Magna Reports Record Third Quarter Results
Magna International Inc. (TSX: MG; NYSE: MGA) today reported
financial results for the third quarter ended September 30,
2018. Please click HERE for full third quarter
Financial Statements and MD&A.
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THREE MONTHS ENDED SEPTEMBER 30, |
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NINE MONTHS ENDED SEPTEMBER 30, |
|
|
2018 |
|
2017(2) |
|
2018 |
|
2017(2) |
Reported |
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|
|
|
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|
|
|
|
Sales |
|
$ |
9,618 |
|
|
$ |
8,864 |
|
|
$ |
30,690 |
|
|
$ |
26,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations before income taxes |
|
$ |
674 |
|
|
$ |
683 |
|
|
$ |
2,344 |
|
|
$ |
2,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Magna International Inc. |
|
$ |
554 |
|
|
$ |
512 |
|
|
$ |
1,840 |
|
|
$ |
1,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
$ |
1.62 |
|
|
$ |
1.38 |
|
|
$ |
5.22 |
|
|
$ |
4.33 |
|
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|
|
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Non-GAAP Financial Measures(1) |
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|
|
|
|
|
|
|
|
|
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Adjusted EBIT |
|
$ |
699 |
|
|
$ |
705 |
|
|
$ |
2,377 |
|
|
$ |
2,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share |
|
$ |
1.56 |
|
|
$ |
1.39 |
|
|
$ |
5.08 |
|
|
$ |
4.36 |
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|
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All results are reported in millions of U.S. dollars,
except per share figures, which are in U.S.
dollars.(1) Adjusted EBIT, Adjusted diluted earnings
per share and Adjusted EBIT as a percentage of sales are Non-GAAP
financial measures that have no standardized meaning under U.S.
GAAP, and as a result may not be comparable to the calculation of
similar measures by other companies. A reconciliation of these
Non-GAAP financial measures is included in the back of this press
release. |
(2) 2017 amounts included in this Press Release have been
adjusted for our adoption of the new revenue standard (Accounting
Standards Codification 606) and recast for our new reportable
segments. |
THREE MONTHS ENDED SEPTEMBER 30, 2018
We set third quarter records for sales, diluted
earnings per share and Adjusted diluted earnings per share, and
returned $629 million to shareholders through share repurchases and
dividends. All of our operating segments reported sales growth
compared to the third quarter of 2017 and, excluding both
acquisitions net of divestitures and foreign exchange movements,
sales for all segments outgrew global light vehicle production.
However, our sales were slightly lower than we had anticipated,
mainly due to lower than expected light vehicle production.
Adjusted EBIT was below the comparable quarter in 2017 and was less
than what we expected. After taking into account the impact
of lower than anticipated volumes, our Power & Vision, Seating
Systems and Complete Vehicles segments performed substantially in
line with our expectations. However, our Body Exteriors &
Structures segment reported results below our expectations, mainly
as a result of higher than anticipated launch costs and
underperformance at certain facilities, largely offset by a
favourable customer pricing resolution.
On a consolidated basis, we posted sales of
$9.62 billion for the third quarter of 2018, an increase of 9% over
the third quarter of 2017. The strong growth was achieved in a
period in which light vehicle production increased 4% in North
America and was essentially unchanged in Europe. Excluding the
impact of foreign currency translation and net divestitures, sales
increased 11% on a consolidated basis, and by segment: 6% in both
Body Exteriors & Structures and Power & Vision, 5% in
Seating Systems, and 50% in Complete Vehicles.
Adjusted EBIT of $699 million in the third
quarter of 2018 decreased 1.0%, resulting in an adjusted EBIT as a
percentage of sales of 7.3% in the third quarter of 2018 compared
to 8.0% in the third quarter of 2017. This margin decline was
largely driven by:
- an increase in the proportion of
sales generated in our Complete Vehicles segment relative to total
sales, which have a significantly lower margin than our
consolidated average;
- lower margins in the third quarter
of 2018 in our Seating Systems segment, mainly associated with
pre-operating costs incurred at new facilities and favourable
customer pricing resolutions in the third quarter of 2017; and
- lower margins in our Power &
Vision segment, largely reflecting increased spending for
electrification and autonomy.
Income from operations before income taxes of
$674 million decreased 1.0% in the third quarter of 2018.
Net income attributable to Magna International
Inc. increased 8% to $554 million for the third quarter of 2018,
substantially reflecting a lower income tax rate.
Diluted earnings per share increased 17% to
$1.62 in the third quarter of 2018, reflecting higher net income
attributable to Magna International Inc., and the favourable impact
of a reduced share count. Adjusted diluted earnings per share
increased 12% to $1.56 compared to $1.39 for the third quarter of
2017.
In the third quarter of 2018, we generated cash
from operations before changes in operating assets and liabilities
of $899 million, and $177 million in operating assets and
liabilities. Investment activities for the third quarter of 2018
included $381 million in fixed asset additions, and a $114 million
increase in investments, other assets and intangible assets.
NINE MONTHS ENDED SEPTEMBER 30, 2018
We posted sales of $30.69 billion for the nine
months ended September 30, 2018, an increase of 14% from the nine
months ended September 30, 2017. North American light vehicle
production remained relatively unchanged and European light vehicle
production increased 2%, in the first nine months of 2018 compared
to the first nine months of 2017.
During the nine months ended September 30, 2018,
income from operations before income taxes was $2.34 billion, net
income attributable to Magna International Inc. was $1.84 billion
and diluted earnings per share was $5.22, increases of $124
million, $203 million and $0.89, respectively, each compared to the
first nine months of 2017.
During the nine months ended September 30, 2018,
Adjusted EBIT increased 4% to $2.38 billion, compared to $2.28
billion for the nine months ended September 30, 2017. Our
Body Exteriors & Structures, Power & Vision, and Complete
Vehicles segments each posted higher Adjusted EBIT compared to the
first nine months of 2017.
During the nine months ended September 30, 2018,
we generated cash from operations before changes in operating
assets and liabilities of $2.87 billion, and invested $750 million
in operating assets and liabilities. Investment activities for the
nine months of 2018 included $1.00 billion in fixed asset
additions, and $331 million in investments, other assets and
intangible assets.
RETURN OF CAPITAL TO
SHAREHOLDERS
During the three and nine months ended September
30, 2018, we paid dividends of $109 million and $342 million,
respectively. In addition, we repurchased 9.2 million shares
for $520 million and 22.7 million shares for $1.35 billion,
respectively, for the three and nine months ended September 30,
2018.
Our Board of Directors declared a quarterly
dividend of $0.33 with respect to our outstanding Common
Shares for the quarter ended September 30, 2018. This dividend is
payable on December 7, 2018 to shareholders of record on November
23, 2018.
OTHER MATTERS
Subject to the approval by the Toronto Stock Exchange and the
New York Stock Exchange, our Board of Directors approved a new
Normal Course Issuer Bid ("NCIB") to purchase up to 33.2 million of
our Common Shares, representing approximately 10% of our public
float of Common Shares. This NCIB is expected to commence on or
about November 15, 2018 and will terminate one year later.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/6dd59a22-822f-444c-b864-78e2f6a7068f
SEGMENT SUMMARY(2)
($Millions unless
otherwise noted) |
For the three months ended September 30, |
Sales |
|
Adjusted EBIT |
|
|
2018 |
|
|
2017 |
|
Change |
|
|
2018 |
|
2017 |
Change |
|
Body Exteriors & Structures |
$ |
4,180 |
|
$ |
4,004 |
|
$ |
176 |
|
$ |
322 |
$ |
306 |
$ |
16 |
|
Power & Vision |
|
2,947 |
|
|
2,830 |
|
|
117 |
|
|
258 |
|
267 |
|
(9 |
) |
Seating Systems |
|
1,219 |
|
|
1,217 |
|
|
2 |
|
|
69 |
|
95 |
|
(26 |
) |
Complete Vehicles |
|
1,391 |
|
|
938 |
|
|
453 |
|
|
24 |
|
17 |
|
7 |
|
Corporate and Other |
|
(119 |
) |
|
(125 |
) |
|
6 |
|
|
26 |
|
20 |
|
6 |
|
Total
Reportable Segments |
$ |
9,618 |
|
$ |
8,864 |
|
$ |
754 |
|
$ |
699 |
$ |
705 |
$ |
(6 |
) |
|
For the three months ended September 30, |
|
|
Adjusted EBIT as a percentage of
sales |
|
|
|
|
|
|
2018 |
|
|
2017 |
|
Change |
|
Body Exteriors & Structures |
|
|
|
|
|
7.7 |
% |
|
7.6 |
% |
|
0.1 |
% |
Power & Vision |
|
|
|
|
|
8.8 |
% |
|
9.4 |
% |
|
(0.6 |
)% |
Seating Systems |
|
|
|
|
|
5.7 |
% |
|
7.8 |
% |
|
(2.1 |
)% |
Complete Vehicles |
|
|
|
|
|
1.7 |
% |
|
1.8 |
% |
|
(0.1 |
)% |
|
|
|
|
|
|
|
|
Consolidated Average |
|
|
|
|
|
7.3 |
% |
|
8.0 |
% |
|
(0.7 |
)% |
|
|
($Millions unless
otherwise noted) |
For the nine months ended September 30, |
Sales |
|
Adjusted EBIT |
|
|
2018 |
|
|
2017 |
|
Change |
|
|
|
2018 |
|
|
2017 |
|
Change |
|
Body Exteriors & Structures |
$ |
13,350 |
|
$ |
12,280 |
|
$ |
1,070 |
|
|
$ |
1,047 |
|
$ |
992 |
|
$ |
55 |
|
Power & Vision |
|
9,334 |
|
|
8,685 |
|
|
649 |
|
|
|
915 |
|
|
861 |
|
|
54 |
|
Seating Systems |
|
4,113 |
|
|
3,919 |
|
|
194 |
|
|
|
315 |
|
|
328 |
|
|
(13 |
) |
Complete Vehicles |
|
4,331 |
|
|
2,334 |
|
|
1,997 |
|
|
|
44 |
|
|
38 |
|
|
6 |
|
Corporate and Other |
|
(438 |
) |
|
(314 |
) |
|
(124 |
) |
|
|
56 |
|
|
62 |
|
|
(6 |
) |
Total
Reportable Segments |
$ |
30,690 |
|
$ |
26,904 |
|
$ |
3,786 |
|
|
$ |
2,377 |
|
$ |
2,281 |
|
$ |
96 |
|
|
For the nine months ended September 30, |
|
|
|
Adjusted EBIT as a percentage of
sales |
|
|
|
|
|
2018 |
|
2017 |
|
Change |
|
Body Exteriors & Structures |
|
|
|
|
7.8 |
% |
8.1 |
% |
(0.3 |
)% |
Power & Vision |
|
|
|
|
9.8 |
% |
9.9 |
% |
(0.1 |
)% |
Seating Systems |
|
|
|
|
7.7 |
% |
8.4 |
% |
(0.7 |
)% |
Complete Vehicles |
|
|
|
|
1.0 |
% |
1.6 |
% |
(0.6 |
)% |
|
|
|
|
|
|
|
|
Consolidated Average |
|
|
|
|
7.7 |
% |
8.5 |
% |
(0.8 |
)% |
(2) 2017 amounts included in this Press Release have
been adjusted for our adoption of the new revenue standard
(Accounting Standards Codification 606) and recast for our new
reportable segments. |
For further details on our segment results,
please see our Management’s Discussion and Analysis of Results of
Operations and Financial Position and our Interim Financial
Statements.
UPDATED 2018 OUTLOOK
We
have updated our 2018 outlook largely to reflect our third quarter
2018 results, as well as fourth quarter 2018 expectations for lower
light vehicle production, lower equity earnings in our European
transmission joint venture and higher costs in our Body Exteriors
& Structures segment. |
|
|
|
Current |
|
Previous |
Light Vehicle
Production (Units) North America Europe |
|
|
17.0 million22.5 million |
|
17.2 million22.6 million |
|
|
|
|
|
|
Segment
Sales Body Exteriors & Structures Power &
Vision Seating Systems Complete Vehicles |
|
|
$17.3 - $17.7 billion$12.3 - $12.6 billion$5.4 - $5.6 billion$5.9 -
$6.1 billion |
|
$17.1 - $17.9 billion$12.2 - $12.8 billion$5.5 - $5.9 billion$6.1 -
$6.5 billion |
|
|
|
|
|
|
Total
Sales |
|
|
$40.3 - $41.4 billion |
|
$40.3 - $42.5 billion |
|
|
|
|
|
|
Adjusted EBIT
Margin(3) |
|
|
Approximately 7.7% |
|
7.7% - 7.9% |
|
|
|
|
|
|
Equity Income
(included in EBIT) |
|
|
$255 - $280 million |
|
$270 - $305 million |
|
|
|
|
|
|
Interest
Expense, net |
|
|
Approximately $95 million |
|
Approximately $90 million |
|
|
|
|
|
|
Income Tax
Rate(4) |
|
|
Approximately 22% |
|
22% - 23% |
|
|
|
|
|
|
Adjusted Net
Income attributable to Magna(5) |
|
|
$2.3 - $2.4 billion |
|
$2.3 - $2.5 billion |
|
|
|
|
|
|
Capital
Spending |
|
|
Approximately $1.7 billion |
|
Approximately $1.9 billion |
|
|
|
|
|
|
(3) Adjusted EBIT Margin is the ratio of Adjusted EBIT to
Total Sales(4) The Income Tax Rate has been calculated using
Adjusted EBIT and is based on current tax legislation (5)
Adjusted Net Income attributable to Magna is Net Income
attributable to Magna after excluding Other expense (income), net
after-tax and Reassessment of deferred tax balances |
In this 2018 outlook, we have assumed:
- 2018 light vehicle production volumes (as set out above);
- no material unannounced acquisitions or divestitures; and
- foreign exchange rates for the most common currencies in which
we conduct business relative to our U.S. dollar reporting currency
as follows: º 1 Canadian dollar equals U.S.
dollars 0.772 º 1 euro
equals U.S. dollars
1.184
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Adjusted EBIT |
|
The following table reconciles net income to Adjusted EBIT: |
|
|
|
For the three months ended September 30, |
|
2018 |
|
2017 |
|
|
|
|
Net Income |
$ |
560 |
|
|
$ |
521 |
|
Add: |
|
|
|
Interest expense, net |
|
23 |
|
|
|
20 |
|
Other expense (income), net |
|
2 |
|
|
|
2 |
|
Income taxes |
|
114 |
|
|
|
162 |
|
Adjusted EBIT |
$ |
699 |
|
|
$ |
705 |
|
|
|
|
|
|
|
|
|
Adjusted EBIT as a percentage of sales (“Adjusted EBIT
margin”) |
|
|
|
|
|
|
|
Adjusted EBIT as a percentage of sales is calculated in the table
below: |
|
|
|
For the three months ended September
30, |
|
2018 |
|
2017 |
|
|
|
|
Sales |
$ |
9,618 |
|
|
$ |
8,864 |
|
Adjusted EBIT |
$ |
699 |
|
|
$ |
705 |
|
Adjusted EBIT as a percentage of sales |
|
7.3 |
% |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share |
|
|
|
|
|
|
|
The following table reconciles net income attributable to Magna
International Inc. to Adjusted diluted earnings per share: |
|
|
|
For the three months ended September 30, |
|
2018 |
|
2017 |
|
|
|
|
Net income attributable to Magna International Inc. |
$ |
554 |
|
|
$ |
512 |
|
Add: |
|
|
|
|
|
|
|
Other expense (income), net |
|
2 |
|
|
|
2 |
|
Reassessment of deferred tax balances |
|
(21 |
) |
|
|
— |
|
Adjusted net income attributable to Magna International Inc. |
$ |
535 |
|
|
$ |
514 |
|
Diluted weighted average number of Common Shares outstanding during
the period (millions): |
|
343.0 |
|
|
|
370.4 |
|
Adjusted diluted earnings per share |
$ |
1.56 |
|
|
$ |
1.39 |
|
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Adjusted EBIT |
|
The following table reconciles net income to Adjusted EBIT: |
|
|
|
For the nine months ended September 30, |
|
2018 |
|
2017 |
|
|
|
|
Net Income |
$ |
1,865 |
|
|
$ |
1,669 |
|
Add: |
|
|
|
Interest expense, net |
|
67 |
|
|
|
50 |
|
Other expense (income), net |
|
(34 |
) |
|
|
11 |
|
Income taxes |
|
479 |
|
|
|
551 |
|
Adjusted EBIT |
$ |
2,377 |
|
|
$ |
2,281 |
|
|
|
|
|
|
|
|
|
Adjusted EBIT as a percentage of sales (“Adjusted EBIT
margin”) |
|
|
|
|
|
|
|
Adjusted EBIT as a percentage of sales is calculated in the table
below: |
|
|
|
For the nine months ended September 30, |
|
2018 |
|
2017 |
|
|
|
|
Sales |
$ |
30,690 |
|
|
$ |
26,904 |
|
Adjusted EBIT |
$ |
2,377 |
|
|
$ |
2,281 |
|
Adjusted EBIT as a percentage of sales |
|
7.7 |
% |
|
|
8.5 |
% |
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share |
|
|
|
|
|
|
|
The following table reconciles net income attributable to Magna
International Inc. to Adjusted diluted earnings per share: |
|
|
|
For the nine months ended September 30, |
|
2018 |
|
2017 |
|
|
|
|
Net income attributable to Magna International Inc. |
$ |
1,840 |
|
|
$ |
1,637 |
|
Add: |
|
|
|
Other expense (income), net |
|
(34 |
) |
|
|
11 |
|
Tax effect on Other expense (income), net |
|
3 |
|
|
|
— |
|
Reassessment of deferred tax balances |
|
(21 |
) |
|
|
— |
|
Adjusted net income attributable to Magna International Inc. |
$ |
1,788 |
|
|
$ |
1,648 |
|
Diluted weighted average number of Common Shares outstanding during
the period (millions): |
|
352.3 |
|
|
|
377.7 |
|
Adjusted diluted earnings per share |
$ |
5.08 |
|
|
$ |
4.36 |
|
Certain of the forward-looking financial
measures above are provided on a Non-GAAP basis. We do not provide
a reconciliation of such forward-looking measures to the most
directly comparable financial measures calculated and presented in
accordance with U.S. GAAP. To do so would be potentially
misleading and not practical given the difficulty of projecting
items that are not reflective of on-going operations in any future
period. The magnitude of these items, however, may be
significant.
This press release together with our
Management’s Discussion and Analysis of Results of Operations and
Financial Position and our Interim Financial Statements are
available in the Investor Relations section of our website at
www.magna.com/company/investors and filed electronically through
the System for Electronic Document Analysis and Retrieval (SEDAR)
which can be accessed at www.sedar.com as well as on the United
States Securities and Exchange Commission’s Electronic Data
Gathering, Analysis and Retrieval System (EDGAR), which can be
accessed at www.sec.gov.
We will hold a conference call for interested
analysts and shareholders to discuss our third quarter ended
September 30, 2018 results on Thursday, November 8, 2018 at 8:00
a.m. EDT. The conference call will be chaired by Don Walker, Chief
Executive Officer. The number to use for this call from North
America is 1-800-682-8914. International callers should use
1-303-223-4366. Please call in at least 10 minutes prior to the
call start time. We will also webcast the conference call at
www.magna.com. The slide presentation accompanying the conference
call will be available on our website Thursday prior to the
call.
TAGSQuarterly earnings, record quarter,
financial results, sales growth
INVESTOR CONTACTLouis Tonelli, Vice-President,
Investor Relations louis.tonelli@magna.com │
905.726.7035
MEDIA CONTACT Tracy Fuerst, Director of
Corporate Communications & PRtracy.fuerst@magna.com
│ 248.631.5396
OUR BUSINESS (6)We have more than 173,000
entrepreneurial-minded employees dedicated to delivering mobility
solutions. We are a mobility technology company and one of the
world's largest automotive suppliers with 340 manufacturing
operations and 89 product development, engineering and sales
centres in 27 countries. Our competitive capabilities include body
exteriors and structures, power and vision technologies, seating
systems and complete vehicle solutions. Our common shares trade on
the Toronto Stock Exchange (MG) and the New York Stock Exchange
(MGA). For further information about Magna, visit
www.magna.com.
(6) Manufacturing operations, product
development, engineering and sales centres and employee figures
include certain equity-accounted operations.
FORWARD-LOOKING STATEMENTSWe disclose
"forward-looking information" or "forward-looking statements"
(collectively, "forward-looking statements") to provide information
about management's current expectations and plans. Such
forward-looking statements may not be appropriate for other
purposes.
Forward-looking statements may include financial
and other projections, as well as statements regarding our future
plans, objectives or economic performance, or the assumptions
underlying any of the foregoing, and other statements that are not
recitations of historical fact. We use words such as "may",
"would", "could", "should", "will", "likely", "expect",
"anticipate", "believe", "intend", "plan", "aim", "forecast",
"outlook", "project", "estimate", "target" and similar expressions
suggesting future outcomes or events to identify forward-looking
statements.
Forward-looking statements in this press release include, but
are not limited to, statements related to:
- Cash flow expectations;
- Magna’s forecasts of light vehicle production in North America
and Europe;
- Expected consolidated sales, based on such light vehicle
production, including expected split by segment in our Body
Exteriors & Structures; Power & Vision; Seating Systems;
and Complete Vehicles segments;
- Consolidated Adjusted EBIT margin for 2018;
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- Consolidated equity income;
- Net interest expense;
- Effective income tax rate;
- Adjusted net income;
- Fixed asset expenditures; and
- Future returns of capital to our shareholders, including
through dividends or share repurchases.
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Our forward-looking statements are based on
information currently available to us, and are based on assumptions
and analyses made by us in light of our experience and our
perception of historical trends, current conditions and expected
future developments, as well as other factors we believe are
appropriate in the circumstances.
While we believe we have a reasonable basis for
making such forward-looking statements, they are not a guarantee of
future performance or outcomes. Whether actual results and
developments conform to our expectations and predictions is subject
to a number of risks, assumptions and uncertainties, many of which
are beyond our control, and the effects of which can be difficult
to predict, including, without limitation:
Risks
Related to the Automotive Industry
- economic cyclicality;
- intense competition;
- potential restrictions on free trade, including new, continued
or higher tariffs on commodities and/or automobiles;
- escalation of international trade disputes;
- declines in vehicle sales and production volumes in China;
Customer and Supplier Related Risks
- concentration of sales with six customers;
- shifts in market shares among vehicles or vehicle
segments;
- shifts in "take rates" for products we sell;
- potential loss of any material purchase orders;
Manufacturing Operational
Risks
- product and new facility launch risks;
- operational underperformance;
- restructuring costs;
- impairment charges;
- labour disruptions;
- supply disruptions;
IT Security Risk
Pricing Risks
- pricing risks between time of quote and start of
production;
- price concessions above contractual long-term agreement
percentages;
- commodity cost increases;
- declines in scrap steel prices;
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Warranty /
Recall Risks
- costs to repair or replace defective products;
- warranty costs that exceed warranty provisions;
- costs related to significant recalls;
Acquisition Risks
- an increase in our risk profile as a result of completed
acquisitions;
- acquisition integration risks;
Other Business Risks
- risks related to conducting business through joint
ventures;
- our ability to consistently develop innovative products or
processes;
- changing risk profile as a result of investment in strategic
product areas such as powertrain and electronics;
- risks of conducting business in foreign markets;
- fluctuations in relative currency values;
- tax risks;
- changes in credit ratings assigned to us;
- the unpredictability of, and fluctuation in, the trading price
of our Common Shares;
Legal, Regulatory and Other Risks
- antitrust and compliance risks;
- legal claims and/or regulatory actions against us; and
- changes in laws.
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In evaluating forward-looking statements or
forward-looking information, we caution readers not to place undue
reliance on any forward-looking statement, and readers should
specifically consider the various factors which could cause actual
events or results to differ materially from those indicated by such
forward-looking statements, including the risks, assumptions and
uncertainties above which are discussed in greater detail in this
document under the section titled "Industry Trends and Risks" and
set out in our Annual Information Form filed with securities
commissions in Canada and our annual report on Form 40-F filed with
the United States Securities and Exchange Commission, and
subsequent filings.