EX-99.1 2 exh_991.htm EXHIBIT 99.1

Exhibit 99.1

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.
(United States dollars in millions, except per share figures) (Unaudited)
Prepared in accordance with U.S. GAAP
							2019						2020						2021
					Note		1st Q	2nd Q	3rd Q	4th Q	TOTAL		1st Q	2nd Q	3rd Q	4th Q	TOTAL		1st Q	2nd Q	TOTAL
VEHICLE VOLUME STATISTICS (in millions)
North American vehicle volumes (including Mexico)							4.227	4.249	3.909	3.912	16.297		3.777	1.240	3.946	4.040	13.003		3.761	3.288	7.049
European vehicle volumes:
	Western Europe						3.720	3.614	2.999	3.285	13.618		2.906	1.171	2.614	3.408	10.099		3.051	2.615	5.666
	Eastern Europe						2.013	2.063	1.672	1.987	7.735		1.794	0.913	1.663	1.990	6.360		1.880	1.764	3.644
		Total Europe					5.733	5.677	4.671	5.272	21.353		4.700	2.084	4.277	5.398	16.459		4.931	4.379	9.310
Asia volumes							11.872	11.149	10.946	13.061	47.028		8.148	8.503	10.930	13.743	41.324		11.364	10.646	22.010
China volumes							6.024	5.484	5.629	7.419	24.556		3.235	5.844	6.280	8.154	23.513		6.071	6.001	12.072
Magna Steyr vehicle assembly volumes							0.046	0.043	0.035	0.034	0.158		0.031	0.017	0.027	0.035	0.110		0.040	0.030	0.070
AVERAGE FOREIGN EXCHANGE RATES
1 Canadian dollar equals U.S. dollars							0.752	0.748	0.757	0.758	0.754		0.745	0.722	0.751	0.767	0.746		0.790	0.814	0.802
1 Euro equals U.S. dollars							1.135	1.124	1.112	1.107	1.119		1.102	1.101	1.170	1.192	1.141		1.205	1.206	1.206
1 Chinese renminbi equals U.S. dollars							0.148	0.147	0.142	0.142	0.145		0.143	0.141	0.145	0.151	0.145		0.154	0.155	0.155
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
Sales							10,591	10,126	9,319	9,395	39,431		8,657	4,293	9,129	10,568	32,647		10,179	9,034	19,213
Costs and expenses:
	Cost of goods sold						9,164	8,710	8,063	8,085	34,022		7,567	4,206	7,681	8,753	28,207		8,662	7,728	16,390
	Selling, general and administrative						421	453	400	423	1,697		381	378	380	448	1,587		430	419	849
	Equity income						(35)	(48)	(37)	(58)	(178)		(30)	(25)	(44)	(90)	(189)		(47)	(44)	(91)
	EBITDA				1		1,041	1,011	893	945	3,890		739	(266)	1,112	1,457	3,042		1,134	931	2,065
	Depreciation and amortization						321	334	335	355	1,345		336	334	334	362	1,366		364	374	738
	EBIT				2		720	677	558	590	2,545		403	(600)	778	1,095	1,676		770	557	1,327
	Interest expense, net						31	14	18	19	82		17	21	26	22	86		23	11	34
Operating income (loss)					1		689	663	540	571	2,463		386	(621)	752	1,073	1,590		747	546	1,293
Other expense (income), net					1		(679)	68	859	(8)	240		-	168	316	100	584		(58)	6	(52)
Income (loss) from operations before income taxes							1,368	595	(319)	579	2,223		386	(789)	436	973	1,006		805	540	1,345
Income tax expense (benefit)							267	145	45	134	591		134	(137)	109	223	329		183	104	287
Net income (loss)							1,101	450	(364)	445	1,632		252	(652)	327	750	677		622	436	1,058
(Income) loss attributable to non-controlling interests					1		5	2	131	(5)	133		9	5	78	(12)	80		(7)	(12)	(19)
Net income (loss) attributable to Magna International Inc.							1,106	452	(233)	440	1,765		261	(647)	405	738	757		615	424	1,039
Adjusted net income (loss) attributable to Magna International Inc.					1		531	509	438	433	1,911		261	(511)	585	851	1,186		566	426	992
Diluted earnings (loss) per share:
	Diluted						$      3.39	$      1.42	$     (0.75)	$      1.43	$      5.59		$      0.86	$     (2.17)	$      1.35	$      2.45	$      2.52		$      2.03	$      1.40	$      3.42
	Adjusted Diluted						$      1.63	$      1.59	$      1.41	$      1.41	$      6.05		$      0.86	$     (1.71)	$      1.95	$      2.83	$      3.95		$      1.86	$      1.40	$      3.27
Weighted average number of Common Shares outstanding
	during the year (in millions):						326.3	319.5	310.7	306.3	315.8		302.7	298.4	299.4	300.9	300.4		303.6	303.6	303.6
PROFITABILITY RATIOS
	Selling, general and administrative /Sales						4.0%	4.5%	4.3%	4.5%	4.3%		4.4%	8.8%	4.2%	4.2%	4.9%		4.2%	4.6%	4.4%
	EBITDA /Sales						9.8%	10.0%	9.6%	10.1%	9.9%		8.5%	-6.2%	12.2%	13.8%	9.3%		11.1%	10.3%	10.7%
	EBIT /Sales						6.8%	6.7%	6.0%	6.3%	6.5%		4.7%	-14.0%	8.5%	10.4%	5.1%		7.6%	6.2%	6.9%
	Operating income(loss) /Sales						6.5%	6.5%	5.8%	6.1%	6.2%		4.5%	-14.5%	8.2%	10.2%	4.9%		7.3%	6.0%	6.7%
	Effective tax rate
		Reported					19.5%	24.4%	-14.1%	23.1%	26.6%		34.7%	17.4%	25.0%	22.9%	32.7%		22.7%	19.3%	21.3%
		Excluding Other expense (income), net of taxes					23.7%	23.5%	19.6%	23.3%	22.7%		34.7%	16.9%	22.6%	19.6%	25.7%		23.3%	19.8%	21.8%

Q2 2021 Financial Review of Magna International Inc. Page 1 of 6

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
(United States dollars in millions) (Unaudited)
							2019						2020						2021
							1st Q	2nd Q	3rd Q	4th Q			1st Q	2nd Q	3rd Q	4th Q			1st Q	2nd Q
FUNDS EMPLOYED							[Note 1]
Current assets:
	Accounts receivable						7,446	7,204	7,068	5,927			5,684	5,253	6,618	6,394			7,176	6,531
	Inventories						3,501	3,521	3,457	3,304			3,531	3,503	3,509	3,444			3,645	3,999
	Prepaid expenses and other						222	244	189	238			234	216	196	260			290	294
							11,169	10,969	10,714	9,469			9,449	8,972	10,323	10,098			11,111	10,824
Current liabilities:
	Accounts payable						6,484	6,272	5,966	5,628			5,635	4,243	5,808	6,266			6,787	6,248
	Accrued salaries and wages						860	757	797	753			807	691	851	815			897	912
	Other accrued liabilities						2,003	2,019	1,994	1,800			1,921	2,058	2,246	2,254			2,298	2,186
	Income taxes payable (receivable)						(53)	(34)	(22)	17			18	(87)	(69)	38			109	123
							9,294	9,014	8,735	8,198			8,381	6,905	8,836	9,373			10,091	9,469
Working capital							1,875	1,955	1,979	1,271			1,068	2,067	1,487	725			1,020	1,355
Investments							2,408	2,334	1,430	1,210			1,336	1,336	1,143	947			960	1,124
Fixed assets, net							7,958	8,109	7,943	8,260			7,948	7,860	7,898	8,475			8,305	8,297
Goodwill, other assets and intangible assets							3,487	3,593	3,461	3,456			3,340	3,362	3,423	3,539			3,614	3,632
Operating lease right-of-use assets							1,716	1,744	1,702	1,811			1,788	1,777	1,787	1,906			1,869	1,854
Funds employed							17,444	17,735	16,515	16,008			15,480	16,402	15,738	15,592			15,768	16,262
FINANCING
Straight debt:
	Cash and cash equivalents						(925)	(563)	(769)	(1,276)			(1,146)	(533)	(1,498)	(3,268)			(3,464)	(3,426)
	Short-term borrowings						335	199	436	-			-	188	-	-			-	-
	Long-term debt due within one year						122	112	104	106			93	150	98	129			137	117
	Long-term debt						3,062	3,071	3,021	3,062			3,021	3,771	3,832	3,973			3,935	3,941
	Current portion of operating lease liabilities						176	214	218	225			218	221	226	241			244	278
	Operating lease liabilities						1,566	1,544	1,527	1,601			1,586	1,577	1,582	1,656			1,613	1,563
							4,336	4,577	4,537	3,718			3,772	5,374	4,240	2,731			2,465	2,473
Long-term employee benefit liabilities							598	606	584	677			659	675	696	729			733	743
Other long-term liabilities							396	404	388	371			420	390	305	332			414	482
Deferred tax liabilities, net							167	196	133	111			87	10	87	80			104	124
							1,161	1,206	1,105	1,159			1,166	1,075	1,088	1,141			1,251	1,349
Shareholders' equity							11,947	11,952	10,873	11,131			10,542	9,953	10,410	11,720			12,052	12,440
							17,444	17,735	16,515	16,008			15,480	16,402	15,738	15,592			15,768	16,262
ASSET UTILIZATION RATIOS
	Days in accounts receivable						63.3	64.0	68.3	56.8			59.1	110.1	65.2	54.5			63.4	65.1
	Days in accounts payable						63.7	64.8	66.6	62.6			67.0	90.8	68.1	64.4			70.5	72.8
	Inventory turnover - cost of sales						10.5	9.9	9.3	9.8			8.6	4.8	8.8	10.2			9.5	7.7
	Working capital turnover						22.6	20.7	18.8	29.6			32.4	8.3	24.6	58.3			39.9	26.7
	Total asset turnover						2.4	2.3	2.3	2.3			2.2	1.0	2.3	2.7			2.6	2.2
CAPITAL STRUCTURE
	Straight debt						24.9%	25.8%	27.5%	23.2%			24.4%	32.8%	26.9%	17.5%			15.6%	15.2%
	Long-term employee benefit liabilities, other long-term
		liabilities & deferred tax liabilities, net					6.6%	6.8%	6.7%	7.2%			7.5%	6.6%	6.9%	7.3%			7.9%	8.3%
	Shareholders' equity						68.5%	67.4%	65.8%	69.5%			68.1%	60.7%	66.1%	75.2%			76.4%	76.5%
							100.0%	100.0%	100.0%	100.0%			100.1%	100.0%	100.0%	100.0%			100.0%	100.0%
	Debt to total capitalization						30.6%	30.1%	32.8%	31.0%			31.8%	37.2%	35.5%	33.9%			33.0%	32.2%
ANNUALIZED RETURNS
	Return on assets (EBIT/assets employed)						16.5%	15.3%	13.5%	14.7%			10.4%	-14.6%	19.8%	28.1%			19.5%	13.7%
	Return on equity (Net income attributable to Magna
		International Inc. / Average shareholders' equity)					38.3%	15.1%	-8.2%	16.0%			9.6%	-25.3%	15.9%	26.7%			20.7%	13.8%
	Adjusted Return on equity (Adjusted Net income attributable
		to Magna International Inc. / Average shareholders' equity)					18.4%	17.0%	15.4%	15.7%			9.6%	-19.9%	23.0%	30.8%			19.0%	13.9%

Q2 2021 Financial Review of Magna International Inc. Page 2 of 6

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(United States dollars in millions) (Unaudited)
							2019						2020						2021
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	TOTAL
Operating activities
	Net income (loss)						1,101	450	(364)	445	1,632		252	(652)	327	750	677		622	436	1,058
	Items not involving current cash flows				(i)		(235)	431	1,188	486	1,870		344	335	749	548	1,976		349	341	690
					(i)		866	881	824	931	3,502		596	(317)	1,076	1,298	2,653		971	777	1,748
	Changes in operating assets and liabilities				(i)		(272)	39	(74)	765	458		43	(915)	536	961	625		(310)	(249)	(559)
Cash provided from (used for) operating activities							594	920	750	1,696	3,960		639	(1,232)	1,612	2,259	3,278		661	528	1,189
Investment activities
	Fixed asset additions						(251)	(328)	(349)	(513)	(1,441)		(203)	(169)	(213)	(560)	(1,145)		(212)	(277)	(489)
	Increase in investments, other assets and intangible assets						(77)	(102)	(83)	(122)	(384)		(93)	(72)	(68)	(98)	(331)		(104)	(93)	(197)
	Increase in public and private equity investments						(5)	(5)	-	-	(10)		(100)	(2)	(12)	(18)	(132)		(3)	(17)	(20)
	Proceeds from disposition						86	26	57	16	185		23	11	14	69	117		19	20	39
	Settlement of long-term receivable from non-consolidated joint venture						-	-	-	-	-		-	-	-	-	-		50	-	50
	Proceeds from sale of (Investment in) Lyft, Inc.						-	-	10	221	231		-	-	-	-	-		-	-	-
	Business combinations						-	(152)	-	5	(147)		(7)	-	-	98	91		39	(21)	18
	Sale of Fluid Pressure & Controls Business ["FP&C"]						1,129	-	3	-	1,132		-	-	-	-	-		-	-	-
Cash (used for) provided from investment activities							882	(561)	(362)	(393)	(434)		(380)	(232)	(279)	(509)	(1,400)		(211)	(388)	(599)
Financing activities
	Net issues (repayments) of debt						(855)	(187)	251	(435)	(1,226)		(6)	962	(246)	(27)	683		(126)	(33)	(159)
	Common Shares issued on exercise of stock options						8	6	19	11	44		1	1	15	64	81		83	50	133
	Repurchase of Common Shares						(284)	(409)	(342)	(254)	(1,289)		(201)	-	(2)	-	(203)		(162)	(99)	(261)
	Tax withholdings on vesting of equity awards						(3)	(2)	-	(4)	(9)		(10)	-	-	(3)	(13)		(12)	-	(12)
	Contributions to subsidiaries by non-controlling interests						2	-	2	-	4		-	-	-	18	18		-	-	-
	Dividends paid to non-controlling interests						-	(13)	-	(9)	(22)		(3)	(3)	-	(12)	(18)		-	(8)	(8)
	Dividends paid						(119)	(110)	(109)	(111)	(449)		(121)	(116)	(115)	(115)	(467)		(130)	(127)	(257)
Cash provided from (used for) financing activities							(1,251)	(715)	(179)	(802)	(2,947)		(340)	844	(348)	(75)	81		(347)	(217)	(564)
Effect of exchange rate changes on cash, cash equivalents
	and restricted cash equivalents						14	(4)	(9)	10	11		(52)	9	(15)	81	23		(13)	39	26
Net increase (decrease) in cash, cash equivalents
	and restricted cash equivalents during the period						239	(360)	200	511	590		(133)	(611)	970	1,756	1,982		90	(38)	52
Cash, cash equivalents and restricted cash equivalents,
	beginning of period				3		802	1,041	681	881	802		1,392	1,259	648	1,618	1,392		3,374	3,464	3,374
Cash, cash equivalents and restricted cash equivalents,
	end of period						1,041	681	881	1,392	1,392		1,259	648	1,618	3,374	3,374		3,464	3,426	3,426
		(i) Certain amounts in prior periods have been reclassified to conform with current period presentation.

Q2 2021 Financial Review of Magna International Inc. 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:		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:
							2019						2020						2021
							1st Q	2nd Q	3rd Q	4th Q	TOTAL		1st Q	2nd Q	3rd Q	4th Q	TOTAL		1st Q	2nd Q	TOTAL
		Impairments and loss on sale of equity-accounted investments			[a]		-	-	700	-	700		-	-	337	10	347		-	-	-
		Restructuring and impairments			[b]		14	7	34	3	58		-	168	-	101	269		15	44	59
		Net (gains) losses on investments			[c]		(177)	67	127	(11)	6		-	-	(21)	(11)	(32)		(33)	(38)	(71)
		Gain on business combinations			[d]		-	-	-	-	-		-	-	-	-	-		(40)	-	(40)
		Gain on the sale of business			[e]		(516)	(6)	(2)	-	(524)		-	-	-	-	-		-	-	-
							(679)	68	859	(8)	240		-	168	316	100	584		(58)	6	(52)
	[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 quarters of 2020 and 2019, the Company recorded impairment charges of $337 million and $700 million, respectively on equity accounted investments.
	[b]	Restructuring and impairments
		COVID-19 Restructuring and Impairments:
		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 included plant closures and workforce reductions. As a result, in the second quarter of 2020, the Company recorded COVID-19 related restructuring and impairment charges of $115 million in Power & Vision, $37 million in Body Exteriors & Structures, and $16 million in Seating, respectively.
		Brazil Closures:
		In the fourth quarter of 2020, in connection with the announced plant closures by Ford Motor Co. in Brazil, the Company made the decision to accelerate the closure and/or restructuring of two facilities in Brazil that supply these plants by recording resturcturing and impairments in the amount of $8 million in Body Exteriors & Structures, and $15 million in Seating, respectively.
		Impairments:
		The Company recorded impairments in the second quarter of 2019 in the amount of $27 million in Power & Vision as well in the fourth quarter of 2020 in the amount of $57 million in Body Exteriors & Structures.
		Restructuring:					2019						2020						2021
							1st Q	2nd Q	3rd Q	4th Q	TOTAL		1st Q	2nd Q	3rd Q	4th Q	TOTAL		1st Q	2nd Q	TOTAL
		Power & Vision					-	-	-	-	-		-	-	-	-	-		15	44	59
		Body Exteriors & Structures					14	7	7	3	31		-	-	-	21	21		-	-	-
							14	7	7	3	31		-	-	-	21	21		15	44	59

Q2 2021 Financial Review of Magna International Inc. Page 4 of 6

	[c]	Net (gains) losses on investments
		In Corporate, during the first and second quarters of 2021, the Company recorded gains related to the revaluation of its public and private equity investments and certain public company warrants. In Corporate, during the third and fourth quarters of 2020, the Company recorded gains related to the revaluation of its private equity investments. In addition, 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 and losses related substantially to the revaluation of its investment in Lyft, Inc.
	[d]	Gain on business combinations
		In Seating Systems, during the first quarter of 2021, the Company recognized a $22 million gain on the on the change in basis of accounting for its previously held equity method investments. In Power & Vision, substantially all of the assets of the Company's European joint venture with Ford Motor Company, Getrag Ford Transmission GmbH, were distributed to either Ford or the Company, which resulted in the Company recording a gain of $18 million.
	[e]	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 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.:
							2019						2020						2021
							1st Q	2nd Q	3rd Q	4th Q	TOTAL		1st Q	2nd Q	3rd Q	4th Q	TOTAL		1st Q	2nd Q	TOTAL
		Net income (loss) attributable to Magna International Inc.					1,106	452	(233)	440	1,765		261	(647)	405	738	757		615	424	1,039
			Exclude:
				Impairments and loss on sale of equity-accounted investments	[i]		-	-	537	-	537		-	-	200	19	219		-	-	-
				Restructuring and impairments			14	7	27	3	51		-	136	-	101	237		15	31	46
				Net (gains) losses on investments			(151)	57	109	(10)	5		-	-	(20)	(7)	(27)		(24)	(29)	(53)
				Gain on business combinations			-	-	-	-	-		-	-	-	-	-		(40)	-	(40)
				Gain on the sale of business			(438)	(7)	(2)	-	(447)		-	-	-	-	-		-	-	-
																			-		-
		Adjusted net income (loss) attributable to Magna International Inc.					531	509	438	433	1,911		261	(511)	585	851	1,186		566	426	992
		Diluted earnings (loss) per share					$      3.39	$      1.42	$     (0.75)	$      1.43	$      5.59		$      0.86	$     (2.17)	$      1.35	$      2.45	$      2.52		$      2.03	1.40	$      3.42
			Exclude:
				Impairments and loss on sale of equity-accounted investments	[i]		-	-	1.74	-	1.70		-	-	0.67	0.06	0.73		-	-	-
				Restructuring and impairments			0.04	0.02	0.08	0.01	0.16		-	0.46	-	0.34	0.79		0.05	0.10	0.15
				Net (gains) losses on investments			(0.46)	0.17	0.35	(0.03)	0.02		-	-	(0.07)	(0.02)	(0.09)		(0.08)	(0.10)	(0.17)
				Gain on business combinations			-	-	-	-	-		-	-	-	-	-		(0.14)	-	(0.13)
				Gain on the sale of business			(1.34)	(0.02)	(0.01)	-	(1.42)		-	-	-	-	-		-	-	-
		Adjusted diluted earnings (loss) per share					$      1.63	$      1.59	$      1.41	$      1.41	$      6.05		$      0.86	$     (1.71)	$      1.95	$      2.83	$      3.95		$      1.86	$      1.40	$      3.27
		[i] 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.

Q2 2021 Financial Review of Magna International Inc. Page 5 of 6

Note 2:		SEGMENTED INFORMATION
							2019						2020						2021
							1st Q	2nd Q	3rd Q	4th Q	TOTAL		1st Q	2nd Q	3rd Q	4th Q	TOTAL		1st Q	2nd Q	TOTAL
		Body Exteriors & Structures
			Sales				4,308	4,243	3,984	3,923	16,458		3,676	1,623	3,858	4,393	13,550		4,025	3,647	7,672
			Adjusted EBIT				363	341	306	289	1,299		199	(315)	390	543	817		327	227	554
			Adjusted EBIT as a percentage of sales				8.4%	8.0%	7.7%	7.4%	7.9%		5.4%	-19.4%	10.1%	12.4%	6.0%		8.1%	6.2%	7.2%
		Power & Vision
			Sales				3,083	2,808	2,696	2,725	11,312		2,523	1,298	2,722	3,179	9,722		3,156	2,881	6,037
			Adjusted EBIT				216	201	167	163	747		135	(226)	227	359	495		297	203	500
			Adjusted EBIT as a percentage of sales				7.0%	7.2%	6.2%	6.0%	6.6%		5.4%	-17.4%	8.3%	11.3%	5.1%		9.4%	7.0%	8.3%
		Seating Systems
			Sales				1,433	1,452	1,266	1,426	5,577		1,261	524	1,280	1,390	4,455		1,303	1,166	2,469
			Adjusted EBIT				94	83	56	79	312		40	(84)	66	85	107		55	26	81
			Adjusted EBIT as a percentage of sales				6.6%	5.7%	4.4%	5.5%	5.6%		3.2%	-16.0%	5.2%	6.1%	2.4%		4.2%	2.2%	3.3%
		Complete Vehicles
			Sales				1,928	1,802	1,516	1,461	6,707		1,321	933	1,402	1,759	5,415		1,850	1,490	3,340
			Adjusted EBIT				28	43	29	44	144		50	44	70	110	274		80	79	159
			Adjusted EBIT as a percentage of sales				1.5%	2.4%	1.9%	3.0%	2.1%		3.8%	4.7%	5.0%	6.3%	5.1%		4.3%	5.3%	4.8%
		Corporate and other
			Intercompany fees				(161)	(179)	(143)	(140)	(623)		(124)	(85)	(133)	(153)	(495)		(155)	(150)	(305)
			Adjusted EBIT				19	9	0	15	43		(21)	(19)	25	(2)	(17)		11	22	33
		Total
			Sales				10,591	10,126	9,319	9,395	39,431		8,657	4,293	9,129	10,568	32,647		10,179	9,034	19,213
			Adjusted EBIT				720	677	558	590	2,545		403	(600)	778	1,095	1,676		770	557	1,327
			Adjusted EBIT as a percentage of sales				6.8%	6.7%	6.0%	6.3%	6.5%		4.7%	-14.0%	8.5%	10.4%	5.1%		7.6%	6.2%	6.9%
Note 3:		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:
							2019						2020						2021
							1st Q	2nd Q	3rd Q	4th Q			1st Q	2nd Q	3rd Q	4th Q			1st Q	2nd Q
		Cash and cash equivalents					(925)	(563)	(769)	(1,276)			(1,146)	(533)	(1,498)	(3,268)			(3,464)	(3,426)
		Restricted cash equivalents included in prepaid expenses					(116)	(118)	(112)	(116)			(113)	(115)	(120)	(106)			-	-
		Total cash, cash equivalents and restricted cash equivalents					(1,041)	(681)	(881)	(1,392)			(1,259)	(648)	(1,618)	(3,374)			(3,464)	(3,426)

Q2 2021 Financial Review of Magna International Inc. Page 6 of 6