Marinela CIOBAN Head of Financial Department Tax approach We aim to be economically successful in the long term and to conduct our business in a socially and environmentally responsible way. Our business activities have a direct impact on the area of taxation and public sector financing. By paying taxes, the state invests in society in various areas such as education, public infrastructure, healthcare, which long term also benefits our business. We act as a good citizen and pay our taxes fully and on time. We are convinced that tax compliance is an essential basis for the common good, for free societies and free markets. PENNY Romania's profits are taxed by Romania, the country where we carry out our relevant operational activity. Rejecting the artificial transfer of profits to so-called tax havens or other low-tax countries (e.g., via transfer pricing models) is a firm practice of the REWE Group, which has issued a Tax Compliance policy that applies to all foreign-based subsidiaries, including PENNY Romania. To this end, we use a tax compliance management system to ensure that the firm complies with the rules and therefore with legal regulations. We are committed to making full and timely financial disclosures. The REWE Group Management Board has overall responsibility for the management and control of tax matters and for compliance with legal and internal regulations throughout the Group. At local level, the Financial Accounting department is responsible for tax management and reports directly to the CFO. The amounts representing taxes and duties are calculated in accordance with the relevant legal provisions and accounting principles. Audits carried out by an auditing company are used for monitoring. More information on tax data is published in the annual report of the Directors. Tax information can be shared with both employees and other external stakeholders through PENNY Romania's reporting and complaints mechanisms, see also the Risk Management and Compliance section. 2022 was a good year for PENNY, the financial result being presented below: Depreciation and amortization increased, particularly for right-of-use assets held in relating to real estate, plants and equipment. We anticipate considerably higher revenue growth than in 2021, primarily due to the positive performance of existing stores, but also due to our plans to continue network expansion. In 2022, two of the main reasons for this economic performance were the increase in the number of PENNY stores and the increase in sales prices as a direct consequence of inflation. Taxes and related charges 99.98 million Euros Total investments 128.78 million Euros Employee salaries and benefits 96.09 million Euros 2022 economic growth compared to the previous year +24% CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY REPORT ASSURANCE GRI & SASB INDEX
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