Forward Looking Statements

Certain statements in this website and related quarterly results conference call constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements"). Any such forward-looking statements are intended to provide information about management's current expectations and plans and may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, strategic objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "aim", "forecast", "outlook", "project", "estimate", "target" and similar expressions suggesting future outcomes or events to identify forward-looking statements. The following table identifies the material forward-looking statements contained in this website and related quarterly results conference call, together with the material potential risks that we currently believe could cause actual results to differ materially from such forward-looking statements. Readers and listeners should also consider all of the risk factors which follow below the table:

Material Forward-Looking Statement Material Potential Risks Related to Applicable Forward-Looking Statement

Light Vehicle Production

  • Light vehicle sales levels
  • Production disruptions, including as a result of labour disruptions
  • Supply disruptions
  • Production allocation decisions by OEMs

Total Sales

Segment Sales

  • Same risks as for Light Vehicle Production above
  • The impact of elevated interest rates and availability of credit on consumer confidence and in turn vehicle sales and production
  • Potential supply disruptions
  • The impact of the Russian invasion of Ukraine on global economic growth and industry production volumes
  • The impact of rising interest rates and availability of credit on consumer confidence and, in turn, vehicle sales and production
  • The impact of deteriorating vehicle affordability on consumer demand, and in turn vehicle sales and production
  • Concentration of sales with six customers
  • Shifts in market shares among vehicles or vehicle segments
  • Shifts in consumer “take rates” for products we sell

Adjusted EBIT Margin

Potential Margin Expansion

Net Income Attributable to Magna

Target Leverage Ratio

  • Same risks as for Total Sales/Segment Sales above
  • Successful execution of critical program launches, including complete vehicle manufacturing of the Fisker Ocean SUV
  • Operational underperformance
  • Production inefficiencies in our operations due to volatile vehicle production allocation decisions by OEMs
  • Higher costs incurred to mitigate the risk of supply disruptions
  • Inflationary pressures
  • Our ability to secure cost recoveries from customers and/or otherwise offset higher input costs
  • Price concessions
  • Commodity cost volatility
  • Scrap steel price volatility
  • Higher labour costs
  • Tax risks

Equity Income

  • Same risks as Adjusted EBIT Margin/Potential Margin Expansion/Net Income Attributable to Magna/Target Leverage Ratio above
  • Risks related to conducting business through joint ventures

Free Cash Flow

  • Same risks as for Total Sales/Segment Sales and Adjusted EBIT Margin/Potential Margin Expansion/Net Income Attributable to Magna/Target Leverage Ratio above

Veoneer Active Safety Acquisition Benefits

  • Same risks as for Total Sales/Segment Sales above
  • Consumer adoption of ADAS features
  • Our ability to grow sales with new OEM entrants
  • Our ability to consistently develop and commercialize innovative products or processes
  • Intellectual property risks
  • Risks related to alignment of our product mix with the “Car of the Future”
  • Acquisition integration risk

Forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. While we believe we have a reasonable basis for making any such forward-looking statements, they are not a guarantee of future performance or outcomes. In addition to the factors in the table above, whether actual results and developments conform to our expectations and predictions is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation:

Macroeconomic, Geopolitical and Other Risks

  • impact of the Russian invasion of Ukraine;
  • inflationary pressures;
  • interest rate levels;
  • risks related to COVID-19;

Risks Related to the Automotive Industry

  • economic cyclicality;
  • regional production volume declines;
  • deteriorating vehicle affordability;
  • potential consumer hesitancy with respect to Electric Vehicles (“EVs”);
  • intense competition;

Strategic Risks

  • alignment of our product mix with the “Car of the Future”;
  • our ability to consistently develop and commercialize innovative products or processes;
  • our investments in mobility and technology companies;
  • our changing business risk profile as a result of increased investment in electrification and autonomous/assisted driving, including: higher R&D and engineering costs, and challenges in quoting for profitable returns on products for which we may not have significant quoting experience;

Customer- Related Risks

  • concentration of sales with six customers;
  • inability to significantly grow our business with Asian customers;
  • emergence of potentially disruptive EV OEMs, including risks related to limited revenues/operating history of new OEM entrants;
  • Evolving counterparty risk profile;
  • dependence on outsourcing;
  • OEM consolidation and cooperation;
  • shifts in market shares among vehicles or vehicle segments;
  • shifts in consumer "take rates" for products we sell;
  • quarterly sales fluctuations;
  • potential loss of any material purchase orders;
  • potential OEM production-related disruptions;

Supply Chain Risks

  • semiconductor chip supply disruptions and price increases, and the impact on customer production volumes and on the efficiency of our operations;
  • supply disruptions and applicable costs related to supply disruption mitigation initiatives;
  • regional energy shortages/disruptions and pricing;
  • a deterioration of the financial condition of our supply base;

Manufacturing/Operational Risks

  • product and new facility launch risks;
  • operational underperformance;
  • restructuring costs;
  • impairment charges;
  • labour disruptions;
  • skilled labour attraction/retention;
  • leadership expertise and succession;

IT Security/Cybersecurity Risk

  • IT/Cybersecurity breach;
  • product Cybersecurity breach;

Pricing Risks

  • pricing risks between time of quote and start of production;
  • price concessions;
  • commodity price volatility;
  • declines in scrap steel/aluminum prices;

Warranty / Recall Risks

  • costs related to repair or replacement of defective products, including due to a recall;
  • warranty or recall costs that exceed warranty provision or insurance coverage limits;
  • product liability claims;

Climate Change Risks

  • transition risks and physical risks;
  • strategic and other risks related to the transition to electromobility;

Acquisition Risks

  • competition for strategic acquisition targets;
  • inherent merger and acquisition risks;
  • acquisition integration risk;

Other Business Risks

  • risks related to conducting business through joint ventures;
  • intellectual property risks;
  • risks of conducting business in foreign markets;
  • fluctuations in relative currency values;
  • an increase in pension funding obligations;
  • tax risks;
  • reduced financial flexibility as a result of an economic shock;
  • inability to achieve future investment returns that equal or exceed past returns;
  • changes in credit ratings assigned to us;
  • the unpredictability of, and fluctuation in, the trading price of our Common Shares;
  • a reduction of suspension of our dividend;

Legal, Regulatory and Other Risks

  • antitrust risk;
  • legal claims and/or regulatory actions against us;
  • changes in laws and regulations, including those related to vehicle emissions, taxation, or made as a result of the COVID-19 pandemic.
  • potential restrictions on free trade;
  • trade disputes/tariffs; and
  • environmental compliance costs.

In evaluating forward-looking statements or forward-looking information, we caution readers and listeners not to place undue reliance on any forward-looking statement. Additionally, readers and listeners should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements, including the risks, assumptions and uncertainties above which are:

  • discussed under the “Industry Trends and Risks” heading of our Management’s Discussion and Analysis; and
  • set out in our revised Annual Information Form filed with securities commissions in Canada, our annual report on Form 40-F / 40-F/A filed with the United States Securities and Exchange commission, and subsequent filings.

Readers and listeners should also consider discussion of our risk mitigation activities with respect to certain risk factors, which can be also found in our Annual Information Form.