SEDAR Interim Financial Statements

MAGNA INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF (LOSS) INCOME [Unaudited] [U.S. dollars in millions, except per share figures] Three months ended March 31, Note 2026 2025 Sales 17 $ 10,381 $ 10,069 Costs and expenses Cost of goods sold 8,958 8,827 Selling, general and administrative 557 539 Depreciation 403 369 Amortization of acquired intangible assets 19 26 Interest expense, net 37 50 Equity income (95) (20) Other expense, net 3 415 53 Income from operations before income taxes 87 225 Income taxes 12 88 72 Net (loss) income (1) 153 Income attributable to non-controlling interests (11) (7) Net (loss) income attributable to Magna International Inc. $ (12) $ 146 (Loss) Earnings per Common Share: 4 Basic $ (0.04) $ 0.52 Diluted $ (0.04) $ 0.52 Cash dividends paid per Common Share $ 0.495 $ 0.485 Weighted average number of Common Shares outstanding during the period [in millions]: 4 Basic 278.1 282.0 Diluted 278.1 282.0 See accompanying notes MAGNA INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Unaudited] [U.S. dollars in millions] Three months ended March 31, Note 2026 2025 Net (loss) income $ (1) $ 153 Other comprehensive (loss) income, net of tax: 14 Net unrealized (loss) gain on translation of net investment in foreign operations (54) 187 Net unrealized (loss) gain on cash flow hedges (6) 49 Reclassification of net (gain) loss on cash flow hedges to net income (13) 16 Pension and post retirement benefits (1) — Reclassification of net loss on pensions to net income — 1 Other comprehensive (loss) income (74) 253 Comprehensive (loss) income (75) 406 Comprehensive income attributable to non-controlling interests (13) (8) Comprehensive (loss) income attributable to Magna International Inc. $ (88) $ 398 See accompanying notes MAGNA INTERNATIONAL INC. CONSOLIDATED BALANCE SHEETS [Unaudited] [U.S. dollars in millions] As at As at March 31, December 31, Note 2026 2025 ASSETS Current assets Cash and cash equivalents 5 $ 1,605 $ 1,612 Accounts receivable 8,215 7,593 Inventories 7 3,964 4,126 Prepaid expenses and other 5, 6 405 407 Assets held for sale 2 316 — 14,505 13,738 Investments 8 1,289 1,103 Fixed assets, net 9,012 9,507 Operating lease right-of-use assets 1,865 1,928 Intangible assets, net 454 490 Goodwill 2,464 2,512 Other assets 9 1,190 1,275 Deferred tax assets 881 864 $ 31,660 $ 31,417 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowing 11 $ 136 $ — Long-term debt due within one year 20 27 Accounts payable 7,216 6,895 Other accrued liabilities 10 2,878 2,745 Accrued salaries and wages 920 888 Income taxes payable 129 106 Current portion of operating lease liabilities 328 328 Liabilities held for sale 2 296 — 11,923 10,989 Long-term debt 11 4,643 4,685 Operating lease liabilities 1,573 1,649 Long-term employee benefit liabilities 530 554 Other long-term liabilities 426 399 Deferred tax liabilities 293 302 19,388 18,578 Shareholders' equity Common Shares [issued: 274,424,550; December 31, 2025 – 280,242,006] 13 3,383 3,352 Contributed surplus 117 142 Retained earnings 9,246 9,765 Accumulated other comprehensive loss 14 (833) (766) 11,913 12,493 Non-controlling interests 6 359 346 12,272 12,839 $ 31,660 $ 31,417 See accompanying notes MAGNA INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF CASH FLOWS [Unaudited] [U.S. dollars in millions] Three months ended March 31, Note 2026 2025 Cash (used for) provided from: OPERATING ACTIVITIES Net (loss) income $ (1) $ 153 Items not involving cu --- rrent cash flows 5 638 394 637 547 Changes in operating assets and liabilities 5 40 (470) Cash provided from operating activities 677 77 INVESTMENT ACTIVITIES Fixed asset additions (219) (268) Acquisitions — (4) Increase in investments, other assets and intangible assets (168) (148) Increase in public and private equity investments (1) (1) Proceeds from dispositions of fixed assets, other assets and investments 82 26 Cash used for investing activities (306) (395) FINANCING ACTIVITIES Issues of debt 11 2 1 Increase in short-term borrowing 143 328 Repayments of debt (10) (7) Issue of Common Shares on exercise of stock options 86 — Tax withholdings on vesting of equity awards (9) (4) Repurchase of Common Shares 13 (440) (51) Dividends (135) (136) Cash (used for) provided by financing activities (363) 131 Effect of exchange rate changes on cash and cash equivalents 8 (1) Net increase (decrease) in cash and cash equivalents during the period 16 (188) Cash and cash equivalents, beginning of period 1,612 1,247 Cash and cash equivalents, end of period 5 $ 1,628 $ 1,059 See accompanying notes MAGNA INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY [Unaudited] [U.S. dollars in millions] Common Shares Contri- Non- Stated buted Retained controlling Total Note Number Value Surplus Earnings AOCL[i] Interest Equity [in millions] Balance, December 31, 2025 280.3 $ 3,352 $ 142 $ 9,765 $ (766) $ 346 $ 12,839 Net (loss) income (12) 11 (1) Other comprehensive (loss) income (76) 2 (74) Shares issued on exercise of stock options 1.6 105 (19) 86 Release of stock and stock units 0.4 21 (21) — Tax withholdings on vesting of equity awards (0.2) (2) (7) (9) Repurchase and cancellation under normal course issuer bid 13 (7.6) (95) (363) 9 (449) Stock-based compensation expense 17 17 Acquisition of non-controlling interest (2) (2) Dividends paid 2 (137) (135) Balance, March 31, 2026 274.5 $ 3,383 $ 117 $ 9,246 $ (833) $ 359 $ 12,272 Common Shares Contri- Non- Stated buted Retained controlling Total Note Number Value Surplus Earnings AOCL[i] Interest Equity [in millions] Balance, December 31, 2024 282.9 $ 3,359 $ 149 $ 9,598 $ (1,584) $ 418 $ 11,940 Net income 146 7 153 Other comprehensive income 252 1 253 Release of stock and stock units 0.2 18 (18) — Tax withholdings on vesting of equity awards (0.1) (1) (3) (4) Repurchase and cancellation under normal course issuer bid 13 (1.3) (16) (38) 2 (52) Stock-based compensation expense 12 12 Dividends paid 2 (138) (136) Balance, March 31, 2025 281.7 $ 3,362 $ 143 $ 9,565 $ (1,330) $ 426 $ 12,166 (i) AOCL is Accumulated Other Comprehensive Loss. See accompanying notes MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 1. SIGNIFICANT ACCOUNTING POLICIES [a] Basis of Presentation The unaudited interim consolidated financial statements of Magna International Inc. and its subsidiaries [collectively "Magna" or the "Company"] have been prepared in U.S. dollars in accordance with accounting principles generally accepted in the United States of America ["GAAP"]. The unaudited interim consolidated financial statements do not conform in all respects to the requirements of GAAP for annual financial statements. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the December 31, 2025 audited consolidated financial statements and notes thereto in --- cluded in the Company's 2025 Annual Report. The unaudited interim consolidated financial statements reflect all adjustments, which consist only of normal and recurring adjustments, necessary to present fairly the financial position as at March 31, 2026 and the results of operations, changes in equity, and cash flows for the three-month periods ended March 31, 2026 and 2025. [b] Use of Estimates The preparation of the unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the interim consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 2. ASSETS AND LIABILITIES HELD FOR SALE Sale of Lighting Business During the first quarter of 2026, the Company entered into a definitive agreement to sell its European Lighting business to Mutares SE & Co. KGaA (“Lighting Europe Agreement”). As of March 31, 2026, the Company committed to a plan to sell its Lighting business in North America, South America, and China. Subsequent to March 31, 2026, the Company entered into a definitive agreement with AURELIUS Investment Lux Alpha SARL to sell the business (“Lighting Rest of World Agreement”). Sale of Rooftop Systems Business During the first quarter of 2026, the Company entered into a definitive agreement to sell its Rooftop Systems business to Mutares SE & Co. KGaA (“Rooftop Systems Agreement”). Held for sale classification The Company determined that the assets and liabilities of its Lighting and Rooftop Systems businesses met the criteria to be classified as held for sale as of March 31, 2026. These businesses are reported within the Company’s Power & Vision segment and did not meet the criteria to be classified as discontinued operations. The transactions are expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals. Accordingly, the held for sale assets and liabilities of the Lighting and Rooftop Systems businesses were reclassified in the consolidated balance sheet at March 31, 2026 to current assets held for sale or current liabilities held for sale, respectively, as the sale of such assets and liabilities is expected within one year. The following table summarizes the carrying value of the major classes of assets and liabilities of the Lighting and Rooftop Systems businesses which were classified as held for sale as of March 31, 2026, after giving effect to the loss on assets held for sale recorded in the first quarter of 2026. Refer to Note 3[a]. Other Expense, net for additional information. March 31, 2026 Rooftop Lighting Systems Total Accounts receivable $ 165 $ 8 $ 173 Inventories 77 6 83 Income taxes receivable 12 — 12 Prepaid expenses and other 13 — 13 Deferred tax assets 35 — 35 Assets held for sale $ 302 $ 14 $ 316 Accounts payable $ 180 $ 9 $ 189 Accrued salaries and wages 24 4 28 Other accrued liabilities 14 15 29 Current lease liabilities 6 2 8 Long-term employee benefit liabilities 8 3 11 Long-term lease liabilities 25 6 31 Liabilities held for sale $ 257 $ 39 $ 296 MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless --- otherwise noted] 3. OTHER EXPENSE, NET Three months ended March 31, 2026 2025 Loss on assets held for sale [a] $ 485 $ — Restructuring activities [b] 26 44 Investments [c] (96) 9 $ 415 $ 53 [a] Loss on assets held for sale Sale of Lighting Business Under the terms of the Lighting Europe Agreement, the Company is required to provide the buyer with an agreed upon amount of funding. Fair value less costs to sell was determined to be negative $23 million, resulting in an impairment loss of $73 million [$73 million after tax]. Under the terms of the Lighting Rest of World Agreement, fair value less costs to sell was determined to be $66 million, resulting in an impairment loss of $345 million [$312 million after tax]. Sale of Rooftop Systems Business Under the terms of the Rooftop Systems Agreement, the Company is required to provide the buyer with an agreed upon amount of funding. Fair value less costs to sell was determined to be negative $25 million, resulting in an impairment loss of $67 million [$67 million after tax]. The following table summarizes the adjustments recognized to the major classes of assets as of March 31, 2026: March 31, 2026 Rooftop Lighting Systems Total Accounts receivable $ 81 $ 13 $ 94 Inventories 51 26 77 Fixed assets, net 225 12 237 Operating lease, right-of-use-assets 22 7 29 Intangibles, net 3 4 7 Goodwill[i] 21 — 21 Other Assets 13 5 18 Total asset impairment $ 416 $ 67 $ 483 Costs to sell incurred during the first quarter of 2026 $ 2 $ — $ 2 Total impairment loss $ 418 $ 67 $ 485 [i] $21 million of goodwill was allocated to the Lighting business in North America, South America, and China from the Mechatronics, Mirrors and Lighting reporting unit based on its relative fair value. [b] Restructuring activities In the first quarter of 2026, the Company recorded restructuring charges of $21 million [$20 million after tax] in its Complete Vehicles segment related to rightsizing activities at a facility in Europe, and $5 million [$5 million after tax] in its Power & Vision segment related to plant closures and consolidations at facilities in Europe. In the first quarter of 2025, the Company recorded restructuring charges of $33 million [$33 million after tax] in its Complete Vehicles segment related to rightsizing activities at a facility in Europe, and $11 million [$11 million after tax] in its Power & Vision segment related to significant rightsizing activities and plant consolidations at facilities in Europe. MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 3. OTHER EXPENSE, NET (CONTINUED) [c] Investments Three months ended March 31, 2026 2025 Net revaluation (gain) loss on public and private equity investments $ (110) $ 2 Non-cash impairment charge 14 — Revaluation loss on public company warrants — 8 Gain on sales of public equity investments — (1) Other (income) expense, net (96) 9 Tax effect — (1) Net (gain) loss attributable to Magna $ (96) $ 8 During the first quarter of 2026, the Company recorded an unrealized gain of $108 million [$108 million after tax] resulting from the revaluation of its existing private equity investment in Waymo LLC ("Waymo") following Waymo's completion of a new financing round. The non-cash impairment charge relates to the impairment of a private equity investment. MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [Al --- l amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 4. EARNINGS PER SHARE Three months ended March 31, 2026 2025 Basic (loss) earnings per Common Share: Net (loss) income attributable to Magna International Inc. $ (12) $ 146 Weighted average number of Common Shares outstanding 278.1 282.0 Basic (loss) earnings per Common Share $ (0.04) $ 0.52 Diluted (loss) earnings per Common Share [a]: Net (loss) income attributable to Magna International Inc. $ (12) $ 146 Weighted average number of Common Shares outstanding 278.1 282.0 Stock options and share awards — — 278.1 282.0 Diluted (loss) earnings per Common Share $ (0.04) $ 0.52 [a] For the three months ended March 31, 2026, diluted earnings per Common Share excluded 5.3 million [2025 – 5.8 million] Common Shares issuable under the Company's stock-based compensation plans because the effect of including them would have been anti-dilutive. The dilutive effect of participating securities using the two-class method was excluded from the calculation of earnings per share because the effect would be immaterial. MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 5. DETAILS OF CASH FROM OPERATING ACTIVITIES [a] Cash and cash equivalents consist of: March 31, December 31, 2026 2025 Cash $ 747 $ 960 Bank term deposits and bankers' acceptances 858 652 Cash and cash equivalents $ 1,605 $ 1,612 Restricted cash equivalents included in prepaid expenses and other [note 6] 23 — $ 1,628 $ 1,612 [b] Items not involving current cash flows: Three months ended March 31, 2026 2025 Depreciation $ 403 $ 369 Amortization of acquired intangible assets 19 26 Amortization of other assets and intangible assets included in cost of goods sold 59 51 Deferred revenue amortization (100) (57) Other non-cash charges 4 13 Deferred tax recovery (50) (23) Dividends received (less than) in excess of equity income (84) 6 Non-cash portion of Other expense, net [note 3] 387 9 $ 638 $ 394 [c] Changes in operating assets and liabilities: Three months ended March 31, 2026 2025 Accounts receivable $ (733) $ (696) Inventories (28) 39 Prepaid expenses and other 12 (10) Accounts payable 537 70 Accrued salaries and wages 69 7 Other accrued liabilities 174 185 Income taxes payable (receivable) 9 (65) $ 40 $ (470) MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 6. ACQUISITION OF NON-CONTROLLING INTEREST On August 29, 2025, the Company acquired the non-controlling 35% interest in a consolidated subsidiary, increasing the Company’s interest to 100%. The total purchase price was $143 million, of which $122 million was paid in 2025. The remaining $21 million was deposited into escrow during the first quarter of 2026 and is included in prepaid expenses and other. The acquisition was accounted for as an equity transaction, and resulted in a reduction to the Company’s non- controlling interest of $99 million and contributed surplus of $44 million. 7. INVENTORIES Inventories consist of: March 31, December 31, 2026 2025 Raw materials and supplies $ 1,576 $ 1,647 Work-in-process 471 484 Finished goods 608 661 Tooling and engineering 1,309 1,334 $ 3,964 $ 4,126 Tooling and engineering inventory represents costs incurred on tooling and engineering services contracts in ex --- cess of billed and unbilled amounts included in accounts receivable. 8. INVESTMENTS March 31, December 31, 2026 2025 Equity method investments $ 947 $ 846 Public and private equity investments 316 225 Debt investments 26 32 $ 1,289 $ 1,103 Cumulative unrealized gains and losses on equity securities held as at March 31, 2026 were $122 million and $11 million [$19 million and $18 million as at December 31, 2025], respectively. 9. OTHER ASSETS Other assets consist of: March 31, December 31, 2026 2025 Preproduction costs related to long-term supply agreements $ 742 $ 759 Long-term receivables 223 286 Pension overfunded status 75 75 Unrealized gain on cash flow hedges 79 83 Other, net 71 72 $ 1,190 $ 1,275 MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 10. WARRANTY The following is a continuity of the Company's warranty accruals: 2026 2025 Balance, beginning of period $ 383 $ 309 Expense, net 28 55 Settlements (36) (51) Transfer to liabilities held for sale [note 2] (5) — Foreign exchange and other — 5 Balance, March 31 $ 370 $ 318 11. DEBT Short-term borrowings [a] Commercial Paper Program As at March 31, 2026, $135 million [no amounts outstanding as at December 31, 2025] of notes were outstanding under the U.S. commercial paper program, with a weighted average interest rate of 4.19%. The U.S. notes are backstopped by the Company's existing global credit facility. As at March 31, 2026, no notes were outstanding under the euro-commercial paper program [no amounts outstanding as at December 31, 2025]. [b] Credit Facilities On April 22, 2026, the Company extended the maturity date of its $800 million 364-day syndicated revolving credit facility from June 24, 2026, to June 24, 2027. The facility can be drawn in U.S. dollars or Canadian dollars. As at March 31, 2026, no amounts are outstanding under this credit facility. Long-term borrowings [a] Global Credit Facility On April 22, 2026, the Company extended the maturity date of its $2.7 billion syndicated revolving credit facility from June 25, 2030 to June 25, 2031. As at March 31, 2026, no amounts are outstanding under this credit facility. [b] Term Loan Facilities On January 12, 2026, the Company’s $350 million 3-year tranche syndicated, unsecured, delayed draw term loan facility expired with no amount drawn. 12. INCOME TAXES For the three months ended March 31, 2026, the Company’s effective income tax rate does not reflect the customary rate primarily due to the loss on assets held for sale and revaluations of investments described in note 3. For the three months ended March 31, 2025, the Company’s effective income tax rate does not reflect the customary rate due to higher losses not benefited in Europe. MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 13. CAPITAL STOCK [a] During the first quarter of 2026, the Company repurchased 7.6 million shares under a normal course issuer bid for cash consideration of $440 million. [b] The following table presents the maximum number of shares that would be outstanding if all the dilutive instruments outstanding at April 30, 2026 were exercised or converted: Common Shares 272,224,550 Stock options [i] and share awards 4,559,643 276,784,193 [i] Options to purchase Common Shares are exercisable by the --- holder in accordance with the vesting provisions and upon payment of the exercise price as may be determined from time to time pursuant to the Company's stock option plans. 14. ACCUMULATED OTHER COMPREHENSIVE LOSS The following is a continuity schedule of accumulated other comprehensive loss: 2026 2025 Accumulated net unrealized loss on translation of net investment in foreign operations Balance, beginning of period $ (802) $ (1,368) Net unrealized (loss) gain (56) 186 Repurchase of shares under normal course issuer bid 9 2 Balance, March 31 (849) (1,180) Accumulated net unrealized gain (loss) on cash flow hedges [i] Balance, beginning of period 99 (113) Net unrealized (loss) gain (6) 49 Reclassifications to net income (13) 16 Balance, March 31 80 (48) Accumulated net unrealized loss on other long-term liabilities Balance, beginning of period (65) (103) Revaluation (1) — Reclassifications to net income — 1 Balance, March 31 (66) (102) Accumulated net unrealized gain on available-for-sale investments Balance, beginning of period 2 — Balance, March 31 2 — Total accumulated other comprehensive loss $ (833) $ (1,330) [i] The amount of income tax expense that has been netted in the accumulated net unrealized (loss) gain on cash flow hedges is as follows: 2026 2025 Balance, beginning of period $ (39) $ 44 Net unrealized gain (loss) 3 (17) Reclassifications to net income 4 (7) Balance, March 31 $ (32) $ 20 The amount of other comprehensive gain that is expected to be reclassified to net income over the next 12 months is $75 million. MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 15. FINANCIAL INSTRUMENTS [a] Financial assets and liabilities The Company's financial assets and financial liabilities consist of the following: March 31, December 31, 2026 2025 Financial assets Cash and cash equivalents $ 1,605 $ 1,612 Restricted cash equivalents included in prepaid expenses and other [note 6] 23 — Accounts receivable 8,215 7,593 Public and private equity investments 316 225 Debt investments 26 32 Long-term receivables included in other assets 223 286 Financial assets held for sale [note 2] Accounts receivable held for sale 173 — $ 10,581 $ 9,748 Financial liabilities Short-term borrowing $ 136 $ — Long-term debt (including current portion) 4,663 4,712 Operating lease liability (including current portion) 1,901 1,977 Accounts payable 7,216 6,895 Financial liabilities held for sale [note 2] Accounts payable held for sale 189 — $ 14,105 $ 13,584 Foreign currency contracts designated as effective hedges, measured at fair value Prepaid expenses $ 97 $ 98 Other assets 79 83 Other accrued liabilities (27) (19) Other long-term liabilities (40) (19) $ 109 $ 143 [b] Supplier financing program The Company has supplier financing programs with third-party financial institutions that provide financing to suppliers that provide tooling related materials. These arrangements allow these suppliers to elect to be paid by a financial institution at a discount earlier than the maturity date of the receivable, which may extend from 6 to 18 months. The Company pays the full amount owing to the financial institution on the maturity dates. Amounts outstanding under these programs as at March 31, 2026 were $92 million [$116 million as at December 31, 2025] and are presented within accounts payable. [c] Fair value The Company determines the estimat --- ed fair values of its financial instruments based on valuation methodologies it believes are appropriate; however, considerable judgment is required to develop these estimates. Accordingly, these estimated fair values are not necessarily indicative of the amounts the Company could realize in a current market exchange. The estimated fair value amounts can be materially affected by the use of different assumptions or methodologies. The methods and assumptions used to estimate the fair value of financial instruments are described below: Cash and cash equivalents, restricted cash equivalents, accounts receivable, accounts payable and short-term borrowings Due to the short period to maturity of the instruments, the carrying values as presented in the consolidated balance sheets are reasonable estimates of fair values. MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 15. FINANCIAL INSTRUMENTS (CONTINUED) Publicly traded and private equity securities The fair value of the Company’s investments in publicly traded equity securities is determined using the closing price on the measurement date, as reported on the stock exchange on which the securities are traded [Level 1 input based on the GAAP fair value hierarchy]. The Company estimates the value of its private equity securities based on valuation methods using the observable transaction price at the transaction date and other observable inputs including rights and obligations of the securities held by the Company [Level 3 input based on the GAAP fair value hierarchy]. Senior Notes At March 31, 2026, the net book value and the estimated fair value of the Company’s Senior Notes were $4.6 billion. The fair value of our Senior Notes are classified as Level 1 when quoted prices in active markets are available and Level 2 when the quoted prices are from less active markets or when other observable inputs are used to determine fair value. [d] Credit risk The Company's financial assets that are exposed to credit risk consist primarily of cash and cash equivalents, accounts receivable, debt investments, and foreign exchange and commodity forward contracts with positive fair values. Cash and cash equivalents, which consist of short-term investments, are only invested in bank term deposits and bank commercial paper with an investment grade credit rating. Credit risk is further reduced by limiting the amount which is invested in certain major financial institutions. The Company is also exposed to credit risk from the potential default by any of its counterparties on its foreign exchange forward contracts. The Company mitigates this credit risk by dealing with counterparties who are major financial institutions that the Company anticipates will satisfy their obligations under the contracts. In the normal course of business, the Company is exposed to credit risk from its customers, substantially all of which are in the automotive industry and are subject to credit risks associated with the automotive industry. For the three months ended March 31, 2026, sales to the Company's six largest customers represented 76% of the Company's total sales; and substantially all of its sales are to customers with which the Company has ongoing contractual relationships. The Company conducts business with newer electric vehicle-focused customers, which poses incremental credit risk due to their rela --- tively short operating histories; limited financial resources; less mature product development and validation processes; uncertain market acceptance of their products/services; and untested business models. These factors may elevate the Company’s risks in dealing with such customers, particularly with respect to recovery of: pre- production (including tooling, engineering, and launch) and production receivables; inventory; fixed assets and capitalized preproduction expenditures; as well as other third party obligations related to such items. As at March 31, 2026, the Company’s balance sheet exposure related to newer electric vehicle-focused customers was approximately $200 million [$200 million as at December 31, 2025] and sales to these customers represented less than 5% of the Company’s total sales. In determining the allowance for expected credit losses, the Company considers changes in customers’ credit ratings, liquidity, customers’ historical payments and loss experience, current economic conditions, and the Company's expectations of future economic conditions. MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 15. FINANCIAL INSTRUMENTS (CONTINUED) [e] Interest rate risk The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetary current assets and current liabilities. In particular, the amount of interest income earned on cash and cash equivalents is impacted more by investment decisions made and the demands to have available cash on hand, than by movements in interest rates over a given period. The Company is exposed to interest rate risk on its Term Loans as the interest rate is variable, however the Company is not exposed to interest rate risk on Senior Notes as the interest rates are fixed. [f] Currency risk and foreign exchange contracts The Company is exposed to fluctuations in foreign exchange rates when manufacturing facilities have committed to the delivery of products for which the selling price has been quoted in currencies other than the facilities' functional currency, and when materials and equipment are purchased in currencies other than the facilities' functional currency. In an effort to manage this net foreign exchange exposure, the Company employs hedging programs, primarily through the use of foreign exchange forward contracts. At March 31, 2026, the Company had outstanding foreign exchange forward contracts representing commitments to buy and sell various foreign currencies. Significant commitments are as follows: For Canadian dollars For U.S. dollars For Euros Weighted Mexican Weighted Weighted Czech Weighted U.S. dollar average Peso average U.S. dollar average Koruna average amount rate amount rate amount rate Amount rate Buy 193 1.34464 23,931 0.04871 1,505 0.84526 13,138 0.03978 (Sell) (1,755) 0.74534 (74) 20.21642 (1,617) 1.17936 — — Forward contracts mature at various dates through 2030. Foreign currency exposures are reviewed quarterly. MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 16. CONTINGENCIES From time to time, the Company may become involved in regulatory proceedings, or become liable for legal, contractual and other claims by various parties, including customers, suppliers, former employees, cl --- ass action plaintiffs and others. On an ongoing basis, the Company attempts to assess the likelihood of any adverse judgements or outcomes to these proceedings or claims, together with potential ranges of probable costs and losses. A determination of the provision required, if any, for these contingencies is made after analysis of each individual issue. The required provision may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. In the third quarter of 2025, Ford initiated recalls covering approximately 3.8 million vehicles equipped with rearview cameras or image processing modules supplied by the Company. Ford also announced a new 15-year extended warranty program for up to approximately 14.9 million vehicles also equipped with rearview cameras supplied by us. Ford is claiming approximately $288 million in costs related to these recalls and warranty claims. Additional recalls and/or extended warranty programs remain possible. The Company is in technical and commercial discussions with Ford, however, at this time, root cause determinations have not been made and/or confirmed for the vehicles covered by Ford’s recalls and warranty extension program. Even after root cause(s) have been determined, other challenges make it difficult to fully quantify the Company’s potential financial exposure, if any. These challenges include: integration with other vehicle systems and non- camera components; the age of affected vehicles; duration of the original warranty; number of affected vehicles brought to Ford dealers for inspection; and dealer discretion to determine the nature of the remedy to be applied, which may range from software upgrades, inspection of the rearview camera and other components, repairs, or replacement of the rearview camera. In the absence of certainty as to the scope of potentially affected vehicles, the root cause(s) of the alleged product failures, and/or the related costs of service actions, the Company is unable to fully estimate its potential exposure, if any, for recall-related costs and the extension of product warranties by Ford to affected vehicle owners. If the Company is determined to be fully or partially responsible for defective rearview cameras, any recall and extended warranty costs in excess of amounts accrued could be material to the Company’s profitability in the period(s) in which such costs are recognized or provided for. As a result of the bankruptcy of Fisker, Inc., owners of Fisker Ocean SUVs have asserted claims for alleged vehicle defects and breaches of state “lemon laws” against J.P. Morgan Chase, N.A. [“Chase”], the direct financer of approximately 2,000 such vehicles in the United States. Chase has indicated that it will seek indemnification from the Company, as contract manufacturer, for damages and legal costs incurred with the resolution of these claims. The Company has insufficient information to determine the existence or extent of potential liability, if any, related to this matter at this time. MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 17. SEGMENTED INFORMATION Magna is a global automotive supplier which has complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, pow --- ertrain, active driver assistance, electronics, mirrors & lighting, mechatronics, and roof systems. The Company is organized under four operating segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. These segments have been determined on the basis of technological opportunities, product similarities, market and operating factors, and are also the Company's reportable segments. The Company's chief operating decision maker is the Chief Executive Officer. The chief operating decision maker uses Adjusted Earnings before Interest and Income Taxes ["Adjusted EBIT"] as the measure of segment profit or loss, since management believes Adjusted EBIT is the most appropriate measure of operational profitability or loss for its reporting segments. The chief operating decision maker uses Adjusted EBIT to assess operating performance, allocate resources, and to help plan the Company's long-term strategic direction and future global growth. Adjusted EBIT is calculated by taking Net income and adding back Amortization of acquired intangible assets, Income taxes, Interest expense, net and Other expense (income), net. [a] The following tables show segment information for the Company's reporting segments and a reconciliation of Adjusted EBIT to the Company's consolidated net income: Three months ended March 31, 2026 Fixed Total External Adjusted Equity asset sales sales EBIT [ii] Depreciation income additions Body Exteriors & Structures $ 4,079 $ 4,018 $ 274 $ 206 $ (1) $ 87 Power & Vision 3,881 3,801 252 145 (84) 95 Seating Systems 1,340 1,335 25 25 (10) 18 Complete Vehicles 1,224 1,219 32 19 — 11 Corporate & Other [i] (143) 8 (25) 8 — 8 Total Reportable Segments $ 10,381 $ 10,381 $ 558 $ 403 $ (95) $ 219 Three months ended March 31, 2025 Fixed Total External Adjusted Equity asset sales sales EBIT [ii] Depreciation income additions Body Exteriors & Structures $ 3,966 $ 3,908 $ 230 $ 184 $ (1) $ 129 Power & Vision 3,646 3,575 124 135 (14) 104 Seating Systems 1,312 1,310 (30) 25 (4) 17 Complete Vehicles 1,276 1,267 44 18 (1) 12 Corporate & Other [i] (131) 9 (14) 7 — 6 Total Reportable Segments $ 10,069 $ 10,069 $ 354 $ 369 $ (20) $ 268 [i] Included in Corporate & Other Adjusted EBIT are intercompany fees charged to the automotive segments. [ii] The following table reconciles Net income to Adjusted EBIT: Three months ended March 31, 2026 2025 Net income $ (1) $ 153 Add: Amortization of acquired intangible assets 19 26 Interest expense, net 37 50 Other expense, net 415 53 Income taxes 88 72 Adjusted EBIT $ 558 $ 354 MAGNA INTERNATIONAL INC. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS [Unaudited] [All amounts in U.S. dollars and all tabular amounts in millions unless otherwise noted] 17. SEGMENTED INFORMATION (CONTINUED) Other segment items constitute the difference between External sales by segment and Adjusted EBIT by segment, and are comprised of cost of goods sold, selling, general, and administrative expenses, depreciation, and equity income. No significant expense categories are being provided to the chief operating decision maker on a regular basis. [b] The following table shows segment information for Goodwill, Investments, and Net Assets for the Company's reporting segments: March 31, 2026 December 31, 2025 Goodwill Investments Net Assets Goodwill Investments Net Assets Body Exteriors & Structures $ 458 $ 26 $ 8,584 $ 461 $ 24 $ 8,725 Power & Vision [i] 1,613 628 6,379 1,654 524 6,699 Seating Systems 26 --- 1 217 1,338 260 226 1,372 Complete Vehicles 113 116 421 116 115 471 Corporate & Other 19 302 1,062 21 214 1,029 Total Reportable Segments $ 2,464 $ 1,289 $ 17,784 $ 2,512 $ 1,103 $ 18,296 [i] Includes $20 million of net assets held for sale [c] The following table reconciles Total Assets to Net Assets: March 31, December 31, 2026 2025 Total Assets $ 31,660 $ 31,417 Deduct assets not included in segment net assets: Cash and cash equivalents (1,605) (1,612) Deferred tax assets (881) (864) Long-term receivables from joint venture partners (84) (117) Assets held for sale (47) — Deduct liabilities included in segment net assets: Accounts payable (7,216) (6,895) Accrued salaries and wages (920) (888) Other accrued liabilities (2,878) (2,745) Liabilities held for sale (245) — Segment Net Assets $ 17,784 $ 18,296 18. SUBSEQUENT EVENT Normal Course Issuer Bid Subsequent to March 31, 2026, the Company purchased 2,300,000 Common Shares for cancellation under its existing normal course issuer bid for cash consideration of $136 million.