Magna International (MGA) 19 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Louis Tonelli	Vice President, Investor Relations
Swamy Kotagiri	Chief Executive Officer
Vince Galifi	Chief Financial Officer
John Murphy	Bank of America
Itay Michaeli	Citigroup
Chris McNally	Evercore ISI
Ryan Brinkman	JPMorgan
Mark Neville	Scotia Capital
Dan Levy	Credit Suisse
Peter Sklar	BMO Capital Markets
James Picariello	KeyBanc
Kevin Chiang	CIBC World Markets
Adam Jonas	Morgan Stanley

Call transcript

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Operator

Greetings and welcome to the Q4 2020 Results and 2021 Outlook Conference Call. [Operator Instructions] As a reminder, this conference is being recorded Friday, February 19, 2021. I would now like to turn the conference over to Mr. Louis Tonelli, VP, Investor Relations. Please go ahead, sir.

Louis Tonelli

Maria. Thanks, welcome as call our and results our our well as ‘XX to everyone covering conference XXXX Hello, outlook.

financial met Joining and me outlook. outlining approved We Directors this press our each Vince Kotagiri XXXX our and morning Galifi. Yesterday, issued well today our Board financial are as results for Swamy of release as a of these.

along all updated press webcast, section website the the to go You quarterly Relations call slide our and review conference will with release, find of call today’s at in the Investor magna.com. financial the presentation our

Before statements. cause the involve or statements we contain company’s results future the slide XXXX these those complete Please applicable to in our get to we reminder today’s forward-looking started, today information Such may description implied our just the legislation. today. certain will our as This actual materially or cover QX our morning, risks, of a forward-looking different and commentary performance meaning press from securities a also discussion and Safe reminder, assumptions of or Please statements and Harbor be the within disclaimer. deck which related may uncertainties, included release to for results. to highlights refer expressed in refer today’s

our provide with go-forward financial that, lastly, ‘XX strategy. then will Swamy. run We And over it I and outlook through to our will pass

Swamy Kotagiri

everyone. excited in be to morning am speaking of I good role new my especially and as you all Louis again, you, CEO. Thank with

am the that, our XXXX, relate life a think Today, outstanding in come know Having a rebound recap navigated number about our comment we half year, the and have results Before this second for prepare the said to years can had on COVID-XX, few me Don, When the way cover year. will has the the positioning and and me, for briefly all I we who been that a proud start, things to. I year of industry. mentor operations I which result extremely changing to we great of of smooth leader the like and I would XXXX, naturally through are thank been difficult and mind in each to succession I our transition. has of the pandemic first helping

going production are a today. of impacts to But been immune line, No the severe information has to hear are experienced bottom recover first You the able of of lot in half the in year. COVID, one industry the declines to including we quickly.

the quarter However, EBIT sales acceleration XXXX, production margin points. XX%, strong volumes of second started quarter. Relative recovery key leading expanded our and basis and by increased markets, in for end QX the across operating to QX the our XXX to very recover at performance the by adjusted to

and cash record to $X.X free of Our $X.XX we billion than a adjusted flow. more doubled EPS generated

year. also grew are in to who around dividend details the throughout our straight results performance, testament employees, our positive wanted challenging will the XXth the more I circumstances have of that We these for share our highlight midst executed year. but to a Vince

annually. our have accomplishments they and the midst amazed our also in focus In importance unprecedented lead of past And to savings recurring support to that XXXX, deliver sight our flawlessly be of been $XXX frontline continue communities. help top they employees’ our our stories and operational necessary our never We have this only but The and Magna and will our priority. volunteered consecutive resilience has have other the Fortune’s for of with the some workers near to of Admired above I to start beyond year supplies Not Companies PPE executed with years been of me. recognized challenges, a at to took pandemic four employees. Looking lose will on and year, has restructuring Most million to Awards. throughout Best we safe the went employees Keeping excellence. cost Employers of actions Forbe’s

Our facilities to pandemic. shutdown COVID-XX XXX of due managed ramp team over the up the also and

on recognition. customer excellence operational and innovation leads focus Our to

awards, year, supplier record we XX a last X to given most year. GM, single Just received the customer from any including recognition a ever one awards in

let growth. to me Now, turn my attention

result sales year-over-year. in Although declines strong sales vehicle the year the as we of second production, with full fell the half had recovery growing for large X% in a a of the year,

Asia. regions: managed and and fact, also in market outgrowth the of America, outgrow achieved to in North major XXXX X% We by each our Europe that in

Finally, innovation. I our to touch would on like

a We time continue advancements accelerate to products. collaboration best working innovative our market of minds the some expand with our technological companies, help for to with to growing of ecosystem in

trends have composite a Exteriors, our The Magna’s our the successes innovation despite Vince, customer last With I proprietary in our battery in News COVID are new wins PACE commitment I with years. technology our lift awards industry you. also earned off gate on marks award to and across examples R&D posed and pre-form Automotive continued X fourth point Award. and that, & Supra, solution, digital new maintained reinforcement program challenges These in We new aligned reflect Body of will spend. Seating. and our pass three to will space innovation our in how solutions by our Toyota Magna’s Power PACE XXXX vision Award which to the system from We it the in Vision, areas. frame debuted secular tray XXXX. business: the many in ClearView industry

Vince Galifi

outlook. and our do everyone shorter review, including our is allow for of COVID-XX. the declined quarterly good and our morning. XX% version a in on to am healthy. XXXX significantly segments more year. More impacted Sales time our I for was Thank to going you, of hope is included safe by course staying Swamy detail I appendix.

dramatic many tale that of in a for sales we we have posted on year. trend EBIT X% seen better the an impressive a XXXX ways our the margin. the than for continues two weighted was in for Magna However, halves. year, at the basis, performed X.X% adjusted considering And Magna many decline sales production This years.

was half severely the we since loss the pandemic. operating down second XX% Sales first The first XXXX. and were Recession posted Great in The our quarter, by of impacted

half steps return began reduce – company, However, structural as which set discretionary the took and in performance us set strong across well to helped to the the us a which costs we the year. as when up capital, for helped recover second of industry to

quarter. billion, the quarter. an X% represents of cover market $XX.X briefly me off over XXXX. fourth growth over the for the This sales Let quarter Total fourth billion of $X.X were increase weighted

program production were new impact of increased million Our the EBITDA translation, increased impacted sales. launches, Adjusted in the $X.X about higher by vehicle currency GM was negative strike XX% labor to tailwind assembly and $XXX positively which a at sales XXXX, billion.

lower year. $XXX percent mainly income income to and The adjusted Net attributable to partially ADAS to result to by higher improved EBIT Our million and for of our and our quarter the more increase diluted higher and of interest higher the Magna compared doubled EPS over last reflecting reflects $X.XX higher a and net fewer shares to record expense dollars last offset compared The million $X.XX increased outstanding. than X% to $XXX higher by increase as reflects mainly the in tax in exiting XXXX the our year. including EBIT, of income at performance, points expense increased better operational end sales, QX. Lyft EBIT basis a margin sales of XXXX. adjusted both pull-through partnership costs, the in margin of XXX segments generated XX.X% by GM over Each also on strike labor

billion $X.X cash the During quarter in other end largely of $XXX amounted last lower working of result than to higher of the at our than billion the restructuring increase as increased came and in expected fourth reflected cash compared XXXX, to XXXX This earnings collections as compared well accruals as flow anticipated last year. higher from year. $X.X and free capital Working a from customers earlier to capital. million

peers second Board of and X% dividend our And a in We capital in priority quarterly number a our more outlook. We share, working solid yesterday, when levels increase dividend a reflecting to our approved COVID Growing our prices our remains half cut of last to $X.XX XXXX expect strong the dividend the in Magna. during their at dividend. to maintained an XXXX. year’s see normal our return results

We will pass at I And dividends a getting over share it into per our to back have CAGR Swamy a now, increased XXXX. of few of the for outlook. XX% prior to going to specifics comments introductory

Swamy Kotagiri

further step at are this well we Before wanted take brief back will positioned and why will and and beyond, we event. into changes. for I to Magna we for investor what thoughts a unique the our April share go some makes industry on keep this because to look ahead today, XXXX I

model. business our with starts really story Our

product vehicles, the a different business compete, in are that company automaker to system-level is solutions our think three takes top way allows we and we approach While one where to the technology needs strategy easy-to-integrate pans all an scalable, building of meets optimize and our us modular most individual complete customer a player block that and with like the areas areas, configurations.

initiative. are generation in Additionally, and actions. disciplined deliberate world cash class our we through manufacturing our enhanced We

us in of We expertise in entrepreneurial comprises is people, past our and deep made the to innovation, exceed the drive in expectations. as by which the the growth Magna’s continue company, manufacturing particular, have consistently and calls. allows that DNA high heard invest possible areas performance in to our you customer culture

confidence and our to gives disciplined trends me with for capabilities competitive Linking enable position is our unique in execution unique the Our future. secular mobility approach Magna. together alignment what Magna’s in a

with electrification, a our while e-Powertrain the of also We continue the sharp portfolio to enhance the needs of continue on for On eye planet. mobility advance right to doing products. things we people

blocks growing with powertrain venture to allowing components. LG market to adds the participate building global our strengthen also joint in us fast Our while further for important position, electrified

business to has JV, range towards product the customers core this transition full Beyond our the EVs. along support

win awarded including on production offer We recently on portfolio stack models. across over our we is depth upcoming EVs expected Fisker to about In its were grow and full capabilities capabilities, complete of of XX% ADAS of content the the our to sales at the have On XXXX on year per systems. which our XX% ADAS average breadth complete we Ocean, period. addition, including vehicles, range demonstrating and on XXXX full capabilities, to autonomy, units expect EV by a all continues ADAS

develop pursuing continue to ADAS leverage are And mobility across actively lastly, and new opportunities ecosystems. create solutions. cutting-edge value new business to models to invest we We

electric with JV full a the is BJEV variants. first Our of four launching vehicle,

we Our in ongoing the the This snapshot collaboration full of is to industry. a ability support engineering and with of just well-positioned Fisker trends demonstrates systems, how secular a with vehicle to new take entrant our are manufacturing unique capabilities. advantage

gears XXXX. Now, to let’s shift business our for outlook talk about

emphasize to we want takes that really plan Vince I outlook. will is Before position through overall the in We details, the the our have our believe sector. leadership to about I allow you us a in that am message excited continue place

have our continues outlook. to are as of sales business in our grow and each expected you in to of should confidence over are expand our XX% Our already Margins booked. XXXX outlook

the We represented continue & annually recoveries Vision to in before megatrend Power our invest spend sales. engineering in XXXX in of about In segment, customer for $XXX future, about including X.X% areas. million the spend engineering

shareholders. Lastly, hand both Vince. from remains let invest capital our me should to and to to over flow it for forecast With free cash growth allow This generation strong. business return us that,

Vince Galifi

Swamy. again Thanks

and markets, the increased key below XXXX. shortage, With to experienced largest Europe, America production. regions Our in our in disruptions of from we In production outlook to at vehicle in North two our lows see XXXX each respect near-term remain OEM semiconductor the or levels volumes of XXXX. reflects

our going the assume a of any point, by dollar U.S. shortage average end XXXX, our forward. will expected be in recent to We outlook exchange sales relative positively this is This hits which reflects at approximate to XXXX. made However, rates. rates weaker up reported

going believe roll our I the will XXXX, for XXXX, full given As we provide our more start the some outlook, to I forward insight growth of drivers year a is starting outlook. which am I from unusual I consolidated with into will margins sales point. comparable going of of review nature

we comment simplify Before our structure $XXX we to on disposed joint actions a do, Dongfeng of three our year venture venture, joint its last controlling joint our briefly legal ventures. our In call XXXX, of in before than financial in sales me GETRAG which had China, the interest of let I we GJT. GETRAG the Jiangling, less with of and unconsolidated obtained interest which million end

entered into an joint for We dissolve venture Ford agreement our with also in based Europe. transmissions to GETRAG

in located joint As division we part assume of this venture transaction, one Bordeaux, of will France. the

consolidate to margins facility. and XXXX, sales sales a and both than lose average as results in margin and we impacts gain begin lower we As business Bordeaux result, the income. equity their of at will a our we the GJT This

to including We out high $XX to potentially average $XX.X our the across year a growth higher sales as venture of portfolio, and and GETRAG former of XX% driven acquisition expect consolidated on the the by new result consolidation Honglizhixin. per as content growth, production, vehicle to billion. the exchange technologies reaching XX% foreign is grow as of many The entities, XXXX, billion by joint

year. expected our In are growth in in JV an close over vehicle venture as few next to second manufacturing China addition, the expecting including our ventures as significant LG JV, sales well complete quarter this integrated we unconsolidated from joint from Bolt the joint e-drive years, e-Powertrain of base

in are GETRAG entities. to income. labor in ‘XX strike electrification benefits of equity trending costs initiatives and level the to costs, of at margin to to and normalized engineering our ADAS mobility, world to the XXXX. partially out more lower expected by benefits income expect restructuring We margin XXXX and higher Relative class be from again consolidation XXXX for manufacturing the offset GM new and license our then XXXX, and These consolidated engineering expand

driven expect relative income. license to for we higher to of We to offset margin the by and initiatives Early last range on XXXX. in equity a additional X.X% These X%. lower income be expected class XXXX by outlook year, expansion manufacturing provided are sales, benefits XXXX restructuring higher further and consolidated to world margin contribution

are driving expect XXXX lower through not a am despite XXXX to consolidated margins are factors detail. of In run of be we not we also time, I interest that impacting today, our out we range Many Europe higher to and segment and in still happy the say that While providing the to production sales that in outlook vehicle both the same will segment. are China.

our discuss the and any Big solid are we picture, of However, and to happy across appendix segments. they continued we them. margins are on expect in growth included sales all questions

to I Next, of strategy. would our the cover like financial highlights some of

liquidity by ‘XX ‘XX investment dispositions. internal approximately other want flow We capital to generation, We for volume and proceeds to shareholders. expected XX% should timeframe. cash spending XXXX, flow allocation capital, significant flows. discipline earnings. innovation capital spending have is return in next our increased relatively impact been uses X billion sheet, ratings. capital communicating and exercising consistent cash each of and over the reducing inorganic over response our over capital can anticipate the between years. projected to driven growth XX% years. account investment X strengths $X the from $X.X and for capital billion is to ample the years free considerable and maintain the strong strong to had Working we expect decline cash includes here operating XX% level to years. XXXX balance Net in want XX%. relative the at be to spending through cash you a principles to free a in $X.X excluding for consistent of Dividends on And represent several to After billion operating spending see, flow ongoing XXXX, high including and This working have of same spending, over to opportunities, past expect asset out the to XXXX. organic We with as We and invest with free grade flow cash next higher less we And along

for to increases balance to the of capacity the for and adding without debt expect this We EBITDA Together, any to share course, available leverage to and incremental future. investments growth. significant sheet additional repurchases provides XX% its be XX% capacity invest

hope our business, for and we in trends of future. of at to execute questions. summary, in more secular answer go many our where to and continue We investor We April unique is to now flow plan to Thanks generate expand free around the our the we be ability. So the to invest your our how cash strong strategy into see would aligned car event, unique or grow further happy detail plans attention. will your and to positioning on how margins, you for

Operator

the comes Please The America. from of Instructions] Bank line [Operator go of first question Murphy from John ahead.

John Murphy

Good doing morning, guys It’s congrats and on Swamy all a this along. great call. call

growth you in XX% with As GETRAG alluded at a the would the Vince have parts, is kind as like market with what we around other growth moving indicate midpoint not this of XX% look of Slide I moving to shifts sort X.X% just be market, doing about XX, and might But the JVs JVs. it CAGR thinking if above of is the looks of trying at there sort just be that am to parts correct but about that math. Vince? should the correct, we But some understand simple the quite lot above

Vince Galifi

Well, about one market. to give stripped and growth organic what to organic find acquisitions kind page is. just over sorry, I out trying am have that continued you or been growth Yes. we talking of FX –

So if that you have got handy. number

Louis Tonelli

Yes, us it to to X%. what’s about expectations you over weighted Yes. that complete at would which imply outgrowth that is there do. say in Yes, impacting being impacted – that ‘XX I period. I X% our outgrowth ‘XX some is look of And by some X% timeframe, vehicles, – of would if the

John Murphy

follow-up a parts bit Okay, this it that little different Yes, that’s some – helpful. are to on that must new make be that.

I a curious, on just there you and Vince, investments think about is you external are into just and smaller and this amount have really for is organic Obviously, allocation of with of as tremendous running due much I a XX, share investments focusing trying Second go that find this is when you there tech kind buybacks? expensive. SPAC boom, interest this investments, very have to good maybe lot the as out doing the and talking XX% making to companies are and incremental become diligence there from auto XX% am more your about Slide are here. capital curious question on repurchases. does valuations you you am of on preclude share and you higher

Vince Galifi

startups kind of increase little for we significant pretty Well, while, some the a last question of John, certainly that’s especially over in seen have valuation, way. these interesting some

Our system obviously, when there look the get XX% blocks the at say, to our really and XX% or there much invest And risk at And that to I It’s I sense if advantage. some across that? have the given the well, Fisker, at something can say We having maybe weighing have else you core and look organically. strategy shown you associated what’s Swamy with business. what’s that of the always out got invest changed and that’s engineering things when organically, we our we to solution completed, about to unique that’s can completed hasn’t of looking got capability, time newer add always to in think the technology, so brick-and-mortar. than are – financially. wanted are is a building capabilities. building real technologies makes own, There out that on developing John, complement cost, what’s a always already talk But a this do like you a investing this the some all my customer. to we try good all, still with said that at more complete just provide and And position company, I we that, would

help a continue as to areas, as I some look to John, are for – focus comments, is we transactions to goes – in on, of M&A megatrend organization. expect, focus are our about to to capabilities. Swamy big talked on we our time which the that look So transactions we at going continue his continue build

Swamy Kotagiri

past, And to technology to mining and are Swamy. Vince’s at institutions a the startups phase going Yes. of have work This process, for through future. our identify scanning And what research goes to it’s been early comments, able Good part talked just of the car important in we ways. we process, the universities, we our through morning, add of about John. both a as very we a is forward kind have symbiotic believe

with call viewpoint the bring, they startups. a have We the design are able on in through process, these scale we and of to early some tech very is And discipline, for manufacturing it, going. work where SPACs the as

address has of call the proliferated, it looking So not wait are also necessities That’s for way become we of the it future at that helped to tech, us car. kind for one of right. the how already to

John Murphy

Fisker I That’s classify however mentioned in on the vehicle, Okay. helpful. growing you higher just these of sales then segment curious that discussion, what want do over big And am segment you a complete in startups, higher you of in seems are that on product much engineering your just sales. said opportunity opportunities it, vehicle more getting is engineering become time there the part see lastly, there? you earnings there can vehicle margins. like carry as and just I spite you might complete of have complete am a of you curious to the are going kind to how

Swamy Kotagiri

at because to the the full together, we they the all which system I new when current of vehicle entrants a bring, capability together, overall think they manufacturing. systems design it look bringing John, we kind for come capability going at understanding interface at looking is customers from anybody that look as the even us, So the perspective, or is

vehicles sometimes of then that Fisker. the or of case initial as of engineering the leads step in it the Magna the the part both assembly of or systems And to of being it, towards the So, supplied time. is, the full conversations, most call

In of cases, capability enabler. In just as both. some some it’s think engineering. it is an engineering our we So, cases,

going it hand-in-hand. see we So

John Murphy

thank much. very Okay, you

Operator

Citigroup. from comes question from next of line Michaeli Our go ahead. Itay the Please

Itay Michaeli

Great, thanks. Good morning everyone congrats. and

over annualized margin revenue. in quarter, $XX XX.X% looks like billion the question, Just on strong just a fourth obviously, of it

bridge bridge prevent want to takes a maybe maybe comparable repeating just puts performance what of forth? the about making and the at going type talk forward, Maybe revenue would that level just from of go that ahead, you think the through you margin investments are of in of so future? we As and

Vince Galifi

run-rate good I what my will margin XXXX looked really you not Yes, kind the in the hey, that the basis look comments comparison I kind I tell in and you – of kind of is talked half the for at the of years. to about second were XXXX. EBIT organization, other I half, that margins XXXX at of a inside if my how try our head of does And to second were kind relate around wrap X%. of you look at margins

that two you of half. the things XX in I points margins in the programs first about of was to second what basis the run-rate XXXX. and half X.X% in of the impact sort off Just look government kind half support costs got the of recovery the to XXXX a that half. to There of just knock impacted – bunch normalize then because wasn’t When positively second had we our at guess second I full the significant year, in is

XX income did about less kind GDP reducing you adding that’s It’s and and basis and positive The at that’s look adding consolidation Magna about doing Bordeaux and when sales. our it’s basis the about run facility math through average points. with points. margins that, than impact the equity half, of the were you at the I second to we what joint ventures the to you XX are of is and talk

my run-rate the guidance, kind X% to below keep to XX%, XXXX. you in are of a XX% but we couple from your still our for of look things is perspective, of mind. gap there And back big a So at just

a at up year-end of there an half. is the small second look to there adjustment a of in here, there, accrual. a favorable items, settlement kind something amounts of kind You to bunch quite is bit an small over These add

that’s say, of, So, non-recurring. I kind would

If a was year. year could this win next money, you but some us think be a that about it, cost could it win that

for income business. venture. is half LG if entities. its the growing the investment lower of to second It’s are an exclude going it’s in expected a there we have of is versus equity One even about joint reasons XXXX XXXX are We And couple and we that.

to we accounted one which in got And going So near-term. the equity joint are investment our ventures losses is equity of impacts have we the mode some in income. there,

have all of kind and like we of volumes, ‘XX, So XXXX where Even drag of of income we to positive a income. the are for second look half. be able like Swamy to job half, relatively Touring Europe ‘XX, about they you margins. good in Steyr, on I higher versus going of did which mix, the that think on clamping the organization be we that to half you were be second that’s and half done one think second down cost. talking And But don’t second the in going higher that impacted China thing going we was are program XXXX a will is cadence compare I at considerably kind equity was negatively some XXXX. run it’s been ‘XX. realistic of assume be have to Magna on to to

some happen. of or We discretionary happen didn’t the to started reflect to and that some items have to travel happen expect start couldn’t

margin. help move to going that’s reduced some on cost So, a overall

So half we for XX% that’s of second to about how X.X% of kind kind roll XXXX. to from an XX% adjusted

Itay Michaeli

what a revenue the $XXX ADAS to that consistent of very it’s Is roughly the follow-up Appreciate that the XX%. still That’s XX Investor think of XX% all slide, quick side? with booking for seeing that bit an year last XXXX, or the little expecting a and are on Maybe you at improvement? the you is are you ADAS I Day talk about can Maybe I million on CAGR on color. Vince. sourcing helpful, think just

Vince Galifi

we references XXXX. to Itay, the ended again So the year

to $X talked we million CAGR in under range just about $XXX whatever billion there. takes XX% That ‘XX. us of run XXXX, out in So kind odd the about

get. we where I at we figures, were hit We of you thought of this at of planning I to here, kind look are we ahead if is going look be. it to think kind So plus. bookings going our that of business opportunity we what all had year,

that pretty have we in been the have making area business. been So with of that we progress one the pleased

Swamy Kotagiri

Yes.

just working as to has here. of the And before, building lot have system over of think, see of is and the LX+ Itay, my and that first the production. business XX% the LIDAR the LX, XX% also technology to comments are about advantage been also an we outlook on we as focus block us And I And our strategy believe radar period. I that we to in helped good grow I stay in keep in the expect leapfrog said almost we the comments, to leadership focused. said booked going bringing programs a solid-state is position a organization the We XXXX XXXX. on in cameras, that focused to booked sales CAGR it’s saying expected a

Itay Michaeli

everybody. great again That’s to Perfect. hear. Thanks

Operator

next from The from of comes Evercore ISI. question the line McNally Chris

open. Your line is

Chris McNally

margins. Thanks, Vince. am sure questions be there will the I in on strength some

pass we questions, auto And those. over So, twp could maybe tech. just Swamy, on

of for body we maybe content body but get light typical lot kind of of that per provide? money with solutions save was electric to the vehicles but per is options first maybe The to weighting $X,XXX if and per are attention, was the for take battery potential it really next-gen you body vehicle, through go body weighting doesn’t vehicle, some on a someone car, to content all costs, light curious able Magna could

Swamy Kotagiri

battery trajectory weighting, we Great the balancing One the talk that’s said, go right. it primarily battery was right. some increase morning be as a Chris. and about key driven down, obviously act to going reasons, light good of to Yes, past you like cost the the range questions. in continues the by When

they how on So value light to they premium weighting. spend want putting much on start

sure. of we had to those rate to of start the split different the and a materials at different The the side we it hot our that components look a and whether the the with variants was any and materials or XX-XX rails stamping, casting impacts some variables engine at new on stamping, rear tools when battery bottom. the that top hydroforming have ability market which the have that the look so design change if we of we at on The and structures put other that and second and weight see rail looking viewpoint. actually for us a reduce roll-forming, it like other the coming, or the a all toolbox of or of focus aluminum as light front vehicle you forth to the integrate and from XX-XX different, safety part shock so trays front weighting bit, BES in addressable would on forth, CG processes, would the the of I is have, that the for on to is process steel towers little the so from including close would But vehicle the and you floor looking battery the front the But are in or split, vehicle, to right. so to in also

is That significant two We trays. are from important customers. already to awards do battery We able the us. for have

growth opportunity for So that content a total. us will in be

look exteriors, sensor at call we are it lot a If looking of integration at you piece. our

process and advantages coming through. lot material is there a there of So,

are, govern processes can vehicle where have these light from without and but say, of the thing think is weighting so constraint important architectures are OEMs. flexibility would to different the I happens, it some weighting address of and will the So, amount whatever the , I different that of aspects the we light

Chris McNally

uptick on get almost numbers. extra could opportunity XX% of or Swamy, I I an mean, where push range or if is to because most it for various you light think a spending of products, I just I body is mean, across trying there but of know magnitude I it’s and cost, composites, magnitude, $X,XXX order of to sort the battery next-gen that some payback am just maybe the order just longer such lower in weighting XX% can EVs?

Swamy Kotagiri

Yes.

look it’s at at you a then on will going come sub-XXX way the Chris, XX% at site, is the of battery down that timeframe range, hot and would change. casting. usually the And it, some XXX is – If stamping whether good next in If what I what’s the or it’s processes already. in to in to happening ‘XX that, vehicle in equation look costs But visibility say, I will trend the look I structure forward. have we the ‘XX the if continue

Chris McNally

seen uptick Steyr, Perfect. and I big we [indiscernible]. margins just mean sort to And this one in question have of just then follow-on on

are ROIC new of lower it, that new happening to Is the press work are a call customers the start you plus? you for As willing book X% mid-teens where margins discussion of of much around a you negotiations are of forward, press, is X%, or business? companies larger this lots in that the working with new with to sort margin, at level

Vince Galifi

to the calculate selling how this guess are customer. be to Fisker of point, I is or is thing figure full the a got case at the to first contract value-added that a on In it contract. overall going value-added margins, margins you Chris, back vehicle we is a it’s out assumption, it you

on be to my it’s or out the capital at whether in look risk that stream kind of of of account From on it’s revenue perspective, whether on investment mix. focus the So, coming capital I the kind taken all has engineering return would profile into and in. dollars return putting

are we to are at actually on the customer. the for using getting bring but we and price, return kind margins, making margin the appropriate are into return appropriate of set We looking be investments but we the are back sure to looking an our we not value

it’s the little Magna a moving lot manufacturing, numbers or seen now we and couple Magna we in took thing up have there and have to what they class if about been has representative margins, talked that subject restructuring focus rather forward. have of margin going you XXXX where manufacturing going whether standpoint, and we and and got expect about talked we from One numbers our lower, right more of that think we to benefits that think go to I the ago. view margin a I on a at some engineering the a Steyr, about continue few were mix business we right the a I and But the of changes real and what it that a forward. have benefits been years, they of emphasize, in forward world that back you Steyr are on talked we years look going than the

Chris McNally

just any one would the often, more take if it I and mean of apologize, proactively And update trigger That’s pull I great. any but asked on I this update could. then sort I to there, it quite know we like the demand a is for set contracts build seems imagine takes thoughts? curious facility It Steyr? I couple of to customer any is the American updated size. Northern just the there I clearly am of if what

Vince Galifi

– no nothing really there. is update Yes. Chris,

measure mix comfortable it for will have going are with America we’ve taking in risk for be coming certainly, but with risk but mind, we and we startup, the do that like the able the generate. our investment make ago, us risk, are are new to that North know to in be to China, quantify I got capacity grew not some our we and business to returns did We to plant there. we capacity North of it’s there right to be and into kind We example America long in right the ready in it’s got – any be Europe,

Swamy Kotagiri

if to our in we what we of map, at manufacturing the per the it, just in year XXX,XXX there, business capacity depending add, units, Gran the think our mix there. flexibility China, have JV given and lower if done to of about in have has and look we number I we XXX,XXX a the start have we could about units in like road pipeline on And a in Yes. XXX,XXX facility team of you our with Coupe roughly of type

to be that. path I bunch level of non-painted decision or variables, add there that Obviously, is open to on as will a business, to So get and we forth would process. whether painted think it’s to is Chris, as appropriate there the so and an a long of so

Chris McNally

guys. really Thanks That’s encouraging.

Operator

Ryan the The next Brinkman of from question JPMorgan. comes line from

open. is line Your

Ryan Brinkman

or does or your competitors, be of commercial sense also we’ve one with that offer make at least, you Great, side your say battery you non-core? formal of up the capabilities complete e-drive consider detail discuss your on of LG that Would bit or Electronics? Could joint in JV don’t pretty have offerings competition? manufacturer closing I it would know, with thanks. How you tie seen more some relative system your venture sort e-drive as planned more to the to, you integrated the suite to following of is would batteries more much with electrification a now compare

Swamy Kotagiri

Yes, good morning, Ryan.

block thought started the strategy have as e-drive a in think our we following awarded overall HASCO of the about, systems, we the mentioned you system China ago in years building key which I talked and one launched other the just we and few the JV. process, was being one addressing two

And software are and increase in a pace. value the As there. important that believe it’s in to as we important look going the and place have stream, figured to of the e-motors with partner of that looked have, overall two our the at technology, overall we blocks excited it With that was really integration the we capability it. to we inverters the LG we part at the

already customers. having some with are We very conversations good

actually, systems four them. drive And Because our TAM evolving increases. the systems in with with the and as it looking of inverters progresses it some As doing overall is the know, EVs, towards but is component right? opportunity for the have addressable all-wheel we we to or of field moving motors LG, are customers you the today market drive some as as us, the increases address the – forward, side at in-house, wheel – overall of

as focus might point, time. believe on to a we perspective, specific in for been We’ll is our that we’re and continue this forward field technologies start From significant going a our how believe systems look share changing. we a I At with fair e-drive we area customers. really the a think good there So for fast long the this sale is position. getting leapfrog pretty always monitor, but will that’s we it’s

Vince Galifi

Yes.

‘XX, of base about from in we’re So to established it’s grow add next revenue I joint The have over expected $XXX an to the when think venture years. just venture the of joint million – over starting about revenue I not CAGR number does as XX% to and want zero. well,

So drive to business, be for as LG. and book as venture, the forces opportunities of as venture with already joint high, combining joint we the and look our able at we should the well ourselves

Swamy Kotagiri

Exactly.

Ryan Brinkman

have manufacture battery car. Thank there just you I manufacturers. vehicles electric to or And any some check Apple illusion to newer been might to Very start-up with lastly, regard in regarding your wanted with to earlier speculation ability potential you. helpful. just

of are any and and any non-BJEV call think I Of Fisker there China? your original others, on this check XXXX your XXX,XXX – first China? announced I in land you in in to press buy have spare when of expand course, Can us they’ll in the release capacity companies remind vehicles. just if you’ve wanted up give plant, that shown oftentimes the future. some them to capacity the mentioned optionality discussed that automakers including other around also interest, a plant, start-ups sometimes

too. here, case the be might that if curious Just

Swamy Kotagiri

Yes.

to new is platforms. for even position Magna. continue we our And have customers believe that unique with I various past, said a in Chris, have with think, entrants. I the we various And conversations on established

non-BJEV range said, to in in that at really opportunities about that China. XXX,XXX the capacity right our I we is cannot specifics we it so related we have come business are I about. JV but North in the about the we a volume, look Obviously, the spoke And can the Vince exciting talk in that with we do nothing of if openness and just in America, talk our terms flexibility but In capacity, can as can our China. case, footprint discussions, specific agreements

Ryan Brinkman

Great, thank you.

Operator

line question Capital. next Scotia from Neville the Our from Mark of comes

open. is line Your

Mark Neville

just Hey, good conversation margin. the first on the to quarter. morning just square Maybe guys. on, on the away Congrats

it, sort that explain difference, stuff items away is year call sort X.X%, us sort of X.X%, of the of is, or a next discrete the bunch sort that for understand, of doing? that. JVs, point starting you’re telling So you’re Is of sort like guide I the mix, of what

Vince Galifi

Yes.

X% good sorry, Mark. X%, the Sorry, morning, getting –

and X%, are that at you entities. I just that the items into support programs track getting X%, One each would the government just two I on account. take there And both say, is employee consolidation should the think the of So X.X. of

be of ‘XX kind and to I when And as minuses, the escalation through pluses XXXX. we there some compared into move look cost X.X%. we’re So

the I of one certain more going than it, things, restructuring XXXX second the would half continued big end kind to rate and to in a mean, really, ‘XX, volumes a regions, in of from picture part in the to the you in the when started right? of will well second ‘XX benefits, incremental pretty in That’s look about of to the it to more volumes, we’re at ‘XX, us run kind incremental we you think restructuring high kind By again I think so sorry, expecting had benefits pauses, is, that running impact of half. get of – in on that margin. small revenue tooling have XXXX. not I continue of expected we say, it benefit kind of is ‘XX. in did we’re XXXX, got a little just some program which are decremental the in time of be and an really we Tooling was A other and bunch

Mark Neville

that have would of much And benefit the second half seen you in restructuring?

Vince Galifi

throughout it QX. I’d we Probably from We in million, booked kind million benefits order a $XXX we $XXX QX. that is about some of mean, of of of that in of We is ‘XX saw the million – got I that about balance kind probably magnitude. in $XXX benefit kind some it. XX% restructuring have of a ‘XX, [indiscernible] quarter We talked about XXXX, and of did. about, of north and say, the of it would been in of

Mark Neville

Okay.

in I for of vehicle? of clear, years sort the the build CapEx discussion just CapEx complete any the that the On and, next contemplate vehicle for discussion, does to billion few complete guess, guidance be $X.X capacity roughly,

Vince Galifi

historically, our on. just capital so too, business. not I’m you, that being remind And depends of it always that of in program chunks we and that’s launches we’ve there’s on a one other our just we about odd but spending of of it big you investment capital part to the just tell investment going when But to and want specifically and production. invested and other capital, all can about business mention of a units. can I really is couple that to time. all – Yes. assets, talk Mark, tied kind I you in talk talked

$XXX pretty about those You in talking engineering engineering, Swamy has in are megatrend the about making ourselves million that, areas. we’re roughly position over in the investments We’ve time the business for But been can right? our been see that future. significant to talked growing

Mark Neville

just get Can I’m curious the when just ask one just on one Okay. buyback, just you market? – question, in I last back might

Vince Galifi

a question, It’s good Yes. Mark. really

did mix. kind cash, of to of you with end to adjusted the look debt end like pay lot in have it balance down got kind EBITDA – QX at our of it’s my I adjusted the we’ve From at and to liked more shouldn’t cash if a some at look you at have would So the debt can’t runs what the of end you all of up we X.X. than presentation and or to the sheet perspective, I year, there, of math

of to all the the kind my of X the I we’re sweet cash, our of surplus not cash spot, cash, that think year, of X.Xx in if running back end mind, at probably you that’s X.X. surplus turn

see to to, an opportunity this at from on some XXXX, look basis. buy point an standpoint stock what obviously, the position kind So to back the in we’re of inorganic starting at in subject we

Mark Neville

it. Alright. Thanks. Appreciate

Operator

the Our Dan Levy ahead. next of Credit Please go from from Suisse. question comes line

Dan Levy

morning question. flat the a over presumably, and on having this question about the heard vehicles effectively slightly to down with the thank XXXX. years are good revenue and We’ve and Wanted others. or you at for revenue start midpoint complete the actually Hey, versus forecasting discussions for you – specifically and few taking next outlook, you’re

manufacturing. to in as seems help – to what exposure address stride, asset-light appeal EV and way upside complete extent a vehicles? to you like their just to this us materialize its can So hitting it really may business understand I there’s is get customers

seeing vehicle? revenue the outlook we in that aren’t why of for So more complete

Vince Galifi

talked the of take Dan, things. on end a got couple I board Fisker to about Well, of into We’ve and at the you business plans account that XXXX. coming to think are launch

XXXX think line. you start contract, a to priced assumption into see you impact a be And I outlook our that’s the is in that more value-added to get that normal contract. on not of we’ve going to So a fully revenue built our as

or assumption to are materials on our a is that of So materials going the be the big pass-through a chunk basis.

So but that bottom impact on has at no all EBIT, revenue on line, line. certainly the

today also Magna in programs tend to off. of think drop come look life, to that programs as we volumes I closer at Steyr when have end and you the

that contracts we on have sales. our have the the of And ‘XX booked at a business of So when XX% is organization, will overall impact place. we look that kind in negative across revenue

So question thereafter. or the we’re in to sometime be extent we that whether new or business went ‘XX going to ‘XX starting

about But bunch lower end for the purposes, impacting that’s the ‘XX, than what’s ‘XX. kind million of in same the business, complete roughly mean kind I what our lower kind of think, same. the numbers. the you there. vehicle that’s is couple are in when hundred range But low-end So of about all intents – our range you at in and a of a our of I moving it’s ‘XX, and think of ‘XX there top, pieces look

Swamy Kotagiri

Keep we’re sales. going also China, see to in in you’re ramping in Dan, up not our mind, but consolidated that

is consolidated. sales going are it’s to is rise, going rise volume to So just not

Dan Levy

Okay.

having discussions, sorry. And It’s – like. to okay. would see So you’re other yes, the we extent that that then beyond XXXX,

Vince Galifi

Dan. fine, That’s Go ahead.

Dan Levy

from And each is to of obviously, the much the how second exposure market theme question, then benefits company’s really understand EV.

you we’ve everything on dried battery exposure, trade EV. light as complete help a EV of add weighting. we We units, XXXX, that’s what’s XXXX think as heard I vehicles about mix up the your positive? Can ultimately the by net play portfolio about understand just heard or us

Swamy Kotagiri

Dan. morning, Good

to with that’s the going start I say, you and full The impacted, can that I just purely product EV, would at are along so are are But and If that our to products forth. the the systems the we you also one it, an along on interesting not the you on – would the explained and so just designed new vehicles, some or of where and things sitting compute by the see mentioned battery one it. think the we look be goes EV, tray. battery prices before, like Again, look will I mentioned dependent be it, so the that would most as the will sector I as PNB, in way it, product, and with call the the piece. drop architecture will the impact weighting Light Are it on. continue. EV is on of but how have on at

If back it, impact the time. at over think step an have systems you the body and on I chassis the will components will in change it and how some of look

the of systems forward. one think, But take kind you EVs at of where most and bold, become of looked has we as powertrain increased right? the content it the going forward, interesting $X,XXX. of point, We lot of about Magna have of has worth had, for If we’ll the business, to data $X,XXX I the piece just others, look fact, one business is XX% example, the a at

So the continue said, e-drives. we we moving powertrain, as most the will EVs, on And OEMs sourced, to are XX% migrate be like the from our the business of the current towards to right.

customer enabler I for electrical an new architecture, are the possibly and established the entrants is the think variance some which We looking base. at for in

look we color. specific So on to but a hopefully, I that’s put it it. can’t gives have at how number some it,

Vince Galifi

a seeing Swamy, of part can the are of of I business, add our maybe just quite electrified at you growth. we bit kind look Yes, just so

seeing lot system in If capabilities with and we’ve complete in I across been capabilities, of And talked And our so the discussions sitting LG, from right HASCO the completion some with now talked our customers. their with are launched has about it LG, know presence help coming at an and is to here. capabilities joint look today a with the we’ve that’s more he of to along. second EVs [indiscernible] you our customers. EVs just our the about accelerate venture one joint we we me with going e-drive And about pure and the ventures,

that business plan you’re until growth of So that, more to beyond I going from to ‘XX time also, of impact period ‘XX. but the frame, of we’re in think starting a lot the see our here the see end

Swamy Kotagiri

Yes.

So I LG. powertrain, but is say greatest think exposure we we added the can

about we in go opportunity, EV. will from X,XXX vehicles ICE about $X,XXX to And So the the rest content believe, continues. in

Dan Levy

you very thank much. Great,

Operator

The Capital from next Sklar question line comes from the Peter of Markets. BMO

line open. Your is

Peter Sklar

Thanks. Good morning.

the First, the Vince, on I just comment incorporated your into back how you wanted go forecast. to shortage and chip on that

I’m So right has shortage no XXXX, the of move part your impact on full it quarterly for is anticipate you net-net, the year? as So to in that it? is I it be me had think correct latter the you’re the guidance and way think chip any although wrong, volume a does globally will made you’re the year seeing what the if result saying, chip about timing up that of loss shortage, that around,

Vince Galifi

I to way mean, about we our haven’t – it. customers. we right the that’s already seen Peter, think Yes. have disrupted

able So result to that, of so month of production. have we their taken even things [indiscernible] But we around had far, down our been with a have within shift – customers plants. our some the have But so of January, to but meet as our good.

units second assumption quarter. going are by in we year. in the be are first is the to out end going our are the the of And units those outlook made So out will quarter, to – come our this expecting

are you from you to you but second bring net Peter, of So the half. – right, sealing half to neutral, kind the first are so

given of significant I you. things, we’ll going be some that some any is, But work Peter, significant to be that’s start but is cost What kind our to inefficiencies and think, of going us view stop. do not to will move the So as that, guidance My really is be kind modeled result of amount that’s of of anticipate on the we the outlook. kind for there we’ve year. a through those assumption of the that. start there for again, I don’t and inefficiencies haven’t out stopping

Swamy Kotagiri

North if at you point in also bit America. a expectations, if they recent of look loss, is where in out, is there I’d XX.X% little volume IHS are at most their

in we XX% at We’re we’re There at XX% XX%. in XX.X%. Europe, China, are at XX.X% they are are

below IHS, the So now most current the we’re look. running right

a So bit. little it protection gives volumes of are us in little bit case off a

Peter Sklar

unusually My point Okay, and thanks. at in a were exteriors like margin. second question segment, very is wondering strong, light-truck there I’m had and reporting, the segmented you is, revenue particularly look like the in particular group bodies anything both was volumes that can strong. in just to GM you when high

some would in is it. call segment? else be that out there that of think you want So But I to that anything would

Vince Galifi

are Yes. to of it, call you I’m I’m Peter, happy reference? things. segment, There assuming, your are in right, couple QX to a QX, looking a

Peter Sklar

I there’s Yes. the GM strike last know year.

Vince Galifi

Yes. Yes, last when segment. the was it we but year, talked about GM that strike, it X.X% on

had take X.X X, X.X. in we last year, were So you your

forward been expect little contributor launch benefit X.X time was there. less to we been in made on going And of making versus year-over-year. progress overall quarter, from some underperformers talking We And and to for had to little we we a So at that away. lot chipping that versus commodity are go continue this about this bit That talked my don’t that had and continue a last for been there. That quarter about some the to costs has we XX.X, cost. us focusing just comments got as a Magna. away we’ve and move of some a in I and group, in We’ve big positive we they are progress, progress. bit pretty adjustments. make still

pieces year-over-year. as pull-through. that’s just higher pretty a the other the Peter, of you a – Kind margin. is, incremental the higher And better the volumes up think on all you it I too significant the improvement just They all and the overall it’s volumes. with adding had certainly think thing it of helps margin start and

Swamy Kotagiri

Yes.

Our were top programs programs – on BES the strong. our side, really sales top in

the our SUVs, were including but them launch. volumes there few programs including of and volume, related top just Daimler but of strong business, Some as some others, a launch, the in you impact mentioned, like to

Peter Sklar

just for week had the And sprint for electrification outdo making course to and Swamy, of if time with over you Okay, question, or a of announcements Ford vehicles. a to themselves I thanks. the one to ice now then with to the as appears know, the last for we’ve frame I termination shorter last GM everybody powertrain so, vehicle gone had trying that movement may, the Swamy.

to that So electric accelerated their is vehicles, this more I’m announcements is if strategy if just to noise and the wondering And battery to substance caused to if reassess more you in on pause it there you and has investments need at part? just perception was movement any all thought those you make? or your

Swamy Kotagiri

morning, great question. Good Peter,

think the last strategy the the bringing our of you’ve And seen we said, extent obviously, are do develop we portfolio what X the we to is possible, always how today, X building the the can to look market said, accelerates. I right? to scale wheels, key years, agnostic as if take us the and we’ve let’s power rates, how over at always being to which blocks

a the Magna, to and electrification, at with think not, with opportunity for lot had I I addition think print think great whether seen even now on know Europe we’ve we it’s entrants not and compared but the contemplate an that others the think what it’s to able are look new a we a market. I about talking LG Magna. and and definitely – the opportunity I it, it’s conversation is see or towards where you to this U.S. based has overall, the in that into accelerated but China overall, is characterize where entry of just We capabilities the as don’t and push portfolio said, forward going more like actually expertise

Peter Sklar

Thanks your for comments. Okay.

Operator

comes The of from KeyBanc. James Picariello question the from next line

open. is line Your

James Picariello

guys. Hey, good morning

Vince Galifi

Good morning, James.

James Picariello

from much was equity how margin piece Can the GETRAG income out consolidated you that? profile $XXX and share million the of taken

Vince Galifi

any by Louis, chance? handy that any you of have

Louis Tonelli

I if can No, will it dig see I out.

James Picariello

great, yes, could ask if time that’s – could otherwise, alright. ask my in it I question next find but just I you

Power next LG marker in the of you years, revenue staying financials CAGR. into JV have baked the few specifically? XX% what’s mean & the color any the segment, the over I can you Just provide Vision on

You of so and – right, than in the are from breakout equity the ‘XX, kind curious income unconsolidated the to growing there? $X what’s more to ‘XX billion, impact revenue interested tying it more your total

Vince Galifi

So you We’ve and ‘XX. there going as losses, to Vision at is on dilutive business side, the ‘XX in the & to in I some be margin got some look investments side, think ramp the starts when Power that up.

opportunities I get into ‘XX, on. number little to expect we to too we As of it’s a be tell. is still that There working think a early

what the spend as engineering as revenues start So all incremental to be the there where well and that mix the really on or profit it of associated going the up, be depends on cadence of it’s to ramp is of some but will that. that,

a it’s So, I think true to little still tell.

As other. one numbers, way the kind or I not move our much mean, at to going I consolidated that look it’s of

the ‘XX, past as at Magna we venture to completely And systems. get it have you joint as income significant as well some think us more equity look provide a impact for the side on the going certainly, e-drive opportunities will on I is line.

James Picariello

growth a just HASCO and the the total growing? the I of for period, is driven mean $X X-year are within that of right, the revenue, by in over just that billion So or unconsolidated majority your kind BJEVs X of breakout BJEV

Vince Galifi

to going in Yes. head, about about $XXX off the biggest contributors it’s sales are I the LGV be in going be BJEV. of I talked And HASCO, just top million in my to there XXXX.

XX% to the CAGR. talking are I’ve So their been in sales about And be going more ‘XX.

that some sales well. unconsolidated the built there’s So as joint of venture into

James Picariello

Got it.

guide a at high sense you to identical XXXX out I for framework you implied last targets this and if midpoint like, take is we the even for to year’s get laid adjusting just GETRAG, what XXXX level, And XXXX looks the after bridge the XXXX a to mean, entire almost just year. Okay.

earnings forces attribute resilience? level, So major are terms just of storyline the curious high that driving what the in at Thanks. a you’d to

Vince Galifi

stand be were mind. going going where in be I volumes. out less. ‘XX, are to we’re to So One back I first where got things – my this year in we volumes to And and where say, is, year is what really we think three you are think last thought that look we

would than negative. about last a we We the track, that’s of year. the have So talked consolidation negative anticipated that’s

kind of and structure. conquering other just ‘XX are driver rightsizing our at are are look think stuff a out a I probably XXXX. down to really bringing class not the for pieces, the it. benefiting I’d way And now. it’s focused is But world is you the biggest of want manufacturing year doing of ‘XX down just lot to take a only to volume manufacturing, biggest on costs, there part overall looking think in about – to system. class but ago cost world it’s I one moving from that’s and we that the overall of our say And of what at the going of structural a commenced some cost lot type We we – it’s the we

Swamy Kotagiri

income, of in about million ventures it’s two for the terms the equity $XX XXXX. In joint

Operator

Our next from from Kevin comes World line of Markets. the CIBC Chiang question

open. is Your line

Kevin Chiang

you call. faced. you and the the one Thanks just appreciate and color been thanks the just It’s provided Maybe back I long all for chip color. me a have here. me, the for appreciate squeezing just in I circling on shortage, uncertainty

that this would think segment chip last the the if event right a you out, through risk, most complete base plays think am be in the more it downside as of wondering, segment or that XXXX? to another than – I downside might Just think manufacturing the risk might be more might impacted might you vehicle be segment longer shortage

Swamy Kotagiri

extremely morning, the any think OEMs other X forward. going full to is going – been will And be lines, are which Like to the but you I on Kevin, it, like of to say side than of of it disrupt mix, we’ve we’ve the we of today, different follow than versus right, believe very finger we lead. a managing I a put closely but start can stops wake but from have is when and other prioritized think, it good that which our we the monitoring manufacturing But and we based their don’t the variance, or how know dynamic so and watch. not think manage the have something I to things it’s said, lot model Vince that, kind Good I continue added on so a is it second closely been months. that with in last But it X, there’s of will I see we of facts product the fortunate half. the over making so it’s capacities – and where still a still and on looks how the we we to are have there first watch half now. right wait see forth, situation possibility like said, and and up those on dynamic, might other, say,

Kevin Chiang

it very No, I Thank appreciate for the That’s situation. you me. much.

Louis Tonelli

meeting. been got that, one things will this calls? to well. get pretty is to we we long that but if committed other I other any It there as will there to – call, are are some we need Maria, it’s we morning other have know a take

Operator

Okay. No problem.

from Adam last Stanley. line Please Jonas the question ahead. So, coming the this be Morgan go will of from

Adam Jonas

you give to I just my disclosure. here. back. the might presentation, it’s value-added going into Canadians, great really sink against Don’t say the I time underestimate continue your have to transcript to bet want you. am I really to I Guys, a teeth

So later, well be Louis, let’s guys you talk and okay, that’s safe. stay if

Louis Tonelli

good. Sounds

Vince Galifi

Adam. Thanks,

Swamy Kotagiri

Adam. Thanks,

Adam Jonas

Take care.

Swamy Kotagiri

all I’m taking fourth it color meeting forward. but appreciate going I I went time. you more through was call. to I’m want in looking where everybody results, today the bit Event, of the of details. long really we the know the Investor little said, objective to conclude focus I to outlook quarter the April and on Like portfolio our provide to lot call forward a to a hoping and was the our we on Just a strategy product and

healthy. and thank you. stay you until Thank safe then, So stay very much, and

Operator

That for please your does you thank that conclude conference participation today. ask for your disconnect lines. the We and you call

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