ANNUAL REPORT 2013

Linamar Corporation

TABLE OF CONTENTS 1. Letter to Our Shareholders 5

2. Management Discussion & Analysis 13 3. Consolidated Financial Statements 37

(a) Managements Responsibility for the Consolidated Financial Statements 38 (b) Independent Auditors Report to the Shareholders of Linamar Corporation 39

4. Annual Meeting of Shareholders 81 5. Officers and Directors 81 6. Auditors, Transfer Agent & Registrar 81

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LETTER TO OUR SHAREHOLDERS Linamar Corporation

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Dear Shareholders, We are pleased to report to you on another very successful year at Linamar, another record in our history in terms of both sales

and earnings performance. We would characterize 2013 as a year of growth, teamwork and exceptional financial performance,

exactly what we set out to do at the outset of the year.

Creative Growth -- Innovation, Process Diversification and Performance We enjoyed a very successful year in 2013 in terms of both outstanding performance for our customers and securing

targeted business wins to continue to support our growth into the future.

Innovation continues to play a key role in meeting customer needs and enabling our growth. Our innovation agenda has 2 key

paths; product innovation to develop products our customers need and process innovation to find ways to produce those

products as cost effectively as possible.

Clearly, our product innovation agenda on the vehicle side is about light weighting, fuel efficiency and noise reduction. At

Skyjack it continues to focus on simple, high quality, easy to use designs that our customers can rely on. Both have been

winning strategies in helping us to grow market share.

Process innovation happens every day in every plant and office as we continually challenge ourselves to find a better, quicker,

more reliable, less costly way to do the work we do.

On the product side, our E-Axle, an electronically actuated axle, has been receiving rave reviews by our customers. The design

is compact, lightweight, quiet and can be easily adapted to a variety of vehicle architectures to basically turn almost any vehicle

into a hybrid. We hope to see this product in production over the next 3 to 4 years.

In a combination product and process innovation play we made a small acquisition this year of a great company in Germany

which had developed a highly efficient method to hydroform camshafts. The process is more modular, less capital intensive and

can be applied to a wider variety of engine configurations and volumes than traditional hydroforming methods. We are very

excited about bringing this technology to our other camshaft facilities globally and in fact have already won a major program in

North America using this technology.

Skyjack has been continuing to develop and launch new boom products which are helping to deepen our market share in these

products. Market share in booms increased at a rate 3 times the overall access equipment growth rate indicative of our

customers loving our products and snapping them up.

We continue to explore opportunities for process diversification to ensure we are most effectively delivering our products to our

customers. Finding ways to combine casting or forging technology with our machining and assembly strength is a great way to

optimize technology to meet customer needs. As an example, in our new camshaft acquisition we are forging our own lobes to

assemble onto the cam, eliminating intermediate costs and streamlining the quality process as a result.

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Our customer performance was exceptional in 2013 with more than 150 programs launching representing more than $500 million of additional business launched during the year. Continued business wins have resulted in a backlog of close to $2.8 billion in annualized sales still under launch at Linamar. In fact, 2013 was a record year in new business wins, particularly in the back half of the year, and we continue to quote a large book of opportunities. New business wins in total for the year exceeded $1.3 billion which will be an important factor in helping us reach future growth goals. All in all, we have secured enough new business to see us well on our way to longer term growth goals; in fact we have nearly $5 billion of annual sales based on booked business already lined up to be reached in the next 3 to 4 years. Teamwork -- Training, Accountability and Focus We have continued to build our global employee base, now over 18,000 strong, through a focus on readiness of our people in targeted areas, accountability and focus. We spent a lot of time in 2013 developing our top talent to help us grow into the future. We launched a pivotal Linamar developed Leadership Development Program (LLDP2) designed to hone the skills of our General Managers and Directors which has proven to be extremely effective and well received by our people. It is only by careful grooming of our top talent that we will continue to build the bench strength we need for future growth. Equally important is developing a deep bench of skilled tradespeople to guide technical improvements in our plants. With more than 400 apprentices in our plants globally alongside continued setup training and international recruitment efforts we are definitely growing that bench and gaining some momentum. Our Linamar Entrepreneurial Advancement Program, LEAP, continues to deliver in terms of developing young enthusiastic team members for managing our facilities. Each year we pick a handful of talented future leaders to put through a comprehensive cross functional multiyear training program designed to make them our General Managers of the future. Our first graduate has just taken on his first plant with 6 more people highly engaged in the program. LEAP is a pivotal part of helping us to deepen our leadership bench strength to support future growth. We have focused our team in 2013 on a One Team One Linamar approach to accountability and focus. Fewer initiatives mean flawless execution and complete alignment which is exactly the goal. Driving this concept of ownership and accountability which so successfully drove performance in 2013 will be a continued theme in 2014. Turnover is at record lows, employee engagement is up and motivation levels high as we continue to strengthen and build the employee base. Meeting Financial Commitments -- Lean Discipline, Cash Generation and Implementing Effective Systems Finally, 2013 was a year of exceptional financial performance and sales and earnings growth and cash generation at Linamar. Sales reached a new record, up more than 11% or nearly $375 million thanks to new program launches, a moderately growing global vehicle market and Skyjacks solid performance. Earnings also reached record levels up an incredible $84 million or 57% driving another year of great margin improvements. This contributed to a solid year of cash generation of nearly $224 million to bring our balance sheet to one of the strongest in our industry.

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2013 was a year to refocus our people on lean principles. All year long, we reiterated the concepts of lean and saw great

improvements as a result. Our lean journey started a long time ago but clearly needs refreshing from time to time with a growing

employee base that needs to understand the basics and be the drivers of change.

Effective systems to get people accurate information they need when they need it were also a priority in 2013. We implemented

new systems in each of the financial, customer/market and employee areas to more efficiently and accurately collect and analyze

key data. We are already seeing the results of these efforts.

Return on Capital Employed improved dramatically to 18.3% compared to 13.1% last year and Return on Equity hit 19.1%, the

highest level seen in more than a decade. The Powertrain/Driveline segment powered ahead with great improvements in both

sales, earnings and margins as did the Industrial segment thanks mainly to continued growth and market share penetration at

Skyjack. Industrial segment sales grew by nearly 17% but earnings well over doubled resulting in margins twice last years

levels.

Our strategy at Linamar is the formula to this success.

Strategy Our enterprise strategy is to focus on Diversified Manufactured Products to Power Vehicles, Motion, Work and Lives. Our business basically splits into 2 buckets Precision Products where we make precision metallic/machined components,

modules and systems for global vehicle, industrial and energy markets and Mobile Products where we make fabricated

assemblies and vehicles for global access, industrial, agricultural, consumer and construction markets.

These markets are hugely opportunistic. Take the global vehicle machined component and assembly business as an example.

There is roughly $3,000 of content in the engine, transmission and driveline systems of a passenger car, much more in a

commercial vehicle. Coupled with global vehicle production volumes this represents a market that today is north of $450

billion and will grow to more than $600 billion over the next 5 years. 70-80% of this work is still done by our OEM

customers themselves but they are increasingly looking to tap into great supplier technology and efficiency by outsourcing this

work. Powertrain/Driveline is the last major area of the vehicle to undergo this transition. This outsourcing wont happen

overnight; it