Automotive Industry Perspective

Scott Paradise

August 7, 2017

Vice President

The supplier industry is worth $1 TrillionMagna’s global ranking is #3Our sales exceed $36 Billion

MagnaProductAreas

SEATING EXTERIORS VISION SYSTEMSCLOSURES

BODY & CHASSIS POWERTRAIN ELECTRONICS

COMPLETE VEHICLE ASSEMBLY

Market Overview

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5

Transition from Mature Markets to Emerging Markets IntensifiesGlobal Production Growth

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Assessing the Market Portfolio review– Cycle check– Goals– Risk profile– Timeframe– Demand– Capabilities– Technology

Risk mitigation– Customer base– Diversification– Hedging

Action plan– Assess– Diagnose– Execute

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8

10

12

14

16

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1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Mill

ions

NA Production

Recession

We are here

NA Light Vehicle Production

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7

North American Light Vehicle Production by Country

2016 – 2024

-362,000CAGR = -2.0%

+1,046,000 CAGR = 3.3%

10.1

11.511.812.0

-504,000CAGR = -0.5%

11.2

Production Outlook

The world is changing.The consumer is changing.

Electrification

New Mobility

AutonomousDriving

Electrification

ICE62%

Microhybrid34%

PHEV3%

EV1%

2016

ICE31%

Microhybrid35%

Mildhybrid21%

PHEV10-12%

EV3-6%

2025

Electrification Take Rate – 2025

AutonomousDriving

Disclosure or duplication without consent is prohibited*Indicates Level 0-5, all other take rates are only Level 0-4

Level 017%

Level 124%

Level 237%

Level 318%

Level 44%

Autonomy Take Rate –2025

Benefits of autonomy:• Greater road safety• Independence for some• More efficient travel • Reduced congestion

New Mobility

Source: IHS

Miles Driven Globally 2016-2030

NAFTA Modernization Magna is:

– A global supplier– Flexible with its business practices – Responsive to changing business climates– A supporter of free trade and ability to openly compete in global

marketplace

Our Position • No country of origin content minimum within the NAFTA rule

of origin• No Region Value Content (RVC) percent increases to the

specific product rules of origin (60-62.5%). – If a change - 65%

• No addition of input materials or parts to the trace list – Specifically electronics, steel and/or aluminum

Our Position • Increase deMinimis from 7% to 10%• Allow R & D and engineering costs to be included as part of

the RVC calculation• Harmonize safety and environmental regulatory

requirements• Motor Vehicle Safety Standards accepted by all NAFTA

countries• Improve Temporary entry for business persons