Almond Presentation January 2013 Presented by - Bill Morecraft General Manager Blue Diamond Almonds Global Ingredients Division

Almond Overview  Growth Drivers and Historical Context  Current Year Overview  Looking Ahead

The Global Middle Class

The Global Middle Class is Evolving  The middle class is not easily defined  “Purchasing Power Parity” (PPP)  Developing Economies = US $10,000  Established Economies = US $45,000 - $75,000  We have seen very diverse results in middle class growth when looking at developing economies versus economies with an established middle class  Two trends haven driven almond industry growth in recent years  Growing Middle Class  Growth in Healthy Eating Habits Source: Euromonitor, “The Global Middle Class Sees Mixed Fortunes, October

Rapidly Growing Middle Class in World’s Two Largest Countries Number of Households (millions)

Almond Shipments to China Have Grown Nearly 1000% Millions Pounds

Almond Shipments to India Have Grown 145% Millions Pounds

2006 v 2011 Percent of Households With PPP of US $45,000 to US $75, v 2011

Evolving Eating Habits Busier Lifestyles Shorter lunch breaks / working during lunch Longer working hours Longer commutes Working Women More women in workforce and less time cooking Demand for convenience Healthy solutions Snacking Fills the Mealtime Gaps Convenience / portability Ability to eat on-the-go Increase in healthy offerings, e.g. 100 calorie pack Healthy Lifestyles Desire to combine health & convenience Lower sodium, less fat, natural ingredients, functional ingredients Helps fuel demand for Western products in emerging markets Source: Euromonitor, “Home Cooking & Eating Habits, A Global Analysis. April

Almond Industry Shipments 5-year History Millions / lbs. 18% 10% 6% 13% 14% 78% Growth Between

Export Demand Comparisons Millions / lbs. Source: Almond Board of California Position Reports. Asia does not include Australia or New Zealand. Middle East does not include Africa. Europe is inclusive of Western & Eastern Europe.

Demand Share Comparisons

Current Crop Year Overview

YTD December- Total Industry Shipments -.9% 155.8mm 255.2m 141.5m 267.7mm

2012 California Almond Crop Pounds / Billions

Short Term Outlook Growth in Shipments vs Supply Increase

Yield Trend

Trended Crop Projections

Key Factors for Future  Global demand can continue to grow, driven by:  Middle class growth in emerging economies  Changing eating habits in mature economies  Global almond production will grow slower in next 2-3 years, than in past decade  Almond pricing will reflect supply tightness for the near future

Questions?