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Magna International Meeting of Shareholders. Siegfried Wolf Co-Chief Executive Officer. May 2, 2006. Overview. Magna growth drivers New automotive markets Customer diversification Modules Innovation and technology Leveraging product capabilities Investment strategy Magna strengths.
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Magna International Meeting of Shareholders Siegfried WolfCo-Chief Executive Officer May 2, 2006
Overview • Magna growth drivers • New automotive markets • Customer diversification • Modules • Innovation and technology • Leveraging product capabilities • Investment strategy • Magna strengths
Asia North America Europe $12,754 CAGR 17% $9,879 CAGR 43% $6,851 $3,187 $1,762 $41 $130 $119 $0 93 00 05 93 00 05 93 00 05 Magna Sales By Region $ Millions
1993 2005 Magna Sales By Customer
Automotive Production Growth by Region Increase in Production Units 2004 to 2010(Millions) Global growth by 2010: 22% or 13.9M units Source: J.D.Power / LMC
Automotive Production Growth by Region • Nearly 60% of growth in Asian market • Growth in Eastern Europe • Current presence in many product areas • Target new business in Turkey and Russia
Magna Activity in Asia • New facilities and joint ventures • Purchasing offices established in China, Korea • Offices in Thailand and India • Increased engineering resources • New facilities launching
Successes with Asian-based OEMs • Significant interiors and stampings in North America • All wheel drive business with Nissan inJapan and North America • Secondbreakthrough all wheel drive contract • Seating and interiors awards in Korea • Additional opportunities throughout Asia
Production Sales to Asian-based OEMs Targeting10-15% by 2010
Growth in Modules • Complex, highly engineered • Incorporate new technologies • Fewer suppliers can support modules • Cross group opportunities
Continuing to Invest in the Future R&D Spending* $ Millions * Based on Annual Income Tax Filings
Investment Strategy Acquisitions • Unique / complementary technologies • Provide growth opportunities with targeted customers • Strengthen global position • Buy existing capacity rather than installing • Compelling financial transaction Appropriate Returns On Investment
Magna Strengths • Strong reputation • Excellent technologies • Deep technical skills • Global presence • Strong balance sheet • Unique entrepreneurial culture • Motivated management • Great workforce • Attract and retain the best people