LB Finance Sustainability | Navigating the Future

Value Creation

The main purpose of our business is to create value for our stakeholders. Doing so, calls for a proactive approach to understand how our business context is evolving, determine how these changes are impacting LBF’s value creation capacity and take actions to safeguard the interests of our stakeholders. For long term sustainability, LBF’s business model magnets from the six capitals and scorecard delivers us with the framework against which we reflect how we transform, increase or decrease capitals in generating value creation outputs.

Value Creation Indicators

Transforming the stocks of capital through our business activities, we create value by developing and distributing a range of innovative and reliable products and services.

Macro Dimension	Indicator	Measurement	2019/20	2020/21
Economic wellbeing	Economic value created Economic value distributed to: Depositors and Lenders Employees Government Shareholders	Rs. Million Rs. Million Rs. Million Rs. Million Rs. Million	43,30.14 13,218.85 2,986.63 5,014.32 -	6,148.39 11,125.01 2,955.81 4,651.00 1,662.17
Social wellbeing	Community development programmes Staff volunteered hours	Number Hours	12 20,131	22 5,764
Environment and landscape	Environment related projects Water consumption Water consumption per Rs. million of profit Trees planted/ distributed Trees saved from recycling Investment on green initiatives Paper recycled Energy consumption Energy per Rs. million of profit Total carbon footprint Total carbon footprint per Rs. million of profit	Number m3 m3 Number Number Rs. million Kg GJ GJ tCO2e tCO2e	5 39,793 7.67 34,853 94 9.54 5501 20,538 3.96 4,484 0.11	15 31,013 4.56 6,180 68 1.01 3986 15,418.08 2.27 3,110 0.10
Business sophistication	Total outlets Total branches CDM machines Branches outside western province Gold loan centres New outlets opened	Number Number Number Number Number Number	165 129 23 84 36 2	169 152 24 88 17 4
Infrastructure and quality of services	Investment on ICT Online transactions Investment on freehold land and building	Rs. Million Number Rs. Million	115.65 Over 400,000 230.13	46.40 Over 1,000,000 481.96
Employee wellbeing	Total workforce Employees hired Training programs carried out Investment on training and development Total training hours Average hours of training per employee Staff remuneration and benefits	Number Number Number Rs. Million Hours Hours Rs. Million	3,606 1,291 137 18.56 52,788 14.73 3,005.18	3,536 999 19 4.01 7,737 2.17 2,959.82
Reputation	Brand value (Brand Finance) Brand ranking (Brand Finance) Credit rating (Fitch Rating)	Rs. Million Number Rating	5,133 29 A- (lka)	6,237 25 A- (lka)
Customers	Total customer base Customer financial solutions	Number Number	Over 600,000 30	Over 600,000 31

Value Creation Management

LBF’s goal of value creation to its stakeholder has always kept the Company to leverage on building core strengths that have collaborated the Company’s capitals to the business domains.