ZINZINOANNUAL REPORT 2018

ZINZINO.COM

WE ARE CELEBRATING - 300.000 CONDUCTED BALANCE TESTS AND OUR BEST QUARTER EVER!Congratulations and thank you for your effort, the first quarter of 2019 became our strongest quarter ever!

Zinzino increased its sales growth with 26% and the total revenue with 19% in Quarter 1 2019 compared with the first quarter previous year. I have high expecta-tions for the upcoming quarters and different initiatives and improvements that are in progress now, will show positive results. For example, the new web, payment improvements, our Global Web-shop and opening of new markets.

We’ve now tested over 300 000 people, which is a mile stone and an inspiration to keep on being the company with the largest database of fatty acid analyses. What’s even more motivating is that this is only the beginning! 99% of the population haven’t even heard of us and our great products. They are unaware of what a fantastic tool our BalanceTest is and of our revolutionary Health program. Congratulations everyone!

Regarding the new markets, I was so proud of being present at our pre-launch event in Australia. It is ex-tremely inspiring to meet new potential Partners and to see how enthusiastic everyone is when our company and our amazing products are presented. I am very grateful for the warm welcome and I thank all of you who contributed in order to make this happen. Thank you!

I am looking forward to work together and to see every market increase their numbers! Hungary, Germany and Sweden had an explosive start while Holland, Switzerland, Austria, Italy and Poland are moving up the ladder. Well done!

I have great confidence regarding USA with our new GM Art Jonak being part of our team. I see the potential in the US market, and our part in a market that desperately needs our products.

Our Ultimate Body Kit Refund Campaign continues during the second quarter and every new Partner will get the brand-new designed Ultimate Body Kit box when they receive their package. Use it for what it is worth and strive for new titles in May and June.

Keep up the good work and I will see you soon at the Leader School in Oslo!

ZINZINO NEWSLETTER

Dag Bergheim PettersenCEO

The Ultimate Kit Box

ZINZINO.COM

BUSINESS DEVELOPMENT

“THE GROWTH OF GERMANY AND HUNGARY CONTINUES”Australia is the new member of the Zinzino family! We are proud to say that as of the 4th of April, Australia opened her doors for our health product business. We will start to market and sell our BalanceOil, BalanceOil Vegan and BalanceOil AquaX. We are especially happy that we will also start selling our Skin Serum on this huge market.

We welcome our COO for the Australian market, Robert Horkings. He is based in Brisbane and has already proven to be a great addition to our team. Just like in Europe and North America, you can sign up both Customers and Partners. The delivery of our products in Australia will be done by Australia Post.

As mentioned in the previous newsletter, Italy was launched in February and we can already tell you that this market has had a great start! Well done everyone!

Our IT side is working hard on improvements of our system and new launches like; new payment gateways, redesigns and improvements on our public website. Our Global Webshop was planned to be launched in end of Q2 but first we need to launch the new public website for control, testing and new features before we can launch the Global Webshop.

That means we will, unfortunately, postpone the launch of the Global Webshop to Q3. With this launch we do expect that this will take our business to the next level, where you as a Partner will be able to sign up Customers worldwide and where our PrePaid kits will reach people from all over the world.

After that it is India’s turn to be launched. This market has high potential in giving us an exponential growth. India is a bit different from most other launches. The logistics and product registration process is more complicated than our existing markets and to launch this market as smooth as possible, we hired 2 experienced consults that will help us step by step. We will keep on working on this market for the coming months and aim to launch India during Q4.

The growth of Germany and Hungary continues and the success of these markets are spectacular, which we can see in our sales numbers. Overall, the month of March has been a great success.

Last, but not least; we got a lot of positive feedback about the Ultimate Body Kit Campaign and that is why we decided to continue with this great campaign during Q2.

Jakob SpijkerCSO & Partner Relations

The Hungarian ParlamentHungary

Gold CoastAustralia

Robert W. HorkinsCCO, Australia

ZINZINO.COM

“THE FIRST QUARTER OF 2019 BECAME THE STRONGEST QUARTER IN ZINZINO HISTORY”Strong sales growth during March; Zinzino based revenue increased 33% and the total group revenue with a total of 26% compared with the previous year. Zinzino based revenue for the first quarter of 2019 increased with 26% and the total revenue with 19% compared with the first quarter the previous year.

The revenue for Zinzino’s sales markets increased by 33% to SEK 54.1 (40.8) million due to strong growth foremost in the other countries of Europe. Higher share of internal production during the month

meant that Faun Pharma’s external sales decreased by 33% and amounted to SEK 3.3 (4.8) million. Overall, the Group increased revenues by 26% to SEK 57.3 (45.6) million compared with the previous year.

The first quarter of 2019 became the strongest quarter in Zinzino based sales so far in the company’s history; accumulated revenue January - March increased by 26% to MSEK 154.1 (122.4) compared with the previous year. Total revenue increased by 19% to MSEK 163.8 (137.5).

FINANCE

Fredrik NielsenCFO

DID YOU KNOW THAT YOUR STAMP IS HELPING KIDS IN NORWAY?Do you remember when you sent in your first hematologic test? You placed it in the envelope that came with the test, you put a stamp on it and you sent it to Vitas. Well, Vitas is receiving a lot of envelopes every day with stamps from all over the world and what do they do with these stamps? They are not to be thrown away, but they are sent to an organization called TubFrim. TubFrim is owned by Norwegian Health Association (Nasjonalforeningen for folkehelsen). They sell the stamps and the profits are used to help children and youth with disabilities, and handicaps in Norway, and to finance the efforts to eradicate tuberculosis.

Vitas estimated that the net value of Vitas contribution to be roughly NOK 100 000.- ( € 10.406 ) so far.

VITAS

ZinzinoMarketing

PostcardsVITAS

ZINZINO.COM

“THE SITE NAVIGATION IS THE DECISION MAKER WHETHER THE CUSTOMER STICKS AROUND”DominoWe just finished moving all markets to the Domino platform. Our Customers and Partners are now able to enjoy our new email design in all Zinzino supported markets and languages. Today, we are starting Dominos next phase. The first project on the list is automated Partner rank advancement (Recognition) email. It will be a multilanguage email with attached personalized pdf diploma.

New Market AustraliaDuring the first Quarter, we focused on launching Australia. When rolling out new markets, each market has their unique rules and challenges that needs to be taken care of. For Australia, for example, we have a Compensation Plan in Australian Dollars and we adjusted our website and BackOffice to view the amounts in AU$. After our launch we will keep on monitoring that everything will run smoothly.

PaymentsWe are in the final steps in the development of the new payment platform. The final testing of Credit Card payments has begun, and we expect to launch soon.

New Web ExperienceFirst off, we focus on the most important element on our website, the site navigation. No matter which page your Customer lands on, it’s our site navigation that provide a high-level overview of what we have to offer. Whether the Customer arrives with specific intent or just wants to browse, the site navigation is the decision maker whether the customer sticks around.

If our site navigation is difficult to use, unintuitive, too clumsy or too cluttered, we risk site abandonment. However, it’s not just about Look and Feel, the infor-mation architecture is critical to getting the Customer experience right. In the next phase of the project, we will continue to focus on making the complete Customer journey a great experience.

IT

Daniel Vennerstrand CTO

zinzino.com

ZINZINO.COM

“SOON WE ARE READY TO LAUNCH OUR MARKETING WEB SHOP”The key priority for Marketing during 2019 is to improve our web experience. In this Web Project, we cooperate closely with our IT-department. We are also reviewing our Communication processes towards Partners and Customers.

For our Web Project, we are currently focusing on improving navigation, web design and order process. This includes reviewing our product pages to ensure easy accessibility and searchability of relevant information. This is a project with top priority for both Marketing and IT.

Launch of our Marketing web shop. Soon we are ready to launch our Marketing web shop where you can order business cards and other marketing material which are useful for your local events. This project took a bit longer than expected due to the complexity of the local currencies, freight and payment solutions which we needed to clarify prior to an official launch.

Organisation Update. As part of our organisational update we would like to welcome our new Chief Marketing Officer, Gabriele Helmer, who started March 4th 2019.

Gabriele has been part of the Zinzino Board since May 2017 and holds a Master of Business Administration

within International Marketing and Business. Gabriele has a solid Marketing background from inter- national FMCG and Retail organisations as Specsavers, General Mills and Beiersdorf, as well such as experience as Client Director at an advertising agency in Gothenburg, Sweden.

Furthermore, we would like to welcome Alda Cripljanin, our new digital Marketing Coordinator to the team. Alda has an International Sales and Marketing Degree from the Sales and Marketing School of Gothenburg. In her latest role, she worked as Product Manager Assistant at ICA Group. Alda also has experience from Swedish e-commerce companies such as Jollyroom and Axel Arigato.

We are continuing our successful Ultimate Body Campaign, which created an amazing sales growth during Q1 and will ensure continues growth in Q2 2019.

Growing your business is going to Inspire Change in Life! To give you an extra push, we have extended the Ultimate Body Kit Campaign. Become a Partner with an Ultimate Body Kit and earn the right to a loyalty refund after 12 months.

MARKETING

Gabriele HelmerCMO

Gabriele HelmerCMO

Alda CripljaninMarketing Coordinator

ZINZINO.COM

“ZINZINO OFFERS YOU 24/7 SUPPORT!”Welcome Australia!We are so proud and excited to support the Australian market with Partner and Customer support. Since we are in different time zones, we scheduled a special shift for the Australian market, to give them the best service we can:

Telephone: +61 2 8038 5050 (Opening hours 6am - 5pm CET)Email: support.au@zinzino.com, for customers: customer.au@zinzino.com

Zinzino offers you 24/7 support!We would like to highlight a tool on our website that can be of excellent use for Partners and Customer 24/7. Our Customer Forum is basically a database with all kinds Frequently Asked Questions and Practical information.

It is available 24/7 and will save Partners and Customers time. Instead of mailing or calling us, you can find your answer on the spot. How great is that?

All you need to do is to log into our homepage zinzino.com and click on Customer Forum (see the image below).

In case you can’t find your answer, just send your question to us. By doing that you will help us to add questions and answers to Customer Forum so that more Partners and Customers can use that information.

You can even find pictures of our great Support staff in the Customer Forum.

CUSTOMER CARE

Katriin LaanepHead of Support

Customer Forumzinzino.com

ZINZINO.COM

Geir SmolanMD FAUN

Erland FrantzenBlending Operator at FAUN

FAUN IS GOING TO TRIPLE THE BLENDING CAPACITYThe Xtend sales and Viva are going through the roof! To keep up with sales, our production unit at Faun Pharma AS bought a new blender for tablet powder that will almost triple the capacity of production.

Powder blending is the first operation in the production process for Viva and Xtend tablets. The powder is then compressed into tablets before going into the packaging line.

The state-of-the-art machine arrived March 15th. Only 2 work days later, the machine was up and running thanks to Blending Supervisor Mr. Hans Knudsen and his team of experienced operators. Together with technical manager Mr. Sveinung Statle, they made a great effort to get this machine started as soon as possible.

Mr. Erland Frantzen has been a Blending Operator at Faun for almost three years and has made tons of Xtend and Viva powder. He is looking forward to the next Xtend batch that is planned for the blending process in May. Instead of almost 30 blending batches and a whole week’s work, he will make 2500 kg of tablet powder in less than 2 days. That is 3,3 million Xtend tablets or twice as many Vivas.

FAUN

ZINZINO.COM

ZinzinoRecognition

“DEAR ZINZINO FRIENDS; HELP US TO CONGRATULATE ATTILA BALÁZS!”2 titles in 2 Days? Why not?! Friends, please help us to congratulate our new BLACK AMBASSADOR; Attila Balázs from Hungary!

Attila began his journey with Zinzino only 16 months ago, after the Annual Event in Stockholm. Huge dreams, finding the right path and leading a healthy life – both mentally and physically; There you have the mindset of this incredible leader in Hungary.

Attila believes in personal growth. His continued search to help every single person he meets to grow into a “better you” is the reason why his success story continues. Taking 2 TITLES in ONE month; this achievement goes beyond all grades of respect that this person and his team deserves.

The Royal Ambassador title was his for only 2 days, then he made the decision to continue on, and he reached the title BLACK AMBASSADOR just before closing the month of March.

When you ask his team what skills makes Attila grow so fast, the following words are appearing all the time; Fantastic Leader, a real example for everyone else, driven, determined and helpful.

We think we can all agree on the fact that Attila deserves all the respect that he earns in showing how this business can be built. Building a family model business together with his spouse and showing the world that everything you aim for is possible with a clear focus!

Dear Zinzino friends; help us to congratulate Attila Balázs with this amazing and unique achievement!

RECOGNITION

Attila BalázsBlack Ambassador