Noble Roman’s, Inc. 1 BUSINESS REVIEW AS PRESENTED AT THE ANNUAL SHAREHOLDER’S MEETING JUNE 22, 2011 Contains 49 Slides
Brief Review of Business Model 2 A Quick Review ofCompany Brands and Target Markets
Brand Overview 3 Noble Roman’s Pizza Typically the “Anchor” BrandTuscano’s Subs Created to Expand Sales Opportunity
Primary Business Focus 4Non-Traditional Foodservice Locations Locations where there is usually an underlying host organization Foodservice is usually ancillary to the host’s primary function Food customers are largely (but not exclusively) “captured” from the existing base of traffic Represent the vast majority of current units As differentiated from a “traditional” location where the brand(s) stand alone in a self-contained facility
Multiple Venue Strategy 5A venue is similar to a retail channel of distributionEach venue represents a target market forprospecting franchisees and licenseesMultiple venues allows for shifting sales efforts basedon market conditions Micro-economic variables such as strategic shifts within a venue Macro—economic variables impacting the entire economy
Examples of Non-Traditional Venues 6Bowling & Entertainment CentersConvenience StoresUniversitiesHospitalsMilitary BasesParks & Attractions
Grocery Unit Growth 8At last Year’s Shareholder Meeting: 134 Licensing Agreements SignedAt this Year’s Shareholder Meeting: 675 Licensing Agreements Signed (as of 6/19/2011)
Factors Underlying Take-N-Bake Program 9 Brief Digression into Conditions Leading Up to Program Development
2010 – 2011 Operating Environment 10Unique Nature of Recession & Aftermath Limited Access to Traditional Financing Bank Lending Equipment Leasing Small Business Financing Commodity Price Pressures Petroleum Agricultural
Crude Oil Prices 11$140.00$120.00$100.00$80.00 Brent Sea$60.00 West Texas$40.00$20.00 $- Dec-08 Current
Corn Prices 12$8.00$7.00$6.00$5.00$4.00$3.00$2.00$1.00 $- Dec-09 Current
Block Cheddar Prices 13$2.50$2.00$1.50$1.00$0.50 $- Dec-08 Current
The Bottom Line 14Decision Makers Are ExercisingExtreme Caution!
What Kind of Program Fits This Market? 15Minimal Cost of EntryGreat Sales PotentialHigh Profit MarginsMinimal Legal HassleSimple to Do
Noble Roman’s Take-n-Bake Program 16High Quality Restaurant PizzaOnly Requires $200 in Equipment & SmallwaresApproximately 50% Margins at SRP of $5.99-$6.99Simple, On-Site Training from RepsFree Marketing PackageOnly Obligated NOT to Misuse Our Ingredients &Products
Targeting Operators & Distributors 21Individual Operators Buy Through Our ExistingDistribution SystemGroceries Are Largely Supplied Through FocusedGrocery Distribution companies
Stocking Through Grocery Distributors 22Makes Our Distribution Easier and More FlexibleGives Program Instant Credibility with OperatorsAllows Us Access to Customer DatabasesPermits Us to Present at Distributor Food Shows
Carton-to-Shelf Retail Items 28Marginally Increase Sales in Our Deli Displays Increases Size of Our Display Area Sale of Retail Items Larger Display Area Sells More Pizza Some Opportunity to Place Retail Items ElsewhereOther Potential Sales Opportunities Specialty Food Distributors
New Specialty Pizzas 43Increase Our Deli Spaces FurtherPremium Pricing Ability = Higher Grocer MarginsAdds to Quality Image of Our ProgramPromoting the Program Will . . . Excite Existing Licensees Open the Door to New Prospects
Some Final Observations 45Will Now Touch Briefly on: Status of Other Venues Upcoming Challenges Significant Opportunity
Other Non-Traditional Venues 46Continue to Pursue All Other Active Venues asOpportunities Present ThemselvesRevamped C-Store Program Offers All the Benefits atSubstantially Reduced InvestmentMilitary Base Opportunities are Out There Must be selective based on current deployments Take a long time to move to opening due to red tapeAttractions/Parks/Entertainment – Some OperatorsStarting to Find Investment Dollars Again
Challenges Ahead Remain the Same 47Fragile state of the EconomyRising Commodity Prices Implementing Creative Strategies Using freight trains to move ingredients Tweaking specifications and procedures
Current List of Active Prospects is Long! 48Recent Trade Show Appearances Have ProducedSignificant Active InterestRecent Solicitations for C-Stores Has Started toGenerate Additional InterestRecent Solicitations for Specialty Distributors ofRetail Products Are Active GOAL: TO MOVE LEADS TO CONSUMATION!
Noble Roman’s, Inc. 49 End of PresentationThe statements contained in this presentation concerning the companys future revenues, profitability, financial resources,market demand and product development are forward-looking statements (as such term is defined in the Private SecuritiesLitigation Reform Act of 1995) relating to the company that are based on the beliefs of the management of the company, aswell as assumptions and estimates made by and information currently available to the companys management. Thecompanys actual results in the future may differ materially from those projected in the forward-looking statements due torisks and uncertainties that exist in the company’s operations and business environment, including, but not limited to, marketacceptance of recently introduced products, competitive factors and pricing pressures, the current litigation with certainformer traditional franchisees, non-renewal of franchise agreements, shifts in market demand, general economic conditionsand other factors including, but not limited to, changes in demand for the companys products, franchises or licenses, thesuccess or failure of individual franchisees and licensees, and changes in prices or supplies of food ingredients and labor aswell. In addition, the company has no previous experience selling its products through retail channels and there can be noassurance that grocers will stock them or that customers will buy them. Should one or more of these risks or uncertaintiesmaterialize, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from thosedescribed herein as anticipated, believed, estimated, expected or intended. The company undertakes no obligations to updatethe information in this presentation for subsequent events.