I N N OVAT I O N S F O R H E A LT H Y L I V I N G

JANUARY 2018
I M P O R TA N T C A U T I O N S R E G A R D I N G
F O R WA R D - L O O K I N G S TAT E M E N T S
Except for the historical information contained herein, the matters discussed in this presentation are
forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934
(the “Exchange Act”). These forward-looking statements involve certain risks and uncertainties that
could cause actual results to differ materially from those in the forward-looking statements.

Potential risks and uncertainties include, without limitation, those mentioned in our most recent Annual
Report on Form 10-K, as modified by any subsequent filings we make with the Securities and Exchange
Commission (the “SEC”) pursuant to the Securities Act of 1933 or the Exchange Act. Landec undertakes
no obligation to update or revise any forward-looking statements in order to reflect events or
circumstances that may arise after the date of this presentation.

This presentation contains summaries of financial and non-financial information that has been filed with
the SEC pursuant to the Exchange Act. You should read this presentation in conjunction with our most
recent Annual Report on Form 10-K and any subsequent Exchange Act filings.

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 2

WHO WE ARE

We’ve positioned our businesses at

the intersection of two growth sectors

HEALTHY BETTER
EATING LIVING

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 3

OUR VISION

To be the undisputed innovative leader in

the markets we serve, driving value for
consumers, customers and shareholders

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 4

OUR BUSINESSES AND OUR BRANDS

CONSUMER STRATEGIC EXPORT/ LICENSED PACKAGING

BRAND FINANCIAL TRADING TECHNOLOGY
INVESTMENT

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 5

OUTLOOK

A HEALTHY BALANCE SHEET WITH A ROIC FOCUSED CAPITAL ALLOCATION FRAMEWORK

FY17 FINANCIAL METRICS FY18 GUIDANCE FY18 DRIVERS

REVENUES REVENUES REVENUES

• E AT S M A RT S A L A D S : + 12 - 1 5%
$532 MILLION $543-553M • O OLIVE: $5-6M
• L I F EC O R E : + 8 - 1 0 %
A PIO : $472M (+2-4%) • R E L I N Q U I SH L OW - M A RG I N
O O L IV E : $1M R E V E N U ES : ( $ 2 5 - 3 0 ) M
L IFECOR E : $59M

EPS E P S (1) EPS & CASH FLOW

• T A X R AT E : 3 1 - 3 2 %
$0.38 $0.52-0.58 • W I N D S E T F A I R V A LU E : $ 3 - 4 M
(+35-55%) •
•
O P E R AT I N G C F : $30 - 3 5 M
CAPEX: $44-48M

(1) FY18 EPS guidance does not include the one-time reduction to our deferred tax liability of approximately $7-9 million as a result of the new corporate tax rates which will be recorded in the third quarter of fiscal 2018

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 6

I N V E S T I N G I N I N N O VAT I O N A N D C A PA B I L I T I E S

During FY16 and FY17 we invested $63M in

product development & capacity expansion

Apio Processing Facility (Hanover, PA) Lifecore Biomedical (Chaska, MN)

We are strategically shifting towards higher margin growth opportunities

across all of our brands and operations

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 7

A P I O FAC I L I T Y E X PA N S I O N

Hanover, PA facility expanded by over 300% in FY16 and FY17

Apio invested $39M during FY16 and FY17 into facilities and equipment

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 8

L I F E C O R E E X PA N S I O N S E T S S TA G E F O R G R O W T H

Manufacturing facility expanded by

30,000 ft2 to meet projected growth

Blue outline = FY16 Expansion

Leased a new 65,000 ft2 final

packaging and warehousing facility

Lifecore invested $24M during FY16 and FY17 into facilities and equipment

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 9

C R E AT I N G A S C A L A B L E I N F R A S T R U C T U R E
TO MAXIMIZE MARGIN

Landec Apio Processing O Olive

Corporate & Distribution
Chaska, MN
Lifecore Apio Distribution (Total 210,000 ft2)
Added 95,000 ft2 of
formulating, processing
and warehousing space Rock Tavern, NY
Petaluma, CA (Total 8,000 ft2)
Acquired O Olive
(3/1/17)
Hanover, PA
(Total 64,000 ft2)
300% Expansion
Santa Clara, CA
Bowling Green, OH
(Total 56,000 ft2)
Reconfigured to
Guadalupe, CA process salads
(Total 200,000 ft2)
Bought adjacent
7.5 acre property Rock Hill, SC
(Total 16,000 ft2)

Fiscal 2016 & 2017 Activity Vero Beach, FL

(Total 9,000 ft2)

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 10

I N N O VAT I O N L E A D I N G T O E X PA N D I N G M A R K E T S

Natural Foods
PACKAGED
FRESH VEGETABLES

TAM = $5.8B TAM = $4B

$2.0B
Salad Kits, Green Beans $3.8B
$1.9B Injectable
Specialty Olive Oils & Vinegars Drugs

$1.3B
Fresh Vegetable Bags & Trays

$600M $200M
Single-serve
Salads
Premium
HA

Source: Nielsen Answers US Total xAOC, Nielsen Homescan Panel US, Source: Pharmaceutical Contract Manufacturing: World Market Outlook 2012-2020, Visiongain
Nielsen CAN, Spins (52 Weeks Ending 5/27/17)

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 11

I N N O VAT I O N D R I V I N G G R O S S M A R G I N E X PA N S I O N

Landec is driving gross margin growth by focusing on internal innovation, entering and disrupting
new high growth market segments and shedding non-strategic lower margin business

$ in millions
Gross Profit ($)
10%
80 CAGR
83.2
60 71.0
62.6 65.4
40

20

0
FY14 12.10%
FY15 13.10%
FY16 12.0
FY17
Gross
12.1% 13.1% 15.6%
Margin

Gross Profit $ Growing at 10% CAGR Since 2014

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 12

BUSINESS FOCUS: APIO

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 13

APIO’S BUSINESSES

Branded Licensed
Packaged Fresh Packaging Cal-Ex Windset
Vegetables Technology Trading Farms

Consumer Differentiated International

Brand Solution Trading 27% equity
ownership,
7.5% annual
dividend on $22M
senior preferred
investment

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 14

N AT U R A L F O O D S T R A N S F O R M AT I O N

Phase One Two

Timeline • FY15-FY18 • Began FY17

Company • Produce company to Branded Natural Foods

• Commodity-based to Innovative leader
Positioning company

• Leverage innovation capabilities & fresh food

• Shift from a Commodity produce company to
Philosophy an Innovative mindset
supply chain to create Branded Natural
Foods company

• Develop packaged fresh vegetables products • Expand product line beyond packaged fresh
that support healthy eating trends vegetables to include plant-based natural
Strategy food products with higher margins & less
volatile raw material sourcing
• Built marketing & innovation organization
Organizational
• Reorganized sales force • Build out a Landec New Ventures Group
Changes
• Hired VP of Innovation, R&D
• Grew multi-serve salad kit business to over
$150M in revenues • Launched Eat Smart 100% Clean Label
initiative – promises all-natural ingredients
• Began right-sizing low-margin core products
Execution only
• Launched innovative Single-serve Salads
• O Olive acquisition – premier specialty olive
• New products consistently growing oil and vinegar producer
as % of mix

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 15

RECENT DEVELOPMENTS
• FY4Q17: Apio announces “100% Clean Label” initiative for all of its products
• Eat Smart® is committed to be 100% clean across all salads by the end of 2017 and all
other products by the end of 2018

• FY4Q17: Acquired O Olive Oil & Vinegar, a premier producer of California specialty olive
oils and vinegars
• First acquisition in our strategy to move into branded, natural food segment

• FY4Q17: Expanded distribution into 3,800 Walmart stores following successful tests
• FY1Q18: Gained entry into an incremental ~2400 Kroger stores with 4 Eat Smart
salads and ~177 Fresh Markets with 8 Eat Smart salads

• FY2H17: Initiated channel expansion via e-commerce and direct-to-consumer meal kit
platforms such as Amazon Fresh and Hello Fresh

• FY2Q18: Apio launches EatSmartatHome.com, an online home delivery service for

the Eat Smart portfolio of fresh products

• FY3Q18: Gained entry into 330 Target stores with 3 multi-serve salad kits and 5
single-serve products – first customer to offer entire single-serve lineup

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 16

A P I O F R E S H V E G E TA B L E K I T S , B A G S & T R AY S

Multi-serve
Salad Kits &
Blends

Expanding line in
Single-serve Jan. 2018 to include:
Value

Salad Kits Sweet Kale

Asian Sesame

Vegetable
Bags & Trays
FY17 – Apio
• Revenues – $408M
• GM – 12.5%
INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 17
FOCUS ON VALUE IS DRIVING DISTRIBUTION

• Eat Smart salad retail sales +22% in fiscal 1H18 (vs. FY18 forecast: 12-15%)
• U.S. Eat Smart multi-serve salad kits retail sales +61% (vs. category growth of 15%)

United States Canada

5.3%
Market Share(1) 40%
(+150 bps y/y)
Multi-serve Salad Kits
34%
ACV(2) 82%
(+1700 bps y/y)
Total Apio Distribution/ACV(2): ~76% of All Retail in North America
(1) Market share includes Costco; as of 10/27/17
(2) Nielsen All Commodity Volume (ACV), excludes Costco; as of 10/27/17

Customer Sample:

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 18

A P I O S A L A D K I T I N N O VAT I O N

Apio Salad Kit Revenue Growth

Revenues ($ million) 55 %
180 CAGR
160
140
120 152.5
100 154.3
80
60 130.8
40 72.5
20 26.1
0
FY13 FY14 FY15 FY16 FY17*
1 Product 4 Products 7 Products 9 Products 12 Products
*Flat sales due to Costco deciding to change to a multi-source strategy for Sweet Kale Salad

Focus on New Product Innovation & Further Penetration in US Retail

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 19

 L E V E R A G I N G A P I O F R E S H , R E F R I G E R AT E D S U P P LY C H A I N

Growth Strategy to Innovate or Acquire New Products Outside of Produce Segment

that Leverage Apio’s Infrastructure and Customer Reach

Diversified Raw Value-added Refrigerated & Customers

Materials Sourcing Processing Scalable
Infrastructure
United States 4 Processing 6 Distribution Points 76% Distribution
Mexico Facilities & of All Retail
Central America Full Fleet of in North America
South America Refrigerated Trucks

Efficient Supply Chain

2.5 days avg. inventory | 17 days avg. shelf life

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 20

O OLIVE OIL & VINEGAR

• Acquired O Olive Oil & Vinegar on March 1, 2017

• Premier producer of California specialty olive oils and vinegars
• All natural ingredients with no preservative or chemicals
• Easy-to-trace ingredients
• Certified organic options within product portfolio
• The first company in North America to crush organic citrus with California
olives
• 17 SOFI awards by the Specialty Food Association, more than any other oil
and vinegar company in the world
• Products sold in over 4,600 natural food, conventional grocery and mass retail
stores, primarily in the United States and Canada
• Significant penetration opportunity into Apio’s 19,600 doors
• Deal terms:
• $2.5 million in cash + maximum 3yr earn out of $7.5 million based on EBITDA
targets
• Financial expectations:
• FY18: grow revenue $5-6M and achieve profitability

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 21

ACQUISITION SUMMARY

• First acquisition in our strategy to move into branded, natural food segment
• Strategic considerations:
• Clear adjacency to our Eat Smart salad kit products
• Strong innovation platform for financial growth
• Solid existing management team focused on innovation
• Product considerations:
• Delivers on promise of making it easy and delicious for consumers to eat healthy
• Consistent with our 100% Clean Label Initiative with easy-to-trace ingredients
• Offers organic product options
• Financial considerations:
• Ability to leverage Apio's sales, customer service, procurement and logistics capabilities
• Higher gross margins
• Accretive within 12 months

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 22

APIO - WINDSET FARMS INVESTMENT

• A leader in hydroponic, greenhouse grown produce FY17 Income Contribution:

• Owns 248 acres (≈10.8M sq. ft.) • Increase in FMV – $0.9M
of state-of-the-art greenhouses • Dividends – $1.7M

• Markets additional 500+ acres of greenhouse grown products for other greenhouse
operators
• Landec recognizes 26.9% of quarterly fair value appreciation
• Apio receives 7.5% annual dividend on $22M senior preferred investment

Strategic investment in the future of produce

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 23

APIO - WINDSET FARMS INVESTMENT

168 acres (7.3M ft2) of greenhouses plus two processing facilities and
two water treatment plants in Santa Maria, CA
Additional 80 owned acres in production outside California

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 24

BUSINESS FOCUS: LIFECORE

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 25

LIFECORE EVOLUTION

2010 VERSUS 2017

Ophthalmic, Orthopedic, Oncology, ENT, Pulmonary,
Ophthalmic, Orthopedic
Neurology, General Surgery
Markets

Contract Development & Manufacturing Organization

Hyaluronic Acid (HA)
(CDMO) with fill-finish expertise to manufacture
manufacturer
Capabilities specialized products. Expanded HA offering.

Drugs, Medical Devices, Combination Products,

Medical Devices
Products
Biologics

114K ft2 210K ft2

2.5M syringes Capacity 9M syringes

$200M $4B
Premium HA: Premium HA: Ophthalmic, Orthopedic +
Ophthalmic, Orthopedic Total Applicable Injectable Drugs
Market

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 26

LIFECORE – BIOMEDICAL BUSINESS

Two Businesses: FY17

• Revenues – $59M
Legacy: • GM – 45.0%
A leading supplier of medical-grade, fermented
Hyaluronic Acid (HA) in ophthalmology and Revenue Streams
orthopedic markets FY17 FY18 E
Growth:
20% 20%
Fully integrated Contract Development &
Manufacturing Organization (CDMO) assisting 40%
50%
companies to bring new, FDA-approved therapies
30%
to market 40%

Aseptic Fill Fermentation Development

Platform for launching and manufacturing future medical products

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 27

LIFECORE GROWTH

$ in millions Revenue EBITDA

60 17%
59.4 CAGR
50
50.5
40
45.7 40.4
30 41.3
34.3 31%
20 32.5
20.3 CAGR
19.0
16.6
10
10.9 12.0 13.7 7.9
2.8 9.9
0
CY09 FY11 FY12 FY13 FY14 FY15 FY16 FY17

EBITDA CAGR of 31% since joining Landec

*Note: Lifecore acquired in April 2010; Landec fiscal year ends May; CY09 provided for comparability prior to Landec acquisition

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 28

L I F EC O R E C D M O S E RV I C E S & C A PA B I L I T I E S AC R O S S
PROJECT LIFE CYCLE

Project Life Cycle

Preclinical Phase I Phase II Phase III Registration Commercial

Lifecore Pre-Formulation
Formulation
CDMO
Development Scale Up
Revenue
Development Commercial
Opportunities
Manufacturing

Lifecore can address the customer’s entire product development life cycle

CDMO services leverage our HA heritage:

Focused on development projects that have difficult formulations
and/or are challenging to filter and fill

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 29

S T R AT E G I C G R O W T H P L AT F O R M

N AT U R A L
SALADS FOODS CDMO
INNOVATIVE PRODUCT DEVELOPMENT
GOAL:
GOAL: UTILIZE ROIC GOAL:
AVG . A N N UA L FRAMEWORK FOR AVG . A N N UA L
REVENUE S T R AT E G I C N E W REVENUE
GROWTH OF 10%+ PRODUCT GROWTH OF 10-15%
INVESTMENT

5-YEAR FINANCIAL GOALS

• Increasing consolidated Gross Margin from 15.5% in FY17 by 400 to 500 basis points or to approximately 20%
• Tripling fiscal 2017 Operating Income of $15.5 million
• At least doubling the FY17 Return on Invested Capital (ROIC) of 6.4%

INNOVATING DIVERSIFIED HEALTH AND WELLNESS SOLUTIONS 30

5201 Great America Parkway, Suite 232
Santa Clara, CA 95054

www.landec.com