Product Presentation - September 2013

Index

1. Impact of Sodium

2. Sodium Replacement Solution

3. Functionality

4. Sensory Testing Results

5. Cost Analysis

6. Development & Support

7. Contact Us

8. Contact Us

Content

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No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means – electronic, mechanical, photocopying, or otherwise – without the permission of Nu-Tek Salt Australasia. This document

provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.

1The Impact of Sodium

The Impact of Sodium

Growing health concerns over excessive sodium consumption

Source: World Health Organisation [4]

THE FACTS –

• High Sodium Dietary Intake is the leading cause of Hypertension

• Hypertension costs the world healthcare system $300 Billion per year

• Hypertension kills more than 34 Million people globally per year

• Hypertension kills more people than all Cancers, Diabetes & Malaria COMBINED

• This increases risk of Heart Attack, Stroke & Stomach Cancer

• Children are getting addicted to high sodium diets

The Impact of Sodium

• 2013 dietary guidelines recommend daily intake of 1,500mg to 2,000 mg

• Average Daily Consumption = 3,466mg daily

• Diets high in processed foods can have daily sodium intake in excess of 10,000mg

• Processed foods account for 75% of sodium intake

• 10% of Sodium Occurs Naturally in Foods

• The remaining 15% of Sodium is eaten from the Salt added at Home

Growing health concerns over excessive sodium consumption

Source: World Health Organisation [5]

2011 – 37% of U.S. consumers checked sodium content

2012 – 43% of consumers say they check products for sodium claims

2013 – 66% of U.S. consumers said sodium levels are the new top label concern

“Greater Consumer Awareness”

Consumers look for health claims on nutritional labels

Source: Nielsen Co., Harris Interactive, Health Focus International Trend Study

The Impact of Sodium

[6]

Consumers Sodium & Potassium Levels Need to Change

Usual Intake of PotassiumUsual Intake of Sodium

The adequate intake and upper limit for sodium by age, as established by the Institute of Medicine

The adequate intake for Potassium by age, as established by the Institute of Medicine

The Impact of Sodium

[7]

2Sodium Replacement Solution

Sodium Replacement Solution

[9]

2006: Discovery - Sodium Reduction Technology

Objective: Develop a Sodium Reduction Solution to Improve Global Health

– Match the TASTE & INTENSITY of Sodium Chloride

– Match the FUNCTIONALITY of Sodium Chloride

– Ensure a “CLEAN LABEL” Solution

– Be “COST EFFECTIVE”

– Comply with REGULATORY STANDARDS - GLOBALLY

2011: Commercial Product Developed – NU-TEK SALT - PATENTS issued/launched

Results: Up to 50% sodium reduction across All Major Food Categories

2014: Expand product distribution GLOBALLY

Strategic R&D Mission

Sodium Replacement Solution

[10]

Global Distribution Network Established

Sodium Replacement Solution

What is Nu-Tek Salt

[11]

• Patented technology - based “Single Crystal” solution

– Delivers the Taste and Intensity of regular salt

– Delivers up to 50% sodium reduction in key categories(Meat/Bakery/Cheese)

– No compromise in Functionality or Food Safety

– Protein Extraction (Yield, Texture, & Color)

– Water Activity (Aw) and Inhibition of Listeria

• Provides a single, cost effective “Global Solution”

• Easy to use 1:1 replacement delivers Consistent Results

• GRAS, All Natural, Kosher & Halal Certification

• Clean Label

Sodium Replacement Solution

Nu-Tek Salt is a 1:1 Salt Replacer

If Salt was your only Sodium Input and you wanted to achieve a 30% Sodium Reduction this would mean: -

Example

Current Formulation2% Salt

30% Sodium Reduced Formula1.4% Salt

0.6% Nu-Tek Potassium Chloride

How to Use Nu-Tek Salt:

[12]

INDUSTRY PRODUCT LABELLING REFORM

HEALTH STAR RATING SYSTEM

Below is an example of the Front of Pack Labelling

changes that are being proposed.

Sodium Replacement Solution

[13]

Source: AFGC April 2014

Sodium Replacement Solution

[14]

Before Inclusion of Nu-Tek Salt

After Inclusion of Nu-Tek Salt

Items Removed from Label Pork Stock

Yeast Extract Lactic Acid

Fructose Sunflower Oil

Cysteine Hydrochloride Calcium Lactate

Flavors Grill Flavor (from sunflower oil)

Rendered Pork Fat Smoke Flavor

This example is highlighting a current reduced sodium ham, Nu-Tek Salt utilized to

both improve taste and simplify label

Clean Label Solution

3Functionality

Sodium Replacement Solution

Molecular Structure

[16]

Sea Salt KCl Carrier Modifier

14510 w/RF15000 w/MD24510 w/WF

3rd Generation(Single Crystal)

2nd Generation (Agglomeration)

1st Generation (Dry Mix)

Retail Blend(AgglomeratedSingle Crystal)

Nu-Tek Salt

Sodium Replacement Solution

Product Range

[17]

PRODUCT CARRIER

Nu-Tek Salt - 14510 Rice Flour

Nu-Tek Salt - 15000 Maltodextrin

Nu-Tek Salt - 24510 Wheat Flour

Sodium Replacement Solution

Structure Facilitates Flavour Retention

Increased Surface Area and Sponge-Like Structure

[18]

NTS - 14510

1000x

Traditional KCI

1000x

Sodium Replacement Solution

• Sodium ChlorideAdvanced Formula

Nu-Tek Potassium Chloride• Potassium Chloride

Crystal Structure (Scanning Electron Microscope)

The Nu-Tek Potassium Chloride single crystal has specific microscopic morphology.

Increased surface area =

Greater Salt-LikeINTENSITY

[19]

Functionality

1. Nu-Tek Salt (NPC)

2. Regular Salt (NaCl)

3. 50/50 blend of NPC and NaCl

Study Performed at: -

University of Minnesota by

Dr. Ted Labuza Ph.D., Morse Alumni Distinguished Teaching Professor of Food

Science and Nutrition - Department of Food Science and Nutrition

The technical standard using NaCl as the substrate

Water Activity Study

[20]

Functionality

AquaSorp Moisture Sorption Isotherms at 23 degrees Celsius

Adsorption NPC, NaCl and a blend of NPC and NaCl

Water Activity Results

Nu-Tek Salt functions similar to regular saltas a PRESERVATIVE.

[21]

4Sensory Testing

Sensory Testing

1. French Fries

2. Cheddar Cheese

3. Hot Dogs

4. Sliced Deli Ham

5. Marinated Chicken Breast

6. Pepperoni

7. Gourmet Hamburger Buns

Nu-Tek Salt Sensory Testing: -

[23]

Sensory Testing

Attributes 1.5g French Fry Salt 1.5g NPC Blend (42% less sodium)

Overall Appearance 6.9 7.2

Overall Liking 7.2 7.2

Overall Flavor 7.2 7.1

Overall Texture 7.1 7.2

Overall Saltiness 6.3 6.1

French Fries Test Results

N = 100 Scores are based on a nine-point hedonic scale, where: -1 = dislike extremely, 5 = neither like nor dislike, and 9 = like extremely.

Test conducted at Food Perspectives, Minneapolis, MN

There were virtually no differences between salt and NPC Blend.

[24]

Sensory Testing

Attributes Regular Salt 33% LessSalt

NPC Blend(33% less sodium)

NPC Blend (50% less sodium)

Cheese Flavor Acceptability

4.7 3.9 4.3 4.2

Lacks Salt Flavor

17% 35% 22% 22%

“Off” Flavor 2.6 4.0 3.3 3.3

Cheddar Cheese Test Results

N = 12 Acceptability Scores are based on a 1-8 scale, where 1 = extremely unacceptable and 8 = extremely acceptableLacks Salt Flavor is the percent of respondents that indicated that the samples had insufficient salt flavorOff-Flavor scores are based on a 1-15 scale, where 0 = none, 7.5 = slight to definite, and 15 = pronounced

Tests conducted at the University of Wisconsin Center for Dairy Research

There were virtually no differences between salt and NPC Blend.

[25]

Sensory Testing

Attributes Regular Salt NPC Blend(33% less sodium)

Hot Dog/Meaty 1 9.16 10.37

Smoke 1 8.07 9.05

Saltiness 1 9.48 9.31

Off Flavor 1 4.48 4.47

Overall Flavor Acceptability 2 9.88 9.27

Overall Aftertaste Acceptability 2 9.38 9.26

Overall Sample Acceptability 2 9.30 9.34

Natural Casing Hot Dogs Test Results

N = 421 Where 0 = Lacking and 15 = Intense2 Where 0 = Very Undesirable and 15 = Very Desirable.

Test conducted at the University of Nebraska.

There were virtually no differences between salt and NPC Blend.

[26]

Sensory Testing

Attributes Regular Salt NPC Blend(33% less sodium)

Texture 9.22 9.40

Ham Flavor 7.77 8.26

Salt Level 7.35 7.61

Salt Intensity 6.87 7.06

Off Flavor 5.91 6.24

Aftertaste 8.31 8.05

Overall Acceptability 8.20 8.28

Sliced Deli Ham Test Results

N = 38Scores are based on a fifteen-point hedonic scale, where: - 1 = dislike extremely, 7.5 = neither like nor dislike, and 15 = like extremely.

Test conducted at the University of Nebraska.

There were virtually no differences between salt and NPC Blend.

[27]

Sensory Testing

Marinated Chicken Breast Test Results

N = 41 Scores are based on a fifteen-point hedonic scale, where: - 1 = dislike extremely, 7.5 = neither like nor dislike, and 15 = like extremely.

Tests conducted at the University of Georgia and the University of Nebraska

There were virtually no differences between salt and NPC Blend.

Attributes Regular Salt NPC Blend(25% less sodium)

Texture 7.64 8.16

Chicken Flavor 8.09 8.43

Salt Level 6.44 6.00

Salt Intensity 6.19 5.81

Off Flavor 4.46 4.88

Aftertaste 8.78 8.43

Overall Acceptability 8.84 8.79

[28]

Sensory Testing

Attributes Regular Salt NPC Blend(42% less sodium)

Pepperoni Flavor 9.04 9.14

Salt Level (JAR) 7.58 7.49

Saltiness 1 8.21 7.36

Off Flavor 1 3.98 4.35

Overall Flavor Acceptability 2 10.35 9.57

Overall Sample Acceptability 2 10.79 9.71

Pepperoni Test Results

N = 421 Where 0 = Lacking and 15 = Intense2 Where 0 = Very Undesirable and 15 = Very Desirable.

Test conducted at the University of Nebraska.

There were virtually no differences between salt and NPC Blend.

[29]

Sensory Testing

Attributes Regular Salt NPC Blend(30% less sodium)

Overall Appearance 11.40 11.57

Overall Texture 10.57 10.34

Bread Flavor 8.81 8.94

Saltiness 5.11 4.81

Sweetness 7.59 7.85

Off-Flavor 3.15 2.84

Overall Sample Acceptability 10.40 10.56

Gourmet Hamburger Bun Test Results

N = 48

Test conducted at the University of Nebraska.

There were virtually no differences between salt and NPC Blend.

[30]

Sensory Testing

Products Tested % Sodium Reduction Saltiness Off

FlavorOverall

AcceptabilityMeat

Flavor

French Fry Potatoes 42% ND ND ND ND

Cheddar Cheese 30% ND ND ND ND

Hot Dogs 30% ND ND ND E

Sliced Deli Ham 30% ND ND ND E

Marinated Chicken Breast 30% ND ND ND ND

Pepperoni 42% ND ND ND ND

Gourmet Hamburger Buns 30% ND ND ND ND

Sensory Testing - Overview

ND = No Significant DifferenceE = Enhanced by Nu-TekS = Significantly Different

[31]

5Cost Analysis

Cost Analysis

White Sandwich Bread20% Sodium Reduction Cost Analysis

Product Name White Sandwich Bread

Loaf Size 650g

Current Sodium Per 100g 400mg

Sodium Reduction Required 20%

New Sodium Level 320mg

Cost Impact Per Loaf $0.00741

Discounts Available for Bulk Purchases

[33]

Example Only $AUD

Cost Analysis

Ham Champagne Leg50% Sodium Reduction Cost Analysis

Product Name Ham Champagne Leg

Pack Size 100g

Current Sodium Per 100g 1050mg

Sodium Reduction Required 50%

New Sodium Level 525mg

Cost Impact Per Pack $0.007481

Discounts Available for Bulk Purchases

[34]

Example Only $AUD

Cost Analysis

Chicken Nuggets 30% Sodium Reduction Cost Analysis

Product Name Chicken Breast Nuggets

Pack Size 650g

Current Sodium Per 100g 645mg

Sodium Reduction Required 30%

New Sodium Level 457mg

Cost Impact Per Pack $0.01102

Discounts Available for Bulk Purchases

[35]

Example Only $AUD

Cost Analysis

Cheese Tasty25% Sodium Reduction Cost Analysis

Product Name Cheese Tasty

Pack Size 500g

Current Sodium Per 100g 635mg

Sodium Reduction Required 25%

New Sodium Level 476mg

Cost Impact Per Pack $0.01131

Discounts Available for Bulk Purchases

[36]

Example Only $AUD

Cost Analysis

Curry Simmer Sauce25% Sodium Reduction Cost Analysis

Product Name Curry Simmer Sauce

Pack Size 375g

Current Sodium Per 100g 840mg

Sodium Reduction Required 25%

New Sodium Level 630mg

Cost Impact Per Pack $0.01122

Discounts Available for Bulk Purchases

[37]

Example Only $AUD

Cost Analysis

Summary

Product Sodium Reduction New Sodium Level Cost Impact

Per Pack

White Sandwich Bread 650g 20% 320mg / 100g $ 0.0074

Ham Champagne Leg 100g 50% 525mg / 100g $ 0.0074

Chicken Breast Nuggets 400g 30% 457mg / 100g $ 0.0110

Cheese Tasty 500g 25% 476mg / 100g $ 0.0113

Curry Simmer Sauce 375g 25% 630mg / 100g $ 0.0112

With No Change To• Quality • Shelf life • Yield

[38]

6Development & Support

Development & Support

• Customized product samples are available

• Formulation and Technical assistance – 5 Ph.D.’s, Corporate & Research Chef’s,

Nutrition and Dietetics, Pharmacists and Dietitians

• Technical Data Sheets are available: - Allergen Statement, Heavy Metal Statement,

Ingredient Range & Labeling, MSDS, Natural Statement, Non-GMO Statement,

Nutritional Information, Halal and Kosher Certificates available upon request

We have a highly flexible platform to deliver a customized solution to our customers

Nu-Tek provides support for application development.

[40]

Development & Support

• Taste - 30-50% Sodium Reductions are achievable without compromising taste

• Quality – There is no change in product quality

• Yield – Nu-Tek KCl provides the same functionality as Salt

• Shelf Life – Nu-Tek KCl provides the same shelf life properties as Salt

• Processing – There is no processing change required in manufacturing

• Labeling – Your Retail / QSR / Foodservice product will still have a clean label

• Value – Nu-Tek KCl is the best value for money in Sodium Reduction

Conclusions

[41]

7Contact Us

Contact Us

Nu-Tek Salt AustralasiaAustralia, New Zealand & SE Asia

+61 (0)7 3836 3153

+61 (0)7 3112 4083

enquiries@nu-tekaustralasia.com.au

www.nu-tekaustralasia.com.au

PO Box 2252, Tingalpa Qld 4173, Australia

PH:

FX:

EM:

WB:

PO:

[43]

The information contained herein is correct as of the date of this document to the best of our knowledge. The recommendations or suggestions contained in this presentation are made without guarantee or representations as to results and are subject to change without notice. We suggest you evaluate the recommendations and suggestions independently