Financial Overview

(in million dollars)

	FY2009	FY2008	Rate of change (%)	Factors
Overall
Sales	17,367	23,704	(26.7)	-
Operating Income	(511)	328	-	-
External Production Sales
North America	7,515	10,938	(31.3)	1)
Europe	5,857	7,089	(17.4)	2)
Rest of World	676	515	31.3	3)

Factors
1)
-This decrease in production sales reflects a 32% decrease in North American vehicle production volumes partially offset by a 1% increase in its North American average dollar content per vehicle.

-The Company's average dollar content per vehicle grew by 1% or $5 to $872 for 2009 compared to $867 for 2008, primarily as a result of:

the launch of new programs during or subsequent to 2008, including the: -Ford F-Series and Lincoln Mark LT -Chevrolet Traverse -Chevrolet Equinox and GMC Terrain -Chevrolet Camaro

favourable production (relative to industry volumes) and/or increased content on certain programs, including the: -Ford Escape, Mercury Mariner and Mazda Tribute -Ford Fusion, Mercury Milan and Lincoln MKZ

acquisitions completed during or subsequent to 2008, including: -a substantial portion of Plastech Engineered Products Inc.'s exteriors business ("Plastech") -Meridian -a stamping and sub-assembly facility in Alabama from Ogihara America Corporation ("Ogihara")

takeover business that launched during or subsequent to 2008

-These factors were partially offset by:

unfavourable production (relative to industry volumes) and/or lower content on certain programs, including the: -Chevrolet Cobalt -Dodge Grand Caravan, Chrysler Town & Country and Volkswagen Routan -Chrysler 300 and 300C and Dodge Charger -Buick Enclave and GMC Acadia

programs that ended production during or subsequent to 2008, including the: -Saturn Vue, Aura and Outlook -Chevrolet Trailblazer and GMC Envoy -Pontiac G5, G6, Solstice, Sky and GT

a decrease in reported U.S. dollar sales due to the weakening of the Canadian dollar against the U.S. dollar

customer price concessions during or subsequent to 2008

2)
-This decrease in production sales reflects a 19% decrease in European vehicle production volumes partially offset by a 2% increase in its European average dollar content per vehicle.

-The Company's average dollar content per vehicle increased by 2% or $9 to $495 for the year ended 2009 compared to $486 for the year ended 2008, primarily as a result of:

the launch of new programs during or subsequent to 2008, including the: -Audi Q5 -Volkswagen Golf -Porsche Panamera -Opel/Vauxhall Insignia -BMW One/Cooper Convertible -Audi A5 Cabrio and Sportback

acquisitions completed during or subsequent to 2008, including Cadence

-These factors were partially offset by:

unfavourable production (relative to industry volumes) and/or lower content on certain programs, including the: -Mercedes-Benz C-Class -Porsche Cayenne and Volkswagen Touareg -Volkswagen Transporter -BMW X3 -Ford Transit -Opel/Vauxhall Vivaro, Nissan Primastar and Renault Trafic -Opel Astra -Audi Q7 -Honda Civic

a decrease in reported U.S. dollar sales due to the weakening of the euro and British pound, each against the U.S. dollar

the sale of certain facilities during or subsequent to 2008

customer price concessions during or subsequent to 2008

3)
-External production sales in Rest of World increased 31% or $161 million to $676 million for 2009 compared to $515 million for 2008, primarily as a result of:

increased production and/or content on certain programs in China and Brazil

the launch of new programs during or subsequent to 2008 in China and Japan

an increase in reported U.S. dollar sales as a result of the strengthening of the Chinese Renminbi against the U.S. dollar

-These factors were partially offset by:

a decrease in reported U.S. dollar sales as a result of the weakening of the Brazilian real, Korean Won and South African Rand, each against the U.S. dollar

decreased production and/or content on certain programs, particularly in South Africa

Contracts

-Followings are major contracts from a press release in 2009.

Maker/ Model	Products
Ford Flex	Seat
Audi A4	Carpet
Audi A4 Cabriolet	Panel assembly, Inner door panel
Daimler Mercedes-Benz SLS AMG	Aluminium body, Gullwing door, Hood, Deck lid
GM	Frame assembly
Nissan 370Z Roadster	Soft-top convertible system

Joint Ventures

-Magna Powertrain AG of Austria and WIA of Korea will establish a 50-50 joint-venture company in Asan, Chungcheongnam-Do, Korea to produce and supply electronic couplings for use in all-wheel-drive (AWD) vehicles. The new company, WIA Magna Powertrain, is capitalized at 11 million US dollars. Construction of the plant will begin in March 2009. The joint venture, which targets launching commercial operations in 2010, expects its production capacity to reach 600,000 sets in the initial year of operations. (From a press release on Jan. 24, 2009)

-Magna Electronics and Semikron of Germany announced the formation of a 50/50 joint venture to produce power electronics for electric and hybrid vehicle applications. (From a press release on Jun 22, 2009)

-Magna Seating and Krishna Group announced the formation of a 50/50 joint venture in India to produce seating systems and seat mechanisms for automakers operating within the Pune region. The joint venture, called MSKH Seating Systems marks the initial entry of Magna Seating into India, aims to start production within the next 12 months. (From a press release on Aug 7, 2009)

Acquisitions

-Decoma International announced that it has entered into an agreement to acquire Cadence Innovation s.r.o. ("Cadence Europe"). The European subsidiary of Cadence Innovation supplies automotive interior and exterior plastic components and systems such as bumpers, instrument panels, radiator grills and door panels. The company reported sales of approximately 369 million USD in 2007. It maintains four production sites: three in the Czech Republic and a joint-venture facility in Hungary. (From a press release on Feb. 10, 2009)

R&D Facilities

-In 2009, the Company formed an alliance with the National Research Council of Canada (NRC) to create the Magna-NRC Composite Centre of Excellence. The Centre will focus on research and development in the area of thermoplastic composites, which are stronger and lighter than traditional plastic components. The Magna-NRC Composite Centre of Excellence scheduled to open in summer 2010.

Technological Alliance

-The Company announced that it will make a full entry into the electric vehicle business. It plans to develop an EV jointly with Ford Motor Co., U.S.A., to be released in 2011. The Company will supply Ford with major components of the powertrain and the battery modules including motors. Based on such experiences, it plans to enhance sales of components for the next-generation environment-responsive vehicles, of which new needs are well expected. (From an article in the Nikkan Jidosha Shimbun on Jan. 17, 2009)

-Magna Electronics, an operating unit of Magna International, and BRUSA Elektronik AG of Switzerland announced their collaboration in developing components and systems for electric and hybrid vehicles. BRUSA develops and manufactures power electronics and electric motors for electrical vehicles. (From a press release on Mar. 4, 2009)

Capital Expenditure

(in million dollars)

	FY2009	FY2008	FY2007
Overall	629	739	741