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MamaMancini’s Holdings Inc.(OTCQB: MMMB)
Corporate PresentationWinter 2018
Winter 2018MAMAMANCINI’S An Original Family Recipe
Forward Looking Statements
This presentation may contain "forward-looking statements" within the meaning ofSection 27A of the Securities Act of 1933, as amended, and Section 21E of theSecurities Exchange Act of 1934. "Forward-looking statements" describe futureexpectations, plans, results, or strategies and are generally preceded by words suchas "may," "future,” "plan" or "planned,” "will" or "should,” "expected,” "anticipates,”"draft,” "eventually" or "projected.” You are cautioned that such statements aresubject to a multitude of risks and uncertainties that could cause futurecircumstances, events, or results to differ materially from those projected in theforward-looking statements, including the risks that actual results may differmaterially from those projected in the forward-looking statements as a result ofvarious factors, and other risks identified in the Company’s 10-K for the fiscal yearended January 31, 2018 and other filings made by the Company with the Securitiesand Exchange Commission.
Winter 2018MAMAMANCINI’S An Original Family Recipe
Company Highlights
• Investing in the business to grow profitably.
• Growth initiatives gaining traction, including successful launch of several 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.
Winter 2018MAMAMANCINI’S An Original Family Recipe
Growth Drivers for MMMB
• Industry Growing Rapidly• Perimeter of store where majority of MMMB product
located growing 8-10% annually• Good Margins
• MMMB: ~34-35% Gross Profit Margin• Marginal overhead increases with higher sales
• Consistent Sales at full pricing• Consumer Trends are favorable
• Home meal replacement• Core products fill consumer needs
• Quality• Taste• Nutrition• Ease of preparation
• Competition fractionalized and non-branded• Value of the Brand
MMMB Products
Quality
Taste Nutrition
Preparation
What is a good business to be in?
Winter 2018MAMAMANCINI’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.
MamaMancini’s:An Original Family Recipe
• All-natural, no artificial ingredients;• Superior nutritional profile;• Highly convenient preparation;• Great value.
Winter 2018MAMAMANCINI’S An Original Family Recipe
Product Review
Winter 2018MAMAMANCINI’S An Original Family Recipe
Product Review
Winter 2018MAMAMANCINI’S An Original Family Recipe
Superior Nutritional Products
Winter 2018MAMAMANCINI’S An Original Family Recipe
High Customer Retention
Winter 2018MAMAMANCINI’S An Original Family Recipe
Favorable Industry Trends
“Shoppers are increasingly shunning the processed, packaged products that fill most shelves in the center of the store. Instead, they are hunting the perimeter for….prepared foods…They’re [the consumer] really buying more….prepared meals.”
- What’s New in the Supermarket?(May 16, 2017)
“….the most fundamental one is a shift in consumer preferences. Put simply, customers are buying more fresh vegetables and meat and shying away from packaged, processed foods….Supermarkets are responding to this trend in a number of ways. They are renovating stores to allocate more space to the perimeter, where fresh produce is sold…In addition, small challenger brands are proving more responsive to consumer trends..”
-What’s Working and What’s Not in the Supermarket?(June 7, 2018)
“And they [consumers] are buying more from stores at two poles: ones with cheap prices, and ones that offer high-quality fresh food, often at a premium….Consumers are far more curious and educated about the source and content of their food….while simultaneous demand for convenience….”
-For Amazon, Now Comes the Hard Part (June 19, 2017)
Winter 2018MAMAMANCINI’S An Original Family Recipe
11
Growing Business with Large Expansion Opportunity
11
Winter 2018MAMAMANCINI’S An Original Family Recipe
Growing Business with ExpansionOpportunity
12,600
25,400
Current MMMB Stores
Future Opportunity
Retail Channel Presence*
*Based on estimates of 38.000 U.S. Supermarket locations
Winter 2018MAMAMANCINI’S An Original Family Recipe
• Sales $8.6M
• Company goes public Products sold in 7,000 locations
• Company Incorporated
• Sales: $50,000
July 2009
• Logo and packaging developed.
• Company ships first product.
2010
• Sales: $3.7M• Expansion of
product line to 4 Products
2011
• Sales: $4.6M
• Embark on aggressive radio campaign on Sirius Radio
2012
• Sales: $12.3M• Introduction of 6
new products • Available in
11,000 locations
2014
• Commence relationship with QVC
• Focus on margin improvement
• Elimination of underperforming accounts
2015
• Expand and leverage QVC relationship
• Drive expansion with Top 10 customers
• Focus on new major accounts
• Expand product portfolio
2016
2013
Concept Brand Awareness Expansion Profitable Growth
Positioned for Rapid Growth
2018• Sales rise by
53% to another new record of $27.5M
• Company acquires JEFE, creating additional operational efficiencies
2017• Sales climb
43% to new record of $18.0M
• Company reports first profitable quarter
Winter 2018MAMAMANCINI’S An Original Family Recipe
14
Focus on Growing Business Profitably
14
Winter 2018MAMAMANCINI’S An Original Family Recipe
Growing Revenues Profitably
Eliminate Underperforming Accounts to Turn
Profitable
Leverage Past Investments in
Brand Awareness
Expand Upon Success of QVC Relationships to
Effectively Introduce New
Products
Expand Geographic
Reach to Untapped U.S.
Areas
Focus on Multi-Million Dollar
Accounts
Investing in the business to grow profitably
Complete Ongoing In-Progress In-Progress In-Progress
Winter 2018MAMAMANCINI’S An Original Family Recipe
Targeting High Growth Perimeter of Store
Center of store is decreasing
by ~ 1-2% per year
Perimeter of store is growing at approximately
8-10% per yearHigher growth is occurring in the “perimeter,” or outer ring of the supermarket where fresh foods are stocked.
Fresh DeliFr
esh
Hot B
ar
Fresh SandwichesFresh Package Meat
Fresh Prepared Food
Fres
h Pa
sta
Winter 2018MAMAMANCINI’S An Original Family Recipe
17
Expansion Focus
Winter 2018MAMAMANCINI’S An Original Family Recipe
Brand Building Through QVCWorld's Largest Direct to Consumer Media Marketer
Growing Profit Center
New Product Introduction
Product Research and Development
Marketing Tool to Sell to
Trade
Geographic Reach
Branding Building
12 new MamaMancini's products that have been featured on QVC since June 2015.
Winter 2018MAMAMANCINI’S An Original Family Recipe
600
1,400
Super Value
Large Expansion Potential with Major Retailer Chains
550
2,200
Kroger
700
1,500
Albertson’s/Safeway
180
370
Whole Foods
1,800
Target
500
1,500
Nash-Finch90
470
Costco
640
0 Sam’s Club
4,500
Walmart300
1,700
AWG
Current MMMB Stores Future Opportunity
Still scratching the surface of potential distribution
1110
Publix
770
0Stop n Shop/Giant
Fully Penetrated
Fully Penetrated New Opportunity
New OpportunityFully Penetrated
Winter 2018MAMAMANCINI’S An Original Family Recipe
Fresh Deli
Fresh Hot Bar
Fresh Packag
edMeat
Fresh Prepared Meals
Opportunity for multiple product placements per storeMMMB products now in 43,600 locations as of October 31 vs. 40,600 last year.
Company expecting to add 7,000-10,000 locations in coming quarters.
Expand SKU’s Per Retail Location
Original Meatballs and Sauce
Stuffed Meatballs and Sauce
New Meatloa
f
New Sauces
Turkey Meatballs and Sauce
Locations Product
Winter 2018MAMAMANCINI’S An Original Family Recipe
Increasing Velocity per Store
*Estimated at end of third quarter 2014
Winter 2018MAMAMANCINI’S An Original Family Recipe
22
Financials
Winter 2018MAMAMANCINI’S An Original Family Recipe
Revenue Growth Strategy: Focus on Larger, Profitable Accounts
$1.1 $1.3 $1.0
$1.2
$1.8 $1.7 $2.2
$3.1 $2.6
$2.3
$3.8 $3.7 $3.4
$2.7 $3.2 $3.4
$3.9 $4.1 $4.6
$5.4 $5.4
$7.0 $7.4
$7.8 $7.7
$5.6
$8.2
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00 FY 2016 strategy: Eliminate underperforming accounts and focus on fresh foods section of larger accounts.
Near-term revenue impact experienced in first three quarters of 2016.
Revenue growth resumption in FY17 with increase of 43% and continued growth in FY18 with increase of 53%.
Pullback in Q2:19 non recurring; record sales resumed upward growth in Q3:19; continued growth expected in next few quarters
Pathway to future profitable growth established.
$ M
illio
ns
Quarterly Revenue
Winter 2018MAMAMANCINI’S An Original Family Recipe
Revenue Growth Strategy: Focus on Larger, Profitable Accounts
$8.7
$12.0 $12.6
$18.1
$27.5
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
FY13 FY15 FY16 FY17 FY18
FY 2016 strategy: Eliminate underperforming accounts and focus on fresh foods section of larger accounts.
Near-term revenue impact experienced in first three quarters of 2016.
Revenue growth resumption in FY17 with increase of 43% and continued growth in FY18 with increase of 53%.
Pathway to future profitable growth established.
$ M
illio
ns
Annual Revenue
*On January 13, 2014, company changed its fiscal year end to January 31.
Winter 2018MAMAMANCINI’S An Original Family Recipe
Improved Adjusted EBITDA
($1.9)
($2.8)
($0.0)
$1.4
$2.0
($4.00)
($3.00)
($2.00)
($1.00)
$0.00
$1.00
$2.00
$3.00
FY13 FY15 FY16 FY17 FY18
Management initiatives leading to improved adjusted EBITDA:
o Focus on multi-million dollar accounts.
o Lower operating expenses.
o Expanded gross margins.
o Increasing brand awareness.
$ M
illio
ns
*See Appendix for AEBITDA Reconciliation
Winter 2018MAMAMANCINI’S An Original Family Recipe
Manufacturing Leverage
Achievement of quarterly revenue growth has accelerated gross margin expansion.
o Rate of profitability to accelerate going forward.
o Manufacturing process improvements will lead to cost efficiencies, now that manufacturing arm JEFE Foods has been consolidated into MMMB.
o Gradually increasing ability to exert pricing power.
Winter 2018MAMAMANCINI’S An Original Family Recipe
$12.6 Million
$18.0 Million
$27.5 Million
$50+ Million
Pathway to Sustained Profitability
• Establish 10+ accounts at $3-5 million each per year.o Expand existing accounts.
o Enter more storeso Offer new products
o Penetrate new major accounts.• Leverage QVC relationship.
o Increase sales while building brand awareness.
Winter 2018MAMAMANCINI’S An Original Family Recipe
Key Financial Information
• Ticker Symbol: MMMB (OTCQB)• Stock Price: $0.82*• 52-week range: $0.51-$1.93• Shares Outstanding: 32.5 million• Float: 17.9 million• Market Cap: $26.6 million*• Cash: $0.5M (a/o 10/31/18)
o Management expects no additional near-term financings.
• Management/Insiders invested $1 million in July 2015
• Manatuck Hill Note extended to May 1, 2019, with expected full repayment by that date
*as of 12/12/18
Winter 2018MAMAMANCINI’S An Original Family Recipe
Key Takeaways
• Strong product lineage offers great tasting, family-oriented comfort foods.
• Capabilities to expand brand with many more nutritious options.
• Investing in the business to grow profitably:
o Open new accounts with large, national retailers;
o Continue to penetrate existing accounts;
o Add more product placements per store;
o Expand upon QVC relationship;
o Focus on additional food distribution opportunities.
• Additional synergies with recent acquisition of manufacturing arm (JEFE Foods).
• Company prepared to show significant revenue growth on a yearly basis for the
foreseeable future as it continues to develop larger accounts and introduce new
product lines.
Winter 2018MAMAMANCINI’S An Original Family Recipe
30
Management and Appendix
Winter 2018MAMAMANCINI’S An Original Family Recipe
Carl WolfChairman of the Board; CEO35 years of Food Industry experience• Founder and Chairman and CEO of Alpine Lace Brands, Inc. • Founded, managed, and sold MCT Dairies, Inc.• Former Co-chairman of Saratoga Beverage Company
(formerly NASDAQ: TOGA)• Served as advisor to Mamma Sez Biscotti, a snack and
bakery product company from 2002 to 2004
• Served as Director of American Home Food Products, Inc.• Former Chairman of the Board of Media Bay• B.A. from Rutgers University and MBA from the University
of Pittsburgh
Matthew BrownPresident and Chief Operating Officer• Over 19 years of experience in the sales and marketing of
products in the food industry• Former President of Hors D’oeuvres Unlimited• Previously worked in marketing research management at
Kraft Foods, Inc.• B.A. from the University of Michigan and MBA from the
University of Illinois
Proven ManagementLawrence MorgensteinChief Financial Officer • Over 20 years of experience at senior level• Includes CFO, Controller and Consultant roles in public,
private and non-profit businesses.• Prior experience in food manufacturing, marketing and
other industry operational fields.
Dan ManciniCo-Founder and Chief Product Consultant• 25 years experience in idea generation, product design
and sales as Fabric industry executive• Primary marketing personality on QVC• First-in sales executive with extraordinary talent for
closing contracts• Intuitive pied piper-like ability to attract talent and
motivate customers and teams alike
Winter 2018MAMAMANCINI’S An Original Family Recipe
Additional Investor Information
MamaMancini’s Investor Presentations and Marketing Materials:
https://mamamancinis.com/presentations/
Investor research on MMMB:
Taglich Brothers research report:
http://www.taglichbrothers.com/equityuniverse/mamamancinis.php
Seeking Alpha article:
https://seekingalpha.com/article/4132755-mamamancinis-setting-legit-small-cap-
growth-stock
Winter 2018MAMAMANCINI’S An Original Family Recipe
Appendix: Adjusted EBITDA
*On January 13, 2014, company changed its fiscal year end to January 31.
Note: $ in millions
Winter 2018MAMAMANCINI’S An Original Family Recipe
Thank you!
For additional information or investor inquires:
Mr. Carl WolfChairman and CEOMamaMancini’s Holdings, Inc. Stock Symbol: MMMB 973-985-0280 www.mamamancinis.comcarl@mamamancinis.com
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