MARTINREA INTERNATIONAL INC. ANNUAL INFORMATION FORM For the fiscal year ended December 31, 2019 March 5, 2020 TABLE OF CONTENTS 1. CORPORATE STRUCTURE ............................................................................................................................... 3 Name and Incorporation ........................................................................................................................................ 3 Intercorporate Relationships ................................................................................................................................. 3 2. ABOUT MARTINREA ........................................................................................................................................ 3 3. GENERAL DEVELOPMENT OF THE BUSINESS ........................................................................................... 4 History (2001 to 2014) Martinrea 1.0 – Building a Footprint ............................................................................... 4 Recent Developments in the Company’s Business (2015 to 2019) Martinrea 2.0 – One Martinrea and Driving the Culture ............................................................................................................................................................. 5 Significant Acquisitions and Significant Dispositions .......................................................................................... 8 4. DESCRIPTION OF THE BUSINESS AND TRENDS ........................................................................................ 8 Overview ............................................................................................................................................................... 8 Automotive Industry - General ............................................................................................................................. 9 The Company’s Vision, Mission, Culture and Business Strategy ....................................................................... 15 Elements of Business Strategy ............................................................................................................................ 17 Products ............................................................................................................................................................... 20 Operations ........................................................................................................................................................... 21 Commitment to Quality ....................................................................................................................................... 22 Capabilities .......................................................................................................................................................... 22 Sales, Marketing and Customers ......................................................................................................................... 25 Suppliers and Sourcing ....................................................................................................................................... 26 Competition ......................................................................................................................................................... 26 Human Resources................................................................................................................................................ 27 Facilities .............................................................................................................................................................. 27 Information Technology and Cybersecurity ........................................................................................................ 27 Sustainable Business ........................................................................................................................................... 27 Acquisitions ........................................................................................................................................................ 35 5. DIVIDENDS ....................................................................................................................................................... 35 Dividend Policy ................................................................................................................................................... 35 6. CAPITAL STRUCTURE .................................................................................................................................... 35 7. MARKET FOR SECURITIES ............................................................................................................................ 36 8. ESCROWED SECURITIES ............................................................................................................................... 36 9. DIRECTORS AND OFFICERS ......................................................................................................................... 37 Name, Occupation and Security Holding ............................................................................................................ 37 Cease Trade Orders ............................................................................................................................................. 39 10. RISK FACTORS ................................................................................................................................................. 40 North American and Global Economic and Political Conditions and Epidemics or Pandemics ......................... 40 Automotive Industry Risks ................................................................................................................................. 40 Dependence Upon Key Customers ..................................................................................................................... 41 Financial Viability of Suppliers .......................................................................................................................... 41 Competition ......................................................................................................................................................... 42 Cost Absorption and Purchase Orders ................................................................................................................. 42 Material Prices .................................................................................................................................................... 42 Outsourcing and Insourcing Trends .................................................................................................................... 42 Product Warranty, Recall and Liability Risk ...................................................................................................... 43 Product Development and Technological Change .............................................................................................. 43 Dependence Upon Key Personnel ....................................................................................................................... 43 Limited Financial Resources/Uncertainty of Future Financing/Banking ............................................................ 43 Acquisitions ........................................................................................................................................................ 43 Private or Public Equity Investments in Technology Companies ....................................................................... 44 Joint Ventures ..................................................................................................................................................... 44 Potential Rationalization Costs and Turnaround Costs ....................................................................................... 44 Launch and Operational Costs ............................................................................................................................ 45 Labour Relations Matters .................................................................................................................................... 45 Trade Restrictions ............................................................................................................................................... 45 Changes in Laws and Governmental Regulations ............................................................................................... 45 i Litigation and Regulatory Compliance and Investigations ................................................................................. 46 Quote/Pricing Assumptions................................................................................................................................. 46 Currency Risk - Hedging .................................................................................................................................... 46 Currency Risk - Competitiveness in Certain Jurisdictions .................................................................................. 46 Fluctuations in Operating Results ....................................................................................................................... 46 Internal Controls Over Financial Reporting and Disclosure Controls and Procedures ....................................... 47 Environmental Regulation and Climate