This overview includes “forward - PDF document

This overview includes “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this overview that are not statements of historical fact are forward - looking statements and are based on curr ent expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from those described in such forward - looking statements due to changes in global, regional or local political, economic, business, competit which are beyond are control . For further information regarding risks and uncertainties associated with our business, please refer to the "Management's Discussion and Analysis of Financial Condition and Re sults of Operations" and “Risk Factors” sections of our SEC filings, including, but not limited to, our Form 10 - K for t he year ended September 30, 2014 . We do not undertake any duty to update any forward - looking statements. January 2 015 Five Founding Principles Nutrition education We provide free nutrition education, every store, to empower our customers to improve their health Quality natural products Our carefully approved quality grocery products do not contain artificial flavors, colors, preservatives, sweeteners or hydrogen ated oils Affordable p ricing We control costs so we can maintain affordable prices for our customers Community We support the health and welfare of our local communities, including the environment Associates Our associates enjoy great jobs with to grow with us 23% 10% 67% Grocery Dietary Supplements Body Care, Pet Care & Other Natural Grocers by Vitamin Cottage is a rapidly expanding specialty retailer of natural and organic groceries and dietary supplements  Providing high - quality products at affordable prices, exceptional customer service, nutrition education and community outreach  N ot approv ing for sale grocery products that are known to contain artificial colors, flavors, preservatives, sweeteners or partially hydro genated or hydrogenated oils and s  In fiscal 2014, adopted industry - leading dairy standards to be largely implemented by April 2015, requiring that all dairy products be sourced from pasture - raised, non - confinemen t dairies  Enhanc ing customers' shopping experience by providing free science - based nutrition education to help customers make well - informed health and nutrition choices Currently o perate s 92 store s in 15 states, and ha s signed leas es for eight additional stores planned to open in fiscal 2015 in Arizona, Arkansas, Colorado, Kansas, Minnesota, Oklahoma and Texas T en new stores opened in each of fiscal 2011 and 2012, 13 stores opened in fiscal 2013 , 15 stores opened in fiscal 2014 , plan s to open 18 stores in fiscal 2015 T he e ntire U.S. market can support at least 1,100 Natural Grocers stores , i ncluding approximately 2 40 additional stores in the 1 7 states in which we currently operate , or have signed leases, based on research by The Buxton Company Portable store model with scalable operations infrastructure Strong n ew store economics with an approximate payb ack period of four year s and 35% cash - on - cash return by end of fifth year with total upfront capital investment of approximately $2.2 million Stores range from 5,000 to 16,0 00 selling square feet ; new stores average approximately 1 1 ,0 00 selling square feet  Approximately one quarter of a store’s  A pproximately 20,7 00 SKUs of natural and organic products per comparable store, including approximately 6,70 0 SKU s of dietary supplements Positive comparabl e store sales growth for over 50 consecutive quarters Sales have increased at a compound annual g rowth rate of 24.4 % , with new stores at 21.4 % growth from fiscal 2012 to fiscal 2014 Experienced and committed management team with proven track record Focus on i mprove d operating m argins  Cost discipline focus on store labor levels, improving supply chain and company - wide focus on performance metrics  Leverage investments in infrastructure o Implemented SAP Enterprise Resource Planning System in f iscal 2010 o Opened a n in f iscal 2012 to support growth for 5+ years o Home Office support team in place o Implemented a Human Resource Information System during fiscal 2014 to enhance the support and train ing of employees  Efficiencies of scale and increased purchasing leverage as store base grows Fiscal 2014 Sales Mix Geographic Footprint 2 This overview includes “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this overview that are not statements of historical fact are forward - looking statements and are based on curr ent expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from those described in such forward - looking statements due to changes in global, regional or local political, economic, business, competit ive, market, regulatory and other factors, many of which are beyond are control . For further information regarding risks and uncertainties associated with our business, please refer to the "Management's Discussion and Analysis of Financial Condition and Re sults of Operations" and “Risk Factors” sections of our SEC filings, including, but not limited to, our Form 10 - K for t he year ended September 30, 2014 . We do not undertake any duty to update any forward - looking statements. January 2 015 Summary Historical Financials and Other Data Source: NGVC SEC filings at www.sec.gov/ and press releases at http://investors.naturalgrocers.com/ 5.0% 10.6% 3.1% 0.2% 2.0% 7.3% 6.4% 3.4% 7.9% 11.3% 2.9% 2.1% 4.9% 11.3% 11.1% 5.6% 5.0% - 8.0% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Mature Comp Comp Comp Outlook Daily Average Comparable Store Sales 6.2% 10.6% 5.7% 3.1% 3.7% 12.9% 10.6% 10.4% 10.7% 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% Q1 Q2 Q3 Q4 FY'15 FY'14 FY'13