MamaMancini’s Holdings Inc. Corporate Presentation (OTCQB: MMMB) Winter 2018
Forward Looking Statements This presentation may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future,” "plan" or "planned,” "will" or "should,” "expected,” "anticipates,” "draft,” "eventually" or "projected.” You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company’s 10-K for the fiscal year ended January 31, 2017 and other filings made by the Company with the Securities and Exchange Commission. M AMA M ANCINI’S An Original Family Recipe Winter 2018
Growth Drivers for MMMB What is a good business to be in? • Industry Growing Rapidly • Perimeter of store where majority of MMMB product located growing 8-10% annually Taste Nutrition • Good Margins • MMMB: ~35% Gross Profit Margin • Marginal overhead increases with higher sales • Consistent Sales at full pricing Preparation Quality MMMB • Consumer Trends are favorable Products • Home meal replacement • Core products fill consumer needs • Quality Taste • • Nutrition • Ease of preparation • Competition fractionalized and non-branded Value of the Brand • M AMA M ANCINI’S An Original Family Recipe Winter 2018
MamaMancini’s: An Original Family Recipe Home style, old world Italian food created from recipes Dan Mancini’s grandmother brought to America in 1921 when she came through Ellis Island. Never written down, existing only in her heart until Anna Mancini taught all of the recipes to Dan. He is now sharing them with everyone. • All-natural, no artificial ingredients; • Superior nutritional profile; • Highly convenient preparation; • Great value. M AMA M ANCINI’S An Original Family Recipe Winter 2018
Company Highlights • Investing in the business to grow profitably. • Growth initiatives gaining traction, including successful launch of 10 products on QVC with increasing authorizations. • Continuous improvement on efficiency metrics - increased gross profit margins; improved return on operating expenses; expanding cash flows. • Valuation metrics reflect discount to peer group - other rapidly growing brands being acquired at higher valuations. • Management team with proven track record of brand building. M AMA M ANCINI’S An Original Family Recipe Winter 2018
Superior Nutritional Products M AMA M ANCINI’S An Original Family Recipe Winter 2018
High Customer Retention M AMA M ANCINI’S An Original Family Recipe Winter 2018
Favorable Industry Trends “….grocery stores are choosing to give better play to fresh food, prepared hot meals and items from local upstarts more in favor with increasingly health-conscious consumers…. grocery chains around the country are building new stores that have less space for traditional packaged foods in the center aisles and more for in-store restaurants and fresh meals shoppers can take home.” -Top Food Brands Are Losing the Battle for Shelf Space (May 1, 2017) “And they [consumers] are buying more from stores at two poles: ones with cheap prices, and ones that offer high- “Shoppers are increasingly shunning the processed, quality fresh food, often at a premium….Consumers are far packaged products that fill most shelves in the center more curious and educated about the source and content of of the store. Instead, they are hunting the perimeter their food….while simultaneous demand for for….prepared foods…They’re [the consumer] really convenience….” buying more….prepared meals.” -For Amazon, Now Comes the Hard Part - What’s New in the Supermarket? (June 19, 2017) (May 16, 2017) M AMA M ANCINI’S An Original Family Recipe Winter 2018
Growing Business with Large Expansion Opportunity 9 9 M AMA M ANCINI’S An Original Family Recipe Winter 2018
Growing Business with Expansion Opportunity Retail Channel Presence* 12,200 25,800 Current MMMB Stores Future Opportunity *Based on estimates of 38.000 U.S. Supermarket locations M AMA M ANCINI’S An Original Family Recipe Winter 2018
Positioned for Rapid Growth Concept Brand Awareness Expansion Profitable Growth 2014 2017 2013 • Sales: $12.3M • Sales climb 43% • Introduction of 6 to new record new products • Sales of $18.0M • Available in $8.6M • Company 11,000 locations • Company reports first goes profitable July 2009 public quarter 2016 Company • 2011 Products Incorporated sold in Sales: $3.7M • Expand and leverage Sales: $50,000 • • 7,000 Expansion of QVC relationship • locations 2010 product line to 4 • Drive expansion with Top Products 10 customers • Focus on new major • Logo and packaging accounts developed. • Expand product portfolio 2015 • Company ships first product. • Commence relationship 2012 with QVC • Focus on margin • Sales: $4.6M improvement • Embark on • Elimination of aggressive radio underperforming accounts campaign on Sirius Radio M AMA M ANCINI’S An Original Family Recipe Winter 2018
Focus on Growing Business Profitably 12 12 M AMA M ANCINI’S An Original Family Recipe Winter 2018
Growing Revenues Profitably Investing in the business to grow profitably Expand Upon Expand Eliminate Success of QVC Leverage Past Geographic Focus on Multi- Underperforming Relationships to Investments in Reach to Million Dollar Accounts to Turn Effectively Brand Awareness Untapped U.S. Accounts Profitable Introduce New Areas Products Complete Ongoing In-Progress In-Progress In-Progress M AMA M ANCINI’S An Original Family Recipe Winter 2018
Targeting High Growth Perimeter of Store Perimeter of store is Higher growth is occurring in the growing at approximately “perimeter,” or outer ring of the 8-10% per year supermarket where fresh foods are stocked. Fresh Package Meat Fresh Sandwiches Fresh Hot Bar Center of store Fresh Pasta is decreasing by ~ 1-2% per year Fresh Deli Fresh Prepared Food M AMA M ANCINI’S An Original Family Recipe Winter 2018
Focus on Multi-Million Dollar Accounts Revenues at Top 10 Accounts (TTM ended October 31, 2017) Top 10 accounts represented 88.6% for the trailing twelve $2.9M month (“TTM”) period ended October 31, 2017 Company focus is on high value, multi-million dollar accounts, to grow business $22.7M more profitably $ in Millions Other Top 10 Accounts M AMA M ANCINI’S An Original Family Recipe Winter 2018
Expansion Focus 16 16 M AMA M ANCINI’S An Original Family Recipe Winter 2018
Brand Building Through QVC World's Largest Direct to Consumer Media Marketer 12 new MamaMancini's products that have been featured on QVC since June 2015. Product Marketing Growing New Product Geographic Branding Research and Tool to Sell to Profit Center Introduction Reach Building Development Trade M AMA M ANCINI’S An Original Family Recipe Winter 2018
Large Expansion Potential with Major Retailer Chains Still scratching the surface of potential distribution Albertson’s/Safeway Kroger Super Value Whole Foods Publix Target 550 600 700 180 Fully Penetrated New Opportunity 1,500 1,400 370 2,200 1,800 1110 0 Sam’s Club Nash-Finch AWG Costco Walmart Stop n Shop/Giant 90 300 500 Fully Penetrated New Opportunity Fully Penetrated 1,500 1,700 470 4,500 770 640 Current MMMB Stores Future Opportunity M AMA M ANCINI’S An Original Family Recipe Winter 2018
Expand SKU’s Per Retail Location Opportunity for multiple product placements per store Locations Product Fresh Original Stuffed Turkey Fresh Package Fresh Fresh Meatball Meatball New New Meatball Prepared d Deli Hot Bar s and s and Meatloaf Sauces s and Meals Sauce Sauce Sauce Meat M AMA M ANCINI’S An Original Family Recipe Winter 2018
Increasing Velocity per Store *Estimated at end of third quarter 2014 M AMA M ANCINI’S An Original Family Recipe Winter 2018
Financials 21 21 M AMA M ANCINI’S An Original Family Recipe Winter 2018
Revenue Growth Strategy: Focus on Larger, Profitable Accounts Quarterly Revenue $8.00 $7.4 $7.0 $7.00 FY 2016 strategy: Eliminate underperforming accounts. $6.00 $5.4 $5.4 $ Millions Near-term revenue impact $5.00 $4.6 experienced in first three $4.1 $3.9 quarters of 2016. $3.8 $3.7 $4.00 $3.4 $3.4 $3.2 $3.1 Revenue growth resumption in $3.00 $2.7 $2.6 FY17 with increase of 43%. $2.3 $2.2 $2.00 $1.8 $1.7 Pathway to future profitable $1.3 $1.2 $1.1 $1.0 growth established. $1.00 $0.00 M AMA M ANCINI’S An Original Family Recipe Winter 2018
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