GARIA ‘TEES OFF’ FOR THE NEXT ROUND WITH NEW AMERICAN OWNER The sale of Denmark’s biggest car manufacturer After more than 15 years of ownership, Lars Larsen Group parted with golf and utility ve- hicle manufacturer, Garia A/S, as the company was sold to US-based Club Car LLC in 2022. What started as a dream of creating a one-of-a-kind, high-end golf car, became the biggest Danish car manufacturer ever, and now the dream continues on a global scale together with the world’s biggest golf and utility vehicles manufacturer. That is the summarised version of the Garia tale. But there is much more to it: One vision Garia was founded in 2005 by Søren Bak and Anders Lynge with one clear vision: To create the ultimate golf car. The keyword here being ‘car’, not ‘cart’, as the ambition was to introduce a paradigm shift for golf and leisure vehicles by producing the world’s first premium models in their segments. In 2006, Garia became part of Lars Larsen Group. The owner-family, represented by JYSK founder Lars Larsen and Chairman of the Board of Lars Larsen Group, Jacob Brunsborg, noticed the potential in the strong entrepreneurial spirit of the Garia-team and the gap in the market for golf cars. In 2008, Jakob V. Holstein, CEO of Garia since 2013, joined the team as well. Together, they set out to realise the original vision. This turned out to be an ambitious and challenging task. Because developing the ultimate golf and lei- sure car is cost extensive. From the beginning, Garia aimed for a premium product, not cutting any cor- ners but paying attention to every minor detail. This would differentiate the brand in the market, appeal to the right target group, and finally allow custom- ers to custom design their own unique golf car. In addition, providing all the necessary approvals to become street-legal was a resource demanding in- vestment which required specialist knowledge. However, the challenges never overshadowed the strong faith in the company’s potential and the ef- forts of Garia did not go unnoticed. At the Red Dot Design Awards in 2011, Garia was awarded with an ’Honourable Mention’ among more than 4,400 en- tries from approximately 1,700 companies around the world. It became increasingly clear that Garia had something unique to offer. Expanding the business In 2014, with almost ten years of experience in the luxury electric vehicle market, Garia embarked on an entirely new journey; developing the Garia Utility. This vehicle targeted another gap in the market. As a compact electric utility vehicle that combined relia- bility, ergonomics, and zero emissions with comfort, functionality, and thoughtful design, it was ideal for private and public organisations with smaller cargo and transportation needs. Thus, the Swedish postal service, PostNord Sverige, became Garia customers in 2017 when ordering a fleet of 600 utility vehicles that are used to deliver mail to the Swedes. While accelerating the utility-aspect of the business, the golf and leisure car production did not slow down one bit. In 2016, Garia was once again re- cognised for its high-quality cars when the compa- ny entered a Mercedes-Benz design competition for the rights to create a luxurious golf car in cooper- ation with the renowned car manufacturer. Garia won and the ‘SuperSport’ golf car was born. Increasing momentum Garia continued to experience an increasing de- mand for practical electric utility vehicles, due to the need for more sustainable and green mobili- ty solutions worldwide. So, in 2021, the company took an additional step to ensure further growth in the utility segment by acquiring the Polish com- petitor, Melex. “Garia was founded with the ambition of producing the world’s best golf and leisure vehicles and that re- mains our target. But with the increasing awareness of green mobility, an opportunity to use our skills and knowhow in other segments has emerged, and we obviously need to act on that,” Jakob V. Holstein said in connection with the acquisition of Melex. Since 1970, Melex had been manufacturing elec- tric golf and lightweight utility vehicles and with the acquisition, Garia strengthened its market po- sition and became the second largest company in Europe within production and sale of lightweight utility vehicles. For the Garia-team and Lars Larsen Group it was ful- filling to experience the company reach this mile- stone and a strong position in the market. As Jacob Brunsborg, who had been part of the journey from the beginning, put it: PAGE 36

”Anyone who has followed the development of Garia knows that it has been a challenging journey. But after a rough start, Garia has had double-digit growth rates since 2014 and today the company is not only a profitable business but also Denmark’s biggest car manufacturer - ever.” The vision goes global Though Garia had reached a point of profitability, the company had also come to a crossroads, if it were to continue its development on a global “It is also with a certain sadness that we are selling Garia now. But we need to act as good tradesmen and the offer from Club Car is the right thing for both Lars Larsen Group and Garia at this time. Club Car provides Garia with the opportunity to take it to the next level and in the long-term perspective they are the right owner.” The acquisition was finalised in June 2022 and the co-founder and Creative Director of Garia, Anders Lynge, was pleased to see his life’s work become It is also with a certain sadness that we are selling Garia now. But we need to act as good tradesmen and the offer from Club Car is the right thing for both Lars Larsen Group and Garia at this time. Jacob Brunsborg, Chairman of the Board of Lars Larsen Group scale. Through continuous growth and expan- sion, Garia had become an attractive investment case, and when Club Car LLC, the world’s biggest golf and utility vehicles manufacturer, expressed interest, it was determined that Garia would have better conditions to further prosper and grow as part of the Club Car-family. A profitable deal that cemented Garia’s strong market value was made with Club Car, but after several years of strong collaboration it was not easy to part with Garia. When announcing the sale, Jacob Brunsborg stated: part of Club Car and thereby be able to continue the growth journey. In connection with the announce- ment of the sale he said: “Personally, I have invested a lot of my time in the development of Garia and our owners at Lars Larsen Group have provided essential and persistent sup- port all the way. Therefore, I am very pleased that the original idea and vision are now able to achieve an even wider reach through Club Car.” LARS LARSEN GROUP | ANNUAL REPORT 2021/22 | TRADESMANSHIP | PAGE 37

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