Sustainability Report 2023

Private Label We are constantly improving our private label assortment by continuously adapting to the needs and preferences of our customers. With the support of our highly valuable marketing team, we provide our customers with detailed information to help them make informed purchasing decisions. We continuously improve our product recipes and production technologies and quality by analyzing the results of laboratory tests and sensory evaluation. In addition to providing high-quality private label products, it is equally important to provide accurate product information and labels. The private label team is responsible for drafting and approving the necessary specifications. When selecting a label design, we always think about how to ensure that all essential information is conveyed to customers effectively, such as, for example: the origin of some product ingredients or instructions on product disposal and environmental or social Transparency and responsible communication Because we are committed to supplying sustainable products at fair prices, we aim to integrate sustainability into all our operational activities, from the development of the products in the portfolio to the operation of our sites. In this regard, we have made substantial efforts in recent years to develop our sustainability performance, and we want to communicate these achievements to all our consumers. For this reason, and considering the importance of marketing practices in the retail field, communication is a dimension of particular importance for us, which is based on two main directions: z Transparency We communicate transparently, not only in our commercial messages, but also in terms of presenting our results and performance. We implement the principle of transparency and fairness in all our communication and marketing activities. z Consumer education We strive to bring added value across the entire value chain, especially in the lives of our customers. We hope that our initiatives to promote sustainability and propose a healthy lifestyle will have positive impacts on the lives of our customers. To develop effective and responsible communication and marketing activities, both to external and internal stakeholders, we collaborate with professional teams in the field of communication and have internal experts within the marketing, human resources and corporate communication teams and departments. Another dimension of communication for our company is that of collaboration with various partners throughout our value chain. Both we and our partners comply with the legal provisions regarding consumer protection and information and marketing and sales practices. We aim to ensure that all our suppliers are informed about the quality rules we require and that they make every effort to comply with them. We are transparent about everything that involves the development of brands and the marketing of our products. Communication with customers is mainly done through marketing campaigns, but we always keep an open channel through which they can contribute with observations, improving methods and complaints to our activity. More information in the section "Complaints management" in the subchapter "Governance and sustainable management". Through marketing campaigns, we aim to promote our products and the PENNY brand, but also to communicate all our efforts regarding sustainability. We promote our products in strict accordance with legal requirements as well as ethical and cultural standards. Following the principles of truth, accuracy, and transparency, we apply our own company-wide code of conduct, which is aligned with the regulations, guidelines and norms established by the National Audiovisual Council. In 2023 there were no incidents of non-compliance regarding the marketing campaigns in which PENNY was the organizer. Regarding other types of violations of marketing communications, we were faced with two specific situations in which we were sanctioned because in a PENNY store the campaign extension information for an item was not displayed, and in another PENNY store it was found by the competent authorities that the active promotion for a non-food item was not displayed in a clear way. Another form of communication with our customers is the one carried out in stores, through which we inform them about: z product specifications or properties (in addition to mandatory legal conditions related to labelling), such as the inclusion of recycling icons for private labels, with educational messages regarding separate collection z exclusive offers, contests or other PENNY initiatives and news, by broadcasting its own radio station in stores SUSTAINABILITY REPORT PENNY ROMANIA 2023 82/256 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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