Northern Technologies International Corporation · NASDAQ:NTIC
Northern Technologies International — Shareholder Meeting (January 2016)
40 slides from Northern Technologies International's shareholder meeting presentation, Jan 15, 2016
Slide 1: Annual Meeting of Stockholders
Annual Meeting of Stockholders January 15, 2016 Northern Technologies PA “44 International Corporation NASDAQ:NTIC
Slide 2: Forward-looking statements and industry information
such other statem ents which can “expect,” “anticipate, ‘estim ate,” “will,” “would,” “could,” words of similar pas faire daiesendeoy ot beliefs and expectations of NTIC’s! dare Pecunia oan ejected or implied. Slr poreia ta effect on NTIC’s business and opereting results of NTIC’s decisi ITICCh dema
Slide 3: Worldwide Net Sales
WORLDWIDE NET SALES = (x0) Fy 2003 FY 2004 FY'2008 | FY 2006 FY2007 FY 2008 FY2009 FY 2010 FY2011 FY 2012 FY20L8 | FY2018 FY 2015 “Worldwide sales represent Anca mist ine resduring eachyear. NASDAQ: NTIC 3
Slide 4: Fy2008 FY.2008 FY2005 FY.2006 FY. 2007 FY 2008. FY 2010 FY201L FY2012 FY201 FY201d
Fy2008 FY.2008 FY2005 FY.2006 FY. 2007 FY 2008. FY 2010 FY201L FY2012 FY201 FY201d FY 2015 NASDAQ: NTIC 4
Slide 5: Strong Balance Sheet
Strong Balance Sheet (000,000) 2015 ‘August 31, August 31, 2014 NASDAQ: NTIC * INVESTMENTS IN JOINT VENTURES are @ August 31,2015 * There is no debt or LT liabilities on the balance sheet @ August 31, 2015
Slide 6: Net Sales and Income Summary
(000,000) MES ENGEL . = NET SALES 2015 2014 NET SALES: a of between $34 - $37 ZERUST® INDUSTRIAL $213 $18.9 MAINA in Ey 2016 ZERUST® JOINT VENTURE 2.8 eps ZERUSTEIOINSIGES 19 all *Expected NET INCOME TUR 43 3.0 Gites ont TOTAL NET SALES 30.3 26.8 Pee eet ees Million in FY 2016 COST OF GOODS SOLD 20.
Slide 7: NTIC Solutions
NTIC Solutions < Leveraging | expertise and a global presence into growth. == © itabl | i il and * Compostable global core business infrastructure * Biobased * Inventor of base technology licatic *35+ years of succ: * Exceptionally large market potential formulations Finished goods
Slide 8: Pioneers in Corrosion Control
NTI y Pioneers in Corrosion Control Zerust’) _ ssl \ JS Inventors and First-to-Market Global Research Labs Protects Valuable Assets Turn-key Solutions
Slide 9: Trusted Corrosion Solutions
» Trusted Corrosion Solutions —_ NTI Revenue Model: | Product sales and service contracts Global Market Leaders * Onsite global direct sales and Distribution: Duis sles anilor ait censure techeresl cunsor and 3° party distribut “ pport Growth: | Expansion of non-auto ite Bene scements ah core Hae a
Slide 10: Key Industries
Key Industries AUTOMOTIVE MINING/ HEAVY EQUIP. AGRICULTURAL EQUIP, A . to in decli L ty in decli Pa i y y since 2009, is exp d i is exe d i until 2017 until 2017 Zerust Industrial has continued to see significant sales opportunities in all 3 sectors!
Slide 11: Zerust Outdoor Preservation Shrink Film
y ) 150-OP a Zerust’? Outdoor Preservation Shrink *"!/
Slide 12: Zerust Axxanol Spray-G
NTI y _ Zerust® Axxanol Spray-G a Zerust?) . Sprayable Grease with 12 months of exceptional outdoor corrosion protection.
Slide 13: Zerust Axxawash NW-10
Zerust® Axxawash™ NW-10 <— o _Zerus <a Deactivates ionic contaminates to prevent rust after cleaning.
Slide 14: Zerust Axxavis HST-10
NTI A — Zerust® Axxavis™ HST-10 < } Zerust*) - — Protects against ferrous flash corrosion during hydrostatic testing.
Slide 15: Zerust Globally
ZERUST GLOBALLY
Slide 16: Fx Impact Analysis 2015 v 2016
Fxcimpact Analysis 2015 v 2016 USD per 1 EUR 11 Jan 2014 00:00 UTC - 11 Jan 2016 18:10 UTC EURIUSD close-1.08830 low-1.04954 high:1.39306 2018 Impact of Fx on E Equity 042015 v Qi 2016 Equity 022014 v Q2 2015 Equity 032014 v C2 2015 Equity 042014 v Q2 2015, Total YTD Fx Equity Income Impact Germany-
Slide 17: Zerust in China
ZERUST IN CHINA
Slide 18: Chinese name translations
° RE = “Tianjin” e Ja 585 = phonetic approximation of “Zerust” ¢ BHSSEEA = “Corrosion Prevention Technologies” ¢ APRAS] = “Limited Liability Company” ¢ 33 = “Shanghai” ¢ SAB) = “Subsidiary”
Slide 19: Tianjin Zerust Corrosion Prevention Technologies LLC
1. ARES ARAAIRAS Tianjin Zerust Corrosion Prevention Technologies LLC — 1999 — Formation of Tianjin Zerust joint venture * Ownership - 50% NTI ASEAN — 50%5R 3 = Meng Tao . RBG SFR SMRAT Le 9 Ae Tianjin Zerust Corrosion Prev. Tech, LLC Shanghai Sub. — 2003 — Formation of Tianjin Zerust (Shanghai Subs
Slide 20: Tianjin and Shanghai Zerust entities
1. ABER ARAARAA Tianjin Zerust Corrosion Prevention Technologies LLC 2. RRR RHMRRARRADLSAAR Tianjin Zerust Corrosion Prev. Tech. LLC Shanghai 3. ESR ER NMSARARARAT Shanghai Zerust Corrosion Prev, Packaging Tech. LLC
Slide 21: a aya a
“@ a aya a ee Ar & pea ALM Soo R LAE Bo soo TANS ITO
Slide 22: Shanghai Zerust reported revenues per tax filings
¢ According to Chinese government tax filings, Shanghai Zerust reported revenues in excess of USS3 million (RMB18.8 million) in 2010. AGUA RL: LABREEAR ae
Slide 23: Attempts at peaceful dissolution failed
¢ All attempts at a peaceful dissolution failed. * Consequently, NTIC: . Launched NTIC Shanghai Co., Ltd. . Filed civil lawsuits for damages in Chinese court. . Reported Meng Tao and Xu Hui to the authorities for tax evasion. - WN PR uw Reported Tianjin Zerust to the Ministry of Trade and Commerce f
Slide 24: ACD ER CLUE) ABA RS
NT 5, ACD ER CLUE) ABA RS \Zerust — ee — |}
Slide 25: NTIC Shanghai Co., Ltd.
_ NTIC SHANGHAI CO., LTD. <., ) Zerust) 55
Slide 26: NTIC Shanghai HQ
Slide 27: Oil & Gas
OIL & GAS
Slide 28: Finding Success in Oil and Gas
Revenue Model: Distribution: Target Markets: Value Proposition: Finding Success in Oil and Gas NTI peat busines: Direct sales and/or via joint pare disci Oil refineries, off-shore production al 1 gas stations. Minimizes maintenance downtime Extends infrastructure service life Reduces risk of environ
Slide 29: FY2015 Budget Planning
120.00 FY2015 Budget Planning A FY2016 Budget Planning 40.00 p30 \ aL for most oil producers ae 28% drop —— Beginning of FY 2016 Through FY2015 §36 $33 si “ PP FP Pe Fe 3 a oF 9 og oes PRIS 4 SO Oe
Slide 30: 1109.00
1109.00
Slide 31: Oil prices continue to drop
Just as oil prices appeared to stabilize entering FY2016, the m ped This has brought oil to a level considered ‘below break even v for most © ‘Oil aia Clie Back int ito a raed of "additional uncertianty and ‘cost avoidance’ ci the past 7 months tinued to drop 65.00 60.00 a 55.00 q | 50.00 > | 45.00
Slide 32: Natur-Tec
NATUR-TEC
Slide 33: Advanced Bioplastics
Advanced Bioplastics < Meeting the Demand for Compostable and Biobased Plastics | = i | Slob i finished \ eS . ia hl * Master J global bio-plasti (amend standaras year over year i { green! ee and carbon-footprint reduction initiatives Customized Resins NTI,
Slide 34: Natur-Tec Core Strengths
Natur-Tec® Core Strengths <_, ive, difficult t patented process ae Organic/Inorganiol Materials! s iv 7 A > | A J | X A @ NatureWorks . > = Selected Users of Natur-Tec : — TESLA CAT
Slide 35: Making Business Green
Making Business Green <, NTI Revenue Model: Sales Cee prods and customized re: Distribution: pies Sales and/or via int ventures and 3" party ia ibut Target Markets: Consumer and industrial ackaging, consumer goods, foodservice Value Proposition: * Broad product portfolio ry IPand kn now- oes devel C
Slide 36: Market Driver for Growth: Organic Waste Diversion
Market Driver for Growth: -" _ Organic Waste Diversion NTI J Increased federal and local regulations mandating reduction of, d di i f Oraanic & Fi d Waste ri? I mT gi - | ili il} food suppl 0+ 6-6] RESIDENTIAL FOOD WASTE COLLECTION IN THE U.S. HoevCE TONE SLY |
Slide 37: Vermont Coffee Company: Grounds for Savings
Vermont Coffee Company: a _ Grounds for Savings NTI MONT. COFFEE. COMPANY 4 COFFEE ROASTED FOR FRIENDS® @ composting bl Bag™ compostable can liners: £ 1 w “Right-sized” li v Superior strength p p f hot and 7 lly hable fil the collection bins clean + Natur-Bag ps treamline their and cleaning costs
Slide 38: Richmond International Raceway: A Tale of Two Races
Richmond International Raceway <) ) A Tale of Two Races NTI a, Toyota Care 250 NASCAR XFINITY Series & Toyota Owners 400 NASCAR Sprint Cup Series 3 SUSTAINABLE _/iifi!/EH! TORQUE Club, Dogwood Suites, Press Box and aE GA Media Center 11 of * 1,359 meals donated * 5.4 tons of 1 17 METRIC TONS
Slide 39: Branded Apparel Packaging
_ Branded Apparel Packaging: <P PS Natur-Tec® working closely with Levi Strauss® (India), developed an award-winning line of sustainable packaging for branded apparel a Dice + Asia is the manufacturing hub for all major global Apparel Brands * Natur-Tec® i he branded apparel industry = DOCKERS KUYIC
Slide 40: Contact Us
Contact Us NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION Investor Relations: eer symbet NTIC SESS
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