Noble Roman’s Inc                  Roman s Inc.            OTC BB: NROM            January 20131/17/2013                  ...
Safe Harbor       The statements contained in this presentation concerning the Companys future       revenues, profitabili...
Investor Highlights                                       Sustainable Profitability, Accelerating Growth            • Net ...
Who We Are      Three Revenue Sources for Future Growth            Non-Traditional Franchises   Grocery Take-N-Bake   Stan...
Revenue Sources                Non-Traditional                Non Traditional Franchise                            Take-N-...
Industry       • 2010 U.S. pizza sales: $34.4 billion                   Top 5 U.S. Pizzeria’s by 2010 Sales            – 1...
Market Share       Americans Enjoy Home cooked Pizza                       Home-cooked                        By Type     ...
Non-Traditional Franchises      •     Target locations             –    Bowling centers             –    Military bases   ...
Non-Traditional Franchises      Business Model            Upfront Fee    $6,000-9,000                           $6 000-9 0...
Grocery Take-N-Bake Distribution       •            Take-N-Bake licensing in grocery delis                        – Emphas...
Grocery Take-N-Bake Distribution      Business Model             Annual       $2-2.2K expected per year per each new groce...
Stand-Alone TNB Franchises       • Currently only one national company         competing in this space: Papa Murphy’s®    ...
Stand-Alone TNB Franchises    Business Model             UpfrontFee     $18K upfront fees            Ongoing Fees   10-12%...
Competition      • Papa Murphy’s Take ‘N Bake is market                   Papa Murphy Franchises        leader with $655 m...
Marketing                  Revenue                       R&D                        Outreach                 Expansion    ...
Historical Revenue                   $0.03                                                         Through                ...
Expenses                      $4.3   $4.3   $4.5                                              $3.4                        ...
Historical EBITDA                      $3.32                              $3.01   $3.05                                   ...
Historical Net Income      from Continuing Operations                    g                        $1.68                   ...
Balance Sheet Summary                                                9/30/12 12/31/11   12/31/10 12/31/09  Assets  Cash   ...
Capital Structure                                          9/30/2012            Weighted Average Common Stock             ...
Management            Paul W. Mobley - Chairman of the Board and Chief Executive Officer            1991 – present: Chairm...
Investor Summary            Business model            B i           d l   Sustainable                                S    ...
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MicroCapClub Invitational: Noble Roman's (NROM)

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Over the years I’ve found that restaurant roll out stories can capture more momentum and trade at higher multiples then even tech stocks. Buffalo Wild Wings (BWLD) and Chipotle (CMG) are prime examples of such companies that have captured the attention of Wall Street over the last few years. Noble Roman’s (NROM) is an undiscovered food franchising-licensing company with 35%+ operating margins at an inflection point of growth. The company is targeting the fastest growing segment of the pizza industry, the take-n-bake arena. Since 2010, the company has signed take-n-bake supply agreements with over 1300 grocery stores. In mid-2012, Noble Roman’s entered the standalone take-n-bake market place with their own franchise concept. In a few short months the company has signed agreements for 9 locations, 3 of which have already been opened. Listen to CEO Paul Mobley as he tells the story.

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MicroCapClub Invitational: Noble Roman's (NROM)

  1. 1. Noble Roman’s Inc Roman s Inc. OTC BB: NROM January 20131/17/2013 1
  2. 2. Safe Harbor The 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 forward looking Securities Litigation Reform Act of 1995) relating to the Company that are based on the beliefs of the management of the Company, as well as assumptions and estimates made by and information currently available to the Companys management. The Companys actual results in the future may differ materially from g p y y y those projected in the forward-looking statements due to risks and uncertainties that exist in the Company’s operations and business environment, including, but not limited to, competitive factors and pricing pressures, non-renewal of franchise agreements, shifts in market demand, general economic conditions, changes in purchases of, or d h f demand f th Companys products, licenses or f d for, the C d t li franchises, the hi th success or failure of individual franchisees and licensees, changes in prices or supplies of food ingredients and labor, and the success or failure of its recently developed stand-alone take-n-bake operation. Should one or more of these risks or uncertainties materialize or should underlying assumptions or estimates prove materialize, incorrect, actual results may differ materially from those described herein as “anticipated,” “believed,” “estimated,” “expected” or “intended.” The Company undertakes no obligation to update the information in this presentation for subsequent events events.1/17/2013 2
  3. 3. Investor Highlights Sustainable Profitability, Accelerating Growth • Net income from continuing operations margin • Accelerating growth of 20.6% for 2011 • Management methodically reducing debt • ~40% operating margins Strategically Well-Positioned Licensing-franchising business model Li i f hi i b i d l Positioned in Fastest-Growing Pizza Superior financial performance while alleviating Industry Segment the risk of owning and operating restaurants Take-N-Bake (TNB) is the growth segment of the p a dust y pizza industry Diversified Platform for Growth Leveraging Take-N-Bake TNB Grocery Distribution y Stand-alone TNB franchises • Distribution in 1350 grocery stores and growing • First unit opened October 29, 2012 • 14 grocery distributors • Second unit opened December 3, 2012 • Third opened January 14, 2013 • Six additional units are currently under development y p1/17/2013 3
  4. 4. Who We Are Three Revenue Sources for Future Growth Non-Traditional Franchises Grocery Take-N-Bake Stand-Alone Take-N-Bake1/17/2013 4
  5. 5. Revenue Sources Non-Traditional Non Traditional Franchise Take-N-Bake: Take N Bake: Grocery 2010 2011 YTD 2011 YTD 2012 2010 2011 YTD 2011 YTD 2012 Revenue 4.4 4.0 3.1 3.2 Revenue 0.463 1.167 0.873 1.045 % of 60 54 57 57 % of 6 16 16 19 Revenue Revenue Growth -21 -10 +3 Growth +1223 +152 +20 Rate Rate Take-N-Bake: Stand-Alone First prototype opened 10/29/12. Second opened 12/3/12. Third opened 1/14/13 Six more in development/construction1/17/2013 5
  6. 6. Industry • 2010 U.S. pizza sales: $34.4 billion Top 5 U.S. Pizzeria’s by 2010 Sales – 1 02% increase from 2009 1.02% • 57% of pizza outlets independently Pizza Hut $5.31 owned and control 48% of total Dominos $3.31 pizza industry sales • Store unit count Papa Johns $2.08 – 65,283 as of spring 2011, down774 units Little Caesars $1.25 from 66,057 in spring 2010 $ in billions • Take-N-Bake is fastest growing Papa Murphys Take-N-Bake $0.66 segment of the industry • TNB can accept food stamps – 47 million people using food stamps All data: October 2011 PMQ Magazine1/17/2013 6
  7. 7. Market Share Americans Enjoy Home cooked Pizza Home-cooked By Type By Company 20% 31% 45% 52% 36% 17% Carry out Delivery Dine-in "Big 4" Independents Other Chains1/17/2013 7
  8. 8. Non-Traditional Franchises • Target locations – Bowling centers – Military bases – Hospitals H i l – Schools – Entertainment centers – Truck stops – Convenience stores C i t Franchise/license 1772 1583 1112 834 12/31/09 12/31/2010 12/31/2011 YTD 9/30/121/17/2013 8
  9. 9. Non-Traditional Franchises Business Model Upfront Fee $6,000-9,000 $6 000-9 000 upfront fees Ongoing 11% ongoing royalties and fees in the aggregate Royalties Annual Total ua o a $20 22K $20-22K expected per year per new franchise in Per Unit total fees to Noble Roman’s1/17/2013 9
  10. 10. Grocery Take-N-Bake Distribution • Take-N-Bake licensing in grocery delis – Emphasis on growth through partnerships with grocery distributors across the country • Grocery Take-N-Bake revenues expected to be approximately $2.2 million by 2013 Grocery Take-N-Bake Revenues $3 $Millions $2 $1 $0 2009 2010 2011 2012 2013 Est. Est.1/17/2013 10
  11. 11. Grocery Take-N-Bake Distribution Business Model Annual $2-2.2K expected per year per each new grocery store Total Per license in total fees to Noble Roman’s Unit U it Distributors by Quarter TNB Grocery Locations 14 by Quarter 12 11 11 1350 10 10 1206 1084 1016 910 778 630 565 292 190 87 931/17/2013 11
  12. 12. Stand-Alone TNB Franchises • Currently only one national company competing in this space: Papa Murphy’s® – Able to accept EBT (food stamp) payments in most locations – 1 in 7 Americans on food stamps • A few smaller, regional players • Represents a growing sales opportunity • Nine signed: – First opened 10/29/12 – Second 12/3/12 – Third 1/14/13 – Six more under development • Five under development • L Low-cost: t – Only $60-90k estimated total investment after landlord allotments – Food cost: 32% of sales – Low labor requirements – Minimal equipment requirement1/17/2013 12
  13. 13. Stand-Alone TNB Franchises Business Model UpfrontFee $18K upfront fees Ongoing Fees 10-12% royalty and fees in the aggregate Annual Total Expected gross revenues of $400-600K per unit per year. Per Unit Results in $48-72K in royalties to Noble Roman’s per location per year1/17/2013 13
  14. 14. Competition • Papa Murphy’s Take ‘N Bake is market Papa Murphy Franchises leader with $655 million in 2010 sales 1283 • 1,202 traditional locations operated for a 1239 full 12 months for year ending 1/1/2012 y g / / 1171 – Average per store net sales: $559,495 • Highest 401 stores averaged $828,296 1119 • Next highest 400 stores averaged $511,241 g g , • Lowest 401 stores averaged $338,829 • “Big 4” unlikely to enter TNB: 1/1/2009 1/1/2010 1/1/2011 1/1/2012 – Formulations not conducive to TNB – Would compete with delivery franchises1/17/2013 14
  15. 15. Marketing Revenue R&D Outreach Expansion Leverage the results of Aggressively communicate the extensive research and Companys competitive Focus on revenue development advantages to its target market expansion through non- of potential franchisees and traditional franchises and licensees licenses1/17/2013 15
  16. 16. Historical Revenue $0.03 Through $0.5 $1.2 $1.6 9 months $1.5 $1.4 $1.1 $0.6 $ in millions $5.0 $5 0 $4.4 $4.0 $3.2 2009 2010 2011 YTD 2012 Non-traditional franchises Full service restaurant Grocery store TNB1/17/2013 16
  17. 17. Expenses $4.3 $4.3 $4.5 $3.4 G&A Depreciation Restaurant Expenses Other Op Expenses $ in millions Sales Commissions Travel Trade Shows Salaries & Wages 2009 2010 2011 YTD through  9/30/20121/17/2013 17
  18. 18. Historical EBITDA $3.32 $3.01 $3.05 $2.30 $ in millions 2009 2010 2011 YTD through  9/30/20121/17/2013 18
  19. 19. Historical Net Income from Continuing Operations g $1.68 $1.51 $1.53 $1.11 $1 11 $ in millions s 2009 2010 2011 YTD through  9/30/20121/17/2013 19
  20. 20. Balance Sheet Summary 9/30/12 12/31/11 12/31/10 12/31/09 Assets Cash 163 233 337 333 Accounts & Notes Receivable - Net 1,212 885 920 1,343 Inventories 424 338 317 239 Other 2,160 1,931 1,882 1,536 Total Current Assets 3,959 3,388 3,456 3,451 Net Property & Equipment 281 308 367 440 Deferred Tax Asset (net of current portion) 8,920 9,613 10,151 10,704 Other Assets 4.454 3,915 , 2,921 , 2,087 , Total Assets 17,614 17,224 16,895 16,682 Liabilities & Stockholders Equity Accounts Payable & A A t P bl Accrued Expenses dE 170 665 654 435 Notes Payable 4,583 4,831 5,356 5,625 Total Stockholders Equity 12,861 11,728 10,885 10,623 Total Liabilities & Stockholders Equity Stockholder s 17,614 17,224 16,895 16,6821/17/2013 20
  21. 21. Capital Structure 9/30/2012 Weighted Average Common Stock 19,506,886 Options 197,438 Convertible Preferred Stock 366,666 Total 20,070,9901/17/2013 21
  22. 22. Management Paul W. Mobley - Chairman of the Board and Chief Executive Officer 1991 – present: Chairman of the Board, CEO, CFO 1974 – present: Director 1981 – 1997: President of the Company 1974 – 1978: VP and COO 1978 – 1981: SVP 1975 – 1987: Significant shareholder and president of a Company that owned and operated 17 Arbys franchise restaurants A. Scott Mobley - Chief Operating Officer and President 1997 – present: President 1992 – present: Director 1993 – present: Secretary 1988 – 1997: VP 1987 – 1988: Director of Marketing Prior to Noble Roman’s, strategic planning analyst with a division of Lithonia Lighting Company Troy Branson - Executive Vice President of Franchising 1997 – present: EVP of Franchising 1992 – 1997: Director of Business Development 1987 – 1992: Owner of Branson-Yoder Marketing Group1/17/2013 22
  23. 23. Investor Summary Business model B i d l Sustainable S i bl Positioned in the P i i di h Successfully S f ll Experienced that delivers profitability; fastest growing defended management solid financial accelerating segment of the lawsuit; team performance growth pizza industry – management while mitigating g g Take ’N Bake can focus on risk growth and profitability1/17/2013 23

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