Sustainability Report 2023

TripluRO (3RO) We are still working to achieve our ambitious goal of reaching 60% of the assortment on sale in PENNY stores to belong to the TripleRO (3RO) (3RO) assortment: to have the main ingredient come from Romania, i.e. to be grown, grown, extracted or manufactured in the country and to be processed and packaged in Romania. We continue the development of our TripleRO (3RO) (3RO) assortment, which supports national producers through products whose main ingredient comes from Romania. At the end of 2023, 3RO accounted for 39.17% of the assortment on sale in PENNY stores, with over 800 products flagged on the shelf. This initiative not only allows us to develop a sustainable portfolio for our clients, but also to support the national economy. Thus, under this umbrella, we continued our partnership with the Academy of Economic Studies, through which we initiated the study "Strategies for balancing Romania's trade balance by stimulating and supporting national production". The purpose of this study was to develop local business solutions in the fields of agriculture and the production of consumer goods. Together with our partners, we have identified over 200 products that are either not found in Romania or are not at the quality and quantity desired by our customers. For 3 months, we continually discussed with local producers, professional associations, and competent authorities about the categories of products that can have a significant contribution to Romania's trade balance in the medium and long term. ASE facilitated the organization of 7 round tables at the Government and at its own headquarters to discuss the current situation and development opportunities for each product category concerned. The conclusions of the study, as well as all the information related to the categories of products concerned, were analyzed by ASE in a complex study that can be consulted on the ASE website or in the presentation brochure. This ambitious initiative clearly demonstrates how important it is to harness Romania's production potential, add value locally, and ultimately meet consumers' needs. What does 3RO mean? z The main ingredient comes from Romania, i.e., the ingredient that represents the largest relative share (%) in the volume of the final product, as shown on the product label, has been grown, produced, grown, extracted or manufactured in Romania. z The product is processed in Romania, processing being understood as an action that modifies the original ingredient/product, including by heating, smoking, salting, baking, freezing, drying, marinating, extracting, extruding, mixing, processing, diluting or a combination of these processes. z The product is packaged in Romania, i.e., the product has been placed in packaging, be it primary, secondary, or tertiary, on the territory of Romania. Of this TripleRO (3RO)? z Response to the customer's need: according to surveys, Regionality and local products is the third shopping criterion by price and promotion, while we position ourselves as the "Fresh neighborhood discounter that best understands Romanians" z Added value for communities: we want to contribute to reducing the deficit of 5 billion Euros in processed agri-food products, according to Romania's trade balance z Short supply chain translates into freshness and better availability of goods z Sustainability: we want to reduce our carbon footprint and create value for communities We will continue to promote the creation of local value through the continuous expansion of TripleRO (3RO) products. In this way, as well as by clearly labeling these products on the shelf in our stores, we implement our commitment to promoting local products. To encourage our customers to buy local products, we promote the TripleRO (3RO) (3RO) initiative, through actions such as: z Indication on the price label that the product is part of the 3RO category. z Highlighting 3RO products in periodic flyers. z Communication campaigns in which local suppliers share their success stories and discuss the general partnership with PENNY companies, various promotional campaigns that promote the purchase of 3RO products. z Gradually increasing the share of 3RO products on the shelves. SUSTAINABILITY REPORT PENNY ROMANIA 2023 112/256 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

RkJQdWJsaXNoZXIy MjUyMDg2Nw==