Noble Roman’s IncNoble Roman s Inc.OTC BB: NROM

January 2013

1/17/2013 1

Safe Harbor

The statements contained in this presentation concerning the Company's future revenues, profitability, financial resources, market demand and product development are forward-looking statements (as such term is defined in the Private development are forward looking 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 actual results in the future may differ materially from g p y y ythose 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

h f d d f th C ' d t li f hi th purchases of, or demand for, the Company's products, licenses or franchises, the 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 or uncertainties materialize, or should underlying assumptions or estimates prove 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 eventssubsequent events.

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Investor Highlights

• Net income from continuing operations margin • Accelerating growth

Sustainable Profitability, Accelerating Growth

Li i f hi i b i d l

Strategically Well-Positioned

of 20.6% for 2011• ~40% operating margins

• Management methodically reducing debt

Licensing-franchising business modelSuperior financial performance while alleviating the risk of owning and operating restaurants

Positioned in Fastest-Growing Pizza Industry SegmentTake-N-Bake (TNB) is the growth segment of the pizza industry

TNB Grocery Distribution

p a dust y

Stand-alone TNB franchises

Diversified Platform for Growth Leveraging Take-N-Bake

y• Distribution in 1350 grocery stores and growing• 14 grocery distributors

• First unit opened October 29, 2012• Second unit opened December 3, 2012• Third opened January 14, 2013• Six additional units are currently under development

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y p

Who We AreThree Revenue Sources for Future Growth

Stand-Alone Take-N-Bake

Three Revenue Sources for Future Growth

Non-Traditional Franchises Grocery Take-N-Bake

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Revenue Sources

Non Traditional Franchise Take N Bake: GroceryNon-Traditional Franchise Take-N-Bake: Grocery2010 2011 YTD 2011 YTD 2012

Revenue 0.463 1.167 0.873 1.045

2010 2011 YTD 2011 YTD 2012

Revenue 4.4 4.0 3.1 3.2

% of Revenue

6 16 16 19

GrowthRate

+1223 +152 +20

% of Revenue

60 54 57 57

GrowthRate

-21 -10 +3

Take-N-Bake: Stand-AloneFirst prototype opened 10/29/12. Second opened 12/3/12. Third opened 1/14/13

Six more in development/constructionSix more in development/construction

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Industry

• 2010 U.S. pizza sales: $34.4 billion1 02% increase from 2009

Top 5 U.S. Pizzeria’s by 2010 Sales– 1.02% increase from 2009

• 57% of pizza outlets independently owned and control 48% of total pizza industry sales

$5.31

$3.31

Pizza Hut

Domino'spizza industry sales• Store unit count

– 65,283 as of spring 2011, down774 units from 66,057 in spring 2010

$2.08

$1.25

Papa John's

Little Caesarsfrom 66,057 in spring 2010

• Take-N-Bake is fastest growing segment of the industry

• TNB can accept food stamps

$0.66Papa Murphy's Take-'N'-Bake $ in billions

TNB can accept food stamps– 47 million people using food stamps

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All data: October 2011 PMQ Magazine

Market ShareAmericans Enjoy Home cooked PizzaAmericans Enjoy Home-cooked Pizza

By Type By Company

20%

45%

20%31%

52%

36% 17%

Carry out Delivery Dine-in "Big 4" Independents Other Chains

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Non-Traditional Franchises• Target locations

– Bowling centers– Military bases

H i l– Hospitals– Schools– Entertainment centers– Truck stops

C i t – Convenience stores

1772

Franchise/license

1112

15831772

834

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12/31/09 12/31/2010 12/31/2011 YTD 9/30/12

Non-Traditional FranchisesBusiness Model

$6 000-9 000 upfront feesUpfront Fee $6,000-9,000 upfront feesUpfront Fee

11% ongoing royalties and fees in the aggregateOngoing Royalties

$20-22K expected per year per new franchise in Annual Total $20 22K expected per year per new franchise in total fees to Noble Roman’s

ua o aPer Unit

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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

$2

$3

ons

Grocery Take-N-Bake Revenues

$0

$1

$2

2009 2010 2011 2012 2013

$Milli

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2009 2010 2011 2012 Est.

2013 Est.

Grocery Take-N-Bake DistributionBusiness Model

$2-2.2K expected per year per each new grocery store license in total fees to Noble Roman’s

Annual Total Per

U it

TNB Grocery Locationsby Quarter

14Distributors by Quarter

Unit

9101016

10841206

1350

by Quarter

10 1011 11

12

190292

565630

778910

87 93190

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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 locationslocations

– 1 in 7 Americans on food stamps

• A few smaller, regional players • Represents a growing sales opportunity 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 developmentL t • Low-cost: – Only $60-90k estimated total investment after

landlord allotments– Food cost: 32% of sales

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– Low labor requirements– Minimal equipment requirement

Stand-Alone TNB FranchisesBusiness Model

$18K upfront feesUpfrontFee

10-12% royalty and fees in the aggregateOngoing Fees

Expected gross revenues of $400-600K per unit per year. Results in $48-72K in royalties to Noble Roman’s per location per year

Annual Total Per Unit

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Competition

• Papa Murphy’s Take ‘N Bake is market Papa Murphy Franchisesleader with $655 million in 2010 sales

• 1,202 traditional locations operated for a full 12 months for year ending 1/1/2012

1239

1283

y g / /– Average per store net sales: $559,495

• Highest 401 stores averaged $828,296• Next highest 400 stores averaged $511,241

1119

1171

g g ,• Lowest 401 stores averaged $338,829

• “Big 4” unlikely to enter TNB:– Formulations not conducive to TNB 1/1/2009 1/1/2010 1/1/2011 1/1/2012Formulations not conducive to TNB– Would compete with delivery franchises

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Marketing

Revenue R&D OutreachRevenue Expansion

Focus on revenue expansion through non-

traditional franchises and licenses

R&DLeverage the results of extensive research and

development

OutreachAggressively communicate the

Company's competitive advantages to its target market

of potential franchisees and licenseeslicenses

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Historical Revenue

$1.6

$1.5

$0.03$0.5 $1.2

Through 9 months

ons

$5 0

$1.5$1.4

$0.6

$1.1

$ in

mill

i $5.0$4.4 $4.0

$3.2

2009 2010 2011 YTD 2012

Non-traditional franchises Full service restaurant Grocery store TNB

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Non-traditional franchises Full service restaurant Grocery store TNB

Expenses$4.3 $4.3 $4.5

G&ADepreciationRestaurant Expenses

$3.4

Restaurant ExpensesOther Op ExpensesSales CommissionsTravel

mill

ions

Trade ShowsSalaries & Wages$

in

2009 2010 2011 YTD through 9/30/2012

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Historical EBITDA

$3.32$3.01 $3.05

$$2.30

in m

illio

ns$

2009 2010 2011 YTD through 9/30/2012

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Historical Net Income from Continuing Operationsg

$1.68$1.51 $1.53

$1 11s $1.11

$ in

mill

ions

$

2009 2010 2011 YTD through 9/30/2012

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Balance Sheet Summary9/30/12 12/31/11 12/31/10 12/31/09

Assets

Cash 163 233 337 333Accounts & Notes Receivable - Net 1,212 885 920 1,343Inventories 424 338 317 239Other 2,160 1,931 1,882 1,536Total 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 10,704Other Assets 4.454 3,915 2,921 2,087, , ,Total Assets 17,614 17,224 16,895 16,682

Liabilities & Stockholders' Equity

A t P bl & A d E 170 665 654 435Accounts Payable & Accrued Expenses 170 665 654 435Notes Payable 4,583 4,831 5,356 5,625Total Stockholders' Equity 12,861 11,728 10,885 10,623

Total Liabilities & Stockholder's Equity 17,614 17,224 16,895 16,682

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Total Liabilities & Stockholder s Equity 17,614 17,224 16,895 16,682

Capital Structure

9/30/2012

Weighted Average Common Stock 19,506,886

Options 197,438

Convertible Preferred Stock 366,666

Total 20,070,990

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ManagementPaul W. Mobley - Chairman of the Board and Chief Executive Officer1991 – present: Chairman of the Board, CEO, CFO 1974 – present: Director1981 – 1997: President of the Company1974 – 1978: VP and COO

Paul W. Mobley - Chairman of the Board and Chief Executive Officer1991 – present: Chairman of the Board, CEO, CFO 1974 – present: Director1981 – 1997: President of the Company1974 – 1978: VP and COO1974 1978: VP and COO1978 – 1981: SVP1975 – 1987: Significant shareholder and president of a Company that owned and

operated 17 Arby's franchise restaurants

1974 1978: VP and COO1978 – 1981: SVP1975 – 1987: Significant shareholder and president of a Company that owned and

operated 17 Arby's franchise restaurants

A. Scott Mobley - Chief Operating Officer and President1997 – present: President1992 – present: Director 1993 – present: Secretary1988 1997: VP

A. Scott Mobley - Chief Operating Officer and President1997 – present: President1992 – present: Director 1993 – present: Secretary1988 1997: VP 1988 – 1997: VP 1987 – 1988: Director of Marketing Prior to Noble Roman’s, strategic planning analyst with a division of Lithonia Lighting Company

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 Franchising1997 – present: EVP of Franchising 1992 – 1997: Director of Business Development1987 – 1992: Owner of Branson-Yoder Marketing Group

Troy Branson - Executive Vice President of Franchising1997 – present: EVP of Franchising 1992 – 1997: Director of Business Development1987 – 1992: Owner of Branson-Yoder Marketing Group

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Investor Summary

B i d l S i bl P i i d i h S f ll Experienced Business model that delivers

solid financial performance

while mitigating

Sustainable profitability; accelerating

growth

Positioned in the fastest growing segment of the pizza industry –

Take ’N Bake

Successfully defended lawsuit;

management can focus on

Experienced management

team

g grisk growth and

profitability

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