Sustainability Report 2023

Organizational governance structure The PENNY Romania team is organized into management structures and execution structures. As of 2023, apart from the Chief Operating Officer (Marek DOLEŽAL) and Chief Financial Officer (Raffaele BALESTRA), and the Head of Legal Department (Emilia Stanciu), all other members of the team have an individual employment contract with REWE (România) S.R.L., registered in Romania *. Management structures are defined as those structures that are responsible for activities related to planning, organizing, leading, controlling processes and resources, setting and achieving specific objectives for the activities they coordinate, aligned with the company's strategic objectives. On the other hand, the execution structures are made up of all the other employees of the company, who are not part of the management category, and who carry out their activity according to the duties established by the management. Thus, managers are responsible for achieving the goals and objectives of our company, by managing its resources (human, financial and operational). Managerial duties include, but are not limited to: z leading the teams they coordinate, z setting individual targets for those teams, analyzing performance, z decision-making and continuous review and improvement of performance. In the 2022 Sustainability Report, we defined the Board of Directors as consisting of the CEO, CFO and COO, but we now want to provide a more detailed explanation for this concept. Since REWE (România) S.R.L. is not a joint-stock company and since within our organization there are no members with voting rights who can vote for the implementation of a board that represents their interests, it cannot be considered that at the level of our company there is a proper Board of Directors. Thus, in the case of our organization, the organizational governance structure can be defined as the PENNY Romania Executive, Directorial and Managing Board (Management Board). This structure is made up of Executive Directors (CEO, COO and CFO), Department Directors (Heads of Departments), Managers directly subordinated to an Administrator (Department Managers) and the Individual Management Structure with Transversal Role within REWE Romania. This structure, coordinated by top management, is responsible for the administration of the company, setting development directions, policies and strategies, as well as supervising their correct implementation. All management structures follow the responsibilities mentioned above, differentiating themselves by the size of the purpose of application and the number of people they coordinate. For example, while the Executive Directors / Directors (CEO, CFO, COO) have responsibilities related to setting strategic objectives for the entire company, the Department Directors and Managers reporting directly to one of the three General Managers / Executive Directors have responsibilities for setting specific targets for the departments they coordinate, which contributes to the achievement of the general objectives set at the company level. This form of scaling of responsibilities goes up to the level of Store Managers and Team Leaders in Logistics Centers, who are responsible for setting and tracking local targets at the store level and organizing operational, financial and human resources at the store level to achieve the desired performance. * REWE Projektentwicklung Romania S.R.L. has no employees SUSTAINABILITY STEP BY STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY GRI & SASB INDEX ASSURANCE OF SELECTED NON-FINANCIAL INDICATORS

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