Northern Technologies International Corporation · NASDAQ:NTIC
Northern Technologies International — Investor Presentation (September 2013)
27 slides from Northern Technologies International's investor presentation, Sep 26, 2013
Slide 1: Making a Difference with Clean Technology
ly os ‘I / with Clean Technology NTI Making a Difference Af “Ha International Corporation NASDAQ;:NTIC JZ, Fall 2013 Northern Technologies
Slide 2: Forward Looking Statements
Forward Looking Statements 1atements contained inthis presentation that are not historical information are forward-locking statements as defined within the Private Securties Litigation Reform. och sterentsinehde, Bat ag not ited to, statements about NTs fate financial performance te future estimated
Slide 3: NTIC Solutions
NTIC Solutions _—" Beneficial Materials Science <a ' Leveraging expertise and a global presence into growth. NatureTec” = © infrastructure * Compostable * Biobased global c vento: ore business r f formulations * Finished goods
Slide 4: Global Sales Presence
Global Sales Presence Introducing new products and technologies worldwide Global Sales Infrastructure 24 joint ventures & 2 subs base sales in fiscal 2012 (jv sales not consolidated with NTIC) R&D Focus *R&D labs multiple countries ea . ji
Slide 5: Estimated Market Potential
Estimated Market Potential Estimated Annual Total Estimated | Percentage of Market Market IC FY 20: Potential Growth Rate jet Sales $520 Million 5-10% 76% $25 Billion 10% 16% $1 Billion >20% 8% The market potenti for Zerust® Oil & G Natur-Tec® comer is nae larger than that for our core Zerust iene T
Slide 6: Zerust: Pioneers in Corrosion Management
: \ Environmentally Beneficial Materials Science (im Zerust’ ae \ Pioneers in Corrosion Management Inventors and First-to-Market Zerust Packagin: Va asti * Proven Safe and Effective for 35+ Years Global Research Labs Protects Valuable Assets Turn-key Solutions 6
Slide 7: Trusted Partners in Corrosion Solutions
Trusted Partners in Corrosion Solutions Revenue Model: Product sales and service contracts Global Market Leaders Distribution: Growth: Direct sales and/or eu ventures and 3" party distribut. Expansion of non-automotive technical support i segments with core Zerust® products and services Military Ele
Slide 8: Zerust Products and Applications
P< M Zerust’ Flange Saver AutoFog VCISachets Outdoor Preservation VCI Film Rust Removal * Focused on sales in North America and abroa : : : esi effectiveness and value for multiple pros x * Growing awareness of the Zerust Oil Storage Tank Bottom Protection brani NACE Awards
Slide 9: Oil Storage Tank Protection
Environmentally Beneficial Materials Science <<" etc.) BUCKEYE sucrose @ Anadarig’ ge x © Tank protection from Zerust has * There are over 1 million oil storage tanks in the US alone
Slide 10: Finding Success in Oil and Gas
Environmentally Beneficial Materials Science < NTI Finding Success in Oil and Gas Revenue Model: | * repeat business Distribution: ° Direct sales and/or via joint moray elel Target Markets: around the world Oil refineries, off-shore production | platforms, tank f tors, oil pipelines, oil i i gas sta
Slide 11: Advanced Bioplastics
NTI, Advanced Bioplastics Meeting the Demand for Compostable and Biobased Plastics | products * Meet or standards . ¥ 1) rFY11 Customized Resins
Slide 12: Natur-Tec Core Strengths
Environmentally Beneficial Materials Science <n Natur-Tec® Core Strengths bere aete easier to manufacture , less performance properties @NatureWe Selected End Users of Natur-Tec
Slide 13: Making Sense in Green Business
Making Sense in Green Business Revenue Model: Sales of finished products and Distribution: Direct sales and/or via j 3" party distributors Target Markets: consumer goods, foodservice Value Proposition: * Broad product portfolio provides one-stop bioplastic solutions. devels lopment of ees engineered
Slide 14: Organic-Waste Diversion Driving Demand
Environmentally Beneficial Materials Science <n Organic-Waste diversion driving growing demand for Natur-Tec® Finished Products Key Market Drivers v ae emission reduction targets ‘ost imbalance for Compost Y¥ Required for Buildings
Slide 15: Expanding Distribution Footprint
Environmentally Beneficial Materials Science ey, Expanding Distribution footprint driving Revenue Growth in the U.S.A. * Over PRODUCTS" ae as (=e) PRODUCTS 6 n= Clean=zZource “THE CLEANING SUPPLY EXPERTS, DPI Specialty Foods A. ‘Customized Marketing and Distribution Sotuons 6
Slide 16: Global Opportunities for Natur-Tec
Environmentally Beneficial Materials Science Ce NTI Global Opportunities for Natur-Tec® my) aii \ | { i WZ from leading Apparel Brands biodegradable shopping bags film applications a aa a Branded Garments in Asia Western Europe Bags in Italy
Slide 17: Strong R&D Driving Innovative New Products
»\ Envi lly Beneficial Materials Science Se, Strong RED driving Innovative New Products the premier Biomaterials Research Institute fe MICHIGAN STATE UNIVERSITY National Science Foundation HERE DISCOVERIES BEGIN U.S. DEPARTMENT OF DEFENSE Small Business Technology Transfer Phase II the development b
Slide 18: Corporate and Financial Overview
NTI Corporate and Financial Overview Northern Technologies International Corporation NASDAQ;:NTIC
Slide 19: FY 2012 & 2013 Financial Results
NTI FY 2012 & 2013 —R nancial Results ightly down due to European macro issues C Fi Worldwide Sales ('000) FY.2008 FY2004 FY2005 FY 2006 FY.2007 FY2008 ~FY2009 FY2010 FY2011 FY 2012 FY2013 * Worldwide sales represent net sales of NT INTIC's joint ventures are nt included 28 n NASDAQ: NTIC
Slide 20: NTIC Financial Results - EPS
NTIC Financial Results - EPS Earnings Per Share - Long Track Record of Profitability 17% CAGR. 9 FY2010 FY2011 FY 2012 FY 2013 00 + FY 2003 FY2004 FY2005 FY 2006 FY 2007 FY 2008 F NASDAQ: NTIC
Slide 21: Strong Balance Sheet
Strong Balance Sheet NTIC Balance Sheet NASDAQ: NTIC - May 31, August 31, * INVESTMENTS IN (900000) 2013 2012 JOINT VENTURES are mostly comprised of CURRENT ASSETS. S$ i859 $14.1 working capital at our 5.1 43 ’s, long tert ES 23.3 215 sets. Our German OTHER ASSETS. 22 20 specifically has over €11 a
Slide 22: NTIC Income Statement
NTIC Income Statement : Aug 31, Aug 31, (One 08) 2012 2011 NET * JV’s are equity EE a EXCLUDING. JOINT YenTunes $20.2 $16.6 lid: j " NET SALES i JOIN’ 26 28 a 22.8 19.5 JOINT VENTURE COST OF GOODS SOLD 14.5 12.8 our GROSS PROFIT 83 6.8 © 65-75% EQUITY IN INCOME OF JOINT VENTURES 55 5.5 86 75% of EQU
Slide 23: Investment Opportunity
Investment Opportunity NEW MARKETS FOR CORE PRODUCTS. Advanced Bio-Plastics io-based pla: lastic: industrial and consumer applications Enhanced Corrosion Protection Extension of ZERUST® brand and VCI ene to oil, gas and chemical storage applications NEW COMPLEMENTARY PRODUCTS FOR EXISTING CUSTOMERS
Slide 24: Contact Us
_ Contact Us NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION Investor Relations: 4201 Woodland Road, P.O. Box 69 Circle Pines, MN 55014 USA +1 (763) 225-6600 | www.ntic.com mwolsfeld@ntic.com Ticker Symbol: NTIC (NASDAQ) NASDAQ: NTIC 24
Slide 25: Joint Venture Economics
Joint Venture Econo * 24 international joint ventures * Equity method accounting on GAAP financial statements notes to aa financial state! ect expenses to suppo! are relatively fixed, ne oerenting incremental JV sales NASDAQ: NTIC - Initial Investment Local Partner Joint Venture JN Financial Model M
Slide 26: Management & Technologists
Management & Technologists MANAGEMENT Mr. G. Patrick Lyne! Mr. G, Patrick Lynch, an employee of NTIC since 1995, has been President since July 2005 and Chief Executive Officer since lanuary 2006 and was appointed a director of NTICin February 200. From July 2005 to January 2006, Mr. Lynch served as
Slide 27: Management & Technologists
Management & Technologists PRIMARY TECHNOLOGISTS (continued) Dr. Ramani Narayan, Pl Raman! Narayan D has be ea eto of WTC sine Novem 2008 IE ical Engineering ia laterials Science at Michigal Sp atents edited three books and one coger Govier inte aes of bio. materials. His ri sustainable, biobased pr
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