Sustainability Report 2023

2022 68.40% 2023 67.17% -1.80% Share of suppliers cooperating with PENNY Romania on a long-term basis In the current context of the consumer goods industry, where the global availability of products at any time and in any quantity is the norm, we are witnessing an opposite trend gaining ground. Regional and local products enjoy an ever-growing popularity among modern consumers. They are becoming more demanding, wondering about the exact nature of the products that end up in their shopping carts, and concerns about nutrition and health have gained increased awareness in recent years. Regionality plays a key role in sustainability and transparency: short transport distances and familiarity with cultivation and processing areas give authenticity and trust. The regional product is defined as a finished product that comes from a specific region, where the raw materials necessary for its manufacture are also produced. In the context of our activity, for us, a regional product is one that is manufactured in Romania. Local products are defined as those products grown or manufactured within a radius of 100 km from the point of sale; they come mostly from small suppliers or farmers who directly deliver to a limited number of markets at regional level. We consider local products to be goods that meet the definition and that are distributed directly in PENNY stores, bypassing logistics centers. Total 42% < 5 years 26% 5-10 years 19% 10-15 years 13% > 15 years 265 165 130 93 36 26 7 3 National suppliers International suppliers  < 5 years  5-10 years  10-15 years  > 15 years Percentage of regional products (food + non-food) – from Romania (total) SUSTAINABILITY REPORT PENNY ROMANIA 2023 110/256 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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