I NSTITUTIONAL E QUITY R ESEARCH Kevin Chiang, CFA Krista Friesen

T RANSFERRING C OVERAGE j Linamar Corporation September 12, 2018 Consumer Discretionary A Global Industrial Manufacturer Stock Rating: O UTPERFORMER

Our Conclusion Key Ratios and Statistics As of September 12, we are assuming coverage of LNR with an 12-18 mo. Price Target $82.00 Outperformer rating (upgraded from Neutral) and $82 price target LNR-TSX (9/10/18) $55.21

(prior $70) based on a 5x EV/EBITDA multiple and a 8x P/E multiple Key Indices: Toronto on our 2019 estimates. Our positive view on LNR is backstopped by 523-5-week-Yr. EPS Range Gr. Rate (E) $52.08-$80.58NM its strong earnings growth platform; a more diverse revenue stream, Shares Outstanding 65.3M which supports a higher valuation; and our view that it is trading at Float 45.1M Shrs trough levels, providing good downside protection. Avg. Daily Trading Vol. 250,736

Market Capitalization $3,777.9M Implications Dividend/Div Yield $0.48 / 0.8% Below is a summary of our investment thesis. Fiscal Year Ends December Book Value $51.94 per Shr 1. A Clearer Argument For A Higher Multiple: With LNR's more 2018 ROE (E) 15.8% distinct business lines, there is a clearer argument for a higher LT Debt $2,551.0M multiple based on a sum of the parts. If we look at its Industrial CommonNet Asset EquityValue $3,394.0M division comps, they trade at ~7x-9x forward EBITDA versus the auto suppliers at 5x-6x. Valuing LNR on a sum-of-the-parts basis, we get a blended multiple of ~6x or ~2 pts above where it is currently trading. EPS 2017 2018 2019 2020 This infers a value of $97/share or 75+% potential upside. Current $8.09A $8.97E $10.62E $11.47E Prior $8.75E $10.70E

2. Diversified Platform: LNR generates ~39% of its EBIT from its Estimates (Dec. 31) 2017 2018 2019 2020 EBITDA ($mln)-Curr $1027.6A $1195.5E $1347.4E $1432.0E Industrial segment. LNR's diverse platform provides more downside EBITDA ($mln)-Prior $1206.5E $1326.7E protection given the cyclical headwinds facing the auto industry. The Valuation (Dec. 31) outlook for Skyjack and MacDon remains healthy (we expect 10+% P/E-Curr 6.8X 6.2X 5.2X 4.8X revenue growth in the Industrial segment in 2018/19), positioning P/E-Prior 6.3X 5.2X LNR for continued strong EPS growth (12+% CAGR from 2017-2020E). EV/EBITDA-Curr 5.6X 4.8X 4.3X 4.0X EV/EBITDA-Prior 4.8X 4.3X

3. Riding The Outsourcing Wave: LNR's Transportation division benefits from the trend towards increased outsourcing. Looking out to 2030, we estimate its Transportation revenue could nearly double before even contemplating market share gains in CPV. LNR's ability to drive strong earnings growth, even in a flat/declining auto market, is evidenced by the company launching $4.5B of new work today. This should alleviate concerns around headwinds facing its powertrain operations. Even though ICE vehicle production has peaked, the addressable market for LNR continues to grow. Company Description Linamar Corporation designs and manufactures precision-machined 4. Valuation: LNR is trading at 4.3x our 2019E EBITDA (comps at 5.4x) components and modules for engine, transmission, and chassis applications and 5.2x our 2019E EPS (comps at 9.2x). for sale to OEMs and Tier 1 suppliers.

www.linamar.ca

All figures in Canadian dollars, unless otherwise stated. 18-155660 © 2018 CIBC World Markets Corp., the U.S. broker-dealer, and CIBC World Markets Inc., the Canadian broker-dealer (collectively, CIBC World Markets Corp./Inc.) do and seek to do business with companies covered in its research reports. As a result, investors should be aware that CIBC World Markets Corp./Inc. may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For required regulatory disclosures please refer to "Important Disclosures" beginning on page 39. Please see "Price Target Calculations" and "Key Risks to Price Target" information on page(s) 32. Find CIBC research on Bloomberg, Thomson Reuters, CIBC World Markets Inc., P.O. Box 500, 161 Bay Street, Brookfield Place, Toronto, Canada M5J 2S8 (416) 594-7000 FactSet, Capital IQ and ResearchCentral.cibcwm.com CIBC World Markets Corp., 425 Lexington Avenue, New York, NY 10017 (212)-856-4000

A Global Industrial Manufacturer - September 12, 2018

Linamar Outperformer LNR — TSX Kevin Chiang (416) 594-7198 [email protected] Price as of September 10, 2018: C$55.21 Krista Friesen (416) 956-6807 [email protected] 12- To 18- Month Price Target: C$82.00 Auto Parts

EV/EBITDA 2017A 2018E 2019E C o mpany P ro file Consensus estimates except LNR, M RE & M G Linamar Corp. is a Canadian manufacturing company with global operations in two primary segments: Powertrain/Driveline and Industrial. These are further divided into four operating groups: M achining & Assembly, Light Linamar 5.6x 4.8x 4.3x M etal Casting, Forging and Skyjack. The Company is noted for their core engine components, including cylinder blocks M artinrea 4.5x 4.1x 3.7x and heads, camshafts and connecting rods, along with mobile aerial work platforms under their Skyjack operations. M agna 4.9x 4.7x 4.4x North American Auto Parts M anufacturers 6.3x 5.7x 5.4x Scenario A nalysis B ase C ase — $ 82.00 P/E 2017A 2018E 2019E Our base case scenario assumes slowing North American auto sales, but continued strength in the industrials segment resulting in ~9% Y/Y growth in revenue in 2019 with LNR's operating margin growing ~80 bps to ~11.5%. We use a blended Consensus estimates except LNR, M RE & M G P/E and EV/EBITDA multiple of 8.5x and 5.0x, respectively to reach our base case scenario of $82.00 Linamar 6.8x 6.2x 5.2x M artinrea 7.2x 6.1x 5.5x Upside Scenario — $ 115.00 M agna 8.9x 7.8x 7.0x Our upside scenario assumes North American auto sales hold at current levels and there is continued strength in the industrials segment resulting in ~10% Y/Y revenue growth in 2019 with LNR's operating margin growing ~230 bps to ~13%. North American Auto Parts M anufacturers 10.4x 9.0x 9.2x We use a blended P/E and EV/EBITDA multiple of 9.5x and 6.0x to reflect a stronger underlying economy.

Financial M etrics 2017A 2018E 2019E 2020E D o wnside Scenario — $ 48.00

Adjusted EBITDA M argin 20.0% 19.8% 20.7% 20.7% Our downsied scenario assumes North American auto sales slow more dramatically and the economy weakens resulting in a less supportive environment for the industrials sector equating to ~2% Y/Y growth in revenue in 2019 and margin Adjusted EBIT M argin 10.8% 10.8% 11.5% 11.5% compression of ~70bps. We use a blended P/E and EV/EBITDA multple of 5.5x and 4x to reflect the slowing economy. Adjusted Net M argin 8.2% 7.8% 8.4% 8.6% FCF Conversion (% NI) 70.4% 54.3% 59.6% 73.3% Sales M ix Vehicle Sales (M M ) 2017A 2018E 2019E 2020E North America 17.1 17.0 16.9 16.8 2017 Sales ($6.5B) 2017 EBIT ($0.7B) Europe 22.4 22.8 23.0 22.6 Industrial 17% Industrial Asia 50.0 50.5 50.2 49.8 23%

Segmented Results 2017A 2018E 2019E 2020E Transportation North America Sales $2,797 $2,887 $3,025 $3,108 Transportati Europe Sales $1,555 $1,753 $1,905 $2,057 on Transportatio 83% n Asia Sales $483 $476 $602 $747 77% Total Transportation Sales $5,430 $5,756 $6,204 $6,617 Transportation EBIT $545 $502 $589 $629 Geographic Auto Sales Breakdown Industrials

Industrials Sales $1,116 $1,889 $2,108 $2,213 $8.0 Industrials EBIT $162 $324 $367 $387 $6.0

Bln $4.0 Key F inancials 2017A 2018E 2019E 2020E $2.0 Revenue - Consolidated $6,546 $7,645 $8,312 $8,831 Adjusted EBITDA $1,028 $1,195 $1,347 $1,432 $0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E Adjusted EBIT $708 $826 $957 $1,016 Adjusted Net Income $534 $593 $702 $759 North America Europe Asia Total Auto Sales Adjusted FD EPS $8.09 $8.97 $10.62 $11.47 Operating Cash Flow $786 $859 $998 $1,116 North American Light Vehicle Production Total Capex $410 $537 $580 $560 20 18.1 18.4 16.5 17.5 17.1 17.0 16.9 Free Cash Flow $376 $322 $418 $556 16.4 16.0 15.5 15.9 16.8 FCFPS $5.68 $4.87 $6.32 $8.41 15 12.9 12.2 13.3

10 8.7

Balance Sheet Snapshot 2017A 2018E 2019E 2020E MlnUnits 5 Current Assets $2,477 $3,295 $3,614 $3,917

Total Assets $5,851 $8,166 $8,674 $9,121 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E Current Liabilities $1,296 $1,783 $1,926 $2,045

LTD $1,289 $2,366 $2,089 $1,683

Net Debt $865 $1,835 $1,479 $957 U.S. Non-residential Construction SAAR

Total Liabilities $2,738 $4,422 $4,287 $4,001 800 718 728 709 684 716 651 651 Shareholders' Equity $3,113 $3,745 $4,387 $5,120 575 631 600 547 555 535 575 452 486 400

Balance Sheet Ratios 2017A 2018E 2019E 2020E US$ Bln Net Debt To EBITDA 0.8x 1.5x 1.1x 0.7x 200 Total Debt To Capital 29.5% 38.9% 32.5% 25.0% 0 Current Ratio 1.9x 1.8x 1.9x 1.9x 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: Bloomberg and CIBC World Markets Inc.

2 A Global Industrial Manufacturer - September 12, 2018

Executive Summary We are assuming coverage of Linamar with an Outperformer rating (upgraded from Neutral) and $82.00 price target (prior $70.00) based on a 5x EV/EBITDA multiple and a 8x P/E multiple on our 2019 estimates. Our positive view on the company is backstopped by its strong earnings growth platform; its more diverse revenue stream, which supports a higher valuation; and our view that it is trading at trough levels, providing good downside protection (its relative valuation spread versus its peer group and broader indices is generally below one standard deviation from its average over a five- and 10-year time horizon). Below is a summary of our investment thesis.

1. A Clearer Argument For A Higher Multiple: With Linamar’s more distinct business lines, there is a clearer argument for a higher multiple based on a sum of the parts. If we look at companies comparable to its Industrial division, they typically trade at ~7x-9x forward EBITDA versus the auto suppliers trading at an average of 5x-6x. Valuing Linamar on a sum-of-the parts basis, we get a blended multiple of ~6x or roughly two points above where it is currently trading. This infers a value of $97/share or 75+% upside.

2. A Diversified Platform Provides More Downside Protection With Auto Sales Plateauing: While North American auto sales are plateauing, Linamar generates ~25% of its revenue from its Industrial segment, which also has higher margins. Linamar’s diverse platform provides more downside protection given the cyclical headwinds facing the North American auto industry. More importantly, the outlook for Skyjack and MacDon remains healthy (we expect 10+% revenue growth in the Industrial segment in 2018 and 2019), positioning the company for continued strong EPS growth over our forecast period (12+% CAGR from 2017-2020E). For Skyjack, on the back of U.S. tax reform, a healthy U.S. economy, increasing construction activity, and its expanding production line, the outlook for the access market is positive, with Linamar also gaining market share. Skyjack has seen above- average revenue growth. For MacDon, the long-term trends in agriculture remain constructive and we look to be in the early innings of an agriculture equipment replacement cycle.

3. Riding The Outsourcing Wave: Linamar's Transportation division benefits from the trend towards increased outsourcing. Looking out to 2030, we estimate that Linamar’s Transportation revenue could nearly double before even contemplating potential content per vehicle (CPV) market share gains. Linamar continues to drive strong earnings growth even in a flat/declining auto market, as evidenced by the company launching $4.5 billion of new work today. This should alleviate concerns about headwinds facing its powertrain operations. Even though ICE vehicle production has peaked, the addressable market for Linamar continues to grow.

4. Valuation Discount Unwarranted: On our 2019 estimates, Linamar is trading at 4.3x EV/EBITDA (comps at 5.4x) and 5.2x P/E (comps at 9.2x). We view this level of discounting as unwarranted.

3 A Global Industrial Manufacturer - September 12, 2018

Exhibit 1. Financial Summary ($ mlns. except per share and where noted otherwise)

2017 2018E 2019E 2020E

Revenue 6,546 7,645 8,312 8,831 EBITDA 1,028 1,195 1,347 1,432 Operating Income 708 826 957 1,016 Operating Margin 10.8% 10.7% 11.5% 11.5% Adj. Net Earnings 534 593 702 759 Adj. Net Margins 8.2% 7.8% 8.4% 8.6% FD EPS 8.09 8.97 10.62 11.47 Source: Company reports and CIBC World Markets Inc.

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Investment Thesis 1. A Clearer Argument For A Higher Multiple Based On Sum Of The Parts Key Takeaway: With about one-third of Linamar’s operating income derived from its Industrial segment (which trades at a two- to three-point premium on an EV/EBITDA basis versus the auto parts suppliers), the company has a clearer argument for a higher valuation. On a sum-of-the-parts basis, we derive a per share value of ~$97.

With Linamar’s more distinct business lines, there is a clearer argument for a higher multiple based on a sum-of-the-parts analysis. If we look at its comps within its Industrial division, they typically trade at ~7x-9x forward EBITDA versus the auto suppliers trading at an average of 5x-6x.

Exhibit 2. Valuation Multiples For Linamar's Various Segments

Valuation Multiples For LNR's Various Segments

15.0x 13.8x 9.4x 10.1x 9.2x 10.0x 6.6x 5.4x 4.3x 5.2x 5.0x

0.0x LNR North America Auto Industrial Comps Ag. Equip Comps Supplier Comps

EV To 2019E EBITDA 2019E P/E

Source: Factset, Bloomberg and CIBC World Markets Inc.

Valuing Linamar on a sum-of-the-parts basis, we get a blended multiple of ~6x or roughly two points above where it is currently trading on a forward EBITDA basis. This infers a value of ~$97/share or 75+% upside versus its current share price.

Exhibit 3. Linamar Sum Of The Parts

Sum Of The Parts (2019E) ($ mlns. Unless Noted) Division EBIT D&A Implied EBITDA Multiple EV Powertrain 589 347 937 5.0x 4,683 Industrial 217 22 239 6.6x 1,578 Ag. Equip 150 22 172 9.2x 1,580 Total 957 391 1,347 5.8 7,841 Pro-forma Net Debt 1,479 Equity 6,362 Shares O/S (mlns) 65 Per Share 97.47 Current Share Price 54.87 % Upside 77.6% Source: Factset, Company reports and CIBC World Markets Inc.

Given that the outlook for its Industrial segment remains robust, we expect Linamar to average double-digit percentage EPS growth over our forecast period despite the cyclical headwinds facing auto parts suppliers. We would argue that as North American auto sales roll over, there should be a greater appreciation for Linamar’s earnings resiliency.

5 A Global Industrial Manufacturer - September 12, 2018

Exhibit 4. Linamar’s History Of Double-digit EPS Growth

LNR's Annaul EPS Growth Rate

60% 56.8%

50% 44.1% 39.1% 40% 36.0%

30% 19.2% 18.4% 20% 14.9% 10.8% 8.1% 10% 2.2% 0% 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E

Source: Company reports and CIBC World Markets Inc.

2. A Diversified Platform Provides More Downside Protection With Auto Sales Plateauing Key Takeaway: While North American auto sales are plateauing, Linamar generates ~25% of its revenue from its Industrial segment, which also has higher margins. Linamar’s diverse platform provides downside protection in a flat/declining auto market. More importantly, the outlook for Skyjack and MacDon remains healthy, in our view. This provides Linamar with additional growth drivers unrelated to the auto cycle, and positions the company for average double-digit EPS growth over our forecast period.

Skyjack—Rental Market Remains Healthy; Expect Continued Growth Above Market Average In 2017, the access market experienced double-digit growth in units sold, but Skyjack outperformed global unit growth by 50% on continued market share growth. Skyjack's backlog is substantially higher than it was last year and Linamar is targeting solid growth in the double-digit range this year and mid- to high- single-digit range next year, driven by a growing market.

Outlook For Revenue Drivers Remains Positive: Skyjack’s primary customer base is that of large equipment rental agencies that cater to the construction markets (i.e. United Rentals, HercRentals, and H&E Equipment). Key drivers for Skyjack’s sales are non-residential construction as well as the timing and capital expenditure decisions of national rental companies. As we highlight below, Linamar’s historical Industrial segment revenue, which was primarily Skyjack, has shown a 65% correlation looking back the last decade with U.S. non-resident construction. With the outlook for the U.S. economy still healthy, this should continue to act as a tailwind for construction spending. Our CIBC Economics team expects U.S. real GDP growth of 2%-3% in 2018/19, similar to levels experienced in 2017.

6 A Global Industrial Manufacturer - September 12, 2018

Exhibit 5. Linamar Industrial Revenue Versus U.S. Non-residential Construction Have Shown A Strong Positive Correlation

LNR Industrial Revenue Versus U.S. Non-residential Spending U.S. GDP Versus U.S. Non-residential Spending Correlation = 65% 1 Year Lag Correlation = 35%

$400 800,000 10.0 800,000 750,000 $300 700,000 5.0 700,000 $200 650,000 600,000 $100 0.0 600,000 550,000

$0 500,000 (5.0) 500,000

Q3/09 Q1/15 Q3/08 Q1/09 Q1/10 Q3/10 Q1/11 Q3/11 Q1/12 Q3/12 Q1/13 Q3/13 Q1/14 Q3/14 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18

Q3/10 Q3/16 Q3/08 Q1/09 Q3/09 Q1/10 Q1/11 Q3/11 Q1/12 Q3/12 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q1/17 Q3/17 Q1/18

LNR Revenue ($MM) (LHS) US Non-resi Construction (SA) (US$MM) US GDP Nominal Y/Y (SA) (%) (LHS) US Non-resi Construction (SA) (US$MM)

Source: Company reports and CIBC World Markets Inc.

As well, in the table below we provide comments from Skyjack’s competitors that also signal robust demand environment.

Exhibit 6. Bullish Commentary From Skyjack's Competitors

Company Comment Oshkosh  Continues to see a strong North American rental market and see international demand continue to grow.  Continues to see solid fleet metrics including utilization and rental rates.  Access equipment sales increased ~15% Y/Y in FQ3 due to improved demand for both telehandlers and aerial work platforms, led by North America.  Operating income increased ~15% Y/Y in FQ3 due to improved pricing and mildly offset by higher freight costs.  Forecasts higher Y/Y sales for access equipment in FQ4. Terex Corp.  Terex noted it believes we are in an early point in the growth cycle for aerial work platforms in both North America and Western Europe, with China and other developing markets still in the early phase of adopting the products, but significant growth is expected ahead.  Given the company’s view on macro-economic fundamentals and conversations with its customers, it believes we are in a multi-year growth period.  Expects margins to improve Y/Y in 2018, but noting material costs could be a headwind.  Bookings slowed in the quarter and were down 13%, allowing the market to digest the preceding six- month 34% increase in sales.  Backlog grew 11% Y/Y. Haulotte  Expects the global market for access equipment to continue to increase.  Expects the European market to continue to grow with no sign of a slowdown.  Expects solid growth from emerging markets and the Middle East. Source: Company reports and CIBC World Markets Inc.

Strength In the Equipment Rental Industry: Several of North America’s largest industrial equipment rental companies have provided positive forecasts for the industry, which are supported by: i) their capex guidance; ii) rental rates turning positive; and iii) U.S. tax reform. This bodes well for Skyjack as the vast majority of its customers are equipment rental companies.

1. Equipment Rental Industry Continues To See A Healthy Demand Environment: Industrial equipment rental companies continue to see a healthy backdrop that they expect to continue through 2018. Some have also noted that growth outside of Canada is turning out to be better than expected. Given Skyjack’s significant exposure to the North American market, this is positive for Skyjack.

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Exhibit 7. Rental Companies Continue To Expect A Healthy Demand Environment

Company Comments United Rentals  Continued macro improvement in Canada, specifically noting infrastructure plans in Ontario and Quebec and a rebound in Western Canada.  Non-residential construction has been almost universally positive for some time now.  Strong used equipment market.  Robust market based on pricing realized.  Raised full-year 2018 guidance with Q2 results, including raising capex by US$500MM. HercRentals  Continues to see a strong pricing environment.  Sees strong revenue growth across all North American markets, including Canada, which was previously a laggard. H&E Rentals  Agrees with forecasts of positive growth in non-residential construction spending over the next several years.  Demand for AWPs increased 130 bps Y/Y in the first quarter, and sales of AWPs increased Y/Y during the same time period.  Continues to expect a strong rate environment after achieving 2% Y/Y growth in Q1; April continues to trend positively as well. Source: Company reports and CIBC World Markets Inc.

2. Longer-term Outlook For Equipment Rental Industry Is Positive: With the vast majority of Skyjack’s customers being equipment rental companies, its revenue is highly correlated with that of the equipment rental industry. Several of the large industrial equipment rental companies in the U.S. have guided to the rental market revenue growing over the next five years from US$51 billion in 2017 to US$66 billion by 2022, a 29% increase. This further supports our view that we are in the midst of heightened rental equipment capex.

Exhibit 8. North American Equipment Rental Market Forecast

North American Equipment Rental Market (US$ Billions)

$70 $64 $66 $61 $57 $60 $54 $51 $47 $49 $50 $44 $41 $38 $38 $40 $35 $31 $32 $30

$20

2011 2017 2008 2009 2010 2012 2013 2014 2015 2016

2019E 2020E 2021E 2022E 2018E Source: HercRentals and CIBC World Markets Inc.

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Exhibit 9. Rental Capex Has Been On The Rise

United Rentals (US$MM) HercRentals (US$MM)

1000 250 800 200 600 150 400 100 200 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2016 2017 2018 2016 2017 2018

H&E Equipment (US$MM)

200

150

100

50

0 Q1 Q2 Q3 Q4

2016 2017 2018

Source: Company reports and CIBC World Markets Inc.

3. Rising Rental Rates A Positive Sign: We have seen rental rates begin to turn positive amongst the large U.S. rental companies, with commentary suggesting positive rates are expected through the remainder of 2018. Rental rates are a key indicator of demand in the industrial rental equipment industry, with positive rates indicating strong demand.

Exhibit 10. Rental Rates Strengthening

Rental Rates (Y/Y % Change)

4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0%

-4.0%

Jul

Apr Oct

Jan Jun

Mar

Feb

Nov Dec

Aug Sep May

2016 2017 2018

Source: United Rentals

4. U.S. Tax Reform Provides An Added Boost: We see Skyjack, along with the rest of the industrial machinery manufacturing space, benefiting from U.S. tax reform. Several U.S. rental companies have noted that they see tax reform as a net positive for the overall rental industry, and have factored the lower tax rate and ability to write off capital expenditures into their capital spend guidance for the year. U.S. tax reform will translate into increased investments into rental machinery.

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Expansion Opportunities Driving Above-average Sales: The expansion of Skyjack’s product line has helped drive above-average sales and allows it to gain market share.

Exhibit 11. Skyjack's Industry-leading Growth

Sales CAGR (2014-2017) Skyjack Vs. Peers - Y/Y Sales Growth

14% 12.7% 40% 12% 23.3% 28.9% 30% 23.1% 10% 22.7% 20% 11.2% 8% 5.5% 12.4% 12.8% 6% 7.4% 10% 1.7% 4.7% 4% 2.1% 0.5% 2% 0% 0% -10% -3.0% -2% -5.4% -11.4% -11.8% -4% -20% -6% -3.6% -3.3% 2014 2015 2016 2017 OSH TEX PIG LNR OSH TEX PIG LNR

Source: Company reports and CIBC World Markets Inc.

As we note in the table below, Linamar has introduced a number of new products over the last few years to improve Skyjack’s competitive positioning. By 2020, Skyjack expects to have 98% portfolio range coverage by product type within Scissors, 95% portfolio range coverage within Booms, and 94% portfolio range coverage within Telehandlers.

Exhibit 12. Recent Skyjack Product Expansion

Product Description SJ519 TH “Little Big Cab (2018) New compact telehandler (SJ519 TH “Little Big Cab”) launched Feb 2018 driven by increased demand and market expansion for compact telehandlers in Asian markets. Skyjack SJIII 3219 DC scissor lift Major sale of Skyjack SJIII 3219 DC scissor lift fleets in Northern China (Tianjin Prosperity Bai-Li Ltd.). Contributes to LNR’s Industrial segment operating earnings in Q1 2018, an increase of $28.9 million, or 63.1% from Q1 2017. Skyjack SJ46 AJ compact articulated Launched in 2017 and one of the first major fleets sold to J K Ashbrook, a UK rental boom series company. SJ66 T straight booms, SJ46 AJ, SJ63 Sale of SJ66 T straight booms, SJ46 AJ, SJ63 AJ, and the recently launched SJ85 AJ AJ, and SJ85 AJ articulated booms articulated booms, and a range of DC electric scissors to UAE rental company, Aji (launch 2017) Rentals. Elevate Solutions (telematics software- Cloud-based and trackable mobile app for intrafleet communication, service requests, as-a-service) – launched in 2018 from billing and ERP (rental software for data transmission) for industrial fleets. partnership with Trackunit Source: Company reports and CIBC World Markets Inc.

As well, while the majority of Skyjack’s sales are in North America (~70%), it is looking to continue to grow its international sales. Linamar has two major plant expansions under way in Hungary that will make space for Skyjack's European business. Overall, Skyjack has a sub-15% market share with its Access target market, highlighting its opportunities to continue to grow.

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Exhibit 13. Access Target Market (US$7.6B In 2017)

Source: Company reports.

MacDon—Leverage To Positive Long-term Agriculture Trends We appear to have moved past the bottom of the agriculture cycle (as evidenced by an improving outlook for commodity prices), which should drive demand for agriculture equipment. John Deere is currently forecasting ~10% growth in retail sales in North America for 2018 and 5%-10% in Europe.

Exhibit 14. Industry Forecast Ag Sales

Agriculture & Turf Industry Retail Sales 2018 Forecast U.S. & Canada Ag ~10% EU 28 Ag 5-10% South American Ag Flat to up 5% Asia Ag ~Flat U.S. & Canada Turf & Utility Flat to up 5% Source: John Deere and CIBC World Markets Inc.

Near-term Trends In North American Agriculture Have Been Positive, But There Is Growing Uncertainty Given Trade Concerns: Looking at the near-term outlook for North American agriculture, there are a number of recent headwinds.

1. U.S. 2018 Farm Income Forecast To Decline: U.S. net farm income is forecast to decline 13% Y/Y in 2018. Our CIBC Chemicals & Fertilizer team notes farmers will have to make tough decisions, and will likely turn toward generic seeds and chemicals, and could push out purchases of new tractors/combines (similar to what happened this past year).

2. Canada – StatsCan Pointing To Smaller Y/Y Crop, But Still Historically High: Data from the July Farm Survey released by Statistics Canada on August 31 indicates that this year’s dry conditions will have an impact on crop yields. Overall crop production for 2018 is forecast to be down 5% Y/Y (but still fourth-highest on record). Our CIBC Chemical & Fertilizer team notes, however, that Canadian crop estimates could still increase because weather has improved since the survey work was completed in July. As well, the financial position of the Canadian farmer remains robust. Agriculture Canada forecasts 2018 net cash income (NCI) of $15.6 billion; while this represents a ~5% pullback compared to NCI in 2017, it would still be the second-highest NCI recorded to date and well above the five-year (2012- 2016) average.

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Exhibit 15. Canadian Farm Income Remains Healthy

Canadian Farm Income

70 20 60 50 15 40 10 30 20 5 10

0 0 ($B) Income Cash Net

Total Cash Receipts Receipts Total$B) Cash

1992 1990 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018E Total Cash Receipts Net Cash Income Source: Statistics Canada.

3. Strong Tractor Sales In H1/18, But Some Near-term Concerns From Escalating Trade Issues: Agriculture equipment dealers have posted strong Y/Y growth in new equipment sales. That said, some Canadian equipment dealers have recently become more cautious given the impact of rising steel costs on equipment prices that could temper near-term demand. That said, we have not seen any impact on new equipment sales, with total farm-size tractor sales up 13% Y/Y in June, and deliveries over the first half of the year increasing 6% over 2017. Sales momentum for larger tractors continues, with the 100HP-Plus segment increasing 23% Y/Y in June and 15% for the January-June period.

Exhibit 16. Canadian Retail Tractor & Combine Sales

Canadian Retail Tractor & Combine Sales ('000 Units)

5.0 4.0 3.0 2.0 1.0 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2018 2017 2016

Source: AEM and CIBC World Markets Inc.

Long-term Trends In North American Agriculture: Longer term, agriculture should benefit from strong structural tailwinds as global population growth and the expansion of the middle class drives more meat consumption. We have seen a general uptrend in grain production out of both Canada and the U.S., which provides a very supportive backdrop for agriculture equipment demand. We believe this supports a multi-year replacement demand cycle for agriculture equipment.

12 A Global Industrial Manufacturer - September 12, 2018

Exhibit 17. Long-term Grain Production Has Shown A Positive Trend

Canadian Corn Production (Kt) U.S. Corn Production (Kt)

18,000 450,000 16,000 400,000 14,000 350,000 12,000 300,000 10,000 250,000 8,000 200,000 6,000 150,000 4,000 100,000 2,000 50,000

0 0

1997/1998 2000/2001 1964/1965 1967/1968 1970/1971 1973/1974 1976/1977 1979/1980 1982/1983 1985/1986 1988/1989 1991/1992 1994/1995 2003/2004 2006/2007 2009/2010 2012/2013 2015/2016 2018/2019

1970/1971 2015/2016 1964/1965 1967/1968 1973/1974 1976/1977 1979/1980 1982/1983 1985/1986 1988/1989 1991/1992 1994/1995 1997/1998 2000/2001 2003/2004 2006/2007 2009/2010 2012/2013 2018/2019

Canadian Oilseed, Soybean Production (Kt) U.S. Oildseed, Soybean Production (Kt)

9,000 140,000 8,000 7,000 120,000 6,000 100,000 5,000 4,000 80,000 3,000 60,000 2,000 1,000 40,000 0 20,000 -1,000

-2,000 0

1988/1989 2015/2016 1964/1965 1967/1968 1970/1971 1973/1974 1976/1977 1979/1980 1982/1983 1985/1986 1991/1992 1994/1995 1997/1998 2000/2001 2003/2004 2006/2007 2009/2010 2012/2013 2018/2019

1988/1989 1964/1965 1967/1968 1970/1971 1973/1974 1976/1977 1979/1980 1982/1983 1985/1986 1991/1992 1994/1995 1997/1998 2000/2001 2003/2004 2006/2007 2009/2010 2012/2013 2015/2016 2018/2019

Canadian Wheat Production (Kt) U.S. Wheat Production (Kt)

40,000 90,000 35,000 80,000 30,000 70,000 60,000 25,000 50,000 20,000 40,000 15,000 30,000 10,000 20,000 5,000 10,000

0 0

1982/1983 1985/1986 1964/1965 1967/1968 1970/1971 1973/1974 1976/1977 1979/1980 1988/1989 1991/1992 1994/1995 1997/1998 2000/2001 2003/2004 2006/2007 2009/2010 2012/2013 2015/2016 2018/2019

2015/2016 1964/1965 1967/1968 1970/1971 1973/1974 1976/1977 1979/1980 1982/1983 1985/1986 1988/1989 1991/1992 1994/1995 1997/1998 2000/2001 2003/2004 2006/2007 2009/2010 2012/2013 2018/2019

Total Canada & U.S. Production (Kt)

700,000 600,000 500,000 400,000 300,000 200,000 100,000

0

1976/1977 1967/1968 1970/1971 1973/1974 1979/1980 1982/1983 1985/1986 1988/1989 1991/1992 1994/1995 1997/1998 2000/2001 2003/2004 2006/2007 2009/2010 2012/2013 2015/2016 2018/2019 1964/1965 Source: USDA

13 A Global Industrial Manufacturer - September 12, 2018

International Growth Opportunities: In addition to MacDon benefiting from healthy long-term industry tailwinds, Linamar has noted that, though the majority of MacDon’s current revenue is derived from North America, MacDon currently has plans in place to increase its European business.

Exhibit 18. MacDon's North American Exposure

Source: Company reports and CIBC World Markets Inc.

With MacDon now folded into Linamar’s operations, it can leverage its OROS manufacturing and fabrication painting capabilities in Europe, which lowers the risk and capital spend required for international expansion. Given the opportunity for MacDon to expand in Europe and the potential synergies with Linamar’s European facilities, similar to what we have seen with Skyjack, MacDon is positioned to grow above market rates.

Exhibit 19. Complementary Product Lines

Grain Harvesting Hay Harvesting Draper Headers/ Rotary Mower Corn Headers Sunflower Headers Grain Tables Pick Up Heads Headers OROS Yes Yes No No No MacDon No No Yes Yes Yes Source: Company reports and CIBC World Markets Inc.

Least Sensitive To Declining North American Auto Sales In the table below, we provide a sensitivity analysis for Linamar, Magna and Martinrea based on the estimated operating income impact of changes in North American auto sales. Given Linamar’s more diverse revenue platform, it is the least sensitive of the three main auto suppliers. Given concerns the U.S. auto cycle has plateaued, this suggests Linamar provides more downside earnings protection given the healthy outlook for Skyjack and MacDon.

14 A Global Industrial Manufacturer - September 12, 2018

Exhibit 20. Sensitivity Analysis—Estimated % Change In 2019E Operating Income From Vehicle Sales (LNR, MGA, And MRE)

North American Light Vehicle Sales 13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0 17.5 18.0 LNR -10.3% -9.7% -9.0% -6.9% -6.2% -4.0% -3.3% -0.9% -0.1% 4.1% MGA -17.3% -15.9% -14.4% -10.5% -8.9% -4.7% -3.1% 1.4% 3.0% 4.7% MRE -26.0% -24.2% -22.3% -16.1% -14.0% -7.4% -5.2% 1.8% 4.2% 11.7% Source: CIBC World Markets Inc.

Exhibit 21. Sensitivity Analysis—Estimated % Change In 2019E Operating Income From Varying Vehicle Sales And North American EBIT Margins (LNR, MGA, And MRE)

LNR Sensitivity Table - Estimated % Change In 2019E Operating Income North American Light Vehicle Sales -1.6% 13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0 17.5 18.0

6.0% -12.8% -12.3% -11.7% -11.2% -10.6% -10.0% -9.5% -8.9% -8.3% -7.8% 6.5% -11.6% -11.0% -10.4% -9.7% -9.1% -8.5% -7.9% -7.3% -6.7% -6.1% 7.0% -10.3% -9.7% -9.0% -8.3% -7.7% -7.0% -6.4% -5.7% -5.1% -4.4% 7.5% -9.0% -8.3% -7.6% -6.9% -6.2% -5.5% -4.8% -4.1% -3.4% -2.7% 8.0% -7.8% -7.0% -6.3% -5.5% -4.8% -4.0% -3.3% -2.5% -1.8% -1.0% 8.5% -6.5% -5.7% -4.9% -4.1% -3.3% -2.5% -1.7% -0.9% -0.1% 0.7% 9.0% -5.2% -4.4% -3.6% -2.7% -1.9% -1.0% -0.2% 0.7% 1.5% 2.4%

N. American EBIT Margin EBIT American N. 9.5% -4.0% -3.1% -2.2% -1.3% -0.4% 0.5% 1.4% 2.3% 3.2% 4.1%

MRE Sensitivity Table - Estimated % Change In 2019E Operating Income North American Light Vehicle Sales 0.0% 13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0 17.5 18.0

6.0% -29.9% -28.2% -26.5% -24.7% -23.0% -21.3% -19.5% -17.8% -16.1% -14.3% 6.5% -26.0% -24.2% -22.3% -20.4% -18.5% -16.6% -14.8% -12.9% -11.0% -9.1% 7.0% -22.1% -20.1% -18.1% -16.1% -14.0% -12.0% -10.0% -8.0% -6.0% -3.9% 7.5% -18.2% -16.1% -13.9% -11.7% -9.6% -7.4% -5.2% -3.1% -0.9% 1.3% 8.0% -14.3% -12.0% -9.7% -7.4% -5.1% -2.8% -0.5% 1.8% 4.2% 6.5% 8.5% -10.4% -8.0% -5.5% -3.1% -0.6% 1.8% 4.3% 6.8% 9.2% 11.7% 9.0% -6.5% -3.9% -1.3% 1.3% 3.9% 6.5% 9.1% 11.7% 14.3% 16.9%

N. American EBIT Margin EBIT American N. 9.5% -2.6% 0.1% 2.9% 5.6% 8.4% 11.1% 13.8% 16.6% 19.3% 22.1%

MGA Sensitivity Table - Estimated % Change In 2019E Operating Income North American Light Vehicle Sales 0.0% 13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0 17.5 18.0

6.5% -26.4% -25.3% -24.2% -23.1% -22.0% -20.9% -19.8% -18.7% -17.6% -16.5% 7.0% -24.1% -23.0% -21.8% -20.6% -19.4% -18.2% -17.0% -15.9% -14.7% -13.5% 7.5% -21.9% -20.6% -19.3% -18.1% -16.8% -15.5% -14.3% -13.0% -11.7% -10.5% 8.0% -19.6% -18.2% -16.9% -15.5% -14.2% -12.8% -11.5% -10.1% -8.8% -7.4% 8.5% -17.3% -15.9% -14.4% -13.0% -11.6% -10.1% -8.7% -7.3% -5.8% -4.4% 9.0% -15.0% -13.5% -12.0% -10.5% -8.9% -7.4% -5.9% -4.4% -2.9% -1.4% 9.5% -12.7% -11.1% -9.5% -7.9% -6.3% -4.7% -3.1% -1.5% 0.1% 1.7%

N. American EBIT Margin EBIT American N. 10.0% -10.5% -8.8% -7.1% -5.4% -3.7% -2.0% -0.3% 1.4% 3.0% 4.7% Source: Company reports and CIBC World Markets Inc.

15 A Global Industrial Manufacturer - September 12, 2018

3. Increasing CPV—Riding The Outsourcing Wave Key Takeaway: Linamar's Transportation division benefits from the trend towards increased outsourcing. Looking out to 2030, we estimate that Linamar’s Transportation revenue could almost double before even contemplating potential market share gains. Linamar continues to be able to drive strong earnings growth even in a flat/declining auto market and headwinds facing its legacy powertrain operations. Even though ICE vehicle production has peaked, the addressable market for Linamar continues to grow given the increased trend towards outsourcing.

Plateauing U.S. auto sales, concerns over the headwinds facing powertrain businesses, and NAFTA negotiations have weighed on Linamar’s share price. Continental’s recent profit warning highlights the difficulty auto suppliers face as they look to bridge the gap between their legacy portfolio and the changes occurring within the auto industry. The company noted that it was facing “higher costs in the powertrain sector due to the transition to products and systems for hybrid and electric vehicles.” Continental had laid out the industry challenges facing its Powertrain business.

 Over the next 15-20 years, the transformation of the automotive industry will cause the biggest changes in the Powertrain business.  Powertrain is most affected by the uncertainties regarding when and to what extent those changes may occur.  Powertrain requires the highest level of flexibility and responsiveness to adapt to changing market demands. That said, Linamar's Transportation division benefits from the trend towards increased outsourcing. The company estimates that the global market for propulsion systems is ~$500 billion with the addressable opportunity in outsourcing growing each year.

Exhibit 22. Total Global Powertrain / Driveline Market ($ Bln)

Global Markets 2017 2020F 2030F Light Vehicle 378 408 435 Commercial Truck & Off Highway Vehicle 129 124 130 Total 507 532 565 Source: Company reports and CIBC World Markets Inc.

Based on Linamar’s estimates for content potential per vehicle, we calculated its potential revenue lift from the trend towards increased outsourcing.

First, Linamar estimates the addressable content per vehicle is currently ~$2,000, which equates to 50% of the content potential being outsourced. Based on this estimate, we calculated Linamar's “market share” using our 2018 forecast for its CPV by geography.

Exhibit 23. Linamar's Current "Market Share"

Year North America Europe Asia 2018E Estimated Addressable CPV $1,836 $1,836 $1,836 LNR CPV $170 $77 $10 Implied “Market Share” 9% 4% 0.5% Source: Company reports and CIBC World Markets Inc.

16 A Global Industrial Manufacturer - September 12, 2018

Linamar sees this addressable content potential per vehicle reaching ~$3,000 by 2030 (75% of content potential is outsourced). If we assume Linamar maintains its market share, its CPV would increase by 60+% over the next decade due solely to more production being outsourced.

Exhibit 24. Implied Future CPV Based On Linamar's Current "Market Share"

Year North America Europe Asia 2020E Addressable CPV As LNR Forecast $2,040 $2,040 $2,040 Market Share As Per Exhibit 23 9% 4% 0.5% Implied LNR CPV $188 $86 $11 2030E Addressable CPV As LNR Forecast $3,000 $3,000 $3,000 Market Share As Per Exhibit 23 9% 4% 0.5% Implied LNR CPV $278 $126 $16 % Change In CPV (2018-2030) 64% 64% 64%

Source: Company reports and CIBC World Markets Inc.

But the growing demand for hybrid and electric vehicles also impacts the addressable market for Linamar. Below, we highlight Linamar’s forecast CPV potential across various propulsion types.

Exhibit 25. CPV Addressable Market

Content Potential Per Years Propulsion Type % Outsourced Addressable CPV Vehicle 2030F ICE $4,000 75% $3,000 Hybrid $4,000 75% $3,000 BEV/FCEV $2,000 75% $1,500 2020F ICE $4,000 51% $2,040 Hybrid $4,000 51% $2,040 BEV/FCEV $2,000 51% $1,020 2010 ICE $4,000 32% $1,280 Hybrid $4,000 32% $1,280 BEV/FCEV $2,000 32% $640 Source: Company reports and CIBC World Markets Inc.

Exhibit 26. Implied CPV At Current Market Share

ICE Hybrid BEV/FCEV 2030F Addressable CPV $3,000 $3,000 $1,500 North America Market Share As Per Exhibit 23 9% 9% 9% 2030F Implied CPV $278 $278 $139 Europe Market Share As Per Exhibit 23 4% 4% 4% 2030F Implied CPV $126 $126 $63 Asia Market Share As Per Exhibit 23 0.5% 0.5% 0.5% 2030F Implied CPV $16 $16 $8 Source: Company reports and CIBC World Markets Inc.]

Net-net, Linamar’s Transportation division is well positioned to benefit from above-average sales growth. If we look out to 2030 using BNEF's (Bloomberg New Energy Finance) vehicle forecast by propulsion system and Linamar's potential CPV in 2030 (based on Exhibits 24 and 25), this would add ~$4 billion of revenue to auto sales before contemplating potential CPV market share gains.

17 A Global Industrial Manufacturer - September 12, 2018

Exhibit 27. Total Potential Revenue For Linamar's Powertrain Division In 2030 (2017 Transportation Revenue = $4.8 Billion)

Vehicles (Mln Unit) CPV Potential Sales ($ Mlns) North America ICE 16.8 $278 $4,661 Hybrid 1.3 $278 $361 BEV/FCEV 5.0 $139 $634 Subtotal 23.1 $5,717 Europe ICE 13.1 $126 $1,648 EV 6.0 $63 $377 Subtotal 19.1 $2,026 Asia ICE 34.5 $16 $564 HEV 2.5 $16 $41 BEV/FCEV 9.0 $8 $74 Subtotal 46.0 $678 Total 88.2 $8,420 Source: BNEF, company reports and CIBC World Markets Inc.

We do believe Linamar is positioned to gain market share and has a proven history of increasing its CPV.

Exhibit 28. CPV By Region

North America Europe Asia $165.44 $170 $159.07 $90 $80.02 $12 $160 $153.82 $80 $9.66 $150.37 $69.62 $10 $9.11 $150 $70 $63.60 $8.32 $140 $130.57 $60 $8 $6.70 $125.15 $6.36 $130 $50 $5.40 $39.47 $6 $120 $40 $110 $30 $19.84 $4 $100 $20 $14.45 $2 $90 $10 $80 $0 $0 2013 2014 2015 2016 2017 Q2/18 2013 2014 2015 2016 2017 Q2/18 2013 2014 2015 2016 2017 Q2/18

Source: Company reports and CIBC World Markets Inc.

In the exhibit below, we estimate the sensitivity of Linamar’s Transportation revenue to changes in its CPV market share and the percentage of content potential per vehicle that is outsourced.

18 A Global Industrial Manufacturer - September 12, 2018

Exhibit 29. Sensitivity Tables (2017 Transportation Revenue = $4.8 Billion)

2030E Transportation Revenue Potential ($ millions) % Change In CPV Market Share From Current Levels -10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 65% 6,568 6,714 6,860 7,006 7,152 7,298 7,444 7,590 7,736 7,882 8,027 67% 6,770 6,920 7,071 7,221 7,372 7,522 7,673 7,823 7,974 8,124 8,274 69% 6,972 7,127 7,282 7,437 7,592 7,747 7,902 8,057 8,212 8,367 8,521

71% 7,174 7,334 7,493 7,652 7,812 7,971 8,131 8,290 8,450 8,609 8,768 73% 7,376 7,540 7,704 7,868 8,032 8,196 8,360 8,524 8,688 8,852 9,015 75% 7,578 7,747 7,915 8,084 8,252 8,420 8,589 8,757 8,926 9,094 9,262 77% 7,780 7,953 8,126 8,299 8,472 8,645 8,818 8,991 9,164 9,337 9,509

% Outsourced % 79% 7,983 8,160 8,337 8,515 8,692 8,870 9,047 9,224 9,402 9,579 9,756 81% 8,185 8,367 8,548 8,730 8,912 9,094 9,276 9,458 9,640 9,822 10,003

Content Potential Per Vehicle Vehicle Per Potential Content 83% 8,387 8,573 8,759 8,946 9,132 9,319 9,505 9,691 9,878 10,064 10,250 85% 8,589 8,780 8,971 9,161 9,352 9,543 9,734 9,925 10,116 10,307 10,497

% Increase In Auto Sales 2030E Versus 2017 % Change In CPV Market Share From Current Levels -10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 65% 35.9% 38.9% 41.9% 44.9% 47.9% 50.9% 54.0% 57.0% 60.0% 63.0% 66.0%

67% 40.0% 43.1% 46.3% 49.4% 52.5% 55.6% 58.7% 61.8% 64.9% 68.0% 71.2% 69% 44.2% 47.4% 50.6% 53.8% 57.0% 60.2% 63.4% 66.6% 69.9% 73.1% 76.3%

71% 48.4% 51.7% 55.0% 58.3% 61.6% 64.9% 68.2% 71.5% 74.8% 78.1% 81.4% 73% 52.6% 56.0% 59.4% 62.7% 66.1% 69.5% 72.9% 76.3% 79.7% 83.1% 86.5% 75% 56.8% 60.2% 63.7% 67.2% 70.7% 74.2% 77.7% 81.1% 84.6% 88.1% 91.6% 77% 60.9% 64.5% 68.1% 71.7% 75.2% 78.8% 82.4% 86.0% 89.5% 93.1% 96.7%

% Outsourced % 79% 65.1% 68.8% 72.5% 76.1% 79.8% 83.5% 87.1% 90.8% 94.5% 98.1% 101.8% 81% 69.3% 73.1% 76.8% 80.6% 84.3% 88.1% 91.9% 95.6% 99.4% 103.2% 106.9%

Content Potential Per Vehicle Per Potential Content 83% 73.5% 77.3% 81.2% 85.0% 88.9% 92.7% 96.6% 100.5% 104.3% 108.2% 112.0% 85% 77.7% 81.6% 85.5% 89.5% 93.4% 97.4% 101.3% 105.3% 109.2% 113.2% 117.1% Source: Company reports and CIBC World Markets Inc.

19 A Global Industrial Manufacturer - September 12, 2018

Valuation

Exhibit 30. Valuation Table

Company Ticker P/E PEG RATIO EV/EBITDA P/CF FCF Yield (Market Cap) FCF Yield (EV) Price/ Symbol 2017A 2018E 2019E 2018E 2019E 2017A 2018E 2019E 2017A 2018E 2019E 2017A 2018E 2019E 2017A 2018E 2019E Book Canadian Auto Suppliers Linamar Corp LNR 6.8x 5.9x 5.4x 0.4x 0.5x 5.5x 4.7x 4.3x 4.6x 3.6x 3.4x 10.4% 8.7% 12.4% 6.5% 5.5% 7.8% 1.0x Martinrea International Inc MRE 7.2x 6.1x 5.4x 0.3x 0.4x 4.5x 4.0x 3.7x 3.9x 3.2x 3.0x 3.6% 4.1% 8.4% 2.4% 2.7% 5.6% 1.1x Magna International Inc MG 8.8x 7.7x 7.1x 0.5x 0.8x 5.2x 5.0x 4.8x 5.9x 4.8x 4.6x 8.1% 8.3% 9.6% 6.6% 6.8% 7.8% 1.6x Ex co Technologies Ltd XTC 10.5x 9.7x 8.9x 1.1x 1.1x 5.6x 5.5x 5.2x 7.5x 7.2x 6.3x 11.8% 6.9% 10.3% 11.5% 6.7% 10.0% 1.3x Average 8.3x 7.3x 6.7x 0.6x 0.7x 5.2x 4.8x 4.5x 5.5x 4.7x 4.3x 8.5% 7.0% 10.2% 6.8% 5.4% 7.8% 1.3x

North American Auto Suppliers - Direct Competitors American Ax le & Mfg Holdings AXL 4.8x 4.7x 5.3x 1.3x -0.5x 5.1x 4.4x 4.6x 2.9x 2.4x 2.4x 7.7% 12.1% 15.3% 2.8% 4.4% 5.5% 1.1x Borgw arner Inc BWA 11.4x 9.9x 9.2x 0.6x 1.3x 7.5x 6.2x 5.9x 7.9x 7.5x 7.0x 6.7% 6.2% 7.3% 5.6% 5.2% 6.0% 2.3x Adient Plc ADNT 4.9x 6.7x 4.7x -0.3x 0.1x 4.1x 4.6x 4.3x 6.1x 4.3x 2.8x 4.4% 2.5% 8.1% 2.8% 1.6% 5.1% 1.0x Lear Corp LEA 9.4x 8.3x 7.6x 0.6x 0.8x 5.4x 4.9x 4.7x 6.1x 6.1x 6.2x 11.4% 11.7% 12.1% 10.4% 10.8% 11.1% 2.4x Tow er International Inc TOWR 8.7x 7.9x 7.9x 0.8x -32.7x 4.6x 4.2x 4.1x 4.0x NM NM 9.4% 7.5% 9.4% 6.5% 5.2% 6.5% 2.3x Average 7.8x 7.5x 6.9x 0.6x -6.2x 5.3x 4.9x 4.7x 5.4x 5.1x 4.6x 7.9% 8.0% 10.4% 5.6% 5.4% 6.9% 1.8x

North American Auto Suppliers - Indirect Competitors Meritor Inc MTOR 9.6x 7.0x 6.6x 0.2x 1.1x 6.7x 5.4x 5.2x 8.6x 5.7x 4.9x 4.4% 8.5% NM 3.2% 6.1% NM 6.8x Dana Inc DAN 7.7x 6.5x 6.0x 0.4x 0.6x 5.4x 4.6x 4.2x 5.1x 4.4x 4.0x 5.8% 10.0% 10.9% 3.6% 6.2% 6.8% 2.4x Superior Industries Intl SUP 16.8x NM 25.4x -3.9x 0.0x 9.1x 6.4x 5.9x 7.2x NM NM -1.6% 13.3% 15.1% -0.6% 4.8% 5.5% 1.1x Visteon Corp VC 17.2x 16.4x 14.4x 3.3x 1.0x 8.3x 8.5x 8.0x 15.4x 11.0x 9.8x 3.8% 5.2% 6.0% 3.9% 5.3% 6.1% 6.2x Delphi Technologies Plc DLPH 6.8x 7.3x 6.8x -1.1x 0.9x 5.3x 5.4x 5.2x 8.0x 5.8x 4.9x 6.2% 6.5% 10.9% 4.3% 4.6% 7.6% 19.9x Cooper-Standard Holding CPS 12.0x 10.8x 11.0x 1.0x -7.3x 6.0x 5.9x 5.7x 7.5x 8.7x 7.3x 5.3% 5.0% 5.6% 4.7% 4.3% 4.9% 2.8x Nemak Sab De Cv NEMAKA 13.0x 11.8x 10.4x 1.2x 0.8x 5.5x 5.3x 5.2x 3.6x 4.6x 5.6x 13.5% 7.0% 5.7% 8.7% 4.6% 3.7% 1.3x Aptiv Plc APTV 18.4x 15.9x 14.4x 1.0x 1.4x 12.1x 10.6x 9.8x 15.6x 11.9x 10.3x 3.4% 4.2% 5.4% 3.0% 3.6% 4.7% 6.4x Autoliv Inc ALV 13.1x 11.0x 9.5x 0.6x 0.6x 7.0x 6.8x 6.0x 8.0x 7.7x 7.1x 4.8% 6.6% 8.2% 3.8% 5.3% 6.6% 3.8x Average 12.7x 10.8x 11.6x 0.3x -0.1x 7.3x 6.5x 6.1x 8.8x 7.5x 6.7x 5.1% 7.4% 8.5% 3.8% 5.0% 5.7% 5.6x

European Auto Suppliers Continental Ag CON 10.1x 10.4x 9.3x -4.1x 0.8x 5.0x 5.3x 4.8x 5.8x 6.1x 5.5x 7.9% 6.2% 6.9% 7.1% 5.5% 6.2% 1.8x Valeo Sa FR 8.8x 9.3x 8.1x -1.6x 0.5x 4.9x 4.6x 4.1x 4.5x 3.9x 3.5x 9.2% 3.3% 4.1% 6.9% 2.5% 3.1% 1.9x Hella Gmbh & Co Kgaa HLE 15.2x 12.0x 11.5x 0.4x 2.7x 5.5x 5.1x 4.9x 6.6x 6.2x 6.2x 5.2% 6.0% 5.6% 5.0% 5.8% 5.4% 2.1x Average 11.4x 10.6x 9.6x -1.8x 1.3x 5.2x 5.0x 4.6x 5.6x 5.4x 5.1x 7.4% 5.2% 5.5% 6.3% 4.6% 4.9% 2.0x

Asian Auto Suppliers Denso Corp 6902 12.9x 13.6x 12.0x -2.8x 0.9x 8.2x 7.2x 5.3x 7.5x 7.3x 7.9x 5.0% 9.1% 10.4% 5.4% 9.8% 11.2% 1.1x Hy undai Mobis Co Ltd 12330 13.9x 9.8x 8.3x 0.2x 0.5x 5.7x 5.4x 4.7x 11.0x 0.8x 7.5x 5.8% 5.2% 6.9% 8.1% 7.4% 9.8% 0.7x Aisin Seiki Co Ltd 7259 10.8x 9.4x 9.0x 0.6x 2.4x 4.4x 4.5x 3.7x 4.6x 3.6x 4.0x 3.8% 14.2% 19.3% 2.8% 10.5% 14.2% 1.0x Average 12.6x 10.9x 9.8x -0.7x 1.3x 6.1x 5.7x 4.6x 7.7x 3.9x 6.5x 4.9% 9.5% 12.2% 5.5% 9.2% 11.7% 2.9x Group Mean 10.8x 9.5x 9.3x 0.0x -0.9x 6.1x 5.6x 5.2x 7.0x 5.8x 5.6x 6.5% 7.4% 9.3% 5.2% 5.6% 7.0% 3.1x

CIBC Estimates Linamar Corp LNR 6.8x 6.2x 5.2x 0.6x 0.3x 5.6x 4.8x 4.3x 4.6x 4.2x 3.6x 10.4% 8.9% 11.6% 6.5% 5.6% 7.3% 1.0x Martinrea International Inc MRE 7.2x 6.1x 5.5x 0.3x 0.6x 4.5x 4.1x 3.7x 3.9x 3.0x 2.7x 3.6% 3.3% 9.3% 2.4% 2.2% 6.1% 1.1x Magna International Inc MG 8.9x 7.8x 7.0x 0.6x 0.6x 4.9x 4.7x 4.4x 5.9x 5.1x 4.3x 8.1% 8.0% 9.2% 6.6% 6.5% 7.5% 1.6x Source: Bloomberg, Company reports and CIBC World Markets Inc.

Trading At A Discount EV To Forward EBITDA Linamar is currently trading at 4.3x our 2019E EBITDA versus broader North American auto suppliers trading at an average of 5.4x and the S&P Auto Parts Index trading at 6.9x.

10-year History: We compare Linamar’s valuation to the other Canadian auto suppliers, the North American auto supplier comp group, the S&P Auto Parts Index, and the S&P/TSX over a 10-year horizon. Compared to Magna, the S&P/TSX, the S&P Auto Parts Index, and the North American auto suppliers comp group, Linamar’s valuation spread is currently one standard deviation below its 10-year average or lower.

20 A Global Industrial Manufacturer - September 12, 2018

Exhibit 31. EV To Forward EBITDA Spread – 10-year View

LNR-MRE Spread LNR-MGA Spread EV To Forward EBITDA EV To Forward EBITDA

3.0 2.5 2.0 2.0 1.5 1.0 1.0 0.0 0.5 0.0 (1.0) (0.5) (2.0) (1.0)

(3.0) (1.5)

Jul-08 Jul-13 Jul-18

Jul-08 Jul-13 Jul-18

Oct-09 Apr-12 Oct-14 Apr-17

Jan-11 Jun-11 Jan-16 Jun-16

Oct-09 Apr-12 Oct-14 Apr-17

Jan-11 Jun-11 Jan-16 Jun-16

Mar-10 Mar-15

Feb-13 Feb-18

Mar-10 Feb-13 Mar-15 Feb-18 Dec-08 Aug-10 Nov-11 Sep-12 Dec-13 Aug-15 Nov-16 Sep-17

Dec-08 Nov-11 Dec-13 Nov-16

Aug-10 Sep-12 Aug-15 Sep-17

May-09 May-14

May-09 May-14

Spread Average 1 Std. Dev. Over 1 Std. Dev. Under Spread Average 1 Std. Dev. Over 1 Std. Dev. Under

LNR-North American Comp Spread LNR-S&P Auto Parts Index Spread EV To Forward EBITDA EV To Forward EBITDA

1.0 0.0 0.5 (1.0) 0.0 (2.0) (0.5) (1.0) (3.0) (1.5) (4.0) (2.0) (5.0) (2.5)

(3.0) (6.0)

Jul-08 Jul-13 Jul-18

Jul-08 Jul-13 Jul-18

Oct-09 Apr-12 Oct-14 Apr-17

Jan-11 Jun-11 Jan-16 Jun-16

Oct-09 Apr-12 Oct-14 Apr-17

Jan-11 Jun-11 Jan-16 Jun-16

Mar-10 Mar-15

Feb-13 Feb-18

Mar-10 Feb-13 Mar-15 Feb-18 Dec-08 Aug-10 Nov-11 Sep-12 Dec-13 Aug-15 Nov-16 Sep-17

Dec-08 Nov-11 Dec-13 Nov-16

Aug-10 Sep-12 Aug-15 Sep-17

May-09 May-14

May-09 May-14

Spread Average 1 Std. Dev. Over 1 Std. Dev. Under Spread Average 1 Std. Dev. Over 1 Std. Dev. Under

LNR-S&P/TSX Spread EV To Forward EBITDA

2.0 1.0 0.0 (1.0) (2.0) (3.0) (4.0) (5.0) (6.0)

(7.0)

Jul-08 Jul-13 Jul-18

Oct-09 Apr-12 Oct-14 Apr-17

Jan-11 Jun-11 Jan-16 Jun-16

Mar-10 Mar-15

Feb-13 Feb-18

Dec-08 Nov-11 Dec-13 Nov-16

Aug-10 Sep-12 Aug-15 Sep-17

May-09 May-14

Spread Average 1 Std. Dev. Over 1 Std. Dev. Under

Source: Bloomberg, Factset, company reports and CIBC World Markets Inc.

21 A Global Industrial Manufacturer - September 12, 2018

Five-year History: When comparing Linamar’s valuation spread over a five-year period versus these various benchmarks, Linamar is currently trading at one standard deviation below its five-average (or lower) versus Magna, the S&P/TSX, S&P Auto Parts Index, and the North American auto suppliers comp group.

Exhibit 32. EV To Forward EBITDA Spread – 5-year View

LNR-MRE Spread LNR-MGA Spread EV To Forward EBITDA EV To Forward EBITDA

2.5 1.0

2.0 0.5 1.5

1.0 0.0

0.5 (0.5) 0.0 (1.0) (0.5)

(1.0) (1.5)

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Spread Average 1 Std. Dev. Over 1 Std. Dev. Under Spread Average 1 Std. Dev. Over 1 Std. Dev. Under

LNR-North American Comp Spread LNR-S&P Auto Parts Index Spread EV To Forward EBITDA EV To Forward EBITDA

1.0 (1.5)

0.5 (2.0) 0.0

(0.5) (2.5)

(1.0) (3.0) (1.5) (3.5) (2.0)

(2.5) (4.0)

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Spread Average 1 Std. Dev. Over 1 Std. Dev. Under Spread Average 1 Std. Dev. Over 1 Std. Dev. Under

LNR-S&P/TSX Spread EV To Forward EBITDA

0.0

(1.0)

(2.0)

(3.0)

(4.0)

(5.0)

(6.0)

(7.0)

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Spread Average 1 Std. Dev. Over 1 Std. Dev. Under

Source: Bloomberg, Factset, Company reports and CIBC World Markets Inc.

22 A Global Industrial Manufacturer - September 12, 2018

Historical Valuation: Over the past decade, Linamar has traded at an average EV to forward EBITDA of 4.5x and up to 5.1x looking back the last five years. Linamar is currently trading at more than one standard deviation below its five- year average.

Exhibit 33. Historical EV To Forward EBITDA Valuation

LNR EV To Forward EBITDA LNR EV To Forward EBITDA 10 Years 5 Years

8.0 7.5 7.0 7.0 6.0 6.5 6.0 5.0 5.5 4.0 5.0 3.0 4.5 2.0 4.0 1.0 3.5

0.0 3.0

Jul-08 Jul-13 Jul-18

Oct-09 Apr-12 Oct-14 Apr-17 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Jan-11 Jun-11 Jan-16 Jun-16

Mar-10 Feb-13 Mar-15 Feb-18

Dec-08 Aug-10 Nov-11 Sep-12 Dec-13 Aug-15 Nov-16 Sep-17

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18

May-09 May-14 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

LNR Average 1 Std. Dev. Over 1 Std. Dev. Under LNR Average 1 Std. Dev. Over 1 Std. Dev. Under

Source: Bloomberg, Factset, Company reports and CIBC World Markets Inc.

Forward P/E Linamar is currently trading at 5.2x our 2019E EPS versus the broader North American auto suppliers’ average of 9.2x and the S&P Auto Parts Index at 10.9x.

10-year History: Linamar’s valuation discount is now more than one standard deviation below its 10-year average versus the North American auto supplier comp group, the S&P Auto Parts Index, and the S&P/TSX. Linamar’s valuation spread versus Magna is below the 10-year average as well.

23 A Global Industrial Manufacturer - September 12, 2018

Exhibit 34. Forward P/E Spread – 10-year View

LNR-MRE Spread LNR-MGA Spread Forward P/E Forward P/E

6.0 3.0 2.0 4.0 1.0 2.0 0.0 0.0 (1.0) (2.0) (2.0) (3.0) (4.0) (4.0) (6.0) (5.0)

(8.0) (6.0)

Jul-08 Jul-13 Jul-18

Jul-08 Jul-13 Jul-18

Oct-09 Apr-12 Oct-14 Apr-17

Oct-09 Apr-12 Oct-14 Apr-17 Jan-11 Jun-11 Jan-16 Jun-16

Jan-11 Jun-11 Jan-16 Jun-16

Mar-10 Feb-13 Mar-15 Feb-18

Dec-08 Nov-11 Dec-13 Nov-16

Mar-10 Feb-13 Mar-15 Feb-18 Aug-10 Sep-12 Aug-15 Sep-17

Dec-08 Aug-10 Nov-11 Sep-12 Dec-13 Aug-15 Nov-16 Sep-17

May-09 May-14

May-09 May-14

Spread Average 1 Over 1 Under Spread Average 1 Over 1 Under

LNR-North American Comp Spread LNR-S&P Auto Parts Index Spread Forward P/E Forward P/E

5.0 4.0 4.0 3.0 2.0

2.0 0.0 1.0 (2.0) 0.0 (1.0) (4.0)

(2.0) (6.0) (3.0) (8.0) (4.0)

(5.0) (10.0)

Jul-08 Jul-13 Jul-18

Jul-08 Jul-13 Jul-18

Oct-09 Apr-12 Oct-14 Apr-17

Oct-09 Apr-12 Oct-14 Apr-17 Jan-11 Jun-11 Jan-16 Jun-16

Jan-11 Jun-11 Jan-16 Jun-16

Mar-10 Feb-13 Mar-15 Feb-18

Mar-10 Mar-15 Dec-08 Aug-10 Nov-11 Sep-12 Dec-13 Aug-15 Nov-16 Sep-17

Feb-13 Feb-18

Dec-08 Aug-10 Nov-11 Sep-12 Dec-13 Aug-15 Nov-16 Sep-17

May-09 May-14

May-09 May-14

Spread Average 1 Over 1 Under Spread Average 1 Over 1 Under

LNR-S&P/TSX Spread Forward P/E

5.0 3.0 1.0 (1.0) (3.0) (5.0) (7.0) (9.0) (11.0) (13.0)

(15.0)

Jul-08 Jul-13 Jul-18

Oct-09 Apr-12 Oct-14 Apr-17

Jan-11 Jun-11 Jan-16 Jun-16

Mar-10 Feb-13 Mar-15 Feb-18

Dec-08 Nov-11 Dec-13 Nov-16

Aug-10 Sep-12 Aug-15 Sep-17

May-09 May-14

Spread Average 1 Over 1 Under

Source: Bloomberg, Factset, company reports and CIBC World Markets Inc.

24 A Global Industrial Manufacturer - September 12, 2018

Five-year History: Linamar’s valuation spread versus the North American auto supplier comp group, the S&P Auto Parts Index, the S&P/TSX, and Magna is currently more than one standard deviation below its five-year average.

Exhibit 35. Forward P/E Spread – 5-year View

LNR-MRE Spread LNR-MGA Spread Forward P/E Forward P/E

8.0 5.0 7.0 4.0 6.0 3.0 5.0 4.0 2.0 3.0 1.0 2.0 0.0 1.0 (1.0) 0.0 (1.0) (2.0)

(2.0) (3.0)

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Spread Average 1 Over 1 Under Spread Average 1 Over 1 Under

LNR-North American Comp Spread LNR-S&P Auto Parts Index Spread Forward P/E Forward P/E

5.0 2.0 4.0 1.0 3.0 0.0 2.0 (1.0) 1.0 (2.0) 0.0 (3.0) (1.0) (4.0) (2.0) (5.0) (3.0) (6.0) (4.0) (7.0)

(5.0) (8.0)

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Spread Average 1 Over 1 Under Spread Average 1 Over 1 Under

LNR-S&P/TSX Spread Forward P/E

1.0

(1.0)

(3.0)

(5.0)

(7.0)

(9.0)

(11.0)

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18

Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Spread Average 1 Over 1 Under

Source: Bloomberg, Factset, Company reports and CIBC World Markets Inc.

25 A Global Industrial Manufacturer - September 12, 2018

Historical Valuation: Over the past decade, Linamar has traded at an average forward P/E of ~9.1x over both a five- and a 10-year history. Linamar is currently trading at over one standard deviation below its average over both time horizons.

Exhibit 36. Historical EV To Forward EBITDA Valuation

LNR Forward P/E LNR Forward P/E 10 Years 5 Years

18.0 16.0 16.0 14.0 14.0 12.0 12.0 10.0 10.0 8.0 8.0 6.0 6.0 4.0 4.0 2.0 2.0

0.0 0.0

Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17

Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18

May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

LNR Average 1 Std. Dev. Over 1 Std. Dev. Under LNR Average 1 Std. Dev. Over 1 Std. Dev. Under

Source: Bloomberg, Factset, company reports and CIBC World Markets Inc. FCF Yield We see Linamar trading at a compelling FCF yield, especially versus its peer group over our forecast period. On both our 2019 and 2020 estimates, its FCF yield is north of 10%.

Exhibit 37. Linamar's Compelling FCF Yield Versus Comps

2019E FCF Yield (%) 2020E FCF Yield (%)

20 18.0 20 18.2 15.6 14.3 15 15 11.9 12.3 11.7 11.1 11.7 9.1 9.2 9.8 9.5 10.2 10 8.3 8.5 8.6 7.1 7.7 7.8 10 7.4 7.6 8.1 6.0 6.1 6.4 6.7 6.8 6.5 6.5 6.7 6.9 7.0 5.1 5.4 5.6 4.2 4.4 4.5 4.8 5.1 5 3.7 2.0 5 2.8

0 0

FR

EO

FR

EO

ALV LEA AXL

HLE ED4

BDT LNR

CON MRE ALV

6594 7259 4217 7212

RHM BWA HLE ED4

POM MGA

BDT LNR

CON MRE

6594 4217 7259 7212

POM RHM BWA MGA

APTV

GEST ADNT

GNTX

APTV

GEST ADNT TOWR Source: Factset and CIBC World Markets Inc.

When looking back over the last decade, our FCF forecasts for 2019 and 2020 support our argument for a multiple re-rating. Since mid-2008, Linamar’s next 12-month FCF yield has ranged from -15% to north of 20%, averaging ~8% since 2016.

26 A Global Industrial Manufacturer - September 12, 2018

Exhibit 38. Linamar's Historical NTM FCF Yield

LNR FCF Yield (NTM)

40 30 20 10 0 (10)

(20)

11/26/2008 06/25/2009 01/21/2010 08/17/2010 03/14/2011 10/06/2011 05/03/2012 11/29/2012 03/13/2009 10/07/2009 05/05/2010 11/29/2010 06/24/2011 01/20/2012 08/15/2012 03/15/2013 06/27/2013 10/09/2013 01/23/2014 05/07/2014 08/19/2014 12/01/2014 03/17/2015 06/29/2015 10/09/2015 01/25/2016 05/06/2016 08/18/2016 11/30/2016 03/16/2017 06/28/2017 10/10/2017 01/24/2018 05/08/2018 08/15/2008 Source: Factset and CIBC World Markets Inc.

27 A Global Industrial Manufacturer - September 12, 2018

Financial Estimates Financial Outlook Linamar provided the following outlook for 2018 and 2019.

Exhibit 39. Linamar's Market Snapshot 2018 And 2019

Source: Company reports.

Transportation Segment While North American auto sales have plateaued, long-term revenue growth will be driven by Linamar launching nearly $4.5 billion of new work today. Launches in 2018 and 2019 are expected to total $700 million-$800 million and $1.2 billion- $1.3 billion, respectively. In addition, 5%-10% of business normally exits every year and expectations are for this to be at the low end of the range this year and at the higher end in 2019.

Linamar targets normalized margins of 7%-10% and expects this to be at the mid- range in 2018 and expand in 2019. Operating margins were 10% in 2017.

Industrial Segment Linamar is targeting Skyjack sales this year to remain in the double-digit range, moving to a high single-digit to low double-digit range next year. For MacDon, expectations are for mid-single-digit growth this year and low-double-digit growth next year.

As a result of the acquisition of MacDon, Linamar revised its target margins within Industrial from 12%-15% to 14%-18%. The company expects to be at the midpoint of this new range this year with expansion next year. Operating margins were 14.5% in 2018.

Consolidated Results Sales: Linamar is forecasting strong double-digit growth in 2018 and high single- digit growth in 2019.

Net Margins: Linamar’s net margin target range is 7%-9%. For 2018 and 2019, the company expects margins in the 8%-8.5% range, at the low end in 2018 and expanding in 2019. Overall, Linamar expects double-digit normalized earnings growth in both 2018 and 2019.

28 A Global Industrial Manufacturer - September 12, 2018

Impact Of Steel & Aluminum Tariffs: Linamar’s net margin guidance reflects some of the cost pressures from higher steel and aluminum prices. While the company is able to recoup 100% of tariff costs from U.S. steel and aluminum imports under the Canadian duty drawback program, Linamar noted that some suppliers have raised prices to take advantage of the tariff on imported steel and aluminum. These higher input costs are not eligible to be recouped.

Capex: Linamar provided guidance for higher year-over-year capex as a percentage of sales in 2018, to reach the mid-level of its targeted range of 6%-8% and with 2019 seeing similar results.

Earnings Expectations Below is a summary of our key financial forecasts.

Exhibit 40. Financial Summary ($ mlns. except per share and where noted otherwise)

2016 2017 2018E Y/Y % 2019E Y/Y % 2020E Y/Y %

Transportation Division Total Sales 5,139 5,430 5,756 6.0% 6,204 7.8% 6,617 6.7% Operating Earnings 551 545 502 -7.9% 589 17.3% 629 6.7% Operating Margin 10.7% 10.0% 8.7% -13.1% 9.5% 8.9% 9.5% 0.0% Industrial Division Sales 866 1,116 1,889 69.2% 2,108 11.6% 2,213 5.0% Operating Earnings 145 162 324 99.3% 370 14.3% 387 4.6% Operating Margin 16.8% 14.5% 17.1% 17.8% 17.6% 2.5% 17.5% -0.4% Consolidated Results Revenue 6,006 6,546 7,645 16.8% 8,312 8.7% 8,831 6.2% EBITDA 1,030 1,028 1,195 16.3% 1,347 12.7% 1,432 6.3% Operating Income 697 708 826 16.7% 957 15.8% 1,016 6.1% Operating Margin 11.6% 10.8% 10.7% -0.6% 11.5% 7.1% 11.5% -0.1% Adj. Net Earnings 522 534 593 11.0% 702 18.4% 759 8.1% Adj. Net Margins 8.7% 8.2% 7.8% -5.0% 8.4% 8.9% 8.6% 1.7% FD EPS 7.92 8.09 8.97 10.8% 10.62 18.4% 11.47 8.1% Source: Company reports and CIBC World Markets Inc.

Balance Sheet—Deleveraging A FCF Priority At the end of Q2/18, Linamar’s leverage ratio sat at 1.75x net debt to pro forma EBITDA, increasing by almost a turn on the back of the MacDon acquisition in Q1/18. That said, given its FCF generation, the company expects its leverage ratio to fall back to below 1x within 18 months.

Exhibit 41. Linamar's Prioritizing FCF Towards Deleveraging

Net Debt To EBITDA

1.8x 1.54x 1.6x 1.4x 1.10x 1.2x 0.99x 1.0x 0.77x 0.84x 0.8x 0.67x 0.6x 0.35x 0.4x 0.24x 0.2x 0.0x 2013 2014 2015 2016 2017 2018E 2019E 2020E

Source: Company reports and CIBC World Markets Inc.

29 A Global Industrial Manufacturer - September 12, 2018

While Linamar views its shares as undervalued, the company noted that it will not look to repurchase shares until after its leverage ratio reaches its target range. That said, we have seen the company opportunistically buy back its own stock. Back in 2008/09, Linamar repurchased over 5 million shares. We would expect Linamar to look more closely at buying back shares exiting 2019 if its share price continues to hover around current levels.

30 A Global Industrial Manufacturer - September 12, 2018

Exhibit 42. Financial Summary ($ mlns except per share and where noted otherwise)

Financial Summary ($ mlns. Unless Noted) 2016 Q1/17 Q2/17 Q3/17 Q4/17 2017 Q1/18 Q2/18 Q3/18E Q4/18E 2018E 2019E 2020E INCOME STATEMENT Divisional Performance Transportation Div ision N.A. Production 18.4 4.5 4.5 4.0 4.1 17.1 4.5 4.4 4.1 4.1 17.0 16.9 16.8 N.A. CPV 153.1 155.8 160.7 162.5 157.6 163.7 170.0 165.4 170.0 170.0 169.8 179.0 185.0 Sales 2,815.3 722.3 735.3 664.5 675.2 2,797.3 761.6 748.7 688.5 688.5 2,887.3 3,025.1 3,108.0

Euro Production 21.5 5.8 5.8 5.0 5.8 22.4 5.9 6.2 4.9 5.8 22.8 23.0 22.6 Euro CPV 63.6 66.1 69.5 73.6 69.9 69.5 76.7 80.0 76.0 76.0 76.9 83.0 91.0 Sales 1,366.7 386.8 397.2 365.1 405.4 1,554.5 458.5 480.8 372.4 440.8 1,752.5 1,904.9 2,056.6 Asia Production 48.3 12.6 11.5 12.1 13.8 50.0 12.4 12.1 12.0 14.0 50.5 50.2 49.8 Asia CPV 8.3 9.1 10.7 9.4 9.5 9.7 9.8 9.1 9.5 9.5 9.4 12.0 15.0 Sales 401.5 114.5 123.1 114.0 131.2 482.8 118.2 110.7 114.0 133.0 475.9 602.4 747.0 Total Transportation Auto Sales 4,583.5 1,223.6 1,255.6 1,143.6 1,211.8 4,834.6 1,338.3 1,340.2 1,174.9 1,262.3 5,115.7 5,532.4 5,911.6 Non-auto Sales 555.6 145.5 149.6 145.8 154.5 595.4 158.1 166.6 153.1 162.3 640.0 672.0 705.6 Total Sales 5,139.1 1,369.1 1,405.2 1,289.4 1,366.3 5,430.0 1,496.4 1,506.8 1,328.0 1,424.6 5,755.7 6,204.4 6,617.2 Operating Earnings 551.5 146.4 161.5 108.2 129.4 545.5 140.2 141.9 106.2 114.0 502.3 589.4 628.6 Operating Margin 10.7% 10.7% 11.5% 8.4% 9.5% 10.0% 9.4% 9.4% 8.0% 8.0% 8.7% 9.5% 9.5%

Industrial Div ision Sales 866.5 286.9 361.1 260.3 208.2 1,116.5 397.5 650.6 485.4 355.7 1,889.2 2,108.1 2,213.5 Operating Earnings 145.2 45.8 54.1 33.7 28.8 162.4 74.7 134.7 68.0 46.2 323.6 367.3 386.9 Operating Margin 16.8% 16.0% 15.0% 12.9% 13.8% 14.5% 18.8% 20.7% 14.0% 13.0% 17.1% 17.4% 17.5%

Consolidated Results Consolidated Sales 6,005.6 1,656.0 1,766.2 1,549.7 1,574.5 6,546.5 1,893.9 2,157.4 1,813.4 1,780.2 7,645.0 8,312.5 8,830.7 COGS 4,669.4 1,289.7 1,372.3 1,238.8 1,246.6 5,147.4 1,487.4 1,678.9 1,446.2 1,429.3 6,041.8 6,507.9 6,913.1 Gross Profit 1,336.2 366.3 393.9 311.0 327.9 1,399.1 406.5 478.6 367.1 351.0 1,603.2 1,804.6 1,917.6 Gross Margin 22.2% 22.1% 22.3% 20.1% 20.8% 21.4% 21.5% 22.2% 20.2% 19.7% 21.0% 21.7% 21.7% SG&A 325.4 91.1 90.0 79.5 91.6 352.2 106.6 122.6 99.7 97.9 426.9 457.2 485.7 EBITDA 1,030.4 274.5 296.7 222.0 234.4 1,027.6 305.4 365.4 267.4 253.0 1,191.2 1,347.4 1,432.0 EBITDA Margin 17.2% 16.6% 16.8% 14.3% 14.9% 15.7% 16.1% 16.9% 14.7% 14.2% 15.6% 16.2% 16.2% Adj. EBITDA 1030.4 274.5 296.7 222.0 234.4 1027.6 305.4 369.7 267.4 253.0 1195.5 1347.4 1432.0 EBITDA Margin 22.1% 16.6% 16.8% 14.3% 14.9% 20.0% 16.1% 17.1% 14.7% 14.2% 19.8% 20.7% 20.7% D&A 333.6 82.4 81.1 80.1 76.2 319.8 90.4 93.0 93.2 92.8 369.5 390.6 416.4 Other Ex penses (Income) 19.6 0.7 7.2 9.5 1.9 19.3 (5.5) (9.4) 0.0 0.0 (14.9) 0.0 0.0 Operating Income 696.8 192.2 215.6 141.9 158.2 707.9 214.9 272.3 174.2 160.2 821.7 956.8 1,015.5 Operating Margin 11.6% 11.6% 12.2% 9.2% 10.1% 10.8% 11.3% 12.6% 9.6% 9.0% 10.7% 11.5% 11.5% Adj. Operating Income 696.8 192.2 215.6 141.9 158.2 707.9 214.9 276.6 174.2 160.2 826.0 956.8 1,015.5 Operating Margin 11.6% 11.6% 12.2% 9.2% 10.1% 10.8% 11.3% 12.8% 9.6% 9.0% 10.8% 11.5% 11.5% Share Of Net Loss (Earnings) Of Inv estments 3.0 1.2 1.4 1.5 1.9 6.1 2.7 2.8 2.7 2.7 11.0 10.8 10.8 Total Interest Ex pense 21.1 2.9 2.9 0.8 2.7 9.3 9.3 12.6 13.0 9.4 44.3 33.9 19.2 EBT 672.7 188.0 211.3 139.6 153.6 692.6 202.9 256.9 158.5 148.1 766.4 912.0 985.5 Total Tax 150.2 42.9 49.4 32.3 18.5 143.2 46.3 59.8 36.5 34.1 176.6 209.8 226.7 Tax Rate 22.3% 22.8% 23.4% 23.1% 12.1% 20.7% 22.8% 23.3% 23.0% 23.0% 23.0% 23.0% 23.0% Income Before Minority Interest 522.5 145.1 161.9 107.3 135.1 549.4 156.6 197.1 122.1 114.0 589.8 702.3 758.9 Non-Controlling Interest 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Net Earnings 522.1 145.1 161.9 107.3 135.1 549.4 156.6 197.1 122.1 114.0 589.8 702.3 758.9 Adjustments 0.0 0.0 0.0 0.0 (15.1) (15.1) 0.0 3.2 0.0 0.0 0.0 0.0 0.0 Adjusted Net Earnings 522.1 145.1 161.9 107.3 120.0 534.3 156.6 200.3 122.1 114.0 593.0 702.3 758.9 Adjusted Net Margins 8.7% 8.8% 9.2% 6.9% 7.6% 8.2% 8.3% 9.3% 6.7% 6.4% 7.8% 8.4% 8.6%

EPS (Basic) 8.01 2.22 2.48 1.64 2.07 8.41 2.40 3.02 1.87 1.75 9.04 10.76 11.63 EPS (Basic) - Adjusted 8.01 2.22 2.48 1.64 1.84 8.19 2.40 3.07 1.87 1.75 9.09 10.76 11.63 EPS (Diluted) 7.93 2.20 2.45 1.62 2.04 8.32 2.37 2.98 1.85 1.72 8.92 10.62 11.47 EPS (Diluted) - Adjusted 7.92 2.20 2.45 1.62 1.81 8.09 2.37 3.03 1.85 1.72 8.97 10.62 11.47

BALANCE SHEET Assets Cash & Cash Equiv alents 405.0 438.2 510.6 524.9 439.1 439.1 455.3 417.1 613.4 550.0 550.0 629.0 746.2 Total Current Assets 2,142.9 2,472.4 2,599.2 2,555.2 2,477.2 2,477.2 3,213.8 3,291.7 3,293.3 3,295.3 3,295.3 3,613.8 3,917.0 PP&E 2,052.1 2,100.3 2,144.9 2,153.7 2,209.9 2,209.9 2,441.5 2,462.2 2,528.5 2,595.0 2,595.0 2,821.0 2,999.5 Total Assets 5,227.2 5,639.4 5,870.3 5,865.1 5,851.2 5,851.2 7,939.7 8,048.9 8,108.3 8,166.5 8,166.5 8,674.4 9,121.1

Liabilities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Current Liabilities 1,266.3 1,447.6 1,491.4 1,307.2 1,296.0 1,296.0 1,680.3 1,715.4 1,733.5 1,783.2 1,783.2 1,926.2 2,045.2 Long-term Debt 1,228.0 1,292.4 1,314.5 1,440.8 1,288.8 1,288.8 2,591.9 2,551.1 2,465.6 2,366.1 2,366.1 2,089.0 1,683.5 Total Liabilities 2,636.9 2,881.5 2,952.5 2,896.8 2,738.4 2,738.4 4,545.5 4,538.7 4,471.2 4,421.5 4,421.5 4,287.4 4,000.9 Shareholders' Equity Equity 2,590.3 2,757.9 2,917.9 2,968.2 3,112.8 3,112.8 3,394.2 3,510.2 3,637.1 3,745.0 3,745.0 4,387.0 5,120.2

STATEMENT OF CASH FLOWS Cash Flow From Operations CFO Ex WC 900.1 233.3 248.0 185.7 218.9 885.9 261.0 304.8 218.1 209.6 993.5 1,104.0 1,186.4 Changes In Non-cash Working Capital (2.0) (123.4) 28.5 8.5 (13.6) (100.0) (225.1) (133.9) 238.1 (13.2) (134.1) (105.7) (69.9) Cash From Operating Activities 898.1 110.0 276.5 194.2 205.3 785.9 35.8 171.0 456.2 196.5 859.4 998.3 1,116.5 Cash Flow From Financing Activities Div idends (26.1) 0.0 (15.7) (7.8) (7.8) (31.3) 0.0 (15.7) (7.8) (7.8) (31.4) (31.3) (31.3) Cash From Financing Activities 789.9 57.1 (31.5) 3.1 (199.6) (171.0) 1,248.1 (67.5) (107.8) (107.8) 964.9 (331.3) (431.3) Cash Flow From Investing Activities Pay ments For Purchase of PP&E (343.3) (93.5) (100.8) (114.9) (100.9) (410.0) (117.6) (119.7) (150.0) (150.0) (537.3) (580.0) (560.0) Proceeds On Disposal of PP&E 7.9 2.2 4.6 2.8 3.7 13.2 2.1 3.0 2.0 2.0 9.1 8.0 8.0 Pay ments For Purchase Of Intangible Assets (10.6) (3.2) (4.4) (3.2) (6.5) (17.4) (3.9) (8.1) (4.0) (4.0) (20.0) (16.0) (16.0) Business Acquisitions, Net Of Cash Acquired (1,133.9) (1.1) 0.0 0.0 0.0 (1.1) (1,175.4) 0.0 0.0 0.0 (1,175.4) 0.0 0.0 Cash From Investing Activities (1,574.9) (147.0) (169.0) (169.2) (91.7) (577.0) (1,294.7) (124.9) (152.0) (152.0) (1,723.6) (588.0) (568.0)

Effect Of Translation Adjustment On Cash (47.2) 13.2 (3.5) (13.7) 0.2 (3.9) 27.1 (16.8) 0.0 0.0 10.3 0.0 0.0 Increase In Cash 65.9 33.2 72.4 14.4 (85.9) 34.1 16.2 (38.2) 196.3 (63.4) 110.9 79.0 117.2 Cash - Beginning Of Period 339.1 405.0 438.2 510.6 524.9 405.0 439.1 455.3 417.1 613.4 439.1 550.0 629.0 Cash - End Of Period 405.0 438.2 510.6 524.9 439.1 439.1 455.3 417.1 613.4 550.0 550.0 629.0 746.2

FCF (After NWC And Gross Capex ) 554.8 16.5 175.7 79.3 104.4 375.9 (81.8) 51.2 306.2 46.5 322.1 418.3 556.5 FCF (After NWC And Net Capex ) 562.7 18.7 180.3 82.1 108.1 389.1 (79.7) 54.2 308.2 48.5 331.2 426.3 564.5 Lev erage Ratio 1.0 1.0 1.0 0.9 0.8 0.8 2.0 1.9 1.6 1.5 1.5 1.1 0.7 Source: Company reports and CIBC World Markets Inc.

31 A Global Industrial Manufacturer - September 12, 2018

Price Target Calculation And Key Risks To Price Target Price Target Calculation We use a 5x EV/EBITDA multiple and 8x P/E multiple on our 2019 estimate to derive our $82.00 price target. We use pro forma adjusted net debt of ~$1.5 billion. Our target multiple is at premium to where Linamar has traded historically to reflect its earnings growth trajectory and more diverse revenue platform, with its Industrial segment historically trading at a premium to auto parts suppliers. Key Risks To Price Target North American Light Vehicle Production: A material decline in North American light vehicle production is the largest risk facing Linamar. We are currently assuming a flat to modestly declining trend in our outlook.

Trade Restrictions: Amendments to NAFTA that negatively impact the auto supply chain could have an adverse impact on Linamar.

Competition: Intensifying competitive pressures from low-cost suppliers outside of North America, in addition to electronics and technology firms entering the auto industry, are also a risk. Failure to compete successfully against new and existing entrants in a rapidly developing automotive technology market could impact Linamar’s competitive positioning.

Input costs: Commodity price volatility (steel, aluminum, resin) could negatively impact Linamar’s profitability. About two-thirds of steel is acquired through resale programs with OEMs, helping to mitigate Linamar’s exposure to steel price fluctuations.

32 A Global Industrial Manufacturer - September 12, 2018

Appendix 1. Company Profile Company Description Linamar is a diversified global manufacturing company of highly engineered products powering vehicles, motion, work and lives. The company is made up of two operating segments—the Transportation segment and the Industrial segment—which are further divided into five operating groups—Machining & Assembly, Light Metal Casting, Forging, Skyjack, and Agriculture. The company’s Machining and Assembly, Casting and Forging operating groups focus on precision metallic components, modules and systems for engine, transmission, driveline and body systems designed for global vehicle and industrial markets. The company’s Skyjack operating group focuses on mobile industrial equipment including aerial work platforms and telehandlers.

Exhibit 43. Overview

Statistics Top Four Customers (49.7% Of Revenue) Manufacturing Locations 59 Ford R&D Centres 6 GM Countries 17 Volkswagen Employees 25,900 Fiat Chrysler Source: Company reports and CIBC World Markets Inc.

The company has grouped facilities mainly in four key divisions: Machining & Assembly, Light Metal Casting, Forging and Skyjack. Each division has a Group President, Director of Finance, Director of Human Resources and a Vice President of Sales. Reportable Segments Linamar is made up of two operating segments: the Transportation segment and Industrial. Transportation accounts for ~80% of Linamar’s revenue and operating income.

Exhibit 44. Linamar's Revenue And Operating Income By Segment

Revenue By Reporting Segment Operating Income By Reporting Segment

$7,500 $800 17% 21% 21% 17% $6,000 26% 16% $600 $4,500 15% 25% 11% $400 17% $3,000 7% 83% 83% 10% 79% 79% 84% $200 74% $1,500 93% 89% 85% 75% 90% 83% $0 $0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

Transportation Industrials Transportation Industrials

Source: Company reports and CIBC World Markets Inc.

33 A Global Industrial Manufacturer - September 12, 2018

Transportation The Transportation (also known as Powertrain/Driveline) segment derives revenues primarily from the collaborative design, development and manufacture of precision metallic components, modules and systems for global vehicle and power generation markets. Within the segment, Linamar’s core capabilities include Machining & Assembly, Forging, Light Metal Casting, and Metal Forming.

Exhibit 45. Core Capabilities

Machining & Assembly Forging Light Metal Casting Metal Forming - CNC Expertise - Hatebur High Speed Hot - Gravity & Low Pressure - Laser Cutting - Complex Assemblies Horizontal Forging Aluminum Die Casting - Metal Forming - Advanced Automation & - Conventional Vertical - High Pressure Aluminum & - Stamping Robotics Forging Magnesium Die Casting - Painting - Hydroforming - Cold Forming - Robotic Welding - Heat Treatment - Ring Rolling - Assembly Source: Company reports and CIBC World Markets Inc.

The segment has 53 manufacturing locations, four R&D centres and sales representation in 13 countries in North America, Europe and Asia.

The principal customers of the segment are OEMs with operations in North America and their suppliers including Ford, GM, Chrysler, and Volkswagen. This segment operates globally and serves automotive OEM and commercial vehicle customers.

Exhibit 46. Transportation Segment

Statistics Principal Customers Manufacturing Locations 53 Ford R&D Centres 4 GM Countries 13 Chrysler Volkswagen Source: Company reports and CIBC World Markets Inc.

Industrial Segment Linamar’s Industrial segment comprises its Skyjack division, MacDon Group, an energy plant in Canada (Linergy Manufacturing), and a Hungarian fabrication facility (OROS). The majority of the revenue from the Industrial segment is derived from Skyjack and MacDon. The Industrial segment has four manufacturing locations, two R&D centres and sales representation in 15 countries in North and South America, Europe, Australia and Asia.

Skyjack Skyjack is a global manufacturer of access and material-handling equipment. Its product line consists of a full range of aerial work platforms including vertical mast lifts, DC electric scissors, rough terrain scissors, articulating booms, telescopic booms and telehandlers. The company is based in Guelph, Ontario, with operations in Canada, the U.S., Brazil, France, Germany, Sweden, Australia, Shanghai, and Korea.

34 A Global Industrial Manufacturer - September 12, 2018

Exhibit 47. Skyjack Product Portfolio

Vertical Mast Lifts DC Electric Scissors Rough Terrain Scissors Articulating Booms Telescopic Booms Telehandlers SJ12/16 SJIII 3215/19 SJ6826/32 RT SJ30 AJE/ARJE SJ40/45 T SJ643 TH SJ111 3220/26 SJ6832 RTE SJ46 AJ SJ61/66 T SJ843 TH SJIII 4626/32 SJ8831/41 RT SJ63 AJ SJ82/86 T SJ1044 TH SJIII 4740 SJ9250 RT SJ85 AJ SJ1056 TH SJ1256 THS ZB2044 Source: Company reports and CIBC World Markets Inc.

Competitive Positioning: Skyjack’s philosophy is that all its products are simply designed to ensure ease of service and maintenance, which in turn allows its customers to maximize their productivity and utilization.

Exhibit 48. Skyjack's Design Philosophy

Skyjack Design Philosophy Robust steel construction - strong, durable and easy to repair. Accessibility to all major components so that maintenance and service routines reduce turnaround times. Relay-based control systems that are easy to troubleshoot and repair using commonly available components. No complicated and expensive computers or can-bus systems that require a PC to diagnose. Standard color-coded and numbered wiring across the range reduces troubleshooting time. Common components across model groups - 80% of recommended service parts across the range are common. "Off-the-shelf" components as opposed to custom design. Replaceable modular platform railings. Source: Company reports and CIBC World Markets Inc.

Exhibit 49. Competitors

Company Geography Comment Oshkosh Global Owns brands JLG, Jerr-Dan and Skytrak and manufactures aerial work platforms, telehandlers, vertical mast lifts, stock pickers, scissors lifts, boom lifts, trailers and towing and recovery equipment. Terex Global Terex's brand Genie manufactures aerial lifts and material-handling equipment including: telescopic boom lifts, slab scissor lifts, rough terrain scissor lifts, vertical mast lifts and telehandlers. Haulotte Global Haulotte manufactures telescopic booms, scissor lifts, vertical masts, and telehandlers, along with other aerial lifts and material-handling equipment. Manitou Global Manitou manufactures telehandlers, aerial work platforms and warehousing equipment along with several attachments including fork carriages, buckets, clamps and sweepers. Source: Company reports and CIBC World Markets Inc.

MacDon Linamar announced the acquisition of MacDon On December 14, 2017, with the acquisition closing February 1, 2018. Linamar acquired MacDon for $1.2 billion. The acquisition formed part of Linamar’s plan to diversify into segments outside of its traditional automotive market and represented a key strategy to expand in the agricultural/food sector. Linamar plans to grow MacDon’s agricultural platform by expanding its product offerings and increasing penetration in both new and underserved global markets

MacDon is a Canadian manufacturer of specialty agricultural equipment; its product line includes: draper headers, self-propelled windrowers, aftermarket parts, pick-ups and hay products. The company estimates that it holds the number one market position in North America for its Combine FlexDraper Headers, Rigid Draper Headers, and its Self-Propelled Windrowers (mid- horsepower).

35 A Global Industrial Manufacturer - September 12, 2018

MacDon’s primary revenue channel is through its North American distribution network (~76.5% of revenue) followed by International export markets (~13.5%) and OEMs (~10%). The company’s network is 1,200 strong in North America and 200+ internationally. The company also has sales and parts distribution operations in Canada, the U.S., Brazil, Germany and Australia.

Exhibit 50. MacDon Profile

Founded 1949 Key Products Rigid & Flexible Draper Headers & Self-Propelled Windrowers Headquarters Winnipeg, Manitoba Facilities ~1 million square feet total 11 owned and 6 leased, all manufacturing in Winnipeg Geographic Footprint Sells to over 40 countries Historical Financials Over the past 5 years, MacDon has experienced: Offices in Canada, U.S., Brazil, Russia, Sales of $550MM-$650MM Germany & Australia EBITDA margin range 20%-25% Dealer & Distribution Network ~1,200 in North America D&A as a % of sales in 1%-2% range 200+ Internationally Capex as $ of sales of <3% Employee & Leadership Team 1,400 employees and management team LTM Sales of ~$600MM with 100+ years of cumulative experience Source: Company reports and CIBC World Markets Inc.

Exhibit 51. MacDon Products

Product Description Attached to a self-propelled windrower or combine. Draper Headers Used to cut and process crops through combine feeder house or left in field for further curing. Predominantly used for harvesting soybeans, wheat, canola, rice, oats, dry edible beans and flax seed. Self-propelled harvesting machinery used with a header to cut and lay crop in the field. Self-Propelled Windrowers Popular in hay and forage, cereal grains, canola, and regions where growing seasons are short and crops are harvested while damp. Primarily maintenance and replacement parts for the company's large installed base. Aftermarket Parts Bolstered by acquisition of Westward Parts in 2012. Attached to front of a combine. Used to pick up crop that has been "windrowed". Pick-Ups MacDon pick-ups renowned for functionality and durability. PW8 fits many brands with face plate (increases resale value). Hay Products Includes: auger headers and rotary disc headers for self-propelled windrowers, and two types of pull-type mower conditioners. Source: Company reports and CIBC World Markets Inc.

36 A Global Industrial Manufacturer - September 12, 2018

Appendix 2. Management & Director Bios

Exhibit 52. Management & Director Bios

Management Bios Name Title Description Linda Hasenfratz Chief Executive Officer Ms. Hasenfratz joined Linamar in 1990 and was appointed CEO in 2002. Ms. Hasenfratz has a bachelor's degree and MBA from the University of Western Ontario. Jim Jarrell President & Chief Operating Officer Mr. Jarrell joined Linamar in 1991 as Director of Marketing, was appointed Chief Operating Officer in 1999, assumed responsibility for the Linamar Sales Department in 2003, and was then appointed President in 2004. Prior to working at Linamar, Mr. Jarrell worked as a Sales Manager at Magna. Mark Stoddart Chief Technology Officer & Mr. Stoddart joined Linamar in 1985 and has been a member of the Board of Directors since 1999. Mr. Stoddart graduated from Executive Vice President of Sales & Sheridan College in 1985 from the Business Computer Systems program. Marketing Roger Fulton Executive Vice President - Human Mr. Fulton joined Linamar in 2003 and prior to that worked for one of Canada's largest steel producers as General Manager of Resources, General Counsel & Human Resources and Legal Affairs. Mr. Fulton has a BA from McMaster University and an LLB from the University of Western Corporate Secretary Ontario and was admitted to the Ontario Bar in 1989. Dale Schneider Chief Financial Officer Mr. Schneider joined Linamar in 1993 and was appointed to his current position in 2010. Mr. Schneider obtained his Bachelor of Mathematics at the University of Waterloo specializing in Management Accounting and became a CMA in 1995.

Board Of Directors Bios Name Title Description Frank Hasenfratz Chairman of the Board As the founder of Linamar, Mr. Hasenfratz has held this position since 1966. Prior to founding Linamar, Mr. Hasenfratz attended trade and engineering technical schools and worked as a toolmaker and machinist as well as a supervisor at Sinterings Ltd. Linda Hasenfratz Chief Executive Officer Ms. Hasenfratz joined Linamar in 1990 and was appointed CEO in 2002. Ms. Hasenfratz has a bachelor's degree and MBA from the University of Western Ontario. Mark Stoddart Chief Technology Officer & Mr. Stoddart joined Linamar in 1985 and has been a member of the Board of Directors since 1999. Mr. Stoddart graduated from Executive Vice President of Sales & Sheridan College in 1985 from the Business Computer Systems program. Marketing Terry Reidel Member of Audit Committee Mr. Reidel retired from Kuntz Electroplating Inc. in 2008 where he was the Chief Operating Officer. Prior to working at Kuntz, Mr. Riedel was with Ernst & Young for 39 years. Mr. Reidel earned his CA designation from Queen's University. William Harrison Member of Audit Committee Mr. Harrison spent 21 years as President and CEO of Kenhar Corporation as well as EVP and Director of Cascades Corporation, and Chairman and CEO of Lift Technologies. Currently, Mr. Harrison involves himself in business activities through his investment company, Rahnek Ltd. Mr. Harrison attended the University of Guelph and the University of Toronto, receiving degrees in Honors Science and Mechanical Engineering, and attended York University's Faculty of Business post graduate studies. Dennis Grim Member of Audit Committee Mr. Grimm was a partner at KPMG in the firm's audit group for 23 years and practiced as an audit partner at PwC for 15 years and the Managing Partner of PwC Waterloo Region. Mr. Grimm is a CA/CPA/FCA with a Bachelor of Arts degree in History and Political Science from Waterloo University and an MBA from McMaster University. Source: Company reports and CIBC World Markets Inc.

37 A Global Industrial Manufacturer - September 12, 2018

Our EPS estimates are shown below:

1 Qtr. 2 Qtr. 3 Qtr. 4 Qtr. Yearly 2017 Current $2.20A $2.45A $1.62A $1.81A $8.09A 2018 Prior $2.32A $2.87A $1.80E $1.76E $8.75E 2018 Current $2.37A $3.03A $1.85E $1.72E $8.97E 2019 Prior $3.01E $3.67E $2.05E $1.97E $10.70E 2019 Current ------$10.62E 2020 Current ------$11.47E

Our EBITDA ($mln) estimates are shown below:

1 Qtr. 2 Qtr. 3 Qtr. 4 Qtr. Yearly 2017 Current $274.5A $296.7A $222.0A $234.4A $1027.6A 2018 Prior $306.2A $370.4A $267.5E $262.4E $1206.5E 2018 Current $305.4A $369.7A $267.4E $253.0E $1195.5E 2019 Prior $361.3E $418.9E $276.9E $269.7E $1326.7E 2019 Current ------$1347.4E 2020 Current ------$1432.0E

38 A Global Industrial Manufacturer - September 12, 2018

IMPORTANT DISCLOSURES:

Analyst Certification: Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst's personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Potential Conflicts of Interest: Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

Important Disclosure Footnotes for Linamar Corporation (LNR)

 CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Linamar Corporation in the next 3 months.  An executive committee member or director of Canadian Imperial Bank of Commerce (“CIBC”), the parent company to CIBC World Markets Inc. and CIBC World Markets Corp., or a member of his/her household is an officer, director or advisory board member of this company or one of its subsidiaries.

Important Disclosure Footnotes for Companies Mentioned in this Report that Are Covered by CIBC World Markets Corp./Inc.:

Stock Prices as of 09/12/2018: Magna International Inc. (2a, 2c, 2g, 3a, 3c, 7) (MGA-NYSE, US$51.98) Martinrea International Inc. (2g) (MRE-TSX, $13.55)

Any companies mentioned in the report but not listed are not covered by fundamental research at CIBC.

Important disclosure footnotes that correspond to the footnotes in this table may be found in the "Key to Important Disclosure Footnotes" section of this report.

39 A Global Industrial Manufacturer - September 12, 2018

Key to Important Disclosure Footnotes: 1a CIBC WM Corp. makes a market in the securities of this company. 1b CIBC WM Inc. makes a market in the securities of this company. 1c CIBC WM Plc. makes a market in the securities of this company. 2a This company is a client for which a CIBC World Markets company has performed investment banking services in the past 12 months. 2b CIBC World Markets Corp. has managed or co-managed a public offering of securities for this company in the past 12 months. 2c CIBC World Markets Inc. has managed or co-managed a public offering of securities for this company in the past 12 months. 2d CIBC World Markets Corp. has received compensation for investment banking services from this company in the past 12 months. 2e CIBC World Markets Inc. has received compensation for investment banking services from this company in the past 12 months. 2f CIBC World Markets Corp. expects to receive or intends to seek compensation for investment banking services from this company in the next 3 months. 2g CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from this company in the next 3 months. 3a This company is a client for which a CIBC World Markets company has performed non-investment banking, securities-related services in the past 12 months. 3b CIBC World Markets Corp. has received compensation for non-investment banking, securities-related services from this company in the past 12 months. 3c CIBC World Markets Inc. has received compensation for non-investment banking, securities-related services from this company in the past 12 months. 4a This company is a client for which a CIBC World Markets company has performed non-investment banking, non- securities-related services in the past 12 months. 4b CIBC World Markets Corp. has received compensation for non-investment banking, non-securities-related services from this company in the past 12 months. 4c CIBC World Markets Inc. has received compensation for non-investment banking, non-securities-related services from this company in the past 12 months. 5a The CIBC World Markets Corp. analyst(s) who covers this company also has a long position in its common equity securities. 5b A member of the household of a CIBC World Markets Corp. research analyst who covers this company has a long position in the common equity securities of this company. 6a The CIBC World Markets Inc. fundamental analyst(s) who covers this company also has a long position in its common equity securities. 6b A member of the household of a CIBC World Markets Inc. fundamental research analyst who covers this company has a long position in the common equity securities of this company. 7 CIBC World Markets Corp., CIBC World Markets Inc., and their affiliates, in the aggregate, beneficially own 1% or more of a class of equity securities issued by this company. 8 An executive of CIBC World Markets Inc. or any analyst involved in the preparation of this research report has provided services to this company for remuneration in the past 12 months. 9 An executive committee member or director of Canadian Imperial Bank of Commerce (“CIBC”), the parent company to CIBC World Markets Inc. and CIBC World Markets Corp., or a member of his/her household is an officer, director or advisory board member of this company or one of its subsidiaries. 10 Canadian Imperial Bank of Commerce ("CIBC"), the parent company to CIBC World Markets Inc. and CIBC World Markets Corp., has a significant credit relationship with this company. 11 The equity securities of this company are restricted voting shares. 12 The equity securities of this company are subordinate voting shares. 13 The equity securities of this company are non-voting shares. 14 The equity securities of this company are limited voting shares.

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CIBC World Markets Corp./Inc. Stock Rating System

Abbreviation Rating Description Stock Ratings OP Outperformer Stock is expected to outperform similar stocks in the coverage universe during the next 12-18 months. NT Neutral Stock is expected to perform in line with similar stocks in the coverage universe during the next 12-18 months. UN Underperformer Stock is expected to underperform similar stocks in the coverage universe during the next 12-18 months. NR Not Rated CIBC World Markets does not maintain an investment recommendation on the stock. R Restricted CIBC World Markets is restricted (due to potential conflict of interest) from rating the stock. Stock Ratings Prior To December 09, 2016 SO Sector Outperformer Stock is expected to outperform the sector during the next 12-18 months. SP Sector Performer Stock is expected to perform in line with the sector during the next 12-18 months. SU Sector Underperformer Stock is expected to underperform the sector during the next 12-18 months. NR Not Rated CIBC World Markets does not maintain an investment recommendation on the stock. R Restricted CIBC World Markets is restricted (due to potential conflict of interest) from rating the stock. Sector Ratings (note: Broader market averages refer to S&P 500 in the U.S. and S&P/TSX Composite in Canada.) O Overweight Sector is expected to outperform the broader market averages. M Marketweight Sector is expected to equal the performance of the broader market averages. U Underweight Sector is expected to underperform the broader market averages. NA None Sector rating is not applicable. "Speculative" indicates that an investment in this security involves a high amount of risk due to volatility and/or liquidity issues.

Ratings Distribution*: CIBC World Markets Corp./Inc. Coverage Universe (as of 12 Sep 2018) Count Percent Inv. Banking Relationships Count Percent Outperformer (Buy) 163 50.2% Outperformer (Buy) 162 99.4% Neutral (Hold/Neutral) 145 44.6% Neutral (Hold/Neutral) 143 98.6% Underperformer (Sell) 7 2.2% Underperformer (Sell) 7 100.0% Restricted 9 2.8% Restricted 9 100.0% Ratings Distribution: Consumer Discretionary Coverage Universe (as of 12 Sep 2018) Count Percent Inv. Banking Relationships Count Percent Outperformer (Buy) 14 43.8% Outperformer (Buy) 14 100.0% Neutral (Hold/Neutral) 16 50.0% Neutral (Hold/Neutral) 15 93.8% Underperformer (Sell) 0 0.0% Underperformer (Sell) 0 0.0% Restricted 2 6.3% Restricted 2 100.0%

*Although the investment recommendations within the three-tiered,relative stock rating system utilized by CIBC World Markets Corp./Inc.do not correlate to buy, hold and sell recommendations, for the purposes of complying with FINRA rules, CIBC World Markets Corp./Inc. has assigned buy ratings to securities rated Outperformer, hold ratings to securities rated Neutral, and sell ratings to securities rated Underperformer. The distributions above reflect the combined historical ratings of CIBC World Markets Corp. and CIBC World Markets Inc.

Important disclosures required by applicable rules can be obtained by visiting CIBC World Markets on the web at http://researchcentral.cibcwm.com/. Important disclosures for each issuer can be found using the "Coverage" tab on the top left of the Research Central home page. Access to the system for rating investment opportunities and our dissemination policy can be found at the bottom of each page on the Research Central website. These important disclosures can also be obtained by writing to CIBC World Markets Corp., 425 Lexington Avenue, New York, NY 10017 (212- 856-4000) or CIBC World Markets Inc.,161 Bay Street, 4th Floor, Toronto, ON M5H 2S8, Attention: Research Disclosures Request.

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CIBC World Markets Corp./Inc. Price Chart

HISTORICAL PERFORMANCE OF CIBC WORLD MARKETS CORP./INC. RECOMMENDATIONS FOR LINAMAR CORPORATION (LNR)

Date Change Type Closing Price Rating Price Target Coverage 02/02/2016 54.28 SO 73.00 Todd Coupland, CFA 05/04/2016 51.02 SO 71.00 Todd Coupland, CFA 08/10/2016 51.84 SO 75.00 Todd Coupland, CFA 11/02/2016 52.97 OP 72.00 Todd Coupland, CFA 12/19/2016 58.65 NT 65.00 Todd Coupland, CFA 05/11/2017 63.83 NT 69.00 Todd Coupland, CFA 09/27/2017 74.99 NT 81.00 Todd Coupland, CFA 03/07/2018 68.01 NT 85.00 Todd Coupland, CFA 05/15/2018 75.00 NT 83.00 Todd Coupland, CFA 08/07/2018 57.82 NT 70.00 Todd Coupland, CFA The chart above reflects the combined historical recommendations of CIBC World Markets Corp. and CIBC World Markets Inc.

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Legal Disclaimer

This report is issued and approved for distribution by (a) in Canada, CIBC World Markets Inc., a member of the Investment Industry Regulatory Organization of Canada (“IIROC”), the Toronto Stock Exchange, the TSX Venture Exchange and a Member of the Canadian Investor Protection Fund, (b) in the United Kingdom, CIBC World Markets plc, is Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, (c) in Australia to wholesale clients only, CIBC Australia Ltd, a company regulated by the ASIC with AFSL license number 240603 and ACN 000 067 256, and (d) in Japan, CIBC World Markets (Japan) Inc., a registered Type 1 Financial product provider with the registration number Director General of Kanto Finance Bureau #218 (collectively, “CIBC World Markets”) and (e) in the United States either by (i) CIBC World Markets Inc. for distribution only to U.S. Major Institutional Investors (“MII”) (as such term is defined in SEC Rule 15a-6) or (ii) CIBC World Markets Corp., a member of the Financial Industry Regulatory Authority (“FINRA”). U.S. MIIs receiving this report from CIBC World Markets Inc. (the Canadian broker-dealer) are required to effect transactions (other than negotiating their terms) in securities discussed in the report through CIBC World Markets Corp. (the U.S. broker-dealer). CIBC World Markets Corp. accepts responsibility for the content of this research report. This report is provided, for informational purposes only, to institutional investor and retail clients of CIBC World Markets in Canada, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. This document and any of the products and information contained herein are not intended for the use of Retail investors in the United Kingdom. Such investors will not be able to enter into agreements or purchase products mentioned herein from CIBC World Markets plc. The comments and views expressed in this document are meant for the general interests of wholesale clients of CIBC Australia Ltd. This report has been prepared by the CIBC group and is issued in Hong Kong by Canadian Imperial Bank of Commerce, Hong Kong Branch, a registered institution under the Securities and Futures Ordinance, Cap 571 (the “SFO”). This report is intended for “professional investors” only (within the meaning of the SFO) and has been prepared for general circulation and does not take into account the objectives, financial situation or needs of any recipient. Any recipient in Hong Kong who has any questions or requires further information on any matter arising from or relating to this report should contact Canadian Imperial Bank of Commerce, Hong Kong Branch at Suite 3602, Cheung Kong Centre, 2 Queen's Road Central, Hong Kong (telephone number: +852 2841 6111). Orders for Hong Kong listed securities will be executed by Canadian Imperial Bank of Commerce, Hong Kong Branch. Canadian Imperial Bank of Commerce, Hong Kong Branch has entered into an arrangement with its broker-dealer affiliates worldwide to execute orders for securities listed outside of Hong Kong for Hong Kong clients. This report is intended for distribution in Singapore solely to “institutional investors” (within the meanings of the Financial Advisers Act (Chapter 110 of Singapore)). The securities mentioned in this report may not be suitable for all types of investors. This report does not take into account the investment objectives, financial situation or specific needs of any particular client of CIBC World Markets. Recipients should consider this report as only a single factor in making an investment decision and should not rely solely on investment recommendations contained herein, if any, as a substitution for the exercise of independent judgment of the merits and risks of investments. The analyst writing the report is not a person or company with actual, implied or apparent authority to act on behalf of any issuer mentioned in the report. Before making an investment decision with respect to any security recommended in this report, the recipient should consider whether such recommendation is appropriate given the recipient's particular investment needs, objectives and financial circumstances. CIBC World Markets suggests that, prior to acting on any of the recommendations herein, Canadian retail clients of CIBC World Markets contact one of our client advisers in your jurisdiction to discuss your particular circumstances. Non-client recipients of this report who are not institutional investor clients of CIBC World Markets should consult with an independent financial advisor prior to making any investment decision based on this report or for any necessary explanation of its contents. CIBC World Markets will not treat non-client recipients as its clients solely by virtue of their receiving this report. Past performance is not a guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance of any security mentioned in this report. The price of the securities mentioned in this report and the income they produce may fluctuate and/or be adversely affected by exchange rates, and investors may realize losses on investments in such securities, including the loss of investment principal. CIBC World Markets accepts no liability for any loss arising from the use of information contained in this report, except to the extent that liability may arise under specific statutes or regulations applicable to CIBC World Markets. Information, opinions and statistical data contained in this report were obtained or derived from sources believed to be reliable, but CIBC World Markets does not represent that any such information, opinion or statistical data is accurate or complete (with the exception of information contained in the Important Disclosures section of this report provided by CIBC World Markets or individual research analysts), and they should not be relied upon as such. All estimates, opinions and recommendations expressed herein constitute judgments as of the date of this report and are subject to change without notice. Nothing in this report constitutes legal, accounting or tax advice. Since the levels and bases of taxation can change,

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Legal Disclaimer (Continued) any reference in this report to the impact of taxation should not be construed as offering tax advice on the tax consequences of investments. As with any investment having potential tax implications, clients should consult with their own independent tax adviser. This report may provide addresses of, or contain hyperlinks to, Internet web sites. CIBC World Markets has not reviewed the linked Internet web site of any third party and takes no responsibility for the contents thereof. Each such address or hyperlink is provided solely for the recipient's convenience and information, and the content of linked third party web sites is not in any way incorporated into this document. Recipients who choose to access such third-party web sites or follow such hyperlinks do so at their own risk. Although each company issuing this report is a wholly owned subsidiary of Canadian Imperial Bank of Commerce (“CIBC”), each is solely responsible for its contractual obligations and commitments, and any securities products offered or recommended to or purchased or sold in any client accounts (i) will not be insured by the Federal Deposit Insurance Corporation (“FDIC”), the Canada Deposit Insurance Corporation or other similar deposit insurance, (ii) will not be deposits or other obligations of CIBC, (iii) will not be endorsed or guaranteed by CIBC, and (iv) will be subject to investment risks, including possible loss of the principal invested. The CIBC trademark is used under license. © 2018 CIBC World Markets Inc. and CIBC World Markets Corp. All rights reserved. Unauthorized use, distribution, duplication or disclosure without the prior written permission of CIBC World Markets is prohibited by law and may result in prosecution.

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