Farm 2011 Annual Prez

FARMER BROS. CO.

2011 Annual Stockholders Meeting December 8, 2011 State of the Company Address (edited)

State of the Company Presentation by Jeffrey A. Wahba, Interim Co-Chief Executive Officer, Chief Financial Officer and Treasurer Patrick G. Criteser, Interim Co-Chief Executive Officer; President and Chief Executive Officer of Coffee Bean International, Inc.

2011 ANNUAL PRESENTATION

DECEMBER 8, 2011

Jeffrey Wahba: Welcome, everybody! Welcome to the Farmer Brothers’ Annual Meeting of Stockholders as we begin our 100th year. It's hard to imagine that we're here today to celebrate the 100th year of Farmer Brothers, which started in 1912, as well as conduct our 58th Annual Meeting of Stockholders. My name is Jeff Wahba. I am an Interim Co-CEO of the Company along with Patrick Criteser, who is sitting right here. And I will chair the meeting this morning. At this time, Patrick and I would like to discuss the Company related to our performance in FY '11 and how we see the Company going forward. I'm pleased to welcome Patrick to the podium.

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Patrick Criteser: Good Morning everyone! There's no question that the Company has struggled over the last couple of years in terms of its financial performance. As we entered calendar year 2011, the Company was facing some significant challenges continuing with the integration of the acquisition of the Sara Lee Direct Store Delivery (DSD) Coffee Business as well as the significantly increased cost of our main raw material, coffee. The Company was facing a CEO transition and other challenges at that time. And certainly the Company's financial performance was not meeting anyone's expectations, and it was necessary for us to make some difficult choices with regard to cost cutting at that period in time. The good news coming into fiscal 2011 was that the Company still had the fantastic products and services that it had had for decades and the strong customer relationships with over 60,000 customers. Most importantly,...