As a global mobility technology company, Magna is uniquely positioned to meet the needs of the market today while addressing the challenges of future mobility. We remain committed to striking a balance between investing for the future and continuing to drive our results in the near term.
Our expertise and leading technologies across our portfolio, together with our agility, provide the foundation for our competitive business model. This supports our ability to create value over the long-term even as our industry faces significant change and near-term challenges.
As we progress through this decade, Magna expects to continue to capitalize on key trends, including electrification, autonomy and light-weighting. We have a long history of developing products and processes to help solve our customers’ problems and support them in making lighter, cleaner, safer and smarter vehicles.
Our capital strategy is to maintain a strong balance sheet, ample liquidity and high investment-grade credit ratings. At December 31, 2019, we had over $4 billion of available liquidity, between cash and credit lines. This strategy allows us to invest prudently for growth through organic opportunities, innovation spending and acquisitions that fit our strategy, as well as to return capital to shareholders. It also leaves us well-positioned in times of economic downturn.
We have returned a significant amount of capital to shareholders for many years. In fact, over the past three years we’ve returned $5.7 billion to shareholders in the form of share repurchases and dividends, including over $1.7 billion in 2019.
Going forward, we anticipate:
- Further sales growth, driven by our strong positioning relative to industry trends;
- Generating strong free cash flow1, reflecting the conversion of our sales growth together with a disciplined approach to capital spending; and
- Continued return of capital to shareholders, through both share repurchases and dividends. Our dividend increase in respect of the fourth quarter of 2019 represented the eleventh consecutive year of dividend increases for Magna.
Our balanced growth should create value for shareholders, while providing us with the flexibility to pursue strategic opportunities, as Magna plays a key rile in the new-mobility ecosystem.
1 Free cash flow is a non-GAAP financial measure. Free cash flow represents cash from operating activities plus proceeds from normal course dispositions of fixed and other assets minus capital spending minus investments in other assets.