Board Of Aldermen

Capital Expenditures

Capital expenditures in the fourth quarter of 2021 were $2.2 million compared to $4.9 million in
the fourth quarter of 2020. For the year 2021, capital expenditures were $8.7 million as
compared to $10.7 million in 2020.

The major expenditures for 2021 were as follows:

Kessler Farm Tank Replacement $3.967,000

Coburn Woods Main Replacements $653,000

Merrimack River Pumping Station $270,000

Locke Lake Surface Water Treatment $253,000
Rate Cases

Notes to Balance Sheet

Unaudited Balance Sheet ($000’s)
As of As of
December 31. 2021 December 31. 2020
Assets
Property, Plant & Equipment, Net $ 245.197 $ 242.469

Current Assets:

Unaudited Cash Flow Statement

Cash Flow on a GAAP basis for the fourth quarter of 2021 as compared to the fourth quarter of
2020, and the year-to-date 2021 versus 2020, are as follows:

that will reinstate the exemption from taxation of CIAC, for NHBPT taxes, if and when
passed. Due to these two significant items, the year-to-date results reflect a tax provision of
approximately 4.9% of pre-tax income for 2021, compared to the statutory tax rate expense
of 27.08%.

Earnings Before Interest, Taxes, Depreciation and Amortization increased in the fourth
quarter from $4.0 million in 2020 to $5.4 million in 2021, or 35.0%, due to an increase in
revenues as discussed previously, over-and-above any operating expense increases.

Consolidated operating expenses increased by $0.3 million for the fourth quarter of 2021,
over the same quarter in 2020. The increase is related to a rise in direct operating costs
associated with the rate increases in fuel, power and purification costs. The Company has
also recognized increases in its employee benefit costs, including but not limited to,
employee pension costs and healthcare premiums.

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Third, the Mayor and Board of Aldermen unanimously agreed to establish a corporate
governance system for the purposes of managing Pennichuck Corporation. This corporate
governance system relies upon well-established principles of corporate law, and is established
pursuant to Pennichuck Corporation’s Articles of Incorporation and By-Laws, as adopted by the
City and the Company at the time of the acquisition pursuant to the Merger Agreement.

V2, PENNICHUCK?

March 30, 2022
ANNUAL REPORT TO THE SOLE SHAREHOLDER

Dear Shareholder:

The Annual Meeting of Pennichuck Corporation (“Pennichuck” or the “Company”) will be held
at 9:00 a.m. on Saturday, May 7, 2022, at the Company’s Distribution Facility, 16 Daniel
Webster Highway, Merrimack, New Hampshire.

COPY — FOR INFORMATION ONLY

YO PENNICHUCK®*

PROXY CARD
PENNICHUCK CORPORATION

PROXY for Annual Meeting of Sole Shareholder - May 7, 2022
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS