Matt Briggs Ridley Aqua Feed NovacqTM Commercialization Update and Recent Results Matt Briggs Ridley Aqua Feed

Novacq™ : A revolution in shrimp production…. CSIRO patented technology Over past 10 years CSIRO developed a microbial process to produce a non-living bioactive substance from bacterial biofloc which acts as a metabolic stimulant in crustaceans This process utilizes low cost agricultural by-products and fertilizers to produce a sustainable, environmentally friendly, highly effective raw material This bioactive is harvested, dried and included in feed for shrimp and all crustacean species i.e. f/w prawns, crayfish, crawfish, lobsters and crabs, and maybe finfish?

What does Novacq™ do ? NovacqTM acts as a metabolic stimulant that increases food intake and permits the animal to utilize the feed more efficiently Because of this, the animal will grow faster (gain value &/or provide shorter culture cycle) and use less feed (improve FCR): saving money as feed cost is the major operational cost Also appears to improve disease resilience and promote growth of larvae and juveniles Can be used to help replace fishery resources in prawn diets - important for consumers, retailers and sustainability And even reduce protein levels - important to help control nutrient levels in ponds and effluent discharge and minimize prodn. costs

How much Novacq™ is required ? CSIRO have conducted a number of trials with their original product and seen direct relationship up to 12% - but usually recommend 10% inclusion level, replacing wheat flour With development of new “pure” Novacq, we have now proven that can reduce to <5% of diet for same effect Or if use same dose, promote super-fast growth or to enable use of lower quality/cheaper diets This advantageous as provides more flexibility for feed formulators and is adaptable for specific applications NovacqTM not heat labile (survives >150oC for 12 hours without loss in performance) so can be safely included with other raw materials during diet manufacture

Dose – Response curve CSIRO original NovacqTM All diets formulated to 42% Protein,7% Lipid Fishmeal and wheat gluten used as main protein sources Each treatment replicated n=5 Trial run for 35 days Survival = 84.1 ± 1.04% Experiment 2010-1 >90% Gain Gain Rate (g/wk) 50% Gain Basal performance P. monodon

Dose – Response curve All diets formulated to 47% Protein,7% Lipid Fishmeal and wheat gluten used as main protein sources Each treatment replicated n=5 Trial run for 40 days from 1g av wt. Survival = 98 ± 2% 70% Gain Using a dose-response evaluation strategy we have seen significant improvements with inclusion at even the lowest levels, but best performance at around the 10 to 15% inclusion level. 48% Gain Basal performance

Improved potency “pure” NovacqTM P. monodon Trial run at CSIRO, Bribie Island over 4 weeks with 12g shrimp 7

Data on growth, FCR, survival and resilience to AHPND challenge Latest Trial on Effects of NovacqTM on P. vannamei In June completed a 40d tank trial with Ridley “pure” NovacqTM in Fish Vet Group lab tank facilities in Chonburi, Thailand Data on growth, FCR, survival and resilience to AHPND challenge Tested high protein CSIRO lab diets in dose rate trial with diets containing 0-10% of NovacqTM against Thai commercial control feed P. vannamei

Trial parameters and results Trial used 1 g SPF P. vannamei juveniles Each diet with 5 replicate tanks (500L) containing 10 shrimp fed each diet 4 times/day (to satiation) over a 40 day period Growth rate 50% increase at 5% NovacqTM and 70% increase (with 20% decrease in FCR) at 10% NovacqTM inclusion Also performed AHPND challenge test with shrimp fed each diet – results indicated improved resilience with increasing inclusion of NovacqTM P. vannamei

Results from Feeding trial with “pure” NovacqTM P. vannamei

Results from Feeding trial with “pure” NovacqTM P. vannamei

Survival to AHPND challenge trial with “pure” NovacqTM

Effect of NovacqTM on Reducing dietary protein levels A previous trial conducted at CSIRO looked at the effects of varying levels of NovacqTM in diets for 3g juvenile P. monodon in clearwater laboratory tanks. Graded levels of protein in the diets were supplemented by either 0, 5 or 10% of CSIRO-produced NovacqTM Results after the 6 week study showed that the addition of NovacqTM improved feed intake, growth and FCR at each protein and NovacqTM inclusion level Results also showed that dietary protein could be offset through the inclusion of NovacqTM which results in cost savings and environmental improvements P. monodon

Effect of NovacqTM on growth rate at different dietary protein levels P. monodon

Effect of NovacqTM on FCR at different dietary protein levels P. monodon

Effect of NovacqTM on Reducing dietary protein levels Another recent trial conducted by CSIRO, looked at the effects of varying levels of protein and “pure” NovacqTM in diets for 5g juvenile P. monodon in clearwater laboratory tanks. A constant level of protein was supplemented by graded levels of NovacqTM, and a constant level of NovacqTM was tested at various dietary protein levels to find the optimum combination Results after the 6 week study confirmed previous results that dietary protein levels can be reduced from 48% to 36-40% in combination with 5% NovacqTM and that growth, survival and FCR rates are actually improved And that increasing levels of “pure” NovacqTM up to 7.5% in the diet increased growth, survival and FCR rates, independent of dietary protein level P. monodon

Effect of graded levels of NovacqTM at constant dietary protein level Effect of NovacqTM on weight gain at different dietary protein levels Effect of graded levels of NovacqTM at constant dietary protein level

What does Novacq™ look like ? Live under the microscope Our clear-water laboratory systems are state-of-the art facilities in Australia. Ultraclean water, heated to constant temperature at high-flow rates and oxygen ensure that it is ONLY the differences in feeds that affect our results

CSIRO Novacq China Novacq Our clear-water laboratory systems are state-of-the art facilities in Australia. Ultraclean water, heated to constant temperature at high-flow rates and oxygen ensure that it is ONLY the differences in feeds that affect our results China Novacq

What does “pure” Novacq™ look like ? On harvesting “pure” NovacqTM in GCMA ponds Our clear-water laboratory systems are state-of-the art facilities in Australia. Ultraclean water, heated to constant temperature at high-flow rates and oxygen ensure that it is ONLY the differences in feeds that affect our results Partially Dry Wet

What does “pure” Novacq™ look like ? After drying/processing “pure” NovacqTM Our clear-water laboratory systems are state-of-the art facilities in Australia. Ultraclean water, heated to constant temperature at high-flow rates and oxygen ensure that it is ONLY the differences in feeds that affect our results After drying After grinding

Novacq™ Commercialization Since 2009 Ridley has been working with CSIRO to evaluate NovacqTM and in 2013 signed an exclusive agreement to produce and market the raw material in Australia, Indonesia, Malaysia and the Philippines initially, then in 2015 added Thailand CSIRO also signed exclusive deals with Gentech group for China and Viet Uc co. for Vietnam Other countries will come online later – CSIRO currently considering Ecuador and Mexico and about to set up trials there These groups are also currently producing and marketing of NovacqTM (called OBMTM in China) To date, Ridley have refined the original production process to produce a new “pure” version on a continual basis without effluent discharge

Ridleys NovacqTM Production At GCMA produced 3 mt of “pure” NovacqTM and 15 mt of “CSIRO-style” mixed NovacqTM which was used in commercial trials last season (with GCMA and APF) Now securing second stage commercial pilot at local prawn farm where we will take experience from GCMA and scale up production to produce enough “pure” Novacq to satisfy our Australian customers (and some for Asian trials) Will start production this spring in 3 ha to produce 300 mt of pure NovacqTM for further trials, then expand up to 8 ha to produce 800 mt in 2016 (enough for entire Australian industry) Next step will be to replicate and scale up to commercial-scale farm (11 ha up to 100 ha producing 10,000 mt by 2019) in Thailand to service our Asian customers. Negotiating for site now under Thai BOI

Ridleys NovacqTM Pond Trials

Using 10% of CSIRO “mixed” NovacqTM Commercial evaluation in Australia in P. monodon farm 2011/12 5 x 1ha pond per diet Pond Data 0.27 g/d 22% 0.21 g/d Shrimp weight (g) Survival 85% Novacq 78% Control Using 10% of CSIRO “mixed” NovacqTM On-Farm Data Laboratory Data 21% Relative Gain Comm. Comm. + NovacqTM 25

Commercial evaluation in APF P. monodon farm 2014/15 Growth rate to size (g/d) Weight (g) MR (g/d) MR+ Novacq (g/d) 10 0.14 0.15 15 0.19 20 0.22 0.23 25 0.24 0.25 30 0.26 0.28

Commercial evaluation in GCMA P. monodon farm 2014/15 Conducted a trial with 4 * 1 ha ponds fed Ridley MR including 10% of CSIRO-style NovacqTM against 23 * 1 ha ponds fed the same MR diet without NovacqTM   Density pond area Feed fed Production Mean wt Survival FCR DOC Growth rate (no/m2) (ha) (mt) (mt/pond) (mt/ha) (g) (%) (days) (g/wk) Control 41.4 0.97 22.0 14.8 15.2 46.5 81% 1.49 212 1.53 Novacq 40.1 0.94 24.6 15.8 16.8 44.5 95% 1.55 213 1.46 Final production rates increased by 1.6 mt/ha due largely to increased survival rates. Economic analysis of the final farm data showed that even at a 20% increase in feed cost (due to inclusion of NovacqTM) farm profit margin increased by 6% to provide an increase in revenue of nearly $14,000/1 ha pond

Future NovacqTM plans for Ridley Aqua Feed Further refinements of pure Novacq™ production and processing technologies together with UAT Scaling up of “pure” Novacq™ production facilities in Australia and Asian territories Promotion/licensing of new technologies to current/future licensees through CSIRO Further testing of Novacq™ in pond feeding trials in both Australia & Asia (shrimp and other crustaceans) with commercial partners Introduction of product to feed mills and farmers throughout Asia Further elucidation of the mode of action of Novacq™ on growth, feeding efficiency & disease-resilience Continued exploration of novel applications for the product – i.e. in larval/brood diets & new species including finfish

Thank you