Sustainability Report 2023

REGIONALITY AND LOCAL PRODUCTS EXPLANATION OF THE IMPACT Regional uneven growth remains a major impediment to the sustainable progress of the national economy, and the diversification of economic activities at regional level is essential to achieve the Sustainable Development Goals and reduce disparities between regions. We focus on sourcing products from regional suppliers and establishing long-term partnerships with them. An essential element of our strategy remains the development of the "TripleRO (3RO)" (3RO) assortment, which includes processed, packaged products with the main ingredient from Romania. By offering a regional assortment, we support local producers, contribute to improving the living conditions of Romanian farmers and local farms, and, indirectly, of the communities around them. To maintain a positive impact, we strive to be as connected as possible with the communities in which we operate, by providing regional products and through our private labels that respect traditional Romanian recipes. HOW WE CONTROL THE IMPACT To meet the expectations of our customers and, at the same time, to contribute to the strengthening of the national economy, we choose our commercial partners according to the type of products they offer. Our current collaborations with local suppliers guarantee us access to a permanent assortment of fresh and regional products that are appreciated by customers, such as bread, fruit, vegetables, or meat. We are continuously committed to increasing the proportion of regional products available at affordable prices. In addition, we pay special attention to the development of our private labels, which support Romanian producers and capitalize on traditional food products, representing a crucial factor in the advancement of the rural food sector. OUR IMPACT AND PERFORMANCE IN FIGURES Our long-term partnership with suppliers in the region is based on stability, fair prices, professional competence and, finally, on the economic viability of the company. The improvement of commercial relations with these suppliers is carried out through a gradual process, involving multiple stages, which may include the creation of product formulas that are successful in the market or the development of rigorously developed business schemes. This year we recorded an increase compared to last year's portfolio of almost 3.5% of local suppliers in Romania, representing over 90% of all our suppliers. In addition, over 86% of the 2023 procurement budget was used for products from suppliers in Romania. SUSTAINABILITY REPORT PENNY ROMANIA 2023 108/256 MESSAGE FROM THE GENERAL DIRECTORS SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES CONTENTS

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