Sales Training

October 20, 2017

Agenda

RIBUS, Inc.

The Anatomy of Rice

Product Overview

Food: Ingredients

Supplements: Excipients

Pet: Treats & Excipients

Broker Resources

Website Demonstration

New Broker Tools

Questions

10/20/20172

Rice Ingredient Business United States

• Founded in 1992 – Celebrating 25 Years!

• 50% Food, 50% Supplements

• 60% Natural, 40% Organic (volume)

10/20/20173

Steve PeircePresident

Dana Point, CA

Michelle KyleCustomer Service & Finance Manager

St. Louis, MO

Laurie WittenbrinkGlobal Marketing Manager

St. Louis, MO

Alicia KaschGlobal Account Manager

St. Louis, MO

Steve DybdalSupply Chain Manager

Missoula, MT

Karen HansenRegulatory & Document Manager

Placerville, CA

Neal HammondTechnical Director

Phoenix, AZ

Key RIBUS Locations in the USA

Footer text here4

Ingredients Distributed & Finished Products Exported

The Source of RIBUS’ Ingredients

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Anatomy of a Rice Plant

20% Hulls => Nu-FLOW® / Nu-FLAC®

10% Bran => Nu-RICE® / Nu-BAKE®

70% => White Rice

Sustainability = utilizing 100% of the

harvested rice

Manufacturing Process

10/20/20177

CALIFORNIA

Rice

Organic or Natural

HULLS BRAN

NEVADAGrinds &

Packages in totes

NEVADASterilize &

Package

MINNESOTAExtract, Spray dry

& Package

IOWA

Warehouse

Food: Ingredients (50% of Sales)

10/20/20178

#1 Sales, Natural then Organic

#2 Sales, Natural then Organic

#3 Sales, Natural then Organic

#4 Sales, Organic then Natural

Rice Hulls: Composition

Rice Hulls = Nu-FLOW®

Nu-FLOW is a natural Silicon Dioxide (SiO2) replacer and flow aid

For use in:

Spices

Dry Mixes

Beverages

Dried Fruit

Dried Honey

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Rice Hulls = Nu-FLAC®

Nu-FLAC is a natural maltodextrin replacer and flavor carrier

For use in:

Tea Bags

Carrier for Flavors/Nutrients

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Rice Bran: Composition

Source of:

Fat

Protein

Nutrients

Antioxidants

Polar & Glycolipids

Requires Stabilization

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Rice Bran = Nu-RICE® & Nu-BAKE®

Nu-RICE and Nu-BAKE are natural mono glyceride and soy lecithin replacers

For use in:

Extrusion

Emulsification• Oil in Water Systems

• High HLB

Hydration Aid

Bakery

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Product Overview

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Applications: Extrusion

Cereal – Puffs, Flakes, Shapes

Snacks – Puffs, Co-Extruded, Shapes, High Protein

Pasta – Traditional, GF, Shapes, High Protein

Protein Bars – Inclusions, Forming Extruders

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Applications: Emulsification

Sauces – Cream Sauce, Barbeque Sauce, etc.

Spreads – Margarine, Paté, Chocolate Spread

Salad Dressings – French, Ranch, Oil & Vinegar

Oil in Water Systems (Nu-RICE works well)

Water Free Systems (Mayonnaise – bad application)

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Applications: Dry Systems

Spices/Seasonings/Rubs – Anti-Caking (Nu-FLOW)

Powdered Sauce/Gravy – Hydration Aid (Nu-FLOW), Emulsifier (Nu-RICE)

Drink Mixes – Hydration Aid (Nu-FLOW or Nu-RICE)

• Best in smoothies or shake & drink products

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Applications: Bakery

Bakery

• Dry Mixes

• Fresh Bake

• Refrigerated

• Frozen

Gluten Free

Batter Systems

• Cakes, Muffins

Dough Systems

• Bread, Tortilla

Laminate

• Pastries

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Applications: Beverages

Dairy – Emulsification (Nu-RICE)

• Liquid yogurt, cream cheese, etc.

Liquid – Emulsification (Nu-RICE)

• Aseptic Milks, Soups, etc.

Tea – Flavor carrier added to tea leaves (Nu-FLAC)

10/20/201720

Applications: Commodities

Meat – Protein injected into muscle meat (Nu-RICE)

Dairy – Limited, but can be used as emulsifier in ice cream (Nu-RICE)

Nuts – Anti-caking (Nu-FLOW), nut paste (Nu-RICE)

Fruit (dry, puree, pieces) – Anti-caking (Nu-FLOW)

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Use Rates are Linear

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Little Needs

Low Dose

Large Needs

High Dose

Extrusion Aid,

Shelf Life

0.5%Emulsification,

Hydration

0.25%

Ultra Moist Cake

2.0%

Extrusion – GF Pasta

1.5%Gluten Free, Dough

Conditioner, Shelf Life

1.0%

Usage Rates

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Reminder: Formulation Modification Form

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www.ribus.com/modify-your-formula

Supplements: Excipients

10/20/201725

#1 Sales #2 Sales

#3 Sales – Fastest Growing

Rice Hulls: Composition

< 3% Protein

< 1% Fat

Carbohydrates

• Cellulose

• Crude Fiber

• Hemicellulose

Amorphous Silica

10/20/201726

RICE: Chemistry and Technology, 3rd Edition

Rice Hulls = Nu-FLOW®

Nu-FLOW is a natural flow aid and glidant

For use in:

Tablets

Capsules

Powders

1:1 replacer for SiO2 (E-551)

Suggested label declaration is “Rice Hulls” or “Rice Fiber”

Clean Label, Non-GMO, Vegan, Organic

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Rice Bran: Composition

Source of:

Fat

Protein

Nutrients

Antioxidants

Polar & Glycolipids

Requires Stabilization

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Rice Bran = Nu-RICE®

Nu-RICE functions like stearates as a light lubricant and compaction aid.

For use in:

Tablets – Filler/Lubricant

Capsules – Filler/Lubricant

Powders – Hydration Aid

2:1 or 3:1 replacer for Mg Stearate (E-470b)

Hydration aid

Suggested label declaration is “Rice Extract”

Over-mixing is not a problem

Clean Label, Non-GMO, Vegan, Organic

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Rice Extract Blend = Nu-MAG™

Nu-MAG functions as a lubricant

For use in:

Tablets

Capsules

1:1 replacer for Mg Stearate (E-470b)

Suggested label declaration is “Rice Extract Blend”

Blend of Nu-RICE, Nu-FLOW, Gum Arabic and Sunflower Oil

Clean Label, Vegan, Organic

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Product Overview

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Nu-MAG

Application

- Lubricant

Replaces

- Magnesium Stearate

For use in…

- Tablets- Capsules

Ejection Force and Hardness are Comparable

Test conducted by Natoli Institute at Long Island University

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Applications: Tablets continued

Proven to work as well as Magnesium Stearate by Natoli Institute at Long Island University due to its ejection force, powder flow / rheology, break force / hardness, friability / disintegration, blend time (compaction), and dwell time

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Nu-MAG™ is

17.5% Harder

Additional Data

10/20/2017

Applications: Capsules

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Applications: Powders

Weight Gain/Weight Loss – Hydration Aid (Nu-RICE)

Beverages – Emulsifier (Nu-RICE)

Smoothies – Hydration Aid (Nu-RICE)

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Applications: Chewable

Pressed tablets

Have flavor masking agents if needed

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Botanicals

Vitamins

Minerals

Multi’s

RIBUS Excipients: Wide Application Uses

Examples of Clean Label Capsules

Case Study

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As appeared in July 2017’s Tablets & Capsules Magazine

Usage Rates

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Reminder: RIBUS CCM Program

Once a customer commercializes 6 SKUs using RIBUS’ ingredients, they’re eligible to apply to become a RIBUS Certified Contract Manufacturer.

What is a RIBUS Certified Contract Manufacturer?• Companies that we trust know how to use our ingredients and can provide knowledge

sharing and expertise to other companies testing our products.

What does it mean to be a RIBUS Certified Contract Manufacturer?• RIBUS CCMs will be showcased in a join-press release, given a RIBUS Certified Contract

Manufacturer certificate, added to ribus.com with a short company bio and link to their website.

• CCMs will also be able to test new products before commercially launched to provide feedback.

What does it cost to be a RIBUS Certified Contract Manufacturer?

• Nothing! It is free to apply and to participate in the program.

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www.ribus.com/contract-manufacturers

Pet: Ingredients + Excipients

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Functional Food

Ingredients

Functional Supplement

Excipients

Pet Market Opportunity

Applications

Pet Food – extrusion aid, clean emulsifier

Pet Treats – extrusion texture, high protein

Pet Supplements – all human benefits, “clean label” + functionality

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Impact of Clean Label

Organic Limitations EU does NOT allow Mg Stearate or Stearic Acid USA becomes “Made With” if Magnesium Stearate is used Stearic Acid is not allowed in organics in the USA

45

Consumer

WANTS

Production

NEEDSMarketing

DESIRES

Recap: Where does RIBUS add value?

Extrusion

• Cereals, snacks, whole grain products, pasta

• Best technical + cost savings story

• Reduce breakage; increase output

• Nu-RICE® - 0.5% inclusion

Supplements

• Tablets, Capsules & Powders

• Replace Mg Stearate - Nu-MAG™ - 1:1

• Replace Silicon Dioxide - Nu-FLOW® - 1:1

Anti-Caking

• Seasonings, rubs (for meats*), dry powder blends

• Excellent flow agent, replacing silicon dioxide

• Nu-FLOW® - 1:1

Emulsification

• Salad dressings, sauces, beverages, tortillas

• Make oil and water like each other

• Nu-RICE® - 0.25% inclusion

Gluten-Free

• Bakery, cereals, pasta

• The ingredient to complete your gluten-free project

• Nu-BAKE® - 1% inclusion

Hydration Aid

• Powders going into liquid

• Reduce “floaties” and “fish-eye”

• Nu-RICE® - .25% inclusion

Visible Particulate

• Teas and herbal blends

• Plate flavors and colors

• Nu-FLAC® Tea Cut – inclusion based on amount needed for desired functionality

10/20/201746

*We now have a legal opinion on the use of Nu-FLOW and its fit into the definition of “natural”, to replace silicon dioxide

Website Reminders

Product Pages

Each product has its own product page:• www.ribus.com/Nu-Rice www.ribus.com/Nu-BAKE

• www.ribus.com/Nu-FLOW www.ribus.com/Nu-FLAC

• www.ribus.com/Nu-MAG

Each page describes what the product does in its appropriate applications, as well as case studies (where applicable)

Formulation Modification form is on each page (Trouble with your current formula?)

All product pages have specification sheets, nutrition analysis and FAQs

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http://www.ribus.com/Nu-Ricehttp://www.ribus.com/Nu-BAKEhttp://www.ribus.com/Nu-FLOWhttp://www.ribus.com/Nu-FLAChttp://www.ribus.com/Nu-MAG

Certificates & Statements

RIBUS’ common certificates and statements are available online at www.ribus.com/certificates-statements

• Certificates such as Organic, Kosher, Gluten Free, Non-GMO Project and Certificate of Origin

• Safety Data Sheets for Rice Bran Extract, Ground Rice Hulls and Nu-MAG

• Statements like Allergen, Vegan, Letter of Guarantee, Non-GMO, GRAS, Arsenic and CODEX compliance

• AAFCO approval

• Patent numbers

10/20/201749

http://www.ribus.com/certificates-statements

Broker Portal

We have a separate page for you and items you might need access to on the go: www.ribus.com/broker-resources

• The Broker Portal does require log ins. If you do not have or forgot them, ask Alicia

Success Stories are a great way to share knowledge – please submit stories online today!

Broker Training resources and presentations are available

Current price lists (US and international)

Instructions on how to create RIBUS samples (distributors only)

Nu-MAG Usage Guide – please send with all Nu-MAG sample requests!

10/20/201750

http://www.ribus.com/broker-resources

Octochem Sample Portal

US brokers are set up to request samples for customers via nexgen.chemicalsamples.com

If you need training or forgot your log-ins, please contact Alicia

Sample reports are sent to each broker on the first business day of the month

10/20/201751

New Broker Tools

Application Overview & Usage Charts

10/20/201753

Updated Broker Kits

RIBUS developing Broker & Distributor Kits for all sales reps

• Brochures (Food, Supplement) and Pet insert

• Application Overview and Usage Guide

• Frequently Asked Questions (FAQs)

• Samples of each RIBUS product and an example of its functionality

• Food = Free-flowing thanks to Nu-FLOW

• Soy Sauce + Nu-FLOW

• Prune Puree + Nu-FLOW

• Barbeque Sauce + Nu-FLOW

• Supplements: Tablets with Nu-MAG showing nearly white color

• Supplements: Capsules with Nu-MAG, Nu-RICE as filler

Goal to send to all sales reps by January 2018

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Questions?

APPENDIX

Extrusion Cost Benefit Analysis

Bulk Density

Output / Hr.

Seasoning Use

Breakage

New Crop Blending

Ingredient Cost $0.017 / lb.

- 10-15%

+ 5-10%

- 5%

- 1-2%

Not Required

--------------------

Vs. Savings from Nu-RICE ®

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Rice Crisps Cost Analysis

Before After Nu-RICE

Rice Flour $0.25 $0.25

Processing Aid 0.01 0.014

Operations 0.267 0.20

Cost / Pound $0.527 $0.464

Savings from Nu-RICE® 11.9%

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Cereal Inclusion Study (Sugar pellet)

Output #/hr

Control 1,323

GMS Processing Aid 1,764 +33%

Nu-RICE 1,874 +42%

Savings from Nu-RICE® 6%

Study was done by Extru-Tech based on a fruit type of cereal inclusion. Production time was estimated at $400/hour and the quality of the product using Nu-RICE product was the highest of the three.

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Emulsification

Rice Bran Extract + Oil + Water Lecithin + Oil + Water

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Cost Savings / Profit Potential

Extrusion• 8-10% Savings

Seasonings / Anti Caking• Match SiO2

Bakery• 8-10% Savings

Tea• 5-15% Savings

Clean Labels

Market Expansion

Organic

Problem Solving

10/20/201761

Pet Health & Nutrition

Market Opportunities:

Treats – extruded, baked, formed

Supplements – same contract manufacturers as human supplements

Benefits:

Human grade, rice based ingredients providing unique functionality with clean label declarations

Emulsification

Hydration Aid

Anti-Caking Agent

Extrusion Aid

Clean Label

AAFCO (Association of American Feed Control Officials) Approvals• Rice Bran IFN 4-03-928 (1960)• Rice Hulls IFN 1008-075 (1964)

NASC Membership (National Animal Supplement Council)

10/20/201762

Products with Novel Functionality Replacing…

Nu-FLOW®

• Anti-Caking (replacing Si02, Tri Calcium Phosphate)

Nu-FLAC®

• Flavor Carrier in Tea (replacing Maltodextrin)

Nu-RICE®

• Emulsifier (replacing Lecithin, GMS, Polysorbate 60 & 80)

Nu-BAKE®

• Emulsifier (replacing Lecithin, Mono, DATEM)

• Dough Conditioner (replacing SSL, Enzymes)

Nu-MAG™

• Clean label replacement for Magnesium Stearate

10/20/201763

“Chemistry Lab-Sounding Words”

Cross – Cut

Specific Volumes

CONTROL 1% Nu-BAKE 2% Nu-BAKE 4% Nu-BAKE

3.35 cc/g 4.30 cc/g 3.97 cc/g 3.55 cc/g

(+28.4 %) (+18.5 %) (+6.0 %)

Nu-BAKE Addition to Yeast-Raised Breads

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