March 21, 2012 2012 21, March 2011 31, December ended FORM year the for INFORMATION ANNUAL CORPORATION LINAMAR FORM INFORMATION ANNUAL

1 2011 ANNUAL INFORMATION FORM 2 LINAMAR CORPORATION 9.3 9.2 9.1 9 8 7 6.1 6 5 4 3.12 3.11 3.10 3.9 3.8 3.7 3.6 3.5 3.4 3.3 3.2 3.1 3 2.6 2.5 2.4 2.3 2.2 2.1 2 1.2 1.1 1 SECTION CONTENTS OF TABLE

Audit Committee Directors andOfficers Market f Description ofCa Dividends Risk Mana Description ofCompan General DevelopmentoftheBusiness Corpora te Structure or Securities Facilities Employees Opera Eng Intellectual PropertyRights Research andDevelopment Quality Control Sales andMarketing Industrial Segment Powertrain/Driveline Segment General T Government Grants Credit Facilities Significant Facilities ExpansionandNewProg Over Intercorpora Name andIncorpora Relevant Educa Composition ofthe Audit CommitteeCharter General DescriptionofCa Contingencies

rends gement ineering andDesign view ting Philosophy

pital Structure

Acquisitions andDispositions

te Relationships

y’s Business

tion andExperience

Audit Committee

tion

pital Structure

rams

P AGE 23 21 20 20 19 19 23 23 23 20 19 18 17 16 15 15 15 14 13 12 11 10 8 4 4 9 8 7 6 5 4 4 4 13 12 11 10 9.5 9.4

T Interest ofMana Additional Inf Interests ofExperts ransfer Agents andRegistrars External Pre-Approved PoliciesandProcedures ormation gement and Others in Material gement andOthersinMaterial Transactions Auditor Service Fees Auditor Service

25 25 25 24 24 24

3 2011 ANNUAL INFORMATION FORM 4 LINAMAR CORPORATION Skyjack, all world leaders in the design, development and production of highly engineered products. The Company’sandManufacturing, (“ICE”)Driveline,EnergyCommercial Industrial– divisionsManufactur key 4 into dividedfurther are segment,which motion, work and lives. The Company is made up of 2 operating segments – the Powertrain/Driveline segment and the Industrial LinamarCorporation (TSX:LNR) diversifiedais global manufacturing Company highlyof engineered products powering vehicles, 2.1 2. incorporation. The percentages of voting securities owned by the Company, or over which the Company exercises control Thefollowingor direcis alist of the principal subsidiaries of the Company as of December 31, 2011 and their respective jurisdictions of 1.2 LinamarCorporation (“Linamar” or the “Company”)was incorporated pursuant to the Business Corporations Act() on Au 1.1 1. tion, are indicated. Unless the context requires otherwise, the terms “Linamar” and “Company” used herein refer to Linamar and its subsidiaries. office is located at 287 Speedvale Avenue West, , Ontario, N1H 1C5. subsidiaries since incorporation, most recently on January 1, 2008 with one such subsidiary. The Company’s registeredwholly-ownedits ofand more amalgamations headoroutstanding oneofnumberwithundertaken shares.common alsoa Linamarhas of Amendmentdated May1, 1998 when itsubdivided each ofits issued and outstanding common shares into three issued and gust 17, 1966. Linamar has subdivided its outstanding common shares several times since incorporation, most recently by Articles Linamar Antriebstechnik GmbH Linamar Plc. Linamar Holdings de S.A. de C.V. Linamar HoldingNevadaInc. Skyjack Inc. Linamar HoldingsInc. Subsidiary

N C O G I ntercorporate Relationships orporate Structure eneral DevelopmentoftheBusiness ame and Incorporation verview Hungary Mexico US Ontario Ontario Jurisdiction ofIncorporation 100 100 100 100 100 100 Ownership Percentage - - - Throughprecisionits machining businesses, Linamar principally engagesmachining in assemblyand automotivethefor indus Powertrain/Driveline Segment 2.2 energy and other industrial markets. The Company’s Skyjack division is noted for its innovative,systems designedhigh forquality passenger vehiclemobile markets.industrial The ICEequip group concentrates on similar products for on and off highway vehicle, ingandDriveline divisions focus precisionon metallic components, modules andsystems forengine, transmission anddriveline Centre is dedicated to innovation in the engineering and processing of Linamar’s products and the development of people critical On September 21, 2009, Linamar announced the grand opening of the Frank Hasenfratz Centre of Manufacturing Excellence. The is anticipated sometime in 2014. building another facility in Wuxi and securing another manufacturing facility in , . Start of production for both facilitiesby Chinapresence in expanding itsbeganregion. alsothisCompany expansion Thein and work theoversee to therelocated PresidentGroupPacific Asiathe Wuxi,China, inwithheadquarters Pacific are Asia The throughout 2011. grow continuedto Work in China is ongoing in the preparation to launch and the ramp up of various new programs. Sales in the Asia Pacific region assemblies, and develop its product design capabilities as well. facilitate the launch of new programs. Linamar continues to develop its manufacturing processes to include multiple component Linamarcontinuedhas manufacturingaddto spaceprecisionitsfor machining business overpasttheseveral yearsorderinto highway,globalvehicleoffothermarkets, andand ongenerallytrywhich involveslong-run long-term processes contracts.for a more fulsome description of these operating and geographic segments. Thereportable operating segments are the Powertrain/Driveline and Industrial Segments. Please refer to Section 3 of this AIFfor expected future growth of the Company. dent, Director of Finance, Director of Human Resources and a Vice President of Sales. Linamar believes this structure willamar Drivelinesupport Systems Group and Linamar Manufacturing Groups (Americas, Europe and Asia). Each Group has a Group Presi CompanyThe groupedhas facilities mainlyareas;fourkeyin Industrial, Commercial, Energy(ICE), Linamar Skyjack Group, Lin the Company’s four largest customers (Ford, Chrysler, GM and Caterpillar “CAT”) accounted for 62.8% of consolidated revenue. 12 countries in North America, Europe, Australia and Asia, Linamar generated sales of more than $2.8 Billion in 2011. For 2011, morethan 15,682 employees (as ofDecember 31, 2011) in39 manufacturing locations, R&D5 centers and 15sales offices in The Company conducts its operations in five geographic regions, , the , Mexico, Asia Pacific and Europe. With ment, notably its class-leading aerial work platforms and telehandlers.

F acilities Expansions and New Programs - - - -

5 2011 ANNUAL INFORMATION FORM 6 LINAMAR CORPORATION In December 2009, the Company announced the closure of Invar, one of its manufacturing facilities located in Batawa, Ontario and allocation was finalized in the third quarter of 2009. LLC, a machining facility in Florence, . Prior to this, Linamar held a 60% interest in the joint venture. On JanuaryThe 30,purchase 2009,price Linamar Corporation completed the acquisition of its joint venture partner’s interest in Eagle Manufacturing its machining and manufacturing expertise both outside and within the automotive sector. The Company continues to pursue business opportunities that will further develop its product and process technology and/or utilize 2.3 expansion in this new line of business. In 2011, the Sterling Energy Systems ( weresignificant business supplytheengineswinsinofsolar the for powered energysectorcontinuedpaves forwaytheitand provide,such asmachining, assembly anddesign, andisviewed growthasa sector forthe Company. In2009 and2010, there gas,wind, solar, nuclearotherandtechnologies. Theseindustries requireproducts services andCompanywellsuitedtheisto HeavyMachiningopportunitiesEnergythe&The Divisionfocuson formed towas presentedenergy sector, the in including oil, throughout 2009, 2010 and 2011. The OROS division has increased its scope of work in the contract assembly business for a variety of customers, new and existing sales opportunitiesinthosemarkets. receivedItbusinessits licence2011, early2010. Inin Skyjack established officesin Australia pursueBrazilandequipmentto In 2009, Skyjack established a representative office in , China to maximize on its equipment sales opportunities in China. Hungarian fabrication facility named OROS. Linamar’sIndustrial Segment iscomprised ofits Skyjack, Consumer Products, and anEnergy Heavy& Machining Division and a Industrial Segment and expanded facilities in Mexico and Hungary. manufacturer of powertrain components for the off-highway market. Also in 2011, the Company opened a new facility February15,2011,OninGroup,CompanyFameracquiredprivately-owned announced thethecertainit Germanyassetsathat of French to the Company’s success. a result on September 29, 2011, SES filed for Chapter 7 bankruptcy. wins in 2009-10) was on hold for some tme. Unfortunately, SES was not successful in obtaining the necessary financing and as

S ignificant Acquisitions and Dispositions “SES” ) Solar program (the major source of contract On March 4, 2011 the Company renewed the syndicated revolving credit facility for four years and increased the maximum avail At December 31, 2011 cash on hand was $99.1 million, including un-presented cheques of $7.4 million. 2.4 of them exceeded the significant thresholds for filing a BAR. pur thiscompletionoutstandingshares. shares,ofHungaryLinamarUponHungary representingthe approximately of 70.3% Linamar and several of the larger shareholders of Linamar Hungary. Linamar previously owned approximately 6,027,450 Linamar Hungary at a price of HUF 2,570 per share (approximately CAD 11.74 per share) in cash. The purchase was completed between Alsoin July 2010, Linamar announced that it had purchased afurther 2,469,728 of the outstanding ordinary shares of Linamar and an orderly wind-down of the plant thereafter. trade union completed consultations and entered into a closure agreement for the cessation of manufacturing by the end of 2010 review concluded that there was no viable future for the operation. During the third quarter of 2010, the Company and the Unite elsewhere. This came as a result of an extensive review into the prospects of the operations located in Swansea. Regrettably, the Wales initiated consultations with the Unite trade union at the plant on proposals to cease manufacturing and transfer production In July 2010, the company announced that its Linamar Automotive Systems Swansea Company (“LASSco”), located in Swansea, the orderly wind-down of Invar was completed in the second quarter of 2010. able under the facility from $520 million to $600 million. At December 31, 2011, the Company’s syndicated revolving facility had Linamar did not file a Business Acquisitions Report ( the Company to gain new manufacturing space for its expanding programs and new business wins. quired facility “PowerCor”. The Company also established new facilities in North Carolina, USA. These new facilitiesIn2011, the wereCompany toalso purchased enable the former Engel facilities located in Guelph, Ontario, Canada and renamed the newly ac on transmission component manufacturing, located in Montfaucon, . France;Famer Rivoire, specializing in gear finishing technology, located in St. Etienne, France; and Famer Transmission,Gier,focused in RomainSt. machining,component in enginelocatedlarge Industrie,specializesin units: Famerwhichbusiness three On February 15, 2011, the Company announced that it acquired certain assets of the Famer Group. The Famer Group comprises its equityinterestto100%. ing Linamar Hungary shares. Since July 2010, Linamar has purchased the remaining shares of Linamar Hungary, thereby raising chase, Linamar now owns approximately 8,497,178 Linamar Hungary shares, representing approximately 99.0% of the outstand

CreditFacilities “BAR” ) on SEDAR for any of the acquisitions discussed in this section, as none - - - -

7 2011 ANNUAL INFORMATION FORM 8 LINAMAR CORPORATION is required. Generally, to the extent that the program investment criteria and/or job targets are not achieved, a full or partial refund of the grants s s s Skyjack in the period from May 2008 to December 2011. The grant is dependent upon Skyjack satisfying expendituresmillion$41.9variousrelatedtoto incurred up byOntario governmentofthe grantSkyjackprogram and reached a agreement for invest extend the term. The term of the agreement was extended for a further three years to January 14, 2018. togovernment Ontarioagreedthe 2010,andLinamarDuring 2015. 14, Januarythrough 2005 14, January agreementwas Toextenttheinvestmentthe and/ortargetsjob met,notare pro-rata a claw-back arrangement exists. originaltheterm ofThe criteria and achieving a cumulative job target over the term of an agreement between the Company and the Ontario government. A grant from the Ontario government of up to $44.5 million is dependent upon the Company satisfying various program investment 2.5 OnJuly 22, 2010 the Company completed aprivate placement of U.S. $130 million aggregate principal amount of senior unse October 2009. inmature towere millionprincipalU.S.that$80thePrivateSeries amountCompanyPlacementofprepaid the thein NotesA U.S.$40 million principal amount has aten-year term and an interest rate of 5.33% per annum. In the second quarter of 2009, notes. Of the total, U.S. $80 million of the notes had a five-year term bearing interest at a rate OctoberInof 2004, 4.44%Linamar completed private peraplacement U.S.ofannum. $120 million aggregate principal amountseniorofThe unsecured remaining unsecured notes. These notes are due on September 15, 2021 and bear interest at a rate of 4.84% per annum. On September 15, 2011 the Company completed a private placement of U.S. $130 million aggregate principal amount of senior available credit of $265.3 million. Linamar has also arranged for grants based on investment criteria and job targets with several foreign governments, as follows: job targets are not met, a pro-rata claw-back arrangement exists. ment criteria and achieving a cumulative job target over the term of the agreement. To the extent the program investment and/or cured notes. These notes are due on July 22, 2017 and bear interest at a rate of 5.31% per annum.

G overnment Grants ' ' 3 TATE OVERNMENT OVERNMENT O F . ORTH O O F F # ( ' RLN   AROLINA NAY    UNGARY RAY    ERMANY - - variablevalvetiming, turbocharging, Ethanol, speedautomaticDieseleven9and7, fueland transmissions.8 Thesetechnolo Emissions requirements. Efficiencies will be achieved with increased penetration of such technologies as gasoline direct injection,legislated(U.S.CAFÉnewCorporate the AverageEconomy)of andmeeting Fuel much responseprimaryto the asviewed are over the next 5-10 years. Incremental improvements in conventional powertrain technologies such as engines and transmissions powered vehicles will become more prevalent within the industry but will only occupy a niche segment of the total vehicle market fuel economy improvement targets will drive continued development in Linamar’s core product areas. Hybrid and battery electric for a future of sustainable mobility within the transportation sector. The reduction of greenhouse gases emissions and aggressive The industry will increase its focus on green and environmentally friendly technologies as automakers and government set a course going forward. largely views continued improvement of the automotive industry and steady, albeit it modest, improvement in theAlthough general certain economy risks and some degree of uncertainty exist, particularly within the European region as mentioned above, Linamar forecasting service IHS Automotive, January 2012). (EstimatesMillion100.62017.overvehiclesaccordingindustrybyto 2012 Millionto79.6in oflevel forecast horizona from however,automotivevehiclelight production steadilyexpectedvolumes throughoutareincreasetoyearoverfive-year year the expectedis Europeintheir dueto debt and general economic concerns during 2012. globalFroma perspective goingforward to rebound from the financial crisis and the North American bankruptcies of General Motors and Chrysler in 2009. Some softness Automotive production levels are one of the largest significant factors affecting results. In 2011, light vehicleLinamar productionis impactedcontinued by various economic, industry and technological trends occurring within the Company’s external environment. 2.6 tures across all geographic regions to achieve greater economies of scale. Auto supplier companies with a broad global footprint forge closer relationships with key partners. Increasingly, automotive OEMs are creating common vehicle and powertrain architecRationalization of the automotive supply chain will persist as OEMs seek to reduce the number of suppliers they purchase from to years, which it expects to continue. positioned to manufacture these components, modules and systems. Linamar has benefited from this trend over the past several operationsmachiningassuchpowertrain andcapable supplierstoOEMs assemblythe Linamarwellare by aswork suchwho Companyoverthe next 10-20 years. Availabilitycapitalof andselective investment willnecessitate theoutsourcing non-coreof outsourcingOEMLinamar’s of powertrain drivelinekeyandsignificant productsmodules presentstill andaopportunity the for during idling or when stopped in traffic, it rapidly re-engages once the vehicle’s engine power is required again.) Enginecontinuing its dominance in the North Americanmarket. (Stop/Start is afeature that allows avehicle’s engine to shut off gies along with certain Hybrid features such as “Stop/Start” will play complimentary roles to the conventional Internal Combustion

T rends - -

9 2011 ANNUAL INFORMATION FORM 10 LINAMAR CORPORATION class-leading aerial work platforms and telehandlers. Company’s Industrial segment is a world leader in the design and production of innovative mobile industrial equipment, notably its and manufacture of precision metallic components, modules and systems for global vehicle and power generation markets. The Company’sThe PowertrainDriveline andsegment focuseddivisions collaborativeworldthe leadersare in design, development Linamaris a diversified global manufacturing Company of highly engineered products powering vehicles, motion, work and lives. 3.1 3. advantagetakepoisedgrowthtoisopportunities of developingbothin emergnewgeographic aswell world asregionsthe of Americanregiongiveandcompanythe moreavenues withinwhich growexistingto product processand capabilities. Linamar Linamar’sdiversification strategydecreaseseekstototaloverall the dependence automotive theboth on North market theand regions of the world based off existing North American platform designs. This trend is expected to continue. and close ties with existing OEM customers will benefit from this. Linamar is seeing opportunities to launch new business in other positively impact sales with penetration of new regional markets. growththroughout 2012. Additionally, Skyjackthegroup’s growingnetwork globaldistributionofsales & officesexpectedis to rentalas companies renewed theirfleets with current product. Skyjack’s primarymarkets areexpected seecontinuedto strong business is heavily reliant on the non-residential construction sector. 2011 saw substantial improvement PlatformAerialTheWorkover 2009. experiencedpreviousincycle itsyear of levelsbottom the fromreboundLinamar’s continuesdivisionto Skyjack construction. markets such as wind, solar, nuclear and oil and gas. Other segments include the other heavy industriesenergy ofsuchvariety asa rail,presencein Off-Highway,aminingcreating the as and Commercial iswellmarket Industrialand Vehiclesegmentsas ICE Group. The ICE Group is seeing strong market demand for its core machining and manufacturing services. This group’s Linamar’stargetcenteredlargelyon isstrategic objective Precisionand keyProductsdiversification non-automotive a of businessis diversification. platform. In addition, Linamar continues to investigate key emerging markets, like and Brazil, as opportunitiesLinamaropenedmanufacturingnewa forfacility Germanyingeographicsupport tomajor Europeana high volume a ondrivelineOEM system asitbecomes theworld’s largest domestic automotive market. Europe expansion isalso keyafocus forLinamar. During 2011, soundremain expectedto aredemanddomesticsales Chineseoperations. China’sas our productionwell autoschedules as industries.ing LinamartheSalesgrowthforexpectedsignificant continueplaceGroupfor isAsia toplans inwith expansion of

G D eneral escription of the Company’s Business - differentiatedbythe products that each produces and reflects how the chief decision makers ofthe company manage the busi Thecompany reports itsresults operationsof twoinbusiness segments: Powertrain/Driveline andIndustrial. The segments are 3.2 Linamar Corporation and its industry leading products and services, visit www.linamar.com. informationaboutmore 2011.For inBillion $2.8 than moreAmerica, Europe,of generatedsalesAsia,LinamarAustraliaand Withmorethan15,682 employees manufacturing39in locations, R&Dcenters5 salesand15 offices countries 12 in Northin and expanded facilities in Mexico and Hungary. sales from new and expanded facilities such as the acquisition in France of the Famer Group, the Company’s new German facility theCompany’s substantial book of launch business; 2) higher volumes on increased consumer demand in the US; and 3) higher paredwith$2.08 billion 2010. The 2011sales increase wasimpacted by: significant1) levels newlyoflaunched programs for SalesforthePowertrain/Driveline Segment increased approximatelyby $458.8 million, or22.1% to$2.53 billion in2011 com including CAT, Chrysler, Ford and GM. suppliers,theirNorthandAmerica Powertrain/Drivelineoperations inwiththe principal customersOEMs forThe areSegment housings, liners and pistons, injectors, cases, vacuum pumps, oil pumps and water pumps. blies, camshaft assemblies, crankshaft assemblies, and connecting rods, as well as intake manifolds, gears, flywheels,dressed engine, covers or an engineand module. Its focus is on cylinder blocks and assemblies, cylinder heads and complete head assem manufacturesand assembles every key mechanical component oftoday’s modern engine. Itcan provide fullya assembled and flanges,bearingcaps,yokes, sprockets, assemblies.shaftcases,carriersaxleandand Powertrain/Driveline The Segmentalso gears, joints and fittings, power steering pumps, cross members and assemblies, column components and assemblies, races andcomplete steering and suspension sub-assemblies and modules, control arms and assemblies, power steering and rack drivetrainhousings,configurations. In the driveline area, it also focuses on steering knuckles and assemblies, of drumstypes and rotors allas well as for modules sub-assembliesandtransmissioncovers, and components,housing and assemblies gear planetary transmissioncases, shafts, shafts and shell assemblies, clutch modules, and valve bodies, aswell astorque converters, pumps, highqualityusedinaretransmission, enginedrivelineand transmission/driveline systems.onfocusis Its powertransfer units, ThePowertrain/Driveline Segment manufactures and assembles all ofthe precision-machined components and assemblies that America, Europe and Asia. Northcountries in 7 inoffices sales 7Powertrain/Driveline manufacturingandcentersThe 28locations,R&D hasSegment3 groups. componentssegments and the Industrial Segment comprises the Skyjack, consumer products, European fabrication and energy drivelineengine,transmissionvehicleand other automotiveand Powertrain/Drivelinethetogether Thebrings Segment ness.

P owertrain/Driveline Segment - - - 11 2011 ANNUAL INFORMATION FORM 12 LINAMAR CORPORATION s engineering driven designs, complete customer and product support and the Skyjack commitment to exceed customers’ expecta platforms,focused onproduction ofthe industry’s most reliable scissor lifts. Skyjack offers innovative products through creative workaerialmanufacturerleading of a notablymost is butabove noted asmarkets ofvariety aIndustrial servesSegmentThe 3.3 full-serviceon engineering andmanufacturing support forallthePowertrain/Driveline products fortheentire European automo TheCompany’s Powertrain/Driveline and Industrial segments both have operations inEurope. TheseEuropean operations focus The salesincreasewas: IndustrialThesegment (“Industrial”)2010. from 2011$326.6productmillion increased$173.4salesinmillion to 113.2%or Segment salesin2011. division experienced a significant decline in the agricultural and turf markets it supplies which had a large impact on the Industrial The Consumer Products division saw decreased sales in both trailer and lawnmower products in 2011. Linamar Hungary’s OROS in each driving sales growth in 2011. The Industrial Segment’s Linergy division was established to focus on energy and heavy machining markets and is making in roads rope, Australia and Asia. TheIndustrial Segment has11 manufacturing locations, R&D2centers andsales8 offices countriesin8 inNorth America,Eu engine powered scissor lifts, telescopic boom lifts, telehandlers and other aerial work platforms. tions. Themajority of Skyjack’s sales are in the North Americanmarket. Products include both battery powered and combustion purchased. Linamar Hungary’s manufacturing facilities are located in Orosháza and Békéscsaba, Hungary. ment.automotiveThe facilities divisionsoriginalnewLinamaronefirsttwobuildingdate operateandHungarywas the in from productswhichmanufacturesautomotiveprimarilytheofforone sector and agricultural equipmentotherindustrialand equip andassembles other industrial products. Linamar Hungary operates through three separate divisions, two of which manufacture equipment. It also assembles aerial lift platforms and manufactures and assembles other industrial products. It also manufacturesagriculturalcomponents,otherautomotiveindustry, and subassemblies theheadsmanufacturesand assembliescorn forand andcomponents engineeredhighlyassembles Company’soperations,and Europeanmachinesthe of Hungary,Linamarpart two development centres (in Germany and Hungary) and four sales offices (in Hungary, Germany, France and the agriculturalUnited and industrialKingdom). products. European operations have eight manufacturing facilities (in Hungary, France, and Germany), tive and commercial vehicle market. The same advanced manufacturing and leading-edge technologies are also employed in its

I ndustrial Segment initiatives; and P RIMARILY D UE T O S IGNIlCANT I NCREASES I N D EMAND I N T HE A CCESS E QUIPMENT M ARKETS R ESULTING F ROM m EET R EPLACEMENT - - - - Kingdom, Germany, and China. The various internal divisions and subsidiaries of the OEMs generally initiate their ownStates,United UnitedMexico,purthe the in establishedoffices sales now hasCompany offices.TheU.S.sales Canadianand its Linamar’sprecision manufacturing operations sell its products directly to its customers in Canada and the United States through 3.4 s Suchreleases aregenerally issued forplanning, rawmaterial andproduction purposes overthreeafour tomonth period adin whenLinamar receivesrelease acontract, undersucha authorizing producetoitdeliver and specific quantities product.theof The Company usually receives contracts to produce particular parts for multiple model years. Firm orders are usually only created nents of the type produced by Linamar typically continue for between five and ten years. an opportunity to supply such products for longer lifecycles. The production runs or lifecycles for engine and transmission compo Linamar has been able to obtain production contracts for new or redesigned product introductions from its customers, it will have engines and transmissions tend to be relatively longer than those of other automotive systems, management believes that where and in particular larger and more complex products with increased content and features. Additionally, as the product lifecycles of pliers a greater proportion of the supply of components, assemblies, modules and systems within the powertrain and other areas, Linamar believes that there are significant opportunities for growth as a result of the continued trend for OEMs to outsource to sup suppliers are generally referred to as either “Tier 2” or “Tier 3” suppliers. parts. Depending on their level of sophistication in respect of engineering, manufacturing and other relevant skills,componentssomesuppliersorother producingfor assemblies,these on In OEMs, rely suppliers systems for mayand modules1 Tieror other reduce or otherwise manage inventory levels. capabilityto supply these components, assemblies, modules or systems to the OEMs on ajust-in-time basis, which helps OEMs components, assemblies, modules or systems and then complete the assembly of the vehicle. Tier 1 suppliers generally have the nowbeing manufactured and assembled into components, assemblies, modules or systems by Tier1 suppliers. OEMs purchase term purchase orders by OEMs as a result of their involvement in the development of components with the OEMs. Many parts are generally referred to in the automotive industry as “Tier 1” suppliers. Tier 1 suppliers (including Linamar) may be awarded longer design,involvedthebein which mayengineering, andOEMs supplydirectlythe to manufacture quality andcontroltesting are A significant portion of Linamar’s sales in its precision manufacturing operations are to the automotive industry. Companies which chasing decisions and thus each OEM may constitute, in effect, several different purchasers.

S tolaunch. Fabrication Division, as well as increases due to the energy programs that were awarded and now have started ales andMarketing T O A L ESSER E XTENT D UE T O I NCREASES I N D EMAND I N T HE A GRICULTURAL E QUIPMENT M ARKETS S ERVICED B Y T HE % UROPEAN - - - - 13 2011 ANNUAL INFORMATION FORM 14 LINAMAR CORPORATION processesand the method forimplementing the changes. Thesecond step involves the establishment ofstandardized work in streammaps which allow the Company todetermine its current processes, the changes itwants toimplement toimprove these its goal of being a lean, cost effective entity. LPS can be divided into three steps. The first step in the system is to develop value LPSisaimed eliminatingat waste both intheproduction process andthroughout theorganization tohelp theCompany achieve Linamarhas, since2002, followed theLinamar Production System (“LPS”), whichbasedis upon the ToyotaProduction System. of products, however, it is possible that in the future the number of such claims may rise. The Company traditionally has experienced a very low level of warranty claims. As Linamar becomes more involved in the design registered. ISO-14001facilitiesareits of 31 thatfact thedemonstrated alsoenvironmentby isthe Linamar’sofquality thededication to quality.Company’stodedication thecustomers its registrationsdemonstratestothese of Linamar’s pursuitactive suppliers. improvedwherepossible. December At 31, 2011, Company’stheof36 facilities wereeither ISO-9000 or TS16949 registered performsalsoongoing machine, processgaugecapabilityand studiesensurequalitythattoproductivity and maintainedare or operator the ability to rectify deviations that might otherwise lead to quality problems or unnecessary machine wear. measuringThe Companyand monitoring equipment and utilizes a program known as “Statistical Process Control”. ThisLinamar program has identified gives and pursuesa qualitymachine control as a key driver of its business. The Company has invested heavily in advanced 3.5 problems, re-sourced to Linamar for production at its facilities. OEM facilities or at the facilities of one of the Company’s competitors and are, for various reasons,productionat suchinalreadytypically as are programscapacityre-sourcing basis.Such aor productionproductiononprogramsobtains also Company The part for that vehicle. particularvehiclemodeltype,modelorordinarilywill it continueproduce throughoutparttoutilizesthe OEM the time such the suchproduct, it has been Linamar’s experience that, once it has received acommercial production order to produce apart for a not usually contractually committed to using a particular manufacturer to supply a product throughout the time the OEM requires estimates and such production may be delayed or cancelled, sometimes with little compensation to Linamar. Although OEMs are incorporated. OEM production levels of a particular vehicle model or engine or transmission type may vary significantly from OEM is partthewhich intypemodel specificormodelthe of vehicles OEMdependentnumbertheproducedof theis uponyearby vance of anticipated delivery dates. The actual number of parts produced by the Company under any specific contract in any given – sort, straighten, sweep, standardize and sustain. Throughout 2011, LPS has been successfully implementedis theat implementation each facility of a 5S andWork Place Organization Plan. The 5Ss are letters from words that lead to work place organization structions and the development of the best possible work instructions for an activity to eliminate waste. The last step of this system

Q uality Control - transmission development programs and to develop components, modules or systems that either replace products currently pro Linamar’semployees and sales representatives attempt tobecome involved asearly aspossible inthe OEM vehicle, engine and 3.8 any particular right would not have a material effect on its business. licensed to use third party, intellectual property. The Company’s intellectual property rights are an important asset, but the loss of Linamarpatents,itsuses trademarkscopyrights manufacturingandits in businesses, licensesboththirdparties,andto is and 3.7 The Company has four development centres – one in Ontario and one each in , Germany and Hungary. McLaren Perfor at each facility by the regular line personnel in response to opportunities as they arise. Linamar’sresearch anddevelopment activities encompass both process andproduct development. Much activity isundertaken 3.6 continues to be an ongoing focus of activity. this manner, the OEM and supplier cooperate on design, product and process engineering and establish the productselling design price phase, and providedother the supplier meets various price, service and quality standards. When a supplier is pre-sourced in It has become increasingly common for OEMs to identify a supplier as the source for a component, module or system during the leads to orders for commercial production of the components, modules or systems for such vehicles, engines or transmissions. earlythatinvolvementsupplier developmentathe inby vehicle new enginetransmission newamodelcycle or orof typeoften ducedLinamarbyrepresent or strategically important product opportunities Linamar.for beenhasCompany’stheIt experience tario, the focus of which will be on research and development. Please refer to section 2.5 for a full description thereof. Asnoted in section 2.5, both the Company and Skyjack have entered into an investment agreement with the government of On success. innovationto engineeringthein processingand Linamar’sof products developmenttheand peopleofcritical Company’stheto Linamarannounced grandopeningFrankthetheHasenfratzof CentreExcellence of Manufacturing. in Centrededicated Theis 2009,September21,centre.training On technologyand a ofopening announcedthe Company the2.2, section in noted As is particularly known for its expertise in the engine area. mance provides much needed capabilities in terms of product design, development, testing and analysis. McLaren Performance

R E I ntellectual PropertyRights ngineering and Design esearch andDevelopment - - - 15 2011 ANNUAL INFORMATION FORM 16 LINAMAR CORPORATION pay, hours of work, sources of supply and contracts to be performed. productionexpertise whohasdiscretion, within broad guidelines established theGroup’sby management, determineto ratesof productlaunch capabilities. Each facility in agroup is operated as aseparate profit centre managed byageneral manager with assemblies and modules and has created “centres of excellence” which are designed to deliver superior quality,creation development, of the and Company’s two operating groups, Powertrain/Driveline and Industrial, aligned facilities aroundLinamar’s specificorganizational components,performance,Companystructurefocusontheallowtofor aimedto is opportunity innovation.and The 3.9 Linamar recognizes that in order to remain a Tier 1 supplier, it must maintain its ability to provide complete engineering, develop relevant considerations through a negotiation process. between the OEM and the supplier. spaceparametersand certain andspecifications supplier, theto engineeringthebut responsibility cooperativeremainsa effort particularOEM’sthethe product tospecifications. extremesbetweenprojectsthesetwoprovideareInOEMswherefunctional projects.other extreme,othertheretaincomplete Atmayengineering OEMs supplier requirethe control manufacturethatand Linamarengineeringin andrelated costsandmay, depending thevalueonadded andother factors, yieldhighera margin than totaltakeresponsibilityto engineeringfor relatedthe andtechnologies. Theseprojectstypically greaterinvolveinvestmenta by nents, modules or systems. In some instances, the OEMs will provide basic functional parameters OEMs,and the particularlysupplier in willNorth be America,expected provide varying levels of engineering specifications to suppliers when sourcing parts, compo transmission shafts, differential assemblies, clutch structural components and transmission support assemblies. industry and trans-axles for the utility vehicle industry. Linamar is now recognized as a full service suppliercomponents.tive forexample,For successful beenCompanydesigningpower hasthedeveloping inaccess andequipment the axlesfor transfer units, itsworkforce.of Linamar initially worked withnon-automotive customers orderingainto the experience necessary automofor subcontractorsand other external services. Linamar strives to maintain its technical and engineering staff at approximately 25% required.supportasing projectsLarge sometimes require supplementing in-houseengineering capabilitiesof usethroughthe Linamar’s engineering staff uses a variety of CAD/CAM systems and work closely with production personnel in providing engineer and testing capabilities in the engineering and design area. volume global program for a leading European OEM. This work has been won as a result of Linamar’s increased focus on people pliers. The Company has been awarded significant design programs for the Big Three OEM’s. and named as a supplier of a large played a key role in Linamar being named a global strategic supplier for CAT and one of Ford’s Aligned Companyplants.BusinessLinamarRecently,the all engineering expertise ofFrameworkin the people approximately 611 consistedSupof staffdesign ment,prototype, testing and production capabilities. Asof December 31, 2011, McLaren Performance, plus the engineering and

O perating Philosophy - - - - - operating segments: At December 31, 2011, the Company had 15,682 employees worldwide working mainly in the following countries and reportable 3.10 Linamarcoordinates its quoting process for new business through its Powertrain Center of Excellence office, with input from ap approximately 5–10% in cost savings. and the movement of parts and products around the facility to identify potential efficiency gains. CATs haveproduct been or knownprocess toand analyzeachieve such factors as the utilization of equipment, tools and manpower, interaction with sub-contractors theirfacilities usetoCost Attack Teams(“CATs”) promoteto efficiency andcontinuous improvement. CATs focusparticularaon effectivecentretheandimplementation managementof incentive programs. CompanyThe encourages ofeachgroups andits operational decision-making and cost control to occur at the group and facility level, thus permitting the monitoring of each profit businessopportunities.allowsnewalso toquickly reactIt toLinamarallows group afacility withineachindependence The of which determines and tests best practices and optimum use of technology. amar has also established a Technical Review Board comprised of a team of cross-functional experts from manufacturingfunctional facilitiesteams ineach plant andincorporate policies andprocedures which meet orexceed ISO-9000 quality guidelines. Lin throughtocommercial production and inrespect ofcontinuous improvement processes. Thesesystems generally involve cross- Linamar utilizes program management systems in its manufacturing operations to manage product supply from initial concept on ing, quoting and product development resources in order to better meet the expanding needs and expectations of its customers. plicable facilities and final approval from the Group offices and production facilities. The Company continues to expand its estimat Industrial Segment Powertrain/Driveline Segment Wales, & Europe Asia Pacific United States Mexico France Hungary Germany Canada By Reportable Operating Segment By Country

E mployees 1,636 12,267 Approximate No. of Employees 41 714 495 3,146 373 2,218 688 8,007 Approximate No. of Employees - - - 17 2011 ANNUAL INFORMATION FORM 18 LINAMAR CORPORATION efficient. No facility was formally or fully closed in order to allow for rapid availability of space as might be required to take advan were consolidated into Skyjack Inc. These consolidations took place throughout the year to make manufacturing operations more muchof Traxle Parts’operations wereconsolidated intoCorvexManufacturing. Finally, Linamar Consumer Products’ operations CamcorManufacturing division. Alarge part of ArissManufacturing’s operations was consolidated into TraxleManufacturing and severalconsolidationsplantwereCemtolManufacturing’sThere2009.of part large in A operationsconsolidatedwasthe with 3.11 2009,collectiveanLinamarDecember3,agreement.aOn tosubject areGermany or StatesUnitedCanada, the in working Employeesworking in the facilities located in Mexico, France, Hungary and China are covered by labor contracts. No employees the internal audit requirements in place to maintain registration. the next 12-18 months. This registration requires all facilities to have an independent third party audit annually18001 at as a at minimumDecember with 31, 2011, 85% of its plants were successfully registered, with the others ratescheduled of 6.92. to beThis is registered32.36% lower thanwithin the industry rate. Linamar has also mandated that all plants be registered under the ISO The health and safety of all employees in the workplace is a priority. Linamar’s global lost time injury rate is 4.68 versus an industry goals and provides feedback on successes and areas for improvement. employee satisfaction and financial satisfaction. This program links the compensation of all employees to achievement of specific programmonitors howeach separate facility isperforming against keymeasurables inthethree areas ofcustomer satisfaction, a “balancedscorecard” programincentiveCompanyitstheaasrefers “Steppingprogramofpart to as Success”. Stool of This Allfacilities have regular employee meetings to keep employees informed of changes within the Company. TheCompany utilizes amicably.resolvingissueslabourof history a hasemployees andrelationshipsitsmaintain good with tostrivesCompany The ally operate at or near 90 to 95% of production capacity. Most of Linamar’s existing manufacturing facilities can be adapted to a The principal facilities utilized by the Powertrain/Driveline Segment range in size from 70,000 to 150,000 square feet and gener America, Europe and Asia. Northcountries in 7 inoffices sales 7Powertrain/Driveline manufacturingandcentersThe 28locations,R&D hasSegment3 tage of opportunities in coming months. customer or financial concerns with the closure of this facility. fullyconcluded facilitytheand ceasedmanufacturing Decemberon 18, 2010. siteThesoldwillthereandemployee,benoare Linamarannouncedcommencedhad itthat consultation discussionsLASSco thefacility.at Theseconsultations weresuccess 2010,7,facility. July this Onof closure the withconcernsfinancial remainingemployee,or customer no are otherwisethere sold be operations.toslated Invar.propertyofis downclosureThe of orderlywind nounced the throughworked an has Invar

M anufacturing Facilities - - - - Discussion and Analysis for the year ended December 31, 2011, which discussion is incorporated herein by reference. the financial condition of the Company. prevailing financial, economic, operating and other relevant circumstances, including earnings, cash flow,Thepayment and amount offuture capital dividends isrequirementsin the discretion of the Board andofDirectors and issubject to, among other things, to shareholders of record on April 2, 2012. quarter ended December 31, 2011 of $0.08 per share on the common shares of the Company, payable on or after whichApril increased16, the2012 quarterly dividend by $0.02 per share. The Board of Directors approved an eligible dividend in respect to the to dividends payable on or after April 15, 2010. In the fourth quarter of 2010, the Company further amended the dividend policy, 2009,the Company amended the dividend policy with payments tobe made quarterly atratea of$0.06 per share with respect theCompany continued itsdividend policy withpayments madequarterly ratea$0.03ofat pershare. theInfourth quarter of 2009,expectedperformance.In andyears priorperformance in quarterlyondividends basedpaid 1995, hasLinamar Since 5. The Company’s discussion of risk and risk management is contained on pages 4. Risk Management for the year ended December 31, 2011. material liability from such lawsuits and claims other than the amounts already provided for in the Company’s financial statementsLinamarinvolvedis certainin lawsuits andclaims. Management theopinionofis thattheCompany willnotincur anyadditional 3.12 new programs, shifting what are normally fixed costs and allowing growth even in times of limited capital spend, as seen in 2009.lines are scalable to match customer demand as it might increase or decrease, allowing the company to reallocate equipment to for low cost retooled for another program as required to meet changing customer capacity requirements. This means production focuses on utilizing flexible, modular CNC programmable machines to tool up its programs, meaning equipment can be easily and varietyofmanufacturing processes without significant capital expenditures, other than fornew equipment. Importantly, Linamar

D C ontingencies ividends 13 to 17 inclusive of the Company’s Management 19 2011 ANNUAL INFORMATION FORM 20 LINAMAR CORPORATION period from January 2011 to December 2011 are as follows: The price range and total volume of trading of the common shares of Linamar Corporation on the Toronto Stock Exchange for the “LNR”. Thecommon shares theofCompany arelisted andposted fortrading theon TorontoStock Exchange under thetrading symbol 7. Thematerial characteristics of the common shares are: aholder is entitled to attend and vote at all meetings of common share in series. The Company is authorized to issue an unlimited number of common shares and an unlimited number of special shares issuable 6.1 6. To date, only common shares of the Corporation have been issued. There are no special shares of any series issued or outstanding. shares of any series such other preferences as they see fit. in the event of liquidation, dissolution or winding-up of the Corporation; and the Directors of the Corporation may give the special Corporation and any other shares that may rank junior to the special shares, with respectassetsCorporation;the ofof specialtothe shares each seriesofentitledpreferenceshall beprioritya to common overthe sharesthe of in the payment of dividends and series with respect to priority on the payment of dividends and with respect to priority on return of capital or any other distribution thespecial shares of each series; the special shares of each series shall rank on a priority with the special shares of every other Board of Directors shall determine the designation, rights, privileges, restrictions, conditions and other Company’sprovisionsthe bynumberDirectors’ fixedsetseries,Boardofeach respectseries,a with toCompany’s be theto series eachto be attached to Thematerial characteristics thespecialof shares, class,aas are: thespecial sharesissuedbemore maytimeoneanyorin at dissolution. Corporationtheremaininguponpropertyshares, receive theof oftoclass rights,other the anyprivilegesconditions toandto shares,of receivetodividend any if,whenand declaredas Company’sthe by BoardDirectors;of and, shallentitled,be subject holders and to one vote per common share; is entitled, subject to the rights, privileges and conditions attaching to any other class

G D M eneral Description of the Capital Structure escription of Capital Structure arket forSecurities - Name, Address, Occupation and Security Holdings and Corporate Governance Committee are both comprised of entirely outside directors. Committee,and has prescribed their respective responsibilities and mandates. The AuditCommittee and the Human Resources ofDirectors hasestablished twostanding committees, an AuditCommittee andHumana Resources andCorporate Governance close of the next annual meeting of shareholders of the Company or until his or her successor is elected or appointed. The Board Thefollowing table sets forth information with respect toeach ofthe directors ofLinamar. Each director will hold office until the 8. Puslinch, Ontario, Canada William Harrison Guelph, Ontario, Canada Mark Stoddart Guelph, Ontario, Canada Linda Hasenfratz Ariss, Ontario, Canada Frank Hasenfratz of Residence Name & Municipality Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

(1) D irectors andOfficers Closing price on the last trading day of the month. 1,2

15.44 15.86 16.29 15.74 19.71 21.89 21.98 22.36 22.15 21.92 23.23 23.36 ($/share) High Price 1990 1999 1998 1966 Director Since 13.33 13.29 13.30 12.55 14.16 19.05 19.24 20.30 20.45 19.40 20.84 20.36 ($/share) Low Price None Marketing Executive Vice President of Chief Technology Officer and Chief ExecutiveOfficer Chairman oftheBoard Company currently held with the Other Positions and Offices 13.66 15.64 19.24 21.95 21.36 21.23 21.01 21.02 21.12 ($/share) Close Price 14.00 13.55 15.82 (1) nologies Inc. (manufacturing) Executive Officer of Lift Tech Retired Chairman and Chief Marketing of the Company Executive Vice President of Chief Technology Officer and of the Company Chief Executive Officer of the Company Chairman of the Board Principal Occupation 905,763 1,843,446 862,535 968,298 866,139 1,313,483 1,918,297 1,459,077 1,704,317 Total Volume 1,358,188 1,424,191 557,693 - 21 2011 ANNUAL INFORMATION FORM 22 LINAMAR CORPORATION The following table sets forth information with respect to the current officers of the Company. During the last five years, all of the Company’s directors have held the principal occupations noted above. Kitchener, Ontario, Canada Terry Reidel Bright, Ontario, Canada Clarkston, Michigan, USA Nick Adams Bloomfield Hills, Michigan, USA Brian Ahlborn Guelph, Ontario, Canada Ken McDougall London, Ontario, Canada Brad Boehler Guelph, Ontario, Canada Dale Schneider Burlington, Ontario, Canada Roger Fulton Guelph, Ontario, Canada Mark Stoddart Guelph, Ontario, Canada Jim Jarrell Guelph, Ontario, Canada Linda Hasenfratz David Buehlow Name &MunicipalityofResidence of Residence Name & Municipality G N P V M S D D 2 1 ice-President-Operations at Skyjack Inc. from July 2005 to December 2006, President at Skyjack Inc. from December 2006 to September 2009 and Group President owertrain Mexico from September 2009 to December 31, 2010; (iv) Brian Ahlborn, who was the Vice President Corporate Development from August 2005 to afety in 2007, then promoted to Vice President, Engineering in February 2009. In April 2011, Brad took on the additional responsibilities of Vice President, Sales and Member of Human Resources Corporate and Governance Committee Member of Audit Committee lobal Sales until December 31, 2010. ovember 2008 and the Chief Executive Officer at Transonic Combustion Inc. from January 2008 to September 2010, and (v) Nick Adams, who was Vice President ecember 2010 and EVP of Finance until his appointment into the position of Chief Financial uringOfficer the last infive years,November the2011; Company’s (ii) Bradofficers Boehler,have held the principal occupationswho was notedDirector above exceptof for:Product (i) Dale Schneider, who was Corporate Controller until arketing and in July 2011 became the interim President of Skyjack, until his formal appointment in that position in January 2012. (iii) Ken McDougall, who was 1,2

1,2

2003 1998 Director Since None None Company currently held with the Other Positions and Offices and Energy Manufacturing Group Group President Linamar Industrial Commercial Group PresidentLinamarDrivelineSystems Group President Linamar Manufacturing Americas President, Skyjack Inc. Chief FinancialOfficer and Corporate Secretary Executive Vice President, Human Resources, General Counsel Chief Technology Officer and Executive Vice President of Marketing President & Chief Operating Officer CEO Principal Occupation Electroplating Inc. (manufacturing) Operating Officer of Kuntz Retired President and Chief (accounting firm) of PricewaterhouseCoopers LLP Lybrand LLP, a predecessor firm Retired Partner of Coopers & Principal Occupation Mr. Reidel has extensive financial experience. He is the recently retired President and Chief Operating Officer of Kuntz Electroplat years of his career at PricewaterhouseCoopers LLP (formally Coopers and Lybrand), and was a partner for 27 years. Economicsin1957. Mr. Buehlow earned his C.A. designation from Queen’s University in1961. Mr. Buehlow spent the next 37 Mr. Buehlow has extensive financial experience. He attended the University of Western Ontario and received a Bachelor of Arts in 9.3 independent and financially literate. Members of the Audit Committee are David Buehlow, Terry Reidel and William Harrison. Each member of the Audit Committee is 9.2 Attached as Appendix “A” to the Annual Information Form is the charter for the Company’s Audit Committee (the “Audit Committee”). 9.1 9. the Company). control or direction over a total of 19,215,619 common shares (representing approximately 29.70% of the outstanding shares of As at the date hereof, the directors and senior officers of the Company, as a group of 13 persons, owned beneficially or exercised HandlingIndustries, with operations inNorth America,Italy, Germany and Sweden. Heis an independent director ofthe Board of LiftTechnologies ofContainer MaterialHandlingCEOandChairmanthe attachmentsand Inc, andformanufacturers masts of responsibilitiesof Executive VicePresident and Director of Cascade Corporation in 1997 and 1998 and from 1999 to 2008 was IndustrialtheEquipment MobileIndustry,onNorth America, tookoperations inthen withJapan.Europe, Bill China, and PresidentChiefExecutiveasandKenhar Corporation,Officer of globalsuppliercomponentsMaterialstheaof Handling to and Managerand VicePresident. attendedHe YorkUniversity’s Faculty Businessof postgraduate studies. Billthen spent years21 Engineering.cal joinedthenBillthe Allis Chalmers Corporation workingCanada,inGeneral Uniteda theEuropeStates andas Mr. Harrison attended the University of Guelph and the University of Toronto, receiving degrees in Honours Science and Mechani several publicboards. WaterlooRegion Office. Mr. Reidel earned hisC.A. designation from Queen’s University in1967. Mr. Reidel isalso directora on Prior to joining Kuntz, Mr. Reidel spent 39 years with accounting firm of Ernst and Young and was Office Managinging Inc., PartnerKitchener-Waterlooa of their company founded in1948. Mr. Reidel joined Kuntz inMarch of2001 as VicePresident- Finance.

R C A A elevant Education and Experience udit CommitteeCharter udit Committee omposition of the Audit Committee - - 23 2011 ANNUAL INFORMATION FORM 24 LINAMAR CORPORATION Includedproperty,coststheofin plantequipmentandconstructionthe is buildings, of building additions buildingand improve materially affected or will materially affect the Corporation or any of its shareholders. the Corporation, nor any associate or affiliate thereof, has had any material interest, direct or indirect, in any Duringtransactionthe year ended December which 31, has 2011, other than as described below, no Director, senior officer or principal shareholder of 10. following fees to the Company: Forthefinancial years ended December 31, 2011and December 31, 2010, PricewaterhouseCoopers LLP(“PwC”) charged the 9.5 the auditors providing such services. Allnon-audit services to be provided to the Company or its subsidiary entities must be approved by the AuditCommittee prior to 9.4 Linamar Corporation (LNR) on the TSX. He is a member of the Audit Committee and the Human Resources and Corporate Gover value. TheCorporation hasdesigned independentan process ensureto building construction andimprovements aretransacted fairat ditions and maintenance for a number of facilities. andconstruction costs represent general contracting and construction activities related to plant construction, improvements, ad Included in cost of sales is maintenance costs of $0.7 million (2010 - $0.4 million) paid to the same company. The maintenance director.Included insales is$0.02 million (2010 $0.02- million) related toequipment and services sold tothe same company. mentsin the aggregate amount of $14.8 million (2010 - $1.8 million) paid to a company owned by the spouse of an officer and nance Committee. Currently, Bill involves himself in business activities through his investment company, Rahnek Ltd. Total All otherfees Tax fees Audit related fees Audit fees Type of service

P I E nterest of Management and Others in Material Transactions xternal Auditor Service Fees re-Approved PoliciesandProcedures 840,339 101.540 35,327 51,894 651,578 Fiscal 2011 ($)

905,043 40,369 87,589 27,633 749,452 Fiscal 2010 ($) - - - the Management Information Circular with respect to the most recent meeting of Shareholders that involved the election of Direc of the auditors and a copy of any interim financial statements of the Company subsequent to such financial statements, a copy of comparative financial statements of the Company for the year ended December 31, 2011, together with the accompanying report togetherwith acopy of any documents, or the pertinent pages of any document, incorporated by reference herein, acopy of the TheCompany will provide to any person, upon request to the Secretary of the Company, acopy of this AnnualInformation Form, year ended December 31, 2011. analysisfinancialtheof condition resultsandoperations of Companytheofprovided is Company’sthe in AnnualReportthefor Additionalfinancial information, including the comparative consolidated financial statements, and management’s discussion and Company’sManagementInformationDecember endedShareholderstheyear31,CircularAnnual2011.Meeting the forof for securities,purchasematerialoptionssecuritiestransactions,tomanagementinterestsothersin and ofand thecontained inis Company’sthe of holdersindebtedness,principal and remuneration officers’ and directors’information,includingAdditional Additional information relating to the Company may be found on SEDAR at www.sedar.com. 13. The auditors of the Company are PwC. The Company believes that PwC does not hold any interests in the securities of Linamar. 12. Toronto, Ontario M5J 2Y1. TheCompany’s transfer agent and registrar is Computershare Investor Services Inc., located at100 University Avenue,8th floor, 11. Thewords “may”, “would”, “could”, “will”, “likely”, “estimate”, “believe”, “expect”, “plan”, “forecast”andsimilar expressions areconstitute forward-lookinghistoricalmayrecitationfacts of statements.not are thatdocumentspublishedyear throughout the other and FormInformation Annual this in Linamar by providedinformationInformation.Certain Looking Forward on Note A incorporated by reference into the preliminary short form prospectus or the short form prospectus. Secretary of the Company, any of the documents referred to above and a copy of any other document not referred to above that respectis of a distribution of the Company’s securities, the Company will provide to any person (without charge), uponare in therequest course of a distribution to the pursuant to a short form prospectus or if a preliminary short form prospectus has been filed in reasonableaof charge before providing suchdocuments personato shareholder.thatnot ais thesecuritiesIf theCompanyof annualtorsanycopyoneandoffiling instead Managementthe of Information Circular. CompanyTherequire may paymentthe

T A I nterests ofExperts ransfer Agents and Registrars dditional Information - 25 2011 ANNUAL INFORMATION FORM 26 LINAMAR CORPORATION events or results may differ materially. In evaluating such forward-looking statements, readers shouldintended specifically to identify forward-lookingconsider statements.the var Readers are cautioned that such statements are only predictions and the actual those reflected in the forward-looking statements. assumesobligationnoforward-lookingupdatethe to statements, reasonsupdatetheactualtowhyresults or coulddiffer from shouldbeconsidered carefully andreaders should notplace undue reliance onLinamar’s forward-looking statements. Linamar The foregoing is not an exhaustive list of the factors that may affect Linamar’s forward looking statements. These and other factors Linamar operates. Linamar’s competitors, governmental, environmental and regulatory policies and changes in customers,exposure,thecurrencytechnological developmentsOEMbycompetitive major andtransmissionprograms environmentand engine certainin whichon tions,world political events, pricing concessions andcostabsorptions, delays programin launches, theCompany’s dependence rates, environmental emission and safety regulations, the extent of OEM outsourcing, industry cyclicality, trade and labour disrup not limited to, changes in the various economies in which Linamar operates, fluctuations in interest rates and currency exchange and uncertainties that cause results to differ from current expectations discussed in this Annual Information Form include, but are thoseexpressed orimplied inanyforward-looking statements made by, oronbehalf of, Linamar. Some ofthefactors andrisks Such forward-looking information may involve important risks and uncertainties that could materially alter results iousin factorsthe futurethat couldfrom cause actual events or results to differ materially from those indicated by such forward-looking statements. - - The AuditCommittee members shall meet the requirements of the Business Corporations Act(Ontario) (the 1. Composition: Audit Committee Composition, Meetings and Organization the external auditors as well as any officer or employee of the Company. The Audit Committee has the authority to conduct any investigation appropriate to fulfilling its responsibilities and has direct access to s s s s s s Committee’s primary duties and responsibilities are to: The Audit Committee has been formed by the Board of Directors to assist the Board in fulfilling its oversight responsibilities. The Audit Purpose of Audit Committee Committee Audit the of Mandate A APPENDIX of the Audit Committee may designate a Chair by a majority vote of the Audit Committee membership. Company. If the Chair of the Audit Committee is not designated or present at a duly Governancecalled Committeemeeting andof shallthe serve Auditat the Committee,pleasure of thethe membersBoard, or until the close of the next annualrecommendationthe ResourcesHumanCorporatethe onBoardtheMembersmeetingCommitteeAuditand theappointed of of beshallby of shareholders of the 2. Appointment of Members and Chair: such director becomes financially literate within a reasonable period of time following his or her appointment. literate(asdefined inSchedule “A”). director A whoisnot financially literate maybeappointed tothe AuditCommittee provided that noneof whom shall be officers or employees of the Company or its affiliates. Allmembers of the AuditCommittee shall be financially mustbe resident Canadians (as defined in the OBCA), each of whom shall be independent directors (as defined in Schedule “A”)and strument 52-110. The Audit Committee shall be comprised of three or more directors as determined by the Board, a majority of whom

carriesonbusiness. department. Company; and financialreportingandaccountingcompliance; E M M M M R EVIEW STABLISH ONITOR ONITOR ONITOR ONITOR A T T T T ND HE HE HE HE A ND R # I M I EPORT NDEPENDENCE NTEGRITY OMPANYS M ANAGEMENT ONITOR T O T O HE F P T ROCEDURES C HE " OMPLIANCE OARD O l F Q NANCIAL T UALIlCATIONS HE O N P RINCIPAL F T OR HE W R EPORTING A ITH l DHERENCE NANCIAL L A EGAL R ISKS ND P P A T ERFORMANCE ROCESS S ND HAT TATEMENTS T O R R EGULATORY C EPORTING OULD A ND I MPACT S O R YSTEM ELATED F R R T EQUIREMENTS EQUIREMENTS HE T # HE O OMPANYS - F l $! I NTERNAL NANCIAL A I ND N C E A R ONTROLS XTERNAL O EPORTING LL THER J URISDICTIONS l NANCIAL I A N UDITORS A R ND ESPECT R ELATED I D N A ISCLOSURES W ND O “OBCA” HICH F T I D NTERNAL HE ISCLOSURE T # HE OMPANYS )and National In O # F A OMPANY T UDITING HE O F # T OMPANY HE - 27 2011 ANNUALAPPENDIX INFORMATION FORM 28 LINAMAR CORPORATION of the Audit Committee by notifying the secretary of the Board who will notify the members of the Audit Committee. The external audi anymember theof AuditCommittee, theexternal auditors theChairmanor theBoardof may, withreasonable notice, meetingcalla The Audit Committee shall meet at least four times annually, or more frequently as circumstances dictate. The Audit Committee Chair, 3. Meetings: The Company shall provide appropriate funding, as determined by the Audit Committee, for the services of these advisors. The Audit Committee shall have the authority to retain external legal counsel and other advisors to assist4. it Accessin to fulfillingOutside Advisors:its responsibilities. any matters that the Audit Committee or any of these groups believe should be discussed. The AuditCommittee should meet privately atleast annually with management, theexternal auditors, andcommitteeas a todiscuss advance of each meeting. themembers ofthe AuditCommittee shall constitute quorum.a The AuditCommittee Chair shall prepare and approve anagenda in tors are entitled to receive notice of every meeting of the Audit Committee and to attend and be heard at such meetings. A majority of d e C s T I . Audit Committee Responsibilities and Duties pecifically delegated to the Audit Committee by the Board. In addition to these duties and responsibilities, the Audit xchanges on which the securities of the Company are listed and all other applicable laws. The Audit Committee may he Audit Committee shall have the duties and responsibilities set out below as well as any other functions that are esignate a sub-committee to review any matter within this Mandate. ommittee shall perform the duties required of the Audit Committee by the OBCA, binding requirements of the stock ( a) ReviewProcedures ( ( ( i) The Audit Committee shall review and report to the Board on the Company’s annual audited financial iii) The Audit Committee shall review the effectiveness of the overall process for identifying the ii) At least annually, in consultation with management and the external auditors, the Audit Committee statements, unaudited quarterly financial statements, related MD&A, annual and interim earnings and report thereon and provide the Audit Committee’s view to the Board. principal risks affecting financial reporting and the steps Management has taken to monitor, control significant findings prepared by the external auditors together with management’s responses. has taken to monitor, control, and report such exposures. The Audit Committee shall also review The Audit Committee shall discuss significant financial risk exposures and the steps management shall consider the integrity of the Company’s financial reporting processes and internal controls. regarding accounting principles, practices, and significant management estimates and judgments. should include discussions with management and the external auditors of significant issues Company provided in prospectuses) prior to filing or distribution. The Audit Committee’s review press releases and other related financial disclosures (including financial disclosures of the

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( ( b) External Auditors c) Internal Audit Department and Compliance ( ( ( ( ( ( ( ( ( ( ( ( ( iv) At least annually, the Audit Committee shall review the external auditors’ audit plan and discuss iii) At least annually, the Audit Committee shall review and discuss with the external auditors all ii) The Audit Committee shall pre-approve all non-audit services to be provided to the Company i) The Audit Committee is responsible for overseeing the work of the external auditors who report viii) The Committee shall review annually a letter of certification from the Chief Executive Officer vii) The Audit Committee shall review the process relating to and the certifications of the Chief vi) The Audit Committee shall review with management and the external auditors all matters required v) The Audit Committee will review any material changes in accounting standards and securities iv) The Audit Committee shall review and assess the adequacy of this Mandate at least annually i) At least annually, the Audit Committee shall review the independence of the internal audit department vii) The Audit Committee shall review with the external auditors any audit problems or difficulties vi) The Audit Committee shall consider the external auditors’ judgments about the quality and v) Prior to releasing the year end financial results, the Audit Committee shall discuss the results of the external auditors or approve any discharge of the external auditors when circumstances warrant. appropriateness of the Company’s accounting principles as applied in the Company’s financial reporting. partners of the external auditors, and recommend to the Board the appointment and the compensation and approve the audit scope, staffing, locations, reliance upon management, and general audit independence. significant relationships they have with the Company that could impair the external auditors’ or its subsidiary entities by the external auditors. and performance of the external auditors, including the qualifications and performance of the lead directly to the Committee. The Audit Committee shall, at least annually, review the independence on the Company’s compliance with the Code of Conduct. annual consolidated financial statements. Executive Officer and the Chief Financial Officer on the integrity of the Company’s quarterly and to be communicated to the Committee under generally accepted auditing standards. policies or regulation relevant to the Company’s financial statements. and submit this Mandate to the Board for approval. from management and review any difficulties encountered by the internal audit department in the and management’s response thereto. Accountants. committees in accordance with the standards established by the Canadian Institute of Chartered of the audit with the external auditors and discuss any matters required to be communicated to audit approach. 29 2011 ANNUALAPPENDIX INFORMATION FORM 30 LINAMAR CORPORATION This Mandate was last reviewed by the Board of Directors on August 9, 2011. I I. Currency of the Audit Committee Mandate ( d) Other Audit Committee Responsibilities ( ( ( ( ( ( ( ( ( vi) The Audit Committee shall receive reports from management in respect of procedures v) The Audit Committee shall review and approve the Company’s hiring policies regarding partners, iv) The Audit Committee shall review senior financial and accounting personnel succession planning iii) The Audit Committee shall maintain minutes of its meetings and periodically report to the Board ii) At least annually, the Audit Committee shall disclose this Mandate to shareholders, as required i) At least annually, the Audit Committee shall assess its effectiveness and each of its members iii) At least annually, the Audit Committee shall review the report on compliance with the Company’s ii) At least annually, the Audit Committee shall review with the Company’s counsel any legal matters vii) The Chair of the Audit Committee shall coordinate orientation and continuing director matters. anonymous submissions by employees of concerns regarding questionable accounting or auditing regarding accounting, internal accounting controls, or auditing matters, including the confidential, established for the receipt, retention and treatment of complaints received by the Company Company. This policy is defined in the Standard Practice Manual, # 4-000X. employees and former partners and employees of the present and former external auditors of the within the Company. on significant results of its activities and deliberations. by applicable law. against this Mandate and report the results of the assessment to the Board. Code of Conduct and any instances of material deviation therefrom with corrective actions taken. government agencies. compliance with applicable laws and regulations, and inquiries received from regulators or that could have a significant impact on the organization’s financial statements, the Company’s courseofitsinternalaudit. development programs relating to this Mandate for Audit Committee members. Definitions Definitions “A” SCHEDULE Company. 1. A member of the Audit Committee is independent if the member has no direct or indirect material relationship with the Meaning of Independence -- 3. Despite Section 2, the following individuals are considered to have a material relationship with the Company: of Directors, reasonably interfere with the exercise of a member’s independent judgment. 2. For the purposes of Section 1, a material relationship means a relationship which could, in the view of the Company’s Board

g f e d c b a withinthelastthreeyears; Company received, more than $75,000 in direct compensation from the Company during any 12 month period entity’s compensation committee; and officer of an entity if any of the Company’s current executive officers serve or served at that same time on the three years a partner or employee of that firm and personally worked on the Company’s audit within that time ; firm and participates in its audit, assurance or tax compliance (but not tax planning) practice; or was within the last is a partner or employee of a firm that is the internal or external auditor of the Company; or is an employee of that audit within that time; or was within the last three years a partner or employee of that firm and personally worked on the Company’s of the Company; . an individual who received, or whose immediate family member who is employed as an executive officer of the . an individual who is a partner or employee of a firm that is the internal or external auditor of the Company, . an individual who is, or has been within the last three years, an employee or executive officer of the Company; . an individual who, or whose immediate family member, is or has been within the last three years, an executive . an individual who: . an individual whose spouse, minor child or stepchild, or child or stepchild who shares a home with the individual, . an individual whose immediate family member is, or has been within the last three years, an executive officer 1 : i i i. is an affiliated entity of the Company or any of its subsidiary entities. . accepts, directly or indirectly, any consulting, advisory or other compensatory fee from the Company Board or any Board committee; or a member of the Board of Directors or any Board committee, or as a part-time chair or vice-chair of the or any subsidiary entity of the Company, other than as remuneration for acting in his or her capacity as 31 2011 ANNUALAPPENDIX INFORMATION FORM 32 LINAMAR CORPORATION breadth and complexity of the issues that can reasonably be expected to be raised by the Company’s financial statements. financialcomplexitystatementsaccountingbreadthlevelofpresentandgenerally ofthataare issues thatcomparable the to FinancialofMeaningunderstand setofandread ability Literacy atheto has individual she -- financiallyAn or is he literate if 9. For the purposes herein (other than Sections 3(g) and (7), reference to the Company includes a subsidiary entity of the Company. 8. Despite Section 3, a person will not be considered to have a material relationship with the Company solely because he or she: 7. For the purposes of Section 3(g): continued service. plan(including deferred compensation) for prior service with the Company if the compensation is not contingent in any way on compensationamountsfixedretirementofBoardcommitteeany (ii) Directorsundera any orBoardof or the member of a as 6.ForpurposestheSection of 3(f), directcompensation includedoesnotremuneration any (i)capacityher or actinghis for in with an internal or external auditor if the compensation is not contingent in any way on continued service. compensationamountsfixedexternalreceiptoftheoflimitedauditor (includingto is deferredcompensation) priorservicefor 5.For thepurposes ofSections 3(c) and(d), partnera does notinclude fixeda income partner whose interest intheinternal or 4. Despite Section 3, an individual will not be considered to have a material relationship with the Company solely because: b a b a b a onapart-timebasis. way on continued service. (including deferred compensation) for prior service with the Company if the compensation is not contingent in any acceptanceofafeeby . the indirect acceptance by an individual of any consulting, advisory or other compensatory fee includes . he or she had a relationship identified in Section 3 if that relationship ended before March 30, 2004; or . has previously acted as an interim Chief Executive Officer of the Company; or . acts, or has previously acted, as a chair or vice-chair of the Board of Directors or any Board committee . compensatory fees do not include the receipt of fixed amounts of compensation under a retirement plan . he or she had a relationship identified in Section 3 by virtue of Section 9. i i i. an entity in which such individual is a partner, member, an officer such as a managing director occupying . an individual’s spouse, minor child or stepchild, or a child or stepchild who shares the individual’s home; or or financial advisory services to the Company or any subsidiary entity of the Company; and in providing services to the entity) and which provides accounting, consulting, legal, investment banking non-managing members and those occupying similar positions who, in each case, have no active role a comparable position or executive officer, or occupies a similar position (except limited partners, 33 2011 ANNUALAPPENDIX INFORMATION FORM