Natives of Kodiak2014 Annual Meeting

“Investing in Our Future”

• Overview– Welcome and Introduction– Board of Directors and Organizational Structure– NOK Shareholder Permanent Fund Trust Update – Brief FY 2013 Financial Review– Parent Company Initiatives in Kodiak – Subsidiary Operations/Business Development – Strategic Plan Progress Report – Question and Answer Session

Natives of Kodiak, Inc. Board of Directors

Updated: 6/26/2014

- Seated from left -Laurence Anderson, SecretaryMargaret L. Roberts, Director

Jeannine (“JJ”) Marsh, Director

- Standing from left -Carla Schauff, Treasurer

Donene Tweten, ChairpersonAlexis (“Sonny”) Chichenoff, Vice Chairperson

Anthony (“Tony”) Cange, DirectorLeonard (“Pat”) Heitman, Director

David Anderson, Director

NOK / KANACommercial

Condominium, Inc.

50% NOK50% KANA

Koncor Forest Products Company,

J.V.

35.04% VXM64.96% ONC

Kodiak Support Services, J.V. (KSS)

51% Inuit Services49% KOMAN, Inc.

KOMAN Diversified Services, LLC (KDS)

100% KH, LLC8(a) Corporation

Natives of Kodiak, Inc.

Alaska Native Urban Corporation

Condo Management

NOK Shareholder Permanent Fund Trust

100% NOK Shareholders

Trust Management

KOMAN Holdings, LLC. (KH)

100% NOK

Holding Company

KOMAN, Inc.

100% NOK

Construction, Support Services

VXM, Inc.

100% NOK

Timber Holding

Construction, Apparel, Environ. , Security

USCG BOSS ISC Kodiak

Forest Management

KDS Propper JV of Puerto Rico

51% KDS49% Propper

Military Uniforms Specialty Apparel

NOK KOMAN

INVESTMENTS

NOK and Subsidiaries – Functional Organizational Chart

KOMAN Diversified

Services, LLC

CFO Michael Kelly

A/P, A/R and Payroll

Kathy Giordano

Accounting, HR & IT

Audrey Duncan-Fearnside

SCIF Projects

John Williams

NOK President / CEOMichael Kelly

Updated: 9/18/2014

LANDS

Office Mgr.

Irene Lind Reception

ist Gloria Bishop

Apparel Mfg.Mike

Zavosky

Construction

Jack Hively

NOK Vice PresidentDavid Anderson

KSS Contract

David Anderson

Environmental

Bruce Beck

KOMAN Holdings

Michael Kelly

Fusion Centers

Eddie Ortiz

KOMAN Government Solutions,

LLC (New 8a Company)

NOK SHAREHOLDER PERMANENT FUND

TRUST UPDATE

• Results of recent initiative to amend Trust Agreement provisions

• Discussion of Trust Fund fractional shares

• Shareholder survey on preference between receiving one annual lump-sum or quarterly distributions

• Inflation-Proofing Requirements and Related Actions

FY 2013 FINANCIAL REVIEW

2009 2010 2011 2012 2013-$1,000,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$1,543,811 $1,325,334 $1,327,000 $1,179,000

$3,559,000 $645,884

$2,384,559

$(395,000)

$1,187,000

$1,903,000

NOK AND SHAREHOLDERS PERMANENT FUND TRUST COMBINED COMPREHENSIVE INCOME

HISTORY

TRUSTNOK

Summary of Revenue and Investment Income

Natives of Kodiak, Inc : $596,823 VXM, Inc : $3,590,417 KOMAN, Inc: $219,580 KOMAN Holdings: $13,910,321 Less: Eliminations: ($116,736)

Consolidated Total: $18,200,405

Summary of Net Income(Excluding Unrealized Gains]

Natives of Kodiak, Inc : $2,645,805 VXM, Inc : $3,273,800 KOMAN, Inc: $917,331 KOMAN Holdings: ($967,015) Less: Eliminations: ($3,224,116)

Total: $2,645,805

Summary of Net Comprehensive Income

Natives of Kodiak, Inc : $2,645,805 VXM, Inc : $3,273,800 KOMAN, Inc: $917,331 KOMAN Holdings: ($967,015) Less: Eliminations: ($3,224,116)

Total Operating Income: $2,645,805

Add: Unrealized Gains: 912,990

Comprehensive Income: $3,558,795

UPDATE ON PARENT COMPANY

INITIATIVES ON KODIAK ISLAND

• Purchase and Marketing of Alaska Russian Orthodox Church Art Collection:

– Background:

• On May 21, 2013, the individual responsible for creating this very unique art collection, Roger Pike, gave a very informative and heartfelt presentation to the NOK Board of Directors.

• Roger shared his personal story of how he became dedicated to creating this project and seeing it through to a successful completion.

• The collection will ultimately be composed of all 106 Russian Orthodox Churches in the State of Alaska and include four more religious icon paintings of important Russian Orthodox saints.

– NOK Art Collection Background (cont.):

• Roger explained that only 80 of the 110 paintings had been completed at this time and the 30 remaining paintings were scheduled to be completed within the next six to eight months .

• After viewing a significant number of the professional-quality original oil paintings, the NOK Board of Directors readily recognized and appreciated their deep cultural, historical and religious value.

• The Board also believed there is significant commercial value in acquiring the collection.

• Based on the above considerations, the Board authorized the purchase of the entire collection for $242,000.

– NOK Art Collection Background (cont.):

• The Board of Directors also authorized the following items to purchased to support the proper framing, safe storage and marketing of the collection.

– Frames ($300 each): $33,000 (Actual cost was less than half of this amount.)

– Legal Fees: $5,000– Laser Printer: $5,500– Graphics Software: $2,500– Printing Supplies (Ink, Canvas, Paper): $7,500– Digital Camera Proofs: $6,000 – Initial Marketing and Advertising Costs: $15,000

– Total Preliminary Estimated Costs: $316,500

– NOK Art Collection Background (cont.):

• Types of Items/Products That Can Be Created and Sold Using these Russian Orthodox Church Painting Images

– Canvas Prints – Digital Paper Prints– Calendars– Post Cards– Coffee mugs and glasses – Computer Mouse Pads– Jigsaw Puzzles– Vinyl Placemats– Christmas Cards– Christmas Ornaments

– NOK Art Collection Background (cont.):

• NOK retained Solstice Advertising, LLC in Anchorage to develop the name, logo and branding for the art collection.

• After being provided with several different potential choices, the NOK Board of Directors selected “Kupol Collection”

– “Kupol” is the Russian word for dome and ties together Russian culture and the iconic dome of Russian Orthodox churches. Adding the word “collection” to the name reflects the names of classic art collections and makes it clear that this is a group of works.

– The Board-approved logo for the “Kupol Collection” appears on the next slide.

• A sample of the Kupol Collection is provided below and on the next slide:

– Kupol Collection “Next Steps”

• David Anderson and Mike Kelly will continue to work closely with Solstice Advertising, LLC personnel to develop the Kupol Collection website, e-commerce payment processes and inventory management procedures.

• Methods to increase awareness of the collection and to generate demand for personal prints and other resale items

– Establish a small art gallery and resale kiosk in the NOK Corporate Offices

– Advertise in various marketing publications

– Advertise on the NOK Website

– Explore an art loan program with museums and Alaska Native organizations

Are there any shareholder questions or comments on the Natives of Kodiak, Inc. “Kupol Collection”?

• Current Real Estate Development Activities on Kodiak

– Ongoing sustained efforts to get NOK properly compensated for the contaminated property it received under ANCSA

• Meetings with Alaska Congressional Delegation and other elected officials

– Recent trip by David Anderson to Washington, D.C. (September 15-18, 2014)

– Meetings between NOK Directors and incumbents/candidates seeking office

• Active Participation in Alaska Native Village CEO Association (ANVCA) – Creation of one-page, high impact document to bring attention to NOK’s

land contamination issue

• Current Kodiak Real Estate Development Activities

– Close cooperation and interaction with Kodiak Island Borough (KIB) and City of Kodiak officials to fund a study of a fresh water line to NOK property located south of the City of Kodiak

• This item is currently on the list of approved Capital Improvement Projects, but is awaiting availability of funding

NOK Property on Kodiak Island Initial Master Development Plan

•

Aerial View of Tract “A”

•

Conceptual Drawing of Potential Large Retail Store

•

• Current Real Estate Development Activities (cont.) – Recent Unanimous Consent Resolution approved by the NOK

Board to take the following immediate actions to pursue development of Tract “A” in order to avoid a one-year delay in developing this property for the financial benefit of our shareholders

• Begin required Environmental and Wetlands Assessment processes before winter ($20,000)

• Determine if a satisfactory source of potable water is available on the property ($21,200)

• Perform comprehensive assessment of Kodiak commercial market/opportunities ($15,000)

• Miscellaneous Items and Contingencies: $3,800

• Total Expenditures Authorized: $60,000

UPDATE ON CURRENT SUBSIDIARY

OPERATIONS

Offices Kodiak, AK Anchorage, AK Severn, MD Chantilly, VA Raleigh, NC

Operations Alaska Washington, D.C Continental US (DHS) Puerto Rico

PR

Current and Previous Customers

KOMAN, Inc.

• Background Information:

– KOMAN, Inc. reached the 9-year maximum time limit allowed by the SBA and exited the 8(a) Program in 2011

– Previously focused on Construction, Apparel Manufacturing and Support Services

• Current focus is on Base Operations Support Services (Kodiak U.S. Coast Guard Contract)

• Company will remain in operation at least until the end of the KSS Joint Venture

Contract Started on October 1, 2006Joint Venture with the Bering Straits Native Corporation Subsidiary (Inuit Services) 10-Year ContractContract Value: $13,750,000 AnnuallyInfrastructure Management and Support Services to Kodiak Coast Guard Station110 Full-Time JobsHighly Visible Contract – Largest USCG Base in the WorldCoast Guard remains very pleased with KSS Management Staff and OperationsAs indicated on the next slide, profitability on this contract has significantly improved in recent years

Kodiak Support Services – JV

Update on KOMAN, Inc.

• Kodiak U.S. Coast Guard Base Operations Support Services (BOSS) contract has become significantly more profitable over the past four years

– Active involvement by NOK Board of Directors and Executive Team continues to contribute to improved safety, operations and profitability

• Annual Net Income to KOMAN, Inc. from this contract follows:– 2014: $601,760 [Year-to-Date: Through July 31, 2014]– 2013: $1,083,149 – 2012: $64,822 (Affected by Wage Determination Increase in Fourth

Quarter) – 2011: $344,442– 2010: $4,980– 2009: ($51,947)– 2008: ($8,754)– 2007: ($34,258)– 2006: ($116,205)

KOMAN Diversified Services, LLC

• 100% Owned by Natives of Kodiak, Inc.

• Business Originally Formed in September 2003

• Certified by the SBA as an 8(a) Company in March 2008

• Current focus is on the following business lines:• Construction Management• Apparel Manufacturing• Federal Alarm Systems Maintenance and Monitoring Services (DHS

Fusion Centers)• Environmental Services• Pursuing other profitable business activities

KOMAN Diversified Services, LLC

• Construction Management

• The following conditions continued to significantly and negatively impact our Construction Management business line during FY 2013 and FY 2014

• U.S. National Debt of $16,738,492,645,235 ($16.7 Trillion) as of 09/18/2013• U.S. National Debt of $17,764,283,324,567 ($17.7 Trillion) as of 09/17/2014• Recurring annual Federal Budget Deficits of roughly $1 Billion• Federal Agency budget reductions • Justification and Approval (J&A) requirements for sole-source awards over

$20 million

• Result: Fewer construction contract awards, smaller dollar values and more competition with lower margins.

KOMAN Diversified Services, LLC

• Construction Management

• During the last few months, we have seen an increase in the number of Task Orders being awarded to KDS from:

• Alaska National Guard • U.S. Fish and Wildlife Service

• We will continue to aggressively pursue construction projects that we can perform safely, professionally and profitably.

• Background Information on Apparel Manufacturing:

• Three years ago, KDS and Propper International, Inc. created a new Joint Venture to manufacture military uniforms and related items (KOMAN-Propper, LLC )

• This initial Joint Venture has reached the end of allowable life under SBA rules and has been replaced by a follow-on Joint Venture called KOMAN–Propper Government Apparel (KPGA)

• Fortunately, K-P, LLC did finally receive several long-awaited apparel manufacturing subcontracts (as shown on the next slide).

• KPGA has already been awarded two new apparel contracts

– Contract details are shown on several subsequent slides.

• K-P, LLC: • Military budget shortfalls and manpower reductions had a

highly negative affect on the military apparel business line during 2013.

• However, K-P, LLC did recently receive two long-delayed subcontract awards. Both of these subcontracts were bid far in advance of K-P LLC’s “sunset”, but were not awarded until after K-P LLC had “graduated” from its SBA Mentor-Protégé 8(a) eligibility.

– Bronze Star subcontract is valued at $3,900,000(+) and scheduled to be finished by June 30, 2015. It is for the manufacture of Navy Working Uniform (NWU) Blouses.

– The M&M subcontract is also for Navy Working Uniform Blouses, but has a total contract value of $10 million to $12 million and a term of 3 years.

• Navy Working Uniform (NWU) Trouser Award:• Approved by the SBA and awarded to KPGA in June 2014

• Total Contract Value of $15,135,452 (based on the maximum amount that the Federal Government is authorized to purchase).

– However, we believe the Government is likely to buy $12 million to $13 million.

• Due to material lead times and production “ramp-up” times, we anticipate this contract will generate no more than $40,000 in profits during 2014.

• Admin Recovery and Profit forecast at 5.58%, or approximately $697,500 net return to KDS over the 3-year life of the contract.

• Jacket, Soft-Shell, Generation III, Level 5• KPGA was awarded this contract in August of 2014 • Total Contract Value is approximately $5.4 million

– We expect the Government to buy most or all of maximum authorized quantity.

• Again, due to material lead times and production “ramp-up” requirements, we anticipate that no more than $30,000 in profits will be generated for KDS in Calendar Year 2014.

• G & A Cost Recovery and Profit proposed on this contract is 6%; roughly $324,000 in total return to KDS over the 3-year contract life.

• Summary:

• We are finally beginning to see notable improvement in our military apparel business line.

• Background Information on DHS Fusion Centers: – DHS awarded KDS a one-year 8(a) sole source contract last

September to provide the following support to their Fusion Centers.

• Site Survey Assessments• Digital Subscriber Lines• Alarm System Maintenance and Monitoring• Security Equipment Support

• Fusion Centers are joint Federal/State/Local/Tribal intelligence- sharing facilities in each of the 50 states and four US territories.

• The contract is valued at slightly over $500,000 per year.• It is our understanding that DHS intends to award a follow-

on contract to KDS for Federal Fiscal Year 2015.

Background Information on Environmental Services:

• Approved by the NOK Board of Directors in July 2013.

• Bruce Beck hired as KDS Regional Manager for U.S. East Coast.

• We have been aggressively developing important strategic relationships and Teaming Agreements with large, reputable and capable companies:

• STANTEC (formerly USKH).• Engineering Consulting Services (ECS)• Power Secure

• We are also utilizing Bruce’s Environmental Science background to expedite the completion of the wetlands assessment and permitting process for our Tract “A” property, as well as to limit the amount of fees to be paid to STANTEC.

• We are also actively pursuing various opportunities in the Energy Services sector, to include:

• Privatization of Government utility systems (water, sewer, electricity, steam heating, etc.)

• Power Secure is currently waiting on a decision by the Department of Energy (DOE) for their firm to be listed as an “approved” Energy Services Company or ESCO.

• Renewable Energy/Retrofit Projects.

• Strategic partnering in the federal-sector to pursue joint programs/projects in renewable energy and Energy Efficiency Improvements (EEI).

• Summary:

• We have continued to demonstrate our commitment to market our capabilities as aggressively as possible to improve our overall growth and profitability.

• We are working diligently on a daily basis to strengthen our relationships with key business partners, as well as to grow new strategic business partnerships.

• We have identified and are actively pursuing new business lines to generate long-term revenue streams and profits for our shareholders, including:

• Selectively bidding on profitable and risk-acceptable construction projects• Expanding into Multi-Year Alarm System Monitoring and Maintenance Services• Expanding our capabilities within the U.S. Intelligence Community • Growing our new Environmental Services and Energy Services business lines

NATIVES OF KODIAK, INC. STRATEGIC PLAN PROGRESS REPORT

Update on List of Current Action Items Resulting from Recent NOK Follow-on Strategic Planning

RetreatHeld in Kodiak on June 27-28, 2014

• Summary of Strategic Planning Follow-up Actions:• A comprehensive Excel spreadsheet has been created to

identify, monitor and follow-up on open items. Each “Action Item” is:

– Based on actions identified and agreed to at the Strategic Planning Meeting– Assigned a Unique Item Tracking Number– Fully Described, to Include Desired Outcome, where appropriate – Assigned a Due Date– Responsible Person(s) are Assigned– An Updated Status is Provided at Each Regular NOK Board Meeting.

• This formalized follow-up process will help ensure accountability, responsiveness and effectiveness in meeting our responsibilities to all NOK shareholders and stakeholders.

• Sample of Action Items completed and in progress since NOK Strategic Planning Session was held in June of this year:

• All 110 Kupol Collection paintings have been professionally stretched and framed, safely transported to Kodiak, stored in a secure area, and insured.

– Logo for the collection has been selected and website development is in progress.

• Development of Tract “A” property is being aggressively pursued– Contract has been issued to STANTEC/USKH for environmental and marketing

studies.– Contract has been issued to drill a water well on the property and it is in

progress.– Environmental permitting process has started.

• Sample of Action Items completed and in progress since NOK Strategic Planning Session was held in June of this year (continued) :

• Due diligence on potential business acquisitions is in progress.

• NOK Shareholder Picnic was scheduled and held in Kodiak on July 19, 2014.

• Review of existing business lines and investment portfolios is underway.

• Draft Real Estate investment policy has been developed by Tony Cange.

Conclusion

Although the current U.S. business climate remains extremely challenging, we will continue to carefully exercise our stewardship responsibilities over our shareholders’ wealth and pursue only responsible growth and related profitability for your long-term benefit.

Questions?