Martinrea International Inc. (MRE) Earnings Call Transcript & Summary

Hello, and welcome to the Annual Meeting of Stockholders of Martinrea International Inc. Please note that today's meeting is being recorded. It is now my pleasure to turn today's meeting over to Rob Wildeboer. The floor is yours.

Thank you very much. Good morning. And welcome to the Annual General Meeting of Shareholders of Martinrea International Inc. My name is Rob Wildeboer. I'm the Chairman of the company. And the Board of Directors of the company has delegated to me the authority to lead the meeting of shareholders today. Before we begin, I would like to take this opportunity to introduce certain members of the company's senior executive management team and Board of Directors who are joining us today. Presenting with me today are Pat D'Eramo, President and Chief Executive Officer and Director nominee; as well as our CFO, Fred Di Tosto. Also present with us today is Kerri Pope, General Counsel and Corporate Secretary. A number of our executives and employees are participating virtually this year, and those not participating are busy with our customers or at our plants, helping to build our business, busy making parts, which is a nice thing to be able to say, believe me. Together, we comprise Martinrea's senior executive team. A critical element of our philosophy as a company with the talented people, the best in the business would be at the core of our company. We have built this company with great people, and we think we have a company full of them, not just at the executive level. We also have our independent directors joining today virtually: Roman Doroniuk, Terry Lyons, Sandra Pupatello, Molly Shoichet, David Schoch and your Lead Director, Fred Olson. Scott Balfour is retiring as a director this year and has not put his name forward for nomination. We wish Scott the best in the future. I will say a few words about Scott later. Our auditors are KPMG, and I would like to introduce Andrew Smith and Dave Power of KPMG, who are attending the virtual meeting also. As this meeting is held virtually via live webcast, we think it is necessary to set out a few rules of order for the orderly conduct of the meeting. I ask you to turn to Page 2 of the presentation, which is an agenda. You will be responsible for changing the pages of the presentation as we go. We will tell you which page we are on. Questions in respect of a motion during the formal part of the meeting can be submitted by any registered shareholder or duly appointed proxy holder with a valid log in using the instant messaging service of the virtual interface. Please note that there will be a slight delay in the publication of the communications received. After the formal portion of the meeting, guests can also ask questions. [Operator Instructions] If we are unable to address your general question during the meeting, a representative of Martinrea will reach out to you following the meeting with a response. For the purposes of the meeting today, voting on all matters will be conducted by electronic ballot. To allow sufficient time for voting, the polls will be open at the beginning of the meeting and you will receive a message on the virtual interface requesting you to start registering your votes. I remind you that only registered shareholders and duly appointed proxy holders who have properly logged in with their control numbers or user name will be able to see on the screen all motions being brought forth at this meeting and will be asked to vote on each business item. We remind you that if you are a registered shareholder and you have already voted by proxy, you need not vote again. Unless you wish to change your vote and had to revoke your proxy in compliance with the procedures as described in the circular. If you plan to vote at the meeting, you may choose to vote on each resolution immediately or wait to cast your vote until after an item is discussed or following the conclusion of discussions on all voting matters. To vote, simply click on your choice, for, against, or withhold, as applicable. A confirmation message will appear to show your vote has been received. To change your vote before the polls close, simply change your selection. The votes you have submitted on each polling item at the time the poll closes will be recorded. Totals in favor, against or withheld as the case may be for each resolution item, will be tallied by the scrutineers once the voting is completed. The Chair will report on the outcome of all motions at the end of the meeting. Actual vote totals will be published in due course. With that introduction, I would now like to call this meeting to order. In order that the meeting covers all the business for which it was convened within a reasonable time frame, we have prearranged with certain persons attending this morning to make consecutive motions. This procedure is certainly not an attempt to discourage participation, and there will be ample opportunity during the course of the meeting to ask questions after the formal business is attended to and we have updated you as to the business and affairs of the company. We will have an open question-and-answer period. I do note that in our discussions today, we will probably use forward-looking statements based on our best guesses, our assumptions and our interpretations. Whether we do this in our presentations or in our answers to any questions. These forward-looking statements are subject to important risks and uncertainties that could cause actual results to differ materially from the conclusions, forecasts and projections discussed in this meeting as certain material factors and assumptions may have been applied in drawing conclusions. We are not going to be able to set forth all assumptions, risk factors or so on every time we say something. We do have a public record on SEDAR, which is comprised of our documents filed with securities regulators that set out the nature of our business, along with risks, uncertainties and so forth, that could cause results to differ materially from any forward-looking information. Our remarks today are qualified by our public record in those filings. Our formal disclaimer is on Page 3 of the presentation for your reading pleasure. So now we're going to turn to the formal meeting itself after we've talked about those guidelines. I now ask that the Annual General meeting of the shareholders of the company come to order and declare the polls open on all resolutions. I appoint Kerri Pope, General Counsel and Corporate Secretary of the company, as secretary of the meeting. For the purposes of this meeting, I appoint Computershare Investor Services Inc. through its representatives as scrutineers to compute the votes of any polls taken at this meeting and to report thereon to me. The purposes of today's meeting are set out in the management information circular of the company dated May 7, 2020. The notice calling this meeting, the management information circular and form of proxy were mailed to shareholders on or around May 12, 2020. Copies of the management information circular and other meeting materials are available under the company's profile on the SEDAR website. It's now time to ask the secretary to table proof of service of the notice of meeting. I confirm the secretary has received from the company's transfer agent, and there has been filed with me an official notice of Computershare Investor Services, Inc. and proof of service as to the mailing of the notice to shareholders. I direct that a copy of such proof of service be annexed to the minutes of this meeting as a schedule. As all shareholders should have previously received a copy of this notice, with your consent, I would ask for a motion to dispense with the reading of the notice.

I so move.

I second the motion.

Now we're going to move to quorum and constitution of the meeting. I've been advised there are voting shares representing more than 73% of all outstanding voting shares of the company present, and therefore, a quorum of shareholders of the company is present and the meeting is properly called and duly constituted for the transaction of business. I have received the scrutineers' report, and I direct that their formal report be annexed to the minutes of this meeting as a schedule. I therefore declare this annual meeting of shareholders to be regularly called and properly constituted for the transaction of business. For your information, sufficient proxies have been received to pass all resolutions with overwhelming majorities. In advance, I would like to thank shareholders for their tremendous show of support. I'll turn to the financial statements. The next item of business is the presentation of the consolidated financial statements of the company. These include the consolidated balance sheets as at December 31, 2019, and December 31, 2018, the consolidated statements of earnings and retained earnings and a consolidated statement of changes in financial position for the 2 fiscal years then ended, together with the auditor's report. The financial statements have been mailed to those shareholders who had requested to receive a copy and are posted on SEDAR. I would ask someone to move that the reading of the financial statements and auditors report be dispensed with.

I so move.

I second the motion.

Unless there are any questions, I will move to the next item of business. The next item of business is the election of directors. The directors to be elected by the shareholders of the company shall hold office until the close of business of the first annual meeting of shareholders of the company following election or until their successors are elected or appointed. As set forth in the information circular, each of the following persons has been nominated by the company for the position of director of the company to hold office for the ensuing year or until their successors are elected or appointed. And each has agreed to serve as a director if elected: Pat D'Eramo, Roman Doroniuk, Terry Lyons, Fred Olson, Sandra Pupatello, Dave Schoch, Molly Shoichet and Rob Wildeboer. Pursuant to bylaw #2 of the company, the advanced notice bylaw, in order to nominate a person for election as a director of the company, a notice in the form required by the bylaw must be delivered to the company at least 30 days prior to the date of the meeting. The company did not receive advance notice from any shareholder with respect to nominations. There being no further nominations, the nominations are now declared closed. As the number of persons nominated is equal to the number of board seats to be filled, I declare those persons who have been nominated to be duly elected by acclamation as directors of the company. On behalf of the company, I would like to thank the directors for agreeing to stand for reelection and for their efforts and contribution to the success of the company. In particular, your availability and willingness to spend long hours are appreciated. The past year was a very busy year for our Board, and we thank you. Unless there are any questions, I will move to the next item of business. The next item of business is the appointment of auditors. Will someone please move that KPMG LLP be reappointed as auditors of the company until the next annual meeting of shareholders and authorize the Board of Directors of the company to fix their remuneration.

I so move.

I second the motion.

Unless there are any questions, I will move to the next item of business. The next item of business is an advisory nonbinding vote on Martinrea's approach to executive compensation. This is often referred to as say on pay. Although the vote is nonbinding, the Board of Directors will consider the results when assessing future compensation decisions. A detailed description of the company's approach to executive compensation is included in our proxy materials. I ask someone to present a motion to approve the resolution confirming and adopting the advisory nonbinding vote on management's approach to executive compensation. The text of the resolution, approving the advisory nonbinding vote on management's approach to executive compensation was set out on Page 30 of the information circular.

I so move.

I second the motion.

Unless there are any questions, I'll move to voting. So as we mentioned, voting today will be conducted by electronic ballot. For those of you who have not yet cast your votes, please do so now. We will provide registered shareholders and duly appointed proxy holders approximately 1 more minute to complete the electronic ballots. Once the electronic ballot then closes, the voting page will disappear, and your votes will automatically be submitted. As noted, I've been advised by the scrutineer that proxies deposited for the meeting are sufficient to pass all resolutions by an overwhelming majority. We appreciate the advisory vote in favor of the approach to executive compensation as well, almost 99% of the votes by proxies deposited for the meeting were in favor, for your information. Today's environment, that's a very good level of support. Thank you. I would ask that the scrutineer compile the report regarding the results of voting on all business matters and direct that the results will be included in the minutes of this meeting and published on SEDAR and by press release shortly. We will issue a press release tonight or tomorrow outlining the results. The formal items of business as set out in the notice of meeting have now been dealt with. I would ask for a motion to terminate this annual meeting for the shareholders of Martinrea International Inc.

I so move.

I second the motion.

As there is no further business or further formal business, I declare the formal part of the meeting to be concluded. We will then have our presentations and question-and-answer period. Please turn to Page 4 of the presentation. There's not much on Page 4, so you can turn to Page 5. It shows the macro picture. Let me say something about questions and answers. [Operator Instructions] For each question we answer, we'll summarize the question. We would like to remind you that questions which were already answered or that are redundant or repetitive will not be published nor answered. So as we go through our presentations, as myself and Pat and Fred go through our presentations, if you write questions, we will keep track of them, and then we will have a Q&A period after the presentations, assuming there are some questions. Okay. So we're going to turn to presentations. Thank you very much for your attendance to the formal part of the meeting. It's a little dry. But we have to get through it. This is the first time we did a virtual meeting. And one of the things that we really like about the virtual meeting this year is that there is access to a broader range of people that can actually be at our meeting rather than be in a physical meeting. We love the physical meeting and the interface, but this is an opportunity for a lot of people to sign in, including not just shareholders, but a number of our people and our employees, and we're really privileged to talk to you. Our remarks are addressed not just to shareholders, investors, but also to our employees, and we look forward for the opportunity to outline where we're at as a company. So I'll start with the presentation. I'll be followed by Pat and then Pat will be followed by Fred, and then I'll end up with a couple of very brief remarks, and we'll open the Q&A period. Many positive things have happened since our shareholder meeting last year when you supported us as your directors to guide this company through the balance of 2019 and through this year's meeting. 2019 was a year full of achievements for Martinrea, as you will see. But the past is not where our minds are focused these days, but on the present and the future. We're going to focus our remarks today on those areas. While 2019 was a challenging yet very successful year, we recognize that the COVID-19 pandemic has created unique challenges for all of us and for Martinrea and our industry. We've seen an unprecedented shutdown of our industry. Most of our customers in North America, Brazil and Europe have just restarted their operations. We've been extremely focused as a management team and as a Board of Directors, on the crisis and how we best deal with the shutdown of our business, its restart and our return to full production in the future. Our focus throughout has been, firstly, on the well-being of our employees and those of others in our industry and our loved ones. We've been very proactive on safety measures and have developed a very robust set of safety protocols for our plants and offices. Our people have to be safe and feel safe. Furthermore, the well-being of our employees extends beyond just the COVID-19 threat, of course. Our people need to have meaningful work and an ability to sustain themselves economically by coming to work. In that regard, we've been very involved in preparing ourselves and our industry for an expeditious, successful and safe restart. I don't have to say much, and I won't say too much about the pandemic itself. Obviously, its impact on the economy, in general, and our industry, in particular, on the health and well-being of our society is on the news every day. But here are a few observations, and I suggest we turn to the slide on Page 6. First, the cases of COVID-19 continue to spread throughout the world. Having said that, the spread of COVID-19 has slowed down significantly, even stopped in some areas such as China, purportedly. Europe is improving. The U.S. and Canada are improving. Mexico and Brazil are still seeing a higher number of COVID cases. But overall, the impact of the pandemic as a health issue seems to be slowing. There have been over 400,000 deaths from people diagnosed with COVID, whether they are COVID caused or not is a debatable proposition to some. It's unclear whether we will reach the 1 million death level of the Hong Kong flu of 1968. It is clear, at least to me, the incident's fatality rate is much lower than originally feared, and that is actually a great thing that portends well for the future. Second, there's been a tremendous amount of fear and concern in the world, leading to social distancing and a level of unprecedented forced lockdown. Some countries and states focused on stopping the surge or simply tried to reduce cases substantially by lockdown measures. The economy has ground to a halt. We have seen massive increases in unemployment in North America, Europe and elsewhere. The stock markets lost a ton of value in a short period of time. The Dow Jones, for example, fell 37% in the few weeks before March 23. Consumer spend has plummeted overall. This isn't good news for auto production, sales or sales in general. Our economies in the West have been -- Q2, in particular, have been hurt to an enormous extent. I've seen estimates of a 40% decline in U.S. GDP in the last couple of months, and this is what we call a holy-crap moment. But things are getting better, as I will talk to in a moment. Third, we've seen an unprecedented government spending in stimulus, almost $4 trillion in the U.S. and maybe more coming, likely approaching $500 billion in Canada, huge amounts elsewhere. Spending and stimulus are meant to ease the burden of those not working or those companies not being able to operate. While the spending is not sustainable for the long term, and while there will be debts to pay at some point, as we sit today, there are many, not all but many, who have seen the benefit of these support programs. The stimulus has also fueled the credit markets, which have, for the most part, stayed relatively buoyant, unlike 2008 and '09 when lending dried up. The hope is that this will all mean a quicker recovery once we reopen the economy with or without a cure for the virus. We also anticipate stimulus will be extended to our industry in the form of liquidity assistance or a scrappage program to encourage sales. Fourth, but we are now seeing increasingly, signs of life as we work towards reopening our economy. We in auto are in restart move. We're seeing significant steps to reopen our economies in the U.S., Canada, Mexico, Europe. China has largely reopened. Many industries have been running during the shutdowns. Food, health care, information technology. The point is that many people have been working in these industries in government or have been paid regardless of whether they have been employed by support programs or bid on fixed incomes. As a rough guess, maybe 80% of the people in the economy have not suffered too much economically. This is a critical point as it may assist in the restart and the speed of the economy coming back. Some have argued this is an event-driven recession, which can recover more quickly than an asset-driven recession or a normal cyclical recession. We shall see. Some industries, of course, have been hammered. Oil and gas, aerospace, travel, restaurants, but many have not. Regardless, we see a significant increase in economic activity in GDP in Q3, maybe in the order of a 30% increase in the U.S., with further increases in Q4, and we see a stronger economy in 2021 than in 2020. The improving job numbers in the U.S. and Canada are encouraging. Pat and Fred will talk to the restart activity taken by us in a few moments. By the way, the stock market has been on positive terra for 2 months, reflecting the optimism of a reopening. Fifth, for automotive volumes. While we obviously see a big contraction in Q2, we see improvements in Q3 and in Q4 and a better year in 2021. For 2020, U.S. sales are generally predicted by people such as Goldman Sachs to be like $12 million, IHS, $12.5 million and some others up to $14.5 million, down from about $16-ish million in 2019 and the $12 million number is about a 30% decline year-over-year. A significant decline, but with most of the year-over-year decline in the first half. Europe is predicted to show about a 30% decline in 2020, again, with most in the first half. China, a much lower decline, like 2% or flat to slightly positive. So the auto market has basically come back in China. World volumes this year down about 17%. It's hard to speculate our numbers, but we think that this range is not a bad one. So this is the COVID-lockdown world we have lived in for several months now. There are a few other headwinds we are dealing with also. Obviously, there are some trade tensions, especially between the U.S. and China as there were last year. We have a presidential election in the U.S. coming up. We have some protests in the streets, and we have a lot of scared people. Last year, at this meeting, we also had some headwinds, lower volumes, some trade issues, lower stock price multiples. In fact, our stock price was lower than today, kind of amazing given what's happened in the last few months. Last year, I put out a top 10 list about reasons to be positive and even bullish about the future for Martinrea and our industry from where we sit today. So here we go. Let's do it again. As I go through the list, I hope you all agree with me that this is a perfect time to buy a pickup truck, especially 1 with high content of Martinrea parts. So see the next slide on Page 7. It's been awful, but it's getting better. This may sound flippant, but it's true. No one has ever seen no production in our industry for 10 weeks. It's getting better. We've seen, I submit the bottom, May's U.S. SAAR of 12.2 million vehicles was above expectations and a very positive sign. Two, from the depths of Q2, our economies are already starting to expand in June, in Q3, in Q4 and next year. We think 2021 will be a very good year. But even if not, it should be a growth year from 2020. Many see strong growth in 2022 and 2023 as well. Third, from our perspective, the USMCA, now in place, is a good deal for North America and us. The COVID issues have helped support a more regionalized world and we in North America are in the best trading region in the world, I submit. I believe this will be good for Canada, be good for the U.S., it will be good for Mexico. And it's certainly good for us. Our products are clearly North American content. Four, people are still driving cars. Miles driven, reduced a lot in March and April rebounded strongly, and we're seeing traffic jams in Toronto again. Cars still need to be replaced. Demand appears to be strengthening. Five, there are 2 interesting new COVID-related trends that may support vehicle sales. A, the first is the fact that a car is a safe mode of transport, where you can control who you are with and how to social distance. There's certainly an increased concern among many commuters about taking planes, trains, buses, subways, LRTs, the car is safer. The second trend is the move to working remotely. More and more people are working from home. They are willing to move away from the downtown condo and still get their space, a backyard, a driveway and a vehicle in it. The point is there are trends yet to be fully understood and played out that may increase vehicle demand, not decrease it over time. Okay. That's kind of 2 points. So I'll move to number seven. The cost of buying a vehicle is low. Interest rates are low. Incentive packages are high, gas prices are low. When things are cheaper, we get more of them. Eight, we're going to see some auto stimulus. We've been in conversation with governments on many things in North America and Europe, also about scrappage programs. In Canada, the promotion of new vehicles for older ones also has a greenhouse gas benefit as new vehicles, both internal combustion engine and electric, are significantly cleaner or perceived to be than the vehicles to be scrapped. Nine, the average vehicle age is still 12 years or so. Replacement is needed at some point. The buyer gets a better, more efficient vehicle with newer technology. And this has always attracted buyers. Then ten, finally, I think we'll see the valuation multiples and perhaps the volumes of automotive players, including automotive parts suppliers such as us, go up. For half a decade, we have seen compressed valuations as industry analysts and investors figured that sales would go down that we were nearing the end of the cycle. I've heard many in the investment communities say, we don't want to buy at the end of the cycle. Many have said, we love your company, but we don't want to buy at the end of the cycle. Multiples tend to go down as we head into a perceived downturn and up coming out. Well, I think we are having our downturn moment for sure. And already, we are seeing multiples get bigger. So speaking of multiples and valuations, let's look briefly at stock prices in general, and for our company. Last year, on the day before our AGM, our stock price was $9.72. Today, it's over $11. At year-end, it was over $14. 3.5 years ago when President Trump got elected and threatened to tariff NAFTA, we traded at $6.69. So stock price fluctuates. How are we doing over time in the context of our market? We do this every year at our AGM just to show how we're doing comparatively. So if you turn to Page 8, it shows the 2019 return on our shares. We had a nice gain of about 32%. And near the top of the range, you can see some of our Canadian competitors for the Canadian investor perspective. Magna had a decent year. Linamar was up, not as much. Some of our competitors, such as Cooper Standard, didn't have a particularly good year. If you turn to Page 9, it shows our returns over the year period between AGM's to last Friday. So once again, surprisingly, for some, we did very well on a year-over-year basis. We're doing well on a year-over-year basis. Most people are down but are -- have seen a pretty good rebound in the last several months. The next slide shows our 5-year return. That's effectively in our proxy materials as it's required to be. So Martinrea, over the last 5 years, has done well with a 38% return, as you can see, better than most. If you want to look at the Toronto Stock Exchange, you can turn to Page 11. Our 2019 share price performance versus the TSX down for part of the year rebounded quite well at the end, ended up significantly in terms of significant outperformance. Next page, on Page 12, shows our returns against the TSX, basically annual meeting to annual meeting from the time we last got together. Once again, pretty good performance, and we sit better than the TSX did at this time last year. And then if you look at the 5-year period on Page 13, our 5-year performance versus the TSX in general, a pretty good comparison. So not bad price performance on a comparative or absolute level. I believe we continue to put pucks in the net, to use a Canadian analogy, even though no one is putting the pucks in the net right now. But when they get back to the NHL and so forth, a good analogy, we should be able to continue to provide value for shareholders. Okay, I want to finish up my general remarks as always with a few words on culture. And our view of it, and this I address not only our shareholders but our employees on this call, many of which are also shareholders. So on Page 14, we outline our vision, our mission and our principles. We talk about culture a lot at Martinrea because it matters. It matters a lot. It matters to us, but most importantly, it matters to our people here at Martinrea, whether in good times or in bad. Our culture has a profound impact on our company and our people and on us. So we take it very seriously. Peter Drucker once said, culture eats strategy for breakfast. And we think he's right, especially in challenging times. Our vision making lives better by being the best supplier we can be in the products we make and the services we provide. Our people need a why, and that's a wide vision. There's a proverb that says, where there is no vision the people perish. Very true, very appropriate. Our mission is making people's lives better, by delivering outstanding quality products and services to our customers, basically taking care of our customers, providing meaningful opportunity, job satisfaction and job security for our people, basically taking care of our employees, providing superior long-term investment returns to our stakeholders, basically taking care of our lenders and shareholders and, four, being positive contributors to our communities, basically being a good neighbor. In difficult times, we double down on service on serving these groups. And our 10 guiding principles remain the same as noted on the slide. I won't repeat them, but I do point you to the ninth one, the golden rule, to treat everyone with dignity and respect. I'll get back to that. We articulate our company culture comprised of entrepreneurship, lean manufacturing principles and the golden rule philosophy corridor 10 guiding principles is demonstrated in a picture, and that's on Page 15. You'll see the vision at the top, the mission statement on the sides and you see entrepreneurship, the lean thinking way and the golden rule. So let's start with entrepreneurship. The company has been entrepreneurial in nature since inception since I started. A company that has embraced characteristics of encouraging executives, general managers and all employees to act and think like an owner with a stake in the enterprise, supporting a can-do attitude, promoting an ability and willingness to urgently get things done, acting to avoid unnecessary bureaucracy, developing an ability to learn from mistakes openly and constructively and the trust of working in a team. As a company, we embrace new initiatives every day, and we focus on new products, new technologies, new locations and new ways of doing things consistently. Our immediate and nimble response to the crisis, the speed of which we made products to help fight the health aspects of it and our restart were all profoundly entrepreneurial. The company embraces lean thinking as part of its culture, too. Simply stated, the lean thinking way is the focus on eliminating waste in all aspects of the company's business and operations. The elimination of waste allows us to take out unnecessary cost, thereby making us competitive. It enables us to see problems that we can fix in our operations more easily. It allows us to simplify processes so that we can have safer, cleaner, more efficient and more sustainable workplaces. It is a culture of continuous improvement in whatever we do. We believe, as Pat will show, that this crisis is enabling us to be a leaner, more efficient company. At the core of our One Martinrea culture is a golden rule philosophy based on treating others the way we want to be treated with dignity and respect. But more also, it means following our 10 guiding principles in our business and operations and how we deal with our customers, employees, suppliers, stakeholders, lenders and shareholders and our communities in better times and in tougher times. Being lean or being entrepreneurial is not enough. These cultural elements overlap but are tied together with our golden rule approach. We make people's lives better in what we do. And we can only do that with a service-oriented approach to our work and our colleagues at work and all those who we deal with in our work. At Martinrea, we believe that our culture is and will be a sustainable competitive advantage for the company over the long term, and we believe it has driven the improving financial, safety and quality performance over the past several years. We don't profess to understand the stock market or how investors make their decisions. Frankly, we're not sure we are alone in that. But we do believe one thing. Sustainable companies with great cultures will be around for a long time. We believe we have a company poised to excel over the next decade and beyond, and we and our people are committed to that. Our culture comes to the fore in the context of the COVID-19 challenge. We're working very hard to make people's lives better. We are focused on safety. We're working hard to restart our business and bring back as many people to work as we can when we can. We have worked with governments in the places in which we have plants on relief for employees we have had to lay off, and many of our people are benefiting from programs available to them. Over the last few months, our team members have been working to help fight the spread of COVID-19. Our culture is alive and well and at a competitive advantage. In a few moments, you will see that in the context of Pat's presentation, but also in Fred's, a great culture is reflected in the financials of our business. Fred will highlight for you our strong financial performance and position. To close, Martinrea continues to have a great future, and we are seeing it unfold every day. We are dealing with the COVID-19 pandemic with a sense of focused dedication and resilience. And coming out of the crisis, we will continue to be a strong player in our industry. The industry is coming back. And we'll come back leaner, stronger, smarter, faster and better. Our One Martinrea culture, making people's lives better, is driving us forward. It will drive operational and financial performance, which in turn reinforces the culture. It is becoming a sustainable competitive advantage for us. We're just getting started. We have a highly experienced and dedicated management team and a strong independent Board of Directors dedicated to creating shareholder value for years to come. On behalf of the Board and management team, we'd like to thank our shareholders for your ongoing support as we move forward together to building a stronger Martinrea. Please help us continue with this positive momentum. Now let me turn the floor to my good friend and partner and our CEO, Pat D'Eramo.

Thanks, Rob. Good morning. Let's move to Page 17. So you're probably wondering what the status of our operations are. In North America, we were temporarily idled in all of our customer plants with the exception of the industrial products, which continued to run, and our industrial group continued to support those. Most of the OEMs are now restarted. And though the last couple of weeks have been pretty bumpy, this week actually has proven to be better from a volume standpoint. So we see some of them actually recovering rather quickly now. In Europe, again, temporarily idled all of our plants and all of our customer plants. The OEMs, at least most OEMs have restarted although it seems to be more weighted by customer there. And my guess is that the North America will surpass Europe as far as volume as we race to get back to normal. And in Asia, mainly China, things have pretty much resumed as they were ahead. In fact, 2 of our 4 plants are actually running over production currently. Page 18. As we go back to work, of course, there's a lot of concern about COVID. And we took a regional approach on safety. So we use [ equal ] personnel protective equipment, reduce the number of workers present on the premises and still being functional, limited visitors to our facilities, reworking our processes to provide some social distancing or enhanced PPE. And then, of course, a lot of additional cleaning and disinfecting protocols, both in our plants and our offices. We also have symptom checks for our employees, personal assessments and of course, we've educated our employees as they've returned to work. Page 19. So what do we do when our customers stopped? Again, not all our customers stopped, the industrial customers continue to run, but our primary customers basically all came to a hold at the end of March. We swiftly implemented cost reduction actions. Now you may recall in previous meetings or discussions, we talked about practicing a downturn of 25%. And we never would have guessed that 25% would have come all at once for the year. But given the fact that we had practiced it for years, we had many tools in place, and actually, we were able to respond very quickly to the change. A lot of layoffs, of course. And for those people that remained, we had salary reductions anywhere from 20% to 50%. We secured our balance sheet and liquidity position, withdrew financial guidance, established a framework for returning to work, as I touched on a moment ago. And then in the meantime, we partnered with our OEMs and suppliers and the community outreach initiatives for the production of components for ventilators and other personal protective equipment. If you go to Page 20, I can show you some examples. First, you may have recalled this in the news a number of times, General Motors was one of the first to step in and start making ventilators. Interesting story, they initially went with a different supplier to build the ventilator stand. And in the 19th hour, and you remember how much pressure there was on GM, even the U.S. President was giving them a hard time about their timing. In the 19th hour, the supplier who was going to make the stand said they couldn't do it. So they called Martinrea and our FMG group. And within a very short time frame, they had engineered, built a prototype and we worked with General Motors and got into production, along with some help from our Metallics group. So it was an outstanding effort by the company, and we are now in current production, and we plan to make about 33,000 stands between about a month ago and through August 1. Our Spain plant produced face shields, aerosol boxes for hospital and local law enforcement. And in Vaughan, our Alfield plant, we decided to go into face mask production. This is about a 3-month payback for us based on our usage. And we can -- with our overproduction, we can actually supply face masks to a lot of our family members and even into the communities where it may be needed. Let's go to Page 21. Actually, you can go right to Page 22. So prior to the shutdown, our strategy as well as our financials were right on track. As we come back, our 4-pillar strategy remains intact today, though some of the business plan timing has been adjusted. During the shutdown, we continued to work in our closed facilities and took advantage of the downtime. We maintained program management activities for launches. And of course, a lot of activity related to our lean movement to improve the operation as we return. Page 23. Lean continues to stay on the forefront. As we continue to emphasize our rules engagements, thinking a certain way, the lean way, being humble in our approach and engaging people at all levels. In fact, we're at the point now where evolving our lower level or what I'll call our core employees are the next big step for us to provide more continuous improvement in our operations. Page 24. So let's talk a little bit about our report card. First, what's happened in 2020 and during the shutdown. We did a lot of operational improvements prior to and as we entered the shutdown. And as I said, we continued work in our idled plants to take advantage of the downtime on cost reductions. We did lay-out improvements, such as our high-frequency delivery system. We worked on machines to include -- excuse me, improve speed and efficiency. And with a lot of this activity and looking at the elimination of redundancies and frankly, with people working from home, being able to identify things that we really can live without, Martinrea will move forward with a permanent reduction of about 7% of the workforce or about 1,300 people globally. Now that's at 100% production. So if we're running at the end of the year as we expect, at 100%, we will be doing with 1,300 less people. Of course, if it's less than 100%, let's say, 80%, that number goes in well past 2000. So we'll see what the future brings. And that variable, by the way, is just the direct labor, the indirect labor and salary will be permanent in either case. So a lot of strong activity, a lot of reflection, a lot of time to look over the organization and say, what do we really need to do to go forward and be as efficient as we can be. And then lastly, of course, we worked on the integration now. We integrated our Mexico plant as scheduled and planned. In fact, we might have even got a little bit ahead there. But the plant in Germany, of course, due to travel, did get inhibited a bit. And we now have people in Germany, and that integration is well underway. Let's go to the next page. So now let's look over the past 5 years. From 2014 to 2019, we had a 72% improvement in our safety, globally. 34% improvement in quality. We doubled our adjusted operating income from 4% to 8%. Now this excludes the UAW strike last year and the significant amount of tooling sales. But all things being equal, we would have been 8%. We reduced our net debt-to-EBITDA ratio from 2.6 to 1.5, despite the fact we bought 8% of the company back. Our annual adjusted EPS improved from $0.98 in 2014 to $2.27 in 2019. So a really great accomplishment there. Strong launch execution, which was key to some of this. And as promised, we delivered $127 million in free cash flow in 2019. Let's go to Page 26. A lot of recent quality awards from some of our biggest customers, Jaguar Land Rover, General Motors now being basically our biggest customer, Nissan and Ford. I won't go into the detail of those at this time. Page 27. So let's discuss the bigger picture, how does being a lightweighting company affect our strategy going forward. Page 28. I want to take a look back. Between COVID and the protests, it's easy to forget what we were talking about the previous decade. 6 months from now, when people stop wearing masks, we'll be discussing climate change again. And despite the fact that gas prices are very cheap, in fact, as cheap as I can remember since high school, the change is about CO2 reduction. As you look at the charts below, there's still some pretty significant targets in the future at about 55 miles a gallon in the U.S. by 2025. And the graph on the right, though it's more difficult to see, you can see the reduction globally, China, Japan, Europe, which are all more aggressive than the U.S., but even in the U.S., you can see there's quite a bit of reduction or what the expectation is in fuel economy. So there's only really 3 ways to get to where we need to get. One is the powertrain going from engines, traditional ICE engines to electric. Aerodynamics, which basically is negligible at this point. And then, of course, weight, which is where we come in. So 3 key areas, it's really 2 when it boils down to it, where you can improve the miles per gallon or the miles or kilometers per charge. And we're right in the midst of it. Page 29. So about 1.5 years ago, we started the process of a significant commercial change on how we're going to sell our product. With the exception being, again, the industrial group, which has its own independent sales activity. Those 2 groups that we broke down into were lightweight structures and propulsion systems. This was to enhance our portfolio as well as our growth in our margins. Now when I say enhance our portfolio, we have a lot of steelmaking or steel stamping and welding activity in the plant or in the company. It's about 50% of what we do and also a very large aluminum component. This is unusual because most of our competitors are either weighted in one of those areas or the other, but not both, and gives us a unique opportunity to combine those materials through this new strategy. So why did we move into a lightweight structures group and the propulsion systems group, both from a sales and engineering standpoint? One was to grow our revenue and margins by providing engineering system solutions. Expand product offerings, enhanced focus on technology solutions, again, such as multimaterial joining. And those of you who've been following us for the last 4 or 5 years, multimaterials come up out of my mouth, probably a million times. And finally, it's in our labs, and we're actually starting to produce products. And then, of course, creating long-term deep partnerships with our customers from both an engineering and ultimately, a content point of view. So if you look at the 2 pictures on the bottom, lightweight structures to your lower left, this is anything that is in the structure of the body or the chassis of the vehicle, which, again, is about half or more of what we do, or I should say, more than half of what we do. And then the propulsion systems is anything basically that stops or moves the vehicle. And this is a combination of both our fluids, aluminum and our assembly activity. Let's go to Page 30, and go a little bit deeper. So on the left side of the page, as all of you are aware, cars have been made from steel for a very, very long time. It's an expensive approach to a body and a structure but it's also the heavier approach. There are also vehicles that are aluminum. It's a lot more expensive to produce 100% aluminum body, but it's also a lot lighter. The trend is absolutely toward a little bit of both, which is what we call multimaterial. The challenge in multimaterial is the ability to join unlike materials like steel and aluminum. And this is where we call our sweet spot and our ability to start to make products that are both aluminum, steel, high-strength steel and combine them into one product. We are now starting to produce vehicles or prototype parts for ultimately one of our first introductions, which will be the WL Grand Cherokee, where we'll make a multimaterial product for the FCA. And as you move to the right side of the page there is another example, our chassis products, we make steel. We make solid aluminum. We make hollow aluminum, we make assembled hollow and solid aluminum frames. And now we're making multimaterial sub frames or chassis as well. Our first product will be introduced at the end of this year on the Mustang Mach-E electric vehicle, which is a combination of both aluminum and steel in this case. Let's go to the next page. That was lightweight structures. Now let's talk about propulsion systems, Page 31. In propulsion systems, we are migrating based on powertrain changes. Currently, we make engine blocks, we make fuel systems, break lines and transmissions. Over time, that will migrate to electric motor housings in the case of engine blocks. We've won our first electric motor housing, which we'll talk more about in Q3. Fuel systems will be replaced by battery trays and cooling systems. And currently, we are making our first battery tray product. And cooling systems are capacitized or capitalized, I should say, in the same manner as fuel lines. So a lot of our capital as we move from one product in fuel to another product in cooling is very much the same. Brake lines will continue on. We already put brake lines on electric vehicles such as Tesla. And transmissions, though they will change, will continue in the future, though a different design. Let's go to Page 32. I'll talk a little bit about our acquisition of Metalsa. So the overview of Metalsa and what we acquired. It's a leading manufacturing in lightweight body and chassis structures. They had state of the art production facilities, 6 of them, large one in Germany and Mexico, also in United States, 2 in China and 1 in South Africa. Key customers include Daimler, BMW, Audi and Volkswagen. In fact, in the case of our Metallics group, we went from about 4% Daimler and BMW content to what will now be 24% or about $400 million addition in revenue. Purchase price was $19.5 million cash, subject to certain post-closing adjustments, inclusive of working capital and debt-free basis. And the transaction closed on March 2, 2020. Let's go to Page 33, and I'll tell you a little bit about why we did it or remind you why we did it. So what was the strategic rationale? It diversifies our customer base, again, adding significant revenues to 2 key customers, primarily Daimler and BMW, but also some VW and now Audi will join the pack. Transformed steel metal forming group from a North American player to a global player. Add strong reputable engineering capabilities in the heart of Germany to support both our European customers as well as some North American customers in Europe. It enhances our lightweight multimaterial joining technologies. So Metalsa in Germany already had some joining technologies, a little different than ours, but the first product goes into production. In fact, this fall, with a new S-class Daimler product, where aluminum, steel and high-strength hot-formed steel will be combined into a product, which will sell on every 1 of those vehicles, both ICE and electric. And lastly, it establishes capacity that we needed in Mexico as well as in the U.S. If you recall, we announced a large Daimler package that we won that would have had us have built a facility in Tuscaloosa, Alabama, and this acquisition came with a building that has enough space for us to put that new product without adding on to the building. So it was a great marriage. And then other potential synergies. Of course, we're doing some restructuring. It's well underway. And now that we can travel again, we'll speed that up. And then opportunity for additional cost savings because some of the buildings, both in Germany and in Mexico are close enough in proximity where we can share some resources. Let's go to Page 34 and talk a little bit about where the market is headed relative to internal combustion on to EVs and hybrids. EV is still coming, as I said earlier. And if you take a look at our product portfolio, about 75% of our product is agnostic to the powertrain. If you look at chassis, body-in-white, brakes and industrial. Fuel lines and engine blocks, as I said, start to migrate battery housings and cooling systems. But the reality is, if you take a look at the mix of what people call EVs, a lot of those products are actually hybrids. And hybrids are kind of the sweet spot for us because we get the traditional products of engine blocks, fuel lines, break lines and transmissions as well as battery trays and motor housings. Plus in all those vehicles, as I said before, from an agnostic point of view, the body structure is the same. Though I would say that in hybrids and especially in EVs, the use of aluminum tends to be higher. Let's go to Page 35, and this gives you kind of a unique view of where Martinrea is headed relative to our product. So the last year or so, our balance has been about 95% internal combustion platforms and about 5% BEV and hybrid. This migrates over the next 4 or 5 years to a much larger component of EVs and hybrids and basically in a very regional sense for us. So that 23% is broken down by region very much in line with what each of those regions are heading toward relative to electric vehicles. And if you break that 23% down again, 14% or the majority of that is hybrids and a 9% are pure EVs. And in the middle of the page, you can see 3 of our big wins, the Daimler EVA2. That's the one that will be built in Tuscaloosa, Alabama, where we were able to put it into the acquired plant. The Ford Mach E, which has the subframe, that's a hybrid of both aluminum and steel. And then the Geely rear sub-frame that we're building in China, which is great because, as you know, the strongest market for EVs in the near future will be China. Okay. With that, I'd like to go to Page 36 and talk a little bit about our environmental, social and governance activity, just real briefly. Page 37. Sustainability encompasses many attributes. We built sustainable business through making people's lives better with our mission of meaningful opportunity in job satisfaction, outstanding quality of products and services to our customers, superior long-term investment returns to our stakeholders and being positive contributors to our communities. Sustainability is a key to this ESG activity, Page 38. Some key environmental areas for Martinrea. Our lightweight strategy obviously helps to improve fuel and charge efficiency and lower CO2 emissions, as I discussed. Lean manufacturing practices minimize waste throughout the entire organization. We have environmental management systems, disaster response and recovery plans at each of our facilities. And this past year, we kicked off a lot of 0 landfill initiatives. So both our Auburn Hills and our Vaughan offices as well as a number of our plants have gone to 0 landfill in 2019. Page 39. Socially, we treat people with dignity and respect, as Rob talked about earlier, the golden rule. We have an employee bill of rights. Our workplace safety and health is a priority, and it's reflected in our results, as we talked about earlier. And we have a strong -- number of strong platforms for communications throughout the company now. Page 40. We've done a lot of work on diversity in the past few years and inclusion. With our primary focus being on women in manufacturing. We did this so we could have specific action items that would be measurable and have a positive impact. And I'm pleased with our progress in women in manufacturing, certainly we've a lot more to do, but we're off to a great start. Page 41, continue our social activities. We have a number of great community activities by plant, by facility, by country, including developing a partnership with Givesome, which ultimately allows us to understand, actually see and track both our financials as well as our volunteer hours in the community. Page 42. Last, our governance. We have an independent board, 6 of our 8 members are independent, 100% of our committee members are independent. We do pay for performance, as Rob described earlier, significant portion of our total compensation is variable. And we have both a business ethics activity as well as a whistleblower line that's been in place for some time. On Page 43. Whatever the future holds, Martinrea will be a leader, whether it's electrified, connected, shared, autonomous or traditional internal combustion. And with that, I'm going to pass it to my good friend, Mr. Di Tosto. Fred?

Thanks, Pat, and good morning, everyone. I sincerely hope everyone is staying safe and healthy during these very difficult and unique times. From my end, I would like to virtually welcome you to this year's Annual General Meeting. It's always a pleasure to spend some time together, although virtually in this case, and to discuss the state of the company with our many stakeholders. All of you have been very supportive of the company over the years, and your support is always appreciated. In my remarks, I will start with a quick overview of our fiscal 2019 results, acknowledging that the past is not where our minds are focused on these days. But I think it's good to recap the year and provide some context on where we were pre COVID. A quick snapshot of our Q1 2020 financial results will follow, which will lead me into a discussion on some additional relevant topics given the current environment in particular, what we have done and are doing to respond to the COVID-19 pandemic from a financial perspective. I will also spend a bit of time looking forward to some extent and touch upon our sales, operating margin and cash flow profiles, and then discuss our core principles on our capital allocation framework. Please turn to Slide 45. This slide represents a snapshot of our fiscal '19 financial results. Outside of the UAW GM strike at the end of the year, 2019 was a very good year for the company. I'm quite happy with our '19 financial performance, especially when you take into consideration some of the headwinds we and the industry faced during the year. Let me summarize some of the financial highlights for the year. We recorded increased sales of just under $3.9 billion, inclusive of higher tooling sales, which inherently reflects a strong pipeline of new and replacement business. Our sales grew 6% year-over-year when the overall industry was generally flat and down in some areas. But for the UAW GM strike and higher tooling sales, our adjusted operating income margin would have increased again in 2019 to north of 8%, showing continued improvement from about 4% in 2014. The starting point of our Martinrea 2.0 journey. Our operating margin has progressed nicely over the past 5 years, outperforming most industry players. But for the strike, we would have improved adjusted net earnings for the tenth year in a row. We generated adjusted net earnings of approximately $188 million or fully diluted adjusted EPS per share of $2.27, the best adjusted EPS performance in the company's history. Another important positive this past year was our free cash flow generation. We have said for quite some time that you would see our free cash flow profile turn positive in 2019. And that is exactly what happened. We generated free cash flow as defined and reconciled in our MD&A of $127 million in 2019, a very healthy level and a good result by all accounts. And finally, our balance sheet ended the year strong, having a net debt to adjusted EBITDA ratio of 1.4x, excluding the impact of IFRS 16, very much within our target range despite paying dividends, funding a significant amount of share buybacks and increased our investment in NanoXplore where we now hold the 25% interest in the company. So all in all, 2019 was a very good year. The positive momentum and corresponding positive results have been building over the past number of years, and it continued into the early part of 2020. That was until the COVID-19 pandemic stopped us in the industry in its tracks in March. The early stages of which was visible in our Q1 results. Please turn to Slide 46. This slide outlines our Q1 2020 results. As you can see, sales, operating margin and adjusted EPS were all down year-over-year, essentially due to the COVID-19 related shutdowns, which kicked in, in the middle of March. Prior to the shutdowns, we were on track to meet Q1 guidance, which we withdrew for obvious reasons. COVID-19 has clearly presented some challenges for the industry and our business. And as a result, we've had to divert our attention and energy from our core business plan activities and respond to the situation on hand. We did what we had to do, everything a prudent and responsible organization in due in the face of the downturn of this magnitude. To some extent, as Pat already noted, we've been working on our downturn plans for a number of years now. So we were prepared. We didn't necessarily contemplate or model out a 100% drop in sales like we just experienced. But notwithstanding, our downturn action plans were such that we were able to react quickly. Ultimately, our response has been measured prudent and decisive with an emphasis on safety, cash conservation and enhancing liquidity. Pat has already outlined all the safety measures we have put in place. I would like to elaborate a bit on what we've done from a cash conservation and liquidity perspective. Now please turn to Slide 47. In terms of cash conservation in response to COVID, we aggressively flexed and reduced our cost base, eliminated our discretionary spending across our global footprint. These actions have included employee layoffs, temporary reductions of salary employee base wages of up to 50%, the curtailment of nonproduction spending and the delay of capital and tooling spending where and when appropriate. We have spent a lot of time on capital and tooling spend, in particular, and continue to do so. We are a capital-intensive business, so it represents a large component of our overall spend. In that regard, we are working towards decreasing our cash CapEx spend for 2020 by up to 20% from pre-COVID levels, which were projected to be relatively flat year-over-year, some of which is tied to changing OEM time lines around future new programs. In addition, we also temporarily suspended the repurchase of common stock under our normal course issuer bid, the continuation of which is to be reassessed at a later date. We also took measures to prop up our liquidity position as noted here. As at March 31, 2020, we had total liquidity of $300 million including cash and cash equivalents and availability under our revolving credit lines. In April 17, we further enhanced our liquidity position by exercising the accordion feature incorporated in our banking facility which increased our revolving credit lines available by another $280 million. Our banking facility also includes a $300 million allowance for asset-based financing that we can use for additional financing if required, of which $236 million was available as at March 31. With all this in place, we believe we have more than enough liquidity to withstand the COVID-19 related downturn and corresponding restart and recovery, whatever they may look like. Now please turn to Slide 48. In connection with our COVID response, I'd like to touch upon our balance sheet for a minute. As you can see here on this slide, we have done a great job over the last number of years, strengthening the balance sheet and keeping our leverage ratio in line with our targeted range of 1.5x. We ended '19 at 1.4x and entered the COVID-19 crisis in very good shape from a balance sheet perspective. Clearly, in light of the COVID related shutdowns, we are going to take a hit in this regard, but entering the crisis with a strong balance sheet, along with our available liquidity, has allowed us to navigate our way through this crisis with confidence. We have completed a forecast of cash flows and leverage ratios using available internal and external information, including current IHS projected volumes. Needless to say, as a result of the production shutdowns and the corresponding decline in EBITDA we are experiencing now, our net debt-to-EBITDA ratio will increase from current levels and exceed our targeted range in the short term. Our net debt-to-EBITDA ratio for bank covenant purposes is 3x, excluding IFRS 16. And based on the current view and customer restart plans, we do not see us exceeding this threshold. Now the reality is there's still a lot of uncertainty out there. So the shutdowns persist for whatever reason or there is a second wave of shutdowns or the recovery happens to be slower than expected. We may have to have a discussion with our banks. Quite frankly, we won't be the only ones. But that said, we don't see that being a hurdle that we can't overcome. We are a good credit and have very strong relationships with our banks and are comfortable that we would overcome this potential risk. As a matter of fact, we have already initiated discussions with our banks on the topic, more specifically around what we can do to give us more flexibility going forward. We want to come out with this crisis strong and be in a position to capitalize on opportunities as they present themselves. We are positioned well to do so. Please turn to Slide 49. I'd like to look forward now for a bit. This slide outlines our sales profile over the last decade or so. Clearly, as you can see, our top line has grown significantly over the years, hitting just under $4 billion in 2016. The 3 years following that in '18 and '19, our sales were essentially flat, if you exclude the impact of our assembly business moving to a purchase component consignment model. This flat sales profile was a result of us being strategically more focused on operational improvements, margin optimization, profitable product wins and allocating capital to its most profitable use. These things will continue to be at the core of our thinking and activity going forward, but with the tremendous progress we've made over the past number of years. And now that our core business is strong, we are turning our attention to growth again. We saw some growth in sales in '19 despite the overall industry being flat or down in some areas, driven by organic new business wins. That was nice to see, and we see more organic growth coming over the next few years as some key additional new business comes online with both new and existing customers. This, of course, absent the impact COVID-19 and the corresponding recovery will have on overall volumes in the short term, which at minimum result in 2020 sales being lower year-over-year. We shall see how the recovery plays out beyond that, there are definitely reasons to be optimistic about the future, as Rob outlined. Notwithstanding, we are committed to growing the enterprise over time in a disciplined and prudent manner. That commitment and change in focus to some extent is demonstrated in the Metalsa acquisition we closed in March of this year. It's been a while since we've had one of these, but ultimately, M&A is in our DNA. And this one, in particular, is a good transaction for us. For many reasons, as Pat outlined. It not only demonstrates our commitment to growth, but also the confidence we have in the team to take one of these on again. We are excited about its prospects and what we bring to it as it maximizes its potential over the coming years. Undoubtedly, as the dust settles from the COVID-19 downturn, other opportunities will present themselves, and we'll be ready and in a position to capitalize on such opportunities. Of course, if they make sense for us. So stay tuned. In the meantime, we are focused on getting through this downturn and coming out the other side as strong as possible. Please turn to Slide 50. And with that, our North American vehicle platform portfolio is positioned quite nicely. This slide outlines our top 10 platform exposure in North America. It's pretty clear that trucks, SUVs and CUVs have been gaining market share over the last number of years, and there is nothing out there to suggest that this trend will change post-COVID. As a matter of fact, we see it continuing to accelerate for various reasons, and we like that. As you can see here, we have a heavy complement of trucks, SUVs and CUVs in our portfolio, so we are well-positioned. About 75% of our current mix in North America is tied to this segment of the market, and we see that growing over the coming years. We think a lot about how and what to quote, and it is clear that our strategy has positioned us very well with the market. This will ultimately represent a tailwind as we recover from the current crisis. Consistent with that, current OEM restart schedules are clearly focused on replenishing truck and SUV inventories based on need. I ask you to turn to Slide 51. I'd like to quickly touch upon our operating margin profile. We have clearly made a lot of progress in this area in the last number of years as outlined here. As noted previously, absent the GM strike and higher tooling sales, our operating margin would have exceeded 8% in '19, up from about 4% in 2014. Not many companies out there can say that they have essentially doubled their margin in the last 5 years. It is clear that we have gotten stronger in a lot of places, and our margins clearly show it, driven by operational excellence and a prudent and hurdle-based approach to quoting work and allocating capital. Now in light of the COVID-19 pandemic and uncertainties it brings, we have withdrawn our medium-term operating margin targets, which had us growing to 9%. Obviously, there are still a lot of moving pieces out there. Volumes, timing, type of recovery, mix and so forth. With that said, all else being equal, once the market recovers, there is no reason why our margins couldn't get back to pre-COVID-19 levels. Fundamentally, we are the same company today as we were pre-COVID, a company focused on operational excellence and a prudent, disciplined approach to allocating capital. Expect more of that from us going forward as we emerge from the COVID-related downturn. That includes continuing to outperform our peers. Please turn to Slide 52. From a margin perspective, on an absolute basis, we are outperforming our competitors. This chart outlines our 2019 operating margin performance against our public company competitor group. At 7.5%, our 2019 operating income margin exceeded the margins of Magna, Linamar's auto segment, Nemak, Gestamp and Cooper Standard. It's really nice to be able to highlight this point in the last while. We have definitely come a long way. It wasn't too long ago that we were at the bottom of this list. So it's been really nice to see the progress, and we aim to keep it this way going forward. Please turn to Slide 53. I'd like to spend some time talking about cash flow, something very near and dear to my heart. We have obviously become a significant cash flow generator over the years, as you can see on this chart. The issue has been that it hasn't historically translated into free cash flow of any significance. And that was for very good reason. We've been building the business and optimizing our margin profile, and that requires investment. As you can see here from our recent CapEx levels. However, we have said that eventually, the free cash flow will return positive, and that is exactly what happened in 2019. '19 was a big year for us, a turning point of sorts. We generated $127 million of free cash flow in '19, a result we are very proud of. Now absent the COVID-19 crisis, we were expecting 2020 to be another solid year of free cash flow. Unfortunately, that's not going to happen for obvious reasons. Based on current industry projections for the rest of the year, we are currently targeting to be free cash flow breakeven in 2020. And but that is still a bit of a work in progress as we continue to assess the impact COVID will have on the market and work our way through our CapEx and tooling programs to assess new program delays. Looking forward, once we get 2020 behind us, we expect to revert back to being a positive free cash flow generator, similar to what you saw in 2019, subject, of course, to the market and volume environment. That is our commitment, and the team is focused on it. It's interesting. Nobody really wants to have to deal with the crisis of this magnitude, but a lot of good can come from it. As Rob has said in the past, you shouldn't let a good crisis score waste. In that context, one thing that has come from this one is a renewed appreciation for cash by the entire organization. Throughout the execution of our downturn plans, cash has been front and center of all activity. It's not every day you can truly break down and zero-base your costs in an environment with no production or sales. It's a very interesting frame of reference. We have been working on building a cash-oriented culture over the years. Something like this only serves to accelerate the movement. I think the organization has learned a lot from it, which will ultimately benefit the business going forward. Slide 54, please. Finally, I'd like to touch upon our capital allocation framework. Obviously, in the moment, our current focus is on protecting the balance sheet to weather the COVID-19 related storm. We are getting through this crisis in good shape and are comfortable with our positioning on that front. Longer-term, as already noted, we are committed to growing enterprise. And as such, we will not shy away from investing in the business as long as it makes sense and the opportunities meet our hurdles. This includes organic new business opportunities, investments in new products and possibly acquisitions that fit our product strategy. As demonstrated by our recent Metalsa acquisition, we are not adverse to M&A activity. After all, we have done it many times in our past. We've applied build-or-buy scenarios and where it was cheaper and faster to buy than build, we did so, especially given the fact that there were cheap assets available, although generally under distress. We suspect some of these types of opportunities will come up as the dust settles on the current COVID situation. Cracks in the supply base are already surfacing. We will be ready to capitalize if and when these opportunities arise, including takeover work from troubled suppliers. We are certainly willing to look at opportunities, but we feel it's very important to be disciplined and prudent as we were with the Metalsa acquisition. We're also open to investing in technology as with products to support our business, such as our investment in NanoXplore, which we are very excited about. Notwithstanding, we're always going to be committed to maintaining a strong balance sheet. This is paramount in any capital allocation decisions we make. A strong balance sheet, in addition to providing us the flexibility to invest for growth, helps us with our customers. Our customers, frankly, like companies with financial strength, as they know we are there for the long term. So we will maintain a strong balance sheet even as we fund our internal growth and make strategic investments. This philosophy is being put to the test with the COVID-related downturn. Our strong balance sheet is allowing us to weather the storm with confidence. Lastly, we're also not adverse to returning capital to shareholders via dividend growth over time and/or the repurchase of shares of excess cash at the appropriate times. We have demonstrated that commitment over the last couple of years via dividend increases and a significant amount of share buybacks. Since we instituted the normal course issuer bid in 2018, we have purchased just under 10% of our outstanding common shares spending approximately $87 million in the process. Now as noted earlier, we have suspended the buyback program in light of the COVID downturn. We'll reassess the program at a later date once things stabilize, but the aim is to continue to apply this philosophy of thinking over time. So that's all I wanted to cover from my end. Thank you for your time. Again, it's always a pleasure to talk about our company. And there's no denying that we've made some tremendous progress across the organization over the past few years. We obviously have some challenges in front of us in the moment, but are confident in our ability to weather the storm and to come out the other end strong. So thank you, and I'll turn it back over to Rob Wildeboer.

Thanks, Fred. And when I hear Pat and Fred talk, you can see why I'm so confident and optimistic about the future. We have a great team in place also, as I said, at the outset, the best in the business. We hope you've enjoyed our comprehensive overview. Before any Q&A, and I don't see any, I want to finish with one special thank you. So if you would turn to Slide 55. For many years, you've elected Scott Balfour as a director. This year he is retiring, as I mentioned earlier. Scott has been a terrific director for us and for you since 2013. He is a seasoned executive and director with deep knowledge of our company, finance, governance and so on. He's currently the CEO and Director of Emera and all its subsidiaries. That's a very big company, and he's very busy. So unfortunately, he needs the time to attend to his company and his increasing responsibilities there. We wish Scott the very best. As a token of our appreciation for Scott's service, we made him a plaque, the Martinrea Award of Merit which reads, your dedication and contributions to our company have been instrumental to our success. This award is an expression of our deepest appreciation with thanks from all of us. We'll give it to Scott when we can meet face-to-face. Let's all have a virtual hand for Scott. All right, it's time for questions, but we don't see any. So rather than ask each other questions about how we're feeling, which is you can tell, is pretty good. We look forward to a very exciting 2020. We look forward to a very exciting future. If anyone wants to have a discussion with us, please feel free to e-mail us or contact any of us at (416) 749-0314. We love talking to our shareholders and investors. To the employees that have heard this message, we thank you. We really appreciate all that you're doing for us. We really hope you appreciate the fact that we can lay out for you in a comprehensive fashion what our company is doing and where we sit today and the wonderful future that we hope to have. So having said that, thank you very much to all for participating. I declare this meeting closed.

This concludes the meeting. You may now disconnect.