EX-99.1 2 exh_991.htm EXHIBIT 99.1

Exhibit 99.1

 

Powerin g Profitable Growt h i n a Transforming Industry Magn a Investo r E ven t | Apri l 13 , 2021

 

 

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Start - up culture for 60+ years 5

 

 

1957 - 2020 SALES GROWTH 2019 $40B S A LES F A C I L I T I ES 196 0 197 0 198 0 199 0 200 0 201 0 2020 PEAK SALES EMPLOYEES CAGR 1960’s $4M 1970’s $108M 38% 1980’s $1B 28% 130 17k 1990’s $9B 22% 174 59k 2000’s $26B 6% 241 84k Hydroformed Frames Complet e I nteriors Complete Vehicles 1960’s 1970’s 1980’s 1990’s 2000’s 2010’s Sun Visor Bracket Smal l Stampings Founder, Frank Stronach Entere d Plast i cs Single Belt Pulley Leadersh i p Integrated Child Safety Seats First RIM Fascias Clas s A Stampings History rich in innovation and key investments Electric V e h i c l e De v elopment Expansion in Asia Vision Systems Innovation 2010’s $41B 9% 348 174k MAX4 L4 Autonomous Vehicle Transmissions Plast i c Liftgates 6

 

 

5 Y ea r Return o f Capital $7.6B T ea m Members 158K 5 Y ear Investment i n Business $12.5B Numbe r o f Countries 27 Facilities World’s 34 2 Third Larges t Supplier Customers 50+ 5 Y ea r TS R (NYSE) 100% Sales* $40B 5 Y ea r A verage W eighte d GoM 6% * 2021 Sales Outlook $40.0 B – $41.6B 7

 

 

Innovatio n and Start - u p Mindset Manufacturing Expertise Disciplined Profitable Growth Ou r People an d Culture Decentralized Structure 8

 

 

Secular Trends Driving Change 9

 

 

Th e Powe r o f M agna 10 Dee p produc t expertise Complet e vehicl e engineering an d manufacturing Integrate d system s level analysi s an d approach

 

 

Des i g n Re qui re ments Desig n Objectives Optimize d Products F la t Underbody Seat with Optimized Height eDrive Styling Packaging Functionality Manufacturability Affordability System s Approach Uniqu e Stylin g an d Packaging 11

 

 

Des i g n Re qui re ments Desig n Objectives Optimize d Products eDrive Light w ei g ht Products Software an d Controls Activ e Aero Efficiency Safety Dynamics Drivability Affordability System s Approach Best - in - Class Driving Range 12

 

 

System s Approach Optimizin g V isio n an d Respon s e Safety Convenience Efficiency Dynamics Affordability Digital Imagi n g Radar A d v anc e d Lighting Integr a t ed Cameras Front A d v anc e d Cameras U ltras onic Sensors Domain Controllers and S oft w a r e Single and Multi - C a m e ra Lo n g R an ge LiDAR Optimize d Products 13 Des i g n Re qui re ments Desig n Objectives Autonomous Valet Advanced Trailering High w ay Pilot Far Field & Near Field 3D Surround View Driver & Occupant Monitoring

 

 

Interior Sy s tems and Seating Body Stru c ture ECUs/DCUs Transmission Engine Sy s tems Exhaust Regulation Co m p one n ts Driving Systems (incl. chassis) Bod y Exterior (incl . Lighting and Mirrors) Complete Vehicle Engineering and Manu fa c t uri n g Thermal M an agement Sens o rs (ADAS) El ec t r oni cs – Other Po w e rtr a in - Agnostic ICE, 48 V H y brid Large Share of Components in Vehicles are Powertrain - Agnostic April 13, 2021 14

 

 

E V , HV H y brid Po w e rtr a in - Agnostic Power Electronics – EV, HV Hybrid Interior Sy s tems and Seating Body Stru c ture ECUs/DCUs Driving Systems (incl. chassis) Bod y Exterior (incl . Lighting and Mirrors) Complete Vehicle Engineering and Manu fa c t u ri n g Thermal M an agement Battery Pack Sens o rs (ADAS) E - Drivetrain El ec t r oni cs – Other Th e Majorit y o f Component s i n a n Electri c V ehicle Remain , Independen t o f th e Powertrain 15

 

 

Included in Magna’s portfolio EV Interior Sy s tems and Seating Body Stru c ture ECUs/DCUs Transmission Driving Systems (incl. chassis) Bod y Exterior (incl . Lighting and Mirrors) Sens o rs (ADAS) Power Electronics – EV, HV Hybrid Complete Vehicle Engineering and Manu fa c t uri n g Battery Pack E - Drivetrain Po w e rtr a in - Agnostic ICE Engine Sy s tems Exhaust Regulation Co m p one n ts Thermal M an agement El ec t r oni cs – Other Magna’s Portfolio is Future - Ready as the Transition to EVs Takes Place 16

 

 

Opportunitie s Ahea d with Go - Forwar d Strategy 17

 

 

Ke y Strategi c Drivers 2. Drive operational excellence 1. Accelerate deploymen t of capita l towards high - growth areas 3. Unloc k new busines s models an d markets 18

 

 

Accelerat e Deployment o f Capita l T owards High - Growt h Areas 19

 

 

Magna Sales over time Impact of Megatrends Toda y Future Positive Impact Aligned Negative Impact • Lighting • Activ e Aerodynamics • Body & Chassis • Dual Clutch Transmissions • Mirrors • Mechatronics • Seating • eDrives • Battery Enclosures • ADAS • Contract Vehicle Manufacturing • New Business Models • M anua l T ransmissions • 4WD/AWD • Fue l T anks Our Strategy is to Drive Growth in Positively Impacted Areas 20

 

 

Focus of this section EV Po w e rtr a in - Agnostic ICE Power Electronics – EV , HV Hybrid Interior Systems and S ea t i n g Body Stru c ture ECUs/DCUs Transmission Exhaust Regulation Co m p one n ts Driving Sy s tems (incl. Chassis) El ec t r on ics – Other Sens o rs (ADAS) Bod y Exterior (incl . Lighting and Mirrors) Complete Vehicle Engineering and Manu fa c tu r in g Thermal M an agement Battery Pack E - Drivetrain Engine Sy s tems Electrification Supporting our customers in achieving a zero - emissions future 21

 

 

MODULAR & SCALABLE BUILDING BLOCKS MODULAR & SCALABLE PRODUCTS Electrification Enablers Gearset s & Diffe r entials S y nchro Shifting S y stems Housing s & Coverings Clutche s & Decoupling Parklock O i l Hydraulics Contro l HW & Actuations Traction E - Motor Inverter S W & C ontrol Algorithms Manual / Dual Clutch Transmission eBeam Mid+ Power eDrive Low Power eDrive Low Power Dedicated Hybrid Drive H y bri d Dual - C l utch Transmission 4WD / AWD Mid Power Dedicated Hybrid Drive Powertrai n Portfolio Build i n g Bloc k Approach 22

 

 

Increasing Opportunities for Growth i n Electrifie d Powertrains T raction E - Motor Inverter Gearset s & Diffe r entials S y nchro Shifting S y stems Housing s & Coverings Clutche s & Decoupling Parklock O i l Hydraulics Contro l HW & Actuations Traction E - Motor Inverter L G an d Magna e - Powertrai n J V S W & C ontrol Algorithms • E - moto r an d inverte r building block s strengthe n positio n in eDriv e system s throug h v ertical integration • A llow s u s t o part i c i pat e i n the growin g addressabl e market fo r e - powertrai n components 23

 

 

Read y f o r an Electrifie d Future • > $2 billion in managed sales* expected b y 2023 • W e believ e w e ca n b e > $ 4 billio n in manage d s ales * b y 2027 • S tron g competitiv e positio n regardless o f take - rates * Managed sales = consolidated sales + sales at 100% for unconsolidated entities. 24 Ke y Growth Contributors • eDriv e progra m launche s i n Chin a in HASCO - Magn a J oin t V enture • High - vo lu m e 48 V hybri d DC T prog r ams • Ne w busines s i n primar y an d s econdar y eDrives • E xpec t >50 % s ale s CAG R ove r th e nex t fe w y ears i n L G Join t V enture

 

 

ICE EV Dual Clutch/ Manual Transmission Primary eDrive T ake rate (%) 40% 100% +150% Higher addressable market Increase d vehicle content A verag e CPV ($US) $9 0 0 $1,100 +2 2 % T ake rate (%) 4WD/AWD 20% Secondary eDrive 20% A verag e CPV ($US) Increase d vehicle content $4 0 0 $950 +138% Higher Content Opportunity and Addressable Market for Magna as EV Transition Unfolds 25

 

 

EtelligentEco Connecte d PHE V system • U p t o 38 % e missio n reduct i o n • Uniqu e clou d c onnect i v i t y feature • S mar t cruis e contro l an d ec o routing • Cla ss - leadin g pe rf o r man c e in all - ele c t r i c dr i v ing Ne w Benchmar k fo r E f ficient Plug - in - Hybri d T echnology EtelligentReach Battery - electric drive system • 30 % r ang e extension • Comb i natio n o f Next - Ge n eDrive, softwar e an d contro l s • I mprovemen t i n e f ficienc y an d driving dynamics • F i rs t awa r de d bu s ine s s BE V Driv e Syste m f o r Best - in - Class Rang e an d Dynamics EtelligentForce EV solution for pick - up trucks • Drop - i n r eplacemen t retai n s pick - up truc k capab il i ty • Leverag e existin g a ssemb l y processe s an d instal l e d capital • F irs t significan t c hang e t o soli d beam rea r axl e i n mor e tha n 10 0 years Electrifyin g T r uck s without Compromisin g Utility 26

 

 

Focus of this section EV Po w e rtr a in - Agnostic ICE Power Electronics – EV, HV Hybrid Interior Systems an d Sea t i n g Body Stru c ture ECUs/DCUs Transmission Engine Sy s tems Exhaust Regulation Co m p one n ts Driving Sy s tems (incl. Chassis) El ec t r oni cs – Other Bod y Exterior (incl . Lighting and Mirrors) Complete Vehicle Engineering and Manu fa c tu r in g Thermal M an agement Battery Pack E - Drivetrain Sens o rs (ADAS) 27 Autonomy/ADAS Supporting customers to reach a zero - accident future

 

 

Lane Automatic Emergency Departure Warning Braking Lane K eep Assist Lane C entering C ontrol Surround View Adaptive C ruise C ontrol Rear Automatic Emergency Braking CROSS - SYSTEM FEATURES PREMIUM FEATURES SAFETY FEATURES (NCAP 5 - STAR) MODULAR & SCALABLE BUILDING BLOCKS F a r Fi el d Cameras Digita l I maging RADAR Domain Controllers Soli d State LiDAR Ultrasonic Sensors Soft w ar e & Algorithms P erc eptio n | Fus i o n | Pl an n in g | Con t r o l Connected Driver & Occupant Intelligent Advanced Traffic Advanced Autonomous Autonomous Highway Powertrain Monitoring Lighting Mirror Systems Jam Assist Trailering Emergency Valet Park Pilot Steering Ful l ADA S Systems Build i n g Bloc k Approach Nea r F ield Surroun d View Cameras 28

 

 

Drive r Monitorin g System • Detection of distracted driver behavior, drows i nes s an d fatigue • Custom i zab l e audib l e , v isua l an d hapt i c aler t notifications • Progra m launc h i n 2022 Increasin g In - Cabin Safet y wit h Monitoring Autonomou s V ale t Park • Leve l 4 Autonomou s V ale t f o r indoo r parking • N o requ i remen t fo r GPS , LiDAR , o r any infrastructur e c hanges • D emo n str a t io n o f ful l ADA S syste m capa bi l i t ie s Deliverin g Leve l 4 Premiu m Features 29

 

 

Expec t ADA S Sale s t o Gro w Abov e Market Ke y ADAS Growt h Contributors • A nticipat e 19 - 23 % CAG R 202 0 t o 2023 • W e believ e w e ca n gro w a t 15 - 20% CAG R fro m 202 3 t o 2027 • Ongoin g investments • E xpandin g softwar e engineerin g team • S trategi c partnerships 30

 

 

Innovatio n Acros s th e V ehicle ct Batt er y E nc los u r e s ura l o pp o r t u n itie s e xpa n d wit h e lec t rific a tion Magn a Mezz o P ane l ™ Inte g ra t e d ADA S and lightin g functio n s Adapti v e Be a m Lighting I n c re a se d s a fet y a n d f u nction b y in tegratin g el ectronics Rethinkin g t he po s s i bilitie s using ou r cor e strengths an d systems know - how SmartAccess TM B r i d gin g m e c h a tronic s a nd elec t ro n ic s t o deli v e r f unc t io n a li t y Te c hno l og y e cos y st e m ou t si d e t h e Com pa n y 31

 

 

Batter y Enclosures • C ontr i bute s t o vehic l e structur e an d safety • S teel , aluminum , an d multi - materia l , includ in g composites • B usines s award s fo r G M Humme r E V and For d F - 15 0 EV Structura l Opportunities Expan d wit h Electrification Magn a MezzoPanel™ • Fron t fasci a wit h int egrate d ADA S sensors an d lighting • Large - forma t le n s an d in - mol d f ilm Integrate d ADA S and Lightin g Functions 32

 

 

SmartAccess ™ • Enable s uniqu e acces s experiences • Easil y operate d throug h m ultip l e human - machine in terf a c e so lu t i ons • Enhanced safety through non - contact obstacle detection • F ull y c ustomizable Bridgin g Mechatronic s and Electronic s t o Delive r N e w F unctionality Adaptiv e Bea m Lighting • G lare - fre e hig h beam • V irtua l dynam i c bending • S p eed - d ependen t ligh t ing • P edest r i a n detecti o n Increase d Safet y an d Function b y Integratin g Electronics 33

 

 

T appin g Int o Grea t T hinking Outsid e th e Comp a n y Ope n fo r Busines s Mindset Auto - Qualifie d Results Acces s t o New Creativ e Approaches Innovatio n Ecosystem 34

 

 

Driv e Operational Excellence 35

 

 

Committed to Manufacturing Excellence WCM LEADERSHIP QU AL I TY CAPITAL INFORMATION TECHNOLOGY MAFACT PRODUCT DEVEL O PMENT PROCESS PURCHASING INNOVATION 1 2 3 4 5 6 7 8 9 MATERIAL MANAGEMENT/ LOGISTICS 36 W orl d Clas s Manufacturing

 

 

Next - Ge n W orl d Clas s Manufacturing • B i g dat a an d analytics • A utonomou s robots • Simulation • Horizon t a l an d v er t ica l syste m integra ti on • I ndustria l i nterne t o f things • Cybersecurity • Th e cloud • A dditiv e manufacturing • A ugmente d reality 37 Increased Focus on Smart Factory Enablers

 

 

Smar t Dies • 5 - 10 % uptim e improvement • U p t o 30 % reductio n i n scrap • 30 - 50 % les s hour s i n inspection Real - T im e Analytics fo r Bette r Decisions 38

 

 

Advance d Robotics • Hig h volu m e prod u ction • 2D/3 D v isio n system s an d tra j ec to r y plannin g wit h A I • 50 % reduct i o n i n floo r s pace • 10 - 20 % highe r operat i n g e f fic i ency Automation - Enable d E f ficiency 39

 

 

Fenceles s Robotics • Operato r an d robo t freel y an d s afely collaborate • Double s payloa d a t 1 0 time s th e speed • Reduce d floo r space • I mprove d operato r e rgonomics Huma n an d Roboti c Collaboration 40

 

 

Dat a Analytics Usin g Dat a t o Minimize W ast e an d Reduc e Costs • P ain t c olo r c hang e process optimization • Implemente d i n 2 0 Exteriors manufacturin g facilities • S ignifican t c os t savings 41

 

 

Sustainability Science - Base d Approach Aligne d wit h Objective s of Pari s Climat e Agreement Focuse d o n Energ y Optimiza t ion an d Renewabl e Energy • G oal s fo r car bon - neu tr a li t y – I n Europ e b y 2025 – Globa ll y b y 2030 • Wil l b e a n industr y l eade r i n Nort h America , and aligne d wi t h indus tr y leader s i n Eu r ope Broa d Sustainabilit y Strategy • P roduc t qual i t y • H ealt h an d safet y culture • Divers i t y an d inclus i on • Employee development and training 42

 

 

Unloc k Ne w Business Model s an d Markets 43

 

 

Broa d Range o f Mobility Ecosystem Opportunities 44

 

 

V olum e Extension • Expansion planning in advance • Volume expansion in phases • Flexible supply management approach First - Generatio n Plant Ability to replicate plants to satisfy long - term demand growth Can Scale to Meet Volume Requirements and Optimize Future Expansion Flexibl e Productio n Concept 45

 

 

W ell - Established 2019 2020 Future Eastern Europe Central Europe Asia Nort h America Graz, Austria • Si x SOP s deliver e d i n 2 4 months • B att e r y electric , h y bri d an d I CE vehicle s pro du c e d i n th e same facilit y an d o n sam e p roductio n lines Hoče, Slovenia • State - of - the - ar t pai n t sh o p wit h 10 0 k capacity • P o tentia l t o e x p an d t o o v e r 20 0 k complet e vehicles Zhenjiang, China • C ontr a c t manu fa c t u ri n g joint - ve ntu r e wit h BJE V launc h e d i n 20 2 0 • Battery electric vehicle production P o tentia l t o es tabli s h a sca labl e f oo tp r int Ca n levera g e ou r best pe op l e usin g Magn a ’s Nort h American footprin t jointl y with exp e rt s fro m Graz Abilit y t o Scal e an d Localiz e i n Ke y Markets Globa l Productio n Network 46

 

 

COMPLETE VEHICLE E/E Arch ite c tur e Vehicle Platfor m Vehicle Arch ite c tur e Vehicle Models Body MAJOR SYSTEMS / DOMAINS Bod y & Chassis eDrives Mechatronics Mirrors Seats Lighting Exteriors ADAS Sensors ADAS Po w ertra i n Chassis HM I & Infotainment Product Specification PRODUCT SYSTEMS Definition o f Complete Vehicl e Targets Complete Vehicle Integration Comple t e Vehicle Testin g & Validation Vehicle Production Globally Proven Processes Manufacturing Engineering Complete Vehicle Dev elopment System Testin g & Validation System Specification System Integrati o n Testin g & Validation Product Manufacturi n g Manufacturi n g Engineering Complet e V ehicles Buildin g Bloc k Approach PRODUCT 47 PROCESS

 

 

Complete Vehicle Complete Vehicle E V an d E/E Broad System Ful l ADA S System Engineering Manufacturing Architectures Portfolio and Software Platform Ful l V ehicl e an d Syste m Capabilities 48 Uniquely Positioned to be a Strategic Partner

 

 

O n th e Winning Sid e o f Change 49

 

 

1 Maintain Strong Balance Sheet 2 Invest for Growth • Organic and inorganic opportunities • Innovation 3 Return Capital to Shareholders • Continued dividend growth over time • Repurchase shares with excess liquidity Capita l Allocatio n Principles • Preserve liquidity and high investment grade credit ratings — Adj. debt / Adj. EBITDA ratio between 1.0 - 1.5x • Maintain flexibility to invest for growth 50

 

 

• A verag e weighte d sale s growt h ove r marke t 1 o f 7% • $5. 8 billio n i n fre e cas h flo w 2 generation • Investe d $5. 9 billio n i n ou r business • Retur n o f capita l t o shareholder s o f $4. 7 billion Financia l Highlights – Pas t Thre e Y ears T ota l Shareholde r Retur n o f + 36 % v ersu s - 4 % Pee r A verage 3 1 Weighted Growth Over Market compares organic sales growth (%) to vehicle production change (%) after applying Magna geographic sales weighting, excluding Complete Vehicles, to regional production. 2 Free Cash Flow is Cash from Operating Activities plus proceeds from normal course dispositions of fixed and other assets minus capital spending minus investment in other assets. 3 Peer Average for the three years includes Adient, American Axle, Aptiv, Autoliv, BorgWarner, Dana, Gentex, Lear, Linamar, Martinrea and Visteon. 51

 

 

• Continue d weighte d sale s growt h ove r marke t 1 • Stron g growt h i n unconsolidate d sales • Expandin g Adjuste d EBI T Margi n 2 t o 8%+ • Fre e cas h flow 3 generatio n betwee n $5. 5 - $6. 0 billion Financia l Outlook – T o 2023 Solid Outlook Supports Growth Investments and Return of Capital 1 Weighted Growth Over Market compares organic sales growth (%) to vehicle production change (%) after applying Magna geographic sales weighting, excluding Complete Vehicles, to regional production. 2 Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales; Adjusted EBIT excludes other expense (income), net. 3 Free Cash Flow is Cash from Operating Activities plus proceeds from normal course dispositions of fixed and other assets minus capital spending minus investment in other assets. 52

 

 

Summary 53

 

 

Our Strategy Our Future Sales ($B) 2020 2023 Future 43 . 0 – 45 . 5 32 . 6 Continued growt h over market Adjusted EBIT Margin 1 (%) 5.1 8. 1 – 8.6 Margin expans io n Adjusted ROIC 2 (%) Stron g return o n capital 7.9 Business Mix Impac t o f megatrends: Positiv e impact Aligned Negativ e impact Evolution o f portfol i o Disciplined Profitable Growth to Generate Sustainable Shareholder Value 1 Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales; Adjusted EBIT excludes other expense (income), net. 2 Adjusted Return on Invested Capital (Adjusted ROIC) is calculated as Adjusted After - tax operating profits divided by Average Invested Capital for the period. See Magna’s 2020 Annual Report for detailed calculation. 54 3. Unloc k ne w business model s an d markets 2. Driv e operational excellence 1. Accelerat e deploymen t of capita l toward s high - growth areas

 

 

• Poised for market shifts • Supplier of choice for automakers and enabler for new entrants • Financial stability to fund the future Untapped Potential to Generate Profits and Grow Shareholder Value 55

 

 

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