Bank of America Merrill Lynch Consumer Conference

March 11, 2010

March 2010 Investor Presentation

Forward-Looking Statements
During this discussion Company management may make forward looking statements within the meaning of applicable securities laws. The statements may include projections regarding future earnings and results which are based upon the Companys current expectations and assumptions, which are subject to a number of risks and uncertainties. Factors that could cause actual results to differ, including price competition and industry consolidation, increases in costs or availability of ingredients, product price increases impact on total revenue, risks from large customers, changes in consumer preferences, implementation of a new information system, product recalls or safety concerns, food industry and regulatory factors, acquisition and divestiture risks, ability to execute strategic initiatives, interest rate, foreign exchange rate and credit risks, natural disasters or catastrophic events and current economic conditions are discussed in the Companys most recent Form 10-K filed with the Securities and Exchange Commission.

March 2010 Investor Presentation

Lance, Inc.

Founded in 1913

One of the nations largest manufacturers and distributors of niche snack foods
Diversified revenue base of branded, private label and co-pack products Strong regional and national brands Established and leveragable DSD and independent distributor network

Experienced in Baked Goods and Salty Snacks manufacturing

4,800 employees
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March 2010 Investor Presentation

Brand Portfolio

Simple, Wholesome Fun Target: Gen-X families

Well-Crafted Delight Target: Adults with Discerning Tastes

Uniquely Satisfying Target: Insatiable Snackers

Sharing Simple Traditions Target: Cookie Enthusiasts

March 2010 Investor Presentation

Revenue Categories

Private Brands 32%

Branded 58%

Contract 10%

2008 Full-Year
March 2010 Investor Presentation

Lance, Inc. Manufacturing Locations

March 2010 Investor Presentation

Distribution Methods

DSD Footprint Distributors

Branded Products Over 1,000 company-owned DSD routes in 25 states Over 2000 independent distributor routes throughout the US

Private Brand and Branded products shipped directly to customers nationwide

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March 2010 Investor Presentation

Brand Building

March 2010 Investor Presentation

Brand Building

March 2010 Investor Presentation

Private Brands Category Development

March 2010 Investor Presentation

10

Total Shareholder Return

Stockholder Return Performance

180
160
Index: 12/27/2003 = 100

140 120 100

80
60
12/2004 12/2005 Lance 12/2006 Peer Group * 12/2007 12/2008 12/2009 Russell 2000

* Peer Group includes: Golden Enterprises, Tasty Baking, J&J Snack Foods, Hain Celestial, Flowers Foods, Ralcorp, Smuckers, Sarah Lee, Con Agra, Campbell, Kellogg, General Mills and Kraft
March 2010 Investor Presentation

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Lance Transformation Since 2006

Building The Organization

Leadership Internal Integration

Supply Chain Efficiencies

Centralized Procurement E-Vans

DSD Transformation
Enhanced Frontline Leadership Improved Work Processes Optimized Service Patterns

ERP SYSTEM
Replaced Seven Distinct Systems Oracle Common Processes Enhanced Visibility

Centralization Shared Services Multi Site Manufacturing Common Processes

Four Acquisitions

March 2010 Investor Presentation

12

Next Phases Of Transformation

Today

Turnaround

Optimization

Continuous Improvement

Revenue Management Dashboard KPIs Systems and Process Optimization Growth Comes From Core Products Innovation Acquisitions

Adaptive Environment Lean Concepts Best Practices Growth Comes From Core Products Innovation Acquisitions

Strong Balance Sheet and Experienced Management Supports Future Growth

March 2010 Investor Presentation

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Financial Information
March 2010 Investor Presentation

Net Revenue Growth

(Unaudited)

16.2% 13.9%
11.8% 11.8% 12.4% 9.7%

10.6%

9.7%

8.5% 7.4%
6.4% 5.5%

8.4%
7.3%

9.0%

7.3%
7.7%

4.6%
2.5%

5.0%

4.5%

4.1%

0.9%

0.7%

Q1-2007 Q2-2007 Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Q3-2009 Q4-2009
Quarterly Trailing 4 Quarters

March 2010 Investor Presentation

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Gross Margin Trend

(Unaudited)

43.6% 44.5%
43.5% 43.6%

41.6%
43.1%

37.2%
41.7%

37.6%
40.3%

40.9% 40.4% 41.1%

37.4%
38.5%

36.6%
37.2%

39.4% 39.1%
40.0% 40.4% 37.8% 38.1% 39.0%

Q1-2007 Q2-2007 Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008* Q1-2009 Q2-2009 Q3-2009* Q4-2009*
Quarterly Trailing 4 Quarters

* Excludes special items. For a corresponding reconciliation of data excluding special items to data including special items, see the reconciliation of non-GAAP measures in the Appendix.
March 2010 Investor Presentation

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SG&A % of Net Revenue

(Unaudited)

38.2%
37.2% 37.7% 36.8% 36.4%

36.8%
35.7% 36.0%

36.3%

35.5% 35.6%

34.9% 34.7%
34.1% 34.1% 34.0% 34.0% 33.8%

33.0% 33.5% 33.8% 33.0% 33.3% 32.1%

Q1-2007 Q2-2007 Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008* Q1-2009 Q2-2009 Q3-2009* Q4-2009*
Quarterly Trailing 4 Quarters

* Excludes special items. For a corresponding reconciliation of data excluding special items to data including special items, see the reconciliation of non-GAAP measures in the Appendix. March 2010 Investor Presentation

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Operating Profit** Margin Trend

(Unaudited)

8.2%

8.1% 6.1%

6.4%
5.0%
4.6% 4.2%

6.9% 6.4%
6.2% 6.6% 5.7%

5.4% 6.4%
5.7%

6.3% 5.4%

4.5%
2.5%
3.6% 2.8% 2.4%

1.5% 0.8%

Q1-2007 Q2-2007 Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008* Q1-2009 Q2-2009 Q3-2009* Q4-2009*
Quarterly Trailing 4 Quarters

* Excludes special items. For a corresponding reconciliation of data excluding special items to data including special items, see the reconciliation of non-GAAP measures in the Appendix. ** Operating profit percentage is a non-GAAP measure. For a corresponding reconciliation of operating profit percentage to the most comparable GAAP measure, see the reconciliation of non-GAAP in the Appendix. March 2010 Investor Presentation

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Q&A
March 2010 Investor Presentation

Appendix
March 2010 Investor Presentation

Reconciliation of Non-GAAP Measures

This presentation includes certain measures not derived in accordance with generally accepted accounting principles (GAAP). Such measures should not be considered substitutes for any measures derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliation of these non-GAAP financial measures to the most nearly comparable GAAP measures, if applicable, is presented on the slides that follow. The Company believes these non-GAAP financial measures provide useful information to investors as the measures emphasize core ongoing operations and are helpful in comparing past and present operating results. The Company uses these measures to evaluate past performance and prospects for future performance. The presentation of non-GAAP financial measures by the Company should not be considered in isolation or as a substitute for the Companys financial results prepared in accordance with GAAP.
March 2010 Investor Presentation

21

Reconciliation of Non-GAAP Measures: Q4 2008 Special Items

(Unaudited) $ in Millions, except EPS

Q4 2008 Including Special Items

Net Sales COGS Gross Margin Gross Margin % SG&A SG&A % Other (income)/expense, net Income from continuing operations before interest and income taxes Interest expense, net Income from continuing operations before income taxes Income tax expense Income tax rate Net income from continuing operations Weighted average shares outstanding diluted (in millions) Diluted earnings per share
March 2010 Investor Presentation

Q4 2008 Special Items

$ $ $ $ $ $ $ $ $ $ 0.9 (0.9) 0.8 0.3 (1.9) 0.0 (2.0) (0.7) (1.3) 32.0 $ (0.04)

Q4 2008 Excluding Special Items

$ $ $ $ $ $ $ $ $ $ 215.3 130.5 84.8 39.4% 71.1 33.0% (0.8) 14.5 0.8 13.6 4.8 35.2% 8.8 32.0 $ 0.28

$ $ $ $ $ $ $ $ $ $

215.3 131.3 84.0 39.0% 71.9 33.4% (0.5) 12.5 0.9 11.7 4.1 35.3% 7.5 32.0

0.24
22

Reconciliation of Non-GAAP Measures: FY 2008 Special Items

(Unaudited) $ in Millions, except EPS

Full Yr. 2008 Including Special Items

Net Sales COGS Gross Margin Gross Margin % SG&A SG&A % Other (income)/expense, net Income from continuing operations before interest and income taxes Interest expense, net Income from continuing operations before income taxes Income tax expense Income tax rate Net income from continuing operations Weighted average shares outstanding diluted (in millions) Diluted earnings per share
March 2010 Investor Presentation

Full Yr. 2008 Special Items

$ $ $ $ $ $ $ $ $ $ 0.9 (0.9) 0.8 0.3 (1.9) 0.0 (2.0) (0.7) (1.3) 31.8 $ (0.04)

Full Yr. 2008 Excluding Special Items

$ $ $ $ $ $ $ $ $ $ 852.5 530.7 321.8 37.8% 290.9 34.1% (1.1) 32.1 3.0 29.1 10.1 34.6% 19.0 31.8 $ 0.60

$ $ $ $ $ $ $ $ $ $

852.5 531.5 320.9 37.6% 291.7 34.2% (0.9) 30.1 3.0 27.1 9.4 34.6% 17.7 31.8

0.56
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Reconciliation of Non-GAAP Measures: Q4 2009 Special Items

(Unaudited) $ in Millions, except EPS

Q4 2009 Including Special Items

Net Sales COGS Gross Margin Gross Margin % SG&A SG&A % Other expense, net Income from continuing operations before interest and income taxes Interest expense, net Income from continuing operations before income taxes Income tax expense Income tax rate Net income from continuing operations Weighted average shares outstanding diluted (in millions) Diluted earnings per share
March 2010 Investor Presentation

Q4 2009 Special Items

$ $ $ $ $ $ $ $ $ $ 0.6 (0.6) 0.3 (0.9) (0.9) (0.3) (0.6) 32.7 $ (0.02)

Q4 2009 Excluding Special Items

$ $ $ $ $ $ $ $ $ $ 231.1 136.2 94.9 41.1% 76.3 33.0% 0.5 18.1 0.8 17.3 5.6 32.6% 11.6 32.7 $ 0.36

$ $ $ $ $ $ $ $ $ $

231.1 136.8 94.3 40.8% 76.6 33.1% 0.5 17.2 0.8 16.4 5.3 32.6% 11.0 32.7

0.34
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Reconciliation of Non-GAAP Measures: FY 2009 Special Items

(Unaudited) $ in Millions, except EPS

Full Yr. 2009 Including Special Items

Net Sales COGS Gross Margin Gross Margin % SG&A SG&A % Other expense, net Income from continuing operations before interest and income taxes Interest expense, net Income from continuing operations before income taxes Income tax expense Income tax rate Net income from continuing operations Weighted average shares outstanding diluted (in millions) Diluted earnings per share
March 2010 Investor Presentation

Full Yr. 2009 Special Items

$ $ $ $ $ $ $ $ $ $ 0.6 (0.6) 0.5 (1.1) (1.1) (0.4) (0.7) 32.4 $ (0.02)

Full Yr. 2009 Excluding Special Items

$ $ $ $ $ $ $ $ $ $ 918.2 547.4 370.8 40.4% 310.1 33.8% 1.8 58.9 3.4 55.6 19.1 34.3% 36.5 32.4 $ 1.13

$ $ $ $ $ $ $ $ $ $

918.2 548.0 370.2 40.3% 310.6 33.8% 1.8 57.8 3.4 54.5 18.7 34.3% 35.8 32.4

1.11
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Reconciliation of Non-GAAP Measures: Operating Profit

(Unaudited) $ in Millions

Q4 2009
Income from continuing operations before interest & income taxes Special items included in income from continuing operations before interest & income taxes
Add Back

Q4 2008
$ 12.5 $ $ $ (1.9) (0.5) 0.3

Full Year 2009

$ $ $ $ $ 57.8 (1.1) 1.8 60.7

Full Year 2008

$ $ $ $ $ 30.1 (1.9) (0.9) 0.3 30.9

$ $ $ $ $

17.2 (0.9) 0.5 18.6

Other expense/(income), net Special items included in other expense/(income), net

Equals

Operating profit excluding special items

$ 13.7

Net Sales

$ 231.1

$ 215.3

918.2

852.5

Operating Profit % of Net Sales

March 2010 Investor Presentation

8.1%
26

6.4%

6.6%

3.6%

Reconciliation of Non-GAAP Measures: Operating Profit Trend

(Unaudited) $ in Millions
Q1-07 Income from continuing operations before interest & taxes Special items included in income from continuing operations before interest & taxes Add Back Other (income)/expense, net Special items included in other (income)/expense, net Equals Operating profit excluding special items $ 9.9 $ Q2-07 15.2 $ Q3-07 11.6 $ Q4-07 1.9 $ Q1-08 1.7 $ Q2-08 5.2 $ Q3-08 10.7 $ Q4-08 12.5 $ Q1-09 10.8 $ Q2-09 15.7 $ Q3-09 14.1 $ Q4-09 17.2

$ $ (0.1) $ 1.0 $ 0.5 $ 1.0 $ (0.0) $ 0.2 $ (0.5) $ $

(1.9) (0.5) 0.3 $ 0.1 $ 0.5

$ $

(0.2) 0.6

$ $

(0.9) 0.5

9.8

16.1

12.1

2.9

1.7

5.4

10.2

13.7

10.9

16.3

15.0

18.6

Net sales Operating profit excluding special Items % of Net sales

182.4 5.4%

197.0 8.2%

198.1 6.1%

185.2 1.5%

198.0 0.8%

213.6 2.5%

225.6 4.5%

215.3 6.4%

215.8 5.0%

236.4 6.9%

234.9 6.4%

231.1 8.1%

March 2010 Investor Presentation

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