AnnualShareholdersMeeting

AnnualShareholder sMeeting
June23,2015

Wewillexaminethehistory,currentstatusand
W ill
i h hi

d
anticipateddevelopmentsinthecompany's
businessstrategy.
businessstrategy
Wewilllookat:
TheBusinessModel
h
d l
DevelopmentsinPrimaryBusinessVenues
ExternalMacroFactors
AnticipatedStrategicDirectionChanges
Movinginto2016
2

TwoBrands
NobleRomansPizzain1972(NameplateBrand)
Tuscano
TuscanosSubsin1999(SupportingRole)
sSubsin1999(SupportingRole)

OriginatedasaSinglePizzeriainBloomington,IN
FocusedonDevelopment&MarketingofHigh
QualityProducts
TheBetterPizzaPeople
TheBetterPizzaPeople
QualityYoucanTaste!

TraditionalPizza
LiveYeastorFullyPrepared
HighProteinGrainContent
DevelopsGreatYeastFlavor&Aroma
TenderInside,ThinlyCrispOuterShell
AmericasFavoriteCrustStyle
y

DeepDishSicilianPizza
LiveYeastOnly
VeryActiveDough
RisesUpThickinaPan
CoatedwithOliveOil
RectangularShape
g
p
SauceonTop
CaramelizedCheeseEdge

SuperThinPizza
FullyPrepared
(LiveYeastinR&D)
About3/32Thin
BakesCrispy&Firm
AccentuatesToppings
pp g

GlutenFreeCrust
ThinCrust
UsesRiceFlour&PotatoStarch
MadeinCertifiedFacility
ToppedEdgetoEdge
DesignedforLifestyleSegment
g
y
g

Breadsticks&SpicyCheeseDip
SameDoughFormulationasTraditionalPizza
SpicyCheeseDipAddictive!
AlsoMarinaraorButteryGarlic
PreparedSimply
CornmealDustedBottom
LightMistingwithSaltonTop

AdditionalMenuItems
BreakfastLineUp
ChickenWings
BoneInandBoneless
ChickenWrap
BakedSubs
Lasagna
CinnamonRoundPastry
9

NonTraditionalFoodservice
d
l
d
ProvidingPizza&SubsWhenandWherePeople
W tt C
WanttoConsumeFood
F d
NotConfinedtoaTypicalStandAloneFacility
NotConfinedtoFully PreparedorCookedFood
NotConfinedtoFullyPreparedorCookedFood
OftenInsideAnotherBusinessFacility
OftenSoldSeparatefromorWithoutBaking
InGeneral:PutstheConsumerinControlofthe
EatingOccasion
10

VenueRoughlyCorrelatestotheTermRetail
V
R
hl C
l
h T
R il
ChannelofDistribution
AWayofSegmentingMarketOpportunities
SegmentationAllowsImproved
Franchise/LicenseSalesTargeting
SegmentationAllowsforService&Product
g
g
Targeting
VenuePeaks&TroughscanVarybyVenue
DuetoEitherEconomicorIndustrySpecific

Factors
11

NonTraditional(HostPremise)Foodservice
N T di i
l(H P
i )F d
i
ConvenienceStores
BowlingCenters
B li C
EntertainmentFacilities

GroceryStoreTake n BakeDeliPizza
GroceryStoreTakenBakeDeliPizza
ComponentProgramforGroceryDeli

Departments

StandAloneYouBakeorWeBakeFacilities
DedicatedFoodserviceFeaturingTakenBake
g

withOnPremiseBakingServices
12

ALookattheUnderlyingPremiseofEach
f
VenueAlongwiththeLatestDevelopments
withSamplePhotographs&Materials
h
l h
h
l

13

NobleRomansAdvantages
ServesasaRevenueand/orServicesCenter
AttractiveWaytoIncreaseProfitsand/orProvideValueAddServices
MoreRevenueSources
Menuitemsforbreakfast,lunch,snacks&dinner
ExcellentCostStructure
Lowinitialinvestment&goodongoingfoodcosts
Lowinitialinvestment&goodon goingfoodcosts
FlexibleStructure
FranchisewithroyaltyorLicensewithmarkup
PersonalizedSupport
Preopeningguidance,customization,onsitesetup
BackedByFranchiseServices
R&D,Distribution,BuyingPower,Marketing
,
, y g
,
g

14

15

Ashland,OR

16

Rensellaer &Monticello,IN

17

ConsumerRationaleforTakenBake
f
FreshMade Consumerwatchestheirpizzabeing

made
Freshbaked Consumerexperiencesthepizzaat
i
itspeakquality,straightfromtheoven
k
li
i h f
h
Control Consumerdecidesthemomentthey
wishtoenjoythepizza
i ht j th i
Convenience Purchasingtheproductand
enjoyingtheproductcanbeseparatedintime
18

ALotofTimeandR&DhasBeenSpentinthe
f
Last9MonthsContinuingtoEvolvetheFormat,
IncludingaNumberofTestPilotsthatHave
l d
b
f
l
h
MovedtoVariousStagesofImplementation.

19

TestedDuring2014 NowAdoptedbya
SignificantNumberofUnits
DataSuggeststhataSignificantPercentage
h
f
ofCustomersareUtilizingthisService
AreNowDesigningWaystoMoreFully
ll
IntegratethisServiceintoOperatingTheme

20

g
y
p
BeganTestMarketedMovefromFullyPrepared
CruststoLiveYeastDoughballsinLate2014
AllowsHandCraftingofDoughinFrontof
g
g
CustomersforTraditionalPizzas
FitsBetterwiththeOverallThemeofFresh
Made,FreshBakedWhichisImportantinthe
g
TakenBakeSegment

21

StartedattheSameTimeastheHandCrafted
TraditionalPizzas
UsestheSameDoughballs
FurtheraddstotheArtisanFeelandthe
FreshThemethatisImportanttoTakenBake

22

SpecialEventDesignedtoIntroducethe
Hand
SpecialEventDesignedtoIntroducetheHand
CraftedandHandRolledThemetothe
Communityy
Saturday&SundayEvent

FreePizzatothe1st 100Peopletoattend
50%offPizzaSaleAllDayBothDays
SeriesofSpecialEvents
CostumeContest
HandTossingContest
BoxFoldingContest
23

24

25

New10
LunchPizza
New10LunchPizza
HandCraftedfromDoughballs
OfferedataValuePrice
Off d V l P i
JumboComboOptions
WithSoftDrink
hS f
k
WithHandRolled
Breadsticks

26

12New&DifferentGourmetPizzas
1NewPizzaEachMonthfor12Months
StateThemed
CustomersHaveaRoadMapPassport
StampsandPrizesforTryingall12Pizzas

27

28

NobleRoman
sPointsofDifferentiation:
NobleRomansPointsofDifferentiation:
Mostprogramsarethawandserve
Qualityissues,especiallywithtomatosauce
y
p
y
Essentiallyfrozenpizzathathasbeenthawed
NobleRomansprogramiscomponentassembly
PizzasaremadefromNobleRomansingredientsonsite
MadeFreshHereDailyadtheme
Highoperatormargins;goodvalueforconsumer
OnSitetrainingandsetupforeachlicensee
Extensivemarketing&merchandisingmaterials
29

30

31

PortWashington,WI

Woodbine,GA
32

Odessa,TX

33

34

Medford,WI

35

PromotionFeaturing100FreePizzas
CreatesInitialExcitement&CustomerAwareness
CreatesInitialProductMovement
PromotedThroughBagStufferswithBounceBacks

36

 Thru3rd PartyVendor
UsingLeasingCompany
ShippedDirectto
Licensee
NobleRomansasthe
MiddlemantoCoordinate
andExpedite
Graphicsshipwith
marketingkit;installedon
openingsetup

37

GeneralEconomicFactors
SluggishFirstQuarterGDP
ForecastsBetterforRemainder2015

Commodities
MoreContainedinGeneralvs 2014

RetailGasMargins
OnlySlightlyLessAttractivethanLastYear

38

LastYear

Last12Months

YeartoDate

Beef

+18.0%

+2.4%

14.1%

Pork

+43 1%
+43.1%

30
30.1%
1%

+5 9%
+5.9%

5.1%

35.7%

13.4%

+11.6%

40.9%

+31.7%

Wheat
CrudeOil
Eggs

+50%est

Source:www.indexmundi.comonJune14,2015

39

CurrentMargin
C
M i YearAverage
Y A

perGallon
PriceperGallon
LastYear

$.16

$3.44

ThisYear

$.15

$2.36

RetailGasVolumesDownSlightly2015vs 2014
RetailGasVolumesDown7.9%fromHighin2005
RetailGasVolumesaboutEqualto1998Volumes
GasVolumePerCapitaDown21.7%fromHighin1989;LargestDropSince2008

Source:NACSDailyonJune19,2015.

40

Current&Historical$per#
$2.04

$2.00
$1.80

$1.74

$1.70

$1.65

$1.60
$1.48

$1.40
$1 20
$1.20
LastYear

ThisYear

2015Low

2015High

10YrAvg

Source:www.cheesereporter.comonJune19,2015

41

Cost
o 4 eppe o
a
Costof14"PepperoniPizza
$3.70
$3.65
$3.60
6
$3.55
$3.50
$3.45
$3.40
$
$3.35

$3.30
$3.25
At10YrAvg

At$2.04/lb

At$1.70/lb

At$1.48/lb

LastYear

Current

ThisYearLow

TraditionalVenueUsingIndyBasedDistributedCosts;AssumesUseofFullyPreparedCrust.

42

Maintain3VenueApproachwithRefinements
f
IntensifyOperationalContactwith
Franchisees&Licensees
h
SetCapabilityforAcceleratedRampUpin
RevenueGrowth
h

43

RefinementoftheStandAloneYouBake,
f
f
WeBakeVenue
FullerIntegrationofBakingService
ll
f k

Datashowssignificantpercentagesofconsumers

optingforbakingservicewhereoffered
Shouldallowforsignificantregionalopportunities
withestablishedbrandnameandexpectations
i h
bli h db d
d
i

RollOutofOtherTestItemsSuchasHand
C ft dD
CraftedDoughandLunchOptions
h dL hO ti
44

EstablishNewOperationalStructureFocusedon
GeographicServicetoFranchiseesand
Licensees
Relationshipmodel
Fixedgeographicterritoriesinareasofconcentration
GroceryVenue
Non TraditionalVenue
NonTraditionalVenue
Goalofexpandingaveragerelationshipanddriving

additionalperunitrevenuesonestablishedunits
p
45

SignificantExpansionofFranchise&License
f
f
SalesCapacity
Addsalesforce near/midtermexpansion
Examinebrokerrepresentation

46

Category
Royalties&FeesfromHostPremiseVenue

GrowthEstimate
4% to6%

Royalties&FeesfromGroceryVenue

70%to90%

Royalties&FeesfromStandAloneVenue

17%to25%

Total2015RevenueGrowthEstimate

Approx.20%
Up$1.4mto$2.0m
Total$9.3mto$9.9m

47

OperatingExpenses+Interest
O
i E
I
(inThousands)
$5,600
$5,400
$5,200
$5,000
$4,800
$4,600
$4,400
$4,200
$4,000
$3,800
$3 600
$3,600
2011

2012

2013

2014

2015est
48

Balance

Rate

BlendedRate

June30,2012
PreferredStock

TotalJune30,2012

$4,895,833

4.25%

825,000

12.0%

$5,720,833

5.37%

June30,2013
BankLoan
PreferredStock

TotalJune30,2013

$3,645,833

4.20%

825,000

12.0%

$4,470,833

5.64%

June30,2014
BankLoans

TotalJune30,2014

$3,243,333

4.57%

$3,243,333

4.57%

Note:PreeferredStockredem
mptioneffectiveOcctober31,2013

BankLoan

June23,2015
3,
5
BankLoans

TotalJune23,2015

$2,552,082

$2,552,082

4.57%

4.57%
49

The statements contained in this presentation concerning the company

company'ss future revenues,
revenues profitability,
profitability
financial resources, market demand and product & venue development are forwardlooking
statements (as such term is defined in the Private 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 company's management. The
company's
p y actual results in the future mayy differ materiallyy from those p
projected
j
in the forward
looking statements due to risks and uncertainties that exist in the companys operations and business
environment, including, but not limited to, market acceptance of current or future products, venues
and brands, competitive factors and pricing pressures, nonrenewal of franchise agreements, shifts in
market demand, general economic conditions and other factors including, but not limited to, changes
in demand for the company's products, franchises or licenses, the success or failure of individual
f
franchisees
hi
and
d licensees,
li
and
d changes
h
i prices
in
i
or supplies
li off food
f d ingredients
i
di t and
d labor
l b as well.
ll In
I
addition, the company has no previous experience selling its products through retail grocery channels
or standalone takenbake locations and there can be no assurance that grocers will continue to stock
the companys pizzas or that customers will continue to buy them. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions or estimates prove incorrect, actual results
may vary materially from those described herein as anticipated,
anticipated believed,
believed estimated,
estimated expected or
intended. The company undertakes no obligations to update the information in this presentation for
subsequent events.

50