1
Surviving and Thrivingin theInternational
AutomotiveSupply Base

• International Business Group of West Michigan
• November 12, 2008

2
Agenda

• History and current statistics
• Success with Japanese and German automotive
  suppliers
• Exports to Mexico, Japan and China
• Future plans
• Questions Answers

3
History

• May 1987 - Team 1 Plastics, Inc. formed. Craig
  Carrel, and Gary Grigowski original owners.
• January 1988 - Production begins in Albion, MI
  with 2 machines.
• June 1992 - Production moved to new plant at 927
  Elliott Road with 7 machines.
• August 1994 - Production begins with 4 shifts and
  24 hrs/7 days a week.
• May 1998 Team 1 Carolina is formed as insert
  molding plant moves to Greensboro, North
  Carolina.
• May 2000 Minority joint venture company Team
  Emergent formed.
• October 2002 Team Emergent and Team 1 Carolina
  operations merged.
• December 2003 Team Emergent moves to larger
  facility (36,000 sq ft)
• March 2005 TS16949 certification received.
• July 2007 Team 1 sells it remaining interest in
  Team Emergent.
• January 2008 Team 1 celebrates its 20th
  anniversary.

4

• Craig Carrel, President
• Gary Grigowski, Vice President
• Plant size 45,000 sq. ft.
• 24/7 production/logistic support
• Horizontal molding machines ranging in size from
  25 to 200 tons (Sumitomo, Nissei, Toshiba,
  Mitsubishi, Sodik)
• Highly automated molding cells with fully
  integrated production monitoring system.
• TS16949 certification March 2005

5
Areas of Expertise

• Injection Molded Components
• Lenses and light pipes
• Housings and covers
• Precision components
• Light sub-assemblies
• Major car lines - Accord, Camry, Odyssey, and
  Corolla

6
Target Market

• Started business in 1988 with Japanese automotive
  suppliers as main target market.
• Takes several years to develop initial
  relationship and typically low volume and non
  critical parts.
• If successful begin to grow relationship into
  higher volumes and more critical parts.
• Could take up to 5 years to see results.
• Once you have established relationship very loyal
  and willing to work with you to improve.
• Our European customers exhibit many of the same
  characteristics.
• Team 1 believes that most successful customers
  use this model and truly value their suppliers.

7
Customers

• IIStanley Automotive and Electronics - 1989
• Tokai Rika - 1990
• Denso - 2000
• ASMO - 2001
• Mann Hummel 2002
• Preh - 2007
• 85 of Team 1 parts end up on Toyota or Honda
  cars

8
Team 1 Global Supplier

• Limited experience shipping low volume parts to
  Canada and Mexico in the past.
• Last couple of years a dramatic shift in shipping
  higher volume parts.
• Weak dollar
• Common components shipped to multiple locations.
• Shipping common parts used in U.S. to Japan for
  last year.
• Projecting 10 of sales to Mexico in next few
  years.
• Ford program transferred to China but the lens
  will be supplied by Team 1 in 2009.
• Issues
• Higher inventory / slower inventory turns
• High quality levels
• Truly a global business and amazing that we are
  shipping globally from Albion.
• Marketplace has grown from Midwest to global.

9
Future Plans

• 1st half of 2008 strong
• 2nd half of 2008 has been very interesting.
• Planning on 2009 remaining down.
• No improvement until 2010.
• Strong financial stability
• Cash in bank
• Financing in place
• Paid down debt
• Survive and thrive in these difficult economic
  times.
• Weak competitors
• Customers value execution and stability

10
Questions?