Magna International Inc Q3 2021 Earnings Call Transcript

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

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : First, I wanted to ask you about -- just to go back and review your comments about vehicle electrification and the anticipated revenue stream for Magna. I think you said $2 billion of revenues by 2023 and $4 billion by 2027. I just wanted to ask if you could review the major product areas that are going to comprise that revenue?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And I'm trying to recall how many e-drive awards have you announced so far? I think -- is it 3 programs you've announced so far?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And then just a couple of other detailed questions. On the $45 million reserve for Evergrande, is that -- is that mean the receivable is fully reserved? Or is it possible that there could be further reserves down the road?

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And then lastly, the $41 million of funding that you provided to the to the purchaser of the exterior plants. Is that -- like is that a loan? Like does Magna anticipate recovery of that $41 million.

Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst : Okay. And if I may just ask one more question. You've highlighted the -- on the seating, the FREEFORM technology. I'm not quite familiar with that technology. I'm wondering if you could just elaborate a little bit what the technology is?

Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst : First off, congratulations, Vince, Pat and, congrats as well. Maybe just first on inflationary pressures. I am thinking correct that you're covered on your materials, ex-resins, maybe just curious on freight?

Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst : Sure. Just on like the inflationary pressures. Is my thinking correct you're largely covered on your materials ex-resin? And then I'm just curious with freight costs, if you need to absorb that if there's recourse? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2021 / 12:00PM, MG.TO - Q3 2021 Magna International Inc Earnings Call

Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst : Okay. Just in terms of labor, just curious how you're managing it now? I presume there's not a lot of flex you can do. And then in terms of these inefficiency costs of that caused by the change in the production schedules, is there any recourse there that you could take for your customers?

Question: Mark Neville - Scotiabank Global Banking and Markets, Research Division - Analyst : Great. Maybe just one last question. Just on the NCIB, since you renewed it. I presume in the near term, don't plan to be too active, but maybe I'm wrong, but just thoughts on the NCIB sort of in this environment?