Northern Technologies International Corporation · NASDAQ:NTIC
Northern Technologies International — Q4 2022 Earnings Presentation
17 slides from Northern Technologies International's earnings presentation, Nov 16, 2022
Slide 1: Fourth Quarter FY 2022 Investor Presentation
Northern Technologies International Corporation Fourth Quarter FY 2022 Investor Presentation NTIC’s environmentally friendly technologies deliver leading corrosion inhibiting products and services, as well as advanced bioplastic packaging solutions Nasdaq: NTIC
Slide 2: Disclaimers: Forward-Looking Statements
Disclaimers Forward - Looking Statements Statements contained in this presentation that are not historical information are forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . Such statements include estimated market growth rates, NTIC’s strategic
Slide 3: Northern Technologies International Corporation: Zerust, Excor and Natur-Tec solutions
Northern Technologies International Corporation Zerust®/Excor® offers a wide range of products and solutions to solve corrosion issues Environmentally friendly corrosion inhibiting products and services and advanced bioplastic packaging solutions Natur - Tec® provides biobased and compostable packag
Slide 4: At a Glance
At a Glance Northern Technologies International Corp. • Converting environmentally beneficial technologies into value added products and services for industrial and consumer applications • Providing Volatile Corrosion Inhibitor (VCI) based solutions for almost 50 years – Industrial applications – Oi
Slide 5: Comprehensive Corrosion Management
Comprehensive Corrosion Management – Environmentally responsible corrosion protection products & services – Worldwide on - site technical service for corrosion prevention – Repeatable, consumables sales model – Most economical method for short term corrosion protection of metal parts during shipment
Slide 6: Growing Global Market Share
Growing Global Market Share With 16 JVs and 10 operating subsidiaries, NTIC operates in over 65 countries and is the only VCI company that can supply and service customers globally 21% 7% 25% 34% Fiscal 2022 Net Sales by Geography China Brazil India Other United States 13% Fiscal 2017 Net Sales by G
Slide 7: Compelling Joint Venture Model
Compelling Joint Venture Model Overview Financial Model – 16 international joint ventures • JVs provided rapid global expansion with little capital investment for all JVs, most established in 80’s & 90’s • Generally, 50/50 ownership with local JV partner • NTIC receives ~7% fee based on JV sales and
Slide 8: Emerging Oil & Gas Applications
Emerging Oil & Gas Applications – NTIC’s patented VCI processes and solutions produce meaningful cost savings by minimizing maintenance costs and downtime on critical oil and gas industry infrastructure – Large and growing addressable market – In mid - 2021, the American Petroleum Institute (API) va
Slide 9: Leading Bioplastic Technologies
Leading Bioplastic Technologies – Natur - Tec’s ® patented process makes it easier to manufacture finished products at a lower cost, and with better mechanical performance – Broad product portfolio provides one - stop for bioplastic solutions – Sustainable alternatives to conventional plastics for t
Slide 10: Strategic Plan Focused on Creating Long-Term Shareholder Value
Strategic Plan Focused on Creating Long - Term Shareholder Value Strategic Objective : 15 - 20%+ top line revenue growth w/ SG&A expense growth < ~10% Total Net Sales (in millions) Earnings Per Diluted Share Control operating expenses domestically and at subsidiaries Realize potential of oil and gas
Slide 11: Quarterly Sales Trends
Quarterly Sales Trends (in millions) NTIC China Sales Remain Depressed From Continued Covid - 19 Related Lockdowns JV Quarterly Sales Natur - Tec® Market Rebounding From Covid - 19 • Quarterly sales continue to recover from the COVID - 19 crisis and NTIC reported record total sales for the fiscal 20
Slide 12: Track Record of Value Creation
Track Record of Value Creation Since 2017, NTIC has increased its annual dividend five times, reflecting the Company’s commitment to creating value for shareholders NTIC has $2.6 million remaining under its stock repurchase program as of August 31, 2022 Insiders aligned with shareholders own approxi
Slide 13: Sales Dashboard and Drivers
Sales Dashboard and Drivers $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $ - FY 2020 FY 2021 FY 2022 Brazil U.S. - Sales to JVs FY 2017 FY 2018 U.S. North America India Natur - Tec ® FY 2019 NTI China Singapore Oil & Gas Net Sales Growth (dollars in millions) Natur - Tec® ZERUST® FY2020 – Total s
Slide 14: Sales Composition
Sales Composition 14 Notes: Dollars, in millions $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $ - FY 2020 FY 2021 FY 2022 Zerust China Zerust India Sales to JVs - Zerust Oil & Gas FY 2017 FY 2018 FY 2019 North America Zerust Zerust Brazil Singapore Natur - Tec Net Sales Growth Actual FY 2020 FY 2
Slide 15: Limited Capital Requirements
Limited Capital Requirements (graphs in thousands except for percentages) Asset Light Business Model: • Only $86.2 million in total assets at August 31, 2022, which included $21.8 million in investments in joint ventures, and $10.7 million in goodwill and intangibles Allocating Capital To Support Lo
Slide 16: Making a Difference: Commitment to Sustainability
Making a Difference: Commitment to Sustainability Our Environment NTIC develops technologies that support green manufacturing processes and energy production through three divisions: Zerust ®: Solutions help reduce waste and the energy to make new items Zerust ® Oil & Gas: Solutions and applications
Slide 17: Why NTIC
Why NTIC • Creating a diverse portfolio of environmentally beneficial materials • Operating in large, dynamic, and global markets, with favorable long - term trends • Global footprint and service focus, as well as 12 patents and 50 trademarks create competitive advantages and barriers to entry • Inv
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