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		    
              2022   2023   2024
          Note   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q
VEHICLE VOLUME STATISTICS (in millions)              
North America     3.615 3.551 3.600 3.514 14.280   3.884 4.080 3.930 3.743 15.637   3.963
                                       
Europe         3.997 4.020 3.597 4.188 15.802   4.581 4.598 3.825 4.357 17.361   4.497
                                       
China           6.361 5.489 7.235 7.264 26.349   5.936 6.797 7.657 8.940 29.330   6.601
                                       
Other           6.375 6.140 6.704 6.858 26.077   6.968 6.715 6.998 7.189 27.870   6.832
                                       
Global           20.348 19.200 21.136 21.824 82.508   21.369 22.190 22.410 24.229 90.198   21.893
                                       
Magna Steyr vehicle assembly volumes     0.026 0.032 0.026 0.028 0.112   0.034 0.027 0.023 0.021 0.105   0.022
                                       
AVERAGE FOREIGN EXCHANGE RATES                              
1 Canadian dollar equals U.S. dollars     0.790 0.783 0.765 0.737 0.769   0.740 0.745 0.746 0.735 0.742   0.741
1 euro equals U.S. dollars     1.123 1.064 1.006 1.019 1.053   1.073 1.089 1.088 1.076 1.082   1.085
1 Chinese renminbi equals U.S. dollars     0.158 0.151 0.146 0.140 0.149   0.146 0.143 0.138 0.138 0.141   0.139
                                       
CONSOLIDATED STATEMENTS OF INCOME (LOSS)                              
Sales:                                    
    Body Exteriors & Structures      4,077      3,947      3,976      4,004 16,004   4,439      4,540      4,354      4,178 17,511   4,429
    Power & Vision     3,046      2,888      2,911      3,016 11,861   3,323      3,462      3,745      3,775 14,305   3,842
    Seating Systems     1,376 1,253 1,295 1,345 5,269   1,486 1,603 1,529 1,429 6,047   1,455
    Complete Vehicles     1,275 1,403 1,213 1,330 5,221   1,626 1,526 1,185 1,201 5,538   1,383
    Corporate & Other     (132) (129) (127) (127) (515)   (201) (149) (125) (129) (604)   (139)
Sales           9,642      9,362      9,268      9,568 37,840   10,673    10,982    10,688    10,454 42,797   10,970
                                       
Costs and expenses:                              
  Cost of goods sold     8,400      8,259      8,126      8,403 33,188   9,416      9,544      9,264      8,961 37,185   9,642
  Selling, general and administrative      386         410         387         477 1,660   488         505         491         566 2,050   516
  Equity income     (20)         (25)         (27)         (17) (89)   (33)         (36)         (40)           (3) (112)   (34)
                                       
Adjusted EBITDA     876 718 782 705 3,081   802 969 973 930 3,674   846
Depreciation       357         348         330         338 1,373   353         353         358         372 1,436   377
                                       
Adjusted EBIT     519 370 452 367 1,708   449 616 615 558 2,238   469
  Amortization of acquired intangible assets     12 12 11 11 46   12 13 32 31 88   28
  Other expense (income), net 1   61 426 23 193 703   142 86 (4) 164 388   356
  Interest expense, net     26           20           18           17 81   20           34           49           53 156   51
                                       
Income (loss) from operations before income taxes     420 (88) 400 146 878   275 483 538 310 1,606   34
Income tax expense     41           57         104           35 237   58         129         121           12 320   8
                                       
Net income (loss)     379       (145)         296         111 641   217         354         417         298 1,286   26
Income attributable to non-controlling interests     (15)         (11)           (7)         (16) (49)   (8)         (15)         (23)         (27) (73)   (17)
                                       
Net income (loss) attributable to Magna International Inc.     364 (156) 289 95 592   209 339 394 271 1,213   9
                                       
Diluted earnings (loss) per common share      $    1.22  $  (0.54)  $    1.00  $    0.33  $    2.03    $   0.73  $    1.18  $    1.37  $    0.94  $   4.23    $   0.03
                                       
Weighted average number of Common Shares outstanding                               
  during the period (in millions):     298.1 291.1 288.5 286.3 291.2   286.6 286.3 286.8 286.6 286.6   287.1
                                       
                                       
NON-GAAP MEASURES                              
                                       
  Adjusted EBITDA     876 718 782 705 3,081   802 969 973 930 3,674   846
                                       
  Adjusted EBIT 2   519 370 452 367 1,708   449 616 615 558 2,238   469
                                       
  Adjusted net income attributable to Magna International Inc.     393 253 317 270 1,233   329 441 419 383 1,572   311
                                       
  Adjusted Diluted earnings per common share      $    1.32  $    0.87  $    1.10  $    0.94  $    4.24    $   1.15  $    1.54  $    1.46  $    1.33  $   5.49    $   1.08
                                       
                                       
PROFITABILITY RATIOS                              
  Selling, general and administrative /Sales     4.0% 4.4% 4.2% 5.0% 4.4%   4.6% 4.6% 4.6% 5.4% 4.8%   4.7%
  Adjusted EBIT /Sales     5.4% 4.0% 4.9% 3.8% 4.5%   4.2% 5.6% 5.8% 5.3% 5.2%   4.3%
  Operating income /Sales     4.4% -0.9% 4.3% 1.5% 2.3%   2.6% 4.4% 5.0% 3.0% 3.8%   0.3%
  Effective tax rate                              
    Reported     9.8% -64.8% 26.0% 24.0% 27.0%   21.1% 26.7% 22.5% 3.9% 19.9%   23.5%
    Excluding Other expense (income) and amortization, net of taxes     17.2% 24.6% 25.3% 18.3% 21.2%   21.4% 21.6% 21.9% 18.8% 21.0%   21.5%

 

 Page 1 of 7 

 

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.    
CONSOLIDATED BALANCE SHEETS    
(United States dollars in millions) (Unaudited)    
                                       
              2022     2023     2024
              1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q     1st Q
FUNDS EMPLOYED                              
Current assets:                              
  Accounts receivable     7,006      6,764      7,082      6,791     7,959      8,556      8,477      7,881     8,379
  Inventories     4,258      4,064      4,108      4,180     4,421      4,664      4,751      4,606     4,511
  Prepaid expenses and other     310         262         269         320     367         455         387         352     399
                 11,574    11,090    11,459    11,291       12,747    13,675    13,615    12,839     13,289
Current liabilities:                              
  Accounts payable     6,845      6,443      6,624      6,999     7,731      7,984      7,911      7,842     7,855
  Accrued salaries and wages     879         766         810         850     822         858         900         912     883
  Other accrued liabilities     2,123      2,096      1,986      2,118     2,526      2,637      2,537      2,626     2,728
  Income taxes payable (receivable)     190         136           97           93     9         (14)           33         125     132
              10,037      9,441      9,517    10,060     11,088    11,465    11,381    11,505     11,598
                                       
Working capital      1,537      1,649      1,942      1,231     1,659      2,210      2,234      1,334     1,691
                                       
Investments            1,487      1,375      1,323      1,429         1,390      1,287      1,311      1,273         1,195
Fixed assets, net          8,090      7,723      7,470      8,173         8,304      8,646      8,778      9,618         9,545
Goodwill, other assets and intangible assets     3,544      3,353      3,280      3,576     3,640      4,733      4,726      4,962         4,646
Operating lease right-of-use assets          1,667      1,587      1,545      1,595         1,638      1,667      1,696      1,744         1,733
Funds employed        16,325    15,687    15,560    16,004       16,631    18,543    18,745    18,931       18,810
FINANCING                                
Straight debt:                                
  Cash and cash equivalents     (1,996)    (1,664)    (1,102)    (1,234)     (2,429)    (1,281)    (1,022)    (1,198)     (1,517)
  Short-term borrowings     -             -             -             8     4         150             2         511     838
  Long-term debt due within one year     127         105           95         654     668      1,426      1,398         819     824
  Long-term debt     3,501      3,408      3,325      2,847     4,500      4,159      4,135      4,175     4,549
  Current portion of operating lease liabilities     276         270         266         276     285         303         384         399     306
  Operating lease liabilities     1,369      1,294      1,254      1,288         1,318      1,345      1,289      1,319         1,407
                   3,277      3,413      3,838      3,839         4,346      6,102      6,186      6,025         6,407
Long-term employee benefit liabilities     686         651         617         548     563         579         564         591     584
Other long-term liabilities     374         390         397         461     451         448         453         475     471
Deferred tax liabilities, net     (51)       (111)       (138)       (179)     (218)       (242)       (210)       (437)     (576)
                   1,009         930         876         830            796         785         807         629            479
Shareholders' equity     12,039    11,344    10,846    11,335     11,489    11,656    11,752    12,277     11,924
                 16,325    15,687    15,560    16,004       16,631    18,543    18,745    18,931       18,810
                                                
ASSET UTILIZATION RATIOS                              
  Days in accounts receivable     65.4 65.0 68.8 63.9     67.1 70.1 71.4 67.8     68.7
  Days in accounts payable     73.3 70.2 73.4 75.0     73.9 75.3 76.9 78.8     73.3
  Inventory turnover - cost of goods sold     7.9 8.1 7.9 8.0     8.5 8.2 7.8 7.8     8.5
  Working capital turnover      25.1 22.7 19.1 31.1     25.7 19.9 19.1 31.3     25.9
  Total asset turnover      2.4 2.4 2.4 2.4     2.6 2.4 2.3 2.2     2.3
                                       
CAPITAL STRUCTURE                              
  Straight debt     20.1% 21.8% 24.7% 24.0%     26.1% 32.9% 33.0% 31.8%     34.1%
  Long-term employee benefit liabilities, other long-term                              
    liabilities & deferred tax liabilities, net     6.2% 5.9% 5.6% 5.2%     4.8% 4.2% 4.3% 3.3%     2.5%
  Shareholders' equity      73.7% 72.3% 69.7% 70.8%     69.1% 62.9% 62.7% 64.9%     63.4%
              100.0% 100.0% 100.0% 100.0%     100.0% 100.0% 100.0% 100.0%     100.0%
  Debt to total capitalization      30.5% 30.9% 31.3% 30.9%     37.1% 38.8% 38.0% 37.0%     39.9%
                                       
ANNUALIZED RETURNS                              
  Adjusted Return on equity (Adjusted Net income attributable                              
     to Magna International Inc. / Average shareholders' equity)     13.6% 8.7% 11.4% 9.7%     11.5% 15.2% 14.3% 12.8%     10.3%
  Adjusted Return on Invested Capital (Adjusted Annualized after-tax                              
    operating profits / Invested capital)     10.6% 7.0% 8.6% 7.6%     8.7% 11.0% 10.3% 9.6%     7.8%

 

 Page 2 of 7 

 

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.    
CONSOLIDATED STATEMENTS OF CASH FLOWS    
(United States dollars in millions) (Unaudited)    
                                       
              2022   2023   2024
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
                       
Operating activities                              
  Net income (loss)             379       (145)         296         111         641          217         354         417         298     1,286            26
  Items not involving current cash flows             370         705         295         406      1,776          351         525         404         362     1,642          565
                      749         560         591         517      2,417          568         879         821         660     2,928          591
  Changes in operating assets and liabilities           (569)       (139)       (353)         739       (322)         (341)       (332)         (24)         918        221               (330)
Cash provided from operating activities             180         421         238      1,256      2,095          227         547         797      1,578     3,149          261
                                           
Investment activities                                  
  Fixed asset additions            (238)       (329)       (364)       (750)    (1,681)         (424)       (502)       (630)       (944)    (2,500)         (493)
  Increase in investments, other assets and intangible assets             (64)         (80)       (125)       (186)       (455)         (101)         (96)       (176)       (189)       (562)         (125)
  Net cash inflow (outflow) from disposal of facilities 1(c), 1(e)               6            -              -              -               6           (25)            -           (23)            -           (48)              4
  Increase in public and private equity investments               (2)           (2)         (25)            -           (29)              -             (3)           (7)           (1)         (11)           (23)
  Proceeds from disposition               23           40           41           20         124            19           44           32           27        122            87
  Business combinations                -              -              -             (3)           (3)              -      (1,475)            -           (29)    (1,504)           (30)
Cash used for investment activities           (275)       (371)       (473)       (919)    (2,038)         (531)    (2,032)       (804)    (1,136)    (4,503)         (580)
                                           
Financing activities                                  
  Net issues (repayments) of debt           (328)         (31)         (10)         (22)       (391)       1,636         544       (135)       (119)     1,926          757
  Common Shares issued on exercise of stock options                 4            -               1             3             8              6            -               8             6          20            30
  Repurchase of Common Shares           (383)       (212)       (180)           (5)       (780)             (9)           (2)            -             (2)         (13)             (3)
  Tax withholdings on vesting of equity awards             (14)           (1)            -              -           (15)             (9)           (1)            -             (1)         (11)             (4)
  Contributions to subsidiaries by non-controlling interests                -               5            -              -               5              -              -              -             11          11              -  
  Dividends paid to non-controlling interests                -           (12)         (10)         (24)         (46)             (7)         (24)         (18)         (25)         (74)              -  
  Dividends paid           (133)       (130)       (125)       (126)       (514)         (132)       (129)       (128)       (133)       (522)         (134)
Cash provided from (used for) financing activities           (854)       (381)       (324)       (174)    (1,733)       1,485         388       (273)       (263)     1,337          646
Effect of exchange rate changes on cash and cash equivalents               (3)           (1)           (3)         (31)         (38)            14         (51)           21           (3)         (19)             (8)
                                       
Net increase (decrease) in cash and cash equivalents, during the period           (952)       (332)       (562)         132    (1,714)       1,195    (1,148)       (259)         176         (36)          319
                                       
Cash and cash equivalents, beginning of period          2,948      1,996      1,664      1,102      2,948       1,234      2,429      1,281      1,022     1,234       1,198
Cash and cash equivalents, end of period          1,996      1,664      1,102      1,234      1,234       2,429      1,281      1,022      1,198     1,198       1,517

 

 Page 3 of 7 

 

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, 2023.    
                                       
Note 1: OTHER EXPENSE (INCOME), NET                              
    Other expense (income), net consists of:
              2022   2023   2024
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q
                                       
                                       
    Impairments and restructuring related to Fisker Inc. [“Fisker”] [a]   - - - - -   - - - - -   316
    Restructuring [b]   - - - 22 22   118 (35) (1) 66 148   38
    Investment revaluations, (gains) losses on sales, and impairments [c]   61 50 9 101 221   24 98 (19) 98 201   2
    Impairments and loss on sale of operations in Russia [d]   - 376 - - 376   - - 16 - 16   -
    Veoneer AS transaction costs [e]   - - - - -   - 23 - - 23   -
    Loss on sale of business [f]   - - - 58 58   - - - - -   -
    Impairments [g]   - - 14 12 26   - - - - -   -
                                       
              61         426           23         193         703   142           86           (4)         164        388   356
  [a] Impairments and restructuring related to Fisker Inc. [“Fisker”]                              
    Impairment of Fisker related assets:              
    During the first quarter of 2024, the Company recorded a $261 million impairment charge on its Fisker related assets as a result of the expected lack of future cashflows and the substantial doubt about Fisker’s ability to continue as a going concern. The assets impaired include production receivables, inventory, fixed assets and other capitalized expenditures.
     
    Impairment of Fisker warrants:              
    Fisker issued approximately 19.5 million penny warrants to the Company to purchase common stock in connection with our agreements with Fisker for platform sharing, engineering and manufacturing of the Fisker Ocean SUV. These warrants vested during 2021 and 2022 based on specified milestones and have been marked to market each quarter.

During the first quarter of 2024, Magna recorded a $33 million impairment charge on these warrants reducing the value of the warrants to nil.
     
    Restructuring:              
    In the first quarter of 2024, the Company recorded restructuring charges of $22 million in its Complete Vehicles segment in connection with its Fisker related assembly operations.
     
  [b] Restructuring                              
    Reversal of restructuring charges:              
    During the second quarter of 2023, the Company’s Power & Vision segment reversed $39 million of charges due to a change in the restructuring plans related to a plant closure.
     
    Sale of buildings as a result of restructuring activities:              
    During the second and third quarter of 2023, the Company’s Power & Vision segment recorded a $10 million and $8 million gain on the sale of a building as a result of restructuring activities, respectively.
     
    Other Restructuring:      2022   2023   2024
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q
    Complete Vehicles                 -             -             -             -             -               -             -             -             -             -            26
    Body Exteriors & Structures                 -             -             -             -             -            13             9             -             9          31            12
    Power & Vision                 -             -             -           22           22          105             5             7           57        174               -
              -             -             -           22           22   118           14             7           66        205   38
  [c] Investment revaluations, (gains) losses on sales, and impairments                            
    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 primarily recorded in Corporate. In the second quarter of 2023, the Company recorded a non-cash impairment charge of $85 million on a private equity investment and related long-term receivables within Other assets in its Corporate segment.  In the fourth quarter of 2023, the Company also recorded a non-cash impairment charge of $5 million on a private equity investment in its Power & Vision segment.
     
  [d] Impairments and loss on sale of operations in Russia                              
    As a result of the expected lack of future cashflows and the continuing uncertainties connected with the Russian economy, during the second quarter of 2022, 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 were included in accumulated other comprehensive loss. The net asset impairments consisted of $163 million and $10 million in our Body Exteriors & Structures and our Seating Systems segments, respectively.

During the third quarter of 2023, the Company completed the sale of all of its investments in Russia resulting in a loss of $16 million including a net cash outflow of $23 million.
     
  [e] Veoneer AS transaction costs                              
    During 2023, the Company incurred $23 million of transaction costs related to the acquisition of the Veoneer Active Safety Business.
     
  [f] Loss on sale of business                              
    During the fourth quarter of 2022, the Company entered into an agreement to sell a European Power & Vision operation. Under the terms of the arrangement, the Company was contractually obligated to provide the buyer with up to $42 million of funding, resulting in a loss of $58 million. During the first quarter of 2023, the Company completed the sale of this operation which resulted in a net cash outflow of $25 million.
     
  [g] Impairments     2022   2023   2024
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q
    Body Exteriors & Structures                 -             -           10           12           22               -             -             -             -             -               -
    Power & Vision                 -             -             4             -             4               -             -             -             -             -               -
              -             -           14           12           26   -             -             -             - -   -

 

 Page 4 of 7 

 

Note 2: NON-GAAP MEASURES                              
    The Company presents Adjusted EBIT (Earnings before interest, taxes, Other expense (income),net and amortization of acquired intangible assets); Adjusted Net Income (Net Income before Other expense (income),net, net of tax excluding significant income tax valuation allowance adjustments, and amortization of acquired intangible assets); Adjusted Diluted Earnings per Share; Adjusted EBIT as a percentage of sales; Adjusted Return on Invested Capital and Adjusted Return on Equity. 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. Adjusted EBIT, Adjusted Net Income and Adjusted diluted earnings per share presented in the tables below, including for the prior period, have been updated to reflect the revised calculation.
    The following table reconciles Income (loss) from operations before income taxes to Adjusted EBIT:                    
              2022   2023   2024
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q
                                       
    Income (loss) from operations before income taxes     420         (88)         400         146 878   275         483         538         310 1,606   34
      Exclude:                              
        Amortization of acquired intangible assets     12           12           11           11 46   12           13           32           31 88   28
        Other expense (income), net     61         426           23         193 703   142           86           (4)         164 388   356
        Interest expense     26           20           18           17 81   20           34           49           53 156   51
    Adjusted EBIT     519         370         452         367 1,708   449         616         615         558 2,238   469
                                       
    The following table show the calculation of Adjusted Return on Invested Capital:                        
              2022     2023     2024
              1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q     1st Q
                                       
    Net income (loss)     379       (145)         296         111     217         354         417         298     26
      Add (deduct):                              
        Interest expense     26           20           18           17     20           34           49           53     51
        Amortization of acquired intangible assets     12           12           11           11     12           13           32           31     28
        Other expense (income), net     61         426           23         193     142           86           (4)         164     356
        Tax effect on Interest expense, net, Amortization of acquired                              
            intangible assets and Other expense, net     (19)         (34)         (11)         (32)     (38)           (4)         (14)         (46)     (93)
        Adjustments to Deferred Tax Valuation Allowances     (29)             -             -             -     -             -             -         (47)     -
    Adjusted After-tax operating profits     430         279         337         300     353         483         480         453     368
                                       
                                       
    Total Assets     28,822    27,283    26,667    27,789     30,654    31,837    31,675    32,255     32,678
      Excluding:                              
        Cash and cash equivalents     (1,996)    (1,664)    (1,102)    (1,234)     (2,429)    (1,281)    (1,022)    (1,198)     (1,517)
        Deferred tax assets     (464)       (491)       (488)       (491)     (506)       (535)       (527)       (621)     (753)
    Less Current Liabilities     (10,440)    (9,816)    (9,878)  (10,998)     (12,045)  (13,358)  (13,165)  (13,234)     (13,566)
      Excluding:                              
        Short-term borrowing     -             -             -             8     4         150             2         511     838
        Long-term debt due within one year     127         105           95         654     668      1,426      1,398         819     824
        Current portion of operating lease liabilities     276         270         266         276     285         303         384         399     306
    Invested Capital     16,325    15,687    15,560    16,004     16,631    18,542    18,745    18,931     18,810
                                       
                                       
        Adjusted After-tax operating profits     430         279         337         300     353         483         480         453     368
        Average Invested Capital     16,185    16,006    15,624    15,782     16,318    17,587    18,644    18,838     18,871
    Adjusted Return on Invested Capital     10.6% 7.0% 8.6% 7.6%     8.7% 11.0% 10.3% 9.6%     7.8%

 

 Page 5 of 7 

 

Note 2: NON-GAAP MEASURES (Continued)                              
    The following table show the calculation of Adjusted Return on Equity:                            
              2022     2023     2024
              1st Q 2nd Q 3rd Q 4th Q     1st Q 2nd Q 3rd Q 4th Q     1st Q
                                       
    Net income (loss) attributable to Magna International Inc.     364       (156)         289           95     209         339         394         271     9
      Add (deduct):                              
        Amortization of acquired intangible assets     12           12           11           11     12           13           32           31     28
        Other expense (income), net     61         426           23         193     142           86           (4)         164     356
        Tax effect on Amortization of acquired intangible assets                              
            and Other expense, net     (15)         (29)           (6)         (29)     (34)             3           (3)         (36)     (82)
        Adjustments to Deferred Tax Valuation Allowances     (29)             -             -             -     -             -             -         (47)     -
    Adjusted Net income (loss) attributable to Magna International Inc.   393         253         317         270     329         441         419         383     311
    Average Shareholder's Equity     11,599    11,692    11,095    11,091     11,412    11,573    11,704    12,015     12,101
    Adjusted Return on Equity     13.6% 8.7% 11.4% 9.7%     11.5% 15.2% 14.3% 12.8%     10.3%
                                       
    The following table reconciles Net income (loss) attributable to Magna International Inc. to Adjusted net income attributable to Magna International Inc.:        
              2022   2023   2024
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q
                                       
    Net income (loss) attributable to Magna International Inc.     364       (156)         289           95         592   209         339         394         271     1,213   9
      Exclude:                               
        Amortization of acquired intangible assets     10 10 9 9           38   10 11 25 25          71   22
        Impairments and restructuring related to Fisker Inc. [“Fisker”]     - - - -             -   - - - -             -   247
        Investment revaluations, (gains) losses on sales, and impairments   48 38 7 75         168   18 95 (14) 74        173   1
        Restructuring     - - - 22           22   92 (26) (2) 60        124   32
        Impairments and loss on sale of operations in Russia     - 361 - -         361   - - 16 -          16   -
        Veoneer AS transaction costs     - - - -             -   - 22 - -          22   -
        Impairments     - - 12 12           24   - - - -             -   -
        Net losses on the sale of business     - - - 57           57   - - - -             -   -
        Adjustments to Deferred Tax Valuation Allowance [i]   (29) - - -         (29)   - - - (47)         (47)   -
                                      -
    Adjusted net income attributable to Magna International Inc.     393         253         317         270      1,233   329         441         419         383     1,572   311
                                       
    The following table reconciles diluted earnings (loss) per common share to Adjusted diluted earnings per common share:                
              2022   2023   2024
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q
                                       
    Diluted earnings (loss) per common share      $    1.22  $  (0.54)  $    1.00  $    0.33  $    2.03    $   0.73  $    1.18  $    1.37  $    0.95  $   4.23    $   0.03
      Exclude:                              
        Amortization of acquired intangible assets     0.04        0.03        0.03        0.03 0.13   0.04        0.04        0.09        0.09 0.25   0.08
        Impairments and restructuring related to Fisker Inc. [“Fisker”]     -            -              -              -   -   -            -              -              -   -   0.86
        Investment revaluations, (gains) losses on sales, and impairments   0.16        0.13        0.03        0.26 0.58   0.07        0.33      (0.06)        0.25 0.60   -
        Restructuring     -            -              -          0.08 0.08   0.31      (0.09)            -          0.20 0.43   0.11
        Impairments and loss on sale of operations in Russia     -        1.24            -              -   1.24   -            -          0.06            -   0.06   -
        Veoneer AS transaction costs     -            -              -              -   -   -        0.08            -              -   0.08   -
        Impairments     -            -          0.04        0.04 0.08   -            -              -              -   -   -
        Net losses on the sale of business     -            -              -          0.20 0.20   -            -              -              -   -   -
        Adjustments to Deferred Tax Valuation Allowance [i]   (0.10)            -              -              -   (0.10)   -            -              -        (0.16) (0.16)   -
                                       
    Adjusted diluted earnings per common share       $    1.32  $    0.87  $    1.10  $    0.94  $    4.24    $   1.15  $    1.54  $    1.46  $    1.33  $   5.49    $   1.08
     
    [i] Adjustments to Deferred Tax Valuation Allowance                              
    The Company records quarterly adjustments to the valuation allowance against its deferred tax assets in continents like North America, Europe, Asia, and South America. The net effect of these adjustments is a reduction to income expense.

 

 Page 6 of 7 

 

Note 3: SEGMENTED INFORMATION                              
     
              2022   2023   2024
              1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q 2nd Q 3rd Q 4th Q TOTAL   1st Q
    Body Exteriors & Structures               
      Sales     4,077 3,947 3,976 4,004 16,004   4,439 4,540 4,354 4,178 17,511   4,429
      Adjusted EBIT     231 194 227 200 852   272 394 358 280 1,304   298
      Adjusted EBIT as a percentage of sales     5.7% 4.9% 5.7% 5.0% 5.3%   6.1% 8.7% 8.2% 6.7% 7.4%   6.7%
                                       
    Power & Vision                              
      Sales     3,046 2,888 2,911 3,016 11,861   3,323 3,462 3,745 3,775 14,305   3,842
      Adjusted EBIT     163 99 124 116 502   92 124 221 231 668   98
      Adjusted EBIT as a percentage of sales     5.4% 3.4% 4.3% 3.8% 4.2%   2.8% 3.6% 5.9% 6.1% 4.7%   2.6%
                                       
    Seating Systems                              
      Sales     1,376 1,253 1,295 1,345 5,269   1,486 1,603 1,529 1,429 6,047   1,455
      Adjusted EBIT     50 3 37 14 104   37 67 70 44 218   52
      Adjusted EBIT as a percentage of sales     3.6% 0.2% 2.9% 1.0% 2.0%   2.5% 4.2% 4.6% 3.1% 3.6%   3.6%
                                       
    Complete Vehicles                              
      Sales     1,275 1,403 1,213 1,330 5,221   1,626 1,526 1,185 1,201 5,538   1,383
      Adjusted EBIT     50 63 65 57 235   52 34 (5) 43 124   27
      Adjusted EBIT as a percentage of sales     3.9% 4.5% 5.4% 4.3% 4.5%   3.2% 2.2% -0.4% 3.6% 2.2%   2.0%
                                       
    Corporate and other                              
      Intercompany eliminations     (132) (129) (127) (127) (515)   (201) (149) (125) (129) (604)   (139)
      Adjusted EBIT     25 11 (1) (20) 15   (4) (3) (29) (40) (76)   (6)
                                       
    Total                                
      Sales     9,642 9,362 9,268 9,568 37,840   10,673 10,982 10,688 10,454 42,797   10,970
      Adjusted EBIT     519 370 452 367 1,708   449 616 615 558 2,238   469
      Adjusted EBIT as a percentage of sales     5.4% 4.0% 4.9% 3.8% 4.5%   4.2% 5.6% 5.8% 5.3% 5.2%   4.3%

 

 

 

 

 

 

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