May 2, 2006 Siegfried Wolf Co-Chief Executive Officer Magna International Meeting of Shareholders.
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Transcript of May 2, 2006 Siegfried Wolf Co-Chief Executive Officer Magna International Meeting of Shareholders.
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May 2, 2006
Siegfried WolfCo-Chief Executive Officer
Magna International Meeting of Shareholders
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Overview
• Magna growth drivers
• New automotive markets
• Customer diversification
• Modules
• Innovation and technology
• Leveraging product capabilities
• Investment strategy
• Magna strengths
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$1,762
$6,851
$12,754
93 00 05
North America
$119
$3,187
$9,879
93 00 05
Europe
$0 $41 $130
93 00 05
Asia
CAGR17%
CAGR43%
$ Millions
Magna Sales By Region
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Magna Sales By Customer
20051993
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8.3
2.21.8
0.7 0.9
Asia Europe N.A. S.A. Other
Increase in Production Units 2004 to 2010 (Millions)
Source: J.D.Power / LMC
Global growth by 2010: 22% or 13.9M units
Automotive Production Growth by Region
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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
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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
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Successes with Asian-based OEMs
• Significant interiors and stampings in North America
• All wheel drive business with Nissan inJapan and North America
• Second breakthrough all wheel drive contract
• Seating and interiors awards in Korea
• Additional opportunities throughout Asia
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Targeting10-15% by 2010
Production Sales to Asian-based OEMs
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Growth in Modules
• Complex, highly engineered
• Incorporate new technologies
• Fewer suppliers can support modules
• Cross group opportunities
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0
200
400
600
800
2001 2002 2003 2004 2005E
* Based on Annual Income Tax Filings
Continuing to Invest in the Future
R&D Spending*$ Millions
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Innovation and Technology
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Innovation and Technology
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Investment Strategy
• 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
Acquisitions
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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
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