Sono-tek Corporation · NASDAQ:SOTK
Sono-tek — Investor Presentation (September 2024)
32 slides from Sono-tek's investor presentation, September 2024
Slide 1: Precision coating systems for applying uniform thin film coatings
ULTRASONIC SPRAY TECHNOLOGY FY 2024 : SOTK Precision coating systems for applying uniform thin film coatings WideTrack Large Area High Volume Solar Manufacturing Coating System Updated September 2024
Slide 2: Safe Harbor Statement
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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: Addressable Markets
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 6: A Broad Range of Applications
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 7: Targeting Key Disruptive Markets
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 8: Target Market: Alternative/Clean Energy
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 9: Addressable Markets Defined by Application
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 10: Growth Strategy
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 11: Full System Solutions
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 12: Scalable Manufacturing Equipment
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 13: Application Engineering Expertise
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 14: International Legislative Action & Corporate Spending
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 15: Core Ultrasonic Nozzle Technology Is at the Heart of Every Machine
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 16: Ultrasonic Spray Advantages
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 17: Product Platforms
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 18: R&D Through High Volume Production Lines
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION R&D THROUGH HIGH VOLUME PRODUCTION LINES A small sampling of Sono-Tek’s specialized coating systems : SOTK www.sono-tek.com 18
Slide 19: New Product Development
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 20: Financial Highlights FY2024
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 21: Early Phase New Revenue Streams Gaining Momentum
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 22: Average Selling Price (ASP) Progression
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 23: Record Sales in FY2024
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 24: Strong FY2025 Outlook
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 25: General Coating Equipment Market
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 26: Ultrasonic Coating Equipment Global Competition
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION ULTRASONIC COATING EQUIPMENT ULTRASONIC SPRAY ~$41M/yr GLOBAL COMPETITION We have the leading market position in our industry Approximately 30 companies have attempted to copy SOTK Sono-Tek's technology, but none have gained signi
Slide 27: Ultrasonic Thin Film Coating vs Other Coating Technologies
COMPANY MARKETS STRATEGY TECHNOLOGY PRODUCTS FINANCIALS COMPETITION 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 28: Management
MANAGEMENT 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 & CHIEF CHAIRMAN OPERATIONS APPLICATION TECHNOLOGIST ENGINE
Slide 29: Company History
COMPANY HISTORY TIMELINE OF SIGNIFICANT MILESTONES 90+ EMPLOYEES 6 WORLDWIDE LOCATED IN 2024 FACTORY EXPANSION ON CAMPUS DEVELOPMENT LABS HUDSON VALLEY, NY 2023 PLC PLATFORMS ADDED TO EXPAND ADDRESSABLE MARKET 2022 UPLISTED TO NASDAQ $19.7M SALES 39 INTERNATIONAL IN FY2024 2020 EXPANSION OF MANUFACT
Slide 30: Geography
GEOGRAPHY 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 30
Slide 31: Summary
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’ su
Slide 32: Making an impact on our world
Making an impact on our world [email protected] Dr. Christopher Coccio, Executive Chairman [email protected] Steve Harshbarger, CEO & President [email protected] Investor Relations: PCG Advisory, Kirin Smith [email protected]