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DF_Investor_9-3-09v2

Driving Sustainable,
Long-Term Growth

Michael J. Mendes
President and Chief Executive Officer

September 2009

1
NASDAQ: DMND 2
Important Information

This material contains forward-looking statements, including forecasts of growth, long-


t
term fi
financial
i l goals,
l expanding
di margins,
i i d t growth
industry th and d our strategic
t t i plans,
l th t
that
involve known and unknown risks and uncertainties that may cause actual results, levels
of activity, performance or achievements to differ materially from results expressed or
implied by this material. Actual results may differ materially from those contained in the
forward-looking statements. Such risk factors include, among others: safety and quality
issues could harm our sales; fluctuations in raw material prices and availability could
harm our profitability; competition could affect our results of operations; inability to
integrate acquired entities could harm our profitability; loss of one or more major
customers could reduce revenue and profits; risk of failure to expand distribution in
existing channels or secure new distribution outlets to sell our products, and changes in
the food industry and customer preferences could reduce demand for our products.
Additional information concerning these and other risk factors is contained in the Risk
Factors section of our Annual Report on Form 10-K, on file with the Securities and
Exchange Commission, as well as factors identified in our other periodic reports filed with
the Commission from time to time.
The forward-looking statements in this material are based on our assumptions,
expectations and projections about future events as the date of this presentation. We
do not undertake any obligation to update this information to reflect events or
circumstances subsequent to its presentation.
presentation

NASDAQ: DMND 3
Branded, Consumer Packaged Food Company

Snack Culinary

Delivering Value to Retailers and Consumers

NASDAQ: DMND 4
Back-to-School “Cliff Notes”

Expanding Retail Business Fueling


Growth Story
Double-Digit Bottom-Line Growth

Snack / Culinary
Attractive Markets with Room for Growth
Focus

Scalable Platform Branded Synergistic Retail Portfolio


Branded,

Sustainable Financial On-Plan, Industry-Leading


Growth Model Earnings Performance

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Transformation to Retail

Total Sales

$ Millions
$550 - 565

$463
Snack Snack

49% Culinary + >1000 bps


>80%
Gross Margin
Culinary

Non-Retail

Non-Retail

2005 2009e

2009 Estimates Based on Guidance Provided on May 27, 2009.


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Growth Story

Sales Operating Margin EPS

$ Millions % Revenue >7 0%


>7.0% $/Share
$1.31 - $1.36
$550 - 565

$463
4 5%
4.5% $0 91
$0.91

2.8% 3.0%
$0.53
$0.47
$

N.A. N.A.

'05 '09e '05 '06 '07 '08 '09e '05 '06 '07 '08 '09e

2009 Estimates Based on Guidance Provided on May 27, 2009.


Note: See Appendix for Non-GAAP Reconciliation
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Meeting and Exceeding Expectations

Nine Consecutive Quarters of Outperformance

Earnings per Share


Actual
Guidance $0.67

$0.52
$0.62
$0.37
$0.44
$0.17 $0.16 $0.31 $0.16
$0.05 $0.07
$0.16 $0.13 $0.14
$0.03 $0.05
($0.09)
($0.16)

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
FY07 FY08 FY09

Upside $0 07
$0.07 $0 02
$0.02 $0 08
$0.08 $0 01
$0.01 $0 02
$0.02 $0 03
$0.03 $0 05
$0.05 $0 06
$0.06 $0 02
$0.02

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Expanding Retail Presence

Multiple Points of Contact with Shoppers

Snack Produce
Aisle Department
Cereal Baking
Aisle Aisle

Checkout

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Large Addressable Markets

$6.2B
U.S. Snack and Culinary Markets
Microwave Popcorn
p $0.9B

Snack Nuts $2.9B

$43B+
Total

Produce Snacks,
$1.5B
Seeds, Trail Mix

Culinary Nuts $0.9B

Sources: Euromonitor, IRI, AC Neilsen and Company Estimates


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Snack: Bringing Excitement to the Category

Innovative Products for


Snack Net Sales Growth
Healthy Active Lifestyles
Healthy,

$ Millions
$175 - 185

$89

$7

 Snack Nuts  Produce Snacks 2004 2008 2009e


 Trail Mixes  Popcorn

2009 Estimates Based on Guidance Provided on May 27, 2009.


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Culinary: History of Quality and Commitment

Established 1912
Market Share Leader
Ingredients for Nutritious Meals

$ Share
5x Larger Than
#2 Brand

30%

6%
2%

 Culinary and Baking Nuts Diamond Planters Fisher

 In-Shell
In Shell Nuts

Source: AC Nielsen 08/09


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We Build Brands

Advertising Sponsorships

M di
Media

Content Retail

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Retail Synergies Creating Scale Efficiencies

Go-to-Market Operating / Distribution


Synergies Efficiencies

 P od ction
Production
 Packaging
 Procurement
 Capacity Optimization
 Supply Chain
 Billing
 Customer Service

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Scalable Platform for Growth

Leverageable Infrastructure for


Growing Retail Opportunities

 Consolidated Broker Network


 Efficient Warehouse Delivery System Ability to Add Scale Incrementally
 Established Customer Service

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Ll d JJ. JJohnson
Lloyd h
Executive Vice President
Chief Sales Officer

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Building Retail Strength

Core Product Distribution

Keys
y to Optimal Shelf Location
Success
Effective Merchandising

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Core Product Distribution: Emerald

Core

Dry Roasted Deluxe Whole Smoked Cocoa Roast Sea Salt and
Almonds Mixed Nuts Cashews Almonds Almonds Pepper Cashews

Dryy Roasted Dryy Roasted Berryy Blend Breakfast Blend Glazed Glazed
Peanuts Peanuts L.S. Trail Mix Trail Mix Walnuts Pecans

Expanded
100 Calorie 100 Calorie
Natural Dry Roasted Apple Cinnamon Butter Toffee Tropical Blend
Almonds Almonds Walnuts n’ Almonds Walnuts Trail Mix

Smores Chocolate Cherry Regular Cashew Halves Honey Roasted


Trail Mix Trail Mix Mixed Nuts and Pieces Peanuts

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Leading Segment Growth

Core

Dry Roasted Deluxe Whole Smoked Cocoa Roast Sea Salt and
Almonds Mixed Nuts Cashews Almonds Almonds Pepper Cashews

Dryy Roasted Dryy Roasted Berryy Blend Breakfast Blend Glazed Glazed
Peanuts DryPeanuts
Roasted L.S. Trail Mix Deluxe
Trail Mix Walnuts WholePecans
Almonds Mixed Nuts Cashews

Expanded
100 Calorie 100 Calorie
Natural Dry Roasted Apple Cinnamon Butter Toffee Tropical Blend
Almonds Almonds Walnuts n’ Almonds Walnuts Trail Mix

100 Calorie Almonds Glazed Pecans

Smores Chocolate Cherry Regular Cashew Halves Honey Roasted


Trail Mix Trail Mix Mixed Nuts and Pieces Peanuts

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Emerald: Accelerated Growth and Share

$ Millions
$3.0 10
$ Change vs. Year Ago
9
$
$2.5 $ Share
Sh
8

$2.0 7
$ Change
6 $ Share
vs. $1.5
$
Year Ago 5
$1.0
4

$0.5 3

2
$0.0
1

($0.5) 0
Week Ending 27-Dec 24-Jan 21-Feb 21-Mar 18-Apr 16-May 13-Jun 11-Jul

Source: Nielsen 7 4-Week Periods Ending 7/11/09. Total US Over $2 Million Snack Shelled.
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Core Product Distribution: Pop Secret

Homestyle 100 Calorie


Snack

10 ct. 6 ct. 3 ct.


Butter 10 ct. Homestyle 10 ct.

Movie Theater 94% Fat Free


Butter

10 ct. Snack 3 ct. 6 ct. 6 ct. 3 ct.

Extra Butter Jumbo Pop

10 ct. 6 ct. 3 ct. Butter 6 ct. Movie Theater


3 ct.

Butter Flavors

Light Butter Kettle Corn Cheddar


6 ct. 3 ct.
3 ct. 3 ct. 3 ct.
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Core Product Distribution: Diamond Culinary

Peg Bag

Walnuts
Sh ll d
Shelled Ch
Chopped
d 1 lb.
lb Shelled
Sh ll d 8 oz. Chopped
Ch d 6 oz. Shelled
Sh ll d

P
Pecans
Halves Chopped 1 lb. Halves 8 oz. Chopped 6 oz. Halves

Almonds
Sliced Slivered Whole 10 oz.
oz Sliced 10 oz.
oz Slivered 6 oz.
oz Whole 1 lb.
lb Whole

Other
Pine Nuts Macadamia Hazelnut Nut Topping
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Optimal Shelf Location

Pop Secret

Emerald

Diamond
Culinary

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Effective Merchandising

% Dollar Lift from Feature and Display


Snack Nuts (Shelled) Culinary Nuts (Baking)
474 354
323

286 224
267

166

Category Private Label Planters Emerald Category Private Label Diamond

Microwave Popcorn

352

291 291
241

Source: AC Nielsen, Total US Grocery Channel,


52 Weeks Ending 7/11/09 Category Private Label Orville Pop Secret

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Driving Category Growth

12 Week Dollar Sales Change


Snack Nuts Microwave Popcorn Culinary Nuts
+56%

+6% +5% +5% +7%


0% +2%

Emerald -2% Category Pop Orville Category Diamond Category


Planters S
Secret

-49%
Planters

* Ending 8/8/09. Total U.S. Grocery Over $2M.


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St
Steve M.
M Neil
N il
Executive Vice President
Chief Financial & Administrative Officer

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Dramatic Retail Sales Growth

16 of 17 Quarters with Year-Over-Year


Year Over Year Growth

$ Millions
$452
$
$
$427
$399
$370
$345 $346 $355
$323 $333
$300
$275 $278
$263 $262
$247
$229
$189
$153

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2005 2006 2007 2008 2009

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Attractive Cash Flow Profile

Cash Generation Is Highly Accretive to Earnings

Adjusted EBITDA Net Debt


$ Millions
Million $ Millions
Million
$60-62

$201

$37
$133 $124
$29
$23 $90-95

%
5% 6% 7% 8-9%
Sales

($55)

‘06
06 ‘07
07 ‘08
08 ’09e
09e Q4 Q1 Q2 Q3 Q4e

2008 2009
2009 Estimates Based on Guidance Provided on May 27, 2009.
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Generating Shareholder Value

EVA Valuation

13.7%
Sh
Share P
Price
i PEG

$30 0.9

7 3%
7.3% $40 11
1.1

$50 1.4

$60 1.7

WACC ROIC Industry Average 1.6

WACC Includes 2.7% Small Company Size Premium

First Call Consensus: FY09: $1.38; FY10: $1.73


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Financial Summary

Fiscall Year Ended


d d July
l 31
3

$ Millions, 2008 2009e Guidance 2010e Guidance


Except per Share and %

Total Net Sales $531 $550 - 565


Snack $89 $175 - 185
R t il
Retail $370 +18
18 - 22%

Gross Margin 16.6% 22.6%

Operating Margin 4.5% > 7%

EPS $0.91 $1.31 - $1.36 $1.55 - $1.70

2009 Estimates Based on Guidance Provided on May 27, 2009.


2010 Estimates Based on Guidance Provided on March 11, 2009.
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Ahead of Initial Long-Term Targets

FY 2006 FY 2009e

$ Millions,
Except per Share and % LT Targets Actual Guidance

Top Line +8 - 10% per Year $477 $550 - 565

Snack Sales +40% per Year $41 $175 - 185

Gross Margin 20% 14.3% > 22%

Operating Margin 10% 2.8% > 7%

EPS > +15% per Year $0.46 $1.31 - 1.36

2009 Estimates Based on Guidance Provided on May 27, 2009.


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A Transformational Company

High-Growth Branded
High-
Food Company

Grower-Owned
Grower-
Walnut Cooperative

IPO

1912 2005

NASDAQ: DMND 33
Driving Sustainable,
Long-Term Growth

A
Appendix
di

34
Non-GAAP Reconciliation
2009e 2008 2007 2006 2005

GAAP Net Sales $531,492 $522,585 $477,205 $428,297

Patronage Inventory Adjustments $0 $0 $0 $34 251


$34,251

Non-GAAP Net Sales $531,492 $522,585 $477,205 $462,548

GAAP Cost of Sales $443,490 $443,945 $411,809 $191,387

Adjustment to Convert Walnut Inventories from Crop Year Pool


and NRV Accounting to Cost Basis Accounting and to Record $222,363
Estimated Walnut Cost of Goods Sold

Non-GAAP Cost of Sales $443,490 $443,945 $409,039 $413,750

GAAP Operating Expense $64,121 $66,025 $58,465 $55,341

Adjustment To Remove Restructuring and Other Costs and ($3,039) ($3,442)


Loss on Termination of Defined Benefit Plan

Non-GAAP Operating Expense $64,121 $62,986 $55,023 $55,341

GAAP Interest and Other Non-Operating Expense $1,040 $1,389 $605 $7,158

Debt Prepayment Penalty Less Sale of Emission Resource ($898)


Credits

Non-GAAP Interest and Other Non-Operating Expense $1,040 $1,389 $605 $7,158

GAAP Income Tax Expense $8,085 $2,793 ($1,010) ($8,385)

Net Income Tax Adjustments $366 $2,625 $6,276 $3,775

Non-GAAP Income Tax Expense $8,085 $5,418 $5,266 ($4,610)

GAAP Net Income $21,400 - $22,200 $14,756 $8,433 $7,336 $182,796


Non-GAAP Net Income $21,900 - $22,700 $14,756 $8,847 $7,272 ($6,366)
GAAP EPS $1.28 - $1.33 $0.91 $0.53 $0.47 nm
Non-GAAP EPS $1.31 - $1.36 $0.91 $0.56 $0.46 ($0.41)

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