Investor Presentation
Forward Looking Statements (cont.)
MAGNA
Forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected
future developments, as well as other factors we believe are appropriate in the circumstances. While we believe we have a reasonable basis for making any such forward-looking statements, they are not a guarantee of future performance
or outcomes. In addition to the factors in the table above, whether actual results and developments conform to our expectations and predictions is subject to a number of risks, assumptions and uncertainties, many of which are beyond our
control, and the effects of which can be difficult to predict, including, without limitation:
Risks Related to the Automotive Industry
economic cyclicality;
. regional production volume declines, including as a result of the
COVID-19 pandemic;
intense competition;
potential restrictions on free trade;
trade disputes/tariffs;
Customer and Supplier Related Risks
concentration of sales with six customers;
emergence of potentially disruptive EV OEMS;
.
OEM consolidation and cooperation;
shifts in market shares among vehicles or vehicle segments;
shifts in consumer "take rates" for products we sell;
quarterly sales fluctuations;
potential loss of any material purchase orders;
a deterioration in the financial condition of our supply base, including as a result of
the COVID-19 pandemic;
Manufacturing Operational Risks
product and new facility launch risks;
operational underperformance;
restructuring costs;
impairment charges;
labour disruptions;
COVID-19 shutdowns;
supply disruptions, including with respect to semiconductor chips;
higher costs to mitigate supply disruptions;
climate change risks;
attraction/retention of skilled labour and leadership succession;
IT Security/Cybersecurity Risk
IT/Cybersecurity breach;
Product Cybersecurity breach;
Pricing Risks
pricing risks between time of quote and start of production;
price concessions;
commodity cost volatility;
declines in scrap steel/aluminum prices;
Warranty/Recall Risks
costs related to repair or replacement of defective products, including due
to a recall;
warranty or recall costs that exceed warranty provision or insurance
coverage limits;
product liability claims;
Acquisition Risks
competition for strategic acquisition targets;
inherent merger and acquisition risks;
acquisition integration risk;
Other Business Risks
•
risks related to conducting business through joint ventures;
our ability to consistently develop and commercialize innovative products or
processes;
our changing business risk profile as a result of increased investment in electrification
and autonomous driving, including: higher R&D and engineering costs, and challenges
in quoting for profitable returns on products for which we may not have significant
quoting experience;
risks of conducting business in foreign markets;
fluctuations in relative currency values;
tax risks;
reduced financial flexibility as a result of an economic shock;
changes in credit ratings assigned to us;
Legal, Regulatory and Other Risks
antitrust risk;
•
legal claims and/or regulatory actions against us; and
.
changes in laws and regulations, including those related to vehicle emissions or made
as a result of the COVID-19 pandemic.
In evaluating forward-looking statements or forward-looking information, we caution readers not to place undue reliance on any forward-looking statement. Additionally, readers should specifically consider the various factors which could
cause actual events or results to differ materially from those indicated by such forward-looking statements, including the risks, assumptions and uncertainties above which are:
discussed under the "Industry Trends and Risks" heading of our Management's Discussion and Analysis; and
set out in our Annual Information Form filed with securities commissions in Canada, our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings.
Readers should also consider discussion of our risk mitigation activities with respect to certain risk factors, which can be also found in our Annual Information Form.
Investor Presentation - September 2021
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