LucyGroup-ARA2024_spreads web ready_FINAL

KEY PERFORMANCE INDICATORS

BUSINESS OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

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.

KPI

Relevance

Performance in 2024

Strategic link

Despite an increase in production across our business sectors, we achieved a 22% decrease in recordable incidents compared to the previous year. Our frequency rate remains the same at 0.22 and is a focus area for further improvement.

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.

Total Recordable Incident Rate (TRIR)

4

3.51

2020

4.28

2021

4.43

2022

6.57

2023

High-performing Businesses

Customer at the Centre

Engagement and Development

Sustainable

Excellence through Innovation

2024

5.15

Financial KPIs

Occupancy levels remained stable at the high level of 99%, even though rents increased by an average of 7.9%. The tenant Net Promoter Score of 89/100 supports this achievement.

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

Occupancy rate for rental properties

5

KPI

Relevance

Performance in 2024

Strategic link

2020

99%

Aligns with our growth strategy.

Growth exceeded plan and was supported by product introductions and a relatively strong US dollar.

1

Sales growth

98%

2021

99%

2022

8%

2020

99%

2023

29%

2021

2024

99%

19%

2022

2023 15% 2023

Absolute carbon emissions rose to 19,430 tCO 2 e, due primarily to the extension of reporting to all Group businesses and increased production levels. Carbon intensity (tCO 2 e/£m) decreased again, recording a 25.1% reduction since the baseline of 2021 and decrease of 6% since 2023.

We are committed to reducing our impact on the environment, as highlighted in the ESG section on pages 56 to 59. 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. Genuine engagement across the workforce is vital to enhancing productivity, encouraging innovation, retaining top talent, and achieving our business goals.

2024 14%

6

tCO 2 e

17.1k

2020

Increased sales volumes, improved product mix and a positive investment property revaluation fuelled further strong PBT growth.

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

2

PBT growth

18.1k

2021

18.4k

2022

339%

2020

18.3k

2023

56%

2021

2024

19.4k

(16)%

2022

69%

2023

2024 43%

Participation in our latest employee engagement survey increased from 84% in 2023 to 87% in 2024, while overall engagement levels rose from 77% to 78%. Our goal is to reach and retain a score of 80%, which is in the top 10% of our peer group.

Employee engagement score

7

Returns were strong again in the year, with continued robust performances throughout the Group, especially in Lucy Electric. A positive revaluation of the Group’s investment property portfolio provided further benefit following two years of devaluation.

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

Return on net assets

3

2020

13%

72%

2020

18%

2021

73%

2021

12%

2022

76%

2022

18%

2023

77%

2023

2024

22%

2024

78%

30

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Lucy Group Ltd Annual Report & Accounts 2024

LUCYGROUP.COM

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