Chicago Federal Reserve Bank Program Magna Overview May 30, 2013 A True Global Player Locations in All Key Markets Western Europe 88 33,750 37 Canada 46 18,900 10 Eastern Europe 36 11,325 2 58 USA 16 19,900 41 Asia 19 10,275 Mexico 29 20,950 1 South America 15 5,675 2 2 Africa 100 Manufacturing/Assembly Engineering/Product Development/Sales Number of Employees ~ 121,000 People | 29 Countries | 315 87 | $30.8 Billion (2012 Sales) (As of Q1 2013) Disclosure or duplication without consent is prohibited 2 Magna in Mexico • Established: – 1991, Puebla, Mexico – First Customer: VW – First Products: Stampings & Assemblies – Original Employees: 400 • Today: – Total Mfg Facilities: 29 – Total Eng/P&D/Sales Facilities: 1 – Employees: 20,950 – Located in: 8 States Disclosure or duplication without consent is prohibited 3 Facilities in Mexico Today division locations na, mexico mfg/assy – 29 eng/prod dev/sales – 1 City Cuautitlan Izcalli, Ramos Arizpe (4), Cosma International 10 Toluca (E), Puebla, Hermosillo, San Luis Potosi (2) Magna Exteriors and Interiors Acuna Interiors Saltillo, Saltillo+, 3 Toluca (2) Sabinas Celaya, Cuautitlan Exteriors Izcalli, Saltillo (2), 7 Toluca+, Toluca, Hermosillo Saltillo Magna Seating Acuna, Sabinas (2), Ramos Arizpe 4 Saltillo Hermosillo Magna Mirrors 1 Monterrey Matamoros Monterrey Magna Closures Matamoros, 2 Saltillo+ Magna Powertrain San Luis Potosi Cuautitlan Izcalli Powertrain Ramos Arizpe (2), 3 Monterrey Celaya Electronics 1 Monterrey Toluca Magna Steyr 1 Toluca+ Manufacturing/Engineering/Product Development/Sales Puebla (E) Engineering/Product Development/Sales Only In Progress +Shared Location Disclosure or duplication without consent is prohibited 4 Facilities in Mexico Today SONORA 2 Facilities COAHUILA City: Hermosillo 13 Facilities Cities: Ramos Arizpe, Acuna, Saltillo, Sabinas NUEVO LEON 3 Facilities City: Monterrey TAMAULIPAS 1 Facilities City: Matamoros SAN LUIS POTOSI 2 Facilities City: San Luis Potosi GUANAJUATO 1 Facility Cities: Celaya PUEBLA ESTADO DE MÉXICO 1 Facility 7 Facilities City: Puebla Cities: Cuautitlan Izcalli, Toluca Disclosure or duplication without consent is prohibited 5 OEM Facilities in Mexico 13 10 Cuernavaca 4 11 Puebla San Jose Chiapa 12 SOP – 2016 13 Tijuana 5 14 Celaya 1 SOP – 2014 1 Saltillo Salamanca (shared with Toyota) 15 2 Toluca SOP – 2014 3 Cuautitian 9 6 4 Hermosillo 7 8 5 Ramos Arizpe #2 3 15 6 San Luis Potosi 14 12 2 11 7 Silao 10 8 El Salto 9 Aquascalientes #1 & #2 Disclosure or duplication without consent is prohibited 6 Mexico Product Portfolio Disclosure or duplication without consent is prohibited 7 Magna Investments • Investment of approx. $200 million • New facilities in: – Coahuila – Morelos • Expansion projects in: – Coahuila – Guanajuato Disclosure or duplication without consent is prohibited 8 Importance of Mexico • Export to USA/Brasil & others • Domestic market growth – Toyota/Mazda – Honda – Nissan – Audi • Hardworking people – Willing to learn – Want to prove capabilities and skill set – Competitive low cost labor rate • Proximity to existing North American facilities, staffing, etc. Disclosure or duplication without consent is prohibited 9 Global Training Centers Russia Canada Europe USA China Mexico India Existing Brazil Future Disclosure or duplication without consent is prohibited 10 Mexico Training Centers Puebla, Mexico Hermosillo, Mexico Apprenticeship Programs • Tool & Die • Industrial Electrician • Millwright • Mechatronics Trade Disclosure or duplication without consent is prohibited 11 Supply Chain Management • Mexico Supply Base: – ~200 local suppliers used – Strict pre-qualifications • Common Management Practices Supplier Quality & Electronic Database Development (SQD) Risk Management Ensures use of qualified Program Financial & Quality suppliers only Plants manage supplier (operational) quality activities Disclosure or duplication without consent is prohibited 12 The future is ours to make. 13 .