1. Presenters:Remaining Group Members: Arora, Milen Qureshy, Sherry Vardar, Ezgi Wilson, David Lee, Sauleng Sadeddin, Khaled Sorbara, Domenico

2.  Company History  Key Strategic Issues  Resourced Based Company SWOT Analysis  Company Performance  Alternatives  Decision Criteria  Recommended Course of Action  Implementation and Contingency Plan

3. 1957: Frank Stronach opened a one-man tool and die shop called Multimatic 1960: Received its first auto parts contract with General Motors to produce metal-stamped sun visor brackets 1962: Magna Electronics Corporation Limited became a public company on the Toronto Stock Exchange under the symbol MG 1969: Multimatic merged with Magna Electronics Corporation Limited, a publicly traded aerospace, defence and industrial components manufacturer 1970: Automotive operations expanded to include a greater number of stamped and electro-mechanical components 1973: Magna Electronics Corporation Limited changed its name to Magna International Inc. 1976: Magna implemented a major product diversification strategy and divisions were organized into main product groups 196019701980 19571960196219731976 19691970

4. 1979: Magna enters the automotive plastics business 1981: Magna sells its aerospace and defence operations 1984: Magna formally adopts a Corporate Constitution, entrenching its previous long-standing commitment guaranteeing the rights of employees, shareholders and management to share in the profits they help produce 1987: Magna organizes its manufacturing divisions into Automotive Systems Operating Groups to become full-service suppliers for many key systems of the automobile 1989: Magna co-designs and co-develops the integrated child safety seat, recognized by the Smithsonian Institute as one of the great innovations of the 1980s 1990: Ford Motor Company awards Magna the first major program to supply “bolt-in” door modules incorporating all interior door hardware 1992: Magna obtains a listing on the New York Stock Exchange 198019902000 198419891992 19791981 1987 1990

5. 1996: Magna undergoes a major European expansion, acquiring a number of European-based automotive systems suppliers 1998: Magna acquires Steyr-Daimler-Puch, one of the world’s leading automotive technology and engineering companies with complete vehicle assembly capabilities 1999: Magna is named the world’s top auto parts company in Forbes Magazine 2000: Magna spun off MEC, one of its business operations, as a separate public company 2001: Magna announces the formation of the Magna Steyr group 2005: Magna improves strategic positioning by privatizing three public subsidiaries (allows it to better exploit competencies) 198019902000 200519961999 199820002001

10.  2004  Takes minority stake in I&T GmbH (electrical)  Completed the acquisition of the worldwide operations of DaimlerChrysler Corporation's wholly-owned subsidiary, New Venture Gear, Inc (automotive transmissions and a all-wheel drive transfer cases)  Acquires facility in Mexico from Wagon PLC (engineered metal)  2005  Acquires Tesma International Inc (powertrain)  Decoma (exterior), Inteir (interior), TS Fahrzeug- Dachsysteme GmbH (roofing systems)

11.  2006  Acquires Porsche Engineering Services NA from Porsche AG (automotive engineering services)  2007  Minority stake 20% ($1.54 billion USD) stake given to Russian industrial conglomerates – Russian Machines  2008  Acquires Technoplast – Russian auto parts manufacturer (plastic interior/exterior)  Creditors force Russian stakeholder to give up 20% stake in Magna

12.  Since the 1990s, Magna has made 24 acquisitions while taking stakes in 9 companies YearAcquisitionsStakes 200900 200810 200700 200630 200530 200431

13. MARGIN ANALYSIS Gross Margin 10.30% Net Profit Margin -1.63% Operating Margin -0.91% PROFITABILITY Return on Assets -2.45% Return on Equity -4.26% Return on Investment -3.86%

14.  Year on year, Magna’s revenues fell 9.07% from $26.07 billion USD to $23.70 billion USD  This along with an increase in the cost of goods sold expense has contributed to a reduction in net income from $663.00 million USD to $71.00 million USD – a 89.29% decrease

15. Cash Flow per Share 5.02 Price/Cash Flow per Share 9.83 Book Value per Share 72.67 Tangible Book Value per Share 60.91

16.  In 2008, cash reserves at Magna fell by $197.00 million USD  However, the company earned $1.05 billion USD from its operations for a cash flow margin of 4.45%  In addition, the company generated $89.00 million USD in cash from financing while $1.06 billion USD was spent on investing

17. CREDIT RATIOS Current Ratio 1.50 Quick Ratio 1.11 LONG-TERM SOLVENCY Total Debt/Total Equity 0.0582 Total Debt/Total Capital 0.055

18.  Magna has a debt to total capital ratio of 0.05%, little changed from the previous year's 0.00%