Exhibit 99.1
Welcome
2004 Annual
Stockholders’ Meeting
Clarion Technologies
One step ahead
Board of Directors
Craig Wierda Jack Rutherford Fred Sotok Steve Olmstead Frank Steck Tony Wauterlek Ken La Grand | Chairman Director Director Director Director Director Director |
With the exception of historical factual information, the statements made in this presentation include forward-looking statements. These statements are based upon current expectations and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain known and unknown assumptions, risks and uncertainties that could cause actual result to differ materially from those included in or contemplated by the statements. These assumptions, risks and uncertainties include, but are not limited to our expectations regarding future performance, our ability to execute our long-term strategy and those discussed or indicated in the Company's Annual Report on Form 10-K for the year ended December 27, 2003 and in all documents filed by the Company with the Securities and Exchange Commission. The Company disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this presentation.
2003
Annual
Business Review
Clarion Technologies
One step ahead
Clarion
› | MISSION: To provide products and services that set the industry standards for quality, delivery, technology and cost leadership. |
Clarion Profile
› | Geographic presence |
› | Seven manufacturing locations |
› | 170 injection molding machines |
› | Over 600,000 sq. ft. of manufacturing |
› | 725 team members |
Clarion
2003 Accomplishments
› | Revenue increased by 21% |
› | Operating Income increased 52% |
› | Achieved positive Net Income |
› | Started production in Pella, Iowa |
Clarion
Operational Strategy
It’s all about Execution!
› | Strong Operational Leadership |
› | Technical Competence |
› | Doing whatever it takes.... . |
Clarion
Financial Review
Clarion
Financial Key Points
› | 21% Sales growth (+$17M) in 2003 |
› | 52% Operating Income growth (+$1.7M) in 2003 |
› | Secured additional banking partners |
› | Low cost capital additions: |
• | Purchased 24 machines |
• | Re-opening of Cedar Street facility |
• | Asset purchase to start Iowa operations |
Clarion
Gross Margin % of Sales
2004 projected
Clarion
SGA % of Sales
2004 projected
Clarion
Op Income % of Sales
2004 projected
Clarion
Net Income % of Sales
2004 projected
Clarion
Historical by Quarter
Clarion Strategy
To be a major supplier of injection molded projects and assemblies in three primary markets
Automotive
Consumer Products
Office Environments
Clarion
Customer Strategy
Automotive Customers
Customers 2002
Intier Automotive
Johnson Controls
Lear Corporation
New Customer 2003
Magna Donnelly
Clarion
Customer Strategy
Consumer Products Customers
Customers 2002
Electrolux
Refrigeration – Anderson, SC
Refrigeration – Greenville, MI
Frigidaire
American Yard Products
New Customer 2003
Electrolux
Dishwasher – Kinston, NC
Washer/Dryer – Webster City, IA
Freezer – St. Cloud, MN
Maytag
Clarion
Customer Strategy
Office Environments Customers
Current
Steelcase
Clarion
Sales Growth
Clarion
Customer Agreements
• | Electrolux Supply Agreement |
– | 5 Years —Starting May 2002 – May 2007 |
– | Best Efforts to achieve $100,000,000 in annual sales by the end of 2004 |
Clarion
Customer Agreements (con’t)
• | Lear LSA (long term supplier agreement) |
– | Multi - -Year Agreement |
– | Preferred supplier status |
– | New business and transfer opportunities |
• | Transfer Business in excess of $2M in 2003 |
Clarion
Customer Agreements (con’t)
• | Plastech Agreement |
– | Life of parts agreement |
• | Equates to over $30M in sales |
• | Maytag Agreement |
– | Agreement to transition $8M in existing business |
– | Preferred Supplier Status – In Process |
– | New business and transfer opportunities |
Clarion
Committed New Business
Intier Automotive Lear Corporation Magna Donnelly | Program GMT-900 CN ZW | Product OVH Brackets Seating H-Frame | S.O.P. July '06 July '05 Sept. '04 | Projected Sales $2.5M $1.6M $2.3M |
Clarion
Committed New Business
Letter of Intent (LOI) for $30 million in new business:
• | $10M in next 90 days |
• | $20M before end of 2004 |
Clarion Expansion/Growth
Iowa
Clarion
Electrolux Relocation
2004
No effect in sales
2005
Less than 15% movement to Mexico
2006
Majority of transition to Mexico
Clarion Expansion/Growth
Mexico
Clarion
What does this yield?
Clarion
Sales Growth (2002-2005)
Clarion
What can you expect in 2004?
› | Sales Growth of greater than 20% |
› | Operating Income growth exceeding sales growth |
› | Net Income Increase of 2 x |
› | Operation in Mexico |