The critical Quad

K2 MK-7 is an essential vitamin that helps bind calcium into bones and directs free calcium away from the arteries.

In balance

Foods containingVitamin K2 MK-7

25%Minimum recommended intake 75µg

K2 MK-7 is deficient in most diets and needs to be supplemented.

Meat Fish Milk Cheese Butter Natto

4.5 0.9 1.140.3 15.0

900

Amount of Vitamin K2 in Various Food(in μg / 100g food)

k2 Interaction

Calcium

Bones need calciumfor growth & stability

Too much calciumleads to blockages & hardening

Calcium alone is insufficient for bone building

Vitamin D3 absorbs calcium into the blood stream

Vitamin K2 activates the proteins that bind calcium into bone

FunctionThe Bone Health Triangle®

K2 allows unlimitedopportunitiesfor convenient dose forms

K2 priceis right

K2 scienceis compelling

K2 is in demandand consumerawareness is rapidly increasing

K2 allows unlimitedopportunitiesfor convenient dose forms

K2 priceis right

K2 scienceis compelling

K2 is in demandand consumerawareness is rapidly increasing

Science Growth

PubMed results showing a spike in K2 publications in the last decade.

Vitamin K2-PubMed Results by Year

There are 20 published studies on K2 MK-7, from which experts have recommended certain structure function claims.

Science 20 clinical trials confirm k2 Effectiveness

Knapen, M.H., et al.

Vitamin K2-MK7 reduces bone loss in healthy postmenopausal women.

McFarlin, B.K. et al.

Oral intake of K2 results in increased maximum cardiac output during exercise (12% within 8 weeks).

Knapen, M.H., et al.

Vitamin K2 MK-7 improves arterial stiffness in healthy postmenopausal women.

Geleijnse, J.M., et al.

The intake of menaquinone (vitamin K2) is associated with a reduced risk of coronary heart disease.

Science 20 clinical trials confirm k2 Effectiveness

US FDA-guideline Structure Function Claims

Structure Function Claims for Bone Health Supplementation with K2 MK-7

⚫ K2 MK-7 is necessary to activate a protein that deposits calcium into the bone.

⚫ K2 MK-7 has an important function in bone development.

⚫ K2 MK-7, along with calcium and vitamin D, has an important role in bone formation.

⚫ K2 MK-7 helps maintain healthy bone mass in postmenopausal women.

⚫ K2 MK-7 helps maintain healthy bone structure in postmenopausal women.

⚫ K2 MK-7 at nutritional levels is important for maintaining healthy bone in postmenopausal women.

⚫ K2 MK-7 has a role in maintaining healthy bone mass and structure in postmenopausal women.

⚫ K2 MK-7 is important in activating a protein is necessary for bone development in children.

⚫ K2 MK-7 has an important function for bone development in children.

⚫ K2 MK-7 has an important role in bone growth in children.

Structure Function Claims for Heart Health Supplementation with K2 MK-7

⚫ K2 MK-7 helps maintain flexible arteries in postmenopausal women.

⚫ K2 MK-7 helps maintain healthy circulation in postmenopausal women.

⚫ K2 MK-7 helps maintain a healthy circulatory system.

⚫ K2 MK-7 helps maintain a healthy heart.

⚫ K2 MK-7 activates a protein that directs calcium away from the arteries.

⚫ K2 MK-7 may help trained athletes maintain maximal cardiac output during aerobic exercise.

⚫ K2 MK-7 helps trained athletes increase maximal cardiac output during aerobic exercise by 12%

Structure Function Claims for Bone and Heart Health Supplementation with K2 MK-7

⚫ K2 MK-7 helps bind/transfer/deposit calcium into bones for strong bone development and directs free calcium away from the arteries to maintain healthy circulation.

⚫ K2 MK-7 plays an important role in bone and heart health by activating key proteins that help (transfer, bind or deposit) calcium into bone and direct free calcium away from the arteries. These processes help promote strong bone development and the maintenance of a healthy circulation.

K2 allows unlimitedopportunitiesfor convenient dose forms

K2 priceis right

K2 scienceis compelling

K2 is in demandand consumerawareness is rapidly increasing

Market Channel Development

2017-18 mass market entries2019-20 mass market entriesMass markets cover: OTC, Pharmacy, Supermarkets, Drugstores, Health Food Stores

Practitioner

Direct-to-Consumer

MLM

Mass Market

Food

Today

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

1600score leading brands with K2

significantly more appealing in purchase intent and uniqueness

(Monadic Concept Screen)

ConsumerSurveys 2018/19

3000Claim K2 + D3

will be a major market supplement success

(Next® Trend Lab)

1000Report familiarity and usage

levels equal to CoQ10 and Prebiotics

(Trust Transparency Group)

K2 is on track to be the next d3

Vitamin D3 Market to Vitamin K2 Market Comparison

$- $10.00 $20.00 $30.00

Magnesium

Vitamin D

Calcium

Vitamin K2 MK-7

Fish Oil

Multivitamin

Curcumin

Prebiotics

Probiotics

CoQ10

Astaxanthin

Protein Powder

Source: Ingredient Comparative Survey 2018: A commissioned study conducted by Trust Transparency Center on behalf of the Vitamin K2 Association, May 2018

Note: Regular Users indicated using supplement at least 4 times per week

Monthly Spend K2

Average Monthly Spend of Users

Regular users

2

41

7456

69

113

6

5569

92 97

145

59

153

198

231 223

338

0

50

100

150

200

250

300

350

2010 2014 2015 2016 2017 2018

ne

w p

rod

uct

lau

nch

es

(Global, 2010 – 2018)

EU North America worldwide Lineal (worldwide)

Number of Product Launches with Vitamin K2

Source: Innova Market Insights, www.innovadatabase.comAnalysis is performed based on new product launches tracked on the Innova Database. (Geography: Global; Time Frame: 2010 – 2018YTD (November/ December); Ingredients: Vitamin K2)

Market

D3 plus K2

Calcium, D3 plus K2

Magnesium plus K2

Omega3 plus K2

Major combinations are:

Concept tests

Market forecast Intent to purchase

Vitamin K2 + D3 82 10%

Calcium (with and without D3)

78 12%

Vitamin D (concept average)

75 9%

Vitamin K1 (concept average)

70 8%

Concept tests

In the benchmark, "the Perfect Pair" outperformed the category and concept averages for well-established supplements such as calcium and D3.

Source: Custom Concept Report Prepared for Kappa Bioscience AS by New Hope Network, 2018

Vitamins K2 + D3The perfect pair

2

2230 37

46

88

4

48 5564 71

119

7

73

94

132123

245

0

50

100

150

200

250

300

2010 2014 2015 2016 2017 2018

ne

w p

rod

uct

lau

nch

es

(Global, 2010 – 2018)

EU North America worldwide Lineal (worldwide)

Number of new Vitamin K2 + D3 Combination Products

Source: Innova Market Insights, www.innovadatabase.comAnalysis is performed based on new product launches tracked on the Innova Database. (Geography: Global; Time Frame: 2010 – 2018YTD (November/ December); Ingredients: Vitamin K2 and Vitamin D3)

Market

Market cases Vitamins K2 + D3

Co-Branding

Doppelherz/Queiser CanPrev ESN Fiore Femme

Vitamin K2 + D3 D3 K2 Drops Dietary Supplement D3+K2 Duo Pack

Vitamins K2 MK-7 and D3 Vitamins K2 MK-7 and D3 Vitamins K2 MK-7 and D3 Vitamins K2 MK-7 and D3

Tablets Drops Capsules Tablets

Concept tests

Calcium, Vitamins K2 + D3The Bone Health Triangle®

In the benchmark, “the Bone Health Triangle®" outperformed the diet and nutrition average as well as the supplements average.

Source: Custom Concept Report Prepared for Kappa Bioscience AS by New Hope Network, 2019

Market forecast Intent to purchase

Calcium, Vitamins D3 and K2The Bone Building Triple Play

78 13%

6

60 60

9585

171

0

20

40

60

80

100

120

140

160

180

2010 2014 2015 2016 2017 2018

ne

w p

rod

uct

lau

nch

es

(Global, 2010 – 2018)

Number of Product Launcheswith Calcium, Vitamins K2 + D3

Market

Source: Innova Market Insights, www.innovadatabase.comAnalysis is performed based on new product launches tracked on the Innova Database. (Geography: Global; Time Frame: 2010 – 2018; Ingredients: Vitamin K2 and Vitamin D3 and Calcium)

Concept tests

Magnesium + Vitamin K2Performance Booster

In the benchmark, “the Performance Booster“, its personal relevance scoreoutperformed that of the supplements average and both the heart and inflammation and bone and joint supplement averages.

Source: Custom Concept Report Prepared for Kappa Bioscience AS by New Hope Network, 2019

Market forecast Intent to purchase

Magnesium and Vitamin K2Performance Booster

72 10%

7

75

107114

99

192

0

50

100

150

200

2010 2014 2015 2016 2017 2018

ne

w p

rod

uct

lau

nch

es

(Global, 2010 – 2018)Number of Product Launches with Magnesium + Vitamin K2

Market

Source: Innova Market Insights, www.innovadatabase.comAnalysis is performed based on new product launches tracked on the Innova Database. (Geography: Global; Time Frame: 2010 – 2018; Ingredients: Vitamin K2 and Magnesium)

Market cases MAGNESIUM + Vitamin K2

Co-Branding

Zdrovit Cefak Scitec Nutrition Canprev

Molekin D3 + K2 + MgB6 Cefavit D3 K2 Mg D3+K2+Magnesium Magnesium + VeganD3 & K2

Magnesium, D3 and K2 MK-7 Magnesium, D3 and K2 MK-7 Magnesium, D3 and K2 MK-7 Magnesium, D3 and K2 MK-7

Tablets Capsules Capsules Capsules

Concept tests

Omega 3 + Vitamin K2The Heart Health Perfect Pair

In the benchmark, “the Heart Health Perfect Pair“ outperformed all relevant benchmarks on both Market Prediction and Purchase Intent.

Source: Custom Concept Report Prepared for Kappa Bioscience AS by New Hope Network, 2019

Market forecast Intent to purchase

Omega3 and Vitamin K2The Heart Health Perfect Pair

85 14%

3 3

24

11

9

29

0

5

10

15

20

25

30

2010 2014 2015 2016 2017 2018

ne

w p

rod

uct

lau

nch

es

(Global, 2010 – 2018)

Number of Product Launches with Omega 3 + Vitamin K2

Market

Source: Innova Market Insights, www.innovadatabase.comAnalysis is performed based on new product launches tracked on the Innova Database. (Geography: Global; Time Frame: 2010 – 2018; Ingredients: Vitamin K2 and Omega)

Market cases Omega 3 + Vitamin K2

Co-Branding

VP laboratory nutrition Ritual Heart and Barbell MORE NUTRITION

Bones 2 Cardio Essential for Woman O3 D3 K2 Essentials O3-D3-K2

Omega3, D3 and K2 MK-7 Omega3, D3 and K2 MK-7 Omega3, D3 and K2 MK-7 Omega3, D3 and K2 MK-7

Capsules Capsules Capsules Capsules

Market Cases

Market Cases

K2 allows unlimitedopportunitiesfor convenient dose forms

K2 priceis right

K2 scienceis compelling

K2 is in demandand consumerawareness is rapidly increasing

High dose K neededfor growing bones

Adjust high dose Kto reduce bone loss

VITAMIN K2 MK-7 SUPPORTS STRONG BONES FOR ALL CONSUMER SEGMENTS

Vitamin K2 For all life-stages

Beneficial for all customers regardless of age, life-stage or gender.

Bone

Heart

CHILDREN & ADOLESCENTS

EARLY ADULTHOODAGE 20 - 40

ACTIVE LIFESTYLESAGE 40 - 60+

SENIOR YEARS

Vitamin K2 For all life-stages

official recommended intakes for Vitamin K

Inadequate intake of vitamins and MineralsMexico 2012

Most common micronutrients at risk of dietary deficiency:⚫ Vitamins: A, B-12, C, D and folate

⚫ Minerals: calcium, iron and zinc

Vitamin & Minerals intakes and inadequacy

⚫ For most of the vitamins, the highest prevalences of inadequate intakes were observed in adolescents and adults.

⚫ Calcium and iron were the most inadequately consumed minerals for the overall population. For calcium, the prevalence of inade-quate intakes in children aged 5–11 y, adolescents, and adults ranged from 55% to 88%, whereas in children aged 1–4 y, the prevalence was 26%.

Dietary patterns are associated with calcium and vitamin D intake in an adult Mexican population.

Source: National Health & nutrition survey 2012, ENSANUT (Encuesta Nacional de Salud y Nutrición)Salud Pública de México / vol. 59, no. 3, mayo-junio de 2017Nutr Hosp 2016;33(3):663-670

Unlimited k2 dosage opportunities

D3 plus K2

Calcium, D3 plus K2

Magnesium plus K2

Omega3 plus K2

Multivitamins

Major combinations are:

K2 works in synergy with many important vitamins & minerals for bone and heart health.

K2 allows unlimitedopportunitiesfor convenient dose forms

K2 priceis right

K2 scienceis compelling

K2 is in demandand consumerawareness is rapidly increasing

K2 allows unlimitedopportunitiesfor convenient dose forms

K2 priceis right

K2 scienceis compelling

K2 is in demandand consumerawareness is rapidly increasing

Only 6% of K2 products in combination with minerals met label claim when standard K2 MK-7 was used.

K2 Stability

Percent Label Claim: Unprotected/Natural Fermented K2 plus Calcium or Magnesium Finished Products

Tested Products: n = 94Kappa Bioscience Market Study 2017

WHY K2VITAL®?

K2VITAL® all-trans MK-7 (99.8%)

◼ Highest purity (USP grade)

◼ Highest bioavailability

◼ Best cost-in-use

K2VITAL® first microencapsulated K2 MK-7

◼ Stable with minerals and alkaline ingredients

◼ 3 years stability data in finished formulations

◼ Critical for content compliance

Double-coated Beadletwith two water-dispersible coatings

Kappa’s organic synthesisstarts with flowers

Menaquinone-7

Stability of K2VITAL® Delta is vastly superior to any other K2 MK-7

3 months recovery DELTA vs unprotected/fermented K2

100% K2VITAL®

DELTA

Fermented powder

Calcium L-Arginine

K2VITAL®

DELTA

Fermented powder

Magnesium

K2VITAL®

DELTA

Fermented powder

Krill Oil

K2VITAL®

DELTA

Fermented powder

USP requirementsk2VITAL®

all-trans Menaquinone-7

Parameter USP K2VITAL®

typical analysis USP method

trans-Menaquinone-7 NLT 96.0% 99.0%

cis-Menaquinone-7 NMT 2.0% 0.3%

Menaquinone-6 NMT 2.0% 0.0%

Residue on ignition NMT 0.2% 0.1%

Arsenic NMT 2.0 µg/g 0.05 µg/g

Cadmium NMT 1.0 µg/g 0.01 µg/g

Lead NMT 3.0 µg/g 0.03 µg/g

Mercury NMT 0.1 µg/g 0.02 µg/g

Total molds and yeast NMT 1x102 1x102

Salmonella sp. absent absent

Staphlococcus aureus absent absent

Escherichia coli absent absent

TransparencyWhat it is and why we need it

How can we help You capture the K2 upside?

⚫ K2 is an essential micronutrient

⚫ Benefits in bone and heart health well-established: 20 published studies

⚫ Market growth is exploding, K2 will be the next D3; concepts confirm appeal

⚫ K2VITAL® has significant advantages in stability, purity and price

⚫ Microencapsulated K2 stable when combined with calcium and magnesium

⚫ Synthetic patented process ensures high quality & low cost

⚫ K2VITAL® fills a gap in your nutrient portfolio

⚫ Kappa can enable you to capture K2 Market Growth with the best microencapsulated MK-7 and over 150 pre-developedK2 consumer product formulations

Sales & MarketingKappa Ingredients GmbHFriesenweg 4 | Building 13 22763 Hamburg | Germany

Headquarters & Manufacturing Kappa Bioscience ASSilurveien 2 | Building B0380 Oslo | Norway

NEW PRODUCT DEVELOPMENTSafe Iberoamericana S.A. de C.V.José María Rico 212 – 202 Col. Del ValleCiudad de México | México. C.P. 03100www.safeib.com.mx