Northern Technologies International (NTIC) Investor presentation summary

Strategic growth and profitability

• Achieved record Q2 FY26 sales, with ZERUST Oil & Gas net sales up 72.1% to $2.7 million and industrial net sales up 11.2% to $14.0 million.

• Natur-Tec net sales rose 8.1% to $5.4 million, and NTIC China net sales increased 18.5% to $4.4 million.

• Operating expenses as a percentage of sales improved by 300 basis points year-over-year, now at 43.2%.

• Debt stands at $14.3 million, with plans to use free cash flow for reduction as profitability expands.

• Cash and equivalents total $6.5 million, excluding $15.4 million at joint ventures.

Business model and global reach

• Operates in over 65 countries through 15 joint ventures and 11 subsidiaries, enabling global supply and service.

• Joint ventures provide rapid expansion with minimal capital, contributing ~11% of total JV sales as operating income.

• Asset-light model with limited working capital requirements and inventory primarily in finished goods.

• JV sales are not consolidated but disclosed in financial notes; equity in income is reported on GAAP statements.

Product and market diversification

• ZERUST Industrial, Oil & Gas, and Natur-Tec are core product lines, with Oil & Gas and Natur-Tec achieving CAGRs of 14.5% and 17.7% from FY15 to FY25.

• FY25 sales mix: 65% ZERUST Industrial, 26% Natur-Tec, 9% Oil & Gas.

• ZERUST Oil & Gas secured a $13M offshore contract in Brazil, supporting international growth.

• Natur-Tec targets compostable packaging, with strong growth in North America and India.