Slide 1: Ultrasonic Spray Technology FY 2024
ULTRASONIC SPRAY TECHNOLOGY FY 2024 : SOTK Precision coating systems for applying uniform thin film coatings WideTrack Large Area High Volume Solar Manufacturing Coating System
Slide 2: Safe Harbor Statement
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncer
Slide 3: Overview
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS OVERVIEW Cardiac Stent Coating Glass Lens Coating Semiconductor Fuel Cell Catalyst Photoresist Coating Coated PEM Sono-Tek Corporation is a global leader in the design and manufacture of ultrasonic coating systems that are shaping i
Slide 4: Inventors of Environmentally Friendly Ultrasonic Spray Nozzle Technology
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS INVENTORS OF ENVIRONMENTALLY FRIENDLY ULTRASONIC SPRAY NOZZLE TECHNOLOGY An extensive portfolio of R&D through high volume coating systems Sono-Tek Corporation (Nasdaq: SOTK) is the leading worldwide developer and manufacturer of ul
Slide 5: Executive & Senior Management
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS EXECUTIVE & SENIOR MANAGEMENT Experienced, dynamic committed leadership team Dr. Chris Coccio Steve Harshbarger Stephen Bagley, CPA Maria Kuha Chris Cichetti Randy Copeman EXECUTIVE CEO & PRESIDENT CFO VP, MANUFACTURING VP, SALES &
Slide 6: Worldwide Distribution Network and FY2024 Sales by Geography
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS Extensive worldwide distribution network of factory-trained professionals and development laboratories for testing and process development leads to strong customer partnerships. FY2024 SALES BY GEOGRAPHY : SOTK www.sono-tek.com 6
Slide 7: Timeline of Significant Milestones
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS TIMELINE OF SIGNIFICANT MILESTONES 90+ EMPLOYEES 6 WORLDWIDE LOCATED IN 2024 FACTORY EXPANSION ON CAMPUS DEVELOPMENT LABS HUDSON VALLEY, NY 2023 PROTECT ALTAIR- PLC PLATFORMS ADDED TO EXPAND ADDRESSABLE MARKET 2022 UPLISTED TO NASDA
Slide 8: Core Ultrasonic Nozzle Technology Is at the Heart of Every Machine
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS UNIQUE PROPRIETARY TECHNOLOGY Every Sono-Tek coating system CORE ULTRASONIC NOZZLE A software driven, electro-mechanical uses our proprietary ultrasonic TECHNOLOGY IS AT THE droplet generator, perfect for high-tech spray nozzle tech
Slide 9: Ultrasonic Spray Advantages
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS ULTRASONIC SPRAY More cost-effective and ADVANTAGES simpler than alternative coating methods: ▪ Dramatic reductions in overspray with This example of a Perovskite solar reduced emissions cell coating application shows ▪ Large cost s
Slide 10: Ultrasonic Thin Film Coating vs Other Coating Technologies
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS ULTRASONIC THIN FILM COATING VS OTHER COATING TECHNOLOGIES DEPOSITION PRESSURE DIP COATING JETTING SCREEN SPUTTERING CHEMICAL VAPOR ULTRASONIC METHOD SPRAY/ AIR PRINTING/BLADE DEPOSITION (CVD) SPRAY ATOMIZATION HOW IT WORKS Liquid i
Slide 11: General Coating Equipment Market
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS GENERAL COATING EQUIPMENT MARKET ULTRASONIC SPRAY ~$8B/yr Hundreds of Competitors MARKET SHARE = Ultrasonic Coating Other Coating The general coating equipment market has Technologies enormous growth potential at $8B per year. Sono-
Slide 12: Ultrasonic Coating Equipment Global Competition
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS ULTRASONIC COATING EQUIPMENT ULTRASONIC SPRAY ~$41M/yr ~25 Competitors GLOBAL COMPETITION We have the leading market position in our industry Over the past 5 years, US and Europe-based competitors SOTK are weakening and shrinking
Slide 13: Product Platforms
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS Our coating systems include 4 platform types, each with a line of unique machine offerings. Machines incorporate industry specific hardware options as well as unique product handling and customized options that are used in many dive
Slide 14: R&D Through High Volume Production Lines
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS R&D THROUGH HIGH VOLUME PRODUCTION LINES A small sampling of Sono-Tek’s specialized coating systems : SOTK www.sono-tek.com 14
Slide 15: New Product Development
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS NEW PRODUCT DEVELOPMENT We are continuously expanding our product lines to help us reach broader markets. Product development is led by: ▪ In-house engineering capabilities, including mechanical, electrical, control software and app
Slide 16: Addressable Markets
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS ADDRESSABLE MARKETS SUB-CATEGORIES OF FY2024 SALES BY MARKET Market Strategy: Sono-Tek MAJOR MARKETS: ■ FUEL CELLS grows our business by targeting ■ SOLAR CELLS key disruptive coating ■ HYDROGEN ELECTROLYZERS ■ SEMICONDUCTORS applic
Slide 17: A Broad Range of Applications
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS A BROAD RANGE OF APPLICATIONS Sono-Tek’s coating technology excels in spray applications that require very thin (nano to micron thickness), repeatable, uniform liquid film coatings, from very small areas to continuous wide widths. I
Slide 18: Targeting Key Disruptive Markets
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS TARGETING KEY DISRUPTIVE MARKETS By entering disruptive markets in their infancy Sono-Tek gains a foothold in establishing ultrasonic Global Trends Driving Demand for Thin Film Coating Solutions coating as an industry standard. Thes
Slide 19: Target Market: Alternative/Clean Energy
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS TARGET MARKET: ALTERNATIVE/ CLEAN ENERGY Abundant research papers Sono-Tek equipment is detail process advancements entrenched in academia and using ultrasonic spray. R&D institutions. All of these applications use functional surfac
Slide 20: Addressable Markets Defined by Application
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS ADDRESSABLE MARKETS DEFINED BY APPLICATION ESTABLISHED EMERGING TRANSITIONING MARKETS (10+ YEARS) MARKETS MARKETS ▪ Medical Devices ▪ Microelectronics ▪ Fuel Cells/Electrolyzers Implantable stents, blood collection tubes Small footp
Slide 21: Growth Strategy
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS There are 4 main aspects to Sono-Tek’s business strategy for growth. By leveraging these strengths and unique capabilities, GROWTH STRATEGY Sono-Tek is positioned to continue gaining significant market share in the ultrasonic coatin
Slide 22: Full System Solutions
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS OUR STRATEGY IS WORKING TO ACHIEVE: FULL SYSTEM ▪ Recognition as an innovative technology company SOLUTIONS with powerful proprietary knowledge Increased Customer Value with Rapidly Expanding Average Selling Prices (ASPs) Custom eng
Slide 23: Scalable Manufacturing Equipment
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS R&D SCALABLE MANUFACTURING EQUIPMENT Proven Scaling from R&D to Production Volume Sono-Tek coating equipment is easily scaled to higher volume PILOT SCALE processes once R&D process development is fine tuned. Following their R&D pha
Slide 24: Application Engineering Expertise
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS APPLICATION MILTON, NY US DEVELOPMENT LAB ENGINEERING EXPERTISE Focusing on Customers’ Unique Needs Ensures Success Enhanced customer support with process development ensures that our equipment performs exceedingly well, and nurture
Slide 25: International Legislative Action & Corporate Spending
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS INTERNATIONAL LEGISLATIVE ACTION & Sono-Tek is well positioned in markets that are being heavily funded CORPORATE SPENDING through government and legislation initiatives* that are expected to contribute to the Company’s overall grow
Slide 26: Financial Highlights
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS FINANCIAL + HIGHLIGHTS FY2024 $19.7M SALES We reported record breaking revenue in FY2024 and record MARKET DATA 6.20.2024 31% GROWTH IN FY2024 breaking backlog for the year ahead Nasdaq SOTK Stock Price $4.11 52 Week Range $3.62-$6.
Slide 27: Early Phase New Revenue Streams Gaining Momentum
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS Services Revenue Increasing EARLY PHASE NEW ▪ Service-related contracts that support our large platform and highest ASP REVENUE STREAMS production lines are growing in importance. GAINING MOMENTUM ▪ Our in-house development lab gene
Slide 28: Average Selling Price (ASP) Progression
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS AVERAGE SELLING STRATEGIC FOCUS TOWARD HIGHER ASPS IS SHOWING SUCCESS AVERAGE SELLING PRICE PRICE (ASP) (ASP) PROGRESSION PROGRESSION Increasing % of Sales with High ASPs From FY2017 to FY2024: ▪ $5M increase in sales over $150k val
Slide 29: Record Sales in FY2024
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS RECORD SALES IN FY2024 Consistent Profitable Growth REVENUE (IN MILLIONS) * $19.70 20 18 $17.10 $15.30 $14.80 $15.10 16 14 $11.00 $11.60 12 10 8 Gross Margins Consistently Above 45% 6 4 ▪ $11.84M Cash & Cash Equivalents 2 ▪ Zero deb
Slide 30: Strong FY2025 Outlook
COMPANY TECHNOLOGY COMPETITION PRODUCTS MARKETS STRATEGY FINANCIALS AVERAGE SELLING BACKLOG (IN MILLIONS) PRICE (ASP) STRONG FY2025 OUTLOOK Record Backlog PROGRESSION ▪ Project additional orders from key target markets. ▪ High activity levels in development labs. ▪ Backlog and revenue can be lumpy d
Slide 31: Summary
Advancing Ramping Up Consistently Record Sales & Generational Clean Energy Profitable with Backlog Technology Production Growing Revenue in FY2024 Developments Poised for Success - Our business is taking off along with that of our customers ▪ We are attached at the hip with our customers’ success as
Slide 32: Making an Impact on Our World
Making an impact on our world info@sono-tek.com Dr. Christopher Coccio, Executive Chairman CLCoccio@Sono-Tek.com Steve Harshbarger, CEO & President Harsh@Sono-Tek.com Investor Relations: PCG Advisory, Kirin Smith ksmith@pcgadvisory.com