6-K - MGA - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 underthe Securities Exchange Act of 1934

For the month of August 2021

Commission File Number 001-11444

MAGNA INTERNATIONAL INC.
(Exact Name of Registrant as specified in its Charter)
337 Magna Drive, Aurora, Ontario, Canada L4G 7K1
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.<br><br> Form 20-F [ ] Form 40-F [X]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _______
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _______
Note: Regulation S-T Rule 101(b)(7) only permits<br> the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer<br> must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally<br> organized (the registrant’s “home country”), or under the rules of the home country exchange on which the<br> registrant’s securities are traded, as long as the report or other document is not a press release, is not<br> required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event,<br> has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 6, 2021	MAGNA INTERNATIONAL INC.<br><br> <br>(Registrant)
	By:	/s/ “Bassem Shakeel”
		Bassem A. Shakeel<br><br> <br>Vice-President and Corporate Secretary

EXHIBITS

Exhibit 99.1	Q2 2021 Financial Review
Exhibit 99.2	Q2 2021 Earnings Presentation slides (August 6, 2021)
Exhibit 99.3	Q2 2021 Earnings Call Transcript (August 6, 2021)

Exhibit 99.1

FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.
(United States dollars in millions, except per share figures)<br> (Unaudited)
Prepared in accordance with U.S. GAAP
				2019					2020					2021
			Note	1st Q	2nd Q	3rd Q	4th Q	TOTAL	1st Q	2nd Q	3rd Q	4th Q	TOTAL	1st Q	2nd Q	TOTAL
VEHICLE VOLUME<br> STATISTICS (in millions)
North American vehicle volumes (including<br> Mexico)				4.227	4.249	3.909	3.912	16.297	3.777	1.240	3.946	4.040	13.003	3.761	3.288	7.049
European vehicle volumes:
	Western Europe			3.720	3.614	2.999	3.285	13.618	2.906	1.171	2.614	3.408	10.099	3.051	2.615	5.666
	Eastern Europe			2.013	2.063	1.672	1.987	7.735	1.794	0.913	1.663	1.990	6.360	1.880	1.764	3.644
		Total Europe		5.733	5.677	4.671	5.272	21.353	4.700	2.084	4.277	5.398	16.459	4.931	4.379	9.310
Asia volumes				11.872	11.149	10.946	13.061	47.028	8.148	8.503	10.930	13.743	41.324	11.364	10.646	22.010
China volumes				6.024	5.484	5.629	7.419	24.556	3.235	5.844	6.280	8.154	23.513	6.071	6.001	12.072
Magna Steyr vehicle assembly volumes				0.046	0.043	0.035	0.034	0.158	0.031	0.017	0.027	0.035	0.110	0.040	0.030	0.070
AVERAGE FOREIGN<br> EXCHANGE RATES
1 Canadian dollar equals U.S. dollars				0.752	0.748	0.757	0.758	0.754	0.745	0.722	0.751	0.767	0.746	0.790	0.814	0.802
1 Euro equals U.S. dollars				1.135	1.124	1.112	1.107	1.119	1.102	1.101	1.170	1.192	1.141	1.205	1.206	1.206
1 Chinese renminbi equals U.S. dollars				0.148	0.147	0.142	0.142	0.145	0.143	0.141	0.145	0.151	0.145	0.154	0.155	0.155
CONSOLIDATED<br> STATEMENTS OF INCOME (LOSS)
Sales				10,591	10,126	9,319	9,395	39,431	8,657	4,293	9,129	10,568	32,647	10,179	9,034	19,213
Costs and expenses:
	Cost of goods sold			9,164	8,710	8,063	8,085	34,022	7,567	4,206	7,681	8,753	28,207	8,662	7,728	16,390
	Selling, general and administrative			421	453	400	423	1,697	381	378	380	448	1,587	430	419	849
	Equity income			(35)	(48)	(37)	(58)	(178)	(30)	(25)	(44)	(90)	(189)	(47)	(44)	(91)
	EBITDA		1	1,041	1,011	893	945	3,890	739	(266)	1,112	1,457	3,042	1,134	931	2,065
	Depreciation and amortization			321	334	335	355	1,345	336	334	334	362	1,366	364	374	738
	EBIT		2	720	677	558	590	2,545	403	(600)	778	1,095	1,676	770	557	1,327
	Interest expense, net			31	14	18	19	82	17	21	26	22	86	23	11	34
Operating income (loss)			1	689	663	540	571	2,463	386	(621)	752	1,073	1,590	747	546	1,293
Other expense (income),<br> net			1	(679)	68	859	(8)	240	-	168	316	100	584	(58)	6	(52)
Income (loss) from operations<br> before income taxes				1,368	595	(319)	579	2,223	386	(789)	436	973	1,006	805	540	1,345
Income tax expense (benefit)				267	145	45	134	591	134	(137)	109	223	329	183	104	287
Net income (loss)				1,101	450	(364)	445	1,632	252	(652)	327	750	677	622	436	1,058
(Income) loss attributable to non-controlling<br> interests			1	5	2	131	(5)	133	9	5	78	(12)	80	(7)	(12)	(19)
Net income (loss) attributable to Magna International<br> Inc.				1,106	452	(233)	440	1,765	261	(647)	405	738	757	615	424	1,039
Adjusted net income (loss)<br> attributable to Magna International Inc.			1	531	509	438	433	1,911	261	(511)	585	851	1,186	566	426	992
Diluted earnings (loss) per share:
	Diluted			$ 3.39	$ 1.42	$ (0.75)	$ 1.43	$ 5.59	$ 0.86	$ (2.17)	$ 1.35	$ 2.45	$ 2.52	$ 2.03	$ 1.40	$ 3.42
	Adjusted Diluted			$ 1.63	$ 1.59	$ 1.41	$ 1.41	$ 6.05	$ 0.86	$ (1.71)	$ 1.95	$ 2.83	$ 3.95	$ 1.86	$ 1.40	$ 3.27
Weighted average number of Common Shares outstanding
	during the year (in millions):			326.3	319.5	310.7	306.3	315.8	302.7	298.4	299.4	300.9	300.4	303.6	303.6	303.6
PROFITABILITY<br> RATIOS
	Selling, general and administrative /Sales			4.0%	4.5%	4.3%	4.5%	4.3%	4.4%	8.8%	4.2%	4.2%	4.9%	4.2%	4.6%	4.4%
	EBITDA /Sales			9.8%	10.0%	9.6%	10.1%	9.9%	8.5%	-6.2%	12.2%	13.8%	9.3%	11.1%	10.3%	10.7%
	EBIT /Sales			6.8%	6.7%	6.0%	6.3%	6.5%	4.7%	-14.0%	8.5%	10.4%	5.1%	7.6%	6.2%	6.9%
	Operating income(loss) /Sales			6.5%	6.5%	5.8%	6.1%	6.2%	4.5%	-14.5%	8.2%	10.2%	4.9%	7.3%	6.0%	6.7%
	Effective tax rate
		Reported		19.5%	24.4%	-14.1%	23.1%	26.6%	34.7%	17.4%	25.0%	22.9%	32.7%	22.7%	19.3%	21.3%
		Excluding Other expense<br> (income), net of taxes		23.7%	23.5%	19.6%	23.3%	22.7%	34.7%	16.9%	22.6%	19.6%	25.7%	23.3%	19.8%	21.8%

| Q2 2021 Financial Review of Magna International Inc. | Page 1 of 6 |

| --- | --- | | FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC. | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | CONSOLIDATED BALANCE SHEETS | | | | | | | | | | | | | | (United States dollars in millions) (Unaudited) | | | | | | | | | | | | | | | | | 2019 | | | | 2020 | | | | 2021 | | | | | | 1st Q | 2nd Q | 3rd Q | 4th Q | 1st Q | 2nd Q | 3rd Q | 4th Q | 1st Q | 2nd Q | | FUNDS EMPLOYED | | | [Note 1] | | | | | | | | | | | Current assets: | | | | | | | | | | | | | | | Accounts receivable | | 7,446 | 7,204 | 7,068 | 5,927 | 5,684 | 5,253 | 6,618 | 6,394 | 7,176 | 6,531 | | | Inventories | | 3,501 | 3,521 | 3,457 | 3,304 | 3,531 | 3,503 | 3,509 | 3,444 | 3,645 | 3,999 | | | Prepaid expenses and other | | 222 | 244 | 189 | 238 | 234 | 216 | 196 | 260 | 290 | 294 | | | | | 11,169 | 10,969 | 10,714 | 9,469 | 9,449 | 8,972 | 10,323 | 10,098 | 11,111 | 10,824 | | Current liabilities: | | | | | | | | | | | | | | | Accounts payable | | 6,484 | 6,272 | 5,966 | 5,628 | 5,635 | 4,243 | 5,808 | 6,266 | 6,787 | 6,248 | | | Accrued salaries and wages | | 860 | 757 | 797 | 753 | 807 | 691 | 851 | 815 | 897 | 912 | | | Other accrued liabilities | | 2,003 | 2,019 | 1,994 | 1,800 | 1,921 | 2,058 | 2,246 | 2,254 | 2,298 | 2,186 | | | Income taxes payable (receivable) | | (53) | (34) | (22) | 17 | 18 | (87) | (69) | 38 | 109 | 123 | | | | | 9,294 | 9,014 | 8,735 | 8,198 | 8,381 | 6,905 | 8,836 | 9,373 | 10,091 | 9,469 | | Working capital | | | 1,875 | 1,955 | 1,979 | 1,271 | 1,068 | 2,067 | 1,487 | 725 | 1,020 | 1,355 | | Investments | | | 2,408 | 2,334 | 1,430 | 1,210 | 1,336 | 1,336 | 1,143 | 947 | 960 | 1,124 | | Fixed assets, net | | | 7,958 | 8,109 | 7,943 | 8,260 | 7,948 | 7,860 | 7,898 | 8,475 | 8,305 | 8,297 | | Goodwill, other assets and intangible assets | | | 3,487 | 3,593 | 3,461 | 3,456 | 3,340 | 3,362 | 3,423 | 3,539 | 3,614 | 3,632 | | Operating lease right-of-use assets | | | 1,716 | 1,744 | 1,702 | 1,811 | 1,788 | 1,777 | 1,787 | 1,906 | 1,869 | 1,854 | | Funds employed | | | 17,444 | 17,735 | 16,515 | 16,008 | 15,480 | 16,402 | 15,738 | 15,592 | 15,768 | 16,262 | | FINANCING | | | | | | | | | | | | | | Straight debt: | | | | | | | | | | | | | | | Cash and cash equivalents | | (925) | (563) | (769) | (1,276) | (1,146) | (533) | (1,498) | (3,268) | (3,464) | (3,426) | | | Short-term borrowings | | 335 | 199 | 436 | - | - | 188 | - | - | - | - | | | Long-term debt due within one year | | 122 | 112 | 104 | 106 | 93 | 150 | 98 | 129 | 137 | 117 | | | Long-term debt | | 3,062 | 3,071 | 3,021 | 3,062 | 3,021 | 3,771 | 3,832 | 3,973 | 3,935 | 3,941 | | | Current portion of operating lease liabilities | | 176 | 214 | 218 | 225 | 218 | 221 | 226 | 241 | 244 | 278 | | | Operating lease liabilities | | 1,566 | 1,544 | 1,527 | 1,601 | 1,586 | 1,577 | 1,582 | 1,656 | 1,613 | 1,563 | | | | | 4,336 | 4,577 | 4,537 | 3,718 | 3,772 | 5,374 | 4,240 | 2,731 | 2,465 | 2,473 | | Long-term employee benefit liabilities | | | 598 | 606 | 584 | 677 | 659 | 675 | 696 | 729 | 733 | 743 | | Other long-term liabilities | | | 396 | 404 | 388 | 371 | 420 | 390 | 305 | 332 | 414 | 482 | | Deferred tax liabilities, net | | | 167 | 196 | 133 | 111 | 87 | 10 | 87 | 80 | 104 | 124 | | | | | 1,161 | 1,206 | 1,105 | 1,159 | 1,166 | 1,075 | 1,088 | 1,141 | 1,251 | 1,349 | | Shareholders' equity | | | 11,947 | 11,952 | 10,873 | 11,131 | 10,542 | 9,953 | 10,410 | 11,720 | 12,052 | 12,440 | | | | | 17,444 | 17,735 | 16,515 | 16,008 | 15,480 | 16,402 | 15,738 | 15,592 | 15,768 | 16,262 | | ASSET UTILIZATION RATIOS | | | | | | | | | | | | | | | Days in accounts receivable | | 63.3 | 64.0 | 68.3 | 56.8 | 59.1 | 110.1 | 65.2 | 54.5 | 63.4 | 65.1 | | | Days in accounts payable | | 63.7 | 64.8 | 66.6 | 62.6 | 67.0 | 90.8 | 68.1 | 64.4 | 70.5 | 72.8 | | | Inventory turnover - cost of sales | | 10.5 | 9.9 | 9.3 | 9.8 | 8.6 | 4.8 | 8.8 | 10.2 | 9.5 | 7.7 | | | Working capital turnover | | 22.6 | 20.7 | 18.8 | 29.6 | 32.4 | 8.3 | 24.6 | 58.3 | 39.9 | 26.7 | | | Total asset turnover | | 2.4 | 2.3 | 2.3 | 2.3 | 2.2 | 1.0 | 2.3 | 2.7 | 2.6 | 2.2 | | CAPITAL STRUCTURE | | | | | | | | | | | | | | | Straight debt | | 24.9% | 25.8% | 27.5% | 23.2% | 24.4% | 32.8% | 26.9% | 17.5% | 15.6% | 15.2% | | | Long-term employee benefit liabilities, other long-term | | | | | | | | | | | | | | | liabilities & deferred tax liabilities, net | 6.6% | 6.8% | 6.7% | 7.2% | 7.5% | 6.6% | 6.9% | 7.3% | 7.9% | 8.3% | | | Shareholders' equity | | 68.5% | 67.4% | 65.8% | 69.5% | 68.1% | 60.7% | 66.1% | 75.2% | 76.4% | 76.5% | | | | | 100.0% | 100.0% | 100.0% | 100.0% | 100.1% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | | | Debt to total capitalization | | 30.6% | 30.1% | 32.8% | 31.0% | 31.8% | 37.2% | 35.5% | 33.9% | 33.0% | 32.2% | | ANNUALIZED RETURNS | | | | | | | | | | | | | | | Return on assets (EBIT/assets employed) | | 16.5% | 15.3% | 13.5% | 14.7% | 10.4% | -14.6% | 19.8% | 28.1% | 19.5% | 13.7% | | | Return on equity (Net income attributable to Magna | | | | | | | | | | | | | | | International Inc. / Average shareholders' equity) | 38.3% | 15.1% | -8.2% | 16.0% | 9.6% | -25.3% | 15.9% | 26.7% | 20.7% | 13.8% | | | Adjusted Return on equity (Adjusted Net income attributable | | | | | | | | | | | | | | | to Magna International Inc. / Average shareholders' equity) | 18.4% | 17.0% | 15.4% | 15.7% | 9.6% | -19.9% | 23.0% | 30.8% | 19.0% | 13.9% |

| Q2 2021 Financial Review of Magna International Inc. | Page 2 of 6 |

| --- | --- | | FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC. | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | CONSOLIDATED STATEMENTS OF CASH FLOWS | | | | | | | | | | | | | | | | | | (United States dollars in millions) (Unaudited) | | | | | | | | | | | | | | | | | | | | | | 2019 | | | | | 2020 | | | | | 2021 | | | | Cash provided from (used for): | | | Note | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | TOTAL | | Operating activities | | | | | | | | | | | | | | | | | | | Net income (loss) | | | 1,101 | 450 | (364) | 445 | 1,632 | 252 | (652) | 327 | 750 | 677 | 622 | 436 | 1,058 | | | Items not involving current cash flows | | (i) | (235) | 431 | 1,188 | 486 | 1,870 | 344 | 335 | 749 | 548 | 1,976 | 349 | 341 | 690 | | | | | (i) | 866 | 881 | 824 | 931 | 3,502 | 596 | (317) | 1,076 | 1,298 | 2,653 | 971 | 777 | 1,748 | | | Changes in operating assets and liabilities | | (i) | (272) | 39 | (74) | 765 | 458 | 43 | (915) | 536 | 961 | 625 | (310) | (249) | (559) | | Cash provided from (used for) operating activities | | | | 594 | 920 | 750 | 1,696 | 3,960 | 639 | (1,232) | 1,612 | 2,259 | 3,278 | 661 | 528 | 1,189 | | Investment activities | | | | | | | | | | | | | | | | | | | Fixed asset additions | | | (251) | (328) | (349) | (513) | (1,441) | (203) | (169) | (213) | (560) | (1,145) | (212) | (277) | (489) | | | Increase in investments, other assets and intangible assets | | | (77) | (102) | (83) | (122) | (384) | (93) | (72) | (68) | (98) | (331) | (104) | (93) | (197) | | | Increase in public and private equity investments | | | (5) | (5) | - | - | (10) | (100) | (2) | (12) | (18) | (132) | (3) | (17) | (20) | | | Proceeds from disposition | | | 86 | 26 | 57 | 16 | 185 | 23 | 11 | 14 | 69 | 117 | 19 | 20 | 39 | | | Settlement of long-term receivable from non-consolidated joint venture | | | - | - | - | - | - | - | - | - | - | - | 50 | - | 50 | | | Proceeds from sale of (Investment in) Lyft, Inc. | | | - | - | 10 | 221 | 231 | - | - | - | - | - | - | - | - | | | Business combinations | | | - | (152) | - | 5 | (147) | (7) | - | - | 98 | 91 | 39 | (21) | 18 | | | Sale of Fluid Pressure & Controls Business ["FP&C"] | | | 1,129 | - | 3 | - | 1,132 | - | - | - | - | - | - | - | - | | Cash (used for) provided from investment activities | | | | 882 | (561) | (362) | (393) | (434) | (380) | (232) | (279) | (509) | (1,400) | (211) | (388) | (599) | | Financing activities | | | | | | | | | | | | | | | | | | | Net issues (repayments) of debt | | | (855) | (187) | 251 | (435) | (1,226) | (6) | 962 | (246) | (27) | 683 | (126) | (33) | (159) | | | Common Shares issued on exercise of stock options | | | 8 | 6 | 19 | 11 | 44 | 1 | 1 | 15 | 64 | 81 | 83 | 50 | 133 | | | Repurchase of Common Shares | | | (284) | (409) | (342) | (254) | (1,289) | (201) | - | (2) | - | (203) | (162) | (99) | (261) | | | Tax withholdings on vesting of equity awards | | | (3) | (2) | - | (4) | (9) | (10) | - | - | (3) | (13) | (12) | - | (12) | | | Contributions to subsidiaries by non-controlling interests | | | 2 | - | 2 | - | 4 | - | - | - | 18 | 18 | - | - | - | | | Dividends paid to non-controlling interests | | | - | (13) | - | (9) | (22) | (3) | (3) | - | (12) | (18) | - | (8) | (8) | | | Dividends paid | | | (119) | (110) | (109) | (111) | (449) | (121) | (116) | (115) | (115) | (467) | (130) | (127) | (257) | | Cash provided from (used for) financing activities | | | | (1,251) | (715) | (179) | (802) | (2,947) | (340) | 844 | (348) | (75) | 81 | (347) | (217) | (564) | | Effect of exchange rate changes on cash, cash equivalents | | | | | | | | | | | | | | | | | | | and restricted cash equivalents | | | 14 | (4) | (9) | 10 | 11 | (52) | 9 | (15) | 81 | 23 | (13) | 39 | 26 | | Net increase (decrease) in cash, cash equivalents | | | | | | | | | | | | | | | | | | | and restricted cash equivalents during the period | | | 239 | (360) | 200 | 511 | 590 | (133) | (611) | 970 | 1,756 | 1,982 | 90 | (38) | 52 | | Cash, cash equivalents and restricted cash equivalents, | | | | | | | | | | | | | | | | | | | beginning of period | | 3 | 802 | 1,041 | 681 | 881 | 802 | 1,392 | 1,259 | 648 | 1,618 | 1,392 | 3,374 | 3,464 | 3,374 | | Cash, cash equivalents and restricted cash equivalents, | | | | | | | | | | | | | | | | | | | end of period | | | 1,041 | 681 | 881 | 1,392 | 1,392 | 1,259 | 648 | 1,618 | 3,374 | 3,374 | 3,464 | 3,426 | 3,426 | | | | (i) Certain amounts in prior periods have been reclassified to conform with current period presentation. | | | | | | | | | | | | | | |

| Q2 2021 Financial Review of Magna International Inc. | Page 3 of 6 |

| --- | --- | | FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC. | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (United States dollars in millions, except per share figures) (Unaudited) | | | | | | | | | | | | | | | | | | | This Analyst should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020. | | | | | | | | | | | | | | | Note 1: | | NON-GAAP MEASURES | | | | | | | | | | | | | | | | | The Company presents Operating income, EBIT (Earnings before interest and taxes) and EBITDA (Earnings before interest, taxes and depreciation and amortization) before Other expense (income),net. The Company also presents Adjusted Net Income (Net Income before Other expense (income),net , net of tax and excluding significant income tax valuation allowance adjustments), Adjusted Diluted Earnings per Share, Adjusted EBIT and Adjusted EBIT as a percentage of sales, Return on Invested Capital and Return on Equity. The Company calculates Adjusted Debt as total debt adjusted to include pension and lease liabilities and Adjusted EBITDA as earnings before, interest, net, taxes, depreciation and amortization adjusted to add back interest income, certain pension costs and operating lease expense. The Company presents these financial figures because such measures are widely used by analysts and investors in evaluating the operating performance of the Company. However, such measures do not have any standardized meaning under U.S. generally accepted accounting principles and may not be comparable to the calculation of similar measures by other companies. Other expense (income), net consists of: | | | | | | | | | | | | | | | | | | 2019 | | | | | 2020 | | | | | 2021 | | | | | | | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | TOTAL | | | | Impairments and loss on sale of equity-accounted investments | - | - | 700 | - | 700 | - | - | 337 | 10 | 347 | - | - | - | | | | Restructuring and impairments | 14 | 7 | 34 | 3 | 58 | - | 168 | - | 101 | 269 | 15 | 44 | 59 | | | | Net (gains) losses on investments | (177) | 67 | 127 | (11) | 6 | - | - | (21) | (11) | (32) | (33) | (38) | (71) | | | | Gain on business combinations | - | - | - | - | - | - | - | - | - | - | (40) | - | (40) | | | | Gain on the sale of business | (516) | (6) | (2) | - | (524) | - | - | - | - | - | - | - | - | | | | | (679) | 68 | 859 | (8) | 240 | - | 168 | 316 | 100 | 584 | (58) | 6 | (52) | | | [a] | Impairments and loss on sale of equity-accounted investments | | | | | | | | | | | | | | | | | In the fourth quarter of 2020, the Company recorded a 10 million loss in Power & Vision on the sale of its 50% interest in Dongfeng Getrag Transmission Co. Ltd. In Power & Vision, during the third quarters of 2020 and 2019, the Company recorded impairment charges of 337 million and 700 million, respectively on equity accounted investments. | | | | | | | | | | | | | | | | [b] | Restructuring and impairments | | | | | | | | | | | | | | | | | COVID-19 Restructuring and Impairments: | | | | | | | | | | | | | | | | | In response to the impact that COVID-19 was expected to have on vehicle production volumes over the short to medium term, the Company initiated and/or accelerated the timing of restructuring plans to right-size its business. These restructuring actions included plant closures and workforce reductions. As a result, in the second quarter of 2020, the Company recorded COVID-19 related restructuring and impairment charges of 115 million in Power & Vision, 37 million in Body Exteriors & Structures, and 16 million in Seating, respectively. | | | | | | | | | | | | | | | | | Brazil Closures: | | | | | | | | | | | | | | | | | In the fourth quarter of 2020, in connection with the announced plant closures by Ford Motor Co. in Brazil, the Company made the decision to accelerate the closure and/or restructuring of two facilities in Brazil that supply these plants by recording resturcturing and impairments in the amount of 8 million in Body Exteriors & Structures, and 15 million in Seating, respectively. | | | | | | | | | | | | | | | | | Impairments: | | | | | | | | | | | | | | | | | The Company recorded impairments in the second quarter of 2019 in the amount of 27 million in Power & Vision as well in the fourth quarter of 2020 in the amount of 57 million in Body Exteriors & Structures. | | | | | | | | | | | | | | | | | Restructuring: | 2019 | | | | | 2020 | | | | | 2021 | | | | | | | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | TOTAL | | | | Power & Vision | - | - | - | - | - | - | - | - | - | - | 15 | 44 | 59 | | | | Body Exteriors & Structures | 14 | 7 | 7 | 3 | 31 | - | - | - | 21 | 21 | - | - | - | | | | | 14 | 7 | 7 | 3 | 31 | - | - | - | 21 | 21 | 15 | 44 | 59 |

All values are in US Dollars.

| Q2 2021 Financial Review of Magna International Inc. | Page 4 of 6 |

| --- | --- | | [c] | Net (gains) losses on investments | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | In Corporate, during the first and second quarters of 2021, the Company recorded gains related to the revaluation of its public and private equity investments and certain public company warrants. In Corporate, during the third and fourth quarters of 2020, the Company recorded gains related to the revaluation of its private equity investments. In addition, the Company recorded a non-cash impairment charge of 2 million on its private equity investment in Corporate. In Corporate, during the first, second, third and fourth quarters of 2019, the Company recorded gains and losses related substantially to the revaluation of its investment in Lyft, Inc. | | | | | | | | | | | | | | | | | [d] | Gain on business combinations | | | | | | | | | | | | | | | | | | In Seating Systems, during the first quarter of 2021, the Company recognized a 22 million gain on the on the change in basis of accounting for its previously held equity method investments. In Power & Vision, substantially all of the assets of the Company's European joint venture with Ford Motor Company, Getrag Ford Transmission GmbH, were distributed to either Ford or the Company, which resulted in the Company recording a gain of 18 million. | | | | | | | | | | | | | | | | | [e] | Gain on the sale of business | | | | | | | | | | | | | | | | | | In Power & Vision, during the first quarter of 2019, the Company recorded a gain on the sale of its FP&C business of 516 million. In the second and third quarters of 2019, the Company recorded an increase in the gain on sale of 6 million and 2 million, respectively, as a result of finalizing the proceeds relating to working capital. | | | | | | | | | | | | | | | | | | The following table reconciles Net (loss) income attributable to Magna International Inc. to Adjusted net income attributable to Magna International Inc.: | | | | | | | | | | | | | | | | | | | | | 2019 | | | | | 2020 | | | | | 2021 | | | | | | | | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | TOTAL | | | Net income (loss) attributable to Magna International Inc. | | | 1,106 | 452 | (233) | 440 | 1,765 | 261 | (647) | 405 | 738 | 757 | 615 | 424 | 1,039 | | | | | | | | | | | | | | | | | | | | | | Impairments and loss on sale of equity-accounted investments | [i] | - | - | 537 | - | 537 | - | - | 200 | 19 | 219 | - | - | - | | | | Restructuring and impairments | | 14 | 7 | 27 | 3 | 51 | - | 136 | - | 101 | 237 | 15 | 31 | 46 | | | | Net (gains) losses on investments | | (151) | 57 | 109 | (10) | 5 | - | - | (20) | (7) | (27) | (24) | (29) | (53) | | | | Gain on business combinations | | - | - | - | - | - | - | - | - | - | - | (40) | - | (40) | | | | Gain on the sale of business | | (438) | (7) | (2) | - | (447) | - | - | - | - | - | - | - | - | | | | | | | | | | | | | | | | - | | - | | | Adjusted net income (loss) attributable to Magna International Inc. | | | 531 | 509 | 438 | 433 | 1,911 | 261 | (511) | 585 | 851 | 1,186 | 566 | 426 | 992 | | | Diluted earnings (loss) per share | | | $ 3.39 | $ 1.42 | $ (0.75) | $ 1.43 | $ 5.59 | $ 0.86 | $ (2.17) | $ 1.35 | $ 2.45 | $ 2.52 | $ 2.03 | 1.40 | $ 3.42 | | | | | | | | | | | | | | | | | | | | | | Impairments and loss on sale of equity-accounted investments | [i] | - | - | 1.74 | - | 1.70 | - | - | 0.67 | 0.06 | 0.73 | - | - | - | | | | Restructuring and impairments | | 0.04 | 0.02 | 0.08 | 0.01 | 0.16 | - | 0.46 | - | 0.34 | 0.79 | 0.05 | 0.10 | 0.15 | | | | Net (gains) losses on investments | | (0.46) | 0.17 | 0.35 | (0.03) | 0.02 | - | - | (0.07) | (0.02) | (0.09) | (0.08) | (0.10) | (0.17) | | | | Gain on business combinations | | - | - | - | - | - | - | - | - | - | - | (0.14) | - | (0.13) | | | | Gain on the sale of business | | (1.34) | (0.02) | (0.01) | - | (1.42) | - | - | - | - | - | - | - | - | | | Adjusted diluted earnings (loss) per share | | | $ 1.63 | $ 1.59 | $ 1.41 | $ 1.41 | $ 6.05 | $ 0.86 | $ (1.71) | $ 1.95 | $ 2.83 | $ 3.95 | $ 1.86 | $ 1.40 | $ 3.27 | | | [i] Impairment charges | | | | | | | | | | | | | | | | | | Impairment charges relating to the Company's equity accounted investment for 2019 and 2020, include 127 million and 75 million, respectively, attributable to non-controlling interest. | | | | | | | | | | | | | | | |

All values are in US Dollars.

| Q2 2021 Financial Review of Magna International Inc. | Page 5 of 6 |

| --- | --- | | Note 2: | SEGMENTED INFORMATION | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | 2019 | | | | | 2020 | | | | | 2021 | | | | | | | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | 3rd Q | 4th Q | TOTAL | 1st Q | 2nd Q | TOTAL | | | Body Exteriors & Structures | | | | | | | | | | | | | | | | | | Sales | 4,308 | 4,243 | 3,984 | 3,923 | 16,458 | 3,676 | 1,623 | 3,858 | 4,393 | 13,550 | 4,025 | 3,647 | 7,672 | | | | Adjusted EBIT | 363 | 341 | 306 | 289 | 1,299 | 199 | (315) | 390 | 543 | 817 | 327 | 227 | 554 | | | | Adjusted EBIT as a percentage of sales | 8.4% | 8.0% | 7.7% | 7.4% | 7.9% | 5.4% | -19.4% | 10.1% | 12.4% | 6.0% | 8.1% | 6.2% | 7.2% | | | Power & Vision | | | | | | | | | | | | | | | | | | Sales | 3,083 | 2,808 | 2,696 | 2,725 | 11,312 | 2,523 | 1,298 | 2,722 | 3,179 | 9,722 | 3,156 | 2,881 | 6,037 | | | | Adjusted EBIT | 216 | 201 | 167 | 163 | 747 | 135 | (226) | 227 | 359 | 495 | 297 | 203 | 500 | | | | Adjusted EBIT as a percentage of sales | 7.0% | 7.2% | 6.2% | 6.0% | 6.6% | 5.4% | -17.4% | 8.3% | 11.3% | 5.1% | 9.4% | 7.0% | 8.3% | | | Seating Systems | | | | | | | | | | | | | | | | | | Sales | 1,433 | 1,452 | 1,266 | 1,426 | 5,577 | 1,261 | 524 | 1,280 | 1,390 | 4,455 | 1,303 | 1,166 | 2,469 | | | | Adjusted EBIT | 94 | 83 | 56 | 79 | 312 | 40 | (84) | 66 | 85 | 107 | 55 | 26 | 81 | | | | Adjusted EBIT as a percentage of sales | 6.6% | 5.7% | 4.4% | 5.5% | 5.6% | 3.2% | -16.0% | 5.2% | 6.1% | 2.4% | 4.2% | 2.2% | 3.3% | | | Complete Vehicles | | | | | | | | | | | | | | | | | | Sales | 1,928 | 1,802 | 1,516 | 1,461 | 6,707 | 1,321 | 933 | 1,402 | 1,759 | 5,415 | 1,850 | 1,490 | 3,340 | | | | Adjusted EBIT | 28 | 43 | 29 | 44 | 144 | 50 | 44 | 70 | 110 | 274 | 80 | 79 | 159 | | | | Adjusted EBIT as a percentage of sales | 1.5% | 2.4% | 1.9% | 3.0% | 2.1% | 3.8% | 4.7% | 5.0% | 6.3% | 5.1% | 4.3% | 5.3% | 4.8% | | | Corporate and other | | | | | | | | | | | | | | | | | | Intercompany fees | (161) | (179) | (143) | (140) | (623) | (124) | (85) | (133) | (153) | (495) | (155) | (150) | (305) | | | | Adjusted EBIT | 19 | 9 | 0 | 15 | 43 | (21) | (19) | 25 | (2) | (17) | 11 | 22 | 33 | | | Total | | | | | | | | | | | | | | | | | | Sales | 10,591 | 10,126 | 9,319 | 9,395 | 39,431 | 8,657 | 4,293 | 9,129 | 10,568 | 32,647 | 10,179 | 9,034 | 19,213 | | | | Adjusted EBIT | 720 | 677 | 558 | 590 | 2,545 | 403 | (600) | 778 | 1,095 | 1,676 | 770 | 557 | 1,327 | | | | Adjusted EBIT as a percentage of sales | 6.8% | 6.7% | 6.0% | 6.3% | 6.5% | 4.7% | -14.0% | 8.5% | 10.4% | 5.1% | 7.6% | 6.2% | 6.9% | | Note 3: | CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS | | | | | | | | | | | | | | | | | A reconciliation of Cash and cash equivalents and Restricted cash equivalents (included in prepaid expenses) to Total cash, cash equivalents and restricted cash equivalents is as follows: | | | | | | | | | | | | | | | | | | | 2019 | | | | | 2020 | | | | | 2021 | | | | | | | 1st Q | 2nd Q | 3rd Q | 4th Q | | 1st Q | 2nd Q | 3rd Q | 4th Q | | 1st Q | 2nd Q | | | | Cash and cash equivalents | | (925) | (563) | (769) | (1,276) | | (1,146) | (533) | (1,498) | (3,268) | | (3,464) | (3,426) | | | | Restricted cash equivalents included in prepaid expenses | | (116) | (118) | (112) | (116) | | (113) | (115) | (120) | (106) | | - | - | | | | Total cash, cash equivalents and restricted cash equivalents | | (1,041) | (681) | (881) | (1,392) | | (1,259) | (648) | (1,618) | (3,374) | | (3,464) | (3,426) | | | Q2 2021 Financial Review of Magna International Inc. | Page 6 of 6 | | --- | --- |

Exhibit 99.2

August 6, 2021 Q2 2021 Earnings Presentation

Forward Looking Statements Q2 2021 Earnings - 06AUG21 2 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 expectations and plans and may not be appropriate for other purposes . Forward - looking statements may include financial and other projections, as well as statements regarding our future plans, strategic objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact . We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "aim", "forecast", "outlook", "project", "estimate", "target" and similar expressions suggesting future outcomes or events to identify forward - looking statements . The following table identifies the material forward - looking statements contained in this document, together with the material potential risks that we currently believe could cause actual results to differ materially from such forward - looking statements . Readers should also consider all of the risk factors which follow below the table : Material Forward - Looking Statement Material Potential Risks Related to Applicable Forward - Looking Statement Completion of the Veoneer transaction  Inherent merger and acquisitions risks, including: the potential termination of our merger agreement with Veoneer as a result of the offer by an alternative bidder to acquire Veoneer at a premium over Magna’s offer price; unexpected costs, liabilities or delays; inability or failure to achieve intended benefits from the transaction; and/or loss of customers, supp lie rs, employees or other forms of business disruption, including diversion of management attention; failure to satisfy the conditions to completion of the transaction, including approval of the merger by Veoneer's stockholders, and receipt of required governmental / regulatory approvals on the terms or at the timing expected; litigation ch allenging the merger  Acquisition integration risks, including the failure to realize anticipated synergies  Technology and innovation risks, including competitiveness of acquired technologies  Program launch risks  Loss of cooperation from an important supplier  Intense competition Financial impact of transaction, including content per vehicle opportunities  Same risks as above  Shifts in consumer take rates  Potential loss of material purchase order Engineering & software resources and expertise  Acquisition integration risks  Attraction/retention of skilled labour, including failure to retain critical employees of either the acquired business or our own existing business  Labour disruption risk at acquired unionized facilities Impact of the global semiconductor shortage  Risks related to OEM actions in response to the semiconductor chip shortage such as unplanned shutdowns of production lines and/or plants ; reductions in OEM vehicle production plans ; and changes to OEM product mix . These risks include : lower sales ; production inefficiencies due to production lines being stopped/restarted unexpectedly based on OEMs' production schedules ; premium freight costs to expedite shipments ; and/or other unrecoverable costs ; OEM claims related to disruption of their production ; price increases from sub - suppliers that have been negatively impacted by production inefficiencies, premium freight costs and/or other costs related to the semiconductor chip shortage  Price concessions Inflationary price increases  Commodity cost volatility  Inability to offset inflationary price increases through continuous improvement actions, price increases, adjustments to our own operations or otherwise  Skilled labour attraction/retention Impact of LG Joint Venture on our ability to participate in e - powertrain opportunities  Technology and innovation risks  Intense competition  Risks related to conducting business through joint ventures Total Sales Segment Sales  Mandatory stay - at - home orders and other restrictions to help contain COVID - 19 spread could impact vehicle sales, vehicle production and our own production  Economic impact of COVID - 19 on consumer confidence  Supply disruptions, including as a result of a semiconductor chip shortage currently being experienced in the industry  Concentration of sales with six customers  Shifts in market shares among vehicles or vehicle segments  Shifts in consumer "take rates" for products we sell Adjusted EBIT Margin Segment Adjusted EBIT Margin Net Income Attributable to Magna  Same risks as for Total Sales and Segment Sales above  Operational underperformance  Higher costs incurred to mitigate the risk of supply disruptions, including : materials price increases ; higher - priced substitute supplies ; premium freight costs to expedite shipments ; production inefficiencies due to production lines being stopped/restarted unexpectedly based on customers' production schedules ; price increases from sub - suppliers that have been negatively impacted by production inefficiencies ; and potential claims against us if customer production is disrupted  Price concessions  Commodity cost volatility  Higher labour costs  Tax risks Equity Income  Same risks as Adjusted EBIT Margin/Segment Adjusted EBIT Margin/Net Income Attributable to Magna above  Risks related to conducting business through joint ventures Free Cash Flow  Same risks as for Total Sales/Segment Sales, and Adjusted EBIT Margin/Segment Adjusted EBIT Margin/Net Income Attributable to Magna above

Forward Looking Statements (cont.) 3 Q2 2021 Earnings - 06AUG21 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 other factors we believe are appropriate in the circumstances . While we believe we have a reasonable basis for making any such forward - looking statements, they are not a guarantee of future performance or outcomes . In addition to the factors in the table above, whether actual results and developments conform to our expectations and predictions is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation : Risks Related to the Automotive Industry  economic cyclicality;  regional production volume declines, including as a result of the COVID - 19 pandemic;  intense competition;  potential restrictions on free trade;  trade disputes/tariffs; Customer and Supplier Related Risks  concentration of sales with six customers;  emergence of potentially disruptive EV OEMs;  OEM consolidation and cooperation;  shifts in market shares among vehicles or vehicle segments;  shifts in consumer "take rates" for products we sell;  quarterly sales fluctuations;  potential loss of any material purchase orders;  a deterioration in the financial condition of our supply base, including as a result of the COVID - 19 pandemic; Manufacturing Operational Risks  product and new facility launch risks;  operational underperformance;  restructuring costs;  impairment charges;  labour disruptions;  COVID - 19 shutdowns;  supply disruptions, including with respect to semiconductor chips;  higher costs to mitigate supply disruptions;  climate change risks;  attraction/retention of skilled labour and leadership succession; I T Security/Cybersecurity Risk  IT/Cybersecurity breach;  Product Cybersecurity breach; Pricing Risks  pricing risks between time of quote and start of production;  price concessions;  commodity cost volatility;  declines in scrap steel/aluminum prices; Warranty / Recall Risks  costs related to repair or replacement of defective products, including due to a recall;  warranty or recall costs that exceed warranty provision or insurance coverage limits;  product liability claims; Acquisition Risks  competition for strategic acquisition targets;  inherent merger and acquisition risks;  acquisition integration risk; Other Business Risks  risks related to conducting business through joint ventures;  our ability to consistently develop and commercialize innovative products or processes;  our changing business risk profile as a result of increased investment in electrification and autonomous driving, including: higher R&D and engineering costs, and challenges in quoting for profitable returns on products for which we may not have significant quoting experience;  risks of conducting business in foreign markets;  fluctuations in relative currency values;  tax risks;  reduced financial flexibility as a result of an economic shock;  changes in credit ratings assigned to us; Legal, Regulatory and Other Risks  antitrust risk;  legal claims and/or regulatory actions against us; and  changes in laws and regulations, including those related to vehicle emissions or made as a result of the COVID - 19 pandemic. In evaluating forward - looking statements or forward - looking information, we caution readers not to place undue reliance on any forward - looking statement . Additionally, readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward - looking statements, including the risks, assumptions and uncertainties above which are :  discussed under the "Industry Trends and Risks" heading of our Management's Discussion and Analysis ; and  set out in our Annual Information Form filed with securities commissions in Canada, our annual report on Form 40 - F filed with the United States Securities and Exchange Commission, and subsequent filings . Readers should also consider discussion of our risk mitigation activities with respect to certain risk factors, which can be also found in our Annual Information Form .

Q2 2021 Earnings - 06AUG21 4 Reminders All amounts are in U.S. Dollars Today's discussion excludes the impact of other expense (income), net ("Unusual Items") "Organic", in the context of sales movements, means "excluding the impact of foreign exchange, acquisitions and divestitures"

5 Key Messages Q2 2021 Earnings - 06AUG21 Solid Q2 performance in a challenging industry environment 1 Continued focus on cost management, reflecting operational excellence and implemented restructuring actions 2 Strategic portfolio positions us for sales growth over market and strong free cash flow 3 Well - positioned to capture growing market opportunities with systems approach and unique complete vehicle capabilities 4

Magna's ICON  Digital Radar Q2 2021 Earnings - 06AUG21 6 Industry First Application Launches in 2022  Program Award • Dramatically improves RADAR performance • Detects pedestrians up to 150 metres away • Eliminates interference experienced by current RADAR systems • Developed in partnership with technology startup Uhnder, Inc.

Magna and LG Close Joint Venture Transaction Q2 2021 Earnings - 06AUG21 7 Increased Opportunities for Growth in e - Powertrains • Enhances e - motor and inverter building blocks • Strengthens position in e - drive systems through vertical integration • Allows us to participate in growing addressable market for e - powertrain components

Surface Element Lighting Technology Q2 2021 Earnings - 06AUG21 8 First to Market on All - Electric 2021 Volkswagen ID.4 • Compact packaging, homogeneous appearance and customizable, affordable LED lighting • OLED - like uniformity at a fraction of the cost is a game - changer • Minimum thickness of 4mm allows individual compact LED panels to be packaged into tight spaces

Recognition from General Motors Q2 2021 Earnings - 06AUG21 9 Six 2020 Supplier of the Year Awards • Only supplier to receive six awards in a single year from the automaker – won six awards for second straight year • Awards honor top suppliers that consistently exceed expectations • Magna recognized across a variety of technologies

Current Market Dynamics Q2 2021 Earnings - 06AUG21 10 Continued Robust Auto Demand Environment HEADWINDS TAILWINDS Low Dealer Inventory Levels, Particularly in North America OEMs Indications Point to Strong Future Production Semiconductor Chip Supply Constraints High Commodity Costs Increased Labour Costs

CONSOLIDATED SALES $9.0B Q2 2021 Performance Highlights Q2 2021 Earnings - 06AUG21 11 ADJUSTED EBIT MARGIN % 6.2% OTHER ACCOMPLISHMENTS ADJUSTED DILUTED EPS $1.40 FREE CASH FLOW 1 $178M $592M YTD Returned $226M to shareholders through dividends + share buybacks 1 Free Cash Flow (FCF) is Cash from Operating Activities plus proceeds from normal course dispositions of fixed and other asset s p lus settlement of long - term receivable from a non - consolidated joint venture minus capital spending minus investment in other assets Solid Performance in a Difficult Operating Environment Maintained 2021 FCF expectations despite lowering Outlook Improved Exteriors manufacturing footprint in Europe

Q2 2021 Financial Results Q2 2021 Earnings - 06AUG21 12 Reflects COVID - 19 shutdowns Q2'20, semiconductor chip shortage Q2'21 Adjusted EBIT ($Millions) - $600 $557 -$750 -$550 -$350 -$150 $50 $250 $450 $650 Q2'20 Q2'21 Consolidated Sales ($Billions) $4.3 $9.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 Q2'20 Q2'21 Adjusted EPS ($) - $1.71 $1.40 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 -$2.50 -$2.00 -$1.50 -$1.00 -$0.50 $0.00 $0.50 $1.00 $1.50 $2.00 Q2'20 Q2'21

13 Q2 2021 vs Q1 2021 (Sequential) Financial Results Q2 2021 Earnings - 06AUG21 Key Factors • Lower global light vehicle production, substantially due to semiconductor chip shortage ( - ) • Foreign currency translation: $31M (+) Q2'21 vs Q1'21 Production Global - 10% North America - 13% Europe - 11% China - 1% Magna Weighted - 11% Consolidated Sales ($Billions) - 11% $10.2 $9.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Q1'21 Q2'21

14 Q2 2021 vs Q1 2021 (Sequential) Financial Results Q2 2021 Earnings - 06AUG21 Key Factors • Lower earnings on $1.1B decline in sales ( - ) • Commodity costs ( - ) • New facility and launch costs ( - ) • Incremental labour costs in Mexico ( - ) • Higher net application costs in ADAS ( - ) • Favourable value - added tax settlement in Brazil (+) • Higher tooling contribution (+) • Q1'21 net settlements of customer claims (+) Adjusted EBIT & Margin ($Billions) - 28% $770 $557 7.6% 6.2% 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.2 $0 $100 $200 $300 $400 $500 $600 $700 $800 Q1'21 Q2'21

15 Q2 2021 Cash Flow and Investment Activities Q2 2021 Earnings - 06AUG21 Free Cash Flow 1 ($Millions) - $1,462 $414 $178 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 -$1,600 -$1,100 -$600 -$100 $400 Q2'20 Q1'21 Q2'21 USES OF CASH Public and Private Equity Investments $17M Share Repurchases (1.0M Shares) $99M Dividends ($0.43/share) $127M Cash from Operations Before Changes in Operating Assets & Liabilities $777M Changes in Operating Assets & Liabilities ($249M) Cash from Operations $528M Fixed Asset Additions ($277M) Increase in Investments, Other Assets and Intangible Assets ($93M) Proceeds from Dispositions $20M Free Cash Flow 1 $178M 1 Free Cash Flow (FCF) is Cash from Operating Activities plus proceeds from normal course dispositions of fixed and other asset s p lus settlement of long - term receivable from a non - consolidated joint venture minus capital spending minus investment in other assets

Continued Financial Flexibility Q2 2021 Earnings - 06AUG21 16 Improved Adjusted Debt to Adjusted EBITDA Q2'21 HIGHLIGHTS • Continued operational excellence and higher earnings driving strong cash generation ($B) Estimated Future LTD Principal Repayments (12/31/20) ($M) $129 $365 $722 $760 $647 $1,479 2021 2022 2023 2024 2025 Thereafter LEVERAGE RATIO (LTM, 6/30/21) Adjusted Debt $6.1 Adjusted EBITDA $4.7 Adjusted Debt / Adjusted EBITDA (Q2 2021) 1.29 Adjusted Debt / Adjusted EBITDA (Q1 2021) 1.74 TOTAL LIQUIDITY (6/30/21) Cash $3.4 Available Term & Operating Lines of Credit $3.5 Total Liquidity $6.9 Investment - grade ratings from Moody's, S&P, DBRS

2021 Outlook Assumptions Q2 2021 Earnings - 06AUG21 17 2020 MAY AUGUST Light Vehicle Production (millions of units) • North America 13.0 15.6 14.4 • Europe 16.5 18.5 18.1 • China 23.5 24.7 24.7 Foreign Exchange Rates • 1 CDN dollar equals USD 0.746 0.797 0.801 • 1 EURO equals USD 1.141 1.201 1.193 • 1 RMB equals USD 0.145 0.153 0.155 Changed from previous Outlook

2021 Outlook Q2 2021 Earnings - 06AUG21 18 $ Billions, Unless Otherwise Noted 2020 MAY AUGUST Sales: • Body Exteriors & Structures $16.5 – $17.1 $15.3 – $15.9 • Power & Vision $12.0 – $12.4 $11.8 – $12.2 • Seating Systems $5.6 – $5.9 $5.1 – $5.4 • Complete Vehicles $6.7 – $7.0 $6.3 – $6.6 Total Sales $32.6 $40.2 – $41.8 $38.0 – $39.5 Adjusted EBIT Margin % 1 5.1% 7.2% – 7.6% 7.0% – 7.4% Equity Income $189M $120M – $150M $115M – $145M Interest Expense $86M ~$100M ~80M Income Tax Rate 2 25.7% ~23% ~23% Net Income Attributable to Magna 3 $1.186 $2.2 – $2.4 $2.0 – $2.2 Capital Spending $1.145 ~$1.6 ~$1.6 1 Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales 2 The Income Tax Rate has been calculated using Adjusted EBIT and is based on current tax legislation 3 Net Income Attributable to Magna represents Net Income excluding Other expense (income), net Changed from previous Outlook

19 Free Cash Flow 1 Expectations Q2 2021 Earnings - 06AUG21 2021 ($Billions) $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 $1.6 - $1.8 $1.6 - $1.8  May 2021 Outlook  August 2021 Outlook 1 Free Cash Flow (FCF) is Cash from Operating Activities plus proceeds from normal course dispositions of fixed and other asset s p lus settlement of long - term receivable from a non - consolidated joint venture minus capital spending minus investment in other assets

2021 Segment Adjusted EBIT Margin Q2 2021 Earnings - 06AUG21 20  2020  May 2021 Outlook  August 2021 Outlook BODY EXTERIORS & STRUCTURES 6.0% 8.5 - 9.0% 8.0 - 8.5% SEATING SYSTEMS 2.4% 5.4 - 5.9% 4.5 - 5.0% POWER & VISION 5.1% 7.7 - 8.2% 7.3 - 7.8% COMPLETE VEHICLES 5.1% 4.1 - 4.6% 4.5 - 5.0%

21 IN SUMMARY Solid Q2 Performance in a Challenging Environment Q2 2021 Earnings - 06AUG21 Strong cost management considering volatile production schedules Free cash flow 1 generation of $178M, $592M YTD Maintained 2021 free cash flow 1 expectations despite lowered 2021 Outlook 1 Free Cash Flow (FCF) is Cash from Operating Activities plus proceeds from normal course dispositions of fixed and other assets plu s settlement of long - term receivable from a non - consolidated joint venture minus capital spending minus investment in other assets Returned $226M to shareholders through dividends and share repurchases

Q2 2021 Earnings - 06AUG21 22 Appendix

Q2 2021 Reconciliation of Reported Results Q2 2021 Earnings - 06AUG21 23 REPORTED OTHER EXPENSE, NET EXCL. OTHER EXPENSE, NET Income Before Income Taxes $ 540 $ 6 $ 546 % of Sales 6.0% 6.0% Income Tax Expense $ 104 $ 4 $ 108 % of Pretax 19.3% 19.8% Income Attributable to Non - Controlling Interests $ (12) $ - $ (12) Net Income Attributable to Magna $ 424 $ 2 $ 426 Earnings Per Share $ 1.40 $ - $ 1.40 EXCLUDING OTHER EXPENSE (INCOME), NET $MILLIONS – EXCEPT FOR SHARE FIGURES

Q2 2020 Reconciliation of Reported Results Q2 2021 Earnings - 06AUG21 24 EXCLUDING OTHER EXPENSE (INCOME), NET $MILLIONS – EXCEPT FOR SHARE FIGURES REPORTED OTHER EXPENSE EXCL. OTHER EXPENSE Loss Before Income Taxes $ (789) $ 168 $ (621) % of Sales (18.4)% 14.5% Income Tax Benefit $ (137) $ 32 $ (105) % of Pretax 17.4% 16.9% Loss Attributable to Non - Controlling Interests $ 5 $ - $ 5 Net Loss Attributable to Magna $ (647) $ 136 $ (511) Loss Per Share $ (2.17) $ 0.46 $ (1.71)

Sales Performance vs Market 25 REPORTED ORGANIC 1 PERFORMANCE VS WEIGHTED GLOBAL PRODUCTION (Weighted GoM) Body Exteriors & Structures 125% 114% (19)% Power & Vision 122% 95% (38)% Seating 123% 97% (36)% Complete Vehicles 60% 46% (87)% TOTAL SALES 110% 93% (40)% Unweighted Production Growth 58% Weighted Production Growth 2 133% 1 Organic Sales represents sales excluding acquisitions net of divestitures and FX movements 2 Calculated by applying Magna geographic sales weighting, excluding Complete Vehicles, to regional production Q2 2021 Earnings - 06AUG21 Q2 2021 vs Q2 2020

Sales Performance vs Market 26 REPORTED ORGANIC 1 PERFORMANCE VS WEIGHTED GLOBAL PRODUCTION (Weighted GoM) Body Exteriors & Structures 45% 39% 1% Power & Vision 58% 41% 3% Seating 38% 25% (13)% Complete Vehicles 48% 36% (2)% TOTAL SALES 48% 37% (1)% Unweighted Production Growth 36% Weighted Production Growth 2 38% 1 Organic Sales represents sales excluding acquisitions net of divestitures and FX movements 2 Calculated by applying Magna geographic sales weighting, excluding Complete Vehicles, to regional production Q2 2021 Earnings - 06AUG21 2021 YTD vs 2020

Geographic Sales 27  Q2 2020  Q2 2021 NORTH AMERICA $1.6B $4.1B PRODUCTION +165% EUROPE $2.2B $4.1B PRODUCTION +110% ASIA $475M $912M PRODUCTION +25% (China +3%) REST OF WORLD $25M $100M S.A. PRODUCTION +355% Q2 2021 vs Q2 2020 Q2 2021 Earnings - 06AUG21

2023 Financial Outlook 1 Q2 2021 Earnings - 06AUG21 28 1 We have not updated 2023 Outlook ranges from our February 19 th , 2021 press release. 2 Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales Assumptions Light Vehicle Production (millions of units) • North America 16.3 • Europe 20.1 • China 26.0 Foreign Exchange Rates • 1 CDN dollar equals USD 0.770 • 1 EURO equals USD 1.210 • 1 RMB equals USD 0.153 $ Billions, Unless Otherwise Noted Sales • Body Exteriors & Structures $18.0 – $19.0 • Power & Vision $13.0 – $13.6 • Seating Systems $6.1 – $6.5 • Complete Vehicles $6.3 – $6.8 Total Sales $43.0 – $45.5 • Adjusted EBIT Margin % 2 8.1% – 8.6% • Equity Income $155M – $200M

Capital Allocation Principles Q2 2021 Earnings - 06AUG21 29 Disciplined, Profitable Approach to Growth Remains a Foundational Principle Q2'21 Maintain Strong Balance Sheet • Preserve liquidity and high investment grade credit ratings - Adj. debt / Adj. EBITDA ratio between 1.0 - 1.5x LTM 06/30/21 1.29x • Maintain flexibility to invest for growth Invest for Growth • Organic and inorganic opportunities Fixed asset additions Other investments Public + Private Equity Inv. $277M $93M $17M • Innovation Return Capital to Shareholders • Continued dividend growth over time $127M • Repurchase shares with excess liquidity $99M

$Millions Leverage Ratio Q2 2021 Earnings - 06AUG21 30 Further Improved in Q2 2021 LTM EBITDA $ 4,634 Lease Adjustment $ 320 Other $ (217) Adjusted EBITDA $ 4,737 Debt per Balance Sheet $ 4,058 Lease Liability per Balance Sheet $ 1,841 Other $ 218 Adjusted Debt $ 6,117 Adjusted Debt / Adjusted EBITDA (Q2 2021) 1.29x Adjusted Debt / Adjusted EBITDA (Q1 2021) 1.74x

BODY EXTERIORS & STRUCTURES Segment Financial Performance Q2 2021 Earnings - 06AUG21 31 • Earnings on higher sales (+) • Cost savings and operating efficiencies, including as a result of implemented restructuring actions (+) • Higher tooling contribution (+) • Net provisions for customer claims in 2020 (+) • Lower transactional FX losses and positive impact of foreign currency translation (+) • Favourable value - added tax settlement in Brazil (+) • Higher employee profit sharing and incentive comp ( - ) • Incremental labour costs in Mexico ( - ) • Net customer price concessions ( - ) • Higher global light vehicle production (+) • Launch of new programs (+) • Foreign currency translation: $173M (+) • End of production of certain programs ( - ) • Net customer price concessions ( - ) $1.6 $3.6 Q2'20 Q2'21 Sales ($Billions) +125% Adjusted EBIT ($Millions) - $315 $227 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 -$450 -$350 -$250 -$150 -$50 $50 $150 $250 $350 Q2'20 Q2'21

• Higher global light vehicle production (+) • Launch of new programs (+) • Consolidation of Getrag entities: $175M (+) • Foreign currency translation: $170M (+) • Net customer price concessions ( - ) POWER & VISION Segment Financial Performance Q2 2021 Earnings - 06AUG21 32 • Earnings on higher sales (+) • Lower net application engineering costs in ADAS (+) • Cost savings and operating efficiencies, including as a result of implemented restructuring actions (+) • Lower net warranty costs: $13M (+) • Foreign currency translation: $12M (+) • Higher equity income: $10M (+) • Consolidation of Getrag entities (+) • Higher employee profit share and incentive comp ( - ) • Higher commodity costs ( - ) • Net customer price concessions ( - ) $1.3 $2.9 Q2'20 Q2'21 - $226 $203 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 -$300 -$200 -$100 $0 $100 $200 $300 Q2'20 Q2'21 Sales ($Billions) +122% Adjusted EBIT ($Millions)

• Higher global light vehicle production (+) • Launch of new programs (+) • Acquisition of Hongli in China: $92M (+) • Foreign currency translation: $41M (+) • Unfavourable production mix ( - ) • Net customer price concessions ( - ) SEATING Segment Financial Performance Q2 2021 Earnings - 06AUG21 33 • Earnings on higher sales (+) • Productivity and efficiency improvements at an underperforming facility (+) • Favourable commercial settlements (+) • Favourable value - added tax settlement in Brazil (+) • Higher launch costs ( - ) • Higher employee profit sharing and incentive comp ( - ) • Net customer price concessions ( - ) $0.5 $1.2 Q2'20 Q2'21 - $84 $26 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 Q2'20 Q2'21 Sales ($Billions) +123% Adjusted EBIT ($Millions)

• Higher vehicle assembly volumes (+13K units) • Higher euro: $126M (+) COMPLETE VEHICLES Segment Financial Performance Q2 2021 Earnings - 06AUG21 34 • Earnings on higher assembly volumes, net of contractual fixed cost recoveries on certain programs (+) • Higher margins on engineering programs (+) • Foreign currency translation: $7M (+) • Higher employee profit sharing and incentive comp ( - ) • Net customer price concessions ( - ) $0.9 $1.5 Q2'20 Q2'21 $44 $79 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Q2'20 Q2'21 Sales ($Billions) +60% Adjusted EBIT ($Millions)

Q2 2021 Earnings - 06AUG21 35 END

Exhibit 99.3

REFINITIV STREETEVENTS EDITED TRANSCRIPT MG.TO - Q2 2021 Magna International Inc Earnings Call EVENT DATE/TIME: AUGUST 06, 2021 / 11:00AM GMT REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call CORPORATE PARTICIPANTS Louis Tonelli Magna International Inc. - VP of IR Seetarama Swamy Kotagiri Magna International Inc. - CEO, President & Director Vincent Joseph Galifi Magna International Inc. - Executive VP & CFO CONFERENCE CALL PARTICIPANTS Aileen Elizabeth Smith BofA Securities, Research Division - Analyst Brian Arthur Johnson Barclays Bank PLC, Research Division - MD & Senior Equity Analyst Christopher Patrick McNally Evercore ISI Institutional Equities, Research Division - MD Dan Meir Levy Crédit Suisse AG, Research Division - Director & Senior Equity Research Analyst Mark Trevor Delaney Goldman Sachs Group, Inc., Research Division - Equity Analyst Michael W. Glen Raymond James Ltd., Research Division - Equity Research Analyst Peter Sklar BMO Capital Markets Equity Research - Analyst PRESENTATION Operator Greetings, and welcome to the Magna International Inc . Second Quarter 2021 Results . (Operator Instructions) As a reminder, this conference is being recorded today, Friday, August 6 , 2021 . It is now my pleasure to turn the conference over to Louis Tonelli, Vice President, Investor Relations . Please go ahead, sir . Louis Tonelli - Magna International Inc . - VP of IR Thanks, France . Hello, everyone, and welcome to our second quarter 2021 results conference call . Joining me today are Swamy Kotagiri and Vince Galifi . Yesterday, our Board of Directors met and approved our financial results for the second quarter of ' 21 . We issued a press release this morning outlining our results . You'll find the press release, today's conference call webcast, the slide presentation to go along with the call and our updated quarterly financial review, all in the Investor Relations section of our website at magna . com . Just before we get started, just as a reminder, the discussion today may contain forward - looking information or forward - looking statements within the meaning of applicable securities legislation . Such statements involve certain risks, assumptions and uncertainties, which may cause the company's actual or future results and performance to be materially different from those expressed or implied in these statements . Please refer to today's press release for a complete description of our safe harbor disclaimer . As we review financial information today, please note that all figures discussed are in U . S . dollars . We've included in the appendix a reconciliation of certain key financial statement lines for Q 2 ' 21 and Q 2 ' 20 between reported results and results excluding unusual items . Our quarterly earnings discussion today excludes the impact of unusual items . Please note that when we use the term organic in the context of sales movements, we mean excluding the impact of foreign exchange, acquisitions and divestitures . And with that, I'll pass it over to Swamy . Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director Thanks, Louis, and good morning, everyone . We are happy to be here to provide you with an update on Magna . Overall, we were pleased with our Q 2 performance considering the day - to - day production disruptions caused by the semiconductor chip shortage that continues to make for a 2 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

challenging industry environment in the short term . As a result of much lower production than we had anticipated back in early May, particularly in North America and Europe, our sales came in well below our expectations for the quarter . Naturally, this impacted our Q 2 earnings . And as Vince will discuss later, it is also impacting our outlook for 2021 . We continue to have a sharp focus on managing our costs through the volatile production period . This includes ongoing activities to enhance operational excellence as well as realizing savings from restructuring initiatives announced last year . Our focus on costs helped mitigate the impact of lower sales in the quarter . Longer term, our portfolio positions us to continue driving sales growth over market as well as strong free cash flow generation . Two weeks ago, we signed a definitive agreement to acquire Veoneer . I'm sure by now many of you have heard about Qualcomm's unsolicited offer for Veoneer yesterday . We learned of the news slightly at the same time as it hit about 24 hours ago . We are evaluating our options and considering next steps in light of Qualcomm's announcement . We will be disciplined in our approach and remain committed to earning appropriate returns on our investments . We are excited about Magna's future, particularly given our systems and complete vehicle know - how and approach . We recently highlighted Magna activities that reflect our improved positioning in key megatrend areas . Next year, we will be launching the industry's first application of digital radar technology with our ICON RADAR on the Fisker Ocean . The technology developed together with our partner Uhnder dramatically improves radar performance with a number of unique attributes compared to current radar systems . And in the area of electrification, we closed a joint venture agreement with LG . This JV, which enhances our e - motor and inverter building blocks, is an important vertical integration step that strengthens our overall eDrive systems capability . At the same time, it allows us to participate in the fast - growing e - machine and inverter markets for OEMs who choose to do some system integration work in - house . We recently profiled our new Surface Element Lighting technology with which we were first to market on the Volkswagen ID . 4 BEV . This technology offers many key features with respect to LED, which provides opportunities for future growth for us in lighting . Lastly, we won 6 Supplier of the Year awards from General Motors . The annual awards honor suppliers that consistently exceed GM's expectations . Magna is the only supplier to receive 6 awards in a single year, and we just did it for a second consecutive year . We are very proud of this, and we would like to thank our customers for this recognition . Let me turn to some of the market dynamics that are affecting our business right now . It is clear that the global semiconductor chip shortage has been and will be more impactful to 2021 than most in the industry anticipated earlier this year . Significant chip shortages continue to impact OEM production into the second half of 2021 . Commodity costs, while modestly better for ' 21 than what we expected a quarter ago, remained higher than what we expected at the beginning of the year . And wage pressures in certain markets, together with new labor laws in Mexico, have led to increases in labor costs . In terms of tailwinds, the industry continues to experience robust auto demand following the COVID - 19 - induced industry challenges of 2020 . Strong auto demand coupled with OEM production disruptions this year have led to historically low dealer inventory levels, particularly in North America . These 2 factors, together with indications from OEMs that they intend to run strong production once additional chip capacity comes on stream, points to a positive midterm production environment for auto suppliers . Overall, we continued our solid performance in Q 2 despite facing a difficult operating environment . Consolidated sales increased to $ 9 billion . EBIT margins increased to 6 . 2 % . Our adjusted EPS was $ 1 . 40 , and free cash flow increased to $ 178 million in the quarter, bringing our year - to - date level to almost $ 600 million . Despite reducing our 2021 outlook as a result of the semiconductor chip shortage, we maintained our expectations for ' 21 free cash flow . We returned $ 226 million to shareholders . And lastly, we reached an agreement to dispose of 3 loss - making exteriors facilities in Germany . The transaction, which closed on July 3 , improves our exteriors manufacturing footprint in Europe and better positions us for the future . All considered, a good quarter for Magna . With that, I'll hand it over to Vince to take you through the specifics . AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 3 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO Thank you, Swamy, and good morning, everyone . I'm going to start with a detailed review of the quarter . The second quarter of 2020 included the unprecedented industry - wide production suspensions due to the COVID - 19 pandemic, while the second quarter of this year included the production disruptions due to the ongoing global semiconductor chip shortage, making the quarters difficult to compare . Global vehicle production increased 58 % in the second quarter, driven by significant increases in North America and in Europe . On a Magna - weighted basis, light vehicle production increased 133 % in the second quarter of 2021 . Our consolidated sales were $ 9 billion, more than double the sales level in the second quarter of 2020 . Organic sales underperformed weighted production in the quarter . However, on a year - to - date basis, our organic sales growth is roughly in line with weighted production . As a result of the strong year - over - year sales growth, adjusted EBIT and EPS each improved dramatically from the second quarter of 2020 . Perhaps more informative comparison is reviewing sequential results . Comparing Q 2 ' 21 to Q 1 of this year, global light vehicle production was down 10 % , driven principally by North America and Europe and substantially due to the semiconductor shortage . This led to our sales being down 11 % sequentially . Each of our segments experienced sequential declines in sales with some segments impacted more than others . Our adjusted EBIT declined from $ 770 million in Q 1 ' 21 to $ 557 million in the second quarter, and EBIT margin fell from 7 . 6 % in the first quarter to 6 . 2 % in Q 2 of ' 21 . The reduced earnings on the $ 1 . 1 billion in lower sales effectively represented all of the net decline in adjusted EBIT and EBIT margin . There were a number of puts and takes quarter - over - quarter . We had higher commodity, new facility and launch costs, incremental labor costs in Mexico and higher net application costs in ADAS . These were essentially offset by favorable value - added tax settlement in Brazil, higher tooling contribution and a net settlement of customer claims in the first quarter of 2021 . We estimate that our decremental margin on the sequential decline in consolidated sales was about 19 % . Similarly, the decline in sales represented the most significant factor in the lower earnings for our segments . I'm now going to review our cash flows and investment activities . During the second quarter of 2021 , we generated $ 777 million in cash from operations before changes in working capital and invested $ 249 million in working capital . Investment activities amounted to $ 387 million, including $ 277 million in fixed assets, a $ 93 million increase in investments, other assets and intangibles . Free cash flow was $ 178 million in the second quarter . We used $ 99 million to repurchase shares, representing 1 million shares, and paid $ 127 million in dividends . Our adjusted debt to adjusted EBITDA stands at 1 . 29 , down from 1 , as said before, at the end of Q 1 and continuing the sequential quarterly improvement we have experienced in the second quarter of 2020 . And our liquidity remains strong at $ 6 . 9 billion at the end of the second quarter . Substantially as a result of the semiconductor chip charge, we have lowered our 2021 outlook compared to May . Our assumptions for light vehicle production for North America have been lowered by 1 . 2 million units or 8 % , about 500 , 000 units of the decline came through in the second quarter . For Europe, our production assumptions have been lowered by about 400 , 000 units, about half of which was experienced in the second quarter . We've also slightly increased our expectations for the Canadian dollar and the Chinese RMB and slightly lowered our expectations for the euro, in each case relative to the U . S . dollar . These currency changes have a negligible impact on sales and margin in our outlook . Mainly as a result of the lower light vehicle production caused by the semi shortage, we have reduced our sales ranges for all segments as well as consolidated sales . Our outlook for BES includes production of about $ 200 million -- a reduction of about $ 200 million as a result of the disposition of 3 German exterior facilities in early July, and our outlook for Seating sales has been impacted by ongoing negative program mix, the majority of which we experienced in the second quarter . Despite the roughly $ 2 billion decline in our consolidated sales range, we have only modestly reduced our adjusted EBIT margin range, down by 20 basis points to a range of 7 % to 7 . 4 % . We slightly reduced our equity income by $ 5 million at the top and bottom end of the range, also reflecting the lower assumed vehicle production . Interest expense has been lowered by $ 20 million to approximately $ 80 million . Net income attributable to Magna has been reduced, reflecting the lower sales and margin, partially offset by lower interest expense . And our tax rate and capital spending expectations are unchanged from our last outlook . And as Swamy indicated earlier, we have maintained our 2021 free cash flow expectations at $ 1 . 6 billion to $ 1 . 8 billion, despite the lower sales and earnings outlook . This mainly reflects a lower expected investment in working capital for the year . AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 4 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. 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In terms of segment margins, as a result of the lower 2021 segment sales outlook, we have reduced our full year margin ranges for Body Exteriors & Structures, Power & Vision and Seating . However, we have increased margins for complete vehicles largely due to a change in program mix relative to our previous expectations . In summary, we had solid performance for Q 2 in a challenging environment . Despite the volatile production schedules due to the chip shortage, we did a good job managing our costs and decremental margins, including execution on improved operational excellence and implemented restructuring actions . We generated free cash flow of $ 178 million, bringing our year - to - date amount to almost $ 600 million . We returned $ 226 million to shareholders through dividends and share repurchases, and we maintained our 2021 free cash flow expectations despite lowering our ' 21 outlook due to the ongoing semiconductor chip shortage . Just before we turn to Q&A, as Swamy mentioned earlier, we are evaluating our options and considering next steps with regards to Veoneer . We don't intend to answer questions about Qualcomm's bid or what the implications may be for Magna . We remain disciplined and committed to earning appropriate returns on our investments . Thanks for your attention this morning . We would be happy to answer your questions at this time . QUESTIONS AND ANSWERS Operator (Operator Instructions) Our first question is from the line of John Murphy with Bank of America, Merrill Lynch . Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst This is Aileen Smith on for John . I wanted to follow up first on the commentary around the decremental margins, specifically as it relates to the outlook in the second half of the year . I think you referenced 19 % in the second quarter . If we're looking at the front half of last year, that is incredibly pressured . I think, one, you put up a (inaudible) decremental in 2 Q, which was the worst of it is 22 % decremental . As you think about the cadence that you're looking towards in the second half of the year, how do you think about further containing decrementals, if that's possible at all, specifically with a commodities environment that's going to be less favorable? Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO Is your question related to further deterioration to volumes compared to our assumptions? Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst Not relative to your own assumptions, but internally, as you think about decrementals in the second half of the year, your own internal expectations, are there ways from a cost perspective that you could further try to contain the decrementals versus the relatively impressive performance that you've already put up in some pressure periods? Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO I think when you look at kind of the very first half of the year and as we think about the second half of the year, depending on where we are in the ranges, we're seeing that the margins should actually be doing a little better in the second half versus the first half, which implies decrementals being the same or a little better than what they were in the first half . And I would attribute that to a couple of things -- a bunch of moving pieces, but say, first of all, think about our Seating operations has been disproportionately hurt in the first half of the year as a result of product mix . I think we're going to continue to benefit as we look at the second half of the year some of the restructuring activities that we undertook last year . I mean we saw some benefit last year . We saw some benefit in the first half of the year . We continue to expect to see that benefit increasing as we move AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 5 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

on in the second half of ' 21 . But in terms of everything else, I think there's a lot of puts and takes, but generally, we're seeing some pretty good operational results across the organization . Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst Okay . That's helpful . And then I wanted to ask a bigger picture question around strategy and not specifically referencing Veoneer but sort of related to it . As we think about the outlook or, I guess, the thought process as we head into 2022 , whether or not the Veoneer acquisition ultimately goes the way you anticipate or not, but presuming it doesn't, how does that change in any way your focus from a strategic perspective around what technology do you think you may need access to, to accelerate the growth trajectory? Is there still a hyperfocus on ADAS, AV? Or separately, could you look at other areas within the portfolio, whether it's powertrain or electrification, and try to get more aggressive there? Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director This is Swamy . I think I would refer back to the strategy that we outlined during the April Investor Day, and we said accelerate our investments or focus on the megatrend areas, that remains and ADAS is one of them, right? And we also -- if you look into what we've said in the past, we have been investing in ADAS over the last number of years . We have the building blocks to address the requirements for ADAS, the sensor suite, the compute and the software . The acquisition that we talked about in one way would accelerate our position in ADAS, but we had the path and we will continue on that . On the electrification aspect, we talked today about the closing of the LG JV, which addresses some key building blocks as we talked about in e - machine and inverters . And we continue to make progress in the business of electrification . We are launching programs in our HASCO JV . We have had wins on primary and secondary trials . And there is one other program and various discussions that we'll be able to give color when the customers will allow us to do that . So the strategy remains, and we continue to make good progress . Operator Our next question is from Peter Sklar with BMO Capital Markets . Peter Sklar - BMO Capital Markets Equity Research - Analyst With the -- first, on the semiconductor shortage . So as these -- I particularly think as the GM trucks, I think, are going to be having more downtime over the next couple of weeks, I'm just wondering like how do your plans react to it? So I believe you have that plant near London, Ontario that does frames for GM truck . So like do you take the plants down and send the employees home? Or you reduce shifts? Or how does Magna react to this volatility that we're seeing in the production schedules for your primary platforms? Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director Peter, I think that's one of the plans, right? We have a lot of content in that platform . The semiconductor shortage, as you know, continues to be a dynamic situation and difficult to predict . There's a lot of start - stops in terms of volumes, in terms of changes in variants, in terms of the amount of releases . It's been difficult, but we have been able to continue to support our customers through this dynamic time right now . Regarding your question of how we manage, it's kind of a mix of all the above that you talked about . It's very difficult to have what I would call a playbook, right? I mean we are reacting to a very dynamic situation . As some of the volumes change and some of the lines have different run rates, we are going through that . Part of the restructuring, how we flex the times on different programs, even sharing between different facilities between COVID and semiconductor shortages and other things . So it's kind of a mix of all right now, Peter . AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 6 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Peter Sklar - BMO Capital Markets Equity Research - Analyst Okay . And then Swamy, my last question . I'm just wondering if you could elaborate a little bit more on the LG joint venture . When do you expect to be delivering products? Which customers you're targeting? And I know you'll be doing electric drives there, but there are other areas within Magna that we'll be doing electric drives . So is it that the LG joint venture is positioned more for Asian customers and won't be addressing the North American and European markets? I'm just wondering how you're carving up this e - powertrain market? Because you seem to have a number of areas of expertise that will be pursuing that product category . Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director Peter, I think from the electric drive systems perspective, Magna Powertrain remains the forefront . When we talk about the LG Magna JV, the recently closed transaction, it will be focused on supplying the e - machines and the inverters, right? So a little bit more color maybe from a North American and European customer perspective, Magna Powertrain remains the lead and the JV will be supplying the e - machine and the inverter . From an Asian customer perspective, the JV would take the lead -- or from the customer interface perspective, but Magna Powertrain would still be providing the expertise of the overall system . So the JV is really focused on supplying the e - machine and the inverter part of it . And we believe that's really advantageous as some of the OEMs look at doing the system integration themselves . So it allows us to look at the overall system plus, where necessary, to supply the addressable market of e - machines and inverters . Peter Sklar - BMO Capital Markets Equity Research - Analyst And what assets are there in the joint venture now? Has LG contributed like facilities that are up and running now? Or what is the status and what needs to be built? Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director So LG does have engineering and production facilities . They have in Korea, obviously, complemented by the footprint of Magna elsewhere . And they also have an engineering center, which -- or a development center that works on the e - machine and inverter piece of it . And we will continue to see where it makes sense to add as we get the additional programs . They currently have programs with OEMs I think, Louis, we talked about roughly about $ 150 million or so in 2019 ? Louis Tonelli - Magna International Inc . - VP of IR Correct . Correct . Yes . And they've also -- I mean we haven't talked a lot about the customers specifically other than the set that they have . The Chevy Volt for GM and the IPs for -- the Jaguar IPs, a business with OEM, but they have multiple customers beyond that . Operator Our next question is from Chris McNally with Evercore ISI . Christopher Patrick McNally - Evercore ISI Institutional Equities, Research Division - MD So two questions . One about production and one about decrementals and second half margins . So I guess the first, clearly, I think some of the pace of the second half cuts caught us by surprise in the second half and GM definitely indicated that in the second half versus first half comments earlier this week . Could you just maybe comment, in your 11 % now North American production outlook, do you think you fully incorporated sort of some of the down year - over - year comments that GM made on production? Or are some of those comments now to you as well? AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 7 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO Yes, Chris, it's Vince . As we look at overall production assumptions for the second half of the year, we started our internal forecasting process some time ago with a certain set of assumptions . We continue to refine our outlook based on the information that we're receiving from all of our customers . So I'd say that the outlook we've got today probably reflects what we had as production schedules in the last week, 1 . 5 weeks . It's pretty current . But, Chris, things are pretty volatile, as both Swamy and I have commented on, so things could get better, maybe it could get a little bit worse . I think we've got most of it caught in our overall forecast . I think -- hopefully, there's not much variance to that other than upside . Louis Tonelli - Magna International Inc . - VP of IR Good news is, of course, with the sales being strong and unconstrained, production gets pushed out, it gets pushed out . It all means strong a couple of years of production going forward . Christopher Patrick McNally - Evercore ISI Institutional Equities, Research Division - MD No, that's great . That's really helpful . And then maybe on the decrementals where they are actually pretty impressive . If I just do the guidance, it only looks like a 10 % cut from where the revenue was cut . What I think is somewhat surprising is the second half margins implied in the guidance actually assume like a 50 basis point improvement second half over first half, roughly $ 100 million greater EBIT second half over the first half . I was just wondering if -- we don't have to get specific into percentages on decrementals . But when we look at something like body, where we had a pretty big drawdown in Q 2 , 190 basis points lower than Q 1 , I'm assuming it's back up into the 8 % , 8 . 5 % range in the second half, even though revenue is not that strong . Could you just maybe talk about body because it's such a big driver and obviously had the most exposure to the D 3 where production could be the weakest in the second half? Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO That question is something that is impacting particularly in our Body Exteriors & Structures group second half margins . So remember, we talked about disposing of 3 German facilities . We said that's added to margin in the second half versus first half . The business, we probably had about a couple of hundred million dollars of sales in the first half . But these divisions -- these plants generated losses . So if you think about the second half, sales are lower as a result of not consolidating these 3 facilities and profits are higher as we don't have the losses . So that's going to be incremental . The other incremental in BES as well as most of the other groups is restructuring activities that we started last year . Now we talked about, about a $ 200 million benefit from overall restructuring that we've realized by the time we got into ' 22 . We recognized about 25 % of that benefit in 2021 . We're going to recognize -- expect about half of that $ 200 million in 2021 and the balance in 2022 . So if you look at that $ 100 million, we're probably about half away there in the first half . So that continues in the second half, and then we get an incremental benefit from continuing restructuring . So that's going to help the overall margins . And BES is certainly going to be a beneficiary of those activities as well . Louis Tonelli - Magna International Inc . - VP of IR And in Seating, if you look at Magna Seating as well, I think a pretty tough first half, the expectation is, based on production, that it looks better in the second half, so sales are stronger and margin is stronger . Christopher Patrick McNally - Evercore ISI Institutional Equities, Research Division - MD That's great . And so Vince, I was actually fully putting in the benefit of disposal of the 3 German facilities . That's obviously something that's in your ' 23 guide . And obviously, that's something that's going to help ' 22 as well as that annualize in next year . AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 8 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO Yes . Well, Chris, we've been focusing on these divisions for some time, but they have not been contributing to bottom line . And when you look on an annualized basis, it's probably about $ 350 million in sales, to put that into perspective . Chris, as we hit 2023 , we're going to have to redo our entire outlook, volumes, we're going to change it, new program or so on . So -- but if you look at this alone, I'm assuming this will be better for overall margins going out to ' 23 . Operator (Operator Instructions) Our next question is from Brian Johnson from Barclays . Brian Arthur Johnson - Barclays Bank PLC, Research Division - MD & Senior Equity Analyst Just want to talk a little bit about the complete vehicle business, which was still very hot in -- as investors are focused on all of these start - ups coming out . I think two questions . Can you give us a sense, obviously, without going into confidential details, on the discussion pipeline for that? Just kind of -- I don't know if you have a formal pipeline, but kind of something around what could be coming? And then second, since there is a lot of interest, we heard [Cisco] sounding very confident last night, for example . In your capabilities there, how you would think about the breakpoint, because it is a very chunky business, of opening up a new facility to handle additional EV builds? Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director Brian, I think in terms of the discussions, we have said in the past, we obviously continue to have strategic discussions with customers that are in production today, various discussions on that topic, plus the new entrants, as you talked about or the existing customers that are looking at variants and so on . So it's a mix of all of this that we are constantly looking at . And when we talked -- if you look at the capacity that we have in place in Graz and Hoce in Europe, and then we have the footprint in China -- Louis, you can be more specific -- but somewhere in the range of 200 , 000 units in our Hoce facility -- or Hoce and Graz, and about similar, 180 , 000 to 200 , 000 , in China . So we have the footprint that we continue to look at . We have the flexibility to figure out variance and how we go through the manufacturing process . And I think we continue to say we remain open to the footprint in North America, given the right business case viability . But more importantly, even if we start somewhere, if there is a good visibility in the road map, I think that's what's going to trigger the decision for us . Brian Arthur Johnson - Barclays Bank PLC, Research Division - MD & Senior Equity Analyst Okay . So you would be open to it, but you'd have to have confidence, obviously, in the volume estimates . Just a follow - on . ICON RADAR, could you elaborate a bit more on that product line? In particular, how much is developed within Magna? And how much is using some of the radar products, a few start - ups that's active and for the radar out on the market? Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director So this development goes back a few years, and we've been talking about it and our thought process going through this or the rationale going through it was, as we have more proliferation of radars, we have to look at some key attributes like interference mitigation, look at higher resolution . And if you look at the -- some key factors like object detection, like it should be able to look at a tire on the road at 75 meters, for example ; or look at some objects operation, a pedestrian walking next to a guardrail at about 75 meters or so or maybe even likely more ; to detect a vehicle greater than 300 meters, pedestrian at 150 meters . AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 9 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

So we thought these were all important things, and that's why we worked with the start - up and our partner, Uhnder . They're looking at the silicon side of things, and we continue to look at the, call it, the overall integration of the system, the software for a feature functionality . So at a system level, Brian, we will be -- Magna would be looking at it and working and interfacing with the customers . And at the silicon level, call it, really the 4 D imaging chip will be done by Uhnder . Operator Our next question is from the line of Dan Levy with Crédit Suisse . Dan Meir Levy - Crédit Suisse AG, Research Division - Director & Senior Equity Research Analyst I wanted to dig in on the margin in the quarter . Maybe you can help decompose a little bit . Just a couple of pieces on this . First, how much was mix as a contributor to the result in the quarter because I think we actually saw GM's truck program holds up well in the second quarter, and we know that's your largest program . And on the flip side, maybe you could talk to how much of the margin was break down from supply chain pressures or labor inefficiencies on start/stop production or cost inflation as opposed to just pure lost volume . So if you could just decompose the quarter - - the margin in the quarter a little bit, it would be great . Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO Sure, Dan . Let me try to decompose it a little bit for you . So as I said on a consolidated basis, there were some puts and takes, higher commodity costs and additional costs for new facilities and watch cost for new programs . The Mexican labor law change was a negative in the quarter compared to Q 1 , and these are all compared to Q 1 , by the way . And we certainly benefited from additional tooling contribution . I did talk about the Brazilian value - added tax settlement . And then in Q 1 , we had a customer settlement that hurt margins . So that reversed in Q 2 . But all of that, that I just talked a bit nets to 0 . But when you look at the various segments, it's a little bit different story . I think it stands out to me how accurate is the biggest setback certainly is a reduction in volumes, and I attribute that all to the semiconductor situation . And how much of that is inefficient labor by starting and stopping and what this does to overhead . It's a real challenge to try to measure that . But I can tell you, when I look at our Seating business, I think they've been disproportionately hurt from a sales and a margin perspective . And that's because when you look at some of the larger programs, the volumes just have not been close to what the markets performed at . I think when you look at some of the others . I look at our Body Exteriors & Structures group, I think the biggest negative quarter - to - quarter was higher commodity costs . And that comes primarily in the form of resin with a little bit of steel, but primarily resin . And in that one group, again, they're launching a bunch of new business . So that was a quarter - over - quarter a drag on margins . Other than that, I think it is a pretty clean quarter, and we would have had a different discussion if we didn't have a reduction in volumes . It would be pretty straightforward to talk about the quarter, but that's kind of what I see when I look at our business . Louis Tonelli - Magna International Inc . - VP of IR And then looking at mix a little bit, Dan, relative to North American production growth and European production growth, our top 30 programs did underperform . And you're right . You picked up GM's -- the impact of the GM trucks . But pricing in the event, in the big program, it was actually pretty significantly down in the quarter and a few others like that as well, so up for the -- North America did underperform and like I said, in Europe as well . So -- and it is not in every quarter, but in this quarter, it did have an impact . So overall, I'd say it was negative . Dan Meir Levy - Crédit Suisse AG, Research Division - Director & Senior Equity Research Analyst Great . And then just to clarify, commodity costs in the year, did you give an update on that? AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 10 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO We talked about I guess in Q 1 , we gave some guidance on commodity costs . And as we look from where we were at the beginning of the year to now, there's been a little easing of commodity costs, probably a benefit of about $ 25 million to $ 30 million versus higher expectations, but year - over - year still negative . And that benefit, which was primarily as a result of resin pricing coming down a little bit, it's still higher than our levels of 2020 . Dan Meir Levy - Crédit Suisse AG, Research Division - Director & Senior Equity Research Analyst Great . And then the second question, if we could just zoom out a little bit and look at Seating . It's been -- that segment has underperformed the other segments a bit . And I know that a large piece of it more recently has been on the volume side . But maybe you could just give a sense on how Seating is positioned today versus where it's been historically . Are you still trying to gain additional share? Are you onboarding new customers to views on vertical integration there? Just a bit of a zoom out on where Seating stands today would be helpful, please . Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO Yes . Maybe I'll start with the numbers, Swamy, and maybe you can then talk about overall strategy . You'll recall in a year or a couple of years ago, we talked about getting some new business with a European customer where it wasn't all about the volume, it was just on time and that was going to depress margins, not necessarily impact returns on capital but margins . So we were anticipating that . And we talked about that as we look at successor programs . We're expecting that our content is going to increase . So our margins should expand . That's all kind of in line . The growth, as we outlined in our Investor Day or beginning of the year call, for Seating it was still good and above market . But as I look at ' 21 , at least for the first half of the year, it had been substantially underperforming on the revenue side compared to our other segments . They also have launch costs . They're launching some new business . So longer term, when I look at this business here and look at overall margins, I expect margins to continue to expand . And just to remind you, when we talked about growth in this business back at the beginning of the year, between ' 21 and ' 23 , we're expecting growth of kind of 6 % to 13 % on average per year and think about the market at that point in time on a weighted basis is growing 6 % . So there's clearly some outperformance on the sales side there, which should help overall profitability . Swamy, maybe just talk about kind of where the group fits . Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director Yes . If you just look at it as -- I would say Seating is a really good business . And we're deliberate in looking at the programs and how we bring value to the table . And just looking at the overall picture of the vehicle and with our business and how we are addressing the new entrants, I think overall, it fits very well . And I also talked about the business segment that is kind of agnostic to the megatrends . It doesn't mean that there's going to be no product evolution . Of course, there is going to be . But as the vehicles continue, we are going to have seats, right? So looking at the baseline where we are and how we continue to grow faster than the market, I would say it remains an integral part of our strategy, and I think we feel good about it . Operator Our next question is from Mark Delaney with Goldman Sachs . AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 11 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Mark Trevor Delaney - Goldman Sachs Group, Inc . , Research Division - Equity Analyst First question was to better understand what you're assuming with regards to your second half revenue outlook . If I look at the midpoint of the adjusted revenue guidance, I believe it implies a slight year - over - year decline in revenue this year versus last year . So maybe you could talk a bit more around what assumptions are going into that, both in terms of any content per vehicle benefit you may get in terms of outgrowth, and then what you may be assuming in terms of any headwinds in terms of potentially OEMs having partially both vehicles and you're potentially assuming some work - down of some of those partially built vehicles within your revenue outlook . Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO Let me try to give you some color there . I think when you look at kind of first half sales, we're about $ 19 . 2 billion consolidated . Our implied range for the second half is $ 18 . 8 billion to $ 20 . 3 billion . So the midpoint showed a slight increase in sales second half versus first half . When we look at overall content, and you made some comments about how we've been growing relative to the market, and we're a little faster than the market, which would imply content per vehicle growth in the first quarter, a little bit behind in the second quarter . But for the full year, we're expecting to be kind of in line or maybe a little bit positive . So I'd say content per vehicle year - over - year really not much of a change, which is what we assumed at the beginning of the year . And as we get out to ' 22 and ' 23 , we start to see our content per vehicle growth over market accelerating . Louis Tonelli - Magna International Inc . - VP of IR And if you look at production last year in the second half, in North America, it was 8 million units . We're implying about 7 . 4 million for this year's second half . I think if you look at last year's, Europe, it was like 9 . 6 million and where that were at 8 . 8 million, so still a very significant year - over - year decline in H 2 . Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO Yes . But I guess, Mark, I kind of look at -- I'm disappointed with the semiconductor situation and how it's impacting our industry, but more importantly, how it's impacting Magna . But as I think about what's going to happen next year, I mean sales are still strong . Inventory level -- sales -- our customer sales are so strong . Inventories are low, very low, at historic lows . Interest rates are still at very good levels . So as I look into ' 22 and even beyond that, I think we're going to see some tailwinds are going to benefit us a portion of this year but certainly next year . Mark Trevor Delaney - Goldman Sachs Group, Inc . , Research Division - Equity Analyst That's helpful . And my follow - up question was on that same topic . And could you go into some more depth about what you're hearing from your own semiconductor suppliers in terms of how the back half of the year may shape up? What sort of linearity are you expecting in terms of improved chip supply? And when potentially the SFI demand situation may ease? Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director Mark, this is Swamy . I think the semiconductor situation, I would say, is still dynamic, and we have task forces kind of looking at every program working with the customers as well as the chip suppliers . We took the best forecast that we could, and it's kind of a very dynamic situation on a daily basis to look at it . We've been fortunate to continue to support our customers . We didn't stop any customer because of the shortage from our side . But it's really industry - wide . So if you look at it, there seems to be a path in the next 3 , 4 months but we thought so last quarter . We got to continue to monitor this situation . AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 12 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

We kind of start seeing a little bit of relief towards the end of the year . So that's -- it's very difficult to give a definite answer to how it works out . We already saw the production down by about 1 . 2 million and 400 , 000 units in North America and Europe, respectively . So we've got to kind of wait and watch . Operator Our next question is from Michael Glen with Raymond James . Michael W . Glen - Raymond James Ltd . , Research Division - Equity Research Analyst First question . So when you're seeing the OEMs introduce EV variants like full battery electric variants on existing platforms that you're that you're providing content on, can you just discuss like how does your content vary on those EV variants versus what you are producing now? Are you indeed seeing an increase? Or is it -- does it stay relatively stable? Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director Michael, sorry . I think if you just kind of look at it, there are some EV variants that are in the platform where we have an EV variant plus a normal, call it, propulsion system . When it's in hybrid, we are talking about the hybrid DCTs or some variant of a DCT which gives them CO 2 reductions . But when you're talking about full batt, let's say, if you had an all - wheel drive, 4 - wheel drive system, we would be now addressing that with a primary or a secondary eDrive . So from a content per vehicle perspective, if you're replacing an all - wheel drive, 4 - wheel drive, it's higher with the eDrive . If you're looking at just a front - wheel drive system, which was not an addressable market, is now becoming an addressable market for us . So I would say that it's total addressable market perspective as the EV variance come is significantly higher for Magna . And if it is a replacement of an all - wheel drive, 4 - wheel drive with a primary and a secondary drive, with all the feature functionality of connected powertrains and top battery and so on, then the content per vehicle would be higher there too . And we talked about eBeam as one technology where we believe that OEMs will have a chance to get an EV variant without having to significantly change their existing platform . So overall, if you sum it up, with EV variants increasing, our addressable market and content per vehicle that we can address would be higher . Michael W . Glen - Raymond James Ltd . , Research Division - Equity Research Analyst Okay . Perfect . And then ... Louis Tonelli - Magna International Inc . - VP of IR Sorry, Michael, I was just going to add, you may not see it all in our sales because there'll be an element that's in -- like LG, that's unconsolidated . But we're going to keep track of that and provide some color on those so you can see the incremental sales that don't flow through our P&L . Michael W . Glen - Raymond James Ltd . , Research Division - Equity Research Analyst Okay . Perfect . And then just a capital allocation question . I mean just when we look at the Veoneer transaction, and I hear you make the comment during the opening remarks about Magna being focused on generating appropriate returns on capital . So when you look at the amount of capital that was going that could potentially go towards Veoneer, how do you assess that return on capital versus, say, allocating such an amount to a substantial issuer bid for the stock? AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 13 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Vincent Joseph Galifi - Magna International Inc . - Executive VP & CFO I go back to kind of what I've been talking about 3 years -- Swamy said I've been talking about it more recently, just kind of overall philosophy . And if you look at where Magna is in more than these 3 year and where it's growing and the position we hold and our unique capabilities, for the right opportunities, if we're investing in the business, we're creating for the right returns . Obviously, we're creating value, and I call it sustainable value because it's just going to -- it's kind of each and every year, we're generating value . And that's our preferred course of action . And to the extent that we have excess liquidity after we're paying dividends to buy back stock, and if I look at the buyback of stock, you're paying it somewhat to reduce your share count and return capital to shareholders . But that value doesn't continue to grow . So our preference and our approach and our strategy is to stay focused on our overall product strategy, continue to fill the gaps or complement what we do and invest in the business . But we're going to be prudent about that . And if it doesn't fit our strategy or it doesn't meet our returns and we have excess liquidity, then we return it back to shareholders . We've been doing that for years, and I don't see that changing at all at Magna . Operator And this is all the time we have for questions . Mr . Kotagiri, I'll turn the call back to you for closing remarks . Seetarama Swamy Kotagiri - Magna International Inc . - CEO, President & Director Thank you . Thanks, everyone, for listening in . Despite ongoing semiconductor - related production challenges, we had a good quarter, a solid quarter . Despite the short - term impact, we are encouraged by the mid - and long - term auto environment . And we remain focused on executing our plans and delivering solid results . Thanks again . Enjoy the rest of your day . Operator And that does conclude the conference call for today . We thank you all for your participation and kindly ask that you please disconnect your lines . Have a great day, everyone . DISCLAIMER Refinitiv reserves the right to make changes to documents, content, or other information on this web site without obligation to notify any person of such changes . In the conference calls upon which Event Transcripts are based, companies may make projections or other forward - looking statements regarding a variety of items . Such forward - looking statements are based upon current expectations and involve risks and uncertainties . Actual results may differ materially from those stated in any forward - looking statement based on a number of important factors and risks, which are more specifically identified in the companies' most recent SEC filings . Although the companies may indicate and believe that the assumptions underlying the forward - looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward - looking statements will be realized . THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS . IN NO WAY DOES REFINITIV OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY EVENT TRANSCRIPT . USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS . © 2021 , Refinitiv . All Rights Reserved . AUGUST 06, 2021 / 11:00AM, MG.TO - Q2 2021 Magna International Inc Earnings Call 14 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us ©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.