Transmission of Annual Report for the Year Ended June 30, 2025

Annual Report 2024-25 1

We

The Art of

2

We

The Art of

The 'Art of We' reflects the power of collaboration, where every individual, every role, and every contribution come together to create something remarkable. Just as diverse elements come together to form a cohesive whole, collective efforts produce extraordinary results that transcend individual boundaries.

At Lucky Core Industries Limited (LCI), this art of collaboration is woven into the fabric of our organisation. From plant sites to boardrooms, every voice and every effort plays a vital role. Across our diverse businesses, our collective achievements showcase the strength of our unified approach.

In this Annual Report, we invite you to take a glimpse at how our collective spirit drives every aspect of our journey, always guided by our vision, mission and values.

Contents

04

Review of the Chairman

Organisational Overview

Vision, Mission and Values 12

Code of Conduct 13

Lucky Core Industries Limited at a Glance 14

Geographical Presence 16

A Year in Highlights 17

Group Structure 18

Organisational Structure 19

Executive Management Team 20

Our Journey Through Decades 22

Thriving Together,

A Team Committed to Success 24

Driving Excellence Through

Digital Transformation 26

Awards and Achievements 28

SWOT Analysis 30

Competitive Environment Analysis 31

Significant Factors Affecting the

External Environment 32

Message from the Chief Executive

06

Strategy

Value Creation Model 36

Value Addition and its Distribution 38

Strategy and Resource Allocation 39

Key Capabilities and Resources Providing Sustainable Competitive Advantage 41

Effects of External Factors on Strategy and Resource Allocation 41

03

Governance and Compliance

Board of Directors 44

Board and Management Committees 48

Report of the Directors 49

Gender Pay Gap Statement 59

Statement of Compliance 60

Independent Auditor's Review Report 62

Corporate Governance and Compliance 63

Report of the Board Audit Committee 69

Risks and Opportunities 71

08

About the Report

Company Information

09

05

Sustainability Performance

About the Report 107

Message from the Chief Executive 108

Sustainability Highlights 110

Materiality Assessment 112

Sustainability Strategy 115

Catalysing Change for a Sustainable Future 116

Sustainability Governance 118

Stakeholder Engagement 120

Economic Performance 124

Environmental Performance 129

Social Performance 142

GRI Content Index 162

Sustainable Development Goals 167

External Assurance 168

Review of the Chairman

Dear Stakeholders,

On behalf of the Board of Directors of Lucky Core Industries Limited (LCI), I am pleased to present the Annual Report for the year ended June 30, 2025.

In yet another year marked by significant challenges, the Company has demonstrated resilience, adaptability, and an unwavering commitment to its guiding principle of Delivering Enduring Value to all stakeholders. I extend my heartfelt appreciation to our valued stakeholders for their continued trust, and I commend the dedication of our employees, whose steadfast commitment remains the bedrock of our sustained progress.

During the year under review, LCI operated in a highly challenging external environment. Through a focused and disciplined approach, the Company continued to identify opportunities to reinforce its standing across

Pakistan's economic landscape. Elevated energy tariffs and persistently high taxation remained a source of competitive disadvantage vis a vis regional and global competitors.

As part of the ongoing economic reform programme, the Government introduced multiple measures aimed at enhancing transparency and promoting documentation within the economy. Additionally, it undertook a tariff rationalisation programme to improve competitiveness of downstream manufacturing to support its export-led

growth initiative. Whilst aggressively reducing import tariffs to the detriment of the local manufacturing industry, the Government is yet to address underlying inefficiencies and cost inequities as a consequence of high-power tariffs, inadequate infrastructure, interest rate differentials, and elevated taxation.

On a more positive note, headline inflation eased over the year, offering some respite in input costs and monetary conditions. This improvement coupled with greater foreign exchange liquidity and a gradual clearing of import backlogs, helped alleviate certain supply-side constraints.

Globally, the backdrop was equally complex, with slowing growth in major economies, tight monetary conditions, and persistent geopolitical tensions. These factors weighed on trade flows and investor sentiment, with knock-on effects for Pakistan's external account. For LCI, the impact was visible with volatility in supply chain costs particularly in businesses reliant on internationally traded

input commodities. Nonetheless, the Company responded with agility, leveraging strategic sourcing, productivity enhancements, and a disciplined commercial approach to

mitigate pressures. The Soda Ash and Polyester Businesses navigated growing import competition and fluctuating prices, while the Pharmaceuticals Business proactively addressed challenges in sourcing critical raw materials.

Despite these headwinds, LCI sustained its focus on operational resilience and long-term value creation. Consolidated Net Turnover for the year stood at

PKR 119,941 million, broadly in line with the same period last year (SPLY). Operating Income and Profit After Tax rose by 5% over the SPLY, reaching PKR 18,031 million and PKR 11,757 million respectively.

The year also saw LCI taking purposeful steps to unlock value across its portfolio, reinforcing working capital discipline, enhancing manufacturing efficiency, and optimising export potential. A noteworthy achievement was the successful integration of the newly acquired assets in the Pharmaceuticals Business, which has strengthened the Company's healthcare footprint and accelerated growth in a priority segment.

Looking ahead, we are mindful that both global and domestic landscapes will remain complex and uncertain. However, the Company is well-prepared to navigate emerging risks and seize new opportunities through strategic foresight and its proven ability to adapt to change. The Board remains committed to empowering the

management team with the vision, direction, and resources necessary to drive innovation, shape the future, and deliver sustainable, long-term value.

In closing, I wish to express my deep gratitude to my fellow Board members for their invaluable guidance and support, to the management for their resolute leadership, to our employees for their dedication, and to all our stakeholders for their enduring confidence in LCI. Together, through shared purpose and determination, we remain committed to responsible growth and sustainable progress.

Best Regards,

Muhammad Sohail Tabba

Chairman

Lucky Core Industries Limited

Message from the Chief Executive

Dear Stakeholders,

As we reflect on another year of progress, we at Lucky Core Industries Limited (LCI) remain rooted in our belief that unity, collective purpose, and diverse perspectives are the foundation of lasting progress. Our Annual Report 2024-25 embodies this spirit, highlighting the power of collaboration

across teams, with our partners, and within the communities we operate in. It reflects how our people, guided by shared values, continue to shape a resilient and responsible organisation.

Guided by this ethos, I am pleased to share an overview of the progress we have made over the past year, showcasing the team's commitment, determination, and embodiment of LCI's vision, mission and values.

During the year, despite heightened geopolitical and macroeconomic uncertainty, the Company delivered stable financial performance, with unconsolidated Net Turnover broadly in line with the same period last year, while Operating Results rose by 4%. The Company's Profit After Tax increased by 4%, supported by improved operating efficiencies and

a reduction in finance costs due to the lower interest rate environment, which correspondingly negatively impacted finance income compared to the SPLY. In line with our commitment to create enduring shareholder value and improve accessibility and stock liquidity, the Company undertook a subdivision of its ordinary shares, reducing the face value of its ordinary shares from PKR 10/- per share to PKR 2/- per share. Regulatory formalities for the stock split were concluded on July 19, 2025, and trading in post split shares commenced at the Pakistan Stock Exchange on July 21, 2025.

During the period under review, our businesses contributed in delivering improved financial performance despite strong headwinds across multiple sectors of the economy. The Pharmaceuticals Business delivered robust growth during the year, building on the agreements signed last year for the acquisition of select assets from Pfizer entities. The successful integration of a state-of-the-art manufacturing facility and a diverse product portfolio enhanced our footprint in the healthcare space. Since the inception of its

manufacturing journey in 2016, the Pharmaceuticals Business now manufactures over 60 products in 10 therapeutic areas, including gynaecology, oncology, paediatrics, cardiometabolic and central nervous system.

The Animal Health Business continued its forward momentum, despite ongoing volatility in its operating environment. Sharp focus on portfolio enhancement and operational efficiencies enabled the business to sustain performance and expand reach, providing efficacious solutions for both the poultry and livestock segments. In line with the Company's commitment

to creating long-term value, construction of our new Animal Health manufacturing facility continued in full swing. With operations expected to commence towards the end of FY 2025-26, the facility will further strengthen our localisation efforts and drive long-term growth.

The Polyester Business navigated itself through a challenging external environment with both import-driven pressures

and muted domestic demand. Nevertheless, the business maintained its strategic focus on specialised fibre variants and supply chain optimisation. Notable progress was also made on the sustainability front, with the successful completion of a Life Cycle Assessment (LCA) of our recycled fibre, revealing nearly 50% lower CO2 emissions compared to virgin alternatives.

Additionally, the business strengthened its partnerships with

key suppliers and global brands, laying the foundation for longterm competitiveness.

The Soda Ash Business, operated in a constrained market environment, with muted local demand and external pressures, including sharply lower export prices and elevated freight costs, impacting overall performance. However, amidst these challenges, the business marked a milestone, achieving its highest-ever annual sales of sodium bicarbonate at 52,258 tonnes. This accomplishment underscores the business's ability to adapt and find opportunity even in testing times.

The Chemicals & Agri Sciences Business encountered challenges across both Chemicals and Agricultural inputs. Despite difficult market conditions, the Chemicals and Masterbatches segments registered volumetric growth, supported by improved market penetration, expanded production capacity, and portfolio diversification. In the Agri Sciences segments, the business remained focused on enhancing customer value through strengthened engagement and continued efforts to widen its reach.

As one of the leading manufacturing concerns, we remain committed to protecting the environment and supporting the communities in which we operate. Our sustainability initiatives reflect our commitment to build a better, more sustainable future. Building on the momentum from previous years, our ongoing programme, Catalyst 2030 - Climate Action Plan, has continued to drive our ambitious decarbonisation goals through nature-based and science-led solutions. I am also pleased to share that our efforts in Health, Safety, Environment, and Security (HSE&S) were recognised with multiple accolades. Safety, for us, is not merely

a metric but a mindset. This commitment was demonstrated through approximately 49.9 million safe man-hours recorded this year, alongside structured audits and continued investment in employee health and well-being. Furthermore, LCI's philanthropic and employee-led volunteer initiatives, spanning health, education, women's empowerment, environmental conservation, and community development, delivered meaningful shared value.

For more details on our sustainability strategy and progress on material topics, please refer to our Sustainability Report 2024-25.

Our people remain the driving force behind the Company's success. Their passion, creativity, and resolve transform intention into impact, shaping a culture where growth, innovation, and inclusion are not just goals but everyday realities. Building on

last year's introduction of the employee engagement platform, Core Connect, we deepened dialogue, translated feedback into action, and reinforced a culture of accountability and growth. We continued to invest in capability-building, delivering over 53,000 training hours and expanding opportunities for cross-functional growth. Our continued focus on diversity, equity, and inclusion helped foster a workplace where individuals feel empowered

to contribute their unique strengths. It is through this unity of purpose, strengthened by empathy, ownership, and mutual respect, that we continue to move forward, not just as a Company but as a connected, purpose-driven community.

Finally, and importantly, I would like to take this opportunity to thank all our stakeholders for their ongoing support, our Board of Directors for their guidance and our many ambassadors who have contributed to the growth and success of LCI. Together, we will continue pushing boundaries, creating value, and shaping a future that belongs not to any one of us, but to all of us.

Yours Sincerely,

Asif Jooma

Chief Executive

Lucky Core Industries Limited

About the Report

The Annual Report for the FY 2024-2025 is prepared in accordance with the Integrated Reporting Framework, providing an extensive overview of Lucky Core Industries Limited (LCI) efforts throughout the year to create value for its internal and external stakeholders. By sharing relevant information about the Company's key milestones, financial and sustainability performance and accomplishments throughout the year, LCI aims to present an overview of its achievements and contributions. The information disclosed in this Report is in accordance with the Best Corporate Reporting criteria applicable for FY 2024-25.

Reporting Period

The reporting period for this publication aligns with LCI's FY 2024-25, spanning from July 1, 2024, to June 30, 2025.

Reporting Framework

This Report provides an in-depth and transparent disclosure of the Company's financial, environmental, and social performance. In preparing this Report, the Company was guided by the local statutory and regulatory requirements and is also in compliance with the following:

International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board as notified under the Companies Act, 2017

01

Companies Act, 2017, and other allied laws and regulations

02

Listed Companies (Code of Corporate Governance) Regulations, 2019

03

Rule Book of the Pakistan Stock Exchange

04

Income Tax Ordinance, 2001 and related rules

05

Other Rules, Regulations, Circulars, Notifications, and Guidelines of the SECP

06

Global Reporting Initiative Standards for Sustainability Reporting

07

UN Sustainable Development Goals

08

Report Boundary

This Report contains six sections, including the Company's Overview, Strategy, Governance, Business Performance, Sustainability, and Financial Performance.

Materiality

The Company's process for the determination of materiality has been carried out in accordance with the applicable financial reporting framework.

Board Approval

The Directors' Report and the financial statements contained within have been approved by the Board of Directors at its meeting held on July 31, 2025.

Assurance

Independent external auditors

A.F. Ferguson & Co. Chartered Accountants have assured the Company's financial statements. In line with the regulatory requirements, the appointment of auditors is approved by the Members based on the recommendation of the Board

of Directors at the Annual General Meeting of the Company.

Forward Looking Statement

LCI is committed to creating a lasting impact by leveraging innovation and operational excellence to drive growth in a dynamic business environment. The Company's focus on responsibly delivering sustained growth enables shared value creation for all its

stakeholders. As an equal opportunity employer, LCI prioritises its diverse and empowered talent pool, investing in their well-being, growth, development and fostering an inclusive and employee-centric culture.

Contact us

To share any feedback or comments related to this Report, please email:

investor.relations@luckycore.com or ccpa.pakistan@luckycore.com

Company Information

Board of Directors

Muhammad Sohail Tabba - Chairman (Non-Executive Director) Muhammad Ali Tabba - Vice Chairman (Non-Executive Director) Jawed Yunus Tabba - Non-Executive Director

Amina A. Aziz Bawany - Non-Executive Director Asif Jooma - Chief Executive (Executive Director) Adnan Afridi - Independent Director

Syed Muhammad Shabbar Zaidi - Independent Director

Ariful Islam - Independent Director

Audit Committee

Syed Muhammad Shabbar Zaidi - Chairman

Adnan Afridi - Member Muhammad Ali Tabba - Member Jawed Yunus Tabba - Member

HR & Remuneration (HR&R) Committee

Adnan Afridi - Chairman Muhammad Sohail Tabba - Member Muhammad Ali Tabba - Member Jawed Yunus Tabba - Member

Asif Jooma - Member

Banking Committee Asif Jooma - Chairman Adnan Afridi - Member Ariful Islam - Member

Executive Management Team (EMT)

Asif Jooma Chief Executive Atif Aboobukar

Chief Financial Officer*

Nauman Shahid Afzal

Chief Operating Officer, Chemicals & Agri Sciences Business

Laila Bhatia Bawany

Chief Legal Officer & Company Secretary

Rizwan Afzal Chaudhry

Chief Operating Officer, Polyester Business

Himra Mursil1

Chief People Officer

Muhammad Umar Mushtaq

Chief Operating Officer, Soda Ash Business

Atif Siddiqui

Chief Operating Officer, Pharmaceuticals Business

*Alphabetised as per the last name

Chief Financial Officer

Atif Aboobukar

Company Secretary

Laila Bhatia Bawany

Head of Internal Audit

Khalid Munif Khan

Bankers

Al Baraka Bank (Pakistan) Limited Allied Bank Limited

Allied Bank Limited - Islamic Banking Group Askari Bank Limited

Askari Ikhlas - Islamic Banking Bank Al Habib Limited

Bank Al Habib - Islamic Banking Bank Alfalah Limited

Bank Alfalah Limited - Islamic Banking Group Bank Islami Pakistan Limited

Bank of Khyber Bank of Punjab

Dubai Islamic Bank Pakistan Limited Faysal Bank Limited

Habib Bank Limited

Habib Bank Limited - Islamic Banking Habib Metropolitan Bank Limited Habib Metropolitan Bank - Sirat Islamic MCB Bank Limited

MCB Islamic Bank Limited Meezan Bank Limited National Bank of Pakistan Samba Bank Limited

Standard Chartered Bank (Pakistan) Limited Standard Chartered Bank (Pakistan) Limited - Saadiq United Bank Limited

UBL Ameen

Registered Office

5 West Wharf, Karachi - 74000.

Tel: 111-100-200 / (021) 32313717-22 | Fax: (021) 32311739

Website: https://www.luckycore.com

Share Registrar

FAMCO Share Registration Services (Private) Limited 8 - F, Nursery, Block - 6, P.E.C.H.S

Shahrah-e-Faisal, Karachi.

Tel: (021) 34380101-5 | Fax: (021) 34380106

Website: https://www.famcosrs.com.pk

External Auditors

A.F. Ferguson & Co. Chartered Accountants

Legal Advisor

Imran Mushtaq & Co.

78 - B, Mozang Road (Opp. British Council), Lahore. Tel: (042) 36298185

1. Joined with effect from February 03, 2025.

Overview

Annual Report 2024-25 11

The Art of Shared Purpose

This section presents an overview of the organisational framework, leadership team, key highlights, guiding values, and an analysis of the broader macroeconomic environment.

As a partner of choice, Lucky Core Industries Limited aspires to build a strong local and international footprint through sustainable growth and by creating value for all

stakeholders.

Improving Lives across the socio-economic

fabric, through best-in-class solutions.

The Company lives by its values. In the expanding world of Lucky Core Industries Limited, its core values remain an enduring

constant. They are what define the Company.

Vision, Mission and Values

Code of Conduct

LCI has always adhered to the highest ethical standards in all its business operations. The Company's Code of Conduct captures its values and encompasses business principles and ethical standards that the Company is committed to upholding. It guides LCI every step of the way.

A detailed version of the Code of Conduct is available on the Company's website. As an integral part of the Company's onboarding process, all new employees are required to familiarise themselves with the Code of Conduct and submit a signed undertaking to comply with its principles.

Code of Conduct Principles

Company's Responsibilities

Equal Opportunities

LCI is committed to creating a conducive working environment for its employees. The Company recruits, hires and promotes employees solely on the basis of merit and suitability for the job, utilising objective and non-discriminatory criteria. The Company is committed to facilitating employees' individual and professional development through training/learning opportunities, along with coaching and mentoring.

Conducive Work Environment

LCI understands that openness, integrity, and reliability are essential to fostering bilateral communication. The Company does not tolerate harassment, discrimination of any kind or irregular conduct. LCI protects the privacy of its employees.

Health, Safety and Environment (HSE)

The Company provides a safe and healthy work environment to promote the wellbeing of its employees. It is the responsibility of each employee to comply with HSE programmes, rules and regulations applicable on all sites.

Corporate Social Responsibility (CSR)

LCI is committed to creating long-term value while recognising that sustainable profit and minimising impact on environment is essential for the continuity of its business.

Employee's Responsibilities

Compliance with laws

Employees must adhere to all applicable laws.

Practising Business Ethics

Employees must act at all times with honesty and integrity, maintain confidentiality and conduct themselves in a manner which reflects the Company's zero tolerance policy for bribery, money laundering and other forms of unethical business practices.

Acting in the Company's Best Interest

LCI's employees must at all times act in the Company's best interest and avoid putting themselves in a position where their personal interest conflicts with that of the Company.

Supporting Fair Competition

LCI supports the principles of free enterprise and fair competition. The Company competes vigorously but fairly, and within the framework of applicable competition laws. The Company expects its employees to compete lawfully and ethically.

Reporting Misconduct

Anyone who detects or suspects a case of fraud, deception or irregular conduct shall immediately inform the management.

Inside Information

LCI does not tolerate the improper use of non-public or inside information. Employees aware of inside information must treat it with confidentially and avoid unauthorised disclosures.

Lucky Core Industries Limited at a Glance

Company Overview

Lucky Core Industries Limited (LCI), a publicly listed Company incorporated in Pakistan, is a dynamic and diversified organisation that manufactures and trades essential products, supporting almost every sector of the economy. Reflective of its mission,

the Company works towards improving lives across the socioeconomic fabric of Pakistan.

A Legacy of Progress

With a rich legacy spanning over eight decades, the Company's origin predates the formation of Pakistan itself. Commencing operations from a small trading concern with a single

manufacturing unit located in Khewra, the Company has transformed over the decades into one of the largest industrial conglomerates in the country.

About Yunus Brothers Group

LCI became a part of the Yunus Brothers Group (YBG) in 2012, following the sale by ICI Omicron B.V. of its shareholding in the Company. Established as a trading house in 1962, YBG has transitioned into one of the fastest growing and most prolific conglomerates in the country, with diversified interests in cement, textiles, chemicals, real estate, power generation and automobiles.

Diversified Business Portfolio

LCI's operational strength lies in its diverse business segments, each playing a pivotal role in collectively driving economic growth and social advancement. LCI's businesses include:

Soda Ash Business

A key domestic producer of high-quality soda ash, the business serves as a critical raw material for industries such as glass, paper, detergents, and textiles.

Pharmaceuticals Business

Focused on delivering trusted healthcare solutions, the business delivers high-quality products to meet diverse healthcare needs.

Polyester Business

Engaged in the manufacturing of Polyester Staple Fibre (PSF), the Polyester Business supports the textile sector by providing an essential input for yarn and fabric production.

Animal Health Business

Committed to enhancing livestock and poultry health, the business offers veterinary solutions to support the country's poultry and livestock industries.

Chemicals & Agri Sciences Business

Supplying industrial chemicals alongside crop protection and plant nutrition solutions, this business addresses the evolving needs of both industrial clients and the agricultural sector.

Export Footprint

In addition to its strong domestic presence, LCI maintains a growing international footprint through its export operations. The Company's commitment to quality, innovation, and reliability has enabled it to serve customers across diverse global markets.

People and Location

Total Workforce

2,500+

Manufacturing Sites

8

LCI continues to rise as an employer of choice, nurturing a highly diverse and inclusive workforce. The Company operates across Pakistan, with several key manufacturing facilities in Sindh, Punjab and KPK province, as well as extensive sales and distribution networks nationwide.

Geographical Presence

Islamabad

Head Offices and

Corporate Offices

Hattar

Sheikhupura

Lahore

Plants and Manufacturing Sites

Regional and Business Offices

Peshawar

Khewra

Faisalabad

Sahiwal

Multan

Sukkur

Hyderabad

Karachi

A Year in Highlights

Financial Highlights

on an Unconsolidated Basis

In line

with SPLY

Net Turnover

vs SPLY

Operating Result

4%

vs SPLY

Profit after Tax

4%

vs SPLY

Earnings Per Share

4%

PKR

million

Capital Expenditure

14,029

AA/A1+

Credit Rating

Non-Financial Highlights

2,500+

Number of Employees

53,000+

Total Training Man Hours

29,000+

tonnes

Neutralised Through Sustainability Initiatives

of CO2Emissions

PKR

million

Invested in Community Uplift Programmes

96.2

4.28

Employee Engagement Index

Group Structure

Lucky Cement Limited

55%

Lucky Core Foundation

(a Section 42 Company)

100% 100% 51% 22.2%

....................................................... Subsidiaries ....................................................... ........Associates ......

Lucky Core PowerGen Limited

Lucky Core Ventures (Private) Limited

Lucky TG (Private) Limited

NutriCo Morinaga (Private) Limited

100%

NutriCo International (Private) Limited