Northern Technologies International Corporation · NASDAQ:NTIC
Northern Technologies International — Investor Presentation (October 2008)
30 slides from Northern Technologies International's investor presentation, Oct 31, 2008
Slide 1: Investor Presentation November 2008
INVESTOR PRESENTATION NOVEMBER 2008 Environmentally Beneficial Materials Science. NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
Slide 2: Forward Looking Statements
October 08 2 Forward Looking Statements Statements contained in this presentation that are not historical information are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Such statements can be identified by words such as “expect,” “anticipate,” “est
Slide 3: Introduction to NTIC
October 08 3 Environmentally-beneficial, materials-science-based products and technologies company –Rust inhibiting plastic packaging and storage systems for industrial supply chains –Corrosion protection for oil & gas storage and transport –Advanced bio-degradable and bio-based plastics –Plastic wa
Slide 4: Environmental Innovation
October 08 4 Rust Inhibiting Plastic Packaging Vapor Corrosion Inhibiting (VCI) technology replaces heavy greases, oils and hazardous solvents Advanced Bio-Plastics Bio-degradable and/or bio-based plastics for commercial packaging, industrial and consumer applications Enhanced Corrosion Protection E
Slide 5: Global distribution through direct sales and joint ventures
October 08 5 • North American sales made through direct sales people, distributors and VARs • International sales made through 29 joint ventures – NTIC provides product, technology and technical support – JV partners provide sales and customer support personnel, access to local markets and knowledge
Slide 6: Environmentally Beneficial Materials Science
Environmentally Beneficial Materials Science. >>>
Slide 7: Vapor Corrosion Inhibiting (VCI) Packaging
October 08 7 • Dominant player in the automotive industry – Used by every major manufacturer to protect parts inventory in shipment and storage • Global reach – Only VCI company to provide corrosion protection management systems for customers in every major industrialized country • Customer benefits
Slide 8: Business Model Summary
October 08 8 Business Model Summary Revenue Model: Product sales and contract services Joint Ventures: Technical and support fees and distributions Distribution: Direct Sales and Mfg Reps Target Markets: Automotive, industrial and military parts Shipment/storage protection Value Proposition: Consist
Slide 9: Growth Strategy
October 08 9 • Introduce new products and expand sales and distribution • Leverage reputation as corrosion management experts to introduce process related corrosion management services – Process design, implementation and monitoring – No rust warranty • Further penetrate non-automotive verticals wit
Slide 10: Enhanced Corrosion Protection
October 08 10 • Industry characterized by highly corrosive processes with significant environmental risks from corrosion failures • Operational units being currently tested in Brazil, Malaysia, Thailand and the UAE Enhanced Corrosion Protection Patented solutions that extend the ZERUST brand and VCI
Slide 11: Oil and gas corrosion growth strategy
October 08 11 • Focus on multiple client opportunities in the Americas, the Middle East and SE Asia • Build on NTIC’s R&D capabilities to boost credibility: – Additional R&D being conducted, with clients around the world, to bring new products and solutions to the market – Unique laboratory faciliti
Slide 12: Environmentally Beneficial Materials Science
Environmentally Beneficial Materials Science. >>>
Slide 13: Bio-polymer processing and compatibilizers
October 08 13 Base Resins Are Weak and Difficult to Process Finished Products Are Stronger, Easier to Produce and Cheaper Natural Polymer Organic/Inorganic Materials Proprietary Compatibilizers & Polymer Modifiers Proprietary “ReX” Bio-Polymers
Slide 14: Broad Product Portfolio
October 08 14 • Natur-Tec™ products: – Allow customers to reduce their carbon footprint – Provide superior performance at competitive prices – Meet industry standard for biodegradability ASTM D6400 – Made from renewable content as per ASTM D6866 • Uniquely broad product portfolio – Flexible Film – t
Slide 15: Business Model Summary
October 08 15 Business Model Summary Revenue Model: Finished products and resin sales Distribution: Direct sales to end-users and distributors Target Markets: Consumer and industrial packaging Consumer goods Food services Competitive Environment Competitors: Novamount – High brand awareness, well fu
Slide 16: Bio-plastics Market Opportunity
October 08 16 Estimated $1.9 billion market for bio-plastic resins projected to grow to $30 billion by 2015 Key drivers of market growth • Increased environmental awareness at consumer and corporate level • Increased petroleum prices reducing the cost disparity vs. traditional plastics • Improved te
Slide 17: Growth Strategy
October 08 17 • Sales and Marketing – Translate initial sales into long-term commitments from opinion-leading customers and distribution partners – Leverage broad product portfolio, including joint development projects, to provide “One-Stop Bioplastics Packaging Solutions” to global customers – Incr
Slide 18: Environmentally Beneficial Materials Science
Environmentally Beneficial Materials Science. >>>
Slide 19: Plastic Waste to Fuel
October 08 19 • Polymer Energy LLC, a joint venture with T-Technology in which NTIC has a 62.5% ownership interest and which has exclusive rights to sell the technology outside of Europe • Commercially proven: 10 units operating in Europe deployed by T-Technology • Each module can process 2,100 tons
Slide 20: Business Model Summary
October 08 20 Business Model Summary Revenue Model: Upfront machine sales and installation Ongoing catalyst sales and technical support Distribution: Direct sales through Polymer Energy joint venture Target Markets: Developing country manufacturers and waste management entities United States is not
Slide 21: Market Opportunity
October 08 21 High Crude Oil Prices Increasing Demand for Fuel/Energy Plastic Waste High oil prices drive interest in alternative energy sources and waste to energy projects Increased demand for petroleum from fast growing, emerging economies, such as China and India Use of disposable plastic packag
Slide 22: Growth Strategy
October 08 22 Positive market response with customer inquiries from around the world First units currently being tested in India and Thailand NTIC’s JV network may provide market reach and local connections NTIC’s manufacturing base in Chennai, India provides seamless service to global customers by:
Slide 23: Corporate Overview
Environmentally Beneficial Materials Science. Corporate Overview
Slide 24: Corporate Summary
October 08 24 Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009 (est) Corporate Summary Research & Development Customer Validation Product Rollout
Slide 25: JV Financial Model
October 08 25 Local Partner NTIC Capital Investment Capital Investment Joint Venture JV Sales Management Fees Royalty & Service Fees COGS & Expenses JV Net Income Equity in Income Equity in Income Cash Dividend Retained Earnings NTIC provides: • Base technology • Consulting and training • Technical
Slide 26: Financial Overview
Environmentally Beneficial Materials Science. Financial Overview
Slide 27: NTIC Financial Results: Earnings Per Share
October 08 27 * FY 2007 EPS is a non-GAAP financial measure and is adjusted downward to subtract the $724,000 gain on sale of building. See NTIC’s corporate website for a reconciliation to NTIC’s GAAP EPS. ** FY 2008 results are expected to be released in November 2008 NTIC Financial Results 39% CAG
Slide 28: NTIC Financial Results: Worldwide Sales
October 08 28 Worldwide sales represent the sales of NTIC consolidated with all sales through NTIC’s joint ventures, of which NTIC owns an ownership interest of between 25% and 50%. The functional currency of each international corporate joint venture is the applicable local currency. The translatio
Slide 29: Growth Opportunity
October 08 29 Advanced Bio- Plastics Bio-degradable and/or bio-based plastics for commercial packaging, industrial and consumer applications Enhanced Corrosion Protection Extension of ZERUST brand and VCI technology to oil, gas and chemical storage applications Plastic Waste to Fuel Conversion Plast
Slide 30: Contact Information
October 08 30 NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION Matthew Wolsfeld, CFO 4201 Woodland Road Circle Pines, MN 55014 mwolsfeld@ntic.com (763) 225-6637 www.ntic.com Ticker Symbol: NTIC (NASDAQ Global Market) Contact Information
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