Innovation and Digitalization PENNY digital loyalty cards registered an increase of +52.39% compared to the previous year. The percentage of transactions in which the loyalty card was used in 2023 out of the total transactions was 39% and 53% respectively in relation to the turnover. At the same time, the PENNY application is another way for our customers to benefit from offers, to be up to date with news and to participate in raffles and prize games. In this way, we try to use digitalization and innovation to offer our customers the most pleasant shopping experience possible. Our business depends on our customers, and our performance depends on meeting their needs. Thus, we continued loyalty campaigns in 2023 through which we wanted to reward loyal customers and attract new consumers. „The PENNY wheel” represents digital transformation through gamified content. In 2023, we organized the first Lucky Spin the Wheel campaign exclusively through the PENNY app. We have developed a series of raffle games that have given our customers the opportunity to win prizes in products. The PENNY Wheel game offered over 200,000 instant prizes to all PENNY app users, and PENNY Digital Card holders could participate twice a day. There were two editions in 2023, resulting in over 20 million games and 400,000 prizes offered. The PENNY flyer, from 2023, can be accessed directly on WhatsApp. After subscribing to this service, customers receive the offers free of charge every Wednesday morning (in some cases also on Thursdays). We have developed an integrated approach to improve our customers' experience, always keeping them up to date with our offers and promotions, paying special attention to digital marketing and search engine optimization measures. Methods used in the reporting year include: We are constantly working on improving the commercial range, internal processes, new communication, and payment tools as well as on the methods of streamlining online orders. The store infrastructure includes increasingly digital elements, and we continue to expand our digital commerce portfolio. At the same time, we strive to use technology to reduce our impact on the environment, as is the case with the digital flyer available on WhatsApp that aims to reduce paper consumption. Digitalization has applicability in a wide range of processes and can bring positive impacts in several business directions, such as consumer loyalty. It has already become a widespread practice in the retail industry to use loyalty cards to support customer loyalty. The PENNY loyalty card brings our customers a series of advantages and offers, registering in 2023 an increase of 13% in the average monthly number of PENNY cards used compared to the previous year. 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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