Exhibit 99
FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC. | ||||||||||||||||||||
(United States dollars in millions, except per share figures) (Unaudited) | ||||||||||||||||||||
Prepared in accordance with U.S. GAAP | ||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||
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 American vehicle volumes (including Mexico) | 4.227 | 4.249 | 3.909 | 3.912 | 16.297 | 3.777 | 1.240 | 3.946 | 4.040 | 13.003 | 3.773 | |||||||||
European vehicle volumes: | ||||||||||||||||||||
Western Europe | 3.720 | 3.614 | 2.999 | 3.285 | 13.618 | 2.893 | 1.166 | 2.599 | 3.390 | 10.048 | 3.082 | |||||||||
Eastern Europe | 2.013 | 2.063 | 1.672 | 1.987 | 7.735 | 1.795 | 0.913 | 1.663 | 1.990 | 6.361 | 1.841 | |||||||||
Total Europe | 5.733 | 5.677 | 4.671 | 5.272 | 21.353 | 4.688 | 2.079 | 4.262 | 5.380 | 16.409 | 4.923 | |||||||||
Asia volumes | 11.875 | 11.151 | 10.950 | 13.066 | 47.042 | 8.146 | 8.489 | 10.913 | 13.750 | 41.298 | 11.082 | |||||||||
China volumes | 6.024 | 5.484 | 5.632 | 7.420 | 24.560 | 3.227 | 5.828 | 6.266 | 8.158 | 23.479 | 6.027 | |||||||||
Magna Steyr vehicle assembly volumes | 0.046 | 0.043 | 0.035 | 0.034 | 0.158 | 0.031 | 0.017 | 0.027 | 0.035 | 0.110 | 0.040 | |||||||||
AVERAGE FOREIGN EXCHANGE RATES | ||||||||||||||||||||
1 Canadian dollar equals U.S. dollars | 0.752 | 0.748 | 0.757 | 0.758 | 0.754 | 0.745 | 0.722 | 0.751 | 0.767 | 0.746 | 0.790 | |||||||||
1 Euro equals U.S. dollars | 1.135 | 1.124 | 1.112 | 1.107 | 1.119 | 1.102 | 1.101 | 1.170 | 1.192 | 1.141 | 1.205 | |||||||||
1 Chinese renminbi equals U.S. dollars | 0.148 | 0.147 | 0.142 | 0.142 | 0.145 | 0.143 | 0.141 | 0.145 | 0.151 | 0.145 | 0.154 | |||||||||
CONSOLIDATED STATEMENTS OF INCOME (LOSS) | ||||||||||||||||||||
Sales | 10,591 | 10,126 | 9,319 | 9,395 | 39,431 | 8,657 | 4,293 | 9,129 | 10,568 | 32,647 | 10,179 | |||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of goods sold | 9,164 | 8,710 | 8,063 | 8,085 | 34,022 | 7,567 | 4,206 | 7,681 | 8,753 | 28,207 | 8,662 | |||||||||
Selling, general and administrative | 421 | 453 | 400 | 423 | 1,697 | 381 | 378 | 380 | 448 | 1,587 | 430 | |||||||||
Equity income | (35) | (48) | (37) | (58) | (178) | (30) | (25) | (44) | (90) | (189) | (47) | |||||||||
EBITDA | 2 | 1,041 | 1,011 | 893 | 945 | 3,890 | 739 | (266) | 1,112 | 1,457 | 3,042 | 1,134 | ||||||||
Depreciation and amortization | 321 | 334 | 335 | 355 | 1,345 | 336 | 334 | 334 | 362 | 1,366 | 364 | |||||||||
EBIT | 3 | 720 | 677 | 558 | 590 | 2,545 | 403 | (600) | 778 | 1,095 | 1,676 | 770 | ||||||||
Interest expense, net | 31 | 14 | 18 | 19 | 82 | 17 | 21 | 26 | 22 | 86 | 23 | |||||||||
Operating income (loss) | 2 | 689 | 663 | 540 | 571 | 2,463 | 386 | (621) | 752 | 1,073 | 1,590 | 747 | ||||||||
Other expense (income), net | 2 | (679) | 68 | 859 | (8) | 240 | - | 168 | 316 | 100 | 584 | (58) | ||||||||
Income (loss) from operations before income taxes | 1,368 | 595 | (319) | 579 | 2,223 | 386 | (789) | 436 | 973 | 1,006 | 805 | |||||||||
Income tax expense (benefit) | 267 | 145 | 45 | 134 | 591 | 134 | (137) | 109 | 223 | 329 | 183 | |||||||||
Net income (loss) | 1,101 | 450 | (364) | 445 | 1,632 | 252 | (652) | 327 | 750 | 677 | 622 | |||||||||
(Income) loss attributable to non-controlling interests | 2 | 5 | 2 | 131 | (5) | 133 | 9 | 5 | 78 | (12) | 80 | (7) | ||||||||
Net income (loss) attributable to Magna International Inc. | 1,106 | 452 | (233) | 440 | 1,765 | 261 | (647) | 405 | 738 | 757 | 615 | |||||||||
Adjusted net income (loss) attributable to Magna International Inc. | 2 | 531 | 509 | 438 | 433 | 1,911 | 261 | (511) | 585 | 851 | 1,186 | 566 | ||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||
Diluted | $ 3.39 | $ 1.42 | $ (0.75) | $ 1.43 | $ 5.59 | $ 0.86 | $ (2.17) | $ 1.35 | $ 2.45 | $ 2.52 | $ 2.03 | |||||||||
Adjusted Diluted | $ 1.63 | $ 1.59 | $ 1.41 | $ 1.41 | $ 6.05 | $ 0.86 | $ (1.71) | $ 1.95 | $ 2.83 | $ 3.95 | $ 1.86 | |||||||||
Weighted average number of Common Shares outstanding | ||||||||||||||||||||
during the year (in millions): | 326.3 | 319.5 | 310.7 | 306.3 | 315.8 | 302.7 | 298.4 | 299.4 | 300.9 | 300.4 | 303.6 | |||||||||
PROFITABILITY RATIOS | ||||||||||||||||||||
Selling, general and administrative /Sales | 4.0% | 4.5% | 4.3% | 4.5% | 4.3% | 4.4% | 8.8% | 4.2% | 4.2% | 4.9% | 4.2% | |||||||||
EBITDA /Sales | 9.8% | 10.0% | 9.6% | 10.1% | 9.9% | 8.5% | -6.2% | 12.2% | 13.8% | 9.3% | 11.1% | |||||||||
EBIT /Sales | 6.8% | 6.7% | 6.0% | 6.3% | 6.5% | 4.7% | -14.0% | 8.5% | 10.4% | 5.1% | 7.6% | |||||||||
Operating income(loss) /Sales | 6.5% | 6.5% | 5.8% | 6.1% | 6.2% | 4.5% | -14.5% | 8.2% | 10.2% | 4.9% | 7.3% | |||||||||
Effective tax rate | ||||||||||||||||||||
Reported | 19.5% | 24.4% | -14.1% | 23.1% | 26.6% | 34.7% | 17.4% | 25.0% | 22.9% | 32.7% | 22.7% | |||||||||
Excluding Other expense (income), net of taxes | 23.7% | 23.5% | 19.6% | 23.3% | 22.7% | 34.7% | 16.9% | 22.6% | 19.6% | 25.7% | 23.3% |
Page 1 of 6 |
FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC. | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
(United States dollars in millions) (Unaudited) | ||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||
Note | 1st Q | 2nd Q | 3rd Q | 4th Q | 1st Q | 2nd Q | 3rd Q | 4th Q | 1st Q | |||||||||||
ASSETS | [Note 1] | |||||||||||||||||||
Current assets: | ||||||||||||||||||||
Accounts receivable | 7,446 | 7,204 | 7,068 | 5,927 | 5,684 | 5,253 | 6,618 | 6,394 | 7,176 | |||||||||||
Inventories | 3,501 | 3,521 | 3,457 | 3,304 | 3,531 | 3,503 | 3,509 | 3,444 | 3,645 | |||||||||||
Prepaid expenses and other | 275 | 278 | 211 | 238 | 234 | 303 | 265 | 260 | 290 | |||||||||||
11,222 | 11,003 | 10,736 | 9,469 | 9,449 | 9,059 | 10,392 | 10,098 | 11,111 | ||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable and other accruals | 9,347 | 9,048 | 8,757 | 8,198 | 8,381 | 6,992 | 8,905 | 9,373 | 10,091 | |||||||||||
Working capital | 1,875 | 1,955 | 1,979 | 1,271 | 1,068 | 2,067 | 1,487 | 725 | 1,020 | |||||||||||
Investments | 2,408 | 2,334 | 1,430 | 1,210 | 1,336 | 1,336 | 1,143 | 947 | 960 | |||||||||||
Fixed assets, net | 7,958 | 8,109 | 7,943 | 8,260 | 7,948 | 7,860 | 7,898 | 8,475 | 8,305 | |||||||||||
Goodwill, other assets and intangible assets | 3,487 | 3,593 | 3,461 | 3,456 | 3,340 | 3,362 | 3,423 | 3,539 | 3,614 | |||||||||||
Operating lease right-of-use assets | 1,716 | 1,744 | 1,702 | 1,811 | 1,788 | 1,777 | 1,787 | 1,906 | 1,869 | |||||||||||
Funds employed | 17,444 | 17,735 | 16,515 | 16,008 | 15,480 | 16,402 | 15,738 | 15,592 | 15,768 | |||||||||||
FINANCING | ||||||||||||||||||||
Straight debt: | ||||||||||||||||||||
Cash and cash equivalents | (925) | (563) | (769) | (1,276) | (1,146) | (533) | (1,498) | (3,268) | (3,464) | |||||||||||
Short-term borrowings | 335 | 199 | 436 | - | - | 188 | - | - | - | |||||||||||
Long-term debt due within one year | 122 | 112 | 104 | 106 | 93 | 150 | 98 | 129 | 137 | |||||||||||
Long-term debt | 3,062 | 3,071 | 3,021 | 3,062 | 3,021 | 3,771 | 3,832 | 3,973 | 3,935 | |||||||||||
Current portion of operating lease liabilities | 176 | 214 | 218 | 225 | 218 | 221 | 226 | 241 | 244 | |||||||||||
Operating lease liabilities | 1,566 | 1,544 | 1,527 | 1,601 | 1,586 | 1,577 | 1,582 | 1,656 | 1,613 | |||||||||||
4,336 | 4,577 | 4,537 | 3,718 | 3,772 | 5,374 | 4,240 | 2,731 | 2,465 | ||||||||||||
Long-term employee benefit liabilities | 598 | 606 | 584 | 677 | 659 | 675 | 696 | 729 | 733 | |||||||||||
Other long-term liabilities | 396 | 404 | 388 | 371 | 420 | 390 | 305 | 332 | 414 | |||||||||||
Deferred tax liabilities, net | 167 | 196 | 133 | 111 | 87 | 10 | 87 | 80 | 104 | |||||||||||
1,161 | 1,206 | 1,105 | 1,159 | 1,166 | 1,075 | 1,088 | 1,141 | 1,251 | ||||||||||||
Shareholders' equity | 11,947 | 11,952 | 10,873 | 11,131 | 10,542 | 9,953 | 10,410 | 11,720 | 12,052 | |||||||||||
17,444 | 17,735 | 16,515 | 16,008 | 15,480 | 16,402 | 15,738 | 15,592 | 15,768 | ||||||||||||
ASSET UTILIZATION RATIOS | ||||||||||||||||||||
Days in accounts receivable | 63.3 | 64.0 | 68.3 | 56.8 | 59.1 | 110.1 | 65.2 | 54.5 | 63.4 | |||||||||||
Days in accounts payable | 91.8 | 93.5 | 97.7 | 91.3 | 99.7 | 149.6 | 104.3 | 96.4 | 104.8 | |||||||||||
Inventory turnover - cost of sales | 10.5 | 9.9 | 9.3 | 9.8 | 8.6 | 4.8 | 8.8 | 10.2 | 9.5 | |||||||||||
Working capital turnover | 22.6 | 20.7 | 18.8 | 29.6 | 32.4 | 8.3 | 24.6 | 58.3 | 39.9 | |||||||||||
Total asset turnover | 2.4 | 2.3 | 2.3 | 2.3 | 2.2 | 1.0 | 2.3 | 2.7 | 2.6 | |||||||||||
CAPITAL STRUCTURE | ||||||||||||||||||||
Straight debt | 24.9% | 25.8% | 27.5% | 23.2% | 24.4% | 32.8% | 26.9% | 17.5% | 15.6% | |||||||||||
Long-term employee benefit liabilities, other long-term | ||||||||||||||||||||
liabilities & deferred tax liabilities, net | 6.6% | 6.8% | 6.7% | 7.2% | 7.5% | 6.6% | 6.9% | 7.3% | 7.9% | |||||||||||
Shareholders' equity | 68.5% | 67.4% | 65.8% | 69.5% | 68.1% | 60.7% | 66.1% | 75.2% | 76.4% | |||||||||||
100.0% | 100.0% | 100.0% | 100.0% | 100.1% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||||||||
Debt to total capitalization | 30.6% | 30.1% | 32.8% | 31.0% | 31.8% | 37.2% | 35.5% | 33.9% | 33.0% | |||||||||||
Adjusted Debt to Adjusted EBITDA | 2 | 1.18x | 1.18x | 1.26x | 1.23x | 1.30x | 2.30x | 2.07x | 1.84x | 1.63x | ||||||||||
ANNUALIZED RETURNS | ||||||||||||||||||||
Return on assets (EBIT/assets employed) | 16.5% | 15.3% | 13.5% | 14.7% | 10.4% | -14.6% | 19.8% | 28.1% | 19.5% | |||||||||||
Return on equity (Net income attributable to Magna | ||||||||||||||||||||
International Inc. / Average shareholders' equity) | 38.3% | 15.1% | -8.2% | 16.0% | 9.6% | -25.3% | 15.9% | 26.7% | 20.7% | |||||||||||
Adjusted Return on equity (Adjusted Net income attributable | ||||||||||||||||||||
to Magna International Inc. / Average shareholders' equity) | 18.4% | 17.0% | 15.4% | 15.7% | 9.6% | -19.9% | 23.0% | 30.8% | 19.0% | |||||||||||
Page 2 of 6 |
FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC. | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(United States dollars in millions) (Unaudited) | ||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||
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) | 1,101 | 450 | (364) | 445 | 1,632 | 252 | (652) | 327 | 750 | 677 | 622 | |||||||||
Items not involving current cash flows | (213) | 470 | 1,210 | 509 | 1,976 | 363 | 354 | 767 | 581 | 2,065 | 411 | |||||||||
888 | 920 | 846 | 954 | 3,608 | 615 | (298) | 1,094 | 1,331 | 2,742 | 1,033 | ||||||||||
Changes in operating assets and liabilities | (294) | - | (96) | 742 | 352 | 24 | (934) | 518 | 928 | 536 | (372) | |||||||||
Cash provided from (used for) operating activities | 594 | 920 | 750 | 1,696 | 3,960 | 639 | (1,232) | 1,612 | 2,259 | 3,278 | 661 | |||||||||
Investment activities | ||||||||||||||||||||
Fixed asset additions | (251) | (328) | (349) | (513) | (1,441) | (203) | (169) | (213) | (560) | (1,145) | (212) | |||||||||
Increase in investments, other assets and intangible assets | (77) | (102) | (83) | (122) | (384) | (93) | (72) | (68) | (98) | (331) | (104) | |||||||||
Increase in private equity investments | (5) | (5) | - | - | (10) | (100) | (2) | (12) | (18) | (132) | (3) | |||||||||
Proceeds from disposition | 86 | 26 | 57 | 16 | 185 | 23 | 11 | 14 | 69 | 117 | 19 | |||||||||
Settlement of long-term receivable from non-consolidated joint venture | - | - | - | - | - | - | - | - | - | - | 50 | |||||||||
Proceeds from sale of (Investment in) Lyft, Inc. | - | - | 10 | 221 | 231 | - | - | - | - | - | - | |||||||||
Business combinations | - | (152) | - | 5 | (147) | (7) | - | - | 98 | 91 | 39 | |||||||||
Sale of Fluid Pressure & Controls Business ["FP&C"] | 1,129 | - | 3 | - | 1,132 | - | - | - | - | - | - | |||||||||
Cash (used for) provided from investment activities | 882 | (561) | (362) | (393) | (434) | (380) | (232) | (279) | (509) | (1,400) | (211) | |||||||||
Financing activities | ||||||||||||||||||||
Net issues (repayments) of debt | (855) | (187) | 251 | (435) | (1,226) | (6) | 962 | (246) | (27) | 683 | (126) | |||||||||
Common Shares issued on exercise of stock options | 8 | 6 | 19 | 11 | 44 | 1 | 1 | 15 | 64 | 81 | 83 | |||||||||
Repurchase of Common Shares | (284) | (409) | (342) | (254) | (1,289) | (201) | - | (2) | - | (203) | (162) | |||||||||
Tax withholdings on vesting of equity awards | (3) | (2) | - | (4) | (9) | (10) | - | - | (3) | (13) | (12) | |||||||||
Contributions to subsidiaries by non-controlling interests | 2 | - | 2 | - | 4 | - | - | - | 18 | 18 | - | |||||||||
Dividends paid to non-controlling interests | - | (13) | - | (9) | (22) | (3) | (3) | - | (12) | (18) | - | |||||||||
Dividends paid | (119) | (110) | (109) | (111) | (449) | (121) | (116) | (115) | (115) | (467) | (130) | |||||||||
Cash provided from (used for) financing activities | (1,251) | (715) | (179) | (802) | (2,947) | (340) | 844 | (348) | (75) | 81 | (347) | |||||||||
Effect of exchange rate changes on cash, cash equivalents | ||||||||||||||||||||
and restricted cash equivalents | 14 | (4) | (9) | 10 | 11 | (52) | 9 | (15) | 81 | 23 | (13) | |||||||||
Net increase (decrease) in cash, cash equivalents | ||||||||||||||||||||
and restricted cash equivalents during the period | 239 | (360) | 200 | 511 | 590 | (133) | (611) | 970 | 1,756 | 1,982 | 90 | |||||||||
Cash, cash equivalents and restricted cash equivalents, | ||||||||||||||||||||
beginning of period | 4 | 802 | 1,041 | 681 | 881 | 802 | 1,392 | 1,259 | 648 | 1,618 | 1,392 | 3,374 | ||||||||
Cash, cash equivalents and restricted cash equivalents, | ||||||||||||||||||||
end of period | 1,041 | 681 | 881 | 1,392 | 1,392 | 1,259 | 648 | 1,618 | 3,374 | 3,374 | 3,464 | |||||||||
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, 2020. | ||||||||||||||||||||
Note 1: | LEASES ADOPTION | |||||||||||||||||||
On January 1, 2019, the Company adopted ASC 842, Leases using the modified retrospective transition approach, without restatement of comparative periods' financial information. The adoption requires the Company to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets. | ||||||||||||||||||||
Note 2: | 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: | ||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||
1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | ||||||||||
Impairments and loss on sale of equity-accounted investments | [a] | - | - | 700 | - | 700 | - | - | 337 | 10 | 347 | - | ||||||||
Restructuring and impairments | [b] | 14 | 7 | 34 | 3 | 58 | - | 168 | - | 101 | 269 | 15 | ||||||||
Net (gains) losses on investments | [c] | (177) | 67 | 127 | (11) | 6 | - | - | (21) | (11) | (32) | (33) | ||||||||
Gain on business combinations | [d] | - | - | - | - | - | - | - | - | - | - | (40) | ||||||||
Gain on the sale of business | [e] | (516) | (6) | (2) | - | (524) | - | - | - | - | - | - | ||||||||
(679) | 68 | 859 | (8) | 240 | - | 168 | 316 | 100 | 584 | (58) | ||||||||||
[a] | Impairments and loss on sale of equity-accounted investments | |||||||||||||||||||
In the fourth quarter of 2020, the Company recorded a $ 10 million loss in Power & Vision on the sale of its 50% interest in Dongfeng Getrag Transmission Co. Ltd. In Power & Vision, during the third quarter of 2020, the Company recorded impairment charge of $337 million on investment. In Power & Vision, during the third quarter of 2019, the Company recorded $700 million impairment on its equity accounted investment. | ||||||||||||||||||||
[b] | Restructuring and impairments | |||||||||||||||||||
COVID-19 Restructuring and Impairments: [i] | 2019 | 2020 | 2021 | |||||||||||||||||
1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | ||||||||||
Power & Vision | - | - | - | - | - | - | 115 | - | - | 115 | - | |||||||||
Body Exteriors & Structures | - | - | - | - | - | - | 37 | - | - | 37 | - | |||||||||
Seating Systems | - | - | - | - | - | - | 16 | - | - | 16 | - | |||||||||
- | - | - | - | - | - | 168 | - | - | 168 | - | ||||||||||
Restructuring: | 2019 | 2020 | 2021 | |||||||||||||||||
1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | ||||||||||
Power & Vision | - | - | - | - | - | - | - | - | - | - | 15 | |||||||||
Body Exteriors & Structures | 14 | 7 | 7 | 3 | 31 | - | - | - | 21 | 21 | - | |||||||||
14 | 7 | 7 | 3 | 31 | - | - | - | 21 | 21 | 15 | ||||||||||
Impairments: | 2019 | 2020 | 2021 | |||||||||||||||||
1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | ||||||||||
Power & Vision | - | - | 27 | - | 27 | - | - | - | - | - | - | |||||||||
Body Exteriors & Structures | - | - | - | - | - | - | - | - | 57 | 57 | - | |||||||||
- | ��- | 27 | - | 27 | - | - | - | 57 | 57 | - | ||||||||||
Brazil Closures: [ii] | 2019 | 2020 | 2021 | |||||||||||||||||
1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | ||||||||||
Body Exteriors & Structures | - | - | - | - | - | - | - | - | 8 | 8 | - | |||||||||
Seating Systems | - | - | - | - | - | - | - | - | 15 | 15 | - | |||||||||
- | - | - | - | - | - | - | - | 23 | 23 | - | ||||||||||
[i] | In response to the impact that COVID-19 was expected to have on vehicle production volumes over the short to medium term, the Company initiated and/or accelerated the timing of restructuring plans to right-size its business. These restructuring actions include plant closures and workforce reductions. | |||||||||||||||||||
[ii] | In connection with the recently announced plant closures by Ford Motor Co. in Brazil, the Company made the decision to accelerate the [closure/restructuring] of two facilities in Brazil that supply these plants. | |||||||||||||||||||
Page 4 of 6 |
[c] | Net (gains) losses on investments | |||||||||||||||||||
In Corporate, during the first quarter of 2021, the Company recorded a $33 million gain, related to the revaluation of its private equity investments and certain public company warrants. In Corporate, during the third and fourth quarter of 2020, the Company remeasured its private equity investments at fair value resulting in a $21 million and $13 million gain, respectively. In additions, the Company recorded a non-cash impairment charge of $2 million on its private equity investment in Corporate. In Corporate, during the first, second, third and fourth quarters of 2019, the Company recorded gains of $177 million, net losses of $67 million, net losses of $127 million, and net gains of $11 million respectively, substantially related to the revaluation of its investment in Lyft, Inc. | ||||||||||||||||||||
[d] | 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. | ||||||||||||||||||||
[e] | Gain on the sale of business | |||||||||||||||||||
In Power & Vision, during the first quarter of 2019, the Company recorded a gain on the sale of its Fluid Pressure & Controls ["FP&C"] business of $516 million. In the second and third quarters of 2019, the Company recorded an increase in the gain on sale of $6 million and $2 million, respectively, as a result of finalizing the proceeds relating to working capital. | ||||||||||||||||||||
The following table reconciles Net (loss) income attributable to Magna International Inc. to Adjusted net income attributable to Magna International Inc.: | ||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||
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. | 1,106 | 452 | (233) | 440 | 1,765 | 261 | (647) | 405 | 738 | 757 | 615 | |||||||||
Exclude: | ||||||||||||||||||||
Impairments and loss on sale of equity-accounted investments [f] | - | - | 537 | - | 537 | - | - | 200 | 19 | 219 | - | |||||||||
Restructuring and impairments | 14 | 7 | 27 | 3 | 51 | - | 136 | - | 101 | 237 | 15 | |||||||||
Net (gains) losses on investments | (151) | 57 | 109 | (10) | 5 | - | - | (20) | (7) | (27) | (24) | |||||||||
Gain on business combinations | - | - | - | - | - | - | - | - | - | - | (40) | |||||||||
Gain on the sale of business | (438) | (7) | (2) | - | (447) | - | - | - | - | - | - | |||||||||
- | ||||||||||||||||||||
Adjusted net income (loss) attributable to Magna International Inc. | 531 | 509 | 438 | 433 | 1,911 | 261 | (511) | 585 | 851 | 1,186 | 566 | |||||||||
Diluted earnings (loss) per share | $ 3.39 | $ 1.42 | $ (0.75) | $ 1.43 | $ 5.59 | $ 0.86 | $ (2.17) | $ 1.35 | $ 2.45 | $ 2.52 | $ 2.03 | |||||||||
Exclude: | ||||||||||||||||||||
Impairments and loss on sale of equity-accounted investments [f] | - | - | 1.74 | - | 1.70 | - | - | 0.67 | 0.06 | 0.73 | - | |||||||||
Restructuring and impairments | 0.04 | 0.02 | 0.08 | 0.01 | 0.16 | - | 0.46 | - | 0.34 | 0.79 | 0.05 | |||||||||
Net (gains) losses on investments | (0.46) | 0.17 | 0.35 | (0.03) | 0.02 | - | - | (0.07) | (0.02) | (0.09) | (0.08) | |||||||||
Gain on business combinations | - | - | - | - | - | - | - | - | - | - | (0.14) | |||||||||
Gain on the sale of business | (1.34) | (0.02) | (0.01) | - | (1.42) | - | - | - | - | - | - | |||||||||
Adjusted diluted earnings (loss) per share | $ 1.63 | $ 1.59 | $ 1.41 | $ 1.41 | $ 6.05 | $ 0.86 | $ (1.71) | $ 1.95 | $ 2.83 | $ 3.95 | $ 1.86 | |||||||||
[f] | Impairment charges | |||||||||||||||||||
Impairment charges relating to the Company's equity accounted investment for 2019 and 2020, include $127 million and $ 75 million, respectively, attributable to non-controlling interest. |
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Note 3: | SEGMENTED INFORMATION | |||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||
1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | ||||||||||
Body Exteriors & Structures | ||||||||||||||||||||
Sales | 4,308 | 4,243 | 3,984 | 3,923 | 16,458 | 3,676 | 1,623 | 3,858 | 4,393 | 13,550 | 4,025 | |||||||||
Adjusted EBIT | 363 | 341 | 306 | 289 | 1,299 | 199 | (315) | 390 | 543 | 817 | 327 | |||||||||
Adjusted EBIT as a percentage of sales | 8.4% | 8.0% | 7.7% | 7.4% | 7.9% | 5.4% | -19.4% | 10.1% | 12.4% | 6.0% | 8.1% | |||||||||
Power & Vision | ||||||||||||||||||||
Sales | 3,083 | 2,808 | 2,696 | 2,725 | 11,312 | 2,523 | 1,298 | 2,722 | 3,179 | 9,722 | 3,156 | |||||||||
Adjusted EBIT | 216 | 201 | 167 | 163 | 747 | 135 | (226) | 227 | 359 | 495 | 297 | |||||||||
Adjusted EBIT as a percentage of sales | 7.0% | 7.2% | 6.2% | 6.0% | 6.6% | 5.4% | -17.4% | 8.3% | 11.3% | 5.1% | 9.4% | |||||||||
Seating Systems | ||||||||||||||||||||
Sales | 1,433 | 1,452 | 1,266 | 1,426 | 5,577 | 1,261 | 524 | 1,280 | 1,390 | 4,455 | 1,303 | |||||||||
Adjusted EBIT | 94 | 83 | 56 | 79 | 312 | 40 | (84) | 66 | 85 | 107 | 55 | |||||||||
Adjusted EBIT as a percentage of sales | 6.6% | 5.7% | 4.4% | 5.5% | 5.6% | 3.2% | -16.0% | 5.2% | 6.1% | 2.4% | 4.2% | |||||||||
Complete Vehicles | ||||||||||||||||||||
Sales | 1,928 | 1,802 | 1,516 | 1,461 | 6,707 | 1,321 | 933 | 1,402 | 1,759 | 5,415 | 1,850 | |||||||||
Adjusted EBIT | 28 | 43 | 29 | 44 | 144 | 50 | 44 | 70 | 110 | 274 | 80 | |||||||||
Adjusted EBIT as a percentage of sales | 1.5% | 2.4% | 1.9% | 3.0% | 2.1% | 3.8% | 4.7% | 5.0% | 6.3% | 5.1% | 4.3% | |||||||||
Corporate and other | ||||||||||||||||||||
Intercompany fees | (161) | (179) | (143) | (140) | (623) | (124) | (85) | (133) | (153) | (495) | (155) | |||||||||
Adjusted EBIT | 19 | 9 | 0 | 15 | 43 | (21) | (19) | 25 | (2) | (17) | 11 | |||||||||
Total | ||||||||||||||||||||
Sales | 10,591 | 10,126 | 9,319 | 9,395 | 39,431 | 8,657 | 4,293 | 9,129 | 10,568 | 32,647 | 10,179 | |||||||||
Adjusted EBIT | 720 | 677 | 558 | 590 | 2,545 | 403 | (600) | 778 | 1,095 | 1,676 | 770 | |||||||||
Adjusted EBIT as a percentage of sales | 6.8% | 6.7% | 6.0% | 6.3% | 6.5% | 4.7% | -14.0% | 8.5% | 10.4% | 5.1% | 7.6% | |||||||||
Note 4: | 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: | ||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||
1st Q | 2nd Q | 3rd Q | 4th Q | 1st Q | 2nd Q | 3rd Q | 4th Q | 1st Q | ||||||||||||
Cash and cash equivalents | (925) | (563) | (769) | (1,276) | (1,146) | (533) | (1,498) | (3,268) | (3,464) | |||||||||||
Restricted cash equivalents included in prepaid expenses | (116) | (118) | (112) | (116) | (113) | (115) | (120) | (106) | - | |||||||||||
Total cash, cash equivalents and restricted cash equivalents | (1,041) | (681) | (881) | (1,392) | (1,259) | (648) | (1,618) | (3,374) | (3,464) |
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