2024 Sustainability Report

2024 SUSTAINABILITY REPORT PENNY Romania REWE (Romania) S.R.L. 7 Bușteni Street, 077175 – Ștefăneștii de Jos, Ilfov

CONTENTS. Message from the General Management 4 Sustainability Milestones 6 The future is made today 8 About the REPORT 10 ABOUT US AND OUR VALUE CHAIN 12 SUSTAINABILITY STRATEGY AND GOVERNANCE 30 SUSTAINABILITY STEP-BY-STEP 40 Materiality analysis 41 Materiality Matrix 43 Stakeholder involvement 54 CORPORATE GOVERNANCE AND BUSINESS 58 Governance and Sustainable Management 60 Sustainable business model 76 Risk Management and Compliance 94 Cybersecurity 102 SUSTAINABLE ASSORTMENT 106 Regionality and local products 110 Ethics in supply chain processes 118 Animal Welfare 130 More sustainable packaging 134 Promoting healthy nutrition and sustainable assortment 140 ENERGY, CLIMATE AND RESOURCES 144 Energy efficiency 150 Climate change mitigation and adaptation 166 Conservation of resources 172 Logistics and Mobility 192 EMPLOYEES AND SOCIETY 196 Employees 200 Social involvement 236 GRI & SASB content INDEX 264

The main challenges we faced included adapting to macroeconomic, legislative and social trends, as well as managing resources in a context of climate change. We have set ourselves ambitious goals for the coming years, aiming to continuously improve our sustainability performance. Among the notable achievements in 2024 is the opening of 40 new stores, reaching a total of 416 units nationwide. These locations have been equipped with advanced eco-friendly technologies, including CO2 refrigeration systems and electric vehicle charging stations, demonstrating our commitment to the environment and customer convenience. In addition, we continued to support communities through sports and the promotion of a balanced lifestyle, while backing Romanian producers and local businesses by bringing more TripleRO (3RO) products to our shelves. Looking to the future, we are aware of the challenges ahead, but we are confident that together we can continue to make significant progress in sustainability. Every member of our team plays a critical role in achieving our goals. We invite you to explore the 2024 Sustainability Report, which details our achievements and commitments for the future. We wish you a pleasant read! Dear readers, 2024 was a year of progress for PENNY, marked by an increase in turnover and investments in Romania, as well as improvements in services for the millions of customers who choose us every day. We reached the milestone of 400 stores, inaugurated the first autonomous PENNY store globally, and started construction on the fifth logistics center. And in 2024, our team of more than 7 400 colleagues continued our commitment to sustainability, integrating this value into every aspect of our business. In this context, we have focused on managing our impact on the economy, the environment and society, also taking into account respect for human rights. Our vision and strategy were clearly defined in the short, medium and long term, through which we aimed not only to prevent negative impacts, but also to maximize positive ones. Our operational pillars remained the same in 2024: • SUSTAINABLE ASSORTMENT We have managed to offer our customers local and regional products, made responsibly, thus contributing to a healthy and balanced diet. It was based on good practices in supply chain optimization. • ENERGY, CLIMATE AND RESOURCES We have invested in energy efficiency and green buildings, implementing innovative solutions for electric mobility and monitoring of resource consumption. These initiatives have had a significant impact on reducing our carbon footprint. • EMPLOYEES AND SOCIETY We have been actively involved in the community, managing food waste and collaborating with organizations that support children and young people, as well as cultural and sports initiatives in Romania. Message from the General Management Management Team PENNY REWE Romania Daniel Gross CEO of PENNY Raffaele Balestra CFO of PENNY Dan Crișan COO of PENNY MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 4/276 MESSAGE FROM THE GENERAL MANAGEMENT

SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

Sustainability Milestones CORPORATE GOVERNANCE AND BUSINESS. SUSTAINABLE ASSORTMENT. Sustainability is found in our product portfolio! Sustainability is an integral part of our business! • 88.09% percentage of purchases from local suppliers • 870 products included in the Triplu RO assortment • 54% of suppliers have a contractual relationship with PENNY for more than 5 years • 70.8% proportion of food products of regional origin (from Romania) • 223 partner butcheries of local farmers and producers • 107 organic and special diet items sold • 292 newly developed items with FSC-certified secondary packaging • 416 operational stores • 1.90 billion Euros net income • 138.45 million Euros expenses with salaries and benefits for employees • 22.58 million Euros paid taxes • 6.85% market share* • 175.09 million Euros invested • 432 million Euros gross profit * Market share values for 2023 and 2024 confirmed by NielsenIQ for retail audit data reported to REWE Romania at the level of total Fast-Moving Consumer Goods (audited categories, excluding cigarettes). The data was approved by the Audit Committee and PrioBoard. (Copyright © 2024, The NielsenIQ Company). MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 6/276 SUSTAINABILITY MILESTONES

ENERGY, CLIMATE AND RESOURCES. EMPLOYEES AND SOCIETY. Sustainability guides us in establishing organizational culture and defining social initiatives in the community! Sustainability underpins the development of our efforts to decarbonize and streamline operations! *progresul prezentat se referă la evoluția indicatorului față de anul anterior (2022) • 18% reduction in CO₂eq emissions compared to 2019 • 9% decrease in specific electricity consumption • 9 747 MWh of green energy produced internally with 108 photovoltaic panel systems • 129 sites equipped with charging stations for electric cars • 37 618 thousand sqm of landscaped green spaces • 75 BREEAM certified BREEAM in use and another 39 in the process of certification • 22% reduction in the total amount of food waste generated compared to the previous year • 7 456 active employees at the end of the year • 69 thousand hours of training and education • 88% internal promotion rate for management positions • 322 women in management positions • 52% of employees in management positions with more than 10 years of experience in the company • Over 3 million Euros invested in local initiatives, collaborating with over 20 partner NGOs SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 8/276 THE FUTURE IS MADE TODAY

We develop our business in a responsible way, pursuing the implementation of sustainability principles in all our business activities, acting responsibly on the Romanian market and trying to contribute to the development of a sustainable business environment. We maintain the alignment of our strategic directions with the UN Sustainable Development Goals, in line with the targets set by the European Climate Pact. We aim for a better future for all and assume our part in this effort. For this reason, we aim to integrate sustainability principles into all our activities, including the governance of the organization. Because sustainable development is not an individual process, we are constantly striving to communicate with stakeholders and effectively identify their needs. Through joint actions and collaboration in the value chain, we can achieve results that support sustainable development for both the community and the business environment, while protecting the environment. Through our sustainability strategy, we want to contribute and create a sustainable business in the Romanian market and increase the quality of life of local communities. This vision is assumed in a collective way within our organization, both on the part of employees and management. All these aspects will be found in the actions and measures we present in this report, from our environmental protection measures, to those to mitigate climate change to social responsibility and support projects for local communities. We also want to present our progress on different performance indicators to readers by presenting the data and information we recorded in 2024 and comparing them where possible with the 2022 values. For an overview, the report provides information on: • Data on PENNY and the REWE Group, p. 12 • PENNY Romania Sustainability Strategy, p. 30 • Information related to our governance system, p. 58 • Information on our responsibility towards the assortment sold p. 106 • Information on our responsibility for the environment p. 144 • Information on our responsibility for people p. 196 Our motto: We save money, not love, brings us closer to our consumers in a responsible way by complementing in communication with: • „Saving money, not responsibility”, which brings our sustainability concerns to the fore • „We save time, not passion”, through which we once again communicate our commitment to our colleagues During this report, you will have the opportunity to discover how, guided by our sustainability strategy and objectives, we shape our initiatives to responsibly fulfill our business mission. We will highlight efforts to meet the demands of local communities and consumers, underlining our ongoing commitment to contributing to a better and more sustainable world. Acknowledgments We are committed to continuing our development in a healthy and responsible way in the years to come, always keeping in mind international standards for responsible business practices. We are grateful to all our partners for the collaborations and projects we have implemented together. At the same time, we thank our customers for choosing us, for their involvement in our initiatives dedicated to conservation of resources and beyond. Together, we can build a better future by creating synergies between our responsible business activities and the expectations of all stakeholders. As we have committed in previous years, we are very open to recommendations and will take into account all suggestions received from our stakeholders on different communication channels as part of the internal reviews carried out by Sustainability Committee. All our effort, progress and success are the result of the work of our talented and dedicated employees, whom we thank from the bottom of our hearts for their contribution. We continue to remain partners committed to developing a better and more sustainable future for all! Our effort, progress and success belong to our talented and dedicated employees. Thank you all in this way! Responsible for the BUSINESS SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

Purpose of the report As an integrated part of the REWE Group, we define ourselves as a chain of discount stores, committed to promoting a sustainable future. For us, this commitment translates into a low-carbon future, improved customer quality of life, efficient resource management, close supply chain collaborations, pollution mitigation and contributions to the local communities where we operate. We support the Sustainable Development Goals, in line with the commitments set out in the Paris Agreement. The report highlights our local initiatives, which are aligned with the directions of the REWE Group, but are strategically and operationally tailored to suit the particularities of the Romanian market. The purpose of the report is to present in a transparent and accountable way the results of our activities in the financial year 2024, and to reveal our progress and environmental, societal and governance (ESG) impacts. Reporting period Each year we produce and publish our sustainability report for the previous financial year, presenting our non-financial performance, focusing on crucial aspects of the business that reflect the company's economic, social and environmental interests. The Sustainability Report for the 2024 fiscal year marks the seventh edition published by our company and includes details about our sustainability strategy, as well as an assessment of the economic, social and environmental impact resulting from our daily activities. Area of application The financial performance of both companies, REWE (Romania) S.R.L. and REWE Projektentwicklung Romania S.R.L.*, is detailed in the current report, while operational performance is presented only for REWE (Romania) S.R.L., as it is the only entity with employees. The reference year for our sustainability strategy is 2019, which serves as the baseline for our CO₂ emission reduction targets. Energy and climate-related objectives are set considering the benefits of using electricity from renewable sources. By 2020 (reference year 2019), the Austrian Environment Agency (Umweltbundesamt) implemented the climate balance calculation. In 2021, another entity was assigned this task. Certain methodological details that no longer aligned with current standards were adjusted accordingly. However, the calculation and presentation of results were designed to remain as comparable as possible. In 2021, REWE International (including PENNY Romania) set a new climate target for 2030 and 2040. In 2024, the entire REWE Group also committed itself to setting net-zero targets in accordance with SBTi standards, in alignment with limiting global warming to 1.5ºC. Therefore, the reference year 2019 is highly relevant and was recalculated. Compatibility with previous years became less important than ensuring the calculation method is suitable for monitoring the climate target. Consequently, the method was revised, and both 2019 and 2020 were recalculated. This year, a new entity was contracted to calculate the climate balance, so to maintain comparability, data for 2021 and 2022 were recalculated along with the 2023 figures. Additionally, following the review of data and the completion of internal reporting processes for the operational year, the values reported in the previous sustainability report were updated for certain indicators, which are marked in this report with the specific symbol . About the REPORT * REWE PROJEKTENTWICKLUNG ROMÂNIA S.R.L. does not have any employees MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 10/276 ABOUT THE REPORT

Reporting framework, references and guidelines This report follows the same reporting frameworks as those of recent years: GRI (Global Reporting Initiative of 2021) and SASB (Sustainability Accounting Standards Board). The full list of specific standards and indicators in both reporting frameworks is included in the last section of the report, entitled 'GRI and SASB Index'. The report was prepared by PENNY representatives with the assistance of an external consultant specialized in sustainability. At the level of REWE Group, we have started updating and restructuring the sustainability reporting process to meet the new requirements of the EU Corporate Sustainability Reporting Directive (CSRD). The non-financial data presented in this report were not provided by a third party. Understanding the content In order to provide clarity and traceability in terms of the information reported, we have kept the same structure of the report as in the previous year. This structure has been developed to facilitate the rapid and efficient recognition of the fundamentals of our business. The only update in terms of the structure of the report was the elimination of the sections dedicated to the initiatives for progress at the end of each chapter, since there were no new developments in this regard. At the same time, we moved the sections with the centralizing tables on the impacts of material aspects on the economic, environmental and social directions from the beginning of each chapter. The im-pacts have been updated and supplemented with risks and opportunities and can be found in a centralized way in the chapter "Sustainability Step by Step", section of "Matrix of materiality". It is essential to communicate how we manage the impact we generate and highlight our measurable achievements. We monitor progress not only to meet our sustainability goals, but also to support operational goals that help reduce our impact. Within the report, you'll find specific icons that will help quickly identify information of interest and that have particular meaning. EXPLANATION OF THE IMPACT HOW WE CONTROL THE IMPACT OUR IMPACT AND PERFORMANCE IN FIGURES At the same time, a series of terms and names are presented in the form of abbreviations in the report: BREEAM Building Research Establishment Environmental Assessment Methodology HR Human Resources (Human Resources department) CHEP Commonwealth Handling Equipment Pool IFCO International Food Container Organization CSP Career Succession Planning ISS Institutional Shareholder Services group of companies CSR Corporate Social Responsibility LkSG Lieferkettensorgfaltspflichtengesetz (German Supply Chain Due Diligence Act) FRF Romanian Football Federation rPET Recycled PET FSC Forest Stewardship Council SGR Sistemul național de Garanție-Returnare GES Greenhouse gases UTZ UTZ Certificate HACCP Hazard Analysis and Critical Control Point 3RO TripleRO SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

The PENNY Romania network is part of the REWE Group. The REWE Group, headquartered in Cologne and founded in 1927 as REWE (Revisions-verband der Westkaufgenossenschaften), is one of the main players in the European trade and tourism market. It consists of two independent entities stemming from two parent companies: REWE-ZENTRALFINANZ eG, Cologne (RZF) and REWE-Zentral-Aktiengesellschaft, Cologne (RZAG). With a presence in 21 European countries and 390 000 employees, the REWE Group ended 2024 with a turnover of €96.1 billion. Thus, strengthened by its international positioning in the retail, travel and tourism, convenience sectors, the REWE Group recorded another stable and successful business year in 2024. Sustainability covers a variety of action areas for the Company, which are monitored using defined KPIs. Sustainability is firmly embedded both in the Company’s strategy and in the corporate organization. The principle “We understand our responsibility and act sustainably” has been integrated into the company’s mission statement, and the “Guidelines for Sustainable Business Practices” adopted in 2010 created a framework that underpins our commitment to sustainability. Four strategic pillars were introduced in 2008 for implementing our sustainability strategy, which are explained. The KPIs defined for these strategic pillars, along with targets, current status, and implemented measures, are presented in the progress report published in summer 2024 (REWE Progress Report 2023). * Source: https://www.rewe-group.com/en/annual-report-rewe-group-2024/ up to 8.9% compared to the previous year Total foreign turnover from continuing operations increased in 2024 by 4.6% compared to 2023 The operating result (EBITA) was 1.99 billion Euros The 2024 year * from 83.99 billion Euros to 87.89 billion Euros SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

Retail in Germany: International retail: Convenience retail:: Do-It-Yourself (DIY) stores: Tourism: Other private labeled by the REWE Group: REWE Group's activities at international level are grouped into six sectors MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 14/276 ABOUT US AND OUR VALUE CHAIN

The REWE Group attaches great importance to sustainability and we implement our clear and transparent values in all aspects of our business, including within our operations in Romania, moving towards responsible business management. In the field of financing, we distinguish ourselves by paying particular attention to sustainability, by believing that our products and services can contribute to a more climate-balanced and socially balanced world. In 2021, REWE Group launched the first sustainability-focused credit line to refinance a €1 billion syndicated credit line from 2020. In Romania, we operate through two legal entities: • REWE (Romania) S.R.L., specialized in retail trade, headquartered in Ștefăneştii de Jos, Ilfov, and a share capital of RON 38 656 600, wholly owned by REWE Beteiligung Holding International GMBH (DE); and • REWE Projektentwicklung Romania S.R.L., which deals mainly with real estate activities, having its headquarters in the same locality and a share capital of RON 1 523 986 440, with all the shares held by REWE Projektentwicklung Gmbh (DE). SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

 Stores Logistics Centers The PENNY International brand, under the umbrella of which we carry out our business activity, is present in 5 markets: Romania, Italy, Austria, the Czech Republic and Hungary. Instead of adopting a uniform concept across all these markets, we opted for an approach that aligns with the specific requirements and trends of each local market. REWE Group's vision is to further strengthen the PENNY brand as a discounter that adapts to national specifications, emphasizing a rich selection of regional products and a competitive price-quality ratio. In Romania, we started our activity in 2005, opening its first stores. We inaugurated the first discount stores under the name PENNY Market. Thus, 19 years after entering the Romanian market, our network includes 416 stores, all operating today under the new and unique brand "PENNY". In 2020, we defined our slogan "Save money, not love", which reflects our deep understanding of our business model and our role as an integral part of the local communities and customer segment we address. In 2024 we have expanded the slogan to include the variants "Save money, not responsibility", to capture in a centralized way our commitment to sustainability, and "Save money, not passion" to underline our commitment to our team. We remain committed to constantly improving the shopping experience and emphasizes fair value for money in its own business model. We adapt to current consumer trends and bring added value to customers' lives by modernizing and optimizing the format of our stores, by ensuring an intelligent shopping experience, with fresh and quality products, which bring added value to our customers. PENNY Romania a company in continuous sustainable development Evolution of the total number of stores and logistics centers and strategy for 2029 45 2 163 2 220 3 300 4 336 4 376 4 1 000 9 16 1 4 416 2007 2014 2017 2021 2022 2023 2024 goal 2035 2005 MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 16/276 ABOUT US AND OUR VALUE CHAIN

In 2020, we initiated a new strategic cycle, committing to invest over 1 billion Euros in Romania by 2029. This investment will be directed towards the implementation of initiatives and actions that belong to the seven strategic business pillars of our company: employees an attractive benefits package, which includes vacation days in addition to the minimum established by law, vouchers and bonuses for performance, thus aiming to make each employee feel appreciated and motivated. 5. Digitalization. In 2024, we continued to invest in digitalization, optimizing the shopping experience and streamlining internal processes. The implementation of modern technologies has allowed us to better respond to the needs of our customers and improve resource management. We continue to expand our accessibility for customers through existing partnerships with Glovo and Bringo and are in the process of initiating a new collaboration with Tazz. 6. Sustainability. Sustainability is a core element in our development strategy, and in this report we present the multitude of actions and measures we have implemented to develop this direction. The ISO 50001 recertification underlines our success in making resources efficient and minimizing our environmental impact. We actively contribute to the development of the community through urban biodiversity initiatives and partnerships with Habitat for Humanity Romania and World Vision Romania. 7. Integrated communication. At PENNY, we have maintained a constant commitment to community events and initiatives, keeping in close contact with our colleagues, customers and partners last year as well. We have maintained a policy of transparency in our communications, keeping the public and partners informed of the company's developments and directions. 1. Remodeling of stores and improved shopping experience. In 2024, we continued our strategic investments in sustainable technologies, thereby optimizing the customer shopping experience. Our new stores are equipped with advanced refrigeration systems that use CO2, minimizing environmental impact, and include charging stations for electric vehicles, demonstrating our commitment to customer comfort and environmental responsibility. We are committed to continuously improving the format of our stores, taking into account consumer feedback. 2. Expansion. We expanded the PENNY network by opening 40 new stores, reaching a total of 416 locations across the country. This expansion strengthens the access and availability of our services and products to a growing number of customers in Romania. 3. Products from Romania. We are committed to continuing the commitment established through the TripleRO (3RO) initiative, supporting local producers and capitalizing on Romanian products. Our strategy focuses on increasing the shelf presence of products that have the main ingredient originating in Romania and that are processed and packaged locally, thus contributing to stimulating the national economy. 4. Team PENNY. At PENNY, we pride ourselves on putting employee well-being first, which is the foundation of our success. In 2024, for the third consecutive year, we were happy to be recognized as a Top Employer (according to the Top Employer Institute methodology), a proof of our commitment to our team. It is essential for us that every PENNY member feels valuable and has the certainty of a secure job. To achieve this goal, we offer our SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

Indicators on the evolution of the PENNY busines Number of stores REWE Romania +10.63% 376 416 2023 vs. 2024 Number of Employees REWE Romania +2.34% 7 285 7 456 2023 vs. 2024 Turnover (billion. RON) REWE Romania +13.58% 8.32 9.45 2023 vs. 2024 224 Net profit (mil. RON) REWE Romania +0.44% 225 2023 vs. 2024 MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 18/276 ABOUT US AND OUR VALUE CHAIN

The expansion of the PENNY network involves innovation and adaptation to the needs and expectations of our customers. In this regard, in 2024 we continued to expand our stores and logistics centers, offering consumers an improved experience through a new and welcoming design. Continuing on this line, we have expanded the portfolio with another 40 stores in the locations presented according to the attached map. The concept of ultra-proximity, represented by smaller stores integrated into residential complexes, aims to bring the store even closer to customers. These stores are part of existing residential urban projects, where we strive to develop modernization solutions that include sustainability initiatives. They have the potential to reduce operating and maintenance costs, minimize environmental impact, and increase the adaptability and durability of buildings. We are committed to being receptive to learning and experimentation, always keeping in mind the needs of our customers. Turnover (mil. RON) REWE Projektentwicklung +9.00% 260.84 284.34 2023 vs. 2024 Net Profit (mil. RON) REWE Projektentwicklung -65.98% 8.29 2.482 2023 vs. 2024 Market share ** (%) REWE Romania +3.63% 6.61 6.85 2023 vs. 2024 * Market share values for 2023 and 2024 confirmed by NielsenIQ for retail audit data reported to REWE Romania at the level of total Fast-Moving Consumer Goods (audited categories, excluding cigarettes). The data was approved by the Audit Committee and PrioBoard. (Copyright © 2024, The NielsenIQ Company). SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

 2024  2023  2022  2018  2013 164 188 136 93 63 Stores in small towns (between 4 000 and 25 000 inhabitants) +19.51% 2023 vs. 2024 103 100 90 66 50 Stores in medium-sized cities (between 25 000 and 90 000 inhabitants) -9.70% 2023 vs. 2024 42 46 37 24 50 Stores in Bucharest-Ilfov +4.76% 2023 vs. 2024 66 82 73 53 31 Stores in big cities (over 90 000 inhabitants) +24.24% 2023 vs. 2024 Evolution of the share of PENNY stores according to the size of the city MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 20/276 ABOUT US AND OUR VALUE CHAIN

Map of significant PENNY operating locations in România on 31st of December 2024 1 Number of stores by county Number of stores served by the Logistics Center 1 HEAD OFFICE Ștefăneștii de Jos 7 Bușteni Street, Ilfov Total stores 416 +40 compared with 2023 * For REWE (Romania) S.R.L., significant operating locations represent all sites in Romania where the company conducts its activities in accordance with Romanian laws and the Articles of Association. The sites are divided into three categories: Head Office (the company’s registered office), Logistics Centers, and PENNY stores, registered as work points in the Articles of Incorporation. The supply of our stores is carried out through the network of logistics warehouses. In 2024 we started the construction of a new central logistics warehouse located in Mihăilești, Giurgiu County, which is scheduled to be inaugurated at the end of 2025. Already in 2024 we started organizing the structure of our store network to allocate 48 stores to this new warehouse. MH NT PH TL VL OT B 87 AB 12 BN 6 +1 BT 6 +1 BH 14 +1 AR 13 +1 AG 7 +1 BR 7 +1 CS 7 +1 GJ 7 +1 24 +2 VS 5 +1 BZ 10 +1 DB 11 +3 DJ 9 +3 CV 5 +1 BV 15 CT 18 GL 8 HD 14 HR 4 -1 CL 9 IL 7 +1 IS 9 +1 22 +1 6 4 +1 TM 11 +1 TR 10 +1 14 +2 MM 13 +2 5 +1 MS 12 10 6 SJ 7 +1 SM 9 +1 SB 14 +1 SV 13 +2 VN 6 85 88 99 98 CJ 9 +2 BC 12 +3 LOGISTICS CENTERS Bacău N. Bălcescu Street, Bacău County Area: 28 552 m2 Filiași Bd. Racoțeanu 216, Dolj County Area: 23 291 m2 Mihăilești 316 Bucharest Road, Giurgiu County Area: 22.000 m2 Ștefăneștii de Jos 7 Bușteni Street, Ilfov Area: 30 826 m2 Turda 22 Decembrie 1989 Street, no. 30, Cluj County Area: 27 233 m2 GR 6 +1 SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

Our principles of activity and management of the value chain Within the Romanian retail market, we position ourselves as a top discounter and focus on selling a wide range of food and non-food products. We pay close attention to the structure of our value chain, assessing the direct and indirect effects generated by our operations, including stores and logistics centers, as well as those upstream, i.e. the supply chain, and downstream, represented by the distribution of products and services. We are committed to promoting sustainability in all regions where we operate, paying particular attention to the potential impact of our activities on the environment and society. We conduct a rigorous assessment of external risks and opportunities that could influence the company's governance and performance. For us, it is essential to take a preventive approach, reduce the negative impact and amplify the positive benefits of our work. We carry out our activity following a series of people-oriented principles. Our objectives regarding how to carry out the activity are based on the principle of operational excellence, thus wanting to ensure that our customers can purchase their desired products as conveniently as possible, offering good prices, quality, assortment and service. We value everyone equally, and our relationships are based on mutual respect, whether they involve suppliers, customers, employees or other categories of stakeholders. We strive to identify new processes and needs where we can make a valuable contribution, and we are deeply aware of the importance of collaborating with all stakeholders along the value chain. This includes manufacturers, suppliers, employees and subcontractors in REWE logistics centers and PENNY stores, customers, academia and others. We recognize that many of these partners can significantly influence our business, whether through the supply chain or the distribution chain of products. In view of uncertainties related to macroeconomic trends, such as slowing economic growth, rising interest rates, we are actively monitoring the situation and ready to adjust our business operations. We also continue to focus on pricing. Regionality remained the priority direction in the development of our product portfolio in 2024 as well. We continued to invest in expanding collaborations with local producers and further developed partnerships aimed at supporting the local economy. Thus, our products are developed both to meet the needs of our customers, but at the same time they also support local producers, bringing added value to the national economy. Our product portfolio in 2024 continued to support local producers, with 88.09% of total purchases coming from local suppliers and 71% of food products coming from Romania. We have kept our commitment to offer our customers 100% Romanian meat production, and 53.61% of our stores have been provided with butcheries from local producers (who operate within a radius of 100 km from the store). We have developed the product quality and safety auditing system, increasing the number of audits carried out at our suppliers in the case of private label products. At the same time, we continue to require all our private label suppliers to hold at least one certification recognized by the Global Food Safety Initiative (GFSI). Private label (also referred to as private label or own label) is a trademark owned by REWE (Romania) S.R.L. or by REWE Group, with intellectual property rights or centers for products marked as "private label". In PENNY Romania stores, our customers can find both private labels and exclusive brands. An exclusive brand can be a product for which the intellectual property rights have been assigned by the trademark owner to REWE (Romania) S.R.L., or non-branded products made at the request of PENNY. As we are aware of our consumers' preference for novelty and quality, we strive to regularly bring the latest products at competitive prices to our offer that meet their needs and aspirations. Our private labels make up around 30% of turnover, and suppliers of these brands are contractually committed to adhere to our code of conduct. Most of our supply chain is managed within our company, where more than 80% of product selection, negotiation and procurement processes are managed at country level, with the aim of improving regional and local supply. The rest of the products in the Group's supply chain are managed by the REWE Group, which is responsible for centralized sourcing. REWE Group offers buying and negotiation services to companies within the Group and creates its private labels. This centralized delivery model significantly improves operational efficiency and allows the Group to exercise better control over the quality of its products and services, including sustainability aspects. SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

Romanian private labels Hanul Boieresc PENTRU TINE de la Penny Boni de tot Hanul Boieresc remains a PENNY megabrand, being 100% produced in Romania, all products in this range being aligned with the 3RO principles: main ingredient in Romania, processed and packaged in Romania. These products bring the traditional and authentic Romanian taste to our customers. The permanent assortment has a wide variety of products, used by each Romanian family: from fresh meat and Romanian vegetables, to basic foods, dairy products, sweets, bread, canned fruits and vegetables, alcoholic and non-alcoholic beverages. The special assortment of the holiday season brings together regional products, tastes appreciated in ancient recipes or specialties of local producers. Another PENNY megabrand for a wide variety of products, for both national and international tastes, dedicated to all those looking for good quality at a good price. Wide range of dairy products that meet all tastes and requirements of any family. All products come exclusively from Romanian manufacturers and offer our customers quality at fair prices. Haiduc Casa Gustului SuporterRO Beer with a strong taste given by special recipes containing several types of hops. Haiduc Beer supports the story of Romanian beer, having 100% Romanian ingredients. Wide variety of sausages and canned meat, developed to the taste of Romanians. These delicious products are loved by the whole family and can be included in any recipe or enjoyed as such. Assortment developed especially for football lovers, who can enjoy their favorite sport together with high quality products. The assortment brings together food products (snacks, sweets, drinks) and non-food products (accessories and equipment for supporters, etc.), suitable for consumption at parties or with the family. Caribé GUSTOPAN KRISTALL PERLE Our range of carbonated and non-carbonated juices for every day, at attractive prices, with flavors appreciated by consumers. The range of toast bread made in Romania, with fresh products and without preservative additives, carefully packaged, which stands out for an advantageous price intended for the daily consumption of the whole family. Still or carbonated water, at affordable prices that are a suitable choice for every day. MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 24/276 ABOUT US AND OUR VALUE CHAIN

International private labels PENNY. PENNY. TO GO my BIO A wide range of private label products, manufactured both in the country and internationally, which meet all tastes. Products made in Romania and with the main ingredient in Romania have the "made in Romania" signage on the primary packaging. Range of fresh, ready-to-eat and ready-to-eat products for all those who are on the run or who want quality ready-to-eat products. Assortment of organic products certified organic in the EU, at affordable prices, offering a wide range from cereal-based drinks to sweets and preserves. The dairy products, eggs and honey in this range come from Romanian producers. Bebelino FIRE BIRD GRAN MARE Range of products for babies, containing diapers and wet wipes for the comfort of both children and parents. Our own range of energy drinks, containing assortments with different flavors and different intensities. Wide range of fish products, from fresh fish products, to canned and frozen fish, such as: salmon, herring, mackerel, tuna, sardines, sprat and other varieties. Milkeria Selection San Fabio Assortment of dairy variants, yogurts and milk-based desserts. From fine butter, creamy cheese and delicious fruit yogurts, this assortment of international products brings the necessary elements for good and nutritious meals with the best made from milk. The premium brand PENNY for a wide range of high-quality festive products, specific to the Easter and Christmas holidays, offering premium, delicious products, created to offer the best dishes at festive tables. Variety of products inspired by Italian cuisine, from sauces, to pasta, to semi-finished products such as pizza and pastries. These products are intended for quick and light meals that bring the taste of Italy to the table. Rios Ethics in supply chain processes of ice cream, which offers a very wide variety of flavors and types in all serving variants: from singleperson options to boxes for the whole family. Our concern for product quality is what makes us trustworthy in the eyes of customers. We deliver food from logistics centers to stores by special means of transport that maintain the necessary temperature to preserve the freshness and quality of the products. We keep a close eye on the expiration date of the products so that our customers can preserve them for as long as possible. Detailed information about our products, structure and portfolio development can be found in the chapter "Sustainable assortment". SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

We continue to focus on improving the sustainability performance of our supply and distribution chain partners, working closely together to guarantee the sustainability of our products and services. This is achieved by rigorously monitoring the quality and quantity of supply and by implementing environmental and social criteria in the supplier selection process. The supply chain did not undergo major structural changes compared to the previous reporting year. We continue to use the same methods to ensure an optimal and sustainable procurement and sourcing process. Starting from our procurement process to the organization of the supply chain, we implement a series of measures to ensure the sustainability of these processes, such as: • We require all suppliers to align with the requirements of our Code of Conduct; • We implement specific requirements for private label products that also include sustainability criteria such as social compliance; • We aim to continuously optimize the supply of our stores, reducing the environmental impact caused by freight transport. Further information on the structure of our supplier portfolio and the management of the contractual relationship with them can be found in the chapter "Sustainable Assortment", the sections "Regionality and local products" and "Ethics in supply chain processes". We develop our procurement processes for increased efficiency, as well as implement new IT systems and solutions, and focus our efforts on reducing energy consumption. No less important for us is the continuous strengthening of the share of private labels in our product range. Online shopping can make everyday life much easier, that's why we put access to home delivery services. When it comes to their orders, our customers expect efficiency and speed. Through our ongoing collaboration with Glovo and Bringo, we have expanded the accessibility of our services to customers, regardless of the platform they use. Starting in March 2024, we have started a new collaboration with Tazz, to offer more delivery options to our customers. Turnover from home deliveries increased by 25% compared to the previous year. We track the evolution of digital commerce performance annually to determine the best ways to respond to this growing trend. Thus, we recorded the following results on all digital commerce platforms: 2023 2024 2023vs.2024 Number of stores where home delivery orders were placed 187 214 +14% SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

The number of online orders with home delivery increased by 21% this year compared to the previous year, reflecting the growing interest in fast and convenient shopping. The number of online orders with home delivery has increased by 21% this year compared to the previous year, reflecting a growing interest in quick and convenient shopping. We are constantly trying to identify and develop solutions that streamline processes and provide our colleagues with smart tools to help them carry out their activities. PENNY stores aim to be more convenient and focused on the presentation of food products. All stores in the country aim to be renovated based on the same concept in the coming years, so that customers find a familiar, easy and comfortable environment to navigate while looking for their favorite products at the best prices or exploring promotions and special offers. While a welcoming and pleasant environment is created in all new and renovated stores, in 2024 we have made an extra effort to ensure a convenient shopping experience for families: we have set up dedicated parking spaces for pregnant women and people with young children. In 2023 we started the design of the first autonomous PENNY store in the world and implicitly also in Romania, which was later inaugurated in May 2024. This store is completely autonomous, and customers can quickly solve their shopping list without spending time at the cash register. The items are scanned automatically, through a smart camera system, and once customers launch the products back on the shelf, they will be automatically deducted from the receipt. More information is available on the dedicated page of our website. We continue to refine our commercial offering, internal processes, communication and payment tools, as well as order processing methods. Our stores are integrating more and more digital elements, such as communication and organization systems, digital orders for employees, electronic price tags and electronic monitoring of fresh pastry stocks. At the same time, we continue the energy efficiency measures through which we want to increase sustainability performance for all our stores, such as: • certification of all newly opened stores according to BREEAM In-Use standard • prioritizing the use of renewable energy through the purchase of certified green energy and the expansion of its own network of photovoltaic panels • maintaining ISO 50001 certification The value chain is essential for both sustainability reporting and the growth of our business. This way we can identify the challenges that influence both stakeholders and the company's performance. By accurately understanding the components of the value chain, we can implement practices of continuous improvement, innovation and effective collaboration with all actors involved. We are dedicated to the continuous optimization of our operations, paying special attention to inventory planning from one end of the supply chain to the other. We control and automate the supply chain, streamlining and simplifying complex processes to maximize product availability with minimal inventory. Integrated inventory planning is a priority for us. To anticipate customer demand in each store and manage inventory needs in the PENNY network, we implemented advanced forecasting using artificial intelligence and digital twin modeling. These technologies help us improve the visibility of warehouse inventory and ensure efficient supply. We automatically monitor inventory and order levels automatically and almost in real time, allowing us to respond quickly to changes in demand by placing regular orders with our suppliers. MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 28/276 ABOUT US AND OUR VALUE CHAIN

Deliver Order Order / Demand E-Commerce SUPPLIER PENNY WAREHOUSE MANUFACTURERS PRODUCER SUPPLIER CLIENT PENNY STORE Order / Demand Order / Demand Deliver Order Placed Order Products Products Products Products Materials Materials SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

In this sustainability report, we present the results recorded in the financial year 2024 by PENNY Romania on sustainability topics relevant to our company. We generally followed the same structure like previous year for our reporting, making small adjustments to the form of presentation of material aspects, in order to align with the unitary approach at Group level. This approach resulted in a complex consumer consultation exercise carried out at international level, more details being available in the chapter "Sustainability Step by Step". At the same time, we want to maintain the same high standard of transparency and thus, we present in the chapter "Sustainability Strategy and Governance" our new governance structure in terms of sustainability. As part of our commitment to continuous improvement, in 2024 we updated our sustainability governance structure, an essential step to meet our commitments to the environment and society. This new structure supports our sustainability performance and facilitates a more efficient operationalization of our actions. We have created a clear framework with well-defined roles and responsibilities, ensuring the involvement of each team member in achieving our goals. As Sustainability Manager, I am responsible for shaping our overall sustainability vision and ensuring it aligns across the organization. By working collaboratively, I make sure we can respond quickly to new challenges and adapt as needed. We want this transformation to contribute not only to achieving internal objectives, but also to generating positive impacts for the environment and society. We are committed to continuously improving business practices and supporting the communities in which we operate. Looking to the future, we are confident that the new structure will strengthen our commitment to sustainability and help us become leaders in social responsibility and environmental protection. Claudia IVAN Sustainability Manager | PENNY Romania SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB

Made with FlippingBook

RkJQdWJsaXNoZXIy MjUyMDg2Nw==