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
                                             
              2020   2021   2022
          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 TOTAL
VEHICLE VOLUME STATISTICS (in millions)                    
North American vehicle volumes (including Mexico)     3.777 1.240 3.945 4.039 13.001   3.752 3.213 2.921 3.247 13.133   3.641 3.567 3.635 10.843
European vehicle volumes:                                    
  Western Europe       2.905 1.171 2.613 3.407 10.096   3.046 2.444 1.785 2.393 9.668   2.495 2.592 2.417 7.504
  Eastern Europe       1.804 0.927 1.676 2.007 6.414   1.870 1.671 1.212 1.650 6.403   1.522 1.408 1.335 4.265
    Total Europe     4.709 2.098 4.289 5.414 16.510   4.916 4.115 2.997 4.043 16.071   4.017 4.000 3.752 11.769
                                             
Asia volumes         8.243 8.388 10.821 13.726 41.178   11.557 10.404 9.697 12.281 43.939   11.527 10.488 11.925 33.940
                                             
China volumes         3.218 5.831 6.252 8.089 23.390   6.040 5.710 5.464 7.396 24.610   6.380 5.622 6.949 18.951
                                             
Magna Steyr vehicle assembly volumes     0.031 0.017 0.027 0.035 0.110   0.040 0.030 0.023 0.033 0.126   0.025 0.031 0.025 0.081
                                             
AVERAGE FOREIGN EXCHANGE RATES                                    
1 Canadian dollar equals U.S. dollars     0.745 0.722 0.751 0.767 0.746   0.790 0.814 0.794 0.794 0.798   0.790 0.783 0.765 0.779
1 Euro equals U.S. dollars     1.102 1.101 1.170 1.192 1.141   1.205 1.206 1.178 1.144 1.183   1.123 1.064 1.006 1.064
1 Chinese renminbi equals U.S. dollars     0.143 0.141 0.145 0.151 0.145   0.154 0.155 0.155 0.156 0.155   0.158 0.151 0.146 0.152
                                             
CONSOLIDATED STATEMENTS OF INCOME (LOSS)                                    
Sales:                                          
    Body Exteriors & Structures      3,676        1,623        3,858        4,393 13,550   4,025        3,647        3,185        3,620 14,477   4,077        3,947        3,976 12,000
    Power & Vision     2,523        1,298        2,722        3,179 9,722   3,156        2,881        2,501        2,804 11,342   3,046        2,888        2,911 8,845
    Seating Systems     1,261 524 1,280 1,390 4,455   1,303 1,166 1,123 1,299 4,891   1,376 1,253 1,295 3,924
    Complete Vehicles     1,321 933 1,402 1,759 5,415   1,850 1,490 1,255 1,511 6,106   1,275 1,403 1,213 3,891
    Corporate & Other     (124) (85) (133) (153) (495)   (155) (150) (145) (124) (574)   (132) (129) (127) (388)
Sales           8,657        4,293        9,129      10,568 32,647   10,179        9,034        7,919        9,110 36,242   9,642        9,362        9,268 28,272
                                             
Costs and expenses:                                    
  Cost of goods sold     7,567        4,206        7,681        8,753 28,207   8,662        7,728        6,885        7,822 31,097   8,400        8,259        8,126 24,785
  Selling, general and administrative      381           378           380           448 1,587   430           419           454           414 1,717   386           410           387 1,183
  Equity income     (30)            (25)            (44)            (90) (189)   (47)            (44)            (34)            (23) (148)   (20)            (25)            (27) (72)
  EBITDA     1   739          (266)        1,112        1,457 3,042   1,134           931           614           897 3,576   876           718           782 2,376
  Depreciation and amortization     336           334           334           362 1,366   364           374           385           389 1,512   369           360           341 1,070
  EBIT     2   403          (600)           778        1,095 1,676   770           557           229           508 2,064   507           358           441 1,306
  Interest expense, net     17             21             26             22 86   23             11             22             22 78   26             20             18 64
                                             
Operating income (loss) 1   386 (621) 752 1,073 1,590   747 546 207 486 1,986   481 338 423 1,242
  Impairment charges     - - 337 - 337   - - - - -   - 376 - 376
  Other expense (income)     - 168 (21) 100 247   (58) 6 180 (90) 38   61 50 23 134
Other expense (income), net 1   - 168 316 100 584   (58) 6 180 (90) 38   61 426 23 510
Income (loss) from operations before income taxes               386          (789)           436           973        1,006             805           540             27           576        1,948             420            (88)           400           732
Income tax expense (benefit)     134          (137)           109           223 329   183           104             10             98 395   41             57           104 202
                                             
Net income (loss)     252          (652)           327           750 677   622           436             17           478 1,553   379          (145)           296 530
(Income) loss attributable to non-controlling interests 1   9               5             78            (12) 80   (7)            (12)              (6)            (14) (39)   (15)            (11)              (7) (33)
Net income (loss) attributable to Magna International Inc.     261 (647) 405 738 757   615 424 11 464 1,514   364 (156) 289 497
                                             
                                             
Adjusted net income (loss) attributable to Magna International Inc. 1   261 (511) 585 851 1,186   566 426 170 391 1,553   383 243 308 934
                                             
Diluted earnings (loss) per share:                                    
  Diluted          $      0.86  $     (2.17)  $      1.35  $      2.45  $      2.52    $      2.03  $      1.40  $      0.04  $      1.54  $      5.00    $      1.22 $    (0.54)  $      1.00  $      1.70
  Adjusted Diluted      $      0.86  $     (1.71)  $      1.95  $      2.83  $      3.95    $      1.86  $      1.40  $      0.56  $      1.30  $      5.13    $      1.28 $      0.83   $      1.07  $      3.19
                                             
                                             
Weighted average number of Common Shares outstanding                                     
  during the year (in millions):     302.7 298.4 299.4 300.9 300.4   303.6 303.6 302.6 301.5 302.8   298.1 291.1 288.5 292.8
                                             
PROFITABILITY RATIOS                                    
  Cost of goods sold / Total sales     87.4% 98.0% 84.1% 82.8% 86.4%   85.1% 85.5% 86.9% 85.9% 85.8%   87.1% 88.2% 87.7% 87.7%
  Gross margin (before depreciation) / Total sales     12.6% 2.0% 15.9% 17.2% 13.6%   14.9% 14.5% 13.1% 14.1% 14.2%   12.9% 11.8% 12.3% 12.3%
  Selling, general and administrative /Sales     4.4% 8.8% 4.2% 4.2% 4.9%   4.2% 4.6% 5.7% 4.5% 4.7%   4.0% 4.4% 4.2% 4.2%
  EBITDA /Sales     8.5% -6.2% 12.2% 13.8% 9.3%   11.1% 10.3% 7.8% 9.8% 9.9%   9.1% 7.7% 8.4% 8.4%
  EBIT /Sales     4.7% -14.0% 8.5% 10.4% 5.1%   7.6% 6.2% 2.9% 5.6% 5.7%   5.3% 3.8% 4.8% 4.6%
  Operating income(loss) /Sales     4.5% -14.5% 8.2% 10.2% 4.9%   7.3% 6.0% 2.6% 5.3% 5.5%   5.0% 3.6% 4.6% 4.4%
  Effective tax rate                                    
    Reported       34.7% 17.4% 25.0% 22.9% 32.7%   22.7% 19.3% 37.0% 17.0% 20.3%   9.8% -64.8% 26.0% 27.6%
    Excluding Other expense (income), net of taxes     34.7% 16.9% 22.6% 19.6% 25.7%   23.3% 19.8% 15.0% 16.7% 19.8%   17.3% 24.9% 25.5% 22.1%

 

 Page 1 of 6 

 

 

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
(United States dollars in millions) (Unaudited)
                                           
              2020     2021     2022
              1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q
FUNDS EMPLOYED                                  
Current assets:                                  
  Accounts receivable     5,684        5,253        6,618        6,394     7,176        6,531        6,082        6,307     7,006        6,764        7,082
  Inventories         3,531        3,503        3,509        3,444     3,645        3,999        4,150        3,969     4,258        4,064        4,108
  Prepaid expenses and other     234           216           196           260     290           294           247           278     310           262           269
                     9,449        8,972      10,323      10,098          11,111      10,824      10,479      10,554          11,574      11,090      11,459
Current liabilities:                                  
  Accounts payable     5,635        4,243        5,808        6,266     6,787        6,248        5,914        6,465     6,845        6,443        6,624
  Accrued salaries and wages     807           691           851           815     897           912           893           851     879           766           810
  Other accrued liabilities     1,921        2,058        2,246        2,254     2,298        2,186        2,070        2,156     2,123        2,096        1,986
  Income taxes payable (receivable)     18            (87)            (69)             38     109           123           125           200     190           136             97
              8,381        6,905        8,836        9,373     10,091        9,469        9,002        9,672     10,037        9,441        9,517
                                           
Working capital      1,068        2,067        1,487           725     1,020        1,355        1,477           882     1,537        1,649        1,942
                                           
Investments                1,336        1,336        1,143           947               960        1,124        1,455        1,593            1,487        1,375        1,323
Fixed assets, net              7,948        7,860        7,898        8,475            8,305        8,297        8,166        8,293            8,090        7,723        7,470
Goodwill, other assets and intangible assets     3,340        3,362        3,423        3,539     3,614        3,632        3,530        3,577     3,544        3,353        3,280
Operating lease right-of-use assets            1,788        1,777        1,787        1,906            1,869        1,854        1,731        1,700            1,667        1,587        1,545
Funds employed          15,480      16,402      15,738      15,592          15,768      16,262      16,359      16,045          16,325      15,687      15,560
FINANCING                                  
Straight debt:                                  
  Cash and cash equivalents     (1,146)          (533)       (1,498)       (3,268)     (3,464)       (3,426)       (2,748)       (2,948)     (1,996)       (1,664)       (1,102)
  Short-term borrowings     -           188                -                -     -                -                -                -     -                -                -
  Long-term debt due within one year     93           150             98           129     137           117           101           455     127           105             95
  Long-term debt     3,021        3,771        3,832        3,973     3,935        3,941        3,908        3,538     3,501        3,408        3,325
  Current portion of operating lease liabilities     218           221           226           241     244           278           269           274     276           270           266
  Operating lease liabilities     1,586        1,577        1,582        1,656            1,613        1,563        1,438        1,406            1,369        1,294        1,254
                     3,772        5,374        4,240        2,731            2,465        2,473        2,968        2,725            3,277        3,413        3,838
Long-term employee benefit liabilities     659           675           696           729     733           743           716           700     686           651           617
Other long-term liabilities     420           390           305           332     414           482           466           376     374           390           397
Deferred tax liabilities, net     87             10             87             80     104           124             40             19     (51)          (111)          (138)
                     1,166        1,075        1,088        1,141            1,251        1,349        1,222        1,095            1,009           930           876
Shareholders' equity     10,542        9,953      10,410      11,720     12,052      12,440      12,169      12,225     12,039      11,344      10,846
                   15,480      16,402      15,738      15,592          15,768      16,262      16,359      16,045          16,325      15,687      15,560
                                                     
ASSET UTILIZATION RATIOS                                  
  Days in accounts receivable     59.1 110.1 65.2 54.5     63.4 65.1 69.1 62.3     65.4 65.0 68.8
  Days in accounts payable     67.0 90.8 68.1 64.4     70.5 72.8 77.3 74.4     73.3 70.2 73.4
  Inventory turnover - cost of sales     8.6 4.8 8.8 10.2     9.5 7.7 6.6 7.9     7.9 8.1 7.9
  Working capital turnover      32.4 8.3 24.6 58.3     39.9 26.7 21.4 41.3     25.1 22.7 19.1
  Total asset turnover      2.2 1.0 2.3 2.7     2.6 2.2 1.9 2.3     2.4 2.4 2.4
                                           
CAPITAL STRUCTURE                                  
  Straight debt       24.4% 32.8% 26.9% 17.5%     15.6% 15.2% 18.1% 17.0%     20.1% 21.8% 24.7%
  Long-term employee benefit liabilities, other long-term                                  
    liabilities & deferred tax liabilities, net     7.5% 6.6% 6.9% 7.3%     7.9% 8.3% 7.5% 6.8%     6.2% 5.9% 5.6%
  Shareholders' equity      68.1% 60.7% 66.1% 75.2%     76.4% 76.5% 74.4% 76.2%     73.7% 72.3% 69.7%
              100.1% 100.0% 100.0% 100.0%     100.0% 100.0% 100.0% 100.0%     100.0% 100.0% 100.0%
                                           
  Debt to total capitalization      31.8% 37.2% 35.5% 33.9%     33.0% 32.2% 32.0% 31.7%     30.5% 30.9% 31.3%
ANNUALIZED RETURNS                                  
  Return on equity (Net income attributable to Magna                                  
    International Inc. / Average shareholders' equity)     9.6% -25.3% 15.9% 26.7%     20.7% 13.8% 0.4% 15.2%     12.0% -5.3% 10.4%
  Adjusted Return on equity (Adjusted Net income attributable                                  
     to Magna International Inc. / Average shareholders' equity)     9.6% -19.9% 23.0% 30.8%     19.0% 13.9% 5.5% 12.8%     12.6% 8.3% 11.1%
  Return on Invested Capital (Annualized after-tax operating                                  
    profits / invested capital)     6.7% -15.9% 8.6% 19.6%     16.3% 11.1% 0.9% 12.2%     9.9% -3.2% 7.9%
  Adjusted Return on Invested Capital (Adjusted Annualized after-tax                                  
    operating profits / invested capital)     6.7% -12.5% 15.0% 22.5%     15.1% 11.2% 4.8% 10.4%     10.4% 6.7% 8.4%

 

 

 Page 2 of 6 

 

 

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(United States dollars in millions) (Unaudited)
                                             
              2020   2021   2022
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 TOTAL
                             
Operating activities                                    
  Net income (loss)               252          (652)           327           750           677             622           436             17           478        1,553             379          (145)           296           530
  Items not involving current cash flows (i)             344           335           749           548        1,976             349           341           515           371        1,576             370           705           295        1,370
          (i)             596          (317)        1,076        1,298        2,653             971           777           532           849        3,129             749           560           591        1,900
  Changes in operating assets and liabilities (i)               43          (915)           536           961           625            (310)          (249)          (132)           502          (189)            (569)          (139)          (353)       (1,061)
                                             
Cash provided from (used for) operating activities               639       (1,232)        1,612        2,259        3,278             661           528           400        1,351        2,940             180           421           238           839
                                                   
Investment activities                                          
  Fixed asset additions               (203)          (169)          (213)          (560)       (1,145)            (212)          (277)          (334)          (549)       (1,372)            (238)          (329)          (364)          (931)
  Increase in equity method investment                   -                 -                 -                 -                 -                   -                 -            (454)            (63)          (517)                 -                 -                 -                 -  
  Increase in investments, other assets and intangible assets                (93)            (72)            (68)            (98)          (331)            (104)            (93)          (101)          (105)          (403)              (64)            (80)          (125)          (269)
  Proceeds (funding provided) on sale of business 1 (e)                 -                 -                 -                 -                 -                   -                 -              (41)               -              (41)                 6               -                 -                 6
  Increase in public and private equity investments              (100)              (2)            (12)            (18)          (132)                (3)            (17)              (3)            (45)            (68)                (2)              (2)            (25)            (29)
  Settlement of long-term receivable from non-consolidated joint venture                 -                 -                 -                 -                 -                 50               -                 -                 -               50                 -                 -                 -                 -  
  Proceeds from disposition                 23             11             14             69           117               19             20             10             32             81               23             40             41           104
  Business combinations                  (7)               -                 -               98             91               39            (21)               -              (31)            (13)                 -                 -                 -                 -  
Cash (used for) provided from investment activities              (380)          (232)          (279)          (509)       (1,400)            (211)          (388)          (923)          (761)       (2,283)            (275)          (371)          (473)       (1,119)
                                                   
Financing activities                                          
  Net issues (repayments) of debt                  (6)           962          (246)            (27)           683            (126)            (33)            (13)               5          (167)            (328)            (31)            (10)          (369)
  Common Shares issued on exercise of stock options                   1               1             15             64             81               83             50               3             10           146                 4               -                 1               5
  Repurchase of Common Shares              (201)               -                (2)               -            (203)            (162)            (99)              (5)          (251)          (517)            (383)          (212)          (180)          (775)
  Tax withholdings on vesting of equity awards                (10)               -                 -                (3)            (13)              (12)               -                 -                (1)            (13)              (14)              (1)               -              (15)
  Contributions to subsidiaries by non-controlling interests                   -                 -                 -               18             18                 -                 -                 -                 8               8                 -                 5               -                 5
  Dividends paid to non-controlling interests                  (3)              (3)               -              (12)            (18)                 -                (8)              (2)            (39)            (49)                 -              (12)            (10)            (22)
  Dividends paid              (121)          (116)          (115)          (115)          (467)            (130)          (127)          (130)          (127)          (514)            (133)          (130)          (125)          (388)
                                                   
Cash provided from (used for) financing activities              (340)           844          (348)            (75)             81            (347)          (217)          (147)          (395)       (1,106)            (854)          (381)          (324)       (1,559)
Effect of exchange rate changes on cash, cash equivalents                                          
  and restricted cash equivalents                (52)               9            (15)             81             23              (13)             39              (8)               5             23                (3)              (1)              (3)              (7)
Net increase (decrease) in cash, cash equivalents                                    
  and restricted cash equivalents during the period              (133)          (611)           970        1,756        1,982               90            (38)          (678)           200          (426)            (952)          (332)          (562)       (1,846)
Cash, cash equivalents and restricted cash equivalents,                                    
  beginning of period 3          1,392        1,259           648        1,618        1,392          3,374        3,464        3,426        2,748        3,374          2,948        1,996        1,664        2,948
Cash, cash equivalents and restricted cash equivalents,                                          
  end of period            1,259           648        1,618        3,374        3,374          3,464        3,426        2,748        2,948        2,948          1,996        1,664        1,102        1,102
                                             
        (i) Certain amounts in prior periods have been reclassified to conform with current period presentation.

 

 

 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, 2021.
                                             
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:
                                             
              2020   2021   2022
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q TOTAL
                                             
                                             
    Restructuring and impairments [a]   - 168 - 101 269   15 44 24 18 101   - 376 14 390
    Net (gains) losses on investments [b]   - - (21) (11) (32)   (33) (38) 81 (8) 2   61 50 9 120
    Sale of business [c]   - - - - -   - - 75 - 75   - - - -
    Impairments and loss on sale of equity-accounted investments [d]   - - 337 10 347   - - - - -   - - - -
    Merger Agreement Termination Fee [e]   - - - - -   - - - (100) (100)   - - - -
    Gain on business combinations [f]   - - - - -   (40) - - - (40)   - - - -
                                                       -    
              -           168           316           100           584   (58)               6           180            (90)             38   61           426             23           510
  [a] 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, during the second quarter of 2020, 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 and resulted in 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.

 

    Impairments related to operations in Russia:              
   

The Company’s operations in Russia remain substantially idled and production is not expected to resume before 2024.  In accordance with U.S. GAAP, as a result of the expected lack of future cashflows and the continuing uncertainties connected with the Russian economy, the Company recorded a $376 million impairment charge related to its investment in Russia. This included net asset impairments of $173 million and a $203 million reserve against the related foreign currency translation losses that are included in accumulated other comprehensive loss. The net asset impairments consisted of $163 million and $10 million in our Body Exteriors & Structures segment and our Seating segment, respectively.

 

    Other Impairments:     2020   2021   2022
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q TOTAL
    Body Exteriors & Structures                    -                -                -             65             65                  -                -               8                -               8                  -                -             10             10
    Power & Vision                    -                -                -                -                -                  -                -                -                -                -                  -                -               4               4
    Seating Systems     - - - 15 15   - - 4 - 4   - - - -
              -                -                -             80             80   -                -             12                - 12   -                -             14 14
    Other Restructuring:      2020   2021   2022
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q TOTAL
    Power & Vision                    -                -                -                -                -               15             44               4               4             67                  -                -                -                -
    Body Exteriors & Structures                    -                -                -             21             21                  -                -               8                -               8                  -                -                -                -
    Seating Systems     - - - - -   - - - 14 14   - - - -
              -                -                -             21             21   15             44             12             18 89   -                -                - -
                                             
  [b] Net (gains) losses on investments                                    
   

The Company revalues its public and private equity investments and certain public company warrants every quarter. The gains and losses related to this revaluation, as well as gain and losses on disposition, are recorded in Corporate.

 

  [c] Sale of business                                    
   

During the third quarter of 2021, the Company sold three Body Exteriors & Structures operations in Germany. Under the terms of the arrangement, the Company provided the buyer with $41 million of funding, resulting in a loss on disposal of $75 million.

 

  [d] Impairments and loss on sale of equity-accounted investments                                  
   

In Power & Vision, during the third quarters of 2020, the Company recorded impairment charges of $337 million on equity accounted investments, and In the fourth quarter of 2020, recorded a $10 million loss on the sale of its 50% interest in Dongfeng Getrag Transmission Co. Ltd.

 

  [e] Merger Agreement Termination Fee                                    
   

In the fourth quarter of 2021, Veoneer, Inc. (“Veoneer”) terminated its merger agreement with Magna.  In connection with the termination of the merger agreement, Veoneer paid the Company a termination fee which, net of the Company’s associated transaction costs, amounted to $100 million.

 

  [f] 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.

 

 

 Page 4 of 6 

 

 

   

The following table reconciles Net income (loss) attributable to Magna International Inc. to Adjusted net income (loss) attributable to Magna International Inc.:

 

              2020   2021   2022
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q TOTAL
                             
                                             
    Net income (loss) attributable to Magna International Inc.     261          (647)           405           738           757   615           424             11           464        1,514   364          (156)           289           497
      Exclude:                                     
        Restructuring and impairments     - 136 - 101           237   15 31 20 17             83   - 361 12           373
        Net (gains) losses on investments     - - (20) (7)            (27)   (24) (29) 64 (2)               9   48 38 7             93
        Adjustments to Deferred Tax Valuation Allowance [i]   - - - -                -   - - - (13)            (13)   (29) - -            (29)
        Net (gains) losses on the sale of business     - - - -                -   - - 75 -             75   - - -                -
        Impairments and loss on sale of equity-accounted investments [ii]   -                -           200 19           219   -                -                - -                -   -                -                -                -
        Merger Agreement Termination Fee     - - - -                -   - - - (75)            (75)   - - -                -
        Gain on business combinations     - - - -                -   (40) - - -            (40)   - - -                -
                                      -                    -
    Adjusted net income (loss) attributable to Magna International Inc.   261          (511)           585           851        1,186   566           426           170           391        1,553   383           243           308           934
                                             
                                             
    Diluted earnings (loss) per share      $      0.86  $     (2.17)  $      1.35  $      2.45  $      2.52    $      2.03  $      1.40  $      0.04  $      1.54  $      5.00    $      1.22         (0.54)          1.00  $      1.70
      Exclude:                                    
        Restructuring and impairments     -          0.46               -            0.34 0.79   0.05          0.10          0.06          0.06 0.27   -          1.24          0.04 1.27
        Net (gains) losses on investments     -               -           (0.07)         (0.02) (0.09)   (0.08)         (0.10)          0.21         (0.01) 0.03   0.16          0.13          0.03 0.32
        Adjustments to Deferred Tax Valuation Allowance [i]   -               -                 -                 -   -   -               -                 -           (0.04) (0.04)   (0.10)               -                 -   (0.10)
        Net (gains) losses on the sale of business     -               -                 -                 -   -   -               -            0.25               -   0.25   -               -                 -   -
        Impairments and loss on sale of equity-accounted investments [ii]   -               -            0.67          0.06 0.73   -               -                 -                 -   -   -               -                 -   -
        Merger Agreement Termination Fee     -               -                 -                 -   -   -               -                 -           (0.25) (0.25)   -               -                 -   -
        Gain on business combinations     -               -                 -                 -   -   (0.14)               -                 -                 -   (0.13)   -               -                 -   -
                                             
    Adjusted diluted earnings (loss) per share       $      0.86  $     (1.71)  $      1.95  $      2.84  $      3.95    $      1.86  $      1.40  $      0.56  $      1.30  $      5.13    $      1.28  $      0.83  $      1.07  $      3.19
     
    [i] Adjustments to Deferred Tax Valuation Allowance                                    
    In the fourth quarter of 2021 and first quarter of 2022, the Company recorded adjustments to the valuation allowance against its deferred tax assets in certain European countries and North America. The net effect of these adjustments was a reduction in income tax expense of $13 million and $29 million, respectively.
    [ii] Impairment charges                                    
    Impairment charges relating to the Company's equity accounted investment for 2020 include $75 million attributable to non-controlling interest.

 

 

 Page 5 of 6 

 

 

Note 2:  SEGMENTED INFORMATION
     
              2020   2021   2022
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q TOTAL
    Body Exteriors & Structures                     
      Sales     3,676 1,623 3,858 4,393 13,550   4,025 3,647 3,185 3,620 14,477   4,077 3,947 3,976 12,000
      Adjusted EBIT     199 (315) 390 543 817   327 227 98 168 820   229 191 225 645
      Adjusted EBIT as a percentage of sales     5.4% -19.4% 10.1% 12.4% 6.0%   8.1% 6.2% 3.1% 4.6% 5.7%   5.6% 4.8% 5.7% 5.4%
                                             
    Power & Vision                                    
      Sales     2,523 1,298 2,722 3,179 9,722   3,156 2,881 2,501 2,804 11,342   3,046 2,888 2,911 8,845
      Adjusted EBIT     135 (226) 227 359 495   297 203 67 171 738   154 91 117 362
      Adjusted EBIT as a percentage of sales     5.4% -17.4% 8.3% 11.3% 5.1%   9.4% 7.0% 2.7% 6.1% 6.5%   5.1% 3.2% 4.0% 4.1%
                                             
    Seating Systems                                    
      Sales     1,261 524 1,280 1,390 4,455   1,303 1,166 1,123 1,299 4,891   1,376 1,253 1,295 3,924
      Adjusted EBIT     40 (84) 66 85 107   55 26 22 49 152   49 2 35 86
      Adjusted EBIT as a percentage of sales     3.2% -16.0% 5.2% 6.1% 2.4%   4.2% 2.2% 2.0% 3.8% 3.1%   3.6% 0.2% 2.7% 2.2%
                                             
    Complete Vehicles                                    
      Sales     1,321 933 1,402 1,759 5,415   1,850 1,490 1,255 1,511 6,106   1,275 1,403 1,213 3,891
      Adjusted EBIT     50 44 70 110 274   80 79 30 98 287   50 63 65 178
      Adjusted EBIT as a percentage of sales     3.8% 4.7% 5.0% 6.3% 5.1%   4.3% 5.3% 2.4% 6.5% 4.7%   3.9% 4.5% 5.4% 4.6%
                                             
    Corporate and other                                    
      Intercompany fees     (124) (85) (133) (153) (495)   (155) (150) (145) (124) (574)   (132) (129) (127) (388)
      Adjusted EBIT     (21) (19) 25 (2) (17)   11 22 12 22 67   25 11 (1) 35
      Adjusted EBIT as a percentage of sales     16.9% 22.4% -18.8% 1.3% 3.4%   -7.1% -14.7% -8.3% -17.7% -11.7%   -18.9% -8.5% 0.8% -9.0%
                                             
    Total                                        
      Sales     8,657 4,293 9,129 10,568 32,647   10,179 9,034 7,919 9,110 36,242   9,642 9,362 9,268 28,272
      Adjusted EBIT     403 (600) 778 1,095 1,676   770 557 229 508 2,064   507 358 441 1,306
      Adjusted EBIT as a percentage of sales     4.7% -14.0% 8.5% 10.4% 5.1%   7.6% 6.2% 2.9% 5.6% 5.7%   5.3% 3.8% 4.8% 4.6%
                                             
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:
                                             
              2020     2021     2022  
              1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q  
                                             
    Cash and cash equivalents     (1,146) (533) (1,498) (3,268)     (3,464) (3,426) (2,748) (2,948)     (1,996) (1,664) (1,102)  
    Restricted cash equivalents included in prepaid expenses              (113)          (115)          (120)          (106)                  -                 -                 -                 -                     -                 -                 -     
    Total cash, cash equivalents and restricted cash equivalents     (1,259) (648) (1,618) (3,374)     (3,464) (3,426) (2,748) (2,948)     (1,996) (1,664) (1,102)  

 

 

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