Magna International Inc. - OMEGA

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ANNUAL INFORMATION FORM TABLE OF CONTENTS PAGE ITEM 1. CORPORATE STRUCTURE .............................................................................3 ITEM 2. GENERAL DEVELOPMENT OF THE BUSINESS ...........................................................3 ITEM 3. DESCRIPTION OF THE BUSINESS ......................................................................13 ITEM 4. SELECTED CONSOLIDATED FINANCIAL DATA ........................................................29 ITEM 5. MANAGEMENT’S DISCUSSION AND ANALYSIS .......................................................31 ITEM 6. MARKET FOR SECURITIES ...........................................................................31 ITEM 7. DIRECTORS AND OFFICERS ..........................................................................32 ITEM 8. CORPORATE CONSTITUTION .........................................................................34 ITEM 9. ADDITIONAL INFORMATION ........................................................................36 In this Annual Information Form, when we use the terms “we”, “us”, “our”, “Company” and “Magna”, we are referring to Magna International Inc. and its subsidiaries and jointly controlled entities, unless the context otherwise requires. All references in this Annual Information Form to calendar years are references to our financial or fiscal years ending after December 31, 1998 and all references to fiscal years are references to financial or fiscal years ending on July 31 of the year named. All references to “$” or “dollars” are references to U.S. dollars unless otherwise specified. Forward-Looking Statements The contents of this Annual Information Form contain statements which, to the extent that they are not recitations of historical fact, constitute “forward-looking statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or economic performance, or the assumptions underlying any of the foregoing. In this Annual Information Form, we use words such as “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “project” , “estimate” and similar expressions to identify forward-looking statements. Any such forward-looking statements 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. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties. These risks, assumptions and uncertainties include, but are not limited to: • global economic conditions; • fluctuations in relative currency values; • pressure from customers to reduce our prices; • unionization activity; • pressure from customers to absorb certain fixed costs; • threat of work stoppages; • increased product warranty and product liability risk; • competitive auto parts supply market; • dependence on outsourcing by automobile manufacturers; • delays in launching new programs; • rapid technological and regulatory changes; • delays in constructing new facilities; • unstable crude oil and energy prices; • changes in governmental regulations; and • dependence on certain vehicle product lines; • impact of environmental regulations. In evaluating any forward-looking statements in this Annual Information Form, you should specifically consider the various factors, including those contained under the heading “ITEM 3. DESCRIPTION OF THE BUSINESS — RISK FACTORS”, which could cause actual events or results to differ materially from those indicated by our forward-looking statements. We do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements contained in this Annual Information Form to reflect subsequent information, events or circumstances or otherwise. 2
ITEM 1. CORPORATE STRUCTURE ISSUER We were incorporated under the laws of the Province of Ontario, Canada on November 16, 1961. Our charter documents currently consist of restated articles of incorporation dated July 25, 2001, which were issued pursuant to the Business Corporations Act (Ontario). SUBSIDIARIES A list of our principal subsidiaries as at December 29, 2001 and their respective jurisdictions of incorporation is set forth on Schedule A. Our legal structure (including that of our subsidiaries) is not necessarily indicative of our operational structure. ITEM 2. GENERAL DEVELOPMENT OF THE BUSINESS Our operations consist of: OVERVIEW • automotive operations conducted through five automotive systems groups, further segmented between public and wholly-owned automotive systems groups as well as corporate and other operations; and • non-automotive operations conducted through Magna Entertainment Corp. Automotive Operations We are one of the most diversified automotive suppliers in the world. We design, engineer and manufacture a complete range of automotive components, assemblies, modules and systems, and engineer and assemble complete vehicles. Our products and services are sold primarily to manufacturers of cars and light trucks in North America, Europe, South America and Asia. As at December 31, 2001, we employed approximately 64,000 automotive employees and operated 173 automotive manufacturing facilities (including 6 joint venture facilities), of which 106 are in North America, 62 are in Europe, two are in Korea, two are in Brazil and one is in China, as well as 43 product development/engineering facilities in 19 countries. Our manufacturing, product development and engineering facilities are organized as autonomous operating divisions under one of five automotive systems groups, three of which are public companies in which we retain a significant equity stake and two of which are wholly-owned. We completed the formation of these five automotive systems groups in 2001 (see “- RECENT DEVELOPMENTS IN OUR BUSINESS - Creation of Global Automotive Systems Groups”). Public Automotive Systems Groups • Decoma International Inc. - Decoma designs, engineers and manufactures a variety of automotive exterior components and systems, including front and rear end fascia components and modules (including exterior lighting), exterior trim components and systems, plastic body panels and greenhouse and sealing systems. Decoma operates 41 manufacturing, engineering and product development facilities in North America, Europe and Asia. • Intier Automotive Inc. - Intier is a global full service supplier and integrator of automotive interior systems, including seating, cockpit, sidewall, overhead and floor, acoustic and cargo management systems, as well as closure and latching systems, including latching and glass moving systems, power sliding doors and liftgates and door modules. It directly supplies most of the major automobile manufacturers in the world through 64 manufacturing facilities (including one joint venture facility with Magna Steyr) and 19 product development, engineering and testing centers (including one joint venture facility with Magna Steyr) in North America, Europe, South America and Asia. • Tesma International Inc. - Tesma is a global supplier of highly-engineered engine, transmission and fueling systems and modules for the automotive industry. Tesma operates 22 manufacturing facilities and two research centres in North America, Europe and Asia. 3
Page 1: Magna International Inc. Annual Inf
Page 5 and 6: RECENT TRENDS IN THE AUTOMOTIVE IND
Page 7 and 8: them. As Tier 1 suppliers have succ
Page 9 and 10: OUR NON-AUTOMOTIVE BUSINESS STRATEG
Page 11 and 12: key vehicle area. At the same time,
Page 13 and 14: in March 2002, MEC entered into an
Page 15 and 16: Logistics Group, L.L.C. owns the re
Page 17 and 18: Tesma employs a wide variety of dif
Page 19 and 20: Technologies employed by Cosma incl
Page 21 and 22: HUMAN RESOURCES As at December 31,
Page 23 and 24: The basis on which automobile manuf
Page 25 and 26: One of Intier’s customers is requ
Page 27 and 28: We are dependent on outsourcing by
Page 29 and 30: Delays in program launches or delay
Page 31 and 32: DIVIDENDS Holders of our Class A Su
Page 33 and 34: management positions, including as
Page 35 and 36: and executive management do not par
Page 37 and 38: - our financial statements as at an
Page 39 and 40: Bestop, Inc. 60% (1) - Delaware Vot
Page 41: Mountain Laurel Racing, Inc. 100% -

Magna International Inc. - OMEGA

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