Good natured Products : Interim Financial Report

good natured Products Inc.

(FORMERLY SOLEGEAR BIOPLASTIC TECHNOLOGIES INC.)

Management Discussion & Analysis

for the Year Ended December 31, 2018

The following management discussion and analysis ("MD&A") of financial condition and results of operations of good natured Products Inc. ("good natured™", "GDNP", "the Company", "management", "we", "us" or "our") is prepared as at April 23, 2019 and should be read in conjunction with the Company's audited consolidated financial statements and accompanying notes for the year ended December 31, 2018 which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). All dollar figures in this MD&A are in Canadian dollars unless otherwise stated.

This MD&A is intended to help the reader understand the Company, our operations, financial performance, current and future business environment and opportunities and risks facing the Company. Certain risks relating to the Company are set out explicitly in Appendix 1 of this MD&A. In addition, certain statements in this report incorporate forward looking information and readers are advised to review the cautionary note regarding such statements in Appendix 2 of this MD&A.

good natured Products Inc.

TSX-V: GDNP

company profile

With over 100 plant-based food packaging designs, 10 grades of bioplastic rollstock sheets, 30 home & business organizational products and a world class team of scientists, business builders and retailers, good natured™ is producing and distributing one of North America's widest assortments of consumer products and packaging made from the highest possible percentage of renewable, plant-based materials with no BPAs, phthalates or other chemicals of concern.

Our good natured™ customers include retailers, food producers, food packers, consumer product companies, restaurants and thermoforming companies within three key market segments - National, Regional and Small Business - all of which are supported by a combination of inside and outside sales teams.

Committed to doing what's right for the planet andright for business, good natured™ is creating better everyday products™ that combine cutting-edge bioplastic material technology and the latest sustainable design features that not only look good, but maximize shelf space, drive incremental sales, enhance logistics and boost environmental benefits.

On October 31, 2017, the Company announced that it changed its name from Solegear Bioplastic Technologies Inc. to good natured Products Inc.

The Company is listed on the TSX Venture Exchange ("TSX-V") under the symbol "GDNP".

business overview

Macro Trends

Rapidly growing segments

Bioplastics is the fastest growing segment within the plastics industry. Compound annual growth rate ("CAGR") for the segment is estimated at up to

30%1 (5 - 10x overall industry rate2). Grocery prepared food sales have grown

nearly 30% since 20083, all of which require packaging to preserve freshness and protect during transport and is driving strong demand for bioplastic based packaging.

Fragmentation caused by rapid growth

Production capacity and range of bio-based ingredients are quickly increasing, leading to a rapid channel development. The industry is characterized by multiple small entrants.

Increasing regulatory pressure

Government and corporate policies to protect human and environmental health are creating pressure to replace fossil fuel-based plastics. Bans on BPAs, phthalates and polystyrene are driving change in how everyday products are packaged and sold.

Consumer demand for better everyday products

All age groups, and especially Millennials, are more aware of the potentially negative health impacts of chemicals found in plastics and increasingly expect brands & retailers to be more socially & environmentally responsible. Traditional industrial business models are not designed to build consumer- oriented, branded products and packaging that meet the need of retailers to address consumer demand for healthier living and unique new items.

1

Global Bioplastics Market 2016-2020, Technavio, June 2016, https://www.technavio.com/report/global-bio-

chemicals-and-bio-materials-bioplastics-market?utm_source=T3&utm_medium=BW&utm_campaign=Media

2

Bioplastics and Biopolymers Market by Type, by Application, and by Geography - Global Forecast to 2021, GMI

Research, June 2017, https://www.gmiresearch.com/report/bioplastic-biopolymers-market.html3

1. Generational Study: The Evolution of Eating, NPD, June 2016,https://www.npd.com/latest-reports/fbc- consumption-evolution-of-eating/

Market Strategy

The good natured™ go-to-market approach is centered around sourcing and developing proprietary plant-based materials and transforming them into a wide range of products within two key target markets:

packaging

The global "green" packaging market is projected to grow to $274.15 billion by 2020, of which 54% was food packaging in 2015.

Global Green Packaging Market 2017-2021, Reportlinker-

Infiniti Research Limited, April 2017, Pack Expo, November

2016, PMMI Infographic,

home & business products

Home & business organization products is a $16 billion market in the US alone, of which bins, baskets & totes represents $5.6 billion.

Home Organization Market: Retail and Industry Trends and

Analysis, March 2017

The Company's product assortment of over 100 food packaging products and 30 home & business products have been categorized into Business Groups within each of the good natured™ target markets with the purpose of driving the optimal revenue and margin mix.

Market Positioning

good natured™ targets three Market Segments and tailors its product assortment and offerings accordingly:

1. National - customers with presence across multiple states, provinces, and regions in in North America
2. Regional - customers with operations in one region, states or province
3. Small Business - customers with operations in one metropolitan area.

Currently, The Company has over 171 national, regional and small business customers across 39 states and provinces.

Droplets represent Business Groups and Market Segments where the Company has active customers

and product assortments.

Intellectual Property & Sourcing

The good natured™ product development ("R&D") and sourcing teams look globally to find the latest and most advanced plant and bio-based materials. Using the principles of Green Chemistry, these ingredients are combined into unique formulations to meet specific plant-based percentage requirements, material performance requirements, and/or market pricing objectives for our products. The resulting formulations form composite intellectual property