Advisory Council Meeting June 29, 2018 Jim Tobin CHIEF MARKETING OFFICER A True Global Player Western 84 Europe Canada 51 46 11 Eastern 36 Europe 1 58 12 USA 67 20 Asia Mexico 31 1 South America 13 2 ~172,000* People | 28 Countries | 340* | 93 Manufacturing / Engineering / As of March 31, 2018 Assembly Sales * Includes certain equity-accounted operations Market Leading Positions* PRODUCT AREA & RANKINGS Powertrain Body & Chassis #1 4WD/AWD, DCT TRANSMISSIONS #1 GLOBAL Vision-based ADAS Exteriors #1 GLOBAL #1 NORTH AMERICA | #2 EUROPE Mirrors Seating #1 GLOBAL #4 GLOBAL Mechatronics Vehicle Manufacturing #1 GLOBAL IN LATCHES #1 GLOBAL * Our estimated positions in 2017 as an independent (i.e. non OEM-affiliated) supplier New Launches Ramping Up NORTH AMERICA Chevy Silverado Ford Expedition Acura RDX GMC Sierra Lincoln Navigator Chevy Bolt AV Jeep Wrangler BMW X5 Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles New Launches Ramping Up EUROPE Audi A6 Mercedes-Benz G-Class Jaguar E-Pace Kia Rio Bentley Continental GT/GTC Mercedes-Benz X-Class Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles 5 New Launches Ramping Up ASIA BMW X3 Jeep D-SUV Audi Q5 NIO ES8 Volkswagen A-SUV Lynk & Co 01 Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles 6 Industry Production Projected vehicle production Potential impact factors to volumes 2024* beyond 2025 Autonomy 109 Car Sharing Million Mega City Legislation * Source: IHS transformation in the last 60 years transformation in the last 5 to 10 years More than Technological Developments New Mobility Business Models 1700 Source: Forbes, 2017 Disruption not Manufacturing limited to: Product Robotics Connectivity Manufacturing Ecosystem INTELLIGENT COLLABORATING LOCALIZATION GENERATIVE BUILDINGS HMI INTELLIGENT ROBOTICS FABRICATION GUIDED (3D PRINTING) VEHICLES Smart Factory BIG DATA EXOSKELETON PAINT BIG DATA OPERATIONAL ASSEMBLY BIG DATA DIGITAL C-PARTS EXCELLENCE & ANALYTICS PROCESS Replicating Human Senses for Production Assembly Tasks Today’s Production Future Production See Vision Feel Dexterity & Sensing Shape, Orientation, Force Grasping & Manipulation Plan & Control Robot Operating System Machine Learning Deep Learning Store & Remember Artificial Intelligence Improve & Learn Manufacturing and Advanced Robotics Our missionWorkforce Intelligence Network To create a comprehensive and cohesive workforce development system in Southeast Michigan that provides employers WIN’s mission is to cultivatewith the talenta comprehensive they need for success. and cohesive talent system to ensure employers find the workers they need for success. Data Employer Engagement Policy Michigan Alliance for Greater Mobility Advancement Provide rapid skill growth in emerging technologies for advanced mobility to meet industry needs. GM Ford Wayne State UD Mercy FCA MI - TIA Michigan Tech Nissan CAR Macomb CC Robert Bosch SAE SEMCA BorgWarner Umich WIN GKN Driveline MAHLE Working Together • Through a proven partnership approach, MAGMA provides a neutral platform for industry to collectively assess their talent skill gaps across all vehicle systems, technologies, and processes. • Those needs are then addressed through MAGMA-approved education & training programs, which have been vetted by an industry-led review process. MI Works! Agencies and Magna •SEMCA •Macomb/St. Clair •Oakland County •GST Flint •Holland/ Grand Rapids/Alto •Highland Park •Newaygo •Boyne City Top Courses • Introduction to Systems Engineering • Functional Safety • Embedded Systems & Networking: PIC Microcontrollers & Data Communication Networks Labor Force, Employment, Unemployment Rate (16-county WIN Partnership, current as of Q1 2018) WIN Region Labor Market Information • Q4 2017 to Q1 2018 saw a decrease in the labor force of 19,500 • Q1 2018 unemployment rate 4.7% • 92,600 engineering and design workers in Q1 2018, up 0.4 % with over 14,000 postings • 79,200 IT workers in Q1 2018, up 0.4 % with over 23,000 postings Engineers & Designers Top 10 Jobs Posted IT Top 10 Jobs Posted Audience Feedback Session • Use your phone or tablet to respond, but please keep them on silent! • Connect to the guest wireless network with the information on the small handout and as shown here: • Network name: MagnaUSA • Log-in: magnaguest • Password: #MagnaInt01! Audience Feedback Session • No need to use text messaging! • No need to download anything, just visit the following URL: pollev.com/davidpalmer Boris Shulkin Vice President R&D Future Trends Technology People & Planet Artificial Intelligence Urbanization Virtual / Augmented Reality Health Care Advances Internet of Things / Connectivity Aging Population Driverless Cars (ADAS) Global Warming Advanced Robotics Solar Advanced Materials EV / Hybrid Additive Manufacturing Wealth Distribution Drones • People/Countries Future Trends Impacting Automotive Technology People & Planet Artificial Intelligence Urbanization Virtual / Augmented Reality Health Care Advances Internet of Things / Connectivity Aging Population Driverless Cars (ADAS) Global Warming Advanced Robotics Solar Advanced Materials EV / Hybrid Additive Manufacturing Wealth Distribution Drones • People/Countries Today’s Buzz is All About AI Smart Vehicles, Autonomy Mobility as Big Data Cities, Factories Electrification a Service Biometrics Emerging Growth Areas Electrification Autonomy New Mobility & Lightweighting Electrification What is a BEV? Global Powertrain Penetration 2025 2030 4-5% 9-17% 8-11% 16-21% 30-37% 11-12% 11-21% 28-36% 18-23% 37-45% ICE Micro hybrid Mild hybrid PHEV / HEV EV Powertrain Electrification • Flexible platform building blocks • ICE to mild hybrids to full BEVs • “Green” while improving driving dynamics eDrive 1.0 @ Rear Axle Hybrid Manager Thermal Software Management and Controls Electrified Systems • Enables further vehicle electrification features HMI Non Contact ClearView™ • Deep systems knowledge Obstacle Mirror Detection leads to innovation • Leveraging cross group synergy Power Liftgate Comfort+™ SmartLatch™ Power Side Door Side Door Latch Systems Lightweighting Leveraging Body Structures Knowledge Using Multiple Materials HOODS DOORS GATES • Steel • Aluminum • Carbon Fiber • Steel • Aluminum • Plastic • Steel • Aluminum • Composite Autonomy Global ADAS Penetration by 2030 7% 3% Estimated market 24% 23% size in 2030 is $80-95 22% Billion 21% Level 0 Level 1 Level 2 Level 3 Level 4 Level 5 Magna’s ADAS Features Front Facing* Vision-only Automatic Adaptive Emergency 41 9 Pedestrian Cruise Control Braking AEB Simple RADAR Advanced Fusion Drowsy Driver Lane Data Assist 8 7 Pre-Collison Following Control Distance Indication High-Beam Assist Traffic Sign 9 Recognition Lane Traffic Light Departure Detection Warning Rear Facing / Surround View* Forward Collison Intelligent Light Warning Ranging – Matrix Beam Adaptive Suspension 11 6 EDR – Event Data Lane Keep Recorder + Assist Image Capture Camera-RADAR Fusion 1 * # of models Autonomous Platform CUSTOMIZABLE, SCALABLE, MODULAR iCON RADAR • Cultivated and developed partner • Next generation HD RADAR Front • Higher resolution at longer ranges NearField Camera HD • Improved object classification Camera HD RADAR and identification LiDAR/ Night HD Vision RADAR LiDAR • Solid-state LiDAR • Provides HD, 3D, real-time images Ultrasonic Sensor regardless of light and weather • Enables object detection, classification, and tracking at long distances Co-Develop & Industry-First Multi-year Manufacture Collaboration of Self-Driving Systems New Mobility We Have the Required Capabilities • Cameras ADAS and • LiDAR • RADAR Electronics • Domain Controller • Ultrasonic Sensors • Micro Vehicle • Sedan • Van Architecture • CUV • ICE • Mild Hybrid Powertrain • PHEV / HEV • EV • Seat reconfiguration Seating Design, Engineering, Complete Vehicle Assembly Panel Q&A • Boris Shulkin, Vice President of Research and Development, Magna • David Palmer, Director for Strategies and Partnerships, WIN Questions?Thank You! WEBSITE: www.miautomobility.com WEBSITE: WINintelligence.org DavidDavid Palmer, Palmer, SeniorDirector ofDirector Business Partnershipsfor Strategies email: David.Palmer@winand Partnerships-semich.org Thank You! email: [email protected].