Magna International, Inc.

and welcome to the Q1 2022 results call. During today's presentation, all participant lines will remain in a listen-only mode. Afterwards, we will conduct a question and answer session with instructions to follow. If at any time during today's presentation you need to reach an operator, please press star zero on your telephone. Please note, today's call is being recorded. Friday, April 29th, 2022. It is now with pleasure that I turn today's presentation over to Mr. Louis Tonelli, Vice President, Investor Relations. Please go ahead, sir.

Thanks, Bridget. Hello, everyone, and welcome to our conference call covering our Q1-22 results. Joining me today are Swami Kodagiri, Vince Galiffi, and Pat McCann. Yesterday, our Board of Directors met and approved our financial results for Q1 2022. We issued a press release this morning outlining our results. You'll find the press release, today's conference call webcast, the slide presentations go along with the call, and our updated quarterly financial review all in the Investor Relations section of our website at magnet.com. 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 the reminder slide included in today's deck related to our commentary today. And with that, I'll pass it over to Swami.

Thank you, Luis. Good morning, everyone. Let me start by saying that our thoughts go out to all those that are suffering as a result of the situation in Ukraine. Although we don't have facilities in Ukraine, we have the privilege of working with thousands of Ukrainian colleagues in our magna operations around the world, as well as those at our facilities in Russia who share the same values of human rights, diversity, and inclusion. We continue to operate under very difficult industry conditions, facing additional challenges that began this past quarter. Under the circumstances, we are pleased that our results outperformed our expectations. We continue to focus on operational excellence, cost controls, and customer recoveries to mitigate the pressures we are facing. Our organic sales outgrew light vehicle production in the quarter. As a result of the worsening geopolitical and macroeconomic environment, we have lowered our outlook for 2022. reflecting reduced vehicle production assumptions, weaker expected currencies relative to the US dollar, and an expected further increase in input costs. As we look past this short-term turmoil, we continue to win business, and our portfolio positions us to continue driving sales growth over market, as well as strong free cash flow generation. I'll briefly cover the current dynamics impacting the industry. We started the year anticipating continued supply constraints, particularly in semiconductors. We are expecting the constraints to remain throughout 2022 but improve in the second half of the year relative to the first. Russia's invasion of Ukraine and measures taken by G7 countries in response have had cascading economic effects. Substantially, all vehicle production in Russia has been idle. The industry is experiencing additional supply chain challenges resulting in vehicle production suspensions, particularly in Europe. Global economic uncertainty has increased and input costs already at elevated levels have risen further. In addition, China's zero COVID policy in the face of rising cases have resulted in lockdowns in certain regions, impacting industry sales and production in the country. In terms of tailwinds, dealer vehicle inventories remain low, underlying auto demand is relatively strong and constrained by the tight supply, and the industry megatrends like electrification and driver assistance continue to drive new business and growth opportunities for well-positioned suppliers. Our first quarter earnings came in better than our expectations. reflecting our focus on operations even as the industry environment worsened as the quarter progressed. Relative to the first quarter of 2021, consolidated sales were $9.6 billion, down 5% compared to a 7% decline in global light vehicle production. On an organic basis, sales were only down 2%, representing 5% growth over market. EBIT margin declined 230 basis points to 5.3% substantially as a result of higher input costs. Our adjusted EPS fell to $1.28 for the quarter. And fresh cash flow was negative $99 million in Q1. During the quarter, we repurchased 5.8 million shares using $383 million in cash. paid out another $113 million to shareholders in the form of dividends and used cash to redeem our senior Canadian debt. That will take you through the details of our revised 2022 outlook later, but let me take you through the broad strokes. Our global vehicle production assumptions have been lowered, and we now expect an overall vehicle production increase of about 3% in 2022, compared to about 6% in our initial outlook in February. We have reduced our European vehicle production assumptions by 2.1 million units, of which 0.9 million is in Russia. At this point, we are assuming that the global OEMs will not produce in Russia for the remainder of 2022. We have also reduced our vehicle production assumptions in North America and China for the balance of the year relative to our previous outlook. The impact of lower sales due to the lower production assumptions, together with assumed higher net input costs, has resulted in the lowering of our outlook for sales and earnings in 2022. Despite our lowered outlook, we are continuing to invest for our future in the form of engineering and capital to support future growth. This is our lifeblood, and we have the balance sheet and cash flow to support these ongoing investments that will benefit Magna well into the future. Before passing the call over to Pat, I want to highlight two recognitions received by Magna, which I am very proud of. We recently earned six 2021 General Motors Supplier of the Year awards. The only supplier to achieve this in a single year, and we have done it in each of the past three years. GM also selected Magna to receive two Overdrive awards for launch excellence and accelerating innovation. In addition, four Magna technologies have been named as finalists for the 2022 Automotive News PACE Awards. The four innovations, two for products, and two for processes are the most received by any company this year. We were also named as a finalist for a PACE Pilot Award. These recognitions reflect our ongoing focus on bringing innovations and operational excellence to our customers, both of which should contribute to our continued strong competitive position in the industry. Finally, we are hosting an investor event on May 10th at the M1 Racetrack in Pontiac, Michigan. We will provide an update on progress in our go-forward strategy that was outlined last year. We will have on-road driving experiences and interactive displays of our latest technologies. You'll have the opportunity to catch up with Magna's senior leaders, our first opportunity to do this live since 2020. I look forward to seeing many of you there for this great event. With that, I'll hand it over to Pat to take you through the specifics on our financials. Pat?