| 7 2025 The supply chain is organized through central warehouses, allowing goods to be transported from producers to warehouses using high-capacity, fully loaded trucks. Thanks to this approach, transportation costs included in the purchase price are lower, which ultimately allows for a lower selling price for customers. Private labels: We continue to develop our private label portfolio, aiming to increase their share in the assortment and offer customers quality products at affordable prices. PENNY private labels represent a competitive alternative to national brands, maintaining quality standards with an advantageous price–value ratio. Logistics: The store network is served by five logistics centers—located in Ștefăneștii de Jos, Turda, Bacău, Filiași, and Mihăilești—which ensure efficient supply and product freshness nationwide. The completion of the fifth logistics center in Mihăilești, Giurgiu County, increased storage and distribution capacity at national level and supports operational flexibility in the context of accelerated network expansion. Close collaboration with local suppliers, including through the 3RO program, contributes to shorter transport distances and improved supply chain efficiency. Shopping experience: In 2025, we continued to optimize the shopping experience by expanding areas dedicated to fresh products, developing the ready to eat assortment, and improving in store flows to ensure a faster and more intuitive customer journey. We continued to develop the 3RO initiative, through which we support local producers and offer customers products whose main ingredient comes from Romania, and which are processed and packaged locally. In 2025, 88% of our suppliers are Romanian companies, and 68% of turnover comes from products manufactured in Romania. The 3RO assortment represents 55% of turnover. The 3RO program remains a strategic initiative, contributing to the development of the local economy and the consolidation of short supply chains. In addition, we continued to develop the private label segment in order to remain aligned with our discounter structure. Moreover, freshness is one of our priorities. It is our priority that every PENNY employee feels valued and has the assurance of a stable job. Our team consists of 8,000 colleagues who work every day with passion and dedication. We ensure our colleagues benefit from an extensive package of benefits, such as additional vacation days, private health insurance, performance bonuses, and meal vouchers. In 2025, for the fourth consecutive year, we received the Top Employer in Romania distinction. In 2025, we continued to develop digital services 3. ASSORTMENT 4. PENNY PEOPLE 5. DIGITALIZATION
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