(MGA) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Q2 2023 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded, Friday, August 4, 2023.

您好，歡迎參加 2023 年第二季度業績電話會議。 （操作員說明）謹此提醒，本次會議將於 2023 年 8 月 4 日星期五進行錄製。

I would now like to turn the conference over to Louis Tonelli, Vice President, Investor Relations. Please go ahead.

現在我想將會議交給投資者關係副總裁路易斯·託內利 (Louis Tonelli)。請繼續。

Thanks, Rita. Hello, everyone, and welcome to our conference call covering our second quarter 2023. Joining me today are Swamy Kotagiri and Pat McCann. Yesterday, our Board of Directors met and approved our financial results for the second quarter of '23 as well as our '23 outlook -- our updated '23 outlook. 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.

謝謝，麗塔。大家好，歡迎參加我們關於 2023 年第二季度的電話會議。今天加入我的是 Swamy Kotagiri 和 Pat McCann。昨天，我們的董事會召開會議並批准了我們 23 年第二季度的財務業績以及我們的 23 前景——我們更新的 23 前景。我們今天早上發布了一份新聞稿，概述了我們的結果。您可以在我們網站 Magna.com 的投資者關係部分找到新聞稿、今天的電話會議網絡廣播、電話會議的幻燈片演示以及更新的季度財務回顧。

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. Please also refer to our reminder slide included in the presentation that relates to our commentary today.

在我們開始之前，提醒一下，今天的討論可能包含適用證券立法含​​義內的前瞻性信息或前瞻性陳述。此類陳述涉及某些風險、假設和不確定性，可能導致公司的實際或未來結果和業績與這些陳述中明示或暗示的結果和業績存在重大差異。請參閱今天的新聞稿，了解我們安全港免責聲明的完整說明。另請參閱演示文稿中與我們今天的評論相關的提醒幻燈片。

And with that, I'll pass it over to Swamy.

接下來，我會將其交給 Swamy。

Thank you, Louis. Good morning, everyone. I appreciate you joining our call today, and I'm happy to kick off today's call with an update on our progress. And following a financial update from Pat, I look forward to answering your questions.

謝謝你，路易斯。大家，早安。感謝您今天加入我們的電話會議，我很高興以更新我們的進展情況來開始今天的電話會議。在帕特提供最新財務信息後，我期待回答您的問題。

Before diving into the details, let me walk you through some key highlights. We successfully completed the acquisition of Veoneer Active Safety during the second quarter solidifying our position as a global leader in Active Safety. There is a lot of excitement and energy around Magna as a result of this acquisition. Our organic sales grew by 17% year-over-year, surpassing weighted production by 5%, excluding Complete Vehicles and 3% including Complete Vehicles. Our second quarter showcased strong Q2 operating performance with high organic sales contributing to robust earnings. These results represent a significant improvement both year-over-year and compared to the first quarter of this year.

在深入了解細節之前，讓我先帶您了解一些關鍵亮點。我們在第二季度成功完成了對 Veoneer Active Safety 的收購，鞏固了我們作為主動安全領域全球領導者的地位。這次收購讓麥格納充滿了興奮和活力。我們的有機銷售額同比增長 17%，超過加權產量 5%（不包括整車）和 3%（包括整車）。我們的第二季度展示了強勁的第二季度運營業績，高有機銷售貢獻了強勁的收益。這些結果與去年同期和今年第一季度相比都有顯著改善。

We have raised our 2023 sales, adjusted EBIT margin and adjusted net income outlook ranges for 2023. This upward revision in our EBIT margin range demonstrates solid operating performance even with the inclusion of Veoneer Active Safety, which is launching significant new business over the next 18 months. We are highly committed to executing our strategy and remain confident in our ability to achieve our long-term growth and margin outlook. And we continue to win business across all product areas which supports our Go Forward Strategy.

我們上調了2023 年的銷售額、調整後的息稅前利潤率以及調整後的2023 年淨利潤展望範圍。即使將Veoneer Active Safety 納入其中，我們對EBIT 利潤率範圍的上調也表明了穩健的運營業績，該公司將在未來18 年推出重要的新業務幾個月。我們高度致力於執行我們的戰略，並對我們實現長期增長和利潤前景的能力保持信心。我們繼續在所有產品領域贏得業務，這支持了我們的前進戰略。

It is important to note that the industry has seen some positive developments, including reduced supply constraints, stronger and more stable production schedules and resilient auto sales in a number of markets. However, the global economy continues to face some interlocking challenges, including continuing elevated inflation, higher interest rates, geopolitical risks and slowing economic growth. These challenges are impacting our entire industry. In North America, there are concerns about upcoming OEM labor negotiations when union contracts expire in September which may have short-term impacts on production. Rest assured, efforts to contain costs and improve our margins remains a top priority for us. This is being achieved through ongoing operational improvement initiatives, recovering costs from our customers and executing flawless launches across Magna.

值得注意的是，該行業已經出現了一些積極的發展，包括供應限制減少、生產計劃更強勁、更穩定以及許多市場的汽車銷售富有彈性。然而，全球經濟繼續面臨一些相互關聯的挑戰，包括通脹持續上升、利率上升、地緣政治風險和經濟增長放緩。這些挑戰正在影響我們整個行業。在北美，人們擔心工會合同將於 9 月份到期後即將進行 OEM 勞工談判，這可能會對生產產生短期影響。請放心，控製成本和提高利潤仍然是我們的首要任務。這是通過持續的運營改進舉措、從客戶那裡收回成本以及在麥格納執行完美的發布來實現的。

Earlier this year, we estimated about $100 million of incremental input costs net of recoveries over 2022. Based on our initiatives together with improvements in market prices for energy and certain commodities, we now expect to mitigate about half of the incremental net input costs. We also continue to take proactive measures in various other areas. We have executed all initiated consolidation, restructuring and cost containment activities at different levels across the company. We are engaged in ongoing commercial negotiations with our customers to recover costs, transitioning to various index programs and address pricing on challenging programs. At the same time, we continue to intensify our efforts in areas that are core to our daily business, including hedging activities and our enterprise-wide global purchasing initiative.

今年早些時候，我們估計2022 年扣除回收後的增量投入成本約為1 億美元。根據我們的舉措以及能源和某些商品市場價格的改善，我們現在預計將減少約一半的增量淨投入成本。我們還繼續在其他各個領域採取積極措施。我們在整個公司的不同層面上執行了所有已啟動的合併、重組和成本控制活動。我們正在與客戶進行持續的商業談判，以收回成本、過渡到各種指數計劃並解決具有挑戰性的計劃的定價問題。與此同時，我們繼續加大在日常業務核心領域的力度，包括對沖活動和全企業範圍的全球採購計劃。

Automation installations and smart factory initiatives with the digital ecosystem implementation are also well underway. Lastly, I am pleased to report that our underperforming European BES facility is tracking to our expectations supported by a number of these initiatives. All these efforts are yielding positive results, enabling us to generate strong earnings on our sales growth and reinforcing our confidence in delivering on our expectations for margin expansion in the coming years.

自動化安裝和智能工廠計劃以及數字生態系統的實施也在順利進行。最後，我很高興地向大家報告，在許多此類舉措的支持下，我們表現不佳的歐洲 BES 工廠正在達到我們的預期。所有這些努力都取得了積極的成果，使我們能夠通過銷售增長產生強勁的收益，並增強我們對實現未來幾年利潤率擴張預期的信心。

In early June, we successfully completed the Veoneer Active Safety transaction, and I would like to thank all of those involved for their efforts. This transaction has expanded our Active Safety portfolio by incorporating complementary products, customers, geographies, engineering and software resources. The response from both the acquired business and our existing Active Safety unit has been overwhelmingly positive. There is a great deal of excitement surrounding the immense potential of the combined business. The business is on track with the expectations as outlined when we announced the acquisition, including being neutral to earnings before purchase price amortization in 2024.

六月初，我們成功完成了維寧爾主動安全交易，我要感謝所有相關人員的努力。這項交易通過整合互補的產品、客戶、地域、工程和軟件資源，擴大了我們的主動安全產品組合。被收購的業務和我們現有的主動安全部門的反應都是非常積極的。合併後業務的巨大潛力令人興奮不已。該業務正符合我們宣布收購時概述的預期，包括 2024 年購買價格攤銷前的盈利保持中性。

We hit the ground running and are fully dedicated to ensuring a smooth integration and realizing the $70 million in synergies identified at the outset. We are excited to share more insights about our combined Active Safety business and to update our 2025 outlook to reflect the acquisition during our upcoming virtual investor event in early September. We continue to execute our strategy aimed at accelerating our growth in megatrend areas. Recently, we were awarded the battery enclosure for Ford's next-generation F-150 Lightning EV pickup truck. To support this exciting new program, we are adding capacity in Tennessee. This award further strengthens our competitive position in the rapidly growing market for battery enclosures. In powertrain electrification, we are actively supporting our customers with a combination of components and systems. We are proud to have recently won an award for our first-to-market Modular stand-alone Decoupling Unit for electric vehicles.

我們立即行動起來，全力以赴確保順利整合併實現一開始確定的 7000 萬美元的協同效應。我們很高興能在 9 月初即將舉行的虛擬投資者活動中分享有關合併後的主動安全業務的更多見解，並更新我們的 2025 年展望，以反映此次收購。我們繼續執行旨在加速大趨勢領域增長的戰略。最近，我們獲得了福特新一代 F-150 Lightning EV 皮卡的電池外殼。為了支持這一激動人心的新計劃，我們正在增加田納西州的產能。該獎項進一步增強了我們在快速增長的電池外殼市場中的競爭地位。在動力總成電氣化領域，我們積極通過組件和系統組合為客戶提供支持。我們很自豪最近因我們首款上市的電動汽車模塊化獨立解耦單元而獲獎。

The innovative unit contributes to an increase in electric drive range by up to 9%. We have already begun launching this product on multiple vehicles of a German-based premium OEM. We recently announced a long-term supply agreement with Onsemi, this agreement allows Magna to integrate silicon carbide-based technology into our future eDrive systems. The advanced technology will enhance our ability to deliver better cooling performance as well as faster acceleration and charging rates which contribute to improved efficiency and increased EV range.

該創新裝置有助於將電動驅動範圍增加高達 9%。我們已經開始在一家德國優質 OEM 的多輛汽車上推出該產品。我們最近宣布了與 Onsemi 的長期供應協議，該協議允許麥格納將基於碳化矽的技術集成到我們未來的 eDrive 系統中。先進技術將增強我們提供更好的冷卻性能以及更快的加速和充電速率的能力，從而有助於提高效率和增加電動汽車的續航里程。

These activities highlight our commitment to driving innovation and positioning ourselves as a leader in the rapidly evolving field of electric mobility. Our success in winning business across all product lines continues to drive growth. In addition to securing the contract for the battery enclosure, we were pleased to announce that we have also recently been awarded the frame and seats for the next-generation F-150 Lightning. The seating award represents yet another seat complete program for pickup trucks in North America following our previous seat award for GM's pickup trucks to be produced at

這些活動凸顯了我們對推動創新並將自己定位為快速發展的電動汽車領域領導者的承諾。我們在所有產品線贏得業務的成功繼續推動增長。除了獲得電池外殼合同外，我們很高興地宣布，我們最近還獲得了下一代 F-150 Lightning 的框架和座椅。該座椅獎代表了繼我們之前為通用汽車皮卡生產的座椅獎之後，北美皮卡車的又一個座椅完整計劃。

We were also recently awarded the replacement vehicle assembly business for the iconic Mercedes-Benz G-Class. This award allows us to maintain our 40-plus year history as the exclusive producer of this off-road vehicle. We produced over 45,000 G-Class vehicles in our Graz, Austria facility in 2022, bringing our lifetime total to over 0.5 million. The next-generation G-Class is expected to launch in 2024 and continue to run towards the end of the decade. And we were awarded significant new fascia business on multiple programs from a Europe-based global OEM. We will supply the OEM's assembly plant in North America from an existing exteriors facility beginning in 2026.

我們最近還獲得了標誌性梅賽德斯-奔馳 G 級轎車的替換車輛組裝業務。該獎項使我們能夠保持 40 多年作為這款越野車獨家生產商的歷史。 2022 年，我們在奧地利格拉茨的工廠生產了超過 45,000 輛 G 級汽車，使我們的總產量超過 50 萬輛。下一代 G 級預計將於 2024 年推出，並持續運行到本世紀末。我們還獲得了一家總部位於歐洲的全球 OEM 的多個項目的重要新儀表板業務。從 2026 年開始，我們將從現有的外飾工廠向北美 OEM 組裝廠供貨。

With that, I'll pass the call over to Pat.

這樣，我會將電話轉給帕特。

Thanks, Swamy, and good morning, everyone. As Swamy indicated, we delivered strong second quarter earnings and free cash flow, both above our expectations. Now comparing the second quarter of 2023 to 2022, consolidated sales were $11 billion, up 17% compared to a 15% increase in global light vehicle production. EBIT was $603 million, and EBIT margin increased 170 basis points to 5.5%. It was also up 140 basis points from the first quarter of 2023. Adjusted EPS came in at $1.50 up 81% year-over-year. And free cash flow used in the quarter was $7 million compared to $52 million generated in the second quarter of 2022, in part reflecting our higher capital spend to support record program awards in 2022. During the quarter, we paid dividends of $129 million and in addition to raising our sales outlook, we increased our adjusted EBIT margin and earnings outlook. Let me take you through some of the details. North American, European and Chinese light vehicle production were up 14%, 13% and 21%, respectively, netting to a 15% increase in global production. Our consolidated sales were $11 billion, up 17% over the second quarter of 2022. On an organic basis, our sales also increased 17% year-over-year, or a 3% growth over market or 5% growth over market, excluding Complete Vehicles. The sales increase was primarily due to higher global vehicle production and Complete Vehicle assembly sales, the launch of new programs, price increases to recover certain higher input costs and the acquisition of Veoneer Active Safety on June 1, net of divestitures.

謝謝斯瓦米，大家早上好。正如斯瓦米所指出的，我們第二季度的盈利和自由現金流都強勁，均超出了我們的預期。現在將 2023 年第二季度與 2022 年相比，綜合銷售額為 110 億美元，增長 17%，而全球輕型汽車產量增長 15%。息稅前利潤為 6.03 億美元，息稅前利潤率增長 170 個基點，達到 5.5%。較 2023 年第一季度上漲 140 個基點。調整後每股收益為 1.50 美元，同比增長 81%。本季度使用的自由現金流為700 萬美元，而2022 年第二季度產生的自由現金流為5200 萬美元，部分反映了我們為支持2022 年創紀錄的計劃獎勵而增加的資本支出。在本季度，我們支付了1.29 億美元的股息，除了提高銷​​售預期外，我們還提高了調整後的息稅前利潤率和盈利預期。讓我帶您了解一些細節。北美、歐洲和中國的輕型汽車產量分別增長了 14%、13% 和 21%，全球產量增長了 15%。我們的綜合銷售額為110 億美元，比2022 年第二季度增長17%。在有機基礎上，我們的銷售額也同比增長17%，即比市場增長3% 或比市場增長5%（不包括Complete）汽車。銷量增長的主要原因是全球汽車產量和整車裝配銷量增加、新項目的推出、為收回某些較高投入成本而提價以及 6 月 1 日收購 Veoneer Active Safety（扣除資產剝離）。

These are partially offset by the impact of foreign currency translation and contractual customer price givebacks. Adjusted EBIT was $603 million, and adjusted EBIT margin was 5.5% compared to 3.8% in Q2 2022. Our focus on operational excellence and performance on cost initiatives helped drive strong earnings on higher sales. This was partially offset by the impact of the acquisition of Veoneer Active Safety. Adjusted EBIT margin was also possibly impacted by about 25 basis points of net operational items, including productivity and efficiency improvements at certain facilities and higher tooling contribution, partially offset by higher program-related engineering spending and launch costs and higher equity income, which benefited margins by about 10 basis points.

這些部分被外幣換算和合同客戶價格回饋的影響所抵消。調整後息稅前利潤為6.03 億美元，調整後息稅前利潤率為5.5%，而2022 年第二季度為3.8%。我們對卓越運營和成本計劃績效的關注有助於在銷售增加的情況下推動強勁收益。這被收購 Veoneer Active Safety 的影響部分抵消。調整後的息稅前利潤率也可能受到約25個基點的淨運營項目的影響，包括某些設施的生產力和效率的提高以及更高的工具貢獻，部分被與項目相關的工程支出和啟動成本以及更高的股權收入所抵消，這有利於利潤率約10個基點。

EBIT margin was negatively impacted by higher net input costs, primarily lower scrap prices and higher labor costs, partially offset by lower cost for energy, commodities and freight which combined to about 45 basis points and nonrecurring items, which subtracted about 5 basis points. Interest expense increased primarily reflecting the senior notes issued in the first quarter, increased borrowings and higher interest rates, partially offset by higher interest income. Our adjusted effective income tax rate came in at 21.8%, largely in line with our 2023 expectations but lower than Q2 of last year. And adjusted net income attributable to Magna was $430 million, up 77% over the second quarter of 2022, reflecting the higher EBIT and lower tax rate, partially offset by higher interest expense and minority interest.

息稅前利潤率受到淨投入成本上升（主要是廢鋼價格下降和勞動力成本上升）的負面影響，但部分被能源、大宗商品和貨運成本下降所抵消，這些成本合計下降了約45 個基點，而非經常性項目則下降了約5 個基點。利息支出增加主要反映第一季度發行的優先票據、借款增加和利率上升，但部分被利息收入增加所抵消。調整後的有效所得稅率為 21.8%，基本符合我們 2023 年的預期，但低於去年第二季度。麥格納調整後淨利潤為4.3 億美元，較2022 年第二季度增長77%，反映出較高的息稅前利潤和較低的稅率，但部分被較高的利息支出和少數股東權益所抵消。

Adjusted diluted EPS was $1.50, up 81% compared to Q2 of last year. The increase is the result of higher net income and fewer shares outstanding. The reduced number of shares outstanding primarily reflects the impact of share repurchases during and subsequent to the second quarter of 2022.

調整後攤薄每股收益為 1.50 美元，較去年第二季度增長 81%。這一增長是由於淨利潤增加和流通股減少所致。已發行股票數量的減少主要反映了 2022 年第二季度及之後股票回購的影響。

Turning to a review of our cash flows and investment activities. In the second quarter of 2023, we generated $879 million in cash from operations before changes in working capital. We invested $332 million in working capital, primarily reflecting the higher sales in the second quarter of 2023. The investment activities in the quarter included $502 million for fixed assets and $96 million for investments, other assets and intangibles. The $502 million CapEx is higher than the $329 million in Q2 of last year to support our record program awards in 2022. Overall, we used free cash flow of $7 million in Q2, better than we had anticipated.

轉向對我們的現金流和投資活動的審查。 2023 年第二季度，我們在營運資本變動前的運營中產生了 8.79 億美元的現金。我們投資了 3.32 億美元的營運資金，主要反映了 2023 年第二季度銷售額的增加。該季度的投資活動包括 5.02 億美元的固定資產和 9600 萬美元的投資、其他資產和無形資產。 5.02 億美元的資本支出高於去年第二季度的3.29 億美元，用於支持我們在2022 年創紀錄的計劃獎勵。總體而言，我們在第二季度使用了700 萬美元的自由現金流，好於我們的預期。

We also acquired Veoneer Active Safety for $1.48 billion and paid $129 million in dividends in the quarter. Our balance sheet continues to be strong with major credit rating agencies recently reaffirming our ratings. At the end of the second quarter, we had over $4.6 billion in liquidity, including about $1.3 billion in cash. Currently, our adjusted debt to adjusted EBITDA ratio is 2.19x. Excluding approximately $400 million in cash, we are holding to pay down our euro debt set to mature later this year, our ratio would be 2.08. These ratios are tracking better than our previous expectations as a result of our improved operating results. We anticipate a reduction in our leverage ratio by the end of this year and a further decline through 2024.

我們還以 14.8 億美元收購了 Veoneer Active Safety，並在本季度支付了 1.29 億美元的股息。我們的資產負債表繼續強勁，主要信用評級機構最近重申了我們的評級。截至第二季度末，我們擁有超過 46 億美元的流動資金，其中包括約 13 億美元的現金。目前，我們調整後債務與調整後 EBITDA 的比率為 2.19 倍。不包括約 4 億美元的現金，我們持有用於償還今年晚些時候到期的歐元債務，我們的比率將為 2.08。由於我們經營業績的改善，這些比率的表現優於我們之前的預期。我們預計槓桿率將在今年年底前下降，並在 2024 年進一步下降。

Next, I will cover our updated outlook which incorporates slightly higher-than-expected vehicle production in both North America and Europe, mainly as a result of better production in Q2. Our assumption for production in China is unchanged from our previous outlook. We also assume exchange rates and our outlook will approximate current rates. We now expect a slightly stronger euro and slightly lower Canadian dollar and RMB for 2023 relative to our previous outlook. We have increased our expected sales range, largely reflecting the acquisition of Veoneer Active Safety, higher North American and European production in Q2 as well as the higher euro. As a result of our strong performance so far in 2023 and expectations for continued operational execution, partially offset by higher cost to launch new programs, we have also increased our adjusted EBIT margin range.

接下來，我將介紹我們最新的展望，其中包括北美和歐洲的汽車產量略高於預期，這主要是由於第二季度的產量有所改善。我們對中國生產的假設與之前的展望相同。我們還假設匯率和我們的前景將接近當前匯率。目前，我們預計 2023 年歐元將略為走強，加元和人民幣將略低於我們之前的預期。我們上調了預期銷售範圍，主要反映了收購 Veoneer Active Safety、第二季度北美和歐洲產量增加以及歐元走高。由於我們 2023 年迄今為止的強勁業績以及對持續運營執行的預期（部分被啟動新項目的成本上升所抵消），我們還提高了調整後的息稅前利潤率範圍。

This is despite the short-term 20 basis point impact from the Veoneer Active Safety acquisition. We are increasing our equity income range, mainly reflecting lower spend and expected commercial items. As a result of increasing the ranges for our sales and adjusted EBIT margin, we are also raising our range for adjusted net income attributable to Magna. Our capital spending outlook has increased to reflect the Veoneer acquisition in line with our previous expectations. Our interest expense and tax rate are unchanged from our previous outlook. In addition, free cash flow expectations are unchanged, even after incorporating Veoneer Active Safety for the last 7 months of

儘管收購 Veoneer Active Safety 會帶來短期 20 個基點的影響，但這一情況仍然存在。我們正在擴大股權收入範圍，主要反映支出和預期商業項目的減少。由於提高了銷售額和調整後息稅前利潤率的範圍，我們還提高了麥格納調整後淨利潤的範圍。我們的資本支出前景有所提高，以反映 Veoneer 的收購符合我們之前的預期。我們的利息支出和稅率與之前的展望相同。此外，即使在過去 7 個月納入 Veoneer Active Safety 後，自由現金流預期也沒有變化。

2023. Note that beginning in Q3, Magna's adjusted EBIT will exclude the amortization of acquired intangibles, the most significant of which is associated with the Veoneer Active Safety acquisition. In summary, we are pleased with our strong operating performance in the second quarter. Once again, we outgrew our end markets by 3% on a consolidated basis and 5% excluding Complete Vehicles. We continue to win new business across our portfolio, supporting our Go Forward Strategy and largely as a result of our continued strong execution, we are raising our earnings outlook for the year. Thanks for your attention. We'd be happy to answer your questions.

2023 年。請注意，從第三季度開始，麥格納調整後的息稅前利潤將不包括所收購無形資產的攤銷，其中最重要的是與 Veoneer Active Safety 收購相關的攤銷。總而言之，我們對第二季度強勁的經營業績感到滿意。我們的綜合增長再次超過終端市場 3%，不包括整車則超過 5%。我們繼續在我們的投資組合中贏得新業務，支持我們的前進戰略，並且在很大程度上由於我們持續強勁的執行力，我們正在提高今年的盈利前景。感謝您的關注。我們很樂意回答您的問題。

(Operator Instructions) Our first question comes from the line of John Murphy with Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 John Murphy。

Just a first question, as you look at what went on in the quarter, obviously, volumes were up big time on a year-over-year basis, but there was also stabilization in schedules, right? So you knew what you were doing and how to plan for it. Just wondering, which do you think was -- I mean, obviously, the rise in volume is important. But how important was the stabilization in schedules? And how should we think about that going forward in the business?

第一個問題，當你看看本季度發生的情況時，顯然，銷量同比大幅增長，但時間表也穩定了，對嗎？所以你知道自己在做什麼以及如何計劃。只是想知道，你認為——我的意思是，顯然，銷量的增長很重要。但時間表的穩定性有多重要？我們應該如何看待業務的未來發展？

For sure, both of them, but I think if they have to prioritize, if you look at all the initiatives that we've been talking about play a bigger role in getting the flow-through that we would expect. But definitely, the stabilization of production schedules is what helps those efforts in a big way, right, to get to the bottom line and get the intended effect of all the activities that we are going through, the big variable would be the stable production. Obviously, the higher volumes help, but the important thing is once you get the higher volumes, can I get the flow through the way we expect, right? So definitely helped both of them this time.

當然，他們都是，但我認為如果他們必須優先考慮，如果你看看我們一直在談論的所有舉措，在獲得我們期望的流程方面發揮更大的作用。但毫無疑問，生產計劃的穩定在很大程度上有助於這些努力，對吧，為了達到底線並獲得我們正在進行的所有活動的預期效果，最大的變量將是穩定的生產。顯然，更高的交易量會有所幫助，但重要的是一旦獲得更高的交易量，我能否按照我們預期的方式獲得流量，對嗎？所以這次肯定對他們倆都有幫助。

Okay. And then just a second question on the battery and enclosure business for the F-150 Lightning, the fact that you're getting the frame as well seats as well as good, but I mean the frame and the battery enclosure seemed like they might be interrelated Swamy. How interrelated was that sort of bidding process? How much part of the structure of that truck is that battery enclosure business? And does that set you up well for future wins on other trucks, but maybe other unibody -- that's not unibody but on unibody structures as well.

好的。然後是關於 F-150 Lightning 的電池和外殼業務的第二個問題，事實上，你得到的框架和座椅都很好，但我的意思是框架和電池外殼看起來可能是相互關聯的斯瓦米。這種投標過程之間的相互關係如何？該卡車結構的多少部分是電池外殼業務？這是否為您未來在其他卡車上取得勝利做好了準備，但也許是其他一體式車身——這不是一體式車身，但也適用於一體式車身結構。

John, I'll answer the question from a Magna perspective, and we talked about highly integrated systems and the value that Magna brings when we look at not individual component, but more how you bring things together, and I think this plays a role. I won't comment specifically on the architecture of this vehicle because I don't think it will be right for me at this point. But that expertise of knowing the frame, knowing the body enclosures and the whole vehicle definitely comes into play. And as we look forward, we see, in some cases, like you talked about, a framed vehicle with a separate enclosure today, but as you go to the next generation, there is definitely a thought process of how we can get the synergies for structural performance for safety and efficiency and so on. So us being in the program now on actually multiple truck programs, I think, definitely gives us a -- I think, a big advantage in not only addressing what's needed today, but taking this product line and evolving into the future.

約翰，我將從麥格納的角度回答這個問題，我們討論了高度集成的系統以及麥格納帶來的價值，當我們關注的不是單個組件，而是更多如何將事物組合在一起時，我認為這發揮了作用。我不會具體評論這輛車的架構，因為我認為它目前不適合我。但了解車架、了解車身外殼和整輛車的專業知識肯定會發揮作用。當我們展望未來時，我們看到，在某些情況下，就像您談到的那樣，今天有一輛帶有單獨外殼的框架車輛，但當您進入下一代時，肯定會有一個思考過程，我們如何才能獲得協同效應安全性和效率等結構性能。因此，我認為，我們現在實際上參與了多個卡車項目，這絕對給我們帶來了巨大的優勢，不僅可以滿足當今的需求，而且可以利用該產品線並向未來發展。

And then if I could sneak just one last one in. Commercial discussions with your automaker customers seem to be a little bit more amicable and conciliatory than they have been in the past. Is that a correct interpretation and has something changed here where they're partnering a lot more on sort of cost sharing, particularly as costs are inflating or is it more just more of the same and you guys are just doing a better job with these discussions?

然後我可以偷偷地插上最後一個嗎？與您的汽車製造商客戶的商業討論似乎比過去更加友好和和解。這是正確的解釋嗎？這裡發生了一些變化，他們在成本分攤方面進行了更多合作，特別是在成本不斷上漲的情況下，還是只是更加相同，而你們只是在這些討論中做得更好？

It's a difficult one, John, but I definitely -- I think we had a gritty 6 months is how I would put it. The reactions and the interactions are somewhat mixed. But I can tell you we are laser-focused on it. It's just not a person, but teams and cross-functional across finance and sales and commercial and operations. The entire organization is around this topic. I cannot -- I think -- I won't be explained -- able to explain in few sentences the effort that goes into this. But I would say there is a openness to have the discussion in different forums, like I said, some are a little bit tougher than the other. But it is -- I mean we cannot afford not to do this. It's a must for us, right? And I think the conversations are tough, but I would say they're fair.

這是一個困難的過程，約翰，但我確實——我認為我們度過了艱難的 6 個月，我是這麼說的。反應和相互作用有些複雜。但我可以告訴你，我們正在全力以赴。它不僅僅是一個人，而是跨財務、銷售、商業和運營的團隊和跨職能部門。整個組織都圍繞這個主題。我無法——我想——我不會被解釋——能夠用幾句話解釋為此付出的努力。但我想說的是，在不同的論壇上進行討論是開放的，就像我說的，有些論壇比另一個論壇更難一些。但事實是——我的意思是我們不能不這樣做。這對我們來說是必須的，對嗎？我認為對話很艱難，但我想說它們是公平的。

Our next question comes from the line of Tamy Chen with BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場的 Tamy Chen。

First, I wanted to talk about Veoneer. So I saw you've given the impact it had on your guidance. Could you just talk a little bit more about how you expect that to trend through the year? And you're expecting it to break even before the incremental amortization next year. Could you just remind us the steps or the path for the business to get to that next year?

首先，我想談談 Veoneer。所以我看到你已經給出了它對你的指導的影響。您能多談談您對這一年的趨勢的預期嗎？您預計它會在明年增量攤銷之前實現收支平衡。您能否提醒我們明年企業實現這一目標的步驟或路徑？

I'll give you a few key points and, Pat, you can jump in. As we said, we closed the transaction, happy to say that we hit the ground running on the integration efforts. And I think I could summarize by saying that we are comfortable with what we talked about when we did the acquisition announcement. So some of the facts that we talked about at that time, 2023 sales, about $1 billion, and we said it would have a 20 basis points impact on consolidated EBIT margin. CapEx was roughly around $100 million, EBITDA positive in 2023. We expect $70 million in synergies by 2025. I think we are tracking very well, and there could be tailwinds going forward. EBIT neutral in 2024 ex PPA. And a little bit more color on 2025 impact, we should be able to do that in our virtual Investor Day update that's coming up, Tamy, in September.

我將向您介紹幾個關鍵點，帕特，您可以加入進來。正如我們所說，我們完成了交易，很高興地說我們在整合工作上已經開始了工作。我想我可以總結一下，我們對發布收購公告時所討論的內容感到滿意。所以我們當時談到的一些事實是，2023 年銷售額約為 10 億美元，我們表示這將對綜合息稅前利潤率產生 20 個基點的影響。資本支出約為 1 億美元左右，2023 年 EBITDA 為正值。我們預計到 2025 年將產生 7000 萬美元的協同效應。我認為我們的跟踪情況非常好，未來可能會出現順風車。 2024 年，扣除購電協議後，息稅前利潤為中性。 Tamy，我們應該能夠在 9 月份即將推出的虛擬投資者日更新中對 2025 年的影響進行更多的闡述。

Okay. Can you talk specifically though about next year of the business going to EBIT neutral from now being a drag? Can you just remind us of some of the steps to get there?

好的。您能具體談談明年該業務從現在的拖累轉向息稅前利潤中性嗎？您能否提醒我們一些實現這一目標的步驟？

So congratulations on your new role. When you think about the Veoneer business, it's quite similar to our existing electronics business, and they're experiencing rapid growth. So really, the driver of what's happening is a combination of 2 things. One is there -- a lot of their launch costs are being incurred this year, and they're going to continue through next year. But what's happening is -- as that business launches, it's driving a lot of contribution margin that's going to benefit as the volumes ramp. To be honest with you, that's really the inflection point we're seeing in their business, and it's similar to what we're seeing in our business. And that's what's going to drive the dollar growth and the margin improvement.

祝賀您擔任新角色。當你想到 Veoneer 業務時，它與我們現有的電子業務非常相似，而且它們正在經歷快速增長。事實上，正在發生的事情的驅動因素是兩件事的結合。其中之一是——他們的大量發射成本是今年產生的，而且將持續到明年。但正在發生的事情是——隨著該業務的推出，它推動了很大的邊際貢獻，隨著銷量的增加，邊際收益將受益。老實說，這確實是我們在他們的業務中看到的拐點，並且與我們在我們的業務中看到的類似。這將推動美元增長和利潤率改善。

Got it. Okay. And then my other question is -- it's quite a strong performance in your Cosma business. I don't think we've seen the 8% or above EBIT margin really since early 2021. I know you called out through the call all the positive factors that have happened this quarter. But could you just specifically on the Cosma business talk a bit about what really drove quite a strong performance. It was strong sequentially as well. Can you also talk a little bit about within that business, there have been that underperforming plants. Just -- you touched on it a bit earlier in your comments, but a little bit more detail on that. Are you largely through that headwind as well?

知道了。好的。我的另一個問題是——你們的 Cosma 業務表現相當強勁。我認為自 2021 年初以來，我們還沒有真正看到過 8% 或以上的息稅前利潤率。我知道您在電話會議中指出了本季度發生的所有積極因素。但您能否具體談談 Cosma 業務，談談真正推動業績強勁的因素。它也連續強勁。您能否也談談在該行業中，有一些表現不佳的工廠。只是——您在評論中早些時候提到過這一點，但對此有更多細節。你也基本上經歷了這種逆風嗎？

Yes. Tamy, from a Cosma perspective, like you said, we have seen those type of numbers before and as we discussed the production stability, having the volumes coming back up, taking back up and all the initiatives are a combination. It's really good execution on higher sales is one and kind of operational improvement in a couple of facilities. You touched on the BES facility that we had issues with. And it's tracking the predominant factor, as I discussed previously, was the efficiency hit that we were having and therefore, had to outsource capacity. So I'm happy to say now that we improved our efficiency, so the capacity opens up and we are able to bring back work which obviously helps. And that's -- I would say it's on track and continuing to make progress as we had discussed towards the end of 2024 and one other thing would be comparing to 2022 Q2, it would be Russia which are not there. And some of it is also commercial resolutions in the quarter including retro from that goes back into the previous part of the year. But also, I want to mention that there is some benefit going forward in a run rate perspective. So I would say those are the combination of things that led to the expected strong performance in -- just in BES but specifically in Cosma.

是的。 Tamy，從 Cosma 的角度來看，就像你說的，我們之前已經看到過這些類型的數字，當我們討論生產穩定性時，產量恢復、恢復以及所有舉措都是一個組合。在更高的銷售額上執行確實很好，這是對幾個工廠的運營改進之一。您提到了我們遇到問題的 BES 設施。正如我之前討論的，它跟踪的主要因素是我們所遭受的效率打擊，因此必須外包產能。因此，我現在很高興地說，我們提高了效率，因此產能得以釋放，我們能夠恢復工作，這顯然有幫助。我想說的是，正如我們在 2024 年底討論的那樣，它正在步入正軌並繼續取得進展，另一件事是與 2022 年第二季度相比，俄羅斯將不在那裡。其中一些也是本季度的商業決議，包括對今年上半年的回顧。但我還想提一下，從運行率的角度來看，未來會有一些好處。所以我想說，這些因素的結合導致了預期的強勁表現——只是在 BES，特別是在 Cosma。

And Tamy, you mentioned Cosma, but yes, it's all of -- the biggest chunk of that is Cosma, but we have our Exteriors business in there as well.

Tamy，你提到了 Cosma，但是，是的，這就是全部 - 其中最大的一部分是 Cosma，但我們也有我們的外飾業務。

And there were some commercial items. Tamy, when you think about where we're pushing forward recoveries, we're pushing for commercial recoveries as well. And when we talk commercial, it's cancellation claims, low volume claims. So some of that benefit did come through in the quarter and part of it was retro as Swamy mentioned.

還有一些商業物品。 Tamy，當你想到我們在哪些方面推動復甦時，我們也在推動商業復甦。當我們談論商業時，指的是取消索賠、小批量索賠。因此，其中一些好處確實在本季度實現了，而正如斯瓦米提到的，其中一部分是複古的。

Our next question comes from the line of [Chris McNally] with Evercore.

我們的下一個問題來自 Evercore 的 [Chris McNally]。

Just wanted to follow up on the last set of questions on Body. If we look at the implied second half versus sort of Q2 where you put up the impressive margins, was there any particular sort of price that was taken in Q2 that was retroactive? Some of the suppliers are talking about -- looking at sort of first half margins, for example, for divisions because of the timing of some of these price recoveries. And then as a follow through, how do we think about pros and cons, headwinds, tailwinds for Body in the second half?

只是想跟進關於身體的最後一組問題。如果我們看看隱含的下半年與第二季度的情況，你提供了令人印象深刻的利潤，那麼第二季度是否有任何特定類型的價格可以追溯？一些供應商正在談論——例如，考慮某些部門的上半年利潤率，因為其中一些價格回升的時間。接下來，我們如何看待下半年 Body 的利弊、逆風、順風？

Chris, I guess, afternoon to you. I think you -- you're absolutely correct. When you think about these commercial items and the inflation recoveries, a portion of them -- as these are being negotiated throughout the year, a portion by default becomes retro. So there are some retro recoveries in the second quarter related to Q1 and a little bit from 2022, but it's primarily a Q1 issue as we push forward. So it's fair to say that our margin in our BES segment is going to peak in Q2 and normalize to those guidance ranged in the second half of the year.

克里斯，我想，下午給你。我認為你——你是完全正確的。當你考慮這些商業項目和通脹復甦時，其中的一部分——因為這些項目全年都在談判，默認情況下一部分會變得複古。因此，第二季度出現了一些與第一季度相關的複古復甦，從 2022 年開始也有一些復甦，但隨著我們向前推進，這主要是第一季度的問題。因此，可以公平地說，我們 BES 部門的利潤率將在第二季度達到峰值，並在下半年恢復到正常水平。

I don't want to -- like there is a commercial portion, but the real drive here is volumes and execution on that volume increase. That is -- that's really what's driving the performance improvement.

我不想——就像有一個商業部分一樣，但這裡真正的驅動力是銷量和銷量增加的執行力。也就是說，這才是真正推動性能改進的因素。

And keep -- keep in mind, H2 versus H1, we do see volumes down, just some of that's just regular seasonality, but volumes and sales will be expected to be down.

請記住，下半年與上半年相比，我們確實看到銷量下降，其中一些只是常規季節性因素，但預計銷量和銷售額都會下降。

No, and that makes sense. I mean one of the things we're in the analyst community, we're dealing with the suppliers are being appropriately conservative, but basically by your implied production, you have second half down versus first half, which the forecasters have slightly up. So that makes sense. If we stick on margin Seating, it looks like it's starting to turn a corner and Seating has been this sort of persistent low margin, you had some of the BMW business that came on that had different margin characteristics. Are we turning a volume -- turning a corner? And does the European volumes that are turning actually start to really help here, which has been a drag for several years?

不，這是有道理的。我的意思是，我們在分析師社區中的一件事是，我們與供應商打交道時採取了適當保守的態度，但基本上根據隱含產量，下半年的產量比上半年有所下降，而預測者的預測略有上升。所以這是有道理的。如果我們堅持保持座位利潤率，看起來它已經開始出現轉機，而且座位利潤率一直處於這種持續的低水平，寶馬的一些業務具有不同的利潤率特徵。我們是否正在扭轉局面——扭轉局面？歐洲銷量的增長真的開始對這幾年來的拖累有所幫助嗎？

I think we talked about the mix issue that we've had in Seating, right? That was disproportionately impacting us. And as the volumes are coming back and the mix is becoming more normalized than lopsided, we are starting to see those effects come through but I also have to give a lot of credit to the Seating team on how they are being part of this overall initiative that we are looking at and starting to see the impact of that whether it's some of the digitization efforts, some of just block and tackle type things that we're going through. And we also talked about some of the wins in the truck segment in North America and some actual discussions on existing nonperforming programs. It's a combination of all of this that we are seeing the effect just not today, but I think we are very optimistic about what we could see in the coming years in Seating.

我想我們討論了座位組合問題，對吧？這對我們產生了不成比例的影響。隨著銷量的回升，混合變得更加正常化，而不是一邊倒，我們開始看到這些影響的顯現，但我也必須對座椅團隊如何參與這一整體計劃給予高度讚揚我們正在研究並開始看到其影響，無論是一些數字化工作，還是我們正在經歷的一些只是阻止和解決類型的事情。我們還討論了北美卡車領域的一些勝利以及對現有不良項目的一些實際討論。所有這些的結合，我們今天才看到效果，但我認為我們對未來幾年在座椅領域看到的情況非常樂觀。

Okay. Great. And I'll hold back on the ADAS and the radar questions, look forward to the events in September.

好的。偉大的。我將暫緩 ADAS 和雷達問題，期待 9 月份的活動。

Our next question comes from the line of Mark Delaney with Goldman Sachs.

我們的下一個問題來自高盛的馬克·德萊尼 (Mark Delaney)。

I believe last year, Magna's megatrend revenue was about $1 billion. And I think you guided it to approximately double this year and then to reach about $4 billion in 2025, excluding Veoneer Active Safety. Given some of the volatility that's been happening with some of the EV plants from certain OEMs, I'm curious if you could give us an update about how you're tracking in those megatrend areas relative to the prior targets.

我相信去年麥格納的大趨勢收入約為10億美元。我認為您今年的指導金額大約翻了一番，然後到 2025 年達到約 40 億美元（不包括 Veoneer Active Safety）。考慮到某些原始設備製造商的一些電動汽車工廠發生的一些波動，我很好奇您能否向我們提供有關您相對於先前目標如何跟踪這些大趨勢領域的最新信息。

I would say, to answer your question, looking at what we know today, obviously, in terms of take rates and so on and so forth, we are tracking to what we had talked about. And you mentioned the numbers, it's roughly about $4 billion in 2025, right. But as you said, it's very early days of electrification, I think we all know that it's a secular trend for sure, and it's here to stay. But the real trick is in predicting the trajectory. That's something that we all have to wait and see. And we are taking all the tools in the toolbox to look at how can we have that flexibility? And how can we pivot, how can we look at different programs and so on and so forth. But overall, whether it's electrification or ADAS, I think we are tracking to the numbers that we talked about.

我想說，為了回答你的問題，看看我們今天所知道的情況，顯然，在接受率等方面，我們正在追踪我們所討論的內容。你提到了這些數字，到 2025 年大約是 40 億美元，對吧。但正如您所說，現在還處於電氣化的早期階段，我想我們都知道這肯定是一種長期趨勢，而且它將持續下去。但真正的技巧在於預測軌跡。這是我們大家都必須拭目以待的事情。我們正在利用工具箱中的所有工具來研究如何才能擁有這種靈活性？我們如何調整方向，如何看待不同的計劃等等。但總的來說，無論是電氣化還是 ADAS，我認為我們都在追踪我們談論的數字。

That's helpful. And then in terms of the margin improvement opportunities. You talked a little bit around commercial negotiations already. Slide 9, though, mentions repricing underperforming programs as one of the margin opportunities. So I was wanting to understand that dynamic specifically, if possible, and to have a better sense of how broad based these underperforming programs are? I mean is it isolated to a few? Or is that a wider initiative? And any color you can share on your progress? And how luckily you think it is that you'll be able to restructure some of those programs?

這很有幫助。然後是利潤率改善機會。您已經談到了一些商業談判。不過，幻燈片 9 提到對錶現不佳的項目重新定價是利潤機會之一。因此，如果可能的話，我想具體了解這種動態，並更好地了解這些表現不佳的計劃的基礎有多廣泛？我的意思是它是孤立於少數人的嗎？或者這是一個更廣泛的倡議？您可以分享您的進展嗎？您認為能夠重組其中一些程序是多麼幸運？

Mark, I wouldn't call it wider. It's actually a very -- call it a granular look, which is a normal process. It's very targeted, very granular, very deliberate. We are looking at programs as they come towards the end of a program, right? End of production cycle. There are some ways, there is a replacement coming through. There is some extensions that come through. We look at all of these opportunities and sometimes it's change of scope on the project. We are looking at everything out there to see how do we effectively reprice, get the economics to where they really need to which meets our financial hurdles. And I can definitely say we have had success in some of these cases and some are still an ongoing discussion.

馬克，我不會稱之為更廣泛。這實際上是一個非常--稱之為粒度外觀，這是一個正常的過程。它非常有針對性、非常細緻、非常經過深思熟慮。我們正在研究即將結束的項目，對吧？生產週期結束。有一些方法可以替代。有一些擴展。我們會考慮所有這些機會，有時還會考慮項目範圍的變化。我們正在研究一切，看看我們如何有效地重新定價，使經濟達到他們真正需要的水平，從而滿足我們的財務障礙。我可以肯定地說，我們在其中一些案例中取得了成功，而有些案例仍在持續討論中。

Our next question comes from the line of Tom Narayan with RBC.

我們的下一個問題來自 RBC 的 Tom Narayan。

The first one is could you remind us what your -- I guess your D3 U.S. exposure is? Just asking, just you may help us understand maybe how we should think about potential strike implications?

第一個是你能提醒我們你的——我猜你的 D3 美國風險敞口是什麼？只是問一下，您可以幫助我們了解我們應該如何考慮潛在的罷工影響？

Yes. I think I'm going to say we're probably 75% in North America, we're about 75% of our business in that area. So [you disclosed] that I haven't got that handy, but it's in that range of the North American business.

是的。我想我會說我們可能有 75% 的業務在北美，我們大約 75% 的業務都在該地區。所以[你透露]我還沒有那麼方便，但它屬於北美業務的範圍。

And any breakout of the 3 OEMs or...

3 家 OEM 廠商的任何突破或......

I [can] get that for you, Tom. I don't have it at my fingertips.

湯姆，我[可以]幫你拿到。我手邊沒有它。

And then the other one is we've been hearing about some BEV slowdown chatter, specifically with legacy North American OEMs. It's coming up in a lot of the supplier calls. Just curious if you're seeing this -- if this is impacting kind of your EV business kind of more near term, or if you're seeing anything there?

另一個是我們一直聽到一些關於純電動汽車減速的傳言，特別是與傳統的北美原始設備製造商。很多供應商的電話中都會提到這個問題。只是好奇您是否看到了這一點——這是否會在短期內影響您的電動汽車業務，或者您是否在那裡看到了任何東西？

Yes, Tom. This is Swamy. I think if you look at it, I mean, really, the EV business is just a -- call it, early days. It's just launching and it's just taking -- if you look at the numbers, right, we are like, what, 2 million or so in vehicles. So it's more about how you position yourself on the right programs and looking at each of this, how we go about and what type of thinking you have in processing these programs. I think that's the important part. I don't know if you go back 2 or 3 years, we talked with a different tone. And today, it's with a different tone. I think we need to take a more calm approach. And as I said, I believe and we believe at Magna that it's a trend here to stay. We have to figure out how to manage the transition, and that's where our focus is.

是的，湯姆。這是斯瓦米。我認為，如果你仔細觀察一下，我的意思是，電動汽車業務實際上還處於早期階段。它剛剛推出，而且正在使用——如果你看一下數字，對吧，我們就像，什麼，大約有 200 萬輛汽車。因此，更多的是關於你如何將自己定位在正確的計劃上，並考慮其中的每一個，我們如何進行以及你在處理這些計劃時有什麼類型的思維。我認為這是重要的部分。我不知道如果你回到兩三年前，我們用不同的語氣說話。而今天，卻有了不同的語氣。我認為我們需要採取更加冷靜的態度。正如我所說，我相信，而且我們麥格納也相信，這是一種持續存在的趨勢。我們必須弄清楚如何管理過渡，這就是我們的重點所在。

Okay. And then lastly, if I look at the 2 segments, I think we're pretty interesting in Q2, BE&S very strong. And then P&V maybe a little bit lighter than maybe some folks expected, but then you've raised sales forecast for both. I know things can be kind of lumpy for quarter-to-quarter, just curious about Q2 sustainability in these 2 segments in H2. Clearly, you're expecting an improvement in P&V and how should we think about these 2 segments, Q2 versus H2?

好的。最後，如果我看一下這兩個部分，我認為我們在第二季度非常有趣，BE&S 非常強勁。 P&V 可能比一些人預期的要輕一些，但隨後你提高了兩者的銷售預測。我知道每個季度的情況可能會有些不穩定，只是對下半年這兩個細分市場的第二季度可持續性感到好奇。顯然，您期望 P&V 有所改善，我們應該如何考慮第二季度與第二季度這兩個細分市場？

Yes. I think we touched on some of the factors that contributed to the strong BES contribution, right. And we kind of see that going forward. There is no reason for us to think any different given there is no other major disruption or some industry-wide thing, we are starting to see, like I said, the efforts on all the initiatives that we have in place and stability in production and increasing volumes. The P&V, as you mentioned, really, the net input costs were a headwind year-over-year in the first half. The acquisition of Veoneer Active Safety negatively impacted the Q2 and we talked about a few things in the first quarter, which was a warranty item, there was a net negative commercial item in Q2 and some higher engineering costs that were associated with the launch of the program. So operationally, it's good, all of this, call it, one-timers were lapped in the first half of the year. So we see going forward, if you exclude those things, a better run rate.

是的。我認為我們觸及了 BES 做出巨大貢獻的一些因素，對吧。我們似乎看到了這一點。鑑於沒有其他重大干擾或某些全行業範圍的事情，我們沒有理由有任何不同的想法，正如我所說，我們開始看到我們在所有舉措上所做的努力以及生產和穩定。增加數量。正如您所提到的，P&V 實際上，上半年的淨投入成本同比出現了逆風。收購 Veoneer Active Safety 對第二季度產生了負面影響，我們在第一季度討論了一些事情，這是保修項目，第二季度有一個淨負商業項目，以及與推出相關的一些更高的工程成本程序。所以從操作上來說，這很好，所有這一切，稱之為，一次性的人在今年上半年就被淘汰了。因此，我們認為，如果排除這些因素，未來的運行率會更好。

Yes. If you kind of -- excluding those items, the pull-through is actually quite good in P&V in the quarter.

是的。如果你排除這些項目，本季度的 P&V 的拉動實際上相當不錯。

Our next question comes from the line of Colin Langan with Wells Fargo.

我們的下一個問題來自富國銀行的科林·蘭根 (Colin Langan)。

Just at a high level, if I look at the guidance, first half to second half, you have sales down to [$600] and that's with Veoneer, which I assume that means it's over $1 billion in the first half, second half, but EBIT up. So what are the major puts and takes that get that up? And I assume also that the guidance doesn't include any sort of factor for UAW [from that].

從高水平來看，如果我看一下上半年到下半年的指導，你的銷售額會下降到[600 美元]，這是Veoneer 的銷售額，我認為這意味著上半年和下半年的銷售額超過10 億美元，但是息稅前利潤上升。那麼，推動這一趨勢的主要看跌期權和看跌期權有哪些呢？我還認為該指南不包含 UAW 的任何因素（據此）。

So H1 versus H2, I think was your question, just the Magna consolidated variance. So the second part of your question was, you're correct, we haven't modeled in or factored in a UAW disruption, if any. When you think about -- I think Swamy has touched on a lot of the points, but big picture, when you take a step back and look at our H1 versus H2, there's a couple of factors. The -- we expect -- on the recoveries, we expect those to be more back half versus first half. And that's what we've projected from the beginning of the year, and that's what we're continuing to see. So that's number one. Number two, there were some discrete items that happened in the first half of the year that aren't expected to recover. Swamy touched on the warranty issue that we had in Q1. There was a few commercial settlements that have happened that positively impacted us that we're in the second quarter that were retro back into Q1, a portion back into Q2. And then as we move forward, we're still seeing stabilization of the production schedules, which is benefiting us. But I think, again, I just want to reinforce, when you come in with a lot of these operational improvements that we talk about is they take time to gain traction.

因此，我認為 H1 與 H2 是你的問題，只是麥格納綜合方差。所以你問題的第二部分是，你是對的，我們沒有模擬或考慮 UAW 中斷（如果有的話）。當你思考時——我認為斯瓦米已經觸及了很多要點，但從大局來看，當你退一步看看我們的 H1 與 H2 時，有幾個因素。我們預計，就復甦而言，我們預計下半年的複蘇將比上半年更多。這就是我們從今年年初開始的預測，也是我們將繼續看到的。所以這是第一。第二，上半年發生的一些離散事件預計不會恢復。 Swamy 談到了我們在第一季度遇到的保修問題。發生的一些商業和解對我們產生了積極影響，我們在第二季度恢復到第一季度，部分恢復到第二季度。然後，隨著我們的前進，我們仍然看到生產計劃的穩定，這對我們有利。但我想，我只是想再次強調，當你帶來我們談論的許多運營改進時，它們需要時間來獲得牽引力。

So you implement a strategy and then you start permutating them across the various divisions and you gain acceleration as you go through. So for example, Swamy touched on our ability to make improvements in our underperforming division in Germany. That's what we're seeing. So those are sequential improvements that we're seeing from H1 into H2. And then obviously, the acquisition of Veoneer comes in the second half of the year with the -- about $1 billion of sales coming in, which does strike a margin as we pointed out by about 20 basis points, which goes the other way.

因此，你實施一個策略，然後開始將它們排列到各個部門，並在執行過程中獲得加速。例如，斯瓦米談到了我們改進表現不佳的德國部門的能力。這就是我們所看到的。因此，這些是我們從 H1 到 H2 看到的連續改進。顯然，Veoneer 的收購是在今年下半年進行的，銷售額約為 10 億美元，正如我們指出的那樣，這確實帶來了約 20 個基點的利潤，而反之亦然。

Got it. And any color on the change in adjusted EBIT now excluding amortization? How big of a factor will that be? And then I wasn't really sure, I think you didn't include it as an adjustment in Q1, Q2 but for the rest of the year, it will be adjustments. So does Q1, Q2 eventually get restated to exclude amortization 2? And will that be driving some of the comparisons we're looking at?

知道了。現在不包括攤銷的調整後息稅前利潤的變化有什麼顏色嗎？這將是一個多大的因素？然後我不太確定，我認為你們沒有將其作為第一季度、第二季度的調整，但在今年剩餘的時間裡，這將是調整。那麼 Q1、Q2 最終是否會重新表述以排除攤銷 2？這會推動我們正在進行的一些比較嗎？

Yes, we're still working through the impacts and take a little bit of time to refine that calculation. But our estimate on an annual basis is about $60 million, so about $30 million in the back half of the year.

是的，我們仍在研究影響，並需要一些時間來完善計算。但我們預計每年約為 6000 萬美元，因此下半年約為 3000 萬美元。

And Colin, that's preliminary. That's part of the reason we're excluding it as well at this point. But just the basis for why we've done it, so you're correct. We -- on a go-forward basis, we're going to exclude it and what we're excluding specifically is acquired purchased intangibles, so the amortization of such amounts. So it's not regular increments. And the reason we're doing it is effectively, we're trying to improve how we manage our businesses. So we have an existing electronics business, roughly the same size as the acquired entity, and we want to manage -- evaluate them, their performance and their execution on an apples-to-apples basis. So that's why we've made the decision to exclude it. The other factor was -- from an investor's perspective, when we're thinking -- if I was sitting in your seat is I want to be able to evaluate how Magna's electronics business is performing versus our peers. And we did an analysis just to make sure we're consistent with our peer group in that regard.

科林，這是初步的。這也是我們目前將其排除在外的部分原因。但這只是我們這樣做的基礎，所以你是對的。我們——在未來的基礎上，我們將排除它，我們具體排除的是購買的無形資產，因此這些金額的攤銷。所以這不是定期增量。我們這樣做的原因是有效的，我們正在努力改善我們的業務管理方式。因此，我們擁有現有的電子業務，其規模與被收購實體的規模大致相同，我們希望在同類的基礎上對其進行管理、評估、績效和執行。這就是我們決定排除它的原因。另一個因素是——從投資者的角度來看，當我們思考時——如果我坐在你的座位上，我希望能夠評估麥格納電子業務相對於同行的表現。我們進行了分析，只是為了確保我們在這方面與同行保持一致。

And just one quick follow up. The $60 million estimate, is that just Veoneer? And -- because I think there's about the 10-K said there'd be around $90 million of amortization just going into the year. So does that also get pulled out, so I'm comparing apples to apples?

只需一個快速跟進。預估 6000 萬美元只是 Veoneer 的價格嗎？而且 - 因為我認為 10-K 表示今年將有大約 9000 萬美元的攤銷。那麼這是否也被刪除了，所以我正在將蘋果與蘋果進行比較？

So you're talking -- we're talking specifically amortization of acquired intangibles. I don't know what the [90] you're referring to is, there's other -- if you're referring back to the cash flow statement, there's other amounts in that 90 , but approximately $60 million is Veoneer .

所以你說的是——我們具體說的是收購的無形資產的攤銷。我不知道你指的 [90] 是什麼，還有其他的——如果你回頭看現金流量表，那 90 裡還有其他金額，但大約 6000 萬美元是 Veoneer 的。

Okay. So that will be the full year charge going forward, $60 million will be pulled out as a special item, kind of...

好的。這將是未來全年的費用，6000 萬美元將作為特殊項目拿出來，有點......

Approximately

大約

Our next question comes from the line of Dan Levy with Barclays.

我們的下一個問題來自巴克萊銀行的 Dan Levy。

First, I wanted to go back to the theme of first half to second half and specifically wanted to focus on Complete Vehicles where I think your guidance is implying the business to be almost breakeven, just very slightly positive. It's a significant deceleration versus the first half. And maybe you can just talk about some of the puts and takes on what's happening in Complete Vehicles in the second half -- does this change the way we should think about the out-year forecast for Complete Vehicles?

首先，我想回到上半年到下半年的主題，特別想關注整車，我認為您的指導意味著業務幾乎達到收支平衡，只是非常積極。與上半場相比，這是一個明顯的減速。也許你可以談談下半年整車領域發生的一些事情——這是否改變了我們對整車全年預測的看法？

It's -- I'm pausing here to answer. When you think about our Complete Vehicles business, you really have to consider a bunch of factors. One is what products are in that facility at that point in time. So in the first half of the year, we were still producing the BMW 5 Series, and that's rolled off. And now we're going into the middle of launching the Fisker program. But what you see more broadly when you think about a European business like Steyr, there is quite a difference in profitability between the first half and the second half of the year, just more broadly. I don't -- we haven't changed our expectations for -- I keep saying Steyr, but our Complete Vehicles business for the full year, we had a few -- we had some positive engineering outcomes in the first half of the year but those were factored in and we get into the second half, we're still pushing towards that, that was margin expectations. So long answer, but I don't see anything unusual in the second half of the year is that we should be reflecting just its launch and put as planned downtime.

這是——我在這裡停下來回答。當您考慮我們的整車業務時，您確實必須考慮很多因素。一是當時該設施中的產品是什麼。所以今年上半年，我們還在生產寶馬5系，而且已經停產了。現在我們即將啟動 Fisker 計劃。但是，當您考慮像斯太爾這樣的歐洲企業時，您會看到更廣泛的情況，上半年和下半年的盈利能力存在很大差異，只是更廣泛而言。我沒有——我們沒有改變我們的期望——我一直說斯太爾，但我們全年的整車業務，我們有一些——我們在上半年取得了一些積極的工程成果但這些都被考慮在內，我們進入下半年，我們仍在努力實現這一目標，這就是利潤率預期。答案很長，但我認為下半年沒有什麼不尋常的地方，那就是我們應該只反映它的發布並按計劃停機。

I mean, we started the year 1% to 2%, we're at 1.6% to 2.1%. So all in, we're actually increasing our outlook in Complete Vehicles.

我的意思是，今年年初我們的增長率是 1% 到 2%，現在是 1.6% 到 2.1%。總而言之，我們實際上正在提高對整車的展望。

Right. And I know that generally, we shouldn't look at the quarter, there is seasonality and whatnot. But -- is that second half, I think you talked about it, is that's specifically being dragged by launch of new programs? Or is there something just timing of input costs?

正確的。我知道，一般來說，我們不應該關注季度，因為存在季節性等等。但是——我想你談到了下半年，是不是特別被新項目的啟動所拖累？或者只是投入成本的時間問題？

No, it's [former] debt. So if you think about what happened, it's primarily the launch, the planned downtime that you have through the summer and then you have another downtime through the December period.

不，這是[以前的]債務。因此，如果您考慮一下發生的事情，主要是發布、整個夏季的計劃停機時間以及整個 12 月期間的另一次停機時間。

And we've expected to have throughout the year.

我們預計全年都會如此。

Which is every single year.

這是每一年。

Okay. All right. So that's not something we should extrapolate going forward?

好的。好的。那麼這不是我們應該推斷的事情嗎？

No, absolutely.

不，絕對是。

Okay. Okay. Great. And second, Swamy, just a question on your vertical integration efforts in EVs. Historically, in EV setting aside LG, you were mostly focused on the drive unit and you outsource motors and inverters. Can you just talk about the supply agreement with Onsemi? Is this a foray into making your own inverters? Or is this just a partnership to get inverters from a third party?

好的。好的。偉大的。其次，Swamy，我想問一下您在電動汽車領域的垂直整合工作。從歷史上看，在電動汽車領域，除了 LG 之外，您主要關注驅動單元，並將電機和逆變器外包。您能簡單談談與 Onsemi 的供貨協議嗎？這是嘗試自己製造逆變器嗎？或者這只是從第三方獲取逆變器的合作夥伴關係？

Yes. I think, Dan, we talked about it a little bit over time, right? In terms of the building blocks and what are some of the key pieces to get to the full eDrive system. Even before the LG JV that you mentioned, we made inverters, and we had the capacity to do that between Magna Powertrain and Magna Electronics growth. So we're just taking one step forward when we talk about Onsemi. It's just looking at whether it is silicon carbide organ or something, just the overall power electronics strategy, how and what should we be doing. So it is just part of that overall strategy. So we always had the ability to do inverters. Now we're just doing it collectively in our LG JV, so this is just further vertical integration to bring value adding to the system. .

是的。我想，丹，我們已經討論過一些了，對吧？就構建模塊以及構建完整 eDrive 系統的一些關鍵部分而言。甚至在您提到的 LG 合資企業之前，我們就生產逆變器，並且我們有能力在麥格納動力總成和麥格納電子的增長之間做到這一點。因此，當我們談論 Onsemi 時，我們只是向前邁出了一步。只是看它是碳化矽風琴還是什麼，只是整體電力電子策略，我們應該怎麼做以及做什麼。所以這只是整體戰略的一部分。所以我們一直有能力做逆變器。現在我們只是在 LG 合資企業中集體進行這件事，所以這只是進一步的垂直整合，為系統帶來增值。 。

Our next question comes from the line of James Picariello with BNP Paribas.

我們的下一個問題來自法國巴黎銀行的 James Picariello。

Just to clarify more of a housekeeping item on the intangibles amortization. Can you just quantify for legacy Magna, what the intangibles amortization amount was for last year, just to have some bearing as to -- I mean, I know it's immaterial, but what was that number?

只是為了澄清更多關於無形資產攤銷的內務項目。您能否量化一下麥格納的遺產，去年的無形資產攤銷金額是多少，只是為了有一些影響——我的意思是，我知道這並不重要，但這個數字是多少？

We'll have to get back to you, James, because it is immaterial. It wouldn't be a big number. If you think -- fundamentally, we haven't done an acquisition of a technology company. So we haven't experienced a situation where you have such a significant amount of acquired technology intangibles and that's really what's driving the $60 million Louis was referring to. But we can get back to you with the exact number, but it's not material.

我們必須回复你，詹姆斯，因為這並不重要。這不會是一個大數字。如果你認為——從根本上來說，我們還沒有收購一家科技公司。因此，我們還沒有遇到過這樣的情況：您擁有如此大量的收購技術無形資產，而這正是路易斯提到的 6000 萬美元的真正驅動力。但我們可以向您回复確切的數字，但這並不重要。

Understood. And then just on Veoneer, it looks like the guide shows $1 billion in revenue and based on the 20 basis points margin dilution impact, about $30 million to $35 million operating loss for the 7 months. If we annualize that, right, for Veoneer, we'd be looking at $1.7 billion in revenue and approximate $60 million operating loss. Just curious if you could kind of bless the thinking on the annualized run rate for Veoneer here?

明白了。然後，就 Veoneer 而言，該指南似乎顯示了 10 億美元的收入，並且基於 20 個基點的利潤稀釋影響，這 7 個月的運營虧損約為 3000 萬至 3500 萬美元。如果我們按年計算，對 Veoneer 來說，我們將看到 17 億美元的收入和大約 6000 萬美元的運營虧損。只是好奇您是否可以對 Veoneer 的年化運行率的想法表示祝福？

Yes. I think maybe there's 2 things to consider. Pat, you can add to it. I think when we bring all of this stuff together, there are synergies in terms of how you look at platforms, how we look at coordinated efforts on some core projects, some purchasing initiatives. So I think it's better maybe in my opinion, to look at run rates going forward from the combined entities rather than look at each one separately. And hopefully, we'll be able to give some color when we talk in September, but all of this will be included when we come back as we're doing all bottoms up the business planning process and will be included when we come out and talk in 2024.

是的。我想也許有兩件事需要考慮。帕特，你可以添加它。我認為，當我們將所有這些東西放在一起時，在您如何看待平台、我們如何看待一些核心項目的協調努力以及一些採購計劃方面，就會產生協同作用。因此，我認為在我看來，更好的是查看合併後實體的未來運行率，而不是單獨查看每個實體。希望我們在9 月份的談話中能夠提供一些信息，但是當我們回來時，所有這些都將被包括在內，因為我們正在做所有自下而上的業務規劃流程，並且當我們出來時，所有這些都將被包括在內2024年再談。

Sorry, James. Does -- I keep in mind what we said earlier about neutral in 2024, right? So that tells us something about the run rate relative to the back half of the year -- neutral.

對不起，詹姆斯。我還記得我們之前所說的 2024 年中性嗎？這告訴我們有關今年下半年運行率的一些信息——中性。

And in the second quarter, just a quick one. Was there any retroactive material recovery tied to the first quarter in the second quarter numbers, particularly in the Body Exteriors & Structures segment?

在第二季度，只是一個快速的。第二季度的數據是否有與第一季度相關的追溯材料回收，特別是在車身外部和結構領域？

Yes. So I think we talked about this earlier, so I'm not going to repeat everything, but the short answer is yes.

是的。所以我想我們之前已經討論過這個問題，所以我不會重複所有內容，但簡短的答案是肯定的。

Okay. You just can't quantify it.

好的。你只是無法量化它。

No. .

不。 。

Our next question comes from the line of Brian Morrison with TD Securities.

我們的下一個問題來自道明證券 (TD Securities) 的布萊恩·莫里森 (Brian Morrison)。

I have a housekeeping question as well. So Pat or Swamy. In prepared comments on net inflationary costs, you said something in the tune of incremental $100 million for 2023 and you'd recover half of that, can you just clarify what the net exposure is now? I know you started the year at $680 million. You made progress in Q1, you did an update on scrap and energy, but start with the $680 and update what's baked into your new guidance and maybe break down what is labor and what's commodity, please? I think labor was about $200 million of your previous forecast.

我也有一個家政問題。所以帕特或斯瓦米。在準備好的關於淨通脹成本的評論中，您提到了 2023 年增量 1 億美元，您將收回其中的一半，您能澄清一下現在的淨風險敞口是多少嗎？我知道你們年初的收入為 6.8 億美元。您在第一季度取得了進展，對廢料和能源進行了更新，但從 680 美元開始，更新新指導中的內容，也許可以細分什麼是勞動力，什麼是商品，好嗎？我認為勞動力約為您之前預測的 2 億美元。

So I think the $680 million, let me break it down was the $530 million coming from 2022, incremental $100 million plus the $50 million scrap. That's how we came to the $680. So what we are looking at the movement in some of the commodities, energy and all the other initiatives that you were working through, we said that $100 million is now $50 million and the scrap, which was $50 million is now $25 million. Yes, I don't know if we can get into the details of how much is labor and how much is the breakdown, it gets combined in terms of all the efforts that I talked about. So it's very difficult to exactly quantify how much and where. We can say that labor is the sticky part and we continue to look at optimizing that going forward, not just from a restructuring today perspective, but as we are launching this business into '24 and '25, how do we manage it? We have to have so much hiring. So the question is, how do you level or normalize what we have now and look at optimizing the hiring, but at the same time, protect the programs and the launches. So it's a little bit of a complex set of variables that we're going through. I don't know, Pat, if you want to add any color to that.

所以我認為 6.8 億美元，讓我細分一下，是 2022 年的 5.3 億美元，增量 1 億美元加上 5,000 萬美元的廢料。這就是我們如何得出 680 美元的價格。因此，我們正在關註一些大宗商品、能源以及你們正在實施的所有其他舉措的變動，我們說 1 億美元現在是 5000 萬美元，廢品從 5000 萬美元現在是 2500 萬美元。是的，我不知道我們是否可以詳細了解多少是勞動力，多少是細分，它是我談到的所有努力的結合。因此，很難準確量化有多少以及在哪裡。我們可以說，勞動力是棘手的部分，我們繼續考慮未來的優化，不僅僅是從今天的重組角度來看，而且當我們在“24”和“25”推出這項業務時，我們如何管理它？我們必須有這麼多的招聘。所以問題是，如何平衡或規範我們現有的資源，並考慮優化招聘，但同時保護項目和啟動。因此，我們正在經歷一組有點複雜的變量。帕特，我不知道你是否想為此添加任何色彩。

That's helpful. So I just wanted this 30 basis points of margin improvement, ex Veoneer. How much of that is related to inflationary impact? It looks like it could be about 10 of the basis points. Is that correct?

這很有幫助。所以我只想將利潤率提高 30 個基點，前 Veoneer。其中有多少與通脹影響有關？看起來可能是大約 10 個基點。那是對的嗎？

Yes. It's probably 10 to 13 basis points, Brian.

是的。布萊恩，可能是 10 到 13 個基點。

Okay. And then last -- I was keeping question on that underperforming BES facility, where you're making great progress. I think you said you were going to -- you're tracking to about half of the 35 basis points. I think it was $140 million drag last year. How much of that do you expect to recover this year? Is it still tracking half and then eliminated in 2024?

好的。最後，我一直對錶現不佳的 BES 設施提出疑問，而你們卻在那裡取得了巨大的進步。我想你說過你會——你正在跟踪 35 個基點的大約一半。我認為去年拖累了 1.4 億美元。您預計今年能恢復多少？是否還在追踪一半，然後在 2024 年被淘汰？

That's correct.

這是正確的。

If there are no further questions, I will now turn the call back to Swamy Kotagiri for closing remarks.

如果沒有其他問題，我現在將把電話轉回給斯瓦米·科塔吉里 (Swamy Kotagiri) 進行結束語。

Thank you, everyone, for listening in today. As you heard from us, we are happy with the continued progress in the second quarter, but we are already looking ahead to keep our focus into the remaining part of the year and launching not just '23, but '24 and '25 and keep the progress going. We look forward to providing an update on the progress of our strategy during our investor event next month. Hoping to see you all there. Have a great day. Thank you.

謝謝大家今天的收聽。正如您從我們那裡聽到的，我們對第二季度的持續進展感到高興，但我們已經展望未來，將重點放在今年剩餘的時間裡，不僅推出“23”，還推出“24”和“25 ”，並繼續進展順利。我們期待在下個月的投資者活動中提供有關我們策略進展的最新信息。希望在那裡見到大家。祝你有美好的一天。謝謝。

Thank you. That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.

謝謝。今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。