6.23.2015 Shareholder Presentation

7/25/2019 6.23.2015 Shareholder Presentation

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June 23, 2015


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e w

exam ne

t e

story,

current

status

an

anticipated developments in the company's

.

We will look at: The Business Model Developments in Primary Business Venues

Anticipated Strategic Direction Changes

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Noble Romans Pizza in 1972 (Nameplate Brand)

Originated as a Single Pizzeria in Bloomington, IN

Quality Products

Quality You can Taste!

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Traditional Pizza Live Yeast or FullyPrepared

High Protein Grain Content

Develops Great Yeast Flavor & Aroma Tender Inside, Thinly Crisp Outer Shell Americas Favorite Crust Style

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DeepDish

Sicilian

Pizza Live Yeast Only

Very Active Dough

Rises Up Thick in a Pan Coated with Olive Oil Rectangular Shape

Sauce on Top Caramelized Cheese Edge

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SuperThin Pizza Fully Prepared

(Live Yeast in R&D)

About 3/32 Thin Bakes Crispy & Firm Accentuates Toppings

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Gluten Free

Crust Thin Crust

Uses Rice Flour & Potato Starch

Made in Certified Facility Topped Edge to Edge Designed for Lifestyle Segment

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Breadsticks &

Spicy

Cheese

Dip Same Dough Formulation as Traditional Pizza

Spicy Cheese Dip Addictive! Also Marinara or Buttery Garlic

Prepared Simply Cornmeal Dusted Bottom Light Misting with Salt on Top

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Additional Menu

Items Breakfast LineUp

Chicken Wings BoneIn and Boneless

Chicken Wrap Baked Subs Lasagna Cinnamon Round Pastry

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NonTraditional

Foodservice Providing Pizza & Subs When and Where People

an o onsume oo

Not Confined

to

a Typical

Stand

Alone

Facility

Often Inside Another Business Facility

In General: Puts the Consumer in Control of the Ea in a i n

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enue oug y orre ates to t e erm eta Channel of Distribution

Segmentation Allows Improved

Segmentation Allows for Service & Product Tar etin

Venue Peaks & Troughs can Vary by Venue Due to Either Economic or Industry Specific Factors

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on ra t ona ost rem se oo serv ce Convenience Stores

ow ng enters

Entertainment Facilities

Component Program for Grocery Deli

Stand Alone You Bake or We Bake Facilities Dedicated Foodservice Featurin Take nBake with OnPremise Baking Services

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A Look

at

the

Underlying

Premise

o

Each

Venue Along with the Latest Developments

with Sample Photographs & Materials

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Serves as a Revenue and/or Services Center

Attractive Way to Increase Profits and/or Provide Value Add Services ore evenue ources

Menu items for breakfast, lunch, snacks & dinner

Excellent Cost Structure Flexible Structure

Franchise with royalty or License with mark up

Preopening guidance, customization, onsite set up Backed By Franchise Services

R&D Distribution Bu in Power Marketin

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Ashland, OR

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Rensellaer & Monticello, IN

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Consumer Rationale

or

Take

n

Bake Fresh Made Consumer watches their pizza being

made

Fresh baked Consumer experiences the pizza at ts pea qua ty, stra g t rom t e oven Control Consumer decides the moment they

w s o en oy e p zza Convenience Purchasing the product and

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A Lot

o

Time

and

R&D

has

Been

Spent

in

the

Last 9 Months Continuing to Evolve the Format,

Including a Number of Test Pilots that Have

Moved to Various Stages of Implementation.

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Tested During

2014

Now

Adopted

by

a

Significant Number of Units Data Suggests that a Significant Percentage

of Customers are Utilizing this Service Are Now Designing Ways to More Fully Integrate this Service into Operating Theme

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Be an Test Marketed Move from Full Pre ared

Crusts to LiveYeast Doughballs in Late 2014 Allows Hand Craftin of Dou h in Front of Customers for Traditional Pizzas

Fits Better with the Overall Theme of Fresh Made, Fresh Baked Which is Important in the Take nBake Segment

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Started at the Same Time as the Hand Crafted

Traditional Pizzas Uses the Same Doughballs

Further adds to the Artisan Feel and the

Fresh Theme that is Important to Take nBake

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Crafted and Hand Rolled Theme to the Communit Saturday & Sunday Event

Free Pizza to the 1st 100 People to attend 50% off Pizza Sale All Day Both Days Series of Special Events

Costume Contest HandTossing Contest

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HandCrafted from Doughballs

ere at a a ue r ce

Jumbo Combo

Options Wit So t Drin

With Hand Rolled

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1 New Pizza Each Month for 12 Months Customers Have a Road Map Passport

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Most programs are thaw and serve Quality issues, especially with tomato sauce Essentially frozen pizza that has been thawed

Noble Romans program is component assembly Pizzas are made from Noble Romans ingredients on site Made Fresh Here Daily ad theme

OnSite training and set up for each licensee

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Port Washington, WI

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Woodbine, GA


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Odessa, TX

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Medford, WI

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Creates Initial Excitement & Customer Awareness Creates Initial Product Movement Promoted Through Bag Stuffers with Bounce Backs

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Using Leasing Company Shipped Direct to Licensee Noble Romans as the

Middleman to Coordinate and Expedite Graphics ship with marketing kit; installed on

opening set

up

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General Economic Factors Sluggish First Quarter GDP Forecasts Better for Remainder 2015

Commodities More Contained in General vs 2014

Retail Gas Margins Only Slightly Less Attractive than Last Year

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Last Year Last 12 Months Year to Date

Beef +18.0% +2.4% 14.1%. . .

Wheat 5.1% 35.7% 13.4%

Crude Oil +11.6%

40.9% +31.7%

Eggs +50% est

39Source: www.indexmundi.com on June 14, 2015


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urrent arg n

per Gallon

ear verage

Price per GallonLast Year $.16 $3.44This Year $.15 $2.36

Retail Gas Volumes Down Slightly 2015 vs 2014 Retail Gas Volumes Down 7.9% from High in 2005 Retail Gas Volumes about Equal to 1998 Volumes Gas Volume Per Capita Down 21.7% from High in 1989; Largest Drop Since 2008

40Source: NACS Daily on June 19, 2015.


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$2.00 2 04

$1.80 1 65

1 74 1 70

$1.60 1 48

$1.40

. Last Year This Year 2015 Low 2015 High 10 Yr Avg

41Source: www.cheesereporter.com on June 19, 2015


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Cost of 1 " Pe eroni Pizza

$3.65 $3.70

$3.50

$3.55 $3.60

$3.40 $3.45

$3.25 $3.30 $3.35

At 10 Yr Avg At $2.04/lb At $1.70/lb At $1.48/lb

42Traditional Venue Using IndyBased Distributed Costs; Assumes Use of FullyPrepared Crust.

Last Year Current This Year Low


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Maintain 3 Venue Approach with Re inements Intensify Operational Contact with Franchisees & Licensees

Set Capability

for

Accelerated

Ramp

Up

in

Revenue Growth

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Re inement o the Stand Alone You Bake, We Bake Venue

Fuller Integration of Baking Service

Data shows

significant

percentages

of

consumers

opting for baking service where offered

Should allow for significant regional opportunities

w t

esta s e

ran

name an

expectat ons RollOut of Other Test Items Such as Hand

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Geographic Service to Franchisees and

Relationship model

Grocery Venue

Goal of expanding average relationship and driving additional er unit revenues on established units

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Signi icant Expansion o Franchise & License Sales Capacity

Add sales force near/mid term expansion

Examine broker

representation

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Category Growth Estimate

Royalties & Fees from Host Premise Venue 4% to 6%

Royalties & Fees from Grocery Venue 70% to 90%

Royalties & Fees from Stand Alone Venue 17% to 25%

Total 2015 Revenue Growth Estimate Approx. 20%

Up $1.4m to $2.0m

Total $9.3m to $9.9m

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$5,600

perat ng xpenses + nterest

(in Thousands)

$5,000

$5,200 $5,400

$4,400 $4,600 $4,800

$3,800 $4,000 $4,200

, 2011 2012 2013 2014 2015 est

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Balance Rate Blended RateJune 30, 2012

Bank Loan $ 4,895,833 4.25%Preferred Stock 825,000 12.0%

N o t e: P r

Total June 30, 2012 $ 5,720,833 5.37%June 30, 2013

Bank Loan $ 3,645,833 4.20%

f er r e d S t o c k r e d e

Preferred Stock 825,000 12.0%

Total June 30, 2013 $ 4,470,833 5.64%June 30, 2014

p t i on ef f e c t i v e O

Bank Loans $ 3,243,333 4.57%Total June 30, 2014 $ 3,243,333 4.57%

June 2 201

t o b er 3 1 ,2 01 3

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Bank Loans $2,552,082 4.57%

Total June 23, 2015 $2,552,082 4.57%


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' , ,financial resources, market demand and product & venue development are forward lookingstatements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating tothe company that are based on the beliefs of the management of the company, as well as assumptionsand estimates made by and information currently available to the company's management. Thecom an 's actual results in the future ma differ materiall from those ro ected in the forward looking statements due to risks and uncertainties that exist in the companys operations and businessenvironment, including, but not limited to, market acceptance of current or future products, venuesand brands, competitive factors and pricing pressures, non renewal of franchise agreements, shifts inmarket demand, general economic conditions and other factors including, but not limited to, changesin demand for the company's products, franchises or licenses, the success or failure of individualranc sees an censees, an c anges n pr ces or supp es o oo ngre en s an a or as we . naddition, the company has no previous experience selling its products through retail grocery channelsor stand alone take nbake locations and there can be no assurance that grocers will continue to stockthe companys pizzas or that customers will continue to buy them. Should one or more of these risks oruncertainties materialize, or should underlying assumptions or estimates prove incorrect, actual results

, , ,intended. The company undertakes no obligations to update the information in this presentation forsubsequent events.

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6.23.2015 Shareholder Presentation

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