Leading in a Transitional World

Don Walker

August 2, 2017

Chief Executive Officer

The supplier industry is worth $1 TrillionMagna’s global ranking is #3

Our sales exceed $36 Billion

The world is changing.The consumer is changing.

Future Trends

Technology

Artificial Intelligence

Virtual / Augmented Reality

Internet of Things / Connectivity

Driverless Cars (ADAS)

Advanced Robotics

Advanced Materials

Additive Manufacturing

Drones

People & Planet

Urbanization

Health Care Advances

Aging Population

Global Warming

– Solar

– EV / Hybrid

Wealth Distribution

– People/Countries

Future Trends Impact on Mobility

Technology

Artificial Intelligence

Virtual / Augmented Reality

Internet of Things / Connectivity

Driverless Cars (ADAS)

Advanced Robotics

Advanced Materials

Additive Manufacturing

Drones

People & Planet

Urbanization

Health Care Advances

Aging Population

Global Warming

– Solar

– EV / Hybrid

Wealth Distribution

– People/Countries

Electrification

New Mobility

AutonomousDriving

Electrification

ICE62%

Microhybrid34%

PHEV3%

EV1%

2016

ICE31%

Microhybrid35%

Mildhybrid21%

PHEV10-12%

EV3-6%

2025

Electrification Take Rate – 2025

AutonomousDriving

Disclosure or duplication without consent is prohibited*Indicates Level 0-5, all other take rates are only Level 0-4

Level 017%

Level 124%

Level 237%

Level 318%

Level 44%

Autonomy Take Rate –2025

Benefits of autonomy:

• Greater road safety

• Independence for some

• More efficient travel

• Reduced congestion

New Mobility

Source: IHS

Miles Driven Globally 2016-2030

How does a supplier lead in a transitional world?

World Class Operations

Attract & Retain

Innovation

MagnaProductAreas

SEATING EXTERIORS VISION SYSTEMSCLOSURES

BODY & CHASSIS POWERTRAIN ELECTRONICS

Jaguar

BMW

Complete Vehicle Assembly

Disclosure or duplication without consent is prohibited

ePhaser

Electronic Purge

& Vacuum Pump

Primary

Electronic

Water Pump

eSupercharger

Thermal Management ModuleElectronic Cooling Fan

Plug-in Hybrid Dual Clutch

Transmission

Highly Integrated

eDrive System

Electronic Transmission Oil PumpSecondary Electronic Water Pump

Twin eDrive System

(Torque vectoring)

48V eAxle System

ICE / Stop-Start

Hybrids

Electric Vehicles

Powertrain Electrification

Disclosure or duplication without consent is prohibited

Pre-Collison Control

Automatic Emergency Braking

Lane Keep Assist

Advanced Lane Data

Vision-only AdaptiveCruise Control

Camera-Radar Fusion

Traffic Light Detection

Adaptive Suspension

Pedestrian AEB

Drowsy Driver Assist Road Surface

Characterization

Simple Radar Fusion

EDR – Event Data Recorder + Image

Capture

Following Distance Indication

Forward Collison Warning

Intelligent Light Ranging –

Matrix Beam

High-Beam Assist

Traffic Sign Recognition

Lane Departure Warning

ADAS Features

Level 3 Drive to Traverse City

#Automated2TC

Sources of Innovation

Internal

Cross Industry

Cooperation with industry players

VC’s

Universities

Start-ups

“Auto-Qualify”

MIT Startup

Partnerships

Technology Advisory Council

Silicon Valley

Automotive

Industry

Academia

Regional Magna

Legislation

CAPCIndustry – Led Organization