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LUCY GROUP LTD Annual Report & Accounts 2025

Infrastructure for a sustainable future.

BUSINESS OVERVIEW

Contents

Lucy Group is an international group that makes the engineered environment sustainable.

Report Highlights P04 Chairman’s Statement Richard Dick summarises the key performance highlights of 2025. P20 Our Innovation Pipeline Strategic innovation themes in response to prevailing market trends. P28 Operational Review The latest upgrades in our Focused annual reviews for Lucy Electric, Lucy Controls and Lucy Real Estate. P66 ESG Progress towards our sustainability goals and CSR highlights. P152 Financial Summary Key financial data over the past five years. business processes and manufacturing facilities. P30 Business Reviews

Business Overview Highlights Chairman's Statement Our Business at a Glance

02 04 08 10

Our Solutions Our Locations

12 13

Our Purpose Framework

Strategic Report Market Overview Our Innovation Pipeline Our Business Model Our Group Strategy Operational Review Business Reviews: Lucy Electric Key Performance Indicators

16 20 22 24 26 28 30 40 48 56 60 66 82 84 90 92 94 95

Lucy Controls

Lucy Real Estate

Financial Review Risk Management

Environmental, Social and Governance (ESG)

Our electric businesses advance the transition to a carbon-free world with infrastructure that enables renewable energy and smart cities. Our real estate businesses support sustainable living through responsible property development and investment.

Corporate Governance Board of Directors Corporate Governance Report

Report of the Directors

Relations with Stakeholders Directors’ Responsibilities

Independent Auditor’s Report to the Shareholders of Lucy Group Ltd Financial Statements Consolidated Income Statement 100 Consolidated Statement of Comprehensive Income 101 Consolidated Statement of Financial Position 102 Consolidated Statement of Cash Flows 103 Consolidated Statement of Changes in Equity 104 Principal Accounting Policies 105 Notes to the Accounts 113 Company Statement of Financial Position 137 Company Statement of Changes in Equity 138 Notes to the Company Accounts 139 Shareholder Information Advisors, Financial Calendar and Registered Office 150 Notice of Meeting 151 Five-Year Summary 152 Contacts 154

For more information visit our website: www.lucygroup.com

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Highlights

BUSINESS OVERVIEW

Financial Highlights

ESG Highlights

Turnover (£m) £421.8m

Rental income £11.0m

Net assets £430.9m

Earnings per share 9,198p

238.4m

6,403p

263.8m

8.2m

2025 2024 2023 2022 2021

Carbon intensity 51.6 tCO 2 e/£M 2025 53.4 tCO 2 e/£M (restated) 2024

289.1m

6,989p

313.2m

8.4m

324.1m

8,241p

359.1m

9.1m

393.9m

14,504p

409.3m

9.9m

430.9m

421.8m

9,198p

11.0m

Operating profit before valuation gains/(losses) £46.7m

Profit before tax

Total comprehensive income £40.9m

Total dividends per share (paid and proposed) 1 314p core 400p special

£55.6m

Number of CSR projects completed 224

39.5m

42.2m

39.5m

2022 2021

2025 2024 2023 2022 2021

233p

150p

2025 2024 2023 2022 2021

35.5m

35.3m

52.8m

264p

175p

2025 212 2024

62.3m

59.5m

37.8m 2025 40.9m 2024 2023

2025 46.7m 2024 2023

286p

300p

80.8m

85.2m

74.2m

301p

600p

55.6m

314p

400p

1 Dividends in 2021 normalised to remove the impact of the Covid-19 pandemic on timing of dividend payments.

Employee engagement 79% 2025 78% 2024

Lucy Group Ltd Annual Report & Accounts 2025

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Chairman’s Statement

BUSINESS OVERVIEW

Products The Group is firmly committed to R&D, with ongoing development across our product range covering both Lucy Electric and Lucy Controls. Lucy Electric successfully installed the Sabre EcoTec RMU and is now applying SF6-free technology across the voltage range, enabling us to look to new markets. AcuTec, a new generation of distribution cabinet, is engineered to meet the growing demands of modern low-voltage networks and is gaining traction with UK Distribution Network Operators (DNOs). We are developing a full range of type tested high-powered pillars for EV charging networks. Further investment was made in the Digital Solutions business to meet the growing demand for switchgear with embedded sensors, remote monitoring and predictive diagnostics, and ultimately to generate ongoing revenue from subscription-based software. In Lucy Controls, Lucy Zodion’s Hawk3 streetlighting photocell, mentioned earlier, is designed with sustainability principles from the outset and helps councils and contractors cut costs, reduce carbon and support safer, smarter streets. People One of the acknowledged shortcomings of the entire electrical energy sector is a lack of available people with the requisite skills. Therefore, we continue to invest heavily in training and development, with an emphasis on early careers, including increased activity across apprenticeships, graduate schemes, internships and work placements. We launched a career pathway feature, helping employees better plan and track their development, and have introduced manager dashboards to provide leaders with real-time insights into teams’

loss for the year, sales increased over 2024, and we made good progress on construction at our two largest sites to date, Bodicote and Old Marston Paddock, the latter being sold completely to Oxford City Council for affordable housing. Dividend The Board recommends a final dividend of 186p to be paid on 5 May 2026 which, including the interim dividend of 128p per share, represents a full-year dividend of 314p (2024: 301p). In addition, we paid a special dividend of 400p per share (2024: 600p per share) on 4 December 2025. Strategic developments During the year, Lucy Electric restructured its UK business, establishing two new entities to bring renewed focus in electric vehicle infrastructure and energy services. Lucy Electric extended the Nashik plant in India to support future growth. We also completed a strategic investment that enhanced our manufacturing capabilities in Dubai. We remain committed to investing in manufacturing automation and in engineering’s AI capabilities, using a predictive simulation platform to reduce reliance on costly external testing. Alongside this, we are expanding our use of Microsoft D365 applications and adopting AI enhancements. We continue to assess viable acquisitions that will complement and add value to our portfolio. In the final quarter of 2025, we acquired 100% of the shares in Blakley Electrics Ltd, a UK family-owned firm with an annual turnover of approximately £20m, providing industrial lighting and low voltage equipment for construction sites and temporary power supplies. This company will be included within the Lucy Controls business unit.

“ Although it has been a challenging year, our focus on innovation and new product development means that we are well positioned to take advantage of an uplift in the markets we serve.”

Richard Dick

Executive Chairman

Lucy Group Wins Leadership Team of the Year

Welcome to Lucy Group’s Annual Report and Accounts for the year ending December 2025. This year’s turnover was a creditable £422m (2024: £409m), but profit before tax - as forecast last year - reduced to £56m (2024: £85m), reflecting more challenging market conditions in 2025. We end the year in a strong financial position, with net assets of £431m (2024: £394m) and continued positive free cash flow. We have maintained our policy of investing for the long term, in our people, our manufacturing and our processes.

We were presented with the Leadership Team of the Year award at this year’s Thames Valley 250 Awards, an annual celebration of the top private businesses with headquarters in the region. Our winning award category is for leadership teams who champion their contribution to the community, prioritise the development of their people, and strive for excellence in products or services.

expand the tenant property portfolio. We continue to invest in bringing our properties up to energy performance level C. Lucy Developments operates in a UK property market that remains under severe pressure, with an imbalance between the cost of building new properties and what people can afford to pay. That said, although the business sustained a

At Lucy Controls, Flashnet made further gains in the North American market, while business in wider markets, particularly Europe, was less buoyant than hoped. Offering first-class smart city solutions, the business has increased its capacity to grow, including establishing an entity in the US to improve market access and enhancing its manufacturing operation in Romania. Lucy Zodion continued to face subdued demand, as UK local authorities struggled with budget constraints, though I am confident its award-winning Hawk3 streetlighting photocell will prove to be successful. Lawson Fuses delivered lower sales than planned, but progress on restructuring is reducing the cost base and expected to strengthen profitability. In Lucy Real Estate, Lucy Properties had another excellent year, with high occupancy levels and rental growth of 9%, while work commenced at Girdlestone Close in Headington to add two additional floors, which will

Performance In 2025 we faced adverse trading conditions, including increased competition - especially from China - that eroded selling prices, as well as increased tariffs on imports in key markets. The extra National Insurance liability in the UK has been a factor in increasing overhead costs. Against this backdrop, Lucy Electric achieved a respectable performance, with sales marginally ahead of last year. In 2024 our exceptional levels of profit were driven by a favourable product mix and several high margin contracts, which came to an end in early 2025. Electrification, and particularly the connection of renewables, is still a rising trend but the pace of change varies greatly across the world. The UK has fallen behind expectations, with government policy not being realised in infrastructure spending, leading to disappointing levels of investment.

For more information on our Leadership Team , see page 82 .

Lucy Group Ltd Annual Report & Accounts 2025

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Chairman’s Statement continued

BUSINESS OVERVIEW

Our long-term vision remains unchanged: to be a trusted partner for customers worldwide and to deliver infrastructure solutions for a sustainable future. While there is ebb and flow in global market trends and demand patterns, we remain confident in our strategy. Despite intensifying market competition, we believe that we are well positioned to capture market opportunities and drive further long-term growth. I would like to thank everyone across the entire Group for their continued commitment and hard work during last year and for their resilience and determination to tackle the new issues that are already confronting us in 2026.

As ever, we supported many charitable CSR programmes across the Group in 2025, reinforcing our ongoing commitment to the communities in which we operate through both donations and employee volunteering. Outlook The outlook for 2026 is currently clouded by the latest events in the Middle East, with hostilities across the region already impacting several key markets. At the time of this report, shipping movements are restricted in the Gulf and, if these continue, they are likely to affect our production facilities in the region. Appropriate actions are being taken to look after all our employees in line prolonged conflict, and we are already experiencing subdued business levels as a result of weak economic growth and a disproportionate level of actual spend on the much-heralded national infrastructure investment. with local government advice. The UK may also suffer from a

progress and engagement in learning. We also run a formal mentoring programme. Since December 2024, the Group learning score has increased to 80% and the Group career path score to 73%, ranking us in the top 25% of our peer group, with an aim to be in the top 10% by 2029. In September 2025, Lucy Switchgear FZE celebrated its 25th anniversary with a ceremony that brought together employees, leadership and long-serving team members. A highlight of the event was the recognition of employees who have completed 25 years of service. ESG We continue to build on our trajectory of improving sustainability, making significant progress in understanding, managing and reducing our emissions across the Group. Our carbon-intensity levels continue to decrease. This reflects the effectiveness of various initiatives such as phasing out diesel, improved freight logistics and enhanced energy efficiency.

Richard Dick Executive Chairman 24 March 2026

Lucy Group Ltd Annual Report & Accounts 2025

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Our Business at a Glance

BUSINESS OVERVIEW

Lucy Electric is an international leader in intelligent secondary power distribution products and solutions, applying advanced technologies to future-ready networks. Linking energy generation to consumption, the business specialises in high performance medium and low-voltage switchgear for utility, industrial and commercial applications. Our range includes EV infrastructure, remote operation and monitoring, and installation & maintenance services.

For more information on Lucy Electric , see our Business Review on page 30 .

Lucy Controls comprises four distinct businesses involved in electric hardware & software for management and control: Lucy Zodion , Flashnet , Lawson Fuses and Blakley Electrics . Products include: advanced street lighting controls; smart, connected street lighting and grid management systems; high-rupturing capacity (HRC) fuses; and power distribution and lighting solutions supporting both permanent and temporary installations.

For more information on Lucy Controls , see our Business Review on page 40 .

The Group’s property businesses are involved in residential property development and lettings & management in the county of Oxfordshire, UK. Lucy Developments crafts sustainable homes, blending innovative design with high quality and environmental standards. Lucy Properties ‘ letting and management services offer high-quality, well maintained rental properties with a keen focus on sustainable living and customer service.

For more information on Lucy Real Estate , see our Business Review on page 48 .

Lucy Group Ltd Annual Report & Accounts 2025

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Our Solutions

BUSINESS OVERVIEW

Our opportunity Our core low- and medium-voltage switchgear market is forecast to grow at around 7.3% CAGR to 2029. Near-term activity may remain sluggish, but longer term demand is supported by structural drivers such as EV infrastructure expansion, with the UK targeting 300,000 public chargepoints by 2030.

Energy distribution Overview

Our switchgear and EV charging products enable the efficient distribution of electricity, with features such as remote switching and monitoring. Our BSI-certified, low-voltage fuses provide electrical safety and protection. Why is it important to us? By connecting renewables to the grid – including solar, wind, hydro and geothermal power – we can help reduce the planet’s carbon footprint and mitigate the impacts of climate change. A diversified energy mix also increases resilience to supply disruptions and price fluctuations. Our business units Lucy Electric, Lucy Controls.

Read more about Market Overview on pages 16 to 19 .

Our opportunity The global smart street lighting market is projected to grow at a CAGR of 18.5% to 2030, although adoption is expected to occur gradually as cash-strapped municipalities implement upgrades over multi-year investment cycles. The installed base of individually controlled street lights is forecast to rise from 33 million in 2024 to 85 million by 2029.

Smart cities Overview

Our intelligent street lighting and smart city management systems help deliver information to users, achieve operational efficiencies, and gain energy savings. Why is it important to us? Smart cities provide a framework for integrating sustainable practices into urban environments. Smart technologies and AI – including predictive modelling – enable more efficient monitoring and management of energy consumption, thereby minimising energy waste, cost and carbon emissions. Our business units Lucy Controls.

Read more about Market Overview on pages 16 to 19 .

Our solutions include: | property development: ecological and energy-efficient homes; and | property rental: rental homes with Energy Performance Certificate (EPC) ratings between A and C.

Our opportunity The new-build housing sector is expected to stabilise before returning to growth. Market conditions are likely to remain subdued in the short term, but forecasts suggest a gradual recovery, with momentum shifting back towards new construction over the medium term as economic conditions improve.

Sustainable living Overview

Our residential property development, investment, and lettings and management business focuses on the Oxford area, which was named as England’s greenest city in the ENDS Report in 2023. Our properties incorporate multiple features that support sustainable living. Why is it important to us? Housing accounts for around a fifth of the UK’s total carbon emissions. To preserve the environment, every household needs to play its part. Our developments include the use of solar power, heat pumps, EV chargers, biodiversity features and ecological materials. Our business units Lucy Real Estate.

Read more about Market Overview on pages 16 to 19 .

Lucy Group Ltd Annual Report & Accounts 2025

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Our Locations

Our Purpose Framework

BUSINESS OVERVIEW

Our geographical reach The Group trades internationally, with offices and factories in strategic locations all around the world. Our infrastructure enables us to serve geographically dispersed markets, provide efficient support to all customers, and swiftly adapt to changing demand patterns.

Our purpose framework

Our purpose Lucy Group’s purpose is to improve people’s lives with intelligent power, smart lighting and sustainable homes.

reductions, and modern homes that support sustainable living. In meeting our customers’ needs, we are committed to the UN Sustainable Development Goals. While advancing the engineered environment, we strive to preserve the natural environment and invest in the local communities in which we operate.

We put people and the planet first to achieve meaningful progress in everything we do: from power distribution infrastructure that delivers electricity to homes and businesses, to switchgear that connects renewable energy sources to the grid, charging solutions that facilitate the adoption of EVs, smart cities that deliver groundbreaking emissions

Our culture Lucy Group’s culture is a key driver of our continued success. Reflecting our five values, it fosters innovation, collaboration and ethical decision-making. Operating within a defined set of Group active role in bettering the communities in which we operate.

strategic priorities that are adapted for each business, every employee is encouraged to push boundaries, while ensuring that continuous improvement is sustainable. By aligning culture with our purpose, we aim to enhance employee motivation, engagement and performance. That alignment is reinforced by an unwavering belief in wellbeing, personal growth and diversity, an ethos that extends to playing an

Our culture is underpinned by a set of values that guide the way we interact with all of our stakeholders, including customers, suppliers, partners, colleagues and shareholders. These values define what it means to be a part of the Lucy family and the standards we uphold. They guide us to make the right decisions, develop our businesses and challenge the status quo.

Our values

Caring We treat all with fairness and respect. We value diversity. We recognise and develop our people. Trusted We build and maintain trusted relationships with all people and partners. Working together Teamwork and communication are at the forefront of everything we do. We share our knowledge across our organisation for the benefit of everyone.

Excellence Through ingenuity and a dedication to quality, we create smart, sustainable solutions. Daring to differentiate We are market leaders. We make bold decisions. We stand out.

1,900 6

employees

continents

countries

countries we trade in

Lucy Group Ltd Annual Report & Accounts 2025

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Strategic Report In this section:

Market Overview

16 20 22 24 26 28 30 40 48 56 60 66

Our Innovation Pipeline Our Business Model Our Group Strategy Key Performance Indicators

Operational Review Business Reviews – Lucy Electric – Lucy Controls

– Lucy Real Estate

Financial Review Risk Management

Environmental, Social and Governance (ESG)

Lucy Group Ltd Annual Report & Accounts 2025

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Market Overview – Macro Trends

STRATEGIC REPORT

Sustainability in the engineered environment is increasingly becoming a core focus for governments, businesses and individuals, driven by several macro trends that address environmental, economic and social challenges.

Sustainability In Business Corporate ESG Imperatives Investor Expectations: Financial markets are prioritising ESG performance, with sustainable investing seeing rapid growth. Corporate Commitments: Companies are setting science based targets and sustainability goals to enhance competitiveness and stakeholder trust. Sustainable Cities: Urban centres are adopting green infrastructure and smart city technologies to reduce emissions and improve quality of life. Population Pressure: Increasing demand for resources in growing urban populations drives the need for sustainable resource management. Conscious Urban Living Urbanisation and Population Growth Socio- Economic Change Economic Pressures Cost Savings: Rising energy prices incentivise businesses and consumers to invest in energy efficient technologies to reduce operating costs. Energy Security: Dependence on fossil fuels exposes nations to price volatility and geopolitical risks, making energy efficiency a tool for enhancing resilience. Regulation & Cooperation Climate Change Goals and Regulation Global Agreements: International treaties like the Paris Agreement and the United Nations Sustainable Development Goals (SDGs) compel nations to reduce emissions, encouraging commitment to reach net zero. Carbon Pricing and Taxes: Policies such as carbon taxes, emissions trading systems and subsidies for green technologies incentivise sustainable practices.

Global Collaboration International Funding: Green financing mechanisms like climate funds and sustainable bonds support large-scale sustainability projects. Public-Private Partnerships: Collaborative efforts among governments, businesses and NGOs accelerate innovation and implementation.

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Social Justice and Equity Focus on Inclusion: Sustainability is increasingly linked to social equity, addressing issues like access to clean water, energy and education. Just Transition: Growing emphasis on ensuring that the shift from fossil fuels to green economies is fair, inclusive and equitable.

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Consumer Awareness and Demand Conscious Consumers: Growing awareness of environmental and social issues leads consumers to prioritise sustainable products and services. Transparency Demands: Tools like eco-labels and certifications influence consumer choices, driving companies toward sustainability.

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Renewables & Technology Energy Transition Decentralised Systems: Adoption of distributed energy resources, such as rooftop solar power and microgrids, enhances energy efficiency and resilience. Shift to Renewables: The rapid expansion of wind, solar and other renewable energy sources accelerates decarbonisation efforts.

Technological Innovation Clean Energy Technologies: Advances in renewables, energy storage and grid technologies support the transition to sustainable energy systems. AI and IoT: Smart technologies monitor and optimise resource usage in real time, applying data analytics to control equipment performance and minimise energy losses.

Circular Economy Transition Reducing Waste: Emphasis on designing out waste, keeping products in use and regenerating natural systems. Extended Producer Responsibility: Policies and consumer demand drive manufacturers to take accountability for end-of-life product management.

Lucy Group Ltd Annual Report & Accounts 2025

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Market Overview – Industry Trends

STRATEGIC REPORT

Our market at a glance

Smart cities

In 2025 the global smart lighting market showed robust momentum against the backdrop of expanding smart city and IoT infrastructure investment. The market was valued at £7.5bn in 2025 and is projected to grow to £32bn by 2030, an annual growth rate of 18.5%. The installed base of individually controlled street lights is expected to increase from 33 million units in 2024 to 85 million units in 2029, a CAGR of 21% (source: Research and Markets, 2025). In the UK, demand remains subdued as local authorities have limited budgets and often favour lower tech solutions or minimal investment as opposed to the latest smart city solutions. Smart lighting is increasingly recognised as the foundational layer of smart-city infra-structure, acting as a gateway to wider digital transformation. Because street lights are already ubiquitous and powered, they provide an ideal network for hosting

sensors, connectivity modules and data platforms that enable upgrades such as traffic management, air-quality monitoring, parking optimisation and public-safety systems. For local authorities, smart lighting delivers immediate operational benefits: significant energy savings, reduced maintenance costs through predictive monitoring and lower carbon emissions that support net-zero commitments. At the same time, the public benefits from better-lit, safer streets, improved urban environments and more efficient municipal services. By turning a basic utility into a digital asset, smart lighting helps cities move from isolated infrastructure management toward integrated, data-driven governance, laying the groundwork for resilient, sustainable and connected communities.

Enabling a more sustainable future

Energy distribution

Market opportunity

People

Planet

Smart cities

Progress

Sustainable living

Read more on pages 48 to 55 .

24.6% reduction in carbon intensity since 2021, driven by product and process upgrades.

All RMUs launched post-2024 are SF6 free, reducing global warming impact.

Flashnet-enabled cities save up to 40% on energy via intelligent lighting systems.

56 biodiversity projects completed across real estate developments.

Lucy Group Ltd Annual Report & Accounts 2025

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Our Business Model

STRATEGIC REPORT

We create value by leveraging our key relationships, global positioning and innovative approach to deliver products that are both sustainable and fit for purpose.

1 We use our key resources... Our people We take measures to attract, retain

Our expertise We focus on continuous improvement, through product development, value engineering and acquisitions.

Our relationships We take pride in our great

Our infrastructure We prioritise capital investment, which ensures that our worldwide manufacturing operations can meet market demand.

Our financial rigour We take a prudent approach to growth, with a solid balance sheet underpinned by our control framework and gearing.

Our responsible approach Sustainability is embedded in our business, in both what we offer our customers and how we manage our operations.

and develop the best talent at all levels and across all disciplines.

relationships with customers and other stakeholders, which are built on trust and proven track record..

2 and apply our Group

7 and unlock value for our stakeholders.

3 to enable our business units…

4 to focus on our areas of expertise...

5 and create innovative products and services...

6 that fulfil our purpose... To improve people’s lives with intelligent power, smart lighting and sustainable homes.

strategic priorities and core values…

Consumers Reliable solutions that ‘keep the lights on’ and enhance sustainable living. Customers Advanced, well-supported products that can be relied upon for longevity and a reduced carbon footprint. Employees Fulfilling, meaningful careers where people are actively engaged and rewarded for delivering value. Shareholders An ethical investment, providing a growing dividend return over the long term, while also furthering the sustainability agenda. Communities Social consciousness and investment in, and active support for, the local communities we operate in around the world. Environment Products and operations that promote the health of the planet, mitigating climate change and promoting biodiversity. Government Products and services that support government schemes and regulations to proliferate renewable energy and raise appropriate taxes. Suppliers Long-term, strategic partnerships and contracts that allow investment for the future and shared value creation.

Our Group strategic priorities

High-performing businesses in diverse industries

Customer at the centre of everything we do

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Engagement and development of our people Sustainable solutions and communities Excellence through innovation to differentiate and lead

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Our products and services: pages 8 to 11. Our solutions: page 10. Our purpose and values: page 13. Our strategy: pages 24 to 25. Our expertise: pages 8 to 11. Our financial rigour: pages 56 to 59. Our responsible approach: pages 66 to 79. Our people: pages 75 to 79. Our relationships: pages 92 to 93.

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Lucy Group Ltd Annual Report & Accounts 2025

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Our Group Strategy

STRATEGIC REPORT

Our five strategic pillars form a clear guiding structure, enabling us to stay focused on delivering our 2025 revenue and profit ambitions while building the foundations for sustainable long-term growth. These high-level priorities are translated into defined objectives for each business unit, which then cascade into individual annual goals for every employee.

High Performing Businesses in diverse industries

Customer at the Centre of everything we do

Engagement and Development of our people

Sustainable solutions and communities

Excellence through Innovation to differentiate and lead

Priorities | Expansion via new and existing products and markets, while managing margins. | Improve productivity and supply chain resilience through cost efficiencies, agility and automation. | Compliance with global policies and local regulation. Performance in 2025 | Achieved a 13%return on net assets. | Established Flashnet LLC in the USA to build on our growing presence in the US market. | Acquired Blakley Electrics in the UK to bring complementary products and widen our infrastructure customer base. | Continued to enhance supply-chain resilience through diversification of suppliers, contingency planning and operational efficiency. | Lucy Properties’ rent roll surpassed £11m during the year, with rental growth in excess of 9% and an occupancy level of 98%. Priorities for 2026 | Productivity powered by intelligence and automation. | Strong cybersecurity to protect stakeholders and ensure business continuity. | Robust, targeted growth that enhances market share and cash flow while preserving margins. | Compliance with global policies and local regulation.

Priorities | Excellent customer service and care to internal and external stakeholders. | Market intelligence and customer data to drive value and competitiveness. | An uncompromising approach to quality and standards. Performance in 2025 | Launched three distinct, customer focused Lucy Electric businesses: Digital Solutions, Energy Services and EV Infrastructure. | Sharpened our focus on addressing the EV market by establishing a dedicated centre of excellence for manufacturing EV products under a single brand. | Expanded Lucy Electric’s range of SF6 free products, adding features in line with customer requirements. | Increased focus on localised customer needs and collaborative development. | Maintained high NPS scores in our customer surveys for both Lucy Properties and Lucy Developments. Priorities for 2026 | Excellent customer service and after care. | An uncompromising approach to quality and standards. | Total solutions that span the product life cycle. | Market intelligence and customer data to drive value and competitiveness.

Priorities | High employee engagement rates at every site and level. | Employee attraction and retention, with workforce planning to enhance skills and employee development. | Diversity & Inclusion to stimulate fresh thinking. Performance in 2025 | A new Group intranet, Connect2, was launched on Microsoft SharePoint, providing a central hub for communication, knowledge sharing and collaboration across all sites. | Our overall employee engagement score rose to 79%, up from 72% in 2022. | 14,600 hours of training were delivered and we broadened our suite of learning resources. | Strengthened our award-winning apprentice programme. | Launched a Group-wide skills mapping initiative to give a clear view of current capabilities and gaps. Priorities for 2026 | High employee engagement rates at every site and level. | Talent attraction and retention. | Employee development to support business and career growth. | Diversity & Inclusion to expand the talent pool and stimulate fresh thinking.

Priorities | The health, safety and wellbeing of all stakeholders. | Reduced environmental impact across operations, supply chains and customers. | Actively supporting and investing in our communities. Performance in 2025 | Our Total Recordable Incident Rate (TRIR) was 3.9 in 2025, a 24.3% decrease on the prior year. | Tangible progress was made in reducing carbon intensity, down 22.3% since 2021. | A total of 56 Biodiversity Net Gain projects were completed in 2025. | Supported 95 different charities, community projects and environmental organisations and participated in 223 activities. | Oxford headquarters underwent a major renovation, which will further improve energy efficiency. | 80% of employees agreed that wellbeing is a priority at Lucy Group, 3% above the manufacturing benchmark. Priorities for 2026 | The health, safety and wellbeing of all stakeholders. | Reduced environmental impact across operations, supply chains and customers. | Active involvement and investment in communities. | Products that enable the transition to net zero.

Priorities | Bold thinking to meet changing customer needs. | Digitalisation and AI to enhance value across customer offerings and business operations. | Data capture and integrity, countering cyber risk. Performance in 2025 | Microsoft D365 was rolled out across several businesses, unlocking greater integration, visibility and control across finance, planning and shopfloor operations. | Lucy Zodion’s standard-setting Hawk3 streetlighting photocell was awarded a ‘Build Back Better Green Award’. | Continual improvements to cyber security in response to increased threats, including ongoing employee cyber training. | D365 Field Service Management went live at Lucy Electric Energy Services, improving scheduling, visibility and service execution. Priorities for 2026 | Bold thinking to meet changing market needs. | Differentiation to counter increased competition. | Digitalisation and agentic AI to enhance value across products and operations. | Reimagined supply chains – smart, agile and resilient.

KPI Key

Sales growth

PBT growth

Return on net assets

Total Recordable Incident Rate (TRIR) Occupancy rate for rental properties

tCO 2 e

Employee engagement score

Link to KPIs 1 2 3

Link to KPIs 1 2

Link to KPIs 7

Link to KPIs 4 6

Link to KPIs 1 2 3

For more information on Key Performance Indicators (KPIs) see pages 26 to 27.

Lucy Group Ltd Annual Report & Accounts 2025

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Key Performance Indicators

STRATEGIC REPORT

Operational/non-financial KPIs

The Group has selected a number of financial and operational/non-financial performance indicators, which are used to monitor the key drivers of our business and to align our strategy to performance.

Strategic link

KPI

Relevance

Performance in 2025

4 Total Recordable Incident Rate (TRIR)

TRIR reduced by 24.3% to 3.9 in 2025. This reflects more effective risk controls, closer supervision, and better use of lessons learned from higher-risk incidents.

The health and safety of our employees is of paramount importance and we have a proactive approach to monitoring and improving this across the Group.

High-performing Businesses

Customer at the Centre

Engagement and Development

Sustainable

Excellence through Innovation

4.28

2023 2022 2021 2024 2025 3.90

4.43

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KPI

Relevance

Performance in 2025

5 Occupancy rate for rental properties

Occupancy levels remained stable with a marginal decrease to 98%. Rents increased by an average of 9.2%, an improvement on last year’s 7.9%. The tenant Net Promoter Score remained strong at 89.

The Group has a significant investment property portfolio and occupancy is a useful indicator for income and customer satisfaction.

Aligns with our growth strategy.

Within a challenging market context, sales recorded modest year-on-year growth, supported by new product introductions despite a relatively strong US dollar. Growth was 5% on an Organic Constant Currency (OCC) basis, largely due to the strong US dollar reducing reported sales during the year.

Sales growth

29%

2023 2022 2021 2024 2025 3%

98%

2023 2022 2021 2024

19%

99% 99% 99%

15%

14%

2025

98%

We are committed to reducing our impact on the environment, as highlighted in the ESG section on pages 66 to 69. Lucy Electric purchases sulphur hexafluoride (SF6), a greenhouse gas, for use in some of its products. As this is not consumed by the Company only loss during normal manufacturing process is included in this figure.

Absolute carbon emissions increased to 18,431 tCO 2 e compared with 2021, driven mainly by the continued expansion of reporting across all Group businesses and higher production volumes. However, during the year, emissions decreased by 5.1%. Carbon intensity (tCO 2 e/£m) also continued its downward trend, showing a 24.6% reduction since the 2021 baseline and a further 3.2% decrease since 2024. The Group’s overall engagement score rose to 79%, reflecting stronger connections and a shared sense of purpose across our businesses. Our goal is to reach and retain a score of 80%, which is in the top 10% of our peer group.

Profits generated by the business are a key indicator of our performance and key to our long-term financial health.

PBT was below the strong performance of last year due to increased competition eroding selling prices and increased tariffs on imports in key markets.

6 tCO 2 e

2 PBT growth

18.1k

2023 2022 2021 2024

56%

2022 2021

18.4k 18.3k

(16)%

69%

2023

19.4k

43%

2024

2025

18.4k

(35)%

2025

3 Return on net assets

Return on net assets continued to be healthy, although lower than the strong performances in recent years.

We strive to produce positive returns across all businesses and use this measure to monitor how effectively we are using our capital. Each business sector has differing asset profiles and returns are measured against an appropriate target for that sector.

7 Employee

Genuine engagement across the workforce is vital to enhancing productivity, encouraging innovation, retaining top talent, and achieving our business goals.

engagement score

18%

12% 2023 2022 2021 2024 2025 13%

73%

2021

18%

76% 77%

2023 2022

22%

78%

2024

2025

79%

Lucy Group Ltd Annual Report & Accounts 2025

LUCYGROUP.COM

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