House of Cosmetics A/SAktiv

Since its inception, House of Cosmetics has developed private label beauty products for a number of Nordic brand companies. Tina Søgaard, who has been working in the industry since 2001, launched the company in 2013. Today we are producing and purchasing a broad range of products within facial care, makeup, body care, hair care, special care and certified care. The purpose has always been to develop products with natural and ecological ingredients of a quality which is of higher standard than normally seen in the private label business. We are contributing through the whole process of launching private labels from product development and production all the way to design and marketing – always respecting the wishes from our customers. The sister company Ecooking A/S constitutes 85 – 90% of the revenue of the company, leaving limited business with external customers. Our ambition is: “We aspire to be the most serious private label supplier in the beauty industry with the highest quality and the best service in all areas”. We always base our work on our values: “Transparency, Honesty, Decency”.

Development in activities and finances100% of the shares in the company were purchased by Terzo Beauty ApS on 30 March 2021. Terzo Beauty ApS is owned 70% by the Private Equity fund Bluegem and 30% by the Founder Tina Søgaard through their combined investment vehicle Terzo D HoldCo ApS. The new owner structure was decided to support and strengthen the profitable international growth. Bluegem as a fund is specialized in lifestyle product companies and have several international beauty brands in their current and past portfolio. They bring a lot of experience growing and internationalizing lifestyle brands into the Group. The net result for 2021 is a loss of tDKK 22,201 which is not satisfactory. The equity of the company is TDKK minus 16,716. The shareholder is expecting to re-establish the equity by executing a planned merger with Terzo Beauty ApS and Ecooking A/S. During summer 2021 the company implemented a new ERP system. Subsequently, the company lost visibility in the supply chain and was challenged in making the right purchase forecasts. This has led to significant growth in inventory and excess inventory by yearend, which – together with prudent examination of expiry dates and commercial viability of the inventory – has caused significant inventory writedowns at the end of 2021. Due to the decision of discontinuing the private label part of the business taken after the balance sheet date, as mentioned below, there has been further inventory writedowns in 2021 in order

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