Board Evaluation - Halfords Group plc

A formal Board effectiveness review is conducted on an annual basis. This includes an assessment of the Board, its Committees and individual Directors.

FY22

Internal Evaluation

FY23

External Evaluation

FY24

Internal Evaluation

FY23 Evaluation Process

Step One

Online surveys issues to the Board members.

Step Two

Received and analysed the feedback with the Chair of the Board. The Chair produced a note of action points to be addressed, which was circulated to the Board members.

Step Three

The Chair of each Board Committee received the evaluation report in relation to their Committee, and time was arranged to consider the findings and agree an action plan.

Step Four

Implementation and monitoring of the action plans.

FY22 findings

The findings identified by the FY22 internal review are as follows:

Topic	FY22 Outcomes	Progress Made in FY23
ESG	To develop an approach to ensure a sustainable business for stakeholders.	In FY23, we continued our virgin plastic reduction programme (started in FY22), and we have now reduced 37.5% of our virgin plastic, achieved through reduction of packaging weight, swapping to alternative materials, or using recycled content). Halfway through the year, we made a full switch over to Adblue pouches, a much lighter plastic type, saving 95 tonnes of plastic. This will prevent 175 tonnes of plastic being used in FY24, representing over a 10% reduction of the plastic packaging we used in FY22 (1,600 tonnes). We improved oil bottle packaging by using 35% recycled content, saving 40 tonnes of virgin plastic. We swapped the oddpack range (700 products) over to 80% recycled plastic, saving over 10 tonnes of virgin plastic.
Diversity within the Board	To maintain and improve diversity on the Board in line with the Parker Review.	With the appointment of Tanvi Gokhale, we consider this progresses our compliance with the Parker Review.
Transformation across the business	To continue to support the transformation journey as we develop an omni-channel business that is agile and able to respond fully to the ever-changing needs of our customers.	We significantly progressed our strategic transformation in FY23. As we outlined at our Capital Markets Day in April 2023, we have created an omni-channel network, which will act as a platform to allow future growth. We believe this truly differentiates us from our competitors.

FY23 findings

The findings identified by the FY23 external review were as follows:

Topic	FY23 Outcomes
Strategy	To continue to focus on the delivery of the strategy creating value to shareholders. Continue the work on understanding Halfords' customers.
Board and Composition	Successful recruitment of a new Non-Executive Director ("NED") to replace Helen Jones, being mindful of the importance of diversity and Parker Review requirements. Review and develop the Board induction programme for the new NED. Introduce a more formal training programme for Board members and to aide in the delivery of the Group strategy.
Company Culture	Focus on Company culture to understand how this can be developed further to ensure delivery of the strategy is fully supported.