Magna International (MGA) 6-K Current report (foreign)

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			2nd Q			3rd Q			TOTAL
VEHICLE VOLUME STATISTICS (in millions)
North America			3.615			3.551			3.600			3.514			14.280			3.884			4.080			3.930			3.718			15.612			4.019			4.126			3.688			11.833
Europe			3.962			3.981			3.560			4.168			15.671			4.618			4.637			3.838			4.410			17.503			4.422			4.305			3.761			12.488
China			6.361			5.485			7.229			7.260			26.335			5.940			6.803			7.628			8.877			29.248			6.455			7.192			7.165			20.812
Other			6.384			6.145			6.709			6.873			26.111			6.970			6.729			6.998			7.147			27.844			6.591			6.646			6.795			20.032
Global			20.322			19.162			21.098			21.815			82.397			21.412			22.249			22.394			24.152			90.207			21.487			22.269			21.409			65.165
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			0.019			0.016			0.057
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			0.731			0.733			0.735
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			1.076			1.099			1.087
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			0.138			0.140			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			4,465			4,038			12,932
Power & Vision			3,046			2,888			2,911			3,016			11,861			3,323			3,462			3,745			3,775			14,305			3,842			3,926			3,837			11,605
Seating Systems			1,376			1,253			1,295			1,345			5,269			1,486			1,603			1,529			1,429			6,047			1,455			1,455			1,379			4,289
Complete Vehicles			1,275			1,403			1,213			1,330			5,221			1,626			1,526			1,185			1,201			5,538			1,383			1,242			1,159			3,784
Corporate & Other			(132	)		(129	)		(127	)		(127	)		(515	)		(201	)		(149	)		(125	)		(129	)		(604	)		(139	)		(130	)		(133	)		(402	)
Sales			9,642			9,362			9,268			9,568			37,840			10,673			10,982			10,688			10,454			42,797			10,970			10,958			10,280			32,208
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			9,494			8,828			27,964
Selling, general and administrative			386			410			387			477			1,660			488			505			491			566			2,050			516			523			487			1,526
Equity income			(20	)		(25	)		(27	)		(17	)		(89	)		(33	)		(36	)		(40	)		(3	)		(112	)		(34	)		(9	)		(13	)		(56	)
Adjusted EBITDA			876			718			782			705			3,081			802			969			973			930			3,674			846			950			978			2,774
Depreciation			357			348			330			338			1,373			353			353			358			372			1,436			377			373			384			1,134
Adjusted EBIT			519			370			452			367			1,708			449			616			615			558			2,238			469			577			594			1,640
Amortization of acquired intangible assets			12			12			11			11			46			12			13			32			31			88			28			28			28			84
Other expense (income), net	1		61			426			23			193			703			142			86			(4	)		164			388			356			68			(188	)		236
Interest expense, net			26			20			18			17			81			20			34			49			53			156			51			54			54			159
Income (loss) from operations before income taxes			420			(88	)		400			146			878			275			483			538			310			1,606			34			427			700			1,161
Income tax expense			41			57			104			35			237			58			129			121			12			320			8			99			192			299
Net income (loss)			379			(145	)		296			111			641			217			354			417			298			1,286			26			328			508			862
Income attributable to non-controlling interests			(15	)		(11	)		(7	)		(16	)		(49	)		(8	)		(15	)		(23	)		(27	)		(73	)		(17	)		(15	)		(24	)		(56	)
Net income (loss) attributable to Magna International Inc.			364			(156	)		289			95			592			209			339			394			271			1,213			9			313			484			806
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		$	1.09		$	1.68		$	2.81
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			287.3			287.3			287.2
NON-GAAP MEASURES
Adjusted EBITDA			876			718			782			705			3,081			802			969			973			930			3,674			846			950			978			2,774
Adjusted EBIT	2		519			370			452			367			1,708			449			616			615			558			2,238			469			577			594			1,640
Adjusted net income attributable to Magna International Inc.	2		393			253			317			270			1,233			329			441			419			383			1,572			311			389			369			1,069
Adjusted Diluted earnings per common share	2	$	1.32		$	0.87		$	1.10		$	0.94		$	4.24		$	1.15		$	1.54		$	1.46		$	1.33		$	5.49		$	1.08		$	1.35		$	1.28		$	3.72
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	%		4.8	%		4.7	%		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	%		5.3	%		5.8	%		5.1	%
Income (loss) from operations before income taxes /Sales			4.4	%		-0.9	%		4.3	%		1.5	%		2.3	%		2.6	%		4.4	%		5.0	%		3.0	%		3.8	%		0.3	%		3.9	%		6.8	%		3.6	%
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	%		23.2	%		27.4	%		25.8	%
Excluding Other expense (income) and amortization, net of taxes and valuation allowance adjustments			17.2	%		24.6	%		25.3	%		18.3	%		21.2	%		21.4	%		21.6	%		21.9	%		18.8	%		21.0	%		21.5	%		22.8	%		27.2	%		24.0	%

Q3 2024 Financial Review of Magna International Inc. Page 1 of 8 Prepared as at 10/31/24

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		2nd Q		3rd 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		8,219		8,377
Inventories	4,258		4,064		4,108		4,180		4,421		4,664		4,751		4,606		4,511		4,466		4,592
Prepaid expenses and other	310		262		269		320		367		455		387		352		399		314		303
	11,574		11,090		11,459		11,291		12,747		13,675		13,615		12,839		13,289		12,999		13,272
Current liabilities:
Accounts payable	6,845		6,443		6,624		6,999		7,731		7,984		7,911		7,842		7,855		7,639		7,608
Accrued salaries and wages	879		766		810		850		822		858		900		912		883		862		962
Other accrued liabilities	2,123		2,096		1,986		2,118		2,526		2,637		2,537		2,626		2,728		2,650		2,642
Income taxes payable (receivable)	190		136		97		93		9		(14	)	33		125		132		79		176
	10,037		9,441		9,517		10,060		11,088		11,465		11,381		11,505		11,598		11,230		11,388
Working capital	1,537		1,649		1,942		1,231		1,659		2,210		2,234		1,334		1,691		1,769		1,884
Investments	1,487		1,375		1,323		1,429		1,390		1,287		1,311		1,273		1,195		1,161		1,165
Fixed assets, net	8,090		7,723		7,470		8,173		8,304		8,646		8,778		9,618		9,545		9,623		9,836
Goodwill, other assets and intangible assets	3,544		3,353		3,280		3,576		3,640		4,733		4,726		4,962		4,646		4,709		4,865
Operating lease right-of-use assets	1,667		1,587		1,545		1,595		1,638		1,667		1,696		1,744		1,733		1,688		1,780
Funds employed	16,325		15,687		15,560		16,004		16,631		18,543		18,745		18,931		18,810		18,950		19,530
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	)	(999	)	(1,061	)
Short-term borrowings	-		-		-		8		4		150		2		511		838		848		828
Long-term debt due within one year	127		105		95		654		668		1,426		1,398		819		824		65		65
Long-term debt	3,501		3,408		3,325		2,847		4,500		4,159		4,135		4,175		4,549		4,863		4,916
Current portion of operating lease liabilities	276		270		266		276		285		303		384		399		306		306		319
Operating lease liabilities	1,369		1,294		1,254		1,288		1,318		1,345		1,289		1,319		1,407		1,378		1,458
	3,277		3,413		3,838		3,839		4,346		6,102		6,186		6,025		6,407		6,461		6,525
Long-term employee benefit liabilities	686		651		617		548		563		579		564		591		584		564		571
Other long-term liabilities	374		390		397		461		451		448		453		475		471		507		339
Deferred tax assets, net	(51	)	(111	)	(138	)	(179	)	(218	)	(242	)	(210	)	(437	)	(576	)	(592	)	(592	)
	1,009		930		876		830		796		785		807		629		479		479		318
Shareholders' equity	12,039		11,344		10,846		11,335		11,489		11,656		11,752		12,277		11,924		12,010		12,687
	16,325		15,687		15,560		16,004		16,631		18,543		18,745		18,931		18,810		18,950		19,530
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		67.5		73.3
Days in accounts payable	73.3		70.2		73.4		75.0		73.9		75.3		76.9		78.8		73.3		72.4		77.6
Inventory turnover - cost of goods sold	7.9		8.1		7.9		8.0		8.5		8.2		7.8		7.8		8.5		8.5		7.7
Working capital turnover	25.1		22.7		19.1		31.1		25.7		19.9		19.1		31.3		25.9		24.8		21.8
Total asset turnover	2.4		2.4		2.4		2.4		2.6		2.4		2.3		2.2		2.3		2.3		2.1
CAPITAL STRUCTURE
Straight debt	20.1	%	21.8	%	24.7	%	24.0	%	26.1	%	32.9	%	33.0	%	31.8	%	34.1	%	34.1	%	33.4	%
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	%	2.5	%	1.6	%
Shareholders' equity	73.7	%	72.3	%	69.7	%	70.8	%	69.1	%	62.9	%	62.7	%	64.9	%	63.4	%	63.4	%	65.0	%
	100.0	%	100.0	%	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	%	38.3	%	37.4	%
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	%	13.0	%	12.0	%
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	%	9.4	%	9.0	%

Q3 2024 Financial Review of Magna International Inc. Page 2 of 8 Prepared as at 10/31/24

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(United States dollars in millions) (Unaudited)

		2022										2023											2024
	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
Cash provided from (used for):
Operating activities
Net income (loss)		379		(145	)	296		111		641		217		354			417		298		1,286		26		328		508		862
Items not involving current cash flows		370		705		295		406		1,776		351		525			404		362		1,642		565		353		277		1,195
		749		560		591		517		2,417		568		879			821		660		2,928		591		681		785		2,057
Changes in operating assets and liabilities		(569	)	(139	)	(353	)	739		(322	)	(341	)	(332	)		(24	)	918		221		(330	)	55		(58	)	(333	)
Cash provided from operating activities		180		421		238		1,256		2,095		227		547			797		1,578		3,149		261		736		727		1,724
Investment activities
Fixed asset additions		(238	)	(329	)	(364	)	(750	)	(1,681	)	(424	)	(502	)		(630	)	(944	)	(2,500	)	(493	)	(500	)	(476	)	(1,469	)
Increase in investments, other assets and intangible assets		(64	)	(80	)	(125	)	(186	)	(455	)	(101	)	(96	)		(176	)	(189	)	(562	)	(125	)	(170	)	(115	)	(410	)
Net cash inflow (outflow) from disposal of facilities	1(e), 1(g)	6		-		-		-		6		(25	)	-			(23	)	-		(48	)	4		-		78		82
(Decrease) increase in public and private equity investments		(2	)	(2	)	(25	)	-		(29	)	-		(3	)		(7	)	(1	)	(11	)	(23	)	2		(1	)	(22	)
Proceeds from disposition		23		40		41		20		124		19		44			32		27		122		87		57		38		182
Business combinations		-		-		-		(3	)	(3	)	-		(1,475	)		-		(29	)	(1,504	)	(30	)	(56	)	-		(86	)
Cash used for investment activities		(275	)	(371	)	(473	)	(919	)	(2,038	)	(531	)	(2,032	)		(804	)	(1,136	)	(4,503	)	(580	)	(667	)	(476	)	(1,723	)
Financing activities
Net issues (repayments) of debt		(328	)	(31	)	(10	)	(22	)	(391	)	1,636		544			(135	)	(119	)	1,926		757		(416	)	(47	)	294
Common Shares issued on exercise of stock options		4		-		1		3		8		6		-			8		6		20		30		-		-		30
Repurchase of Common Shares		(383	)	(212	)	(180	)	(5	)	(780	)	(9	)	(2	)		-		(2	)	(13	)	(3	)	(2	)	-		(5	)
Tax withholdings on vesting of equity awards		(14	)	(1	)	-		-		(15	)	(9	)	(1	)		-		(1	)	(11	)	(4	)	(1	)	-		(5	)
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	)	-		(26	)	(10	)	(36	)
Dividends paid		(133	)	(130	)	(125	)	(126	)	(514	)	(132	)	(129	)		(128	)	(133	)	(522	)	(134	)	(134	)	(138	)	(406	)
Cash provided from (used for) financing activities		(854	)	(381	)	(324	)	(174	)	(1,733	)	1,485		388			(273	)	(263	)	1,337		646		(579	)	(195	)	(128	)
Effect of exchange rate changes on cash and cash equivalents		(3	)	(1	)	(3	)	(31	)	(38	)	14		(51	)		21		(3	)	(19	)	(8	)	(8	)	6		(10	)
Net (decrease) increase in cash and cash equivalents, during the period		(952	)	(332	)	(562	)	132		(1,714	)	1,195		(1,148	)		(259	)	176		(36	)	319		(518	)	62		(137	)
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		1,517		999		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		999		1,061		1,061

Q3 2024 Financial Review of Magna International Inc. Page 3 of 8 Prepared as at 10/31/24

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	2nd Q		3rd Q		TOTAL
Impacts related to Fisker Inc. [“Fisker”]	[a]	-	-	-	-	-	-	-		-		-	-	316	19		(189	)	146
Restructuring activities	[b]	-	-	-	22	22	118	(35	)	(1	)	66	148	38	55		-		93
Investment revaluations, (gains) losses on sales, and impairments	[c]	61	50	9	101	221	24	98		(19	)	98	201	2	3		1		6
Gain on business combination	[d]	-	-	-	-	-	-	-		-		-	-	-	(9	)	-		(9	)
Impairments and loss on sale of operations in Russia	[e]	-	376	-	-	376	-	-		16		-	16	-	-		-		-
Veoneer AS transaction costs	[f]	-	-	-	-	-	-	23		-		-	23	-	-		-		-
Loss on sale of business	[g]	-	-	-	58	58	-	-		-		-	-	-	-		-		-
Impairments	[h]	-	-	14	12	26	-	-		-		-	-	-	-		-		-
		61	426	23	193	703	142	86		(4	)	164	388	356	68		(188	)	236

[a] Impacts related to Fisker Inc. [“Fisker”]

During 2024, Fisker filed for Chapter 11 bankruptcy protection in the United States and for similar protection in Austria. In connection with this, the Company recorded impairment charges on its Fisker related assets during the year, as well as restructuring charges in the first quarter of 2024. In the course of such bankruptcy proceedings, the Company terminated its manufacturing agreement for the Fisker Ocean SUV during the third quarter of 2024, as a result of which the Company recognized $196 million of previously deferred revenue related to its Fisker warrants.

Impairment of Fisker related assets:

During the first quarter of 2024, the Company recorded a $261 million impairment charge on its Fisker related assets including production receivables, inventory, fixed assets and other capitalized expenditures. In connection with purchase obligations and supplier settlements related to the Fisker program, the Company recorded an additional $19 million of charges in the second quarter of 2024, and $7 million of charges in the third quarter of 2024. For the nine months ended September 30, 2024, impairment charges totaled $287 million [$225 million after tax] on the Company's Fisker related assets.

Impairment of Fisker warrants and recognition of related deferred revenue:

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 were marked to market each quarter. During the first quarter of 2024, Magna recorded a $33 million [$25 million after tax] impairment charge on these warrants reducing the value of the warrants to nil. When the warrants were issued and the vesting provisions realized, the Company recorded offsetting amounts to deferred revenue within other accrued liabilities and other long-term liabilities. Portions of this deferred revenue were recognized in income as performance obligations were satisfied. During the third quarter of 2024, the agreement for manufacturing of the Fisker Ocean SUV was terminated, and the Company recognized the remaining $196 million of previously deferred revenue in income. Relevant bankruptcy protection laws had prevented the earlier termination of the agreement and the recognition of the related deferred revenue by the Company.

Restructuring:

In the first quarter of 2024, the Company recorded additional restructuring charges of $22 million in its Complete Vehicles segment in connection with its Fisker related assembly operations.

Q3 2024 Financial Review of Magna International Inc. Page 4 of 8 Prepared as at 10/31/24

[b] Restructuring activities

	2022					2023							2024
	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	-	-	-	22	22	105	(44	)	(1	)	57	117	-	55	-	55
Complete Vehicles	-	-	-	-	-	-	-		-		-	-	26	-	-	26
Body Exteriors & Structures	-	-	-	-	-	13	9		-		9	31	12	-	-	12
	-	-	-	22	22	118	(35	)	(1	)	66	148	38	55	-	93

During the second quarter of 2024, the Company recorded $35 million of restructuring charges associated with its acquisition of the Veoneer Active Safety Business [“Veoneer AS”], and $20 million of restructuring charges related to plant closures in its Power & Vision Segment. 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. 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.

[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] Gain on business combination

During the second quarter of 2024, the Company acquired a business in the Body Exteriors & Structures segment for $5 million, resulting in a bargain purchase gain of $9 million.

[e] 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.

[f] Veoneer AS transaction costs

During 2023, the Company incurred $23 million of transaction costs related to the acquisition of the Veoneer Active Safety Business.

[g] 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.

[h] Impairments

	2022					2023					2024
	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	-	-	10	12	22	-	-	-	-	-	-	-	-	-
Power & Vision	-	-	4	-	4	-	-	-	-	-	-	-	-	-
	-	-	14	12	26	-	-	-	-	-	-	-	-	-

Q3 2024 Financial Review of Magna International Inc. Page 5 of 8 Prepared as at 10/31/24

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.

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	2nd Q	3rd Q		TOTAL
Income (loss) from operations before income taxes	420	(88	)	400	146	878	275	483	538		310	1,606	34	427	700		1,161
Exclude:
Amortization of acquired intangible assets	12	12		11	11	46	12	13	32		31	88	28	28	28		84
Other expense (income), net	61	426		23	193	703	142	86	(4	)	164	388	356	68	(188	)	236
Interest expense, net	26	20		18	17	81	20	34	49		53	156	51	54	54		159
Adjusted EBIT	519	370		452	367	1,708	449	616	615		558	2,238	469	577	594		1,640

The following table shows 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		2nd Q		3rd Q
Net income (loss)	379		(145	)	296		111		217		354		417		298		26		328		508
Add (deduct):
Interest expense, net	26		20		18		17		20		34		49		53		51		54		54
Amortization of acquired intangible assets	12		12		11		11		12		13		32		31		28		28		28
Other expense (income), net	61		426		23		193		142		86		(4	)	164		356		68		(188	)
Tax effect on Interest expense, net, Amortization of acquired intangible assets and Other expense, net	(19	)	(34	)	(11	)	(32	)	(38	)	(4	)	(14	)	(46	)	(93	)	(32	)	30
Adjustments to Deferred Tax Valuation Allowances	(29	)	-		-		-		-		-		-		(47	)	-		-		-
Adjusted After-tax operating profits	430		279		337		300		353		483		480		453		368		446		432
Total Assets	28,822		27,283		26,667		27,789		30,654		31,837		31,675		32,255		32,678		31,986		32,790
Excluding:
Cash and cash equivalents	(1,996	)	(1,664	)	(1,102	)	(1,234	)	(2,429	)	(1,281	)	(1,022	)	(1,198	)	(1,517	)	(999	)	(1,061	)
Deferred tax assets	(464	)	(491	)	(488	)	(491	)	(506	)	(535	)	(527	)	(621	)	(753	)	(807	)	(811	)
Less Current Liabilities	(10,440	)	(9,816	)	(9,878	)	(10,998	)	(12,045	)	(13,358	)	(13,165	)	(13,234	)	(13,566	)	(12,449	)	(12,600	)
Excluding:
Short-term borrowing	-		-		-		8		4		150		2		511		838		848		828
Long-term debt due within one year	127		105		95		654		668		1,426		1,398		819		824		65		65
Current portion of operating lease liabilities	276		270		266		276		285		303		384		399		306		306		319
Invested Capital	16,325		15,687		15,560		16,004		16,631		18,542		18,745		18,931		18,810		18,950		19,530
Adjusted After-tax operating profits	430		279		337		300		353		483		480		453		368		446		432
Average Invested Capital	16,185		16,006		15,624		15,782		16,318		17,587		18,644		18,838		18,871		18,880		19,240
Adjusted Return on Invested Capital	10.6	%	7.0	%	8.6	%	7.6	%	8.7	%	11.0	%	10.3	%	9.6	%	7.8	%	9.4	%	9.0	%

Q3 2024 Financial Review of Magna International Inc. Page 6 of 8 Prepared as at 10/31/24

Note 2: NON-GAAP MEASURES (Continued)

The following table shows 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			2nd Q			3rd Q
Net income (loss) attributable to Magna International Inc.		364			(156	)		289			95			209			339			394			271			9			313			484
Add (deduct):
Amortization of acquired intangible assets		12			12			11			11			12			13			32			31			28			28			28
Other expense (income), net		61			426			23			193			142			86			(4	)		164			356			68			(188	)
Tax effect on Amortization of acquired intangible assets and Other expense, net		(15	)		(29	)		(6	)		(29	)		(34	)		3			(3	)		(36	)		(82	)		(20	)		45
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			389			369
Average Shareholder's Equity		11,599			11,692			11,095			11,091			11,412			11,573			11,704			12,015			12,101			11,967			12,349
Adjusted Return on Equity		13.6	%		8.7	%		11.4	%		9.7	%		11.5	%		15.2	%		14.3	%		12.8	%		10.3	%		13.0	%		12.0	%

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		2nd Q			3rd Q			TOTAL
Net income (loss) attributable to Magna International Inc.			364			(156	)		289		95		592			209		339			394			271			1,213			9		313			484			806
Exclude:
Amortization of acquired intangible assets			10			10			9		9		38			10		11			25			25			71			22		23			22			67
Impacts related to Fisker Inc. [“Fisker”]			-			-			-		-		-			-		-			-			-			-			247		15			(140	)		122
Investment revaluations, (gains) losses on sales, and impairments			48			38			7		75		168			18		95			(14	)		74			173			1		2			3			6
Restructuring activities			-			-			-		22		22			92		(26	)		(2	)		60			124			32		45			-			77
Gain on business combination			-			-			-		-		-			-		-			-			-			-			-		(9	)		-			(9	)
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		389			369			1,069

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		2nd Q			3rd Q			TOTAL
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		1.09			1.68		$	2.81
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		0.08			0.08			0.23
Impacts related to Fisker Inc. [“Fisker”]			-			-			-		-		-			-		-			-			-			-			0.86		0.05			(0.49	)		0.42
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			-		0.01			0.01			0.02
Restructuring activities			-			-			-		0.08		0.08			0.31		(0.09	)		-			0.20			0.43			0.11		0.15			-			0.27
Gain on business combination			-			-			-		-		-			-		-			-			-			-			-		(0.03	)		-			(0.03	)
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	$	1.35		$	1.28		$	3.72

[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 tax expense.

Q3 2024 Financial Review of Magna International Inc. Page 7 of 8 Prepared as at 10/31/24

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		2nd Q		3rd Q		TOTAL
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		4,465		4,038		12,932
Adjusted EBIT		231		194		227		200		852		272		394		358		280		1,304		298		341		273		912
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	%	7.6	%	6.8	%	7.1	%
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		3,926		3,837		11,605
Adjusted EBIT		163		99		124		116		502		92		124		221		231		668		98		198		279		575
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	%	5.0	%	7.3	%	5.0	%
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		1,455		1,379		4,289
Adjusted EBIT		50		3		37		14		104		37		67		70		44		218		52		53		51		156
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	%	3.6	%	3.7	%	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		1,242		1,159		3,784
Adjusted EBIT		50		63		65		57		235		52		34		(5	)	43		124		27		20		27		74
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	%	1.6	%	2.3	%	2.0	%
Corporate and other
Intercompany eliminations		(132	)	(129	)	(127	)	(127	)	(515	)	(201	)	(149	)	(125	)	(129	)	(604	)	(139	)	(130	)	(133	)	(402	)
Adjusted EBIT		25		11		(1	)	(20	)	15		(4	)	(3	)	(29	)	(40	)	(76	)	(6	)	(35	)	(36	)	(77	)
Total
Sales		9,642		9,362		9,268		9,568		37,840		10,673		10,982		10,688		10,454		42,797		10,970		10,958		10,280		32,208
Adjusted EBIT		519		370		452		367		1,708		449		616		615		558		2,238		469		577		594		1,640
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	%	5.3	%	5.8	%	5.1	%

Q3 2024 Financial Review of Magna International Inc. Page 8 of 8 Prepared as at 10/31/24