -  
                                      -                      -  
    Adjusted net income (loss) attributable to Magna International Inc.   663           590           535           542        2,330   531           509           438           433        1,911   261          (511)           585           851        1,186  
                                                 
                                                 
    Diluted earnings (loss) per share      $      1.83  $      1.77  $      1.62  $      1.37  $      6.61    $      3.39  $      1.42  $     (0.75)  $      1.43  $      5.59    $      0.86         (2.17)          1.35  $      2.45  $      2.52  
      Exclude:                                        
        Impairments and loss on sale of equity-accounted investments [e]     -               -                 -            0.18 0.18   -               -            1.74               -   1.70   -               -            0.67          0.06 0.73  
        Restructuring and impairments     0.01          0.05               -            0.10 0.16   0.04          0.02          0.08          0.01 0.16   -          0.46               -            0.34 0.79  
        Net (gains) losses on investments     -         (0.15)               -                 -   (0.15)   (0.46)          0.17          0.35         (0.03) 0.02   -               -           (0.07)         (0.02) (0.09)  
        Gain on the sale of business     -               -                 -                 -   -   (1.34)         (0.02)         (0.01)               -   (1.42)   -               -                 -                 -   -  
        US tax reform     -               -                 -            0.03 0.03   -               -                 -                 -   -   -               -                 -                 -   -  
        Reassessment of deferred tax balances - FP&C [f]     -               -           (0.06)               -   (0.06)   -               -                 -                 -   -   -               -                 -                 -   -  
        Adjustment to tax valuation allowance in India     -               -                 -           (0.05) (0.05)   -               -                 -                 -   -   -               -                 -                 -   -  
                                                 
    Adjusted diluted earnings (loss) per share       $      1.84  $      1.67  $      1.56  $      1.63  $      6.72    $      1.63  $      1.59  $      1.41  $      1.41  $      6.05    $      0.86  $     (1.71)  $      1.95  $      2.83  $      3.95  
                                             
  [e] Impairment charges                                        
     
    Impairment charges relating to the Company's equity accounted investment for 2019 and 2020, include $127 million and $ 75 million, respectively, attributable to non-controlling interest.
                                             
  [f] Reassessment of deferred tax balances - FP&C                                        
     
    Reassessment of deferred tax balances relating to timing differences that reversed on closing of the sale of the global FP&C business.

 

 Page 5 of 6 

 

Note 3: SEGMENTED INFORMATION                                        
     
              2018   2019   2020  
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL  
    Body Exteriors & Structures Group                        
      Sales     4,619 4,551 4,180 4,177 17,527   4,308 4,243 3,984 3,923 16,458   3,676 1,623 3,858 4,393 13,550  
      Adjusted EBIT     343 388 326 356 1,413   363 341 306 289 1,299   199 (315) 390 543 817  
      Adjusted EBIT as a percentage of sales     7.4% 8.5% 7.8% 8.5% 8.1%   8.4% 8.0% 7.7% 7.4% 7.9%   5.4% -19.4% 10.1% 12.4% 6.0%  
                                                 
    Power & Vision                                        
      Sales     3,190 3,197 2,947 2,987 12,321   3,083 2,808 2,696 2,725 11,312   2,523 1,298 2,722 3,179 9,722  
      Adjusted EBIT     359 299 259 254 1,171   216 201 167 163 747   135 (226) 227 359 495  
      Adjusted EBIT as a percentage of sales     11.3% 9.4% 8.8% 8.5% 9.5%   7.0% 7.2% 6.2% 6.0% 6.6%   5.4% -17.4% 8.3% 11.3% 5.1%  
                                                 
    Seating Systems                                        
      Sales     1,470 1,424 1,219 1,435 5,548   1,433 1,452 1,266 1,426 5,577   1,261 524 1,280 1,390 4,455  
      Adjusted EBIT     130 117 69 110 426   94 83 56 79 312   40 (84) 66 85 107  
      Adjusted EBIT as a percentage of sales     8.8% 8.2% 5.7% 7.7% 7.7%   6.6% 5.7% 4.4% 5.5% 5.6%   3.2% -16.0% 5.2% 6.1% 2.4%  
                                                 
    Complete Vehicles                                        
      Sales     1,660 1,280 1,391 1,687 6,018   1,928 1,802 1,516 1,461 6,707   1,321 933 1,402 1,759 5,415  
      Adjusted EBIT     19 1 24 24 68   28 43 29 44 144   50 44 70 110 274  
      Adjusted EBIT as a percentage of sales     1.1% 0.1% 1.7% 1.4% 1.1%   1.5% 2.4% 1.9% 3.0% 2.1%   3.8% 4.7% 5.0% 6.3% 5.1%  
                                                 
    Corporate and other                                        
      Intercompany fees     (147) (172) (119) (149) (587)   (161) (179) (143) (140) (623)   (124) (85) (133) (153) (495)  
      Adjusted EBIT     24 (2) 21 (14) 29   19 9 0 15 43   (21) (19) 25 (2) (17)  
                                                 
    Total                                            
      Sales     10,792 10,280 9,618 10,137 40,827   10,591 10,126 9,319 9,395 39,431   8,657 4,293 9,129 10,568 32,647  
      Adjusted EBIT     875 803 699 730 3,107   720 677 558 590 2,545   403 (600) 778 1,095 1,676  
      Adjusted EBIT as a percentage of sales     8.1% 7.8% 7.3% 7.2% 7.6%   6.8% 6.7% 6.0% 6.3% 6.5%   4.7% -14.0% 8.5% 10.4% 5.1%  
                                                 
Note 4: CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS              
                                                 
    A reconciliation of Cash and cash equivalents and Restricted cash equivalents (included in prepaid expenses) to Total cash, cash equivalents and restricted cash equivalents is as follows:
                                                 
              2018     2019     2020    
              1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q    
                                                 
    Cash and cash equivalents     (769) (626) (884) (684)     (925) (563) (769) (1,276)     (1,146) (533) (1,498)       (3,268)    
    Restricted cash equivalents included in prepaid expenses              (116)          (120)          (119)          (118)     (116) (118) (112) (116)     (113) (115) (120)          (106)    
    Total cash, cash equivalents and restricted cash equivalents     (885) (746) (1,003) (802)     (1,041) (681) (881) (1,392)     (1,259) (648) (1,618)       (3,374)    

 

 

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