Ntrz Bio Refining Presentation Aug 2012

Rice Bran Bio-Refining
August 2012

© 2012 NutraCea
All rights reserved

Mission Statement

Our mission is to profitably unlock the nutritional and economic value of rice bran,
an underutilized, renewable and sustainable by-product of the global rice milling
industry, and to help nourish a growing population expected to exceed 9 billion
people by 2050.

We will use NutraCea’s proprietary and patented bio-refining technologies and
know-how combined with alliances, joint ventures and licenses with leading
geographic and channel partners to sequentially extract, further process and
market high value core products, co-product and co-product derivatives from rice
bran to create value for our shareholders and other stakeholders.
………………………………………………………………

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2 DISCLOSURES ON Unlocking the Nutritional Value of Rice Bran
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The Business

 NutraCea is a food ingredient and health science company that has proprietary
and patented intellectual property to process and convert raw rice bran into
higher value products

 NutraCea is evolving its business model to focus on rice bran bio-refining
o Management plans to build additional bio-refineries in the US and elsewhere
globally, incorporating RBO, DRB, SRB, rice bran protein, rice bran fiber and other
rice bran derivatives

 Core products today are stabilized rice bran (SRB), rice bran oil (RBO),
defatted rice bran (DRB), and their derivative products

 Major transition over the last few years, emerging from reorganization with a
strong management team and a restructured business model

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Bio-Refining Strategy

RAW
RICE BRAN

SRB Crude Oil DRB Rice Hulls

Stage 1
DFA
Bulk Steam/

Carbon Credits
Animal
RiSolubes Lecithin Electricity
RiBalance Branded
Animal
RiFiber Waxes
Stage 2 Human
Grade Industrial
Oryzanol Ash

Health Protein Silica
Targets Refined Oil

Stage 3

Zero Carbon Footprint

Shaded areas indicate future projects

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Rice Bran Bio-Refining Model

 A bio-refinery uses sequential extraction, similar to a petroleum refinery, to produce
many high value products from an agricultural raw material
 NutraCea’s bio-refining starts with raw rice bran
 Proprietary stabilization technology produces SRB - the first product in the SRB stream
 In the parallel oil stream, raw rice bran is processed into RBO, DRB and derivative
products. RBO is a high-quality, premium healthy oil
o Priced competitively with other edible oils
o Has an established global market as part of edible oils complex
 RBO can be refined to produce additional high value compounds
o This process is referred to as Stage I bio-refining and is incorporated into our model
o Includes product such as Lecithin, Waxes, Oryzanol, Fatty Acids, Sterols, and Tocols

 DRB can be sold “as-is” for animal nutrition, compounded for branded animal feeds,
processed for human food ingredients or bio-refined using Stage II and Stage III
processes to create high value compounds like proteins and fiber

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Rice Bran: The Most Underutilized Global Food Resource

 Rice is the primary food source for Rice Bran and its many
much of world’s population valuable components
 After milling white rice, the including heart healthy
oil, fiber and premium
remaining raw rice bran quickly protein:
degrades, rendering it unfit for
human consumption  Are gluten free and hypo-
allergenic
 ~ 70 million metric tons (MMT) of
 Provide evidence-based
raw rice bran is produced globally
health benefits related to joint
as a by-product of the milling health and diabetes
process
 Are nutrient dense with high
 Raw rice bran, containing about levels of essential
65% of the nutritional value of the phytonutrients, minerals and
vitamins
rice kernel, is mostly sold as animal
feed or discarded as waste  Are a renewable and
sustainable nutrient rich food
 Rice bran is an excellent product for resource available to feed a
bio-refining due to the high levels of growing global population
essential phytonutrients, vitamins,
minerals and amino acids

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Rice Bran is Nutrient Dense

100% Daily Value 0 0 Daily Value 100%
Nutrients
White Rice Calories
Rice Bran
Carbohydrate
(1 cup) Fat (1 cup)
Protein
Fiber

Vitamin A
Vitamin C
Vitamin D
Vitamin E
Vitamin K
Thiamin 217%
Glycemic Load = 91 Riboflavin Glycemic Load = 10
Niacin 201%
(estimated) Vitamin B6 240% (estimated)
Folate
Human Vitamin B12
Cooking Oil
Food
Pantothenic Acid
Choline Human Food
Betaine
Animal Feed
Calcium 230%
Iron
122%
Magnesium
Phosphorus 198%
Potassium Other Micronutrients
Sodium 400 mg phytosterols
Zinc 165 g carotenoids
Copper
838% 290 mg ɣ-oryzanols
Manganese
Selenium 1.8 g inositol

Rice bran has enormous potential for global nutrition and health

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NutraCea’s Facilities

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Markets for NutraCea Products

SRB use in meats due to its water
binding and emulsifying abilities

SRB Derivatives is used as base
nutritional component in meal
replacement products

DRB is used in batter, breading, and
specialty food products where low fat
ingredient important

RBO is a premium cooking oil that
allows superior performance in a
variety of demanding applications

SRB is used in premium animal
feeds and pet foods

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Further Bio-Refining: Creating Product Possibilities

Product Options

Protein
Raw Rice
RiSolubles ** Bran RiBran DF
Water-soluble rice
bran RiBalance * De-fatted rice Fiber
Dextrinized rice bran
bran Tocopherols
Tocotrionols
RiFiber * SRB * Lecithin
Wax
Stabilized Rice
Rice bran fiber
bran

cRBO
RBExt-INF Crude rice rRBO
Rice bran extract
for inflammation
RBExt-GLC
Rice bran extract
bran oil
RBɣO * Refined rice
bran oil
High ɣ-oryzanol
control for glucose control rice bran fraction

* Patented *Patent Pending *Trade Secret
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Bio-Refining: Value Creation

40X

RiSolubles

Protein
Value Creation ($/lb)

30X

RiFiber

Refined RBO

Tocopherols &
Fiber

Fatty Acids

Tocotrienols
20X

Lecithin
RiBalance

Wax
10X
SRB DRB cRBO
1X
Raw Rice Bran

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The NutraCea Opportunity is Now

 Agricultural producers will be challenged to keep World Population Growth
up with growing global demand for food.
 Population growth, urbanization and improving
living standards are increasing demand for edible
oils, proteins, and other food products
 Upward pressure on commodity prices is expected
to continue
 Experts believe global protein demand will not be
met through traditional farming methods
Source: United Nations Population Division, 1993.
 Rice bran is a renewable and sustainable source of
high quality food ingredients: potentially ~11 MMT Proj. Global Meat Production
of rice bran oil; ~ 8 MMT of rice bran protein
annually

Millions of Tons
 Technologies to extract and refine value added
products are sustainable and eco-friendly
Developing Developing
 NutraCea possesses proprietary and patented IP Developed Developed
and confidential know-how around production,
logistics, and marketing of value-added rice bran 2010 2050E
Source: FAO
derivatives

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Supply of Raw Rice Bran

 NTRZ forms supply partnerships with
major rice millers to ensure long-term Rice Milled & Rice Bran (MMT)
supply of rice bran Rank Country Milled Rice % Rice Bran

1 China 139.3 31% 19.9
 Top 10 rice producing countries 2 India 95.0 21% 13.6
represent 85% of global production 3 Indonesia 37.5 8% 5.4
4 Bangladesh 32.3 7% 4.6
 Rice is harvested seasonally, but milled
5 Viet Nam 25.0 6% 3.6
throughout the year 6 Thailand 20.4 5% 2.9

 ~ 70 MMT of raw rice bran is produced 7 Myanmar 10.5 2% 1.5

globally each year as a by-product of 8 Philippines 10.4 2% 1.5
9 Brazil 8.5 2% 1.2
rice milling
10 Japan 7.7 2% 1.1

 Five new 200,000 MT plants would use 11 United States 7.4 2% 1.1

less than 2% of world’s raw rice bran All Other 57.7 13% 3.9
Worldwide 452.7 13% 60.0

Source: U.S. Dept of Agriculture
(www.indexmundi.com)

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Global Trends Point to Higher Oil Demand & Prices

Global Production & Consumption of Vegetable Oils
Demand rising: 160

 Increasing global population 140

o World population increasing by

Million Metric Tons
120

75 million each year 100
80
o Projected to add 1.1B people
60
by 2025 and reach over 9B by
40
2050
20
 In emerging economies, per capita 0
consumption of edible oil increases '00/'01 '01/'02 '02/'03 '03/'04 '04/'05 '05/'06 '06/'07 '07/'08 '08/'09 '09/'10 E '10/'11
Production Consumption
with increasing disposable income
 Use of vegetable oil for bio-fuel Historical Crude Soybean & Peanut Oil Prices
feedstocks is increasing

Supply constraints:
 Loss of farmland due to
urbanization/desertification
 Tightening water supplies for
irrigation
 Political pressure to stop destruction
of rainforests

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Defatted Rice Bran (DRB)

 DRB is a significant part of bio-refinery revenues
o ~80 % of raw rice bran input by weight
o DRB is rich in constituents with considerable economic value: protein,
inositol and fiber

 Sales of DRB as ingredient in human food applications have begun
o Inclusions in meat extension for chicken sausages and hot dogs

 Currently used primarily in animal feed
o Sold in branded products for beef cattle, dairy cows, swine, sheep, horses
o Well-accepted formulations used and sold globally
o Exported to E.U. for use as treatment for milk fever in dairy cows
o Sold in bulk to local feed lots and animal feed producers

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SRB Upside: Beneo Distribution Agreement

 Company entered into an exclusive co-branded distribution agreement with
BENEO, a world leader in functional food ingredients derived from white rice,
on September 29, 2011
o Beneo’s parent company, Südzucker Group, headquartered in Germany, is
a US$9B global food processing company with 17,000 staff located around
the world.
o NutraCea will produce SRB for exclusive distribution under RemyLiVe
brand, with NutraCea co-branded via its logos and trademarks
o BENEO will distribute co-branded SRB in over 40 countries
 BENEO will work with NutraCea to develop applications and non-exclusive
sales for its RiSolubles, RiFiber, RiBalance and DRB products
 BENEO has a 150 year history of manufacturing rice derivatives from white
rice and today distributes in over 70 countries

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Protein Extraction: Joint Development with DSM

 Company entered into a Joint Research and Development Agreement (JDA) with
DSM Innovation Center, a subsidiary of Royal DSM N.V, on August 15, 2011.

 Focus on extracting and concentrating rice bran protein and fiber for target
applications in beverages, meat extenders and other products

 DSM is a €9B global life science and material science company, with a focus on
building platforms for sustainable proteins of the future
o Addressing challenge of the growing global protein shortage and forecasted
inability to meet increasing global demand through traditional animal protein
sources

 DSM offers NutraCea:
o World leading enzyme, fermentation and ingredient technology, that
complements NutraCea’s expertise in rice bran
o Ability to fast-track product development aimed at global customer base
o Complementary technologies in process flavors and food processing

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Conclusion

 NutraCea is rapidly evolving its rice bran Bio-Refining business, with SRB,
RBO, and DRB as core products plus multiple high value products and
derivatives
 At a time when arable land and water resources are strained, NutraCea
possesses a combination of technology and know-how to convert low grade
animal feed to high value human food (“convert feed to food”)
 Irgovel bio-refinery expansion is expected to come on line in the last half of
2012; significant increase in EBITDA expected after expansion
 BENEO distribution alliance provides significant additional growth opportunities
in markets not served by our US Segment
 DSM Joint Development alliance represents an opportunity to develop new
products based on extraction and concentration rice bran protein and fiber

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Management Bios

W. John Short – President & Chief Executive Officer
Mr. Short joined NutraCea as President in July 2009. He brings over 30 years of experience in senior positions at financial
services and consumer product businesses, including over a decade at Citibank in the US, South America and Asia,
CEO/President of Esprit Asia and of Esprit Europe, and CEO of Joe Boxer (US). Mr. Short earned a BA in economics from
Dartmouth College and an MBA with honors from the Thunderbird School of Global Management.

J. Dale Belt, CPA – Chief Financial Officer
Mr. Belt, CPA, joined NutraCea in June 2010. He brings over 30 years of experience in finance and accounting including
strategic planning, due diligence, cash flow analysis, financial forecasting, and SEC reporting issues. Mr. Belt has a B.S. in
Accounting from the University of Kentucky. He is a Certified Public Accountant (Kentucky License), as well as a Certified
Turnaround Professional and Certified Insolvency & Restructuring Advisor.

David Hutchinson – Senior Vice President - Operations
Mr. Hutchinson joined NutraCea in 2008. He brings 18 years of edible oil processing, research and technical expertise to the
company, specializing in vegetable oils. Mr. Hutchinson served as an adjunct faculty professor for Phillips Community College in
Stuttgart Arkansas, teaching introductory Oilseed Processing and Technology classes. Mr. Hutchinson received his B.S. in
Biology from Nicholls State University.

Colin Garner - Senior Vice President - Sales
Mr. Garner joined NutraCea in September 2010. He brings over 20 years of experience and has held senior positions with
functional food, flavor and ingredients companies in the United States, Canada, and Europe. Mr. Garner graduated from
Swindon Technical College & Cheltenham & Gloucester University, England UK, with a post graduate degree in Business
Management Studies.

Robert Smith PhD – Senior Vice President - Business Development
Dr. Smith joined NutraCea in April of 2012. He brings over 20 years of experience in R&D and business development in the
agricultural, biotechnology and food industries. He received his B.A in Biology and PhD in Molecular Genetics and Cell Biology
from the University of Chicago.

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Contact Information

NutraCea
6720 N. Scottsdale Road
Suite 390
Scottsdale, Arizona 85253

W. John Short
President & Chief Executive Officer
480-367-5056
jshort@nutracea.com

J. Dale Belt
Chief Financial Officer
480-367-5056
dbelt@nutracea.com

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Forward Looking Statements

This presentation contains forward-looking statements including, but not limited to,
statements regarding the Company’s anticipated production capacity, revenue and
earnings. Actual results may differ from those projected due to a number of risks and
uncertainties, including, but not limited to the matters specified in the Company's filings with
the Securities and Exchange Commission. These statements are made based upon current
expectations that are subject to risk and uncertainty. The Company does not undertake to
update forward-looking statements in this document to reflect actual results, changes in
assumptions or changes in other factors affecting such forward-looking information.
Assumptions and other information that could cause results to differ from those set forth in
the forward-looking information can be found in the Company's filings with the Securities
and Exchange Commission, including the company's most recent periodic report.

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Ntrz Bio Refining Presentation Aug 2012

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