LUZCO Annual Report 2023

I AM THRILLED TO SHARE WITH YOU THE REMARKABLE ACHIEVEMENTS OF LUZCO TECHNOLOGIES LLC (LUZCO) THROUGHOUT 2023 AS WE REFLECT ON THE PAST YEAR, IT IS WITH IMMENSE PRIDE AND GRATITUDE THAT I EXTEND MY HEARTFELT APPRECIATION TO EACH OF YOU FOR YOUR CONTINUED SUPPORT AND COLLABORATION

AT LUZCO, WE ARE COMMITTED TO EXCELLENCE IN EVERYTHING WE DO, AND I AM DELIGHTED TO ANNOUNCE THAT OUR DEDICATION HAS BEEN RECOGNIZED ON MULTIPLE FRONTS IN 2023, WE WERE HONORED BY THE EDISON ELECTRIC INSTITUTE AS THE DIVERSE SUPPLIER OF THE YEAR, A TESTAMENT TO OUR COMMITMENT TO DIVERSITY AND INCLUSION. WITH A WORKFORCE COMPRISED OF 66% DIVERSE INDIVIDUALS, WE NOT ONLY DELIVER HIGHQUALITY WORK BUT ALSO FOSTER AN ENVIRONMENT THAT CELEBRATES AND VALUES DIVERSE PERSPECTIVES

ADDITIONALLY, LUZCO WAS RECOGNIZED AS ONE OF THE TOP 10 MOST PHILANTHROPIC PRIVATE COMPANIES IN OUR AREA THIS RECOGNITION UNDERSCORES OUR DEEPROOTED FAMILIAL VALUES AND OUR UNWAVERING COMMITMENT TO MAKING A POSITIVE IMPACT IN OUR COMMUNITY. OUR ETHOS OF CARE EXTENDS BEYOND THE WORKPLACE, AND WE ARE PROUD TO SERVE AS A BEACON OF COMPASSION AND GENEROSITY

FURTHERMORE, WE WERE HUMBLED TO BE ACKNOWLEDGED BY THE ST LOUIS BUSINESS JOURNAL AS THE 3RD FASTEST-GROWING COMPANY IN STL THIS RECOGNITION IS A TESTAMENT TO THE STRENGTH OF OUR LEADERSHIP, THE RESILIENCE OF OUR TEAM, AND OUR UNWAVERING DEDICATION TO DRIVING INNOVATION AND GROWTH

IN 2023, WE EMBARKED ON SEVERAL TRANSFORMATIVE INITIATIVES AIMED AT ENHANCING OUR CAPABILITIES AND EXPANDING OUR REACH FROM INVESTING IN A COMPREHENSIVE BRAND CAMPAIGN TO REMODELING OUR OFFICES FOR ENHANCED COLLABORATION AND SUSTAINABILITY, WE HAVE POSITIONED OURSELVES FOR EVEN GREATER SUCCESS IN THE YEARS AHEAD.

LOOKING FORWARD TO 2024, WE ARE EXCITED TO EMBARK ON NEW VENTURES AND INITIATIVES THAT WILL FURTHER ELEVATE OUR SERVICE OFFERINGS AND EXPAND OUR FOOTPRINT WE ARE POISED TO LAUNCH OUR INNOVATIONS COMMITTEE, EXPAND OUR PRESENCE IN THE GROWING ROCHESTER OFFICE, AND PENETRATE THE DYNAMIC TEXAS MARKET THESE INITIATIVES REPRESENT THE NEXT CHAPTER IN OUR JOURNEY

IN CLOSING, I AM DEEPLY GRATEFUL FOR YOUR SUPPORT AND PARTNERSHIP, WHICH HAVE BEEN PIVOTAL TO LUZCO'S SUCCESS AS WE LOOK AHEAD TO 2024, I AM EXCITED ABOUT THE OPPORTUNITIES THAT AWAIT US AND EAGER TO CONTINUE OUR JOURNEY TOGETHER

Lusnail Rondón Haberberger Founder/CEO

“ We are more excited than ever for the road ahead ”

- Lusnail Haberberger, CEO

EEI

Diverse supplier of the year

NYPA

Started our journey with NYPA Protégé Program

#3

Fastest growing Private Company in St. Louis

#15

St Louis Largest Philanthropist Small Co #22

St Louis Largest Minority Owned Business #30

St Louis Largest Women Owned Business

20%

Increased total Employees by 20%

+2 Offices

Two new offices openedRochester, NY & San Antonio, TX

+2 Capabilities

Distribution Underground Design and Construction Management was added to our Capabilities

IN 2023, LUZCO EXPERIENCED REMARKABLE GROWTH, MADE POS INCREDIBLE LUZCO FAMILIA WE'RE IMMENSELY PROUD OF OUR C ACHIEVEMENTS AND THE POSITIVE IMPACT WE'VE MADE AS WE L TO 2024, WE'RE FILLED WITH EXCITEMENT AND ANTICIPATION FO OPPORTUNITIES THAT LIE AHEAD. TOGETHER, WE'VE DEMONSTRA POWER OF COLLABORATION AND DEDICATION, AND WE'RE EAGE CONTINUE OUR JOURNEY OF SUCCESS AND GROWTH AS A TEAM

Program Delivery

Program Delivery Department Placed a total of 86 projects in service

Substation

Substation department completed 19 substation rebuilds

T&D

Designed3transmissionlines

Designed4Distributionlines

Performed450+poleinspections&replacements

Designed&Installed2000+smartmeterdevices

Inspected4000+pointsforrequiredclearances

SSIBLE BY OUR COLLECTIVE LOOK AHEAD OR THE ATED THE R TO

ENTREPRENEURIAL OPERATING SYSTEM (EOS)

WEBSITE REBRAND

We updated our website to reflect LUZCO's growth and evolution as a company This refresh improves user experience, showcases our latest capabilities, and reinforces our brand identity It's a crucial tool for engaging with our clients and future employees. We are excited to present this fresh look, marking the next phase of LUZCO's journey

OFFICE REMODEL

LUZCO Headquarters has undergone a significant remodel to accommodate our growth. Our previous layout accommodated 71 individuals. With the new layout, we can now accommodate up to 122 individuals, representing an impressive 71% increase in capacity This remodel reflects our commitment to providing a comfortable and productive workspace for our expanding team.

3-5-10

Over the past six years, LUZCO h we are determined to sustain this our vision for continued expansion and success, we have established ambitious goals that outline our direction for the next phases of our journey These goals, ranging from short-term to long-term objectives, are clearly defined and accessible to every member of our LUZCO Familia With a shared understanding of our collective aspirations, each individual within our organization is dedicated to contributing their utmost effort and expertise towards realizing these goals

2027

2029

·Employing 250 full-time equivalents (FTE)

·Serving 5 recurrent clients

·Deploying 5 FTE in construction services

·Establishing LUZCO University internally

·Recognition in Fortune 100's best places to work

·Initiation of a Scholarship Program

2034

Fostering a people-centric company culture

Growing to 350 full-time employees

Providing Engineering Solutions and Projects benefiting 10% of the US Be a national leader in engineering consulting and management services

·Aiming to be a global leader in engineering consulting and management services

·Providing Engineering Solutions and Projects benefiting 50% of the US

·Expanding the LUZCO team to 500 employees

·Establishing a dedicated headquarters and property ownership for LUZCO

·Evolving into a people-centric international company

·Pledging $1M in donations

REDIFINING OUR VALUES

In 2023, we refined our values to embody our essence past, present, and future This ensured alignment with our identity, achievements, and aspirations, fortifying our foundation for sustained success

Leadership

Embedded within LUZCO's foundation is our dedication to leadership. Leadership is not just a value; it's our guiding principle. We embody leadership through transparency, grit, integrity, accountability, agility, and entrepreneurship These qualities define our approach and empower us to navigate challenges effectively, deliver exceptional results, and foster a culture of innovation

Familia

At the foundation of all we do is our sense of “Familia” or family orientation. Our family-friendly environment supports and encourages our team members’ quality of life. This sense of “Familia” allows our diverse, innovative team to work together to overcome obstacles and provide the very best solutions for our clients.

Diversity

We value diversity and the perspectives of all people. We value a variety of professions with broad expertise and unique ways to approach the same problem.

Our Values In Action

At LUZCO, our employees are our greatest asset We prioritize investing in their personal and professional growth, guiding them into becoming exceptional leaders Our belief in the power of development and support is unwavering. We're immensely proud of our LUZCO Familia, whose dedication and talent drive our success Together, we cultivate a culture of excellence and empowerment, ensuring every Familia member thrives

ZCO UNIVERSITY

023, we conceived the concept of LUZCO University as a beacon of tinuous learning and development At LUZCO, we strongly advocate ong learning, witnessing its profound benefits for our staff both fessionally and personally We believe curiosity drives individuals to k new knowledge and skills, with challenging experiences fostering wth and expertise Inspired by "Everybody Matters," we prioritize ctive communication to instill our core values throughout our organization. LUZCO University, though in its early stages, aims to be a comprehensive resource hub offering industry events, university courses, and a repository of publications and technical training

Additionally, we are developing a library of resources for professional and leadership development, starting with a book club centered on our core values These initiatives empower our staff with tools for growth With LUZCO University, we envision endless opportunities to nurture great leaders, aligning with our mission of continuous improvement and excellence

Y,

AND INCLUS

launched with the ree employees T ong professionals

first-generation immigrants) from 28 different countries. ve a diverse workforce where 40% are women, and 7% LUZCO has offices in Chicago, Kansas City, Rochester, Plains, and our headquarters in St. Louis.

d a person ’ s educational and professional background b candidates, and we do not shy away from work visa

ouse skilled engineers, non-engineers, and engineers in training from numerous countries We seek diversity, integrity, accountability, transparency, entrepreneurship, agility, and grit. Our team is our familia. Therefore, we work tirelessly to support our familia members’ ideas and suggestions, as well as their personal growth and their work-life balance

LUZCOMMUNITY

In 2023, LUZCO demonstrated its commitment to community betterment by allocating $100,000 to support 21 non-profit organizations Our philanthropic endeavors are multi-faceted, targeting key areas such as fostering STEM education for children and young adults, promoting cultural diversity, improving health in underserved communities, facilitating workforce placement in marginalized areas, and encouraging community service initiatives. Among the organizations we've proudly supported are Casa de Salud, The Little Bit Foundation, and the International Institute of St Louis, each making significant strides in their respective fields

Additionally, our contributions to entities like Junior Achievement, Boys & Girls Club of Greater St. Louis, and the Missouri Colleges Fund Inc. reflect our dedication to empowering future generations Additionally, we have supported St Patrick Veterans Center, Women Foundation of St Louis, the Immigrant Home Association, the Hispanic Chamber of Commerce, YMCA Kirkwood, the International Dyslexia Association, Operation Food Search, Hard Hats for Heart and Food Outreach LUZCO is recognizes that we have to work together to improve and grow our communities

LITTLE BIT FOUNDATION

it Foundation’s purpose is to help remove the barriers to learning while students’ confidence, dignity, and all the other qualities that lead to ZCO provided a school supply drive last year and partnered with The undation to fund Danforth Elementary School with the FIRST Lego mpetition Besides funding Danforth’s Team, LUZCO mentored the team build process and competition Last year ’ s theme was “Super which focused on sources of energy, how we use it, and the impact of choices So perfect!

T ROBOTICS

global nonprofit organization that prepares young people for the future uite of life-changing youth robotics programs that build skills, and resilience LUZCO’s financial support for the 2023 Saint Louis as instrumental in keeping the event here for the local teams who ord to travel across the country or world to play LUZCO’s CEO and members actively engaged by volunteering and judging at the St Louis RST Robotics Competition, further bolstering the organization and participating teams during the competition day

hrough f poverty Housing mployees lies fordable about eriences, 10,000

Skid Steer ere to JA programs

LUZCO Sustainability

ecognize that climate change is one of the most significant challenges of t now and commit to creating a better future. LUZCO is announcing s and a pathway to reach carbon neutrality as part of this commitment able future

its business strategy with social responsibility and environmental g we do, from our processes and facilities to the services provided. The ss all our key stakeholder audiences to develop sound strategies, define lish targets integrated into our business plan

nability journey began with the relocation of our headquarters to a Silver y We sustain this commitment through features such as a heat island effect roof, energy and atmosphere optimizations, and water efficiency measures

Additionally, LUZCO prioritizes the preservation of interior non-structural components in our new facility, along with the use of 98% recycled materials and reclaimed office furniture. We are committed to reducing our carbon footprint through a series of initiatives to align with our Environmental, Social, and Governance (ESG) goals While our primary focus is on providing services rather than producing products, we recognize the importance of minimizing our environmental impact. Below are the key steps we are taking in each category.

thics and Compliance program, fully aligned with LUZCO’s core standards of our services and total alignment with national

CO’s commitment to environmental sustainability, social overnance, reinforcing our dedication to positively impacting our immediate surroundings and the world we live in.

IN 2023, LUZCO WON THE EDISON ELECTRIC INSTITUTE (EEI) DIVERSE SUPPLIER AWARD. DURING THEIR ANNOUNCEMENT, EEI PRESENTED LUZCO WITH THE FOLLOWING REMARKS, "THIS AWARD IS PRESENTED TO A DIVERSE SUPPLIER THAT PERFORMS SUPERIOR WORK AND CHAMPIONS DIVERSITY, EQUITY, AND INCLUSION LUZCO TECHNOLOGIES HAS A TRACK RECORD OF PROVIDING SUPERIOR SERVICE TO ITS CLIENTS, DEMONSTRATING FLEXIBILITY TO SCALE QUICKLY, ACQUIRING EXPERIENCED ENGINEERS, AND DIVERSIFYING CAPABILITIES.

ANOTHER IMPRESSIVE FEATURE THAT HELPED DISTINGUISH LUZCO TECHNOLOGIES AMONG THIS COMPETITIVE AWARD POOL HINGED ON ITS ABILITY TO BUILD A STAFF THAT IS 67 PERCENT DIVERSE THE COMPANY OFFERS SUPPORT FOR EMPLOYEES’ PROFESSIONAL AND PERSONAL GROWTH, ALL WHILE STRIVING TO MAXIMIZE WORK-LIFE BALANCE

“THIS YEAR’S BUSINESS DIVERSITY AWARD WINNERS HAVE SHOWN OUTSTANDING LEADERSHIP THROUGH THEIR EFFORTS TO PROVIDE AN INCLUSIVE AND DIVERSE SUPPLIER NETWORK,” SAID EEI PRESIDENT TOM KUHN. “THE SIGNIFICANT AND POSITIVE IMPACT THESE COMPANIES HAVE ON OUR MEMBER COMPANIES AND THE CUSTOMERS AND COMMUNITIES THEY SERVE IS VITAL EACH IS DESERVING OF THIS RECOGNITION, AND I CONGRATULATE THEM FOR LEADING BY EXAMPLE ”

WHEN KIRKWOOD ELECTRIC BEGAN TO ARRANGE STRATEGIC PLAN UPGRADES TO THEIR SYSTEM, LUZCO TECHNOLOGIES, LLC QUICKLY ROSE TO THE TOP OF THEIR LIST FOR ENGINEERING AND MANAGEMENT SERVICES.

IN APRIL 2022 LUZCO AND KIRKWOOD BEGAN

UPGRADING THE DISTRIBUTION SYSTEM FROM 4,160V TO 12,470V THIS PROJECT INCLUDES REBUILDING THE SUGAR CREEK SUBSTATION, REPLACING TWO FUSED TRANSFORMERS AND SWITCHGEAR LINEUPS WITH NEW 34 5KV CIRCUIT SWITCHERS, 16 8/22 4 MVA TRANSFORMERS, AND 15 KV METAL-CLAD OUTDOOR SHELTERED-AISLE SWITCHGEAR. THE NEW SWITCHGEAR WILL BE EQUIPPED WITH SEL751 RELAYS WITH ARC-FLASH DETECTION. LUZCO PREPARED THE POWER SYSTEM STUDIES, CONCEPTUAL DESIGNS, AND EQUIPMENT SPECIFICATIONS, AND IS PERFORMING THE PROJECT MANAGEMENT AND DETAILED DESIGN.

ACCORDING TO LUZCO, THESE UPGRADES WILL REDUCE DISTRIBUTION SYSTEM LOSSES AND IMPROVE RELIABILITY WITH ENHANCED PROTECTION ALGORITHMS ALONG WITH UPGRADING THE EXISTING AGING INFRASTRUCTURE. THE NEW SWITCHGEAR WILL PROTECT WORKERS’ SAFETY BY REDUCING POTENTIAL EXPOSURE TO INCIDENT ENERGY AND THE PROJECT MANAGEMENT AND DESIGN WILL REDUCE LONG-TERM OPERATION AND MAINTENANCE COSTS

LUZCO AND KIRKWOOD ARE ALSO WORKING TOGETHER ON MODERNIZING THE STREET LIGHTING SYSTEM TO LED LIGHTS, INSTALLING NEW SERVICE EXTENSIONS FOR REDEVELOPMENT PROJECTS, AND INSTALLING NEW EV CHARGING FACILITIES THE BULK OF THE WORK IS EXPECTED TO BE COMPLETED BY FALL 2025 AND IS ESTIMATED TO COST $15 MILLION

“KIRKWOOD ELECTRIC’S PERFORMANCE ON THESE PROJECTS HELPS KIRKWOOD’S ECONOMIC VITALITY, QUALITY OF LIFE AND ENVIRONMENTAL STEWARDSHIP,” SAID MARK PETTY OF KIRKWOOD ELECTRIC. “LOW-COST, RELIABLE SERVICE DELIVERY REQUIRES THE APPLICATION OF BEST PRACTICES AND THE LATEST TECHNOLOGY ”

LUZCO SAYS THEY ENJOY WORKING WITH MUNICIPALITIES BECAUSE IT GIVES THEM THE OPPORTUNITY TO WORK CLOSELY WITH THE COMMUNITY IT’S A RELATIONSHIP THAT KIRKWOOD ELECTRIC APPRECIATES, AS THEY’VE BENEFITED FROM LUZCO’S INTIMATE KNOWLEDGE OF THE BEST PRACTICES, EQUIPMENT SPECIFICATIONS, MATERIAL LEAD TIMES CURRENTLY EXPERIENCED IN THE INDUSTRY, AND SEASONED STAFF

“I WOULD RECOMMEND LUZCO TO OTHER MUNICIPALITIES BECAUSE PARTNERING WITH LUZCO HELPS MUNICIPAL UTILITIES PROVE THAT OUR CONCEPT CAN DELIVER TO OUR CUSTOMERS EXACTLY WHAT THEY NEED,” SAID PETTY “LUZCO TREATS US AS A PRIORITY CLIENT, FILLS OUR MIDDLE MANAGEMENT NEEDS, HELPS US TO INSTITUTIONALIZE THE KNOWLEDGE OF OUR SYSTEM, KEEPS OUR PROJECTS ON TIME AND KEEPS THE PROJECTS UNDER BUDGET IT’S JUST THE TEAMMATE A MUNICIPAL UTILITY NEEDS TO COMPETE WITH THE OTHER UTILITIES IN OUR BUSINESS ”

LUZCO TECHNOLOGIES IS PROUD TO BE A MINORITY BUSINESS ENTERPRISE (MBE), A WOMEN BUSINESS ENTERPRISE (WBE), A WOMEN-OWNED SMALL BUSINESS ((WOSB), AND A DISADVANTAGED BUSINESS ENTERPRISE (DBE). LUSNAIL HABERBERGER LAUNCHED LUZCO IN 2017 IT HAS SINCE GROWN INTO AN AWARD-WINNING BOUTIQUE ENGINEERING FIRM, OFFERING SERVICES IN TRANSMISSION AND DISTRIBUTION LINE DESIGN (500KV-4KV), SUBSTATION ENGINEERING (500KV-4KV), PROJECT MANAGEMENT, COST CONTROL & SCHEDULING, DATA ANALYTICS, ENVIRONMENTAL SUPPORT AND LEAN SIX SIGMA TRAINING.