THIS ISZINZINOZinzino AB (publ.) is a global direct sales companythat markets and sells tested dietary supplement,skin care and lifestyle products. Zinzino ownsthe Norwegian company BioActive Foods AS andthe research/production unit Faun Pharma AS.Zinzino's head office is in Gothenburg, and thecompany also has offices in Helsinki, Riga, Oslo,Florida and Adelaide. Zinzino is a limited liabilitycompany and its shares are listed on NasdaqFirst North Growth Market.A BRIEF HISTORY2007 – Zinzino AB was started. The company’sprincipal business is to own and developcompanies in direct sales and relatedactivities.2009 – Zinzino Nordic AB was acquired partlythrough a directed share issuance in kindto the owners of Zinzino Nordic AB andpartly through a subscription in the rightsissuance that Zinzino Nordic AB carriedout in December. Through this, Zinzino ABobtained control over 97% of the votes and92% of the capital of Zinzino Nordic AB.By 31 December 2017, participating interesthad increased to 93% of capital.2010 – Zinzino shares were listed for trading on theAktietorget stock market.2011 – The group was expanded with companies inEstonia and Lithuania.2012 – Companies were started in Latviaand Iceland.2013 – A company was started in the United Stateswith its headquarters in Jupiter, Florida.2014 – The group was further expanded bycompanies in Poland and the Netherlands.In the same year, Zinzino AB acquiredthe remaining shares in BioActive Foods ASand 85% of the shares in Faun Pharma AS.This was also the year when Zinzino AB waslisted for trading on Nasdaq OMX First North.2015 – A company was started in Canada and theownership share in Faun Pharma AS wasincreased to 98.8%.2016 – A subsidiary was started in Germany. Saleswere launched in all of the EU countries.2017 – Sales were launched in Switzerland.2018 – New subsidiaries in Romania and Italy.2019 – New subsidiaries in Australia and India.2020 – Acquisition of VMA Life in Singapore.2ZINZINO AB INTERIM REPORT 2020 Q1

ZINZINO INTERIM REPORT 2020 Q1JANUARY–MARCH Total revenue increased by 44% to SEK 242.1 (168.3) million Gross profit amounted to SEK 83.7 (51.4) million, including items affecting comparability regardingrecognition of sales commissions of SEK 22.2 million. Gross profit margin amounted to 34.6% (30.5%) EBITDA amounted to 26.3 (11.9) million and the EBITDA margin to 10.9% (7.0%) Adjusted EBITDA amounted to SEK 4.1 million and the adjusted EBITDA margin to 1.7% Cash flow from operating activities totalled SEK 7.3 (14.9) million Cash and cash equivalents on the balance sheet date were SEK 107.9 (55.8) million Mild impact on the business by the global Covid-19 outbreak Acquisition of VMA-Group in Singapore The proposed dividend of 0.55 0.15 SEK remains Despite the prevailing circumstances, the Board maintains the forecast that total revenues are expectedto exceed SEK 1,000 (771) million with EBITDA margin exceeding 4.5%, but notes that uncertainty hasincreased due to Covid-19 and volatile exchange rate changesThis Interim Report is in all respects a translation of the original Swedish Interim Report.In the event of any differences between this translation and the Swedish original, the latter shall prevail.3

“We are still aimingfor more than 30% growthin order to deliver salesof more than SEK 1 billionin 2020”4ZINZINO AB INTERIM REPORT 2020 Q1

THE FIRST QUARTER SHOWEDVERY STRONG GROWTH AT A FULL 44%The positive trend has continuedand we maintained our stronggrowth throughout the first quarter despite the changing world.We are satisfied with our 44%growth for the quarter, and thefact that we have succeeded inshifting our business to digitalonline platforms. We are stickingto our prognosis for the yeardespite the Covid-19 pandemic!E-TRADE & TEST-BASED NUTRITIONAL SUPPLEMENTSWe have a strong corporate culture and have already performed some of our sales from home offices and online for manyyears. We are strongly convinced that Zinzino will emerge fromthis crisis strengthened, something that time will tell. We aretaking advantage of the situation to implement better strategiesfor online sales, which will provide benefits in the future.We are aiming for growth higher than 30% and sales of morethan SEK 1 billion for 2020. At the same time, our profitabilityis set to become better in comparison with previous years.Our ambitious goals for sales and profitability are a result ofour strong growth, which means we are creating economiesof scale for the future and thus a positive effect on profitability.By changing the accounting of our distributor compensation,we registered a positive one-off effect during the quarter througha cost reduction of SEK 22.2 million before taxes. This improvedour gross profit margin to 34.6% (30.5%).We are continuing to invest in technology, and next quarter weare launching a completely new test portal, which is importantfor our company. This portal will increase understanding of ourproducts, increase customer satisfaction and will hopefullyincrease sales as well.ZINZINO & COVID-19I can truly say that I am proud of how all our employees, oursuppliers, our manufacturing facility and all our distributors outthere have been able to adapt to and handle the very unexpectedand chaotic situation we have landed in as a result of the Covid-19pandemic.We’ve implemented responsible precautionary measures for allour employees and most of them are working from home untilthe authorities advise otherwise and the pandemic fades away.Most of our operations are online and most of our work can beperformed without travel. We are adapting and changing all ouractivities with online sales and customers in order to preservegrowth. We are particularly careful with our own manufacturingfacility, and have filled our warehouses with goods so that ourcustomers and distributors can order their products. We havedone everything in our power to protect our employees, customers, distributors and our business from the pandemic. We haveset up a new warehouse for Europe in Poland in record time,and thus increased our capacity by 50% in order to minimiserisks and increase the speed of our deliveries out to customers.The virus will affect us in different ways, but as I write this, ourgrowth is continuing to expand despite the pandemic and all ofthe restrictions that have been added by different authorities.We are carefully following the news and decisions made by theauthorities in order to protect ourselves and to minimise risks.At the same time, we are planning for the worst and hoping forthe best.We are a Scandinavian test-based nutritional supplement company that is developing at the same pace as interest in healthand technology is increasing around the world. We are buildinga strong brand and developing high-quality products of whichcustomers can test the effectiveness before and after. This givesus a strong belief in the future, because many customers aresearching for good sustainable solutions in the area of preventivehealthcare in order to achieve better general health. Good healthis a large global trend that is on the rise.NEW MARKETSWe are making a large investment in new markets and have highconfidence in the Asian market. One step in that direction is ouracquisition of VMA Life, a company operating in Hong Kong,Thailand, Taiwan, Singapore and Malaysia. We are now workingto integrate the company into Zinzino and expect to start upsales of our Zinzino products through VMA Life’s network withinthree to six months. We will be establishing ourselves in largemarkets such as Russia, Ukraine, South Africa and India withinthe next 18 months.Throughout 2019 and the beginning of 2020, we have increasedour efforts in marketing significantly, which has generated morerapid growth in sales. In this way, we are also attracting moreattention from new distributors who want to link up with Zinzino.With increased revenues and greater financial muscle, we havebeen able to hire several talented employees who can help usincrease the growth and pace of product development. We havean extremely scalable business model and will work hardtowards a profitable growth journey over the next few years.Dag Bergheim Pettersen, CEO ZinzinoInspire Change in Life5


FINANCIAL SUMMARYKey group figures(SEK MILLION)Jan–Mar 2020Jan–Mar 2019Jan–Dec 2019Total revenue242.1168.3770.6Net turnover226.9156.2710.8Sales growth44%22%34%Gross profit83.7*51.4232.334.6%30.5%30.1%Operating profit before depreciation and amortisation26.3*11.945.4Operating margin before depreciation and amortisation10.9%7.0%5.9%4.111.945.4Adjusted operated margin before depreciation and amortisation1,7%7.0%5.9%Operating profit21.5*7.614.8Operating margin8.9%4.5%1.9%Profit/loss before tax21.37.413.9Net profit16.85.611.3Net margin6.9%3.4%1.5%Net earnings per share after tax beforedilution, SEK0.490.170.33Net earnings per share after tax atfull dilution, SEK0.460.170.32Cash flow from operating .581.791.24Number of issued shares on average for the period32,580,02532,580,02532,580,025Average number of issued shares for the period with full dilution34,694,95032,580,02532,846,326Gross profit marginAdjusted operating profit before depreciation and amortisationCash and cash equivalentsEquity/assets ratioEquity per share before dilution, SEK* In the period Jan-Mar, gross profit, operating profit before and after depreciation is affected by SEK 22.2 millionthrough changed accounting as a result of changed conditions for distributor compensation.Net profit was affected by SEK 17.4 million.ZINZINO’S OUTLOOK AND FINANCIAL GOALS FOR 2020Despite the prevailing circumstances, the Board maintains the forecast that total revenues are expectedto exceed SEK 1,000 (771) million with EBITDA margin exceeding 4.5%, but notes that uncertainty hasincreased due to Covid-19 and volatile exchange rate changesThe average growth in sales at Zinzino for the period 2020–2022 will be a minimum of 20% and operatingmargin before depreciation/amortisation will increase to 5%. The dividend policy will be at least 50% ofthe free cash flow, as long as liquidity and the equity/assets ratio permit.7

SIGNIFICANT EVENTS DURING ANDAF TER THE FIRST QUARTER OF 2020Tserkov Spasa na Krovi - St. Petersburg, RussiaMILD IMPACT OF COVID-19The outbreak of Covid-19 was classified as a pandemic by theWHO on 11 March 2020. In the resulting situation, Zinzinoprioritised the health of its employees and took measures tolimit the spread according to instructions from the relevantauthorities. In addition, Zinzino has prepared and taken measuresto secure critical processes for the business, such as the handlingof orders, support and commission payments to distributors inthe event of any closure of the head office.Due to regulatory measures regarding working hours from theFrench government, delivery capacity from the French warehousein Faberville has decreased. In addition, transport has beendelayed following increased border checks in Europe. For thisreason, Zinzino has moved all logistics related to Germany,Poland and Hungary to the warehouse in Trollhättan, which hasbeen operating with normal delivery capacity. In addition,Zinzino is working to establish an additional external warehousein Poland to further shorten lead times in central and easternEurope.LAUNCH OF ALL-NATURAL PRODUCTSDuring the first quarter, Zinzino started the process of launchingits all-natural products BalanceOil , Protect and Xtend . At thesame time, a new packaging design was introduced that willcreate a premium feel and stands for Scandinavian minimalism.In addition, new product sheets with an updated design havebeen published with the aim of giving customers and distributorsa deeper knowledge of the products’ content. The launch will beongoing during 2020.8ZINZINO AB INTERIM REPORT 2020 Q1CONTINUED EXPANSIONDuring the quarter, Zinzino continued to work on establishingitself in the UK, India, Russia, South Africa, Greece, Cyprus andthe Asian markets through the acquisition of VMA Life. Followingmultiple implemented establishment processes in recent years,the company has learned the importance of ensuring thoroughpreparatory work and adapting to the local conditions in eachmarket. Zinzino will continue to develop “best practices” throughthe experiences the company has during the establishmentprocesses to adapt its operations in order to achieve rapid growthin the new markets in 2020. During the quarter, establishmentwork has intensified in the UK and Zinzino intends to completethe process of the transition to a local company, adaptation ofmarketing materials and local payment solutions in May.ACQUISITION OF VMA LIFE IN SINGAPOREIn early April 2020, Zinzino signed the final acquisition agreementwith VMA Life, a direct sales company in the field of health andbeauty. VMA operates in Malaysia, Thailand, Taiwan, Hong Kongand Singapore. In 2019, VMA Life had sales of approximatelyUSD 1.8 million. Through the collaboration, Zinzino’s productsand business model are expected to increase sales as earlyas 2020. According to signed agreement, Zinzino shall, uponentry, pay a fixed purchase price of USD 0.4 million divided by50% cash and 50% newly issued Zinzino shares. Then contingentadditional consideration will be based on sales developmentsduring 2020–2023. The total additional consideration amountsto a maximum of USD 1.15 million, divided between 50% cashand 50% shares. The acquisition is financed with own cash andthe additional consideration will be generated through profitsfrom VMA Life.

LAUNCH OF NEW ZINZINO APPDuring the first quarter, Zinzino launched a brand-newapplication that is available for download via Apple’s App Storeand Google Play. The application is a distributor prospecting toolthat can be used to easily connect with potential distributorsor customers.NEWS EMAILS TO CUST