1

Scope

A u t o m o t i v eLinamar manufacturers every precision

machined component in the vehicle.

Linamar’s Skyjack division

is an industry leader in

innovative high quality aerial

work platforms.

Industrial

Transmission EngineChassis

AUTOMOTIVE

2

Chassis13.2%

Engine32.9%

Industrial9.0%

Other5.9%

Transmission38.9%

Sales by System

as of December 31, 2003

Warranty Failure/Analysis 1 Off Vehicles

Test & Analysis

Prototype Casting Procurement & Production Machined Components

Simple Assembly

Modules

Systems

Design

Scope of Capabilities

3

Sales Sales -- 20032003

10 Yr CAGR – 17.4%10 Yr NA Vehicle Prod. – 2.7%

as of December 31, 2003

135812091229

1329

979

770

608545

431321

1530

200

400

600

800

1000

1200

1400

1600

1800

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Year

$ (m

illio

ns)

Operating EarningsOperating Earnings–– 20032003

$22.6

$34.8

0

10

20

30

40

50

2003 2004

Q1

$ (m

illio

ns)

First QuarterFirst Quarter

$82.9$96.0

$102.5

0

15

30

45

60

75

90

105

120

135

2001 2002 2003

Year

$ (m

illio

ns)

YearYear

as of March 31, 2004Operating Earnings is calculated as gross margin less selling, general & administrative expenses and equity loss.

4

Globalization – 34 Manufacturing Locations Worldwide

Manufacturing Facility- 32 Joint Venture/Mfg. Facility - 2 Development Centres – 4Sales Offices - 8

24 - Ontario2 - Ontario1 - Ontario

1 - Iowa 1 – Michigan1 – Michigan1 – Kentucky

1- Illinois

3 – Mexico1 - Mexico

3 – Hungary1 – Germany1 – Hungary1 – Germany1 – Germany 2 – United Kingdom

24 Facilities ISO 900010 Facilities QS 900014 Facilities ISO 14000

Low Cost LocationsStrategic to Customers Sites

1 - Japan

People

Employees• 9441 employees• 25 % technical workforce• Non unionManagement Depth & Stability• Senior Executive Group –

average tenure 14 years.• 4 Group Presidents - average

tenure 10 years.• Over 150 plant management

team members - more than 10 years average tenure.

• Stable/Motivated Teams

5

Vehicle TrendsVehicle TrendsNA Production NA Production -- 2003 to 20092003 to 2009

• In the vehicle trends period 2002 to 2009:– Cars decline from 43.9%

to 37.5%– Trucks increase from

56.1% to 62.5%– Cross-over (multi-activity

“tall – cars”) increase from 8.2% of total NA production to 20.5% whether they are car or truck-based

– Any change creates an opportunity

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20022003200420052006200720082009

Total Lt. Prod'nCarTruckX-Over

Industry OverviewIndustry Overview

Opportunity

Opportunity

Transmission Technology TrendsTransmission Technology TrendsNA Production 2003 to 2009NA Production 2003 to 2009

• Mid term transmissions trends: – 3 & 4 speed automatics &

manuals continue to decline

– The promise of CVT’s is overshadowed by the cheaper and more reliable 5 & 6 speed Automatics

– Any change creates an opportunity.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

20022003200420052006200720082009

Total AutoTransAT - 4

AT - 5

AT - 6

Manual

CVT

Industry OverviewIndustry Overview

Opportunity

6

Engine Technology TrendsEngine Technology TrendsNA Production 2003 to 2009NA Production 2003 to 2009

• During the vehicle trends period ‘03 – ’09 there will be a large increase in the market share of multi-valve engines in NA production

• The last bastion of 2-valve & push-rod technology is GM for non-premium V-6 and most V-8 applications

• 4-Valve is the most prevalent with wide usage by all OEM’s

• Any change creates an opportunity.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

20022003200420052006200720082009

2 Valve3 Valve4 Valve5 Valve

Industry OverviewIndustry Overview

Opportunity

Opportunity

Engine TrendsEngine TrendsNA Production 2003 to 2009 ContNA Production 2003 to 2009 Cont’’dd……

• During the vehicle trends period ‘02 – ’09 V6’s dominate but there will be large increases in the market penetration of both Inline 4 cyl. and V8 engines

• The Big-3 OEM’s continue to increase their production of light trucks and the Japanese OEM’s (excluding Honda) offer more Lt truck product offerings with V8 engines.

• More I4’s come from Honda, Toyota, Global Engine Alliance, Volkswagen

• Any change creates an opportunity

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

20022003200420052006200720082009

L4L5 / L6V6V8

Industry OverviewIndustry Overview

Opportunity

Opportunity

Opportunity

7

3 valve push rod

2 heads (new design)

1 cam(new design)

3 valve SOHC

2 heads (new design)

2 cams (new design)

5 valve DOHC

2 heads (new design)

4 cams (new design)

4 valve DOHC

1 head (new design)

2 cams (new design)

3 valve SOHC

1 head (new design)

1 cam (new design)

Engine Technology Trend Opportunities

In Lin

eV

Style

4 valve DOHC

2 heads (new design)

4 cams (new design)

2 valve push rod style1 head1 cam

2 valve SOHC1 head1 cam

5 valve DOHC

1 head (new design)

2 cams (new design)

2 valve push rod style2 heads1 cam

2 valve SOHC

2 heads2 cams

Keith WettlauferKeith WettlauferCFO & VP of Strategic CFO & VP of Strategic

DevelopmentDevelopment

8

Strategic Direction Strategic Direction –– Financial PerspectiveFinancial Perspective

2004 update of 2003:• Positioned to grow - $10 Billion in sales

(target)

• 6 Point Strategyto capitalize onoutsourcing trend

• Maintain financial strength» EPS » Return on Assets » Strong balance sheet

80%Opportunities

20%Outsourced

$100 Billion Market

Machine Components

Sales Sales -- 20032003

135812091229

1329

979

770

608545

431321

1530

200

400

600

800

1000

1200

1400

1600

1800

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Year

$ (m

illio

ns)

10 Yr CAGR – 17.4%10 Yr NA Vehicle Prod. – 2.7%

Sales + 12.7%excl. FX + 17.2%

N.A. Auto content + 7.4% N.A. Auto + 4.3% market - 2.8%European Auto content + 22.7% European Auto + 19.7% market - 2.4%

9

Sales GrowthSales Growth

$377.1 $373.0 $371.5

$408.5

$436.9

$250.0

$300.0

$350.0

$400.0

$450.0

$500.0

Q1 Q2 Q3 Q4 Q1

Year

$ (m

illio

ns)

2003 2004

Comparative Quarter Trends2003 Q4 Growth over 2003 Q1-3 average + 9.3%2004 Q1 Growth over 2003 Q1-3 average + 16.9%

2003

Sales Sales -- 20032003

2003Automotive Sales

Total Sales

Effectiveness of Strategic Plans:

-Engine Growth 28.9%

-Product Focus – 5C’s = 47% of engine

-Industrial Performance Sales/Earnings

2002Engine390.832%

Chassis283.719%

Transmission590.949%

Engine503.339%

Chassis202.616%

Transmission595.945%

Industrial2.3%

AutomotiveComponents87.9%

Industrial9.0%

AutomotiveComponents82.7%

20032002

10

Earnings AnalysisEarnings Analysis

$264.6

$294.8

245

250

255

260

265

270

275

280

285

290

295

300

2002 2003

Gross Margin Before Depreciation Operating Margin

Absolute $ Growth + 11.4%

% 19.5% 19.3%

Absolute $ Growth + 6.9%

% 7.1% 6.7%

$95.9

$102.5

92

94

96

98

100

102

104

2002 2003

Comparative Quarter TrendsComparative Quarter Trends

$73.1 $70.7 $70.2

$80.8$87.6

19.4%

18.8% 18.9%

19.8%20.1%

30

40

50

60

70

80

90

100

Q1 Q2 Q3 Q4 Q1

$ (m

illio

ns)

17.50%

18.00%

18.50%

19.00%

19.50%

20.00%

20.50%

21.00%

2003 2004

Gross Margin GrowthBefore Depreciation

$22.5$24.7

$22.8

$32.3$34.8

10

15

20

25

30

35

40

Q1 Q2 Q3 Q4 Q1

$ (m

illio

ns)

2003 2004

Operating Margin Growth

20032003

Operating Margin Growth:2003 Q4 Growth over 2003 Q1-3 average +38.6%2004 Q1 Growth over 2003 Q1-3 average +49.4%

11

Operating Cash Flows Operating Cash Flows -- EBITDAEBITDA

$26.7$42.3

$75.2$90.2

$126.1

$182.9$190.5

$201.2

$223.4

$176.2$184.0

$204.5 *

020406080

100120140160180200220240260

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

$ (m

illio

ns)

* Adjusted for one-time expense item

EBITDA GrowthEBITDA Growth

46.148.8 48.6

60.363.9

10

20

30

40

50

60

70

Q1 Q2 Q3 Q4 Q1

Year

$ (m

illio

ns)

2003 2004

Comparative Quarter Trends2003 Q4 Growth over 2003 Q1-3 average +26.2%2004 Q1 Growth over 2003 Q1-3 average +33.7%

2003

12

Return on Invested Capital Return on Invested Capital -- UPDATEUPDATE

2002 12.4%2003 11.0%

ROIC TrendQ4 2003 14.3%Q1 2004 14.0%

Financial Strength Financial Strength -- 20032003

LINAMAR Industry

(a) LTD Debt/Equity Ratio 0.28:1 >1:1

(b) Current Ratio (excluding borrowings) 1.8

(c) Interest Coverage 8.4 times

(d) Operating Cash Flow to Long Term Debt 1.2 times LTD

13

2004 Q1 Recap2004 Q1 Recap

2002 2003

EPS $0.17 $0.29

Net Earnings Growth +63.5%

Earnings Before Interest & Taxes Growth +53.8%

EarningsSales

Sales Growth +15.8%

$12.4

$22.6$20.2

$34.8

0

5

10

15

20

25

30

35

40

Net Earnings Earnings Before Interest &Taxes

2003 2004

$377.2

$436.9

300

350

400

450

2003 2004

SummarySummary

• Sales growth.

• Greater earnings growth.

• Great improvement in ROIC.

• Powertrain last major area of vehicle to be outsourced.

• Linamar right combination of technical expertise and financial capacity to handle powertrain component, module and system outsourcing.

14

Jim JarrellJim JarrellChief Operating Chief Operating

OfficerOfficer

Big 3 Market Share ErosionTax Changes

& Currency Uncertainties

Technical Skills GapLow Cost Country CompetitionMetal Market Fluctuations

& Fuel Cost Increase

Negative Pricing Realities for Vehicles

& Continued Customer Cost Reductions

Border Delays

Big 3 Market Share Erosion

Negative Pricing Realities for Vehicles &

Continued Customer Cost Reductions

Low Cost Country CompetitionTax Changes & Currency Uncertainties

Metal Market Fluctuations &

Fuel Cost increase

Border DelaysTechnical Skills Gap

15

Linamar

Execution ofExecution of

Core IdeasCore IdeasFlawless Project /Plant Launches

Lean Cost Effective Organization

EffectiveCommunication

Competent Capable

Organization

SalesGrowth

Stepping StoolOptimization

16

Execution of Execution of Core IdeasCore Ideas

Flawless Project /Plant Launches

Customer Focus Plans “APQP”

Effective Supplier Management System

Right People / Right Place / Right Time

Execution ofExecution of

Core IdeasCore Ideas

Competent Capable

Organization

Leadership Training

Technical Training

Globalization of HR Systems

Performance Measurement System

17

Execution ofExecution of

Core IdeasCore Ideas

Lean Cost Effective Organization

Cost Attack Teams (CAT)

Value Stream Mapping

Standardized Work Flow

5S Workplace Organization

Technical Review BoardsError Proofing

Scrap Attacks

Quick ChangeKaizen Kanban

Execution ofExecution of

Core IdeasCore Ideas

SalesGrowth

New Sales Organization

Transplant Penetration (Honda, Nissan, Toyota)

Opportunities in Asia

18

Execution ofExecution of

Core IdeasCore Ideas

New Sales Organization

Transplant Penetration

(Honda, Nissan, Toyota)

Opportunities in Asia

Strategic Acquisitions

SalesGrowth

Execution ofExecution of

Core IdeasCore Ideas

EffectiveCommunication

Linamar Brand

Communication Tools

Remote Location Tie In

19

Execution ofExecution of

Core IdeasCore Ideas

Stepping StoolOptimization

Linamar

20