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Investor Presentation
March 2020
Linamar Corporation
A Global Powerhouse in Diversified Advanced Manufacturing
2
Certain information regarding Linamar set forth in this presentation and oral summary, including
management’s assessment of the Company’s future plans and operations may constitute
forward-looking statements. This information is based on current expectations that are subject to
significant risks and uncertainties that are difficult to predict. Actual results may differ materially
from these anticipated in the forward-looking statements due to factors such as customer
demand and timing of buying decisions, product mix, competitive products and pricing pressure.
In addition, uncertainties and difficulties in domestic and foreign financial markets and economies
could adversely affect demand from customers. These factors, as well as general economic and
political conditions, may in turn have a material adverse effect on the Company’s financial
results. The Company assumes no obligation to update the forward-looking statements, or to
update the reasons why actual results could differ from those reflected in the forward-looking
statements. Content is protected by copyright and may not be reproduced or repurposed without
express written consent by the Company.
Forward Looking Information, Risk
and Uncertainties
22
2
Forward Looking Information, Risk
and Uncertainties
2
3
Company Overview
4
Linamar - A Leading Global Advanced Manufacturing Company
Transportation
Infrastructure
Agriculture
Carbon Efficient
Electrified
Lightweight
Connected & Autonomous
New Mobility
Optimized Harvest Yield & Availability of Food
Safe & Efficient Man & Work to Height
Deep
Manufacturing
Expertise
Leading Edge
AI Enabled
Technology
SOLUTIONS TO
POWER THE FUTURE
OF VEHICLES, MOTION,
WORK, AND LIVES
5
Key Investment Themes
~ 1million shares
repurchased to date
2020 NCIB approved by
Board & set to begin
ASAP
Active Share Buyback
Massive Market
Opportunity in All
Businesses
MacDon growth potential
4x current footprint,
market share growing
Skyjack -- access market
$11 billion, few players,
market share growing
Transportation
addressable market >2.5x
increase in 10 years,
significant opportunity in
electrified vehicles
Market Share Growth
Offsetting Soft Global
Markets
Steady Boom and Telehandler
market share growth trend at
Skyjack
Global draper header growth
at MacDon
Content per Vehicle at new
highs in core NA and EU
automotive markets, Global
CPV growing
Market share growth will
accelerate top line growth
when industry volumes start to
pick up
Strong Free Cash Flow
Generated in 2019
Strong earnings, reduced
capex, improvements in
NCWC drove FCF1 of
$670M in 2019
2020 expect FCF $500-
$700 million on higher
earnings, lower capex
Net Debt to EBITDA 1.5
2020 Net Debt to EBITDA
should reduce further to
< 1.0x
1 - Free cash flow has been adjusted for additions of property, plant and equipment related to the dissolution of a joint venture.
6
Key Drivers of Market Opportunity
Innovation
7
Transportation Infrastructure Food Power Water Age
Market Focus Addresses Key Global Trends
Rapid Technology
Evolution
Growing Global
Population
Aging Global
Population
Urbanization
7
Growing Intensity to Address
Environmental Concerns
8
Core Brands and Diverse MarketsDiversified Manufactured Products that Power Vehicles, Motion, Work and Lives
Linamar Light Metal CastingLinamar Montupet Light Metal Casting | GF Linamar
Linamar Machining & Assembly
Linamar Seissenschmidt Forging
Infr
astr
uctu
reF
ood
Tra
nspo
rtat
ion
9
Linamar’s Unique Value Creation ModelDeeply Interconnected Businesses Driving Value Across Multiple Vectors
Machining & Assembly
Seissenschmidt Forging
Light Metal Casting
Global Footprint
PurchasingIndependent Businesses Value Connected
10
ACCESS COMMERCIAL
Market Concentration Balance
TransportationEngine | Transmission | Driveline | Body
OE
62%IndustrialMobile Industrial Equipment | Fabricated Assemblies
OE
38%
OFF HIGHWAYAUTOMOTIVEAGRICULTURAL
15.9
Sales
76%Sales
24%
8.2 69.8 2.4 3.7
YTD Q4 2019 - Industry figures are a percentage of sales
11
Diverse Core Capabilities
Advanced Automation
& Robotics
CNC Expertise
Complex Assemblies
Hydroforming
Heat Treatment
Robotic Welding
Laser cutting
Metal Forming
Stamping
Painting
Assembly
Gravity & Low Pressure Aluminum
Die Casting
High Pressure Aluminum &
Magnesium Die Casting
Hatebur High Speed Hot Horizontal
Forging
Conventional Vertical Forging
Cold Forming
Ring Rolling
Radial Forging
Metal Forming Machining & Assembly
Forging Light Metal Casting
12
Diverse Key Products
Industrial Transportation
Engine TransmissionDriveline
Body & ChassisNew Energy Powertrain
Systems
13
Strong Global Footprint
Facilities with IATF 16949
Facilities with ISO 9001
Facilities with ISO 14001
Facilities with ISO 45001
49
13
55
Number of manufacturing facilities
SPAIN BULGARIA
USA
CANADA
MEXICO
UNITED KINGDOM
FRANCE
GERMANY HUNGARY
INDIA
CHINA
Manufacturing Facilities (61)
Sales Offices (25)
Development Centres (10)
Support Facilities (4)
Global Headcount
27,200+
52
5
6
1 4 1
557124
2
14
Innovation
Driving the Advanced Manufacturing Agenda
15
Broad Innovation Strategy
Product
DevelopmentProcess
Development
Material
Development
Lighter, Stronger
Manufacturing
Partnerships with
Tech Startups
Digitization
through AI/ML
Tangential
Innovation
16
AI/ML Driving Innovation & Efficiencies
ADVANCED ROBOTICSDevelopment of advanced
collaborative robots to drive
more efficient and safer
automation
DATA COLLECTION1. Improve equipment uptime
& tool life & reduce cycle
times
2. Sensors in products track
performance, drive design
improvements
3. Enable operational
improvements through
telematics
VISION SYSTEMSEvolving vision systems to
more accurately gauge &
inspect products for better
product integrity
ADDITIVE
MANUFACTURING
(3D PRINTING)Identify applications today
(proto, tooling), develop for
future production potential
PREDICTION &
ANALYSISAssessing other processes of
analysis & prediction that can
be more efficiently & accurately
done by machine
17
61 3,206
2,105
2,489 1,081Vision Systems
922
9AGVs
2,094
Digitization with AI/ML
3,162
LMMS Data
Collection Connections
Traceability Read Stations
Connected Machines
RobotsTraceability
Marking
Stations
RFID Stations
Plants
March 2020
18© Linamar Corporation 18
Innovation In Focus : New Guelph, Canada ‘iHub’ Innovation Centre Nearly Complete
Linamar’s dedicated Innovation Hub (iHub) building construction has entered its final phase
Move in date planned for early Q2
Facility will enable accelerated Research and Development focused on;
A ‘Factory of the Future’ modular production cell concept with extensive Autonomous, Artificial Intelligence, Machine Learning elements
Additive (3D) Manufacturing Process Development
Specialized and low-volume new production process development for diversified markets and product lines
Engineering Rendering of Completed iHub
Current Construction Status, February 2020
Incubate Innovation Ideas | Explore Tangential Products & Markets | Develop Manufacturing Partnerships
19
Newly developed eAxle housing for an upcoming Electric Vehicle application
Linamar Light Metals Casting Group demonstrates the deep technical expertise required
to design a manufacturing process that ensures a compact, lightweight, and efficient
casting design that meets its OEM customer’s needs
Innovation In Focus: Light Metals Casting Development of a Electric Drive unit (EDU) eAxle Housing
Casting Simulation
• Low Pressure Die Casting
Water-Cooled Circuit
• Sand core boxes
Decoring Simulation
• Critical area identification
• Developed using in-house proprietary software
Tooling
• Metallic dies
Cast eAxle Housing Design
20© Linamar Corporation 20
MacDon’s latest R2 Series Rotary Disc Header for Hay crops launched for the
2020 production year run
New R2 Series Rotary Disc header mates with the MacDon M1240 Self-
Propelled Windrower (SPW) with EvenflowTM technology that delivers superior
cut, conditioning and windrow formation
The summer of 2019 “Hit em with the Haymaker” demonstration program and
fall MacDon 70TH Dealer Convention generated great early interest resulting in
an early order program with initial limited production run for 2020 which is
already sold out
Innovation In Focus : MacDon’s R2 is the Latest Offering in Hay Mower-Conditioners
21
Innovation In Focus : Skyjack’s Evolving Telematics Solutions
State of Health
Battery life
Last charge date
Battery care information
Serialized Machine Information
Quickstart guides
Emergency lowering procedures
Operator manuals
Pre-use inspection checklist
Elevate Telematics Solution
Introduced in February 2018
Optional equipment with a high take-rate on new machines shipped
Won 6 rental and access industry innovation awards globally
‘ElevateLive’ is the next evolution of the Telematics Solution providing critical
machine operation and maintenance data, particularly details on battery health.
Accessed from any mobile device
Enabling customers to better manage the condition and value of machine over its
life
22
Quarter Highlights
23
Q4 2019: Performance Highlights
Focus on Customers Focus on Employees Focus on Financial
2019 Theme:
Commercializing Innovation
2019 Theme:
Coaching and Developing
2019 Theme:
Simplification
New Business Wins in key strategic areas gaining
momentum
Continued significant wins for electrified
vehicles, particularly in driveline
Strong international business wins
Continued harvesting of ICE market wins as
OEM’s outsource older tech
Takeover business building at >$240M to date
CPV growth in AP & EU in Q4, NA & EU at record
annual levels
Global market share growth for MacDon in core
draper header products
Manufacturing deal signed with Medical Device
company Synaptive Medical
Launched new Top Talent Review Process
Refreshed LLDP1 (Linamar Leadership
Development Plan 1) training going very well– all
supervisors and managers to be trained / or re-
trained
E1T1 (Each 1, Teach 1) enrollees over 1,000
More than 600 apprentices globally and trend
showing positive momentum
Strong free cash flow of $380 million for $670 mill
FY thanks to sharp focus on NCWC and capex
spending
Sales down but outperformed very weak auto
markets globally
24
Sales, Normalized Earnings, and Margins (in millions CAD)
Q4 2019 Q4 2018 % Δ
Sales 1,616.1 1,732.0 (6.7%)
EBITDA – Normalized² 222.4 247.6 (10.2%)
EBITDA – Normalized Margin 13.8% 14.3%
Industrial OE – Normalized¹ 39.4 45.4 (13.2%)
Industrial OE -- Normalized Margin 11.7% 12.8%
Transportation OE – Normalized¹ 73.2 113.5 (35.5%)
Transportation OE -- Normalized Margin 5.7% 8.2%
OE – Normalized¹ 112.6 158.9 (29.1%)
OE – Normalized Margin 7.0% 9.2%
NE – Normalized³ 75.4 115.4 (34.7%)
NE – Normalized Margin 4.7% 6.7%
EPS – Normalized4 1.15 1.75 (34.3%)
1 – Operating Earnings before unusual items and foreign exchange impacts from revaluation of the balance sheet.
2 – EBITDA before unusual items and foreign exchange impacts from revaluation of the balance sheet.
3 – Net Earnings before unusual items and foreign exchange impacts from revaluation of the balance sheet, tax affected.
4 – Earnings per share (EPS) before unusual items, and foreign exchange impacts from revaluation of the balance sheet, tax affected
11.1%12.4%
9.3% 9.2%10.0%
10.8%
8.0%7.0%
15.9%16.9%
14.4% 14.3%15.0% 15.6%
14.0% 13.8%
8.1%9.0%
6.6% 6.7% 7.1% 7.6%
5.5%4.7%
Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19
OE Normalized Margin¹ EBITDA Normalized Margin² NE Normalized Margin³
Q4 2019
Sales outperform soft global markets with
6.7% decline
NA vehicle markets down 8.9% but
launch growth globally offsets
segment to a 7.1% decline
Boom sales up in Europe despite
double digit market declines
Market share growth in NA
telehandlers also helping to offset
significant market declines
NA combine market down mid
single digit but MacDon sales up
Normalized EBITDA down from last year
but still strong with a full year finish of
14.6%, top quartile performance
Helped By:
Strong launches in Transportation gaining
traction and working through transition
challenges
Improved ag sales due to launch of 2020
product in Q4 vs Q3
Hurt By:
GM Strike impact
Double digit market declines in core NA/EU
access markets triggering Skyjack sales
decline
Global light vehicle market declines
25
Outlook Auto
COVID-19 outbreak is the single largest
impact to Q1
$20-$30 mill estimated impact to OE
Likely to impact Q2 as well but at a
lesser level
Possibility for supply chain disruption to
NA and EU plants as well
Normal seasonal uptick on balance of
business will drive some segment OE
growth vs Q4
Ag
A strong Q4 plus strong headwinds in H1
means a pullback in Q1 vs Q4 2019,
improving in back half
Access
Strong headwinds in H1 will mean limited
seasonal uptick in Q1, improving in back
half
General
Impacts from the Covid-19 outbreak are
currently not fully understood or
determinable in terms of their impact to
all segments at this point
Cash
Continued solid cash generation
Normal Ranges 2018 Actuals 2019 Actuals Expectations 2020
Sales Growth 16.4% (2.7%) Flat to Modest Declines
Normalized Earnings Growth
EPS
EBITDA
6%
11.2%
(20.0%)
(8.0%)
Low to Mid Single Digit Growth
Low to Mid Single Digit Growth
Normalized Net Margin 7.0% - 9.0% 7.7% 6.3% Flat to Modest Expansion: 6.25% to 6.75%
Capex (% of Sales)
Leverage Net Debt: EBITDA
Free Cash Flow
6.0% - 8.0%
537m
7.1%
1.68x
$136 m
525m
7.1%
1.50x
$670m
Down in $ from 2019
Below Range and down in % from 2019
Under 1x
$500 to $700 mill
IndustrialSales Growth
Skyjack Double Digit Declines
MacDon Double Digit Declines
Normalized Operating Margin 14.0% - 18.0% 17.1% 14.5% Contraction
Transportation
Factors Influencing Sales Growth
Launch Book $4.2 Billion Driving
Incremental Sales $642 m $586 m $700 mill to $900 mill
Business Leaving (% Consolidated Sales) 5.0% - 10.0% High End Range
Normalized Operating Margin 7.0% - 10.0% 8.4% 7.3% Margin Expansion
Consolidated
Q1 Expectations
26
Light Vehicle Commercial Truck Agriculture Skyjack
North AmericaIndustry
▲1.3%
Industry
▼20.9%
Industry
▼5.0%
Industry
▼12.1%
EuropeIndustry
▼1.9%
Industry
▲0.9%
Industry
▼5.0%
Industry
▼4.9%
AsiaIndustry
▼3.1%
Industry
▼10.5%
Industry
▼15.0%
Industry
▲17.5%
Market Snapshot
Source: IHS Market Estimates for LV, CV Production. Industrial and Agriculture Markets utilize, 3rd party industry analysts as well as internal forecasts . Updated: March 2020
2020
Note: Each of the figures quoted above are external experts views on the industry as a whole overall, not an
estimate by Linamar Management the company’s performance within each market segment.
27
ESG
28
Environment GovernanceSocial Green technology is a key growth strategy
driving product innovation in all business
Energy and water conservation programs
running in all facilities
Rooftop solar power on nearly 40% of global
facilities
Investing in off grid co-gen projects
Low energy lighting installed in all global
facilities
85% of global plants ISO 18001
(environmental standard) certified
Diversity Drives Results Initiative
20-22% female leaders vs 19% female
workforce
Strong ethnic diversity in leadership
Supplier Diversity Program
Significant external promotion of women in
Leadership, STEM & Trades
Charitable Giving – arts, education, healthcare,
youth and community key focus
Scholarships in Engineering (UG),
Accounting (WLU), Dual Eng/Business
(UWO, Women)
GG Hospital $5 mill (with family)
Broad leadership involvement
Conflict Minerals policy
Social, environmental and human rights
standards for suppliers
Detailed review of every governance policy
conducted yearly with Board of Directors
[email protected] direct contact
to Board established to facilitate shareholder
interaction
Process establishing to allow key shareholder
interaction with Independent Board members
Annual integrity and anti-corruption training
Whistleblower policy to ensure good conduct
Skill matrix to ensure comprehensive board
capabilities
ESG is a Long Held Priority
29
Infrastructure
30
Infrastructure
Globalize and expand
product lineup in all 3
regions
JLG
Genie
Haulotte
Manitou
Skyjack
2019 Global Market of $11.2 Billion
Key Market Strategies - Flexible & Opportunistic
31
Access & Material Handling Equipment – Product Mix
Sources: Skyjack Internal, February 2020
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020est
2021est
2022est
2023est
Mar
ket S
ize
(Mill
ions
US
D)
Mobile Equipment Market Product Mix
All Products Scissors Booms Telehandlers
32
Access & Material Handling Equipment – Geographic Mix
Sources: Skyjack Internal, February 2020
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020est
2021est
2022est
2023est
Mar
ket S
ize
(Mill
ions
US
D)
Mobile Equipment Market Geographic Mix
WW Total NAM EMEA ROW
33
Mobile AppsDigital
Products
Skyjack’s Innovation Strategy
Next Generation
Alternative Power
Remove operatorfrom height
Continuously VariableTransmission
SecondaryGuarding
Smart machinesAutonomy
34
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Telehandler Market Share (NA Only)
Market Share Penetration Access - Key Growth Driver
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Boom Market Share (NA Only)
Source: Skyjack Internal, February 2020. Market share shown as four quarter moving average.
35
Food Agriculture
36
Food
Build on MacDon acquisition
as the foundation from
which to expand global ag
business overall
Regional growth initiatives
Advanced and disruptive
technologies
Global parts distribution
Laser focus on operations
Product line diversification
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2015 2016 2017 2018 est 2019 est 2020 est
Mill
ions
Global Market Combine Heads ($CAD)
North America South America Europe (Incl. Ukraine) Australia CIS
Primary Market Today
Key Market Strategies - Flexible & Opportunistic
Source: MacDon Internal, February 2020
37
Total North America Combine Sales
-1,000
1,000
3,000
5,000
7,000
9,000
11,000
13,000
15,000
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
Com
bine
Uni
t Ret
ails
Cas
h R
ecei
pts
(Mill
ions
)
NA Combine Retails US Cash Receipts, Crops
Source: AEM & USDA Feb. 2020
38
Technology supported by over 100 unique patents with an additional 30+ unique patents pending globally, and a permanent
technology-focused staff of 110
Technology and Innovation Leader
Continuously Setting the Standard in Specialized Harvesting Technology
Higher cutting speeds
Structural changes to improve
manufacturability, maintainability, durability,
and reliability
Improved cutterbar visibility
Reduced seed loss
Higher capacity (improved efficiency)
Industry leading road speeds
Improved crop flow and windrow formation
Improved lift and float of headers
Structural changes to improve
manufacturability, maintainability, availability,
and reliability
Improved operator comfort and interface
Market leading transport system
Broader range of conditioning options
Structural changes to improve
manufacturability, maintainability, durability,
and reliability
Improved crop flow and windrow formation
Improved performance in challenging
conditions
FlexDrapers® & Rigid Drapers Self-Propelled Windrowers Hay Products
39
MacDon Industry Leading Business and Market Share
Combine
FlexDraper®
Headers
Rigid Draper
Headers
Self-Propelled
Windrowers
(mid-horsepower)
Estimated Market Position
North American
#1
#1
#1
Strong Market Position in Key Product Categories
40
Market Share Penetration Ag - Key Growth Driver
Source: MacDon Internal, February 2020
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Combine Draper Market Share (Europe)
41
Transportation
42
Key Market Strategies - Flexible & Opportunistic
Transportation
Increase CPV in BEV,
HEV, FCV
Mine opportunistic ICE
market as volumes
decline but addressable
market increases
Grow integrated casting
and forging business
Carbon efficiency, light
weighting, noise reduction
Addressable market more than
doubles between 2019 and 2030
Source
IHS Forecasting 2000-2027 Advanced Consensus Projection 2028-2031
ii) Production Share of Technologies by 2031 of ICE 41%, HEV 43%, EV 16%, Fuel Cell 0.2%. (Based on Consensus Average of External Industry Expert Forecasts for EV adoption, Updated February 2020)
Actual IHS Forecast
Pure Battery EV penetration
reaches 16% of the market by 2031
Advanced Consensus
Projection
43
Technology Leadership Key to Growth
Lightweighting Solutions Green & Connected VehiclesInnovation in Design,
Development, and Manufacturing
Using unique manufacturing processes,
materials, and designs to produce lightweighting
solutions that achieve fuel efficiency & CO2
reduction
Ex. High pressure die-casting for
structural components
Ex. Adapting forging gear designs
& processes to achieve near net shape
Aluminum
Casted SolutionSheet Metal
Solution
45% Weight
Reduction
Innovative design & engineering solutions to
provide cost effective solutions to OEMs
Ex. Fully integrated eAxle systems for hybrid &
electric vehicles
Ex. Integrated hydroformed assembled camshaft
within one-piece cast aluminum carrier housing
with unique-to-Linamar manufacturing process
Utilizing Linamar product and engineering
expertise to find solutions in disruptive markets
and technologies
Ex. Vehicle to vehicle communication for smart all
wheel drive capabilities delivering information
over dedicated short range communication
Ex. Engineering & manufacturing next generation
hydrogen storage tank for alternative fuel
solutions
IceAsphalt
44
E Vehicles
Today & Tomorrow:
Linamar has the
Products!!
ICE & HEV
Tra
nsm
issi
on
Differential
Assemblies
Shaft & Shell
AssembliesGears
Transmission
Cases
Full Clutch Module
AssemblyFull Clutch Module
Superstructure Assembly
En
gin
e
Camshaft / Cylinder Head
Cover Module
Cast and Cubed / Fully
Machined Cylinder
Blocks & Heads
Camshafts Lower Engine
Crankcase Assembly
Turbo
Charger
Assemblies
Connecting
RodsBalance Shaft
Modules
PTUs RDMs Disconnecting AWD SystemsDifferential HousingEngineered Gear Sets eAssist Micro Hybrid Single Motor eAxleDri
velin
e
Shock Towers Cross Car Beams Centre Consoles Door Frames Seat FramesSubframes & Corner NodesKnuckles
Bo
dy
and
Ch
assi
s
Single Motor
eAxle
Dual Motor
eAxle
Commercial Vehicle
Solid Axle ePower Unit
Multi-Speed
eGearboxesDri
velin
e
Sys
tem
s
Battery Tray Housings Electric Motor Housings Hydrogen Storage Tank
EV
Mo
tor
&
Bat
tery
Mo
du
les
All E-Vehicles
45
Start Now
eAxle Innovation Outlook – New Technologies
Built customer
interest
Penetrated
electrification
market
Developed initial
engineering
capabilities
Initi
al P
roto
type
s First production
eAxle awards
Expanded
reputation
globally
Pro
duct
ion
Des
ign Focused on low
cost designs
Diversified
portfolio
Expanded
engineering
capabilities
Ref
ined
Des
ign
Adv
ance
d Te
chno
logi
es Pushed limits of
power density
and optimization
Performance
application
production award
pendingHig
h P
erfo
rman
ce Expanding to meet
customer needs for
advanced features
Building capabilities
for the following:
Park lock systems
Disconnect systems
eLSD
Multi-speed
gearboxes
46
Initial Commercial Vehicle fleet partnership development program
Installed in 4 test vehicles in the US for past year
2 eMotors
2 Gearboxes (2 speed)
2 Park Lock Systems
Gen I
Government body
Sponsored Collaboration
Program
Design optimized from Gen I
Similar performance,
simplified design
1 eMotor
1 Gearbox (1 Speed)
1 Park Lock System
Gen II
Optimized to meet multiple customer applications
Based off Gen II design and customer feedback
Low cost
High power density
Off-the-shelf design
Future Gen III
Developments
eAxle Innovation Outlook – Commercial Vehicles
47
LaunchesLaunching more than $4.2 billion of new work today
Sales from Launch add: $700 Million to $900 Million in 2020
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
4,500.00
2018 2019 2020 2021 2022 2023
Other Driveline Engine Transmission
48
Content Per Vehicle
150.37 153.82 159.07 163.85 166.17 $75
$85
$95
$105
$115
$125
$135
$145
$155
$165
$175
2015 2016 2017 2018 2019
North America
39.47 63.60 69.62 78.30 81.58 $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2015 2016 2017 2018 2019
Europe
6.70 8.32 9.66 9.82 9.72 $0
$2
$4
$6
$8
$10
$12
2015 2016 2017 2018 2019
Asia Pacific
49
-$10
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2015 2016 2017 2018 2019 2020 2021 2022 2023
Electric Hybrid ICE
Electrified Vehicles Key Growth Opportunity for Linamar
Updated: February 2020, estimates based on current projections and EV applications in market.
Expected BEV Global CPV 4 years out
same as ICE Global CPV 4 years ago
© Linamar Corporation 50
Medical/Age Recent Developments
51
Synaptive Medical Manufacturing
Agreement
Modus VTM is a advanced robotic and digital microscope
surgical system. Fully-automated, hands-free, robotically-
controlled digital microscope with advanced visualization.
Replaces current technology of static microscope with
limited field of view requiring manual adjustment which
surgeons need to maneuver around.
Modus V Advantages:
Optimized workflow during surgery
Potential for less invasive procedures for
patients
Improved operating room workflow
Better ergonomics for surgeons
52
Synaptive Medical Manufacturing Agreement
EvryTM is a revolutionary head-only MRI system.
Innovative, midfield MRI designed to be installed directly at the point of
care – ER, ICU, Operating Room with high performance imagery.
Offers a lighter weight, less costly installation, and lower ongoing
operational costs compared to current MRI systems.
Evry Advantages:
2,000 lb. vs 10,000 - 20,000 lb.
Install in 250 sq. ft. vs 1,000+ sq. ft.
Helium free reduces siting cost and ongoing service cost.
No cranes or rigging resulting in significantly less cost to
install
Install anywhere in hospital vs current systems that are
restricted due to size and weight.
Automatic planning of imaging to increase efficiency in scan
time
53
Financial Review
54
2020 expected to again generate
between $500 and $700 million of
free cash flow
Strong earnings;
Lower Capex than 2019
Leverage down to <1x EBITDA by
end of 2020
2020 Expected to Drive Solid Free Cash Flow
1 - Free cash flow is defined as cash from operating activities less payments for purchase of property, plant and equipment plus proceeds on disposal of property, plant and equipment
less dividends. All figures used in the calculation are presented in the Company’s separately released Consolidated Interim Statements of Cash Flows.
2 - Free cash flow has been adjusted for additions of property, plant and equipment related to the dissolution of a joint venture.
-
50
100
150
200
250
300
350
400
450
500
550
600
650
700
2015 2016 2017 2018 2019 2020
Mill
ion
s
Actual Target Minimum Target Maximum
55
Yearly Sales Growth
5,162.4 6,005.6 6,546.5 7,620.6 7,416.6 1,732.0 1,616.1
7,620.6 7,416.6
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2015 2016 2017 2018 2019 Q4 YTD2018
Q4 YTD2019
$ M
illio
ns
Annual Results Current Quarter YTD
56
Normalized Operating Earnings1
1Operating Earnings Normalized for unusual items and foreign exchange impacts from revaluation of the balance sheet
586.4 677.5 728.9 807.6 668.6 158.9 112.6
807.6
668.611.4% 11.3%11.1%
10.6%
9.0% 9.2%
7.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0
100
200
300
400
500
600
700
800
900
2015 2016 2017 2018 2019 Q4 YTD2018
Q4 YTD2019
$ M
illio
ns
Annual Results Current Quarter YTD Normalized OE as a % of Sales
57
Normalized Net Earnings1
Net Margin Expectations 2020: 6.25% to 6.75%1Net Earnings normalized for unusual items and foreign exchange impacts from revaluation of the balance sheet, tax affected
426.8 504.0 551.5 583.8 464.4 115.4 75.4
583.8
464.4
8.3% 8.4% 8.4%7.7%
6.3% 6.7%
4.7%
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
0
100
200
300
400
500
600
2015 2016 2017 2018 2019 Q4 YTD2018
Q4 YTD2019
$ M
illio
ns
Annual Results Current Quarter YTD Normalized NE as a % of Sales
58
Operational Capital Expenditures
CapEx as % of Sales – Normal Zone to Drive Double Digit Growth 6-8% of Sales
341.6 343.3 410.1 537.3 525.4 144.5 120.1
537.3 525.4
6.6%5.7% 6.3%
7.1% 7.1%
7.1% 7.1%
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
0
100
200
300
400
500
600
2015 2016 2017 2018 2019 Q4 YTD2018
Q4 YTD2019
$ M
illio
ns
Annual Results Current Quarter YTD Capex as a % of Sales
59
Net Debt to EBITDA
¹ EBITDA includes last 12 month rolling EBITDA on acquisitions.
11 1
0.24x0.96x 0.83x
1.68x 1.50x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
2015 2016 2017 2018 2019
Net Debt x EBITDA Target
Obtained 2019 target of debt reduction to level of 1.5x, 2020 targeting to be under 1.0x
60
Key Investment Themes
~ 1million shares
repurchased to date
2020 NCIB approved by
Board & set to begin
ASAP
Active Share Buyback
Massive Market
Opportunity in All
Businesses
MacDon growth potential
4x current footprint,
market share growing
Skyjack -- access market
$11 billion, few players,
market share growing
Transportation
addressable market >2.5x
increase in 10 years,
significant opportunity in
electrified vehicles
Market Share Growth
Offsetting Soft Global
Markets
Steady Boom and Telehandler
market share growth trend at
Skyjack
Global draper header growth
at MacDon
Content per Vehicle at new
highs in core NA and EU
automotive markets, Global
CPV growing
Market share growth will
accelerate top line growth
when industry volumes start to
pick up
Strong Free Cash Flow
Generated in 2019
Strong earnings, reduced
capex, improvements in
NCWC drove FCF1 of
$670M in 2019
2020 expect FCF $500-
$700 million on higher
earnings, lower capex
Net Debt to EBITDA 1.5
2020 Net Debt to EBITDA
should reduce further to
< 1.0x
1 - Free cash flow has been adjusted for additions of property, plant and equipment related to the dissolution of a joint venture.
Linamar Corporation
@linamarcorp
www.linamar.com
Thank YouLinamar Corporation
@linamarcorp
www.linamar.com
Thank You
