2018 ANNUAL REPORT
Leading Change in an Evolving Industry
DON WALKER \
CHIEF EXECUTIVE OFFICER
"Our company of entrepreneurial-minded employees continues to anticipate the changing needs of the $1-trillion global automotive supply business by developing advanced technologies, creating partnerships that leverage each other’s capabilities, and driving change in a disruptive era."
Financials & Downloads
KEY FIGURES AT-A-GLANCE
Sales1
U.S. $ MILLIONS
1 2017 figures adjusted for adoption of the new revenue standard (Accounting Standards Codification 606).
Diluted EPS1
U.S. $
CASH FLOW FROM OPERATING ACTIVITIES1
U.S. $ MILLIONS
RETURN ON EQUITY1,2
RETURN ON INVESTED CAPITAL1,2
DIVIDENDS PAID PER SHARE3
U.S. $
Driven People.
Driving Change.
See how our teams are changing the world around them.
We are continuously improving manufacturing processes at our plants to reduce their impact on the environment in key areas, including water and energy. Additionally, as part of Magna in Action, our employees around the world contribute to their communities, volunteering thousands of hours and donating to a wide range of social projects, from World Vision to Special Olympics. Magna-sponsored STEM (Science, Technology, Engineering and Math) programs, including student robotics and college-level racing events, have made math and science exciting to more than 100,000 students around the world.
DRIVEN PEOPLE. DRIVING CHANGE.
A Sustainable Approach
Our conservation awards include one from Enbridge Gas Distribution of Canada, which recognized Magna for 16 energy efficient projects that achieved an annual natural gas savings of 2.75 million cubic metres, the carbon emission equivalent of planting more than 1,600 trees.
DRIVEN PEOPLE. DRIVING CHANGE.
A Step in the Right Direction
Each year, more than 2,000 Magna employees from 13 countries support World Vision’s 6k Walk for Water. The one-day, worldwide event unites thousands of people who run and walk to help bring clean water to those in need. In 2017 and 2018, Magna employees raised more than $750,000 USD.
DRIVEN PEOPLE. DRIVING CHANGE.
Putting STEM FIRST
Magna is proud to sponsor FIRST Robotics competitions at the organization level as well as dozens of individual teams. For more than a decade, Magna has volunteered, mentored, and led various FIRST robotics teams and programs that have fueled its growth and engaged thousands of students from across the globe.
Accelerating the Mobility Revolution
SWAMY KOTAGIRI \
CHIEF TECHNOLOGY OFFICER
"Our strategy includes a building-block approach to technology that leverages our deep systems knowledge, the ability to auto-qualify technologies from other industries, and an entrepreneurial culture that helps keep us at the forefront of possibilities."
Strategic Moves & Milestones
World Class Manufacturing
We help launch new vehicles amounting to billions of dollars each year. Thirty-six Magna divisions in North America alone contributed parts to help successfully launch the redesigned 2019 Chevrolet Silverado and GMC Sierra pickup trucks, one of the biggest product rollouts of the year. Additionally, we continue to build our complete vehicle business with multiple car brands, including Mercedes-Benz, BMW, Jaguar and Toyota. To date, we have produced more than 3.5 million vehicles for various customers.
Strategic Moves & Milestones
Process Innovation
As we continue to deliver new advanced technologies, we innovate how we produce them. Magna manufacturing experts accelerate smart manufacturing through processes that are rolling out across a number of our global facilities including new manufacturing cells with advanced artificial intelligence robotic systems that use state-of-the-art vision systems. We leverage new wearable technology to increase efficiency and help technicians troubleshoot faster. And we continue to bring more virtual reality technologies to simulate crash tests, maximize floor space and enhance ergonomics.
Strategic Moves & Milestones
Product Innovation
We continue to win business in core product areas from body structures to latches and electronics to powertrain. We announced new seating business with Geely’s LYNK & Co in China and BMW in the Czech Republic. Daimler introduced an industry-first augmented reality navigation system on its new Mercedes-Benz A-Class that’s powered by Magna’s forward-facing camera. We also unveiled a new composite liftgate with Jeep that reduces mass by 28% and is the highest volume production program utilizing this technology. In total, we have now produced more than 3 million thermoplastic liftgate modules.
Strategic Moves & Milestones
Our People and Culture
Our Fair Enterprise culture strikes a balance among the needs of our key stakeholders including our employees, customers and shareholders. We operate in a decentralized, entrepreneurial, performance-based environment that empowers our people. We take pride in knowing that our culture is a competitive advantage and we continue to be recognized as an employer of choice. Magna was named by Fortune as one of the World’s Most Admired Companies and by Forbes on their Most Admired Companies and Canada’s Best Employers for Diversity lists.
Strategic Moves & Milestones
Global Footprint Expansion
We continued to expand our geographic footprint in 2018. Three new joint ventures in China will help increase our presence in the world’s largest new vehicle market. They include an engineering joint venture with BJEV, a subsidiary of the BAIC Group, to design a battery electric vehicle architecture for the Chinese market.
Additionally, we expect to complete a second joint venture with BJEV to assemble electric vehicles (EVs) in China, at our first vehicle production facility outside of Europe.
We also expanded our complete vehicle engineering services for the European market with a new partnership with Altran in Morocco.
The Power of Innovation
Collective Expertise: Deep Systems Knowledge
With our expertise across the entire vehicle, Magna has the ability to develop technological advancements at an accelerated pace.
Across all of our product areas we create solutions that improve safety, drive powertrain innovations, boost occupant experience, and lead manufacturing into the future.
Some of our collaborative efforts include:
- A multi-faceted approach to developing distinctive, high-performing micro LED lighting solutions that can be used in a variety of applications including exterior styling, seating controls and tail lights.
- Combining our electronics and powertrain expertise to develop products fitting a variety of 48-volt mild-hybrid drivetrain architectures, reducing CO2 emissions by up to 15%.
- Developing driver monitoring systems and autonomous driving Level 2+ features that improve safety and further enable autonomy.
- Leveraging our body structures and exteriors capabilities to develop a best-in-class multi-material battery enclosure.
The Power of Innovation
Agility and Entrepreneurial Mindset
Our culture allows us to respond to changing market demands and gives Magna a competitive advantage as our entrepreneurial-minded people develop innovative solutions.
A prime example is our high-definition iCON RADAR™ that sets a new standard in high-resolution automotive radar. With a range of more than 300 metres, iCON RADAR helps close the gap between Level 3 and Level 5 to reach full reliable autonomous driving.
The Power of Innovation
Positioned for Future Mobility
Magna stands ready in electrification and autonomy as we assemble the building-blocks of future mobility. We accomplish this by developing core competencies in-house at an accelerated pace and partnering with some of the best minds including startups, entrepreneurs, universities and technical specialists for technological advancements.
By combining the technical focus and agility of startups with the global volume production and vehicle experience of Magna, we can develop, auto-qualify and commercialize technologies in far less time.
Bullish on the Future
VINCE GALIFI \
CHIEF FINANCIAL OFFICER
"We anticipate that 2019 will be another good year with strong sales, solid earnings and increased free cash flow5, all as we continue to invest for the future."
