Sono-Tek Corporation · NASDAQ:SOTK
Sono-Tek — Summer Investor Summit 2020
27 slides from Sono-Tek's conference presentation, June 2020
Slide 1: Summer Investor Summit June 2020
OTCQX: Summer Investor Summit June 2020 www.sono‐tek.com 1 OTCQX: SOTK
Slide 2: Safe Harbor Statement
Safe Harbor Statement OTCQX: We discuss expectations regarding our future performance, such as our business outlook, in our annual and quarterly reports, press releases, and other written and oral statements. These “forward‐looking statements” are based on currently available competitive, financial
Slide 3: Overview
Overview OTCQX: FYE ‐ Feb Sono‐Tek Corporation is the world leader in the design and manufacture of ultrasonic coating systems for depositing precise, thin film coatings to protect or strengthen surfaces, or apply functional layers (such as catalyst or electrical function) onto parts and components.
Slide 4: Ultrasonic Coating Technology
Ultrasonic Coating Technology OTCQX: Ultrasonic nozzle systems use high frequency ultrasonic vibrations to atomize liquids into uniform micron‐sized drops that can be applied to surfaces at low velocity to provide highly uniform microscopic layers of material over a wide variety of surfaces. ATOMIZI
Slide 5: Ultrasonic Coating Advantages
Ultrasonic Coating Advantages OTCQX: Advantages becoming broadly recognized More cost‐effective, simpler than alternative coating methods • Dramatic reductions in overspray with reduced emissions • Large cost savings in raw materials, liquid and energy usage • Improved process repeatability, high ef
Slide 6: Why Sono-Tek?
Why Sono‐Tek? OTCQX: Technology for industry advancements that create a better world www.sono‐tek.com 6
Slide 7: Experienced Management Team
Experienced Management Team OTCQX: Chris Coccio, PhD • Sono‐Tek Board since 1998 and CEO since 2001 Strong Group of Next Chairman and Chief • General Electric career involving global Generation Leaders Executive Officer P&L responsibilities for businesses up to $100M and 500 people Robb Engle • BSME
Slide 8: Independent Board of Directors
Independent Board of Directors OTCQX: Board Member Role Affiliations Dr. Chris Coccio Chairman CEO Steve Harshbarger Director President Eric Haskell, CPA Independent Director Former Public Company CFO Dr. Donald Mowbray Independent Director* Former Senior Executive of GE Dr. Joseph Riemer Independen
Slide 9: Corporate Timeline
Corporate Timeline OTCQX: www.sono‐tek.com 9
Slide 10: Mission Statement
Mission Statement OTCQX: OUR MISSION IS TO PROVIDE • Precision thin film coating equipment solutions • Outstanding application expertise across multiple industries for each customer’s needs • Worldwide application and service support • Next gen ultrasonic coating technology to become a standard for
Slide 11: Strong Revenue and Gross Margin
Strong Revenue and Gross Margin OTCQX: FYE ‐ Feb Net Income Excellent Revenues $1.1M In FY2020 A Seven‐fold Year Over Year Increase 48% 48% Gross Margin 47% 45% 45% Industry Leading Gross Margins www.sono‐tek.com 11
Slide 12: Strong Balance Sheet
Strong Balance Sheet OTCQX: FYE ‐ Feb Cash and Equity Rising, Debt Declining www.sono‐tek.com 12
Slide 13: Strategic Shift Starting in 2013
Strategic Shift Starting in 2013 OTCQX: ● Heavily invested in applications engineering resources and laboratories to provide complete solutions to customers ● Shifted focus to provide higher value complete machine solutions and larger subsystems to OEMs ● Created strategic partners for requirements
Slide 14: Diversified Markets, Geography and Products
Diversified Markets, Geography and Products OTCQX: FY 2020 Sales $15.3 million www.sono‐tek.com 14
Slide 15: Diversified Markets: Electronics & Microelectronics
Diversified Markets Electronics & Microelectronics OTCQX: OUTLOOK FOR Driven by the never‐ending appetite for new, smaller and more complex GROWTH electronics devices, phones, touch screens, etc. Applications • Printed circuit boards • Semiconductors: micron‐thin photo‐resist layers onto complex waf
Slide 16: Diversified Markets: Medical
Diversified Markets Medical OTCQX: OUTLOOK FOR Rapid deployment of next gen diagnostic coatings for quick analysis and identification GROWTH of blood and genomics. Applications • Implanted medical devices: stents, balloons and diabetic monitoring devices • Blood collection tubes • Diagnostic devices
Slide 17: Diversified Markets: Clean Energy Applications
Diversified Markets Clean Energy Applications OTCQX: OUTLOOK FOR Growing demand for clean energy fuel cell technology, CO2 reduction and other emerging GROWTH environmentally conscious technologies driving growth for multi‐axis coating systems. Applications • Catalyst coating for fuel cell technolog
Slide 18: Diversified Markets: Industrial
Diversified Markets Industrial OTCQX: OUTLOOK FOR Demand for expensive high purity glass is opening opportunities for increased GROWTH coating protection from staining during storage. Applications • Flat (“float”) glass used for windows in buildings and vehicles • Aerospace/aircraft: specialty compo
Slide 19: Diversified Markets: Emerging R&D
Diversified Markets Emerging R&D OTCQX: OUTLOOK FOR Broadbased basket of next gen applications in developing markets with growth potential GROWTH Applications ● Wide range of new applications in early R&D phase, often supported with government funding. Differentiators ● Ultrasonic coating technology
Slide 20: Successful Strategies for Continuing Growth
Successful Strategies for Continuing Growth OTCQX: Application Provide customers with unique application expertise Expertise and knowledge • Continually developing in‐house applications engineering, sales and marketing teams knowledge • Provide proof of concept testing at global process development
Slide 21: Expanding Addressable Markets
Expanding Addressable Markets OTCQX: Introduction of New Products to Enhance Capabilities • Robotic coating platforms – Combines 6‐axis robotic capabilities with ultrasonic dispensing expertise – First order shipped (Feb 2020), valued at $1.6 million, is largest order in Sono‐Tek’s history • Highly
Slide 22: Capturing Emerging Markets
Capturing Emerging Markets OTCQX: Introduction of New Products & Applications Knowledge • Electrolyzers for fuel cells, CO2 reduction, hydrogen generation • EMI Shielding • Clear Laser Welding ‒ For medical devices • Electrostatics Sono‐Tek systems enable functional coatings that are often not possi
Slide 23: Coating Technologies Market Share
Coating Technologies Market Share OTCQX: GENERAL COATING EQUIPMENT MARKET ULTRASONIC COATING EQUIPMENT ~$5B/yr ‐ Hundreds of Competitors ~$32M/yr ‐ ~20 Competitors ▪ Ultrasonic Coating Other Coating SOTK Technologies include: ~50% ▪CVD ▪ALD ▪Jetting ▪Roller SOTK is focused on expanding ▪Slot Die the
Slide 24: Competitive Differentiators
Competitive Differentiators OTCQX: • Strong global brand and reputation, known for high quality and reliability • Highly specialized capabilities of applications team – Experienced team of application engineers • Proprietary know‐how of manufacturing and engineering design process • 8 Laboratory tes
Slide 25: COVID-19 Impacts
COVID‐19 Impacts OTCQX: • Refocused some front‐end efforts to applications and markets that may see increased demand during virus outbreak • Only several orders have been put on hold or canceled, working to offset impact with growth strategies • Increased some inventory levels due to less predictabi
Slide 26: Key Takeaways
Key Takeaways OTCQX: • Growth Strategies working for introduction of new products, new markets, and market sub‐segments within existing markets • Strong brand and reputation: known for high quality and consistency • Continued strengthening of application expertise, process development laboratories,
Slide 27: Questions?
Thank You OTCQX: Leadership through innovation since 1975 Questions? Contact us for more information: Steve Harshbarger, President harsh@sono‐tek.com Dr. Chris Coccio, CEO clcoccio@sono‐tek.com (845)795‐2020 www.sono‐tek.com www.sono‐tek.com 27