Magna International Inc. · TSX:MG
Magna International — Merger or Acquisition (July 2021)
23 slides from Magna International's merger presentation, Jul 23, 2021
Slide 1: Magna Acquisition of Veoneer Positioning Magna's ADAS Business as a Leader
Magna Acquisition of Veoneer Positioning Magna’s ADAS Business as a Leader July 23, 2021
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation constitute "forward - looking information" or "forward - looking statements" (collectively, "forward - looking statements") . Any such forward - looking statements are intended to provide information about management's current expect
Slide 3: Forward Looking Statements (cont.)
Forward Looking Statements (cont.) Forward - looking statements are based on information currently available to us and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as
Slide 4: A Compelling Transaction For Magna
A Compelling Transaction For Magna • Positions us as a global leader in fast - growing ADAS market ̶ Combining complementary businesses strengthens and broadens product portfolio, customer base and geographic presence ̶ Adds significant engineering and software expertise, including sensor perception
Slide 5: Transaction Aligned With Magna's Portfolio Strategy
Transaction Aligned With Magna’s Portfolio Strategy Accelerate Deployment of Capital Towards High Growth Areas Impact of Megatrends Positive Impact • eDrives • Battery Enclosures • ADAS • Contract Vehicle Manufacturing • New Business Models Aligned • Lighting • Active Aerodynamics • Body & Chassis •
Slide 6: Transaction Benefits Key Stakeholders
Transaction Benefits Key Stakeholders • Magna’s strong financial position provides added confidence to customers in executing growth plans and investing for the future • Combined leadership position in ADAS, together with Magna's overall scale offers exciting opportunities for Veoneer’s employees an
Slide 7: Veoneer Profile
Veoneer Profile Headquarters: Stockholm, Sweden 2018 Founded in a Spin - Off from Autoliv 7,500 employees > 3,800 engineers Engineering sites in 11 countries across 3 continents 25 technical centers and 5 manufacturing sites $1.3bn 2020 Net Sales 1 Business Overview • Restraint Control Systems • Cam
Slide 8: Complementary ADAS Capabilities
Complementary ADAS Capabilities
Slide 9: Complementary ADAS Capabilities: Magna
Complementary ADAS Capabilities REAR VIEW CAMERA ULTRASONIC SENSORS x12 FRONT CAMERA VISION SYSTEM FRONT RADAR REAR CORNER RADAR IN - CABIN MONITORING SYSTEM DOMAIN CONTROLLER FRONT CORNER RADAR LIDAR SURROUND CAMERA CLEARVIEW Œ DRIVER MONITORING SYSTEM Ɣ Magna
Slide 10: Complementary ADAS Capabilities: Veoneer
Complementary ADAS Capabilities DRIVER MONITORING SYSTEM FRONT RADAR REAR CORNER RADAR DOMAIN CONTROLLER NIGHT VISION FRONT CORNER RADAR LIDAR FRONT CAMERA VISION SYSTEM IN - CABIN MONITORING SYSTEM PERCEPTION & DRIVE POLICY SOFTWARE Ɣ Veoneer
Slide 11: Complementary ADAS Capabilities: Combined Portfolio
Complementary ADAS Capabilities REAR VIEW CAMERA ULTRASONIC SENSORS x12 FRONT RADAR REAR CORNER RADAR DOMAIN CONTROLLER NIGHT VISION FRONT CORNER RADAR LIDAR FRONT CAMERA VISION SYSTEM IN - CABIN MONITORING SYSTEM PERCEPTION & DRIVE POLICY SOFTWARE SURROUND CAMERA CLEARVIEW ΠDRIVER MONITORING SYSTE
Slide 12: Added Electronics Engineering Expertise
Added Electronics Engineering Expertise Veoneer adds >3,800 engineers including >1,700 software engineers
Slide 13: Sales Diversification of Combined Business
Sales Diversification of Combined Business 2020 Pro Forma Combined By Customer North America Based By Production Region Europe Based Asia Based North America Europe Asia
Slide 14: Enhanced Complete ADAS Systems Capabilities
Enhanced Complete ADAS Systems Capabilities • Accelerates content per vehicle opportunities • Allows us to explore additional possibilities • Strengthens Magna's position in the industry
Slide 15: Rapidly Growing ADAS Market
Rapidly Growing ADAS Market… $13 billion ADAS market expected to grow at 14% CAGR to $46 billion by 2030 $0 $10 $20 $30 $40 $50 2020E 2025E 2030E 13 27 46 16% CAGR 12% CAGR ADAS Market Size Camera Radar LiDAR ADAS/AD Controller Ultrasonic DMS Software ($Billions) Source: BCG 2020 ADAS Study
Slide 16: Combined ADAS Business Expected to Grow ~2x Faster than Market
…Combined ADAS Business Expected to Grow ~2x Faster than Market to 2023 Pro Forma Combined ADAS Sales ($Billions) 2020 2023 Magna Standalone ADAS CAGR ‘20 - ‘23 19% - 23% 1.2 2.5 - 2.7 1 ~30% CAGR 1. Based on outlook disclosures made by Magna and Veoneer earlier in 2021
Slide 17: Transaction Summary
Transaction Summary $31.25 per share TOTAL CONSIDERATION IN CASH 43% premium to 30 - day VWAP Expected near the end of 2021, subject to: • Veoneer stockholder approval • Certain regulatory approvals • Other customary closing conditions CLOSING Holders representing ~40% of Veoneer's outstanding share
Slide 18: Key Financial Attributes
Key Financial Attributes Transaction Funding cash on hand + some additional debt ~$100 million Annual run - rate cost synergies by 2024 Enhances Magna’s sales growth profile 50+ bps improvement per year to 2023 at close and within target range by 2022 year - end 1.0x to 1.5x Adj. leverage expected t
Slide 19: Expected Synergies
Expected Synergies Anticipate annual run - rate synergies of ~$100 million by 2024 Key Areas • SG&A • Procurement • Development activities • Manufacturing • Tax (cash savings) Integration team highly focused on realizing synergies
Slide 20: Next Steps
Next Steps Integration Team Coordination Employee Engagement Special Meeting of Veoneer Stockholders Regulatory Filings
Slide 21: A Compelling Transaction for Magna
A Compelling Transaction for Magna • Positions us as a global leader in fast - growing ADAS market – Combining complementary businesses strengthens product portfolio, customer base and geographic presence – Adds significant engineering and software expertise, including sensor perception and drive po
Slide 22: Appendix
A\MAGNA APPENDIX
Slide 23: Complementary ADAS Capabilities
Complementary ADAS Capabilities CAPABILITY TECHNOLOGY EXPERIENCE SCALE COMBINED Front Camera A leading position Surround View Other Camera Front Radar A leading position Corner Radar Domain Controller Poised for a leading position as market develop
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