Magna International Inc to Acquire Veoneer Inc Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. Swamy, if I look at the map that you provided in the presentation showing where the capabilities of the 2 companies are, like there's a lot of complementary overlap, like particularly as I look at the chart in camera systems and radars and domain controllers. So could you provide maybe some specific examples or in some of the more important areas, how this is complementary to Magna rather than redundant to your current capabilities? Because this is a product profile where already Magna was very -- had progressed well down the road. So if you could just maybe pull a couple of examples to explain that.

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And Vince, can you talk a little bit about how Magna assessed valuation? I think this is the first time I can recall where you've bought a company that isn't currently generating EBITDA, though it sounds like you expect it to be accretive within a couple of years. So how -- like how does Magna satisfy itself on what an appropriate valuation is to pay for the company?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And then just lastly, given that the acquisition will just nudge your -- nudge you above the target, kind of the target capitalization ratio for the company of 1.5, can you talk -- just talk a little bit, should we expect you to slow down a little bit on the NCIB until you get back within the range? Or do you have the cash flow both for the NCIB and to bring you back within the target range of 1 to 1.5?