May 2, 2006 Don Walker Co-Chief Executive Officer Magna International Meeting of Shareholders
Overview Product capabilities Operating structure/manufacturing footprint Operational priorities
Product Capabilities
224 Operating Divisions 60 Engineering and Product Dev. Ctrs. 82,800 People The Americas 128 Divisions 27 Engineering Ctrs. Europe 86 Divisions 26 Engineering Ctrs. Asia 10 Divisions 7 Engineering Ctrs.
Innovation Product Development World Class Manufacturing Three Pillars
R&D Products Processes Patents Product Portfolio Product Strategy Innovation Development Process Three Pillars Product Development Process Design for 6 Sigma Commonality Craftsmanship / Functionality World Class Manufacturing Magna Operating System - optimize mfg. process - control plan Lean manufacturing Best in class Flawless Launches Minimize liability / Warranty Maximize Profitability
Innovation Product Development World Class Manufacturing Three Pillars Top and Bottom Line Growth Best People
Position Relative to Competitors
2005 Priorities Integrate public companies Reorganize global group structure Streamline overheads Finalize restructuring plan Develop electronics strategy Magna-wide purchasing initiative
2006 Priorities Fine tune Product Portfolio Roadmap Future product strategy Customer strategy Geographic strategy
2006 Priorities Fine tune Product Portfolio Roadmap Future product strategy Customer strategy Geographic strategy Capital allocation Planned manufacturing footprint Management development M&A activity
2006 Priorities Fine tune Product Portfolio Roadmap Future product strategy Customer strategy Geographic strategy Accelerate innovation commercialization Continue purchasing initiative