Board Of Aldermen

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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 lax 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
govemance 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

YO 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 Compuny’s Distribution Facility, 16 Daniel
Webster Highway. Mcrrimack, New Hampshire.

COPY — FOR INFORMATION ONLY
VO 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

Sarah Pillsbury
(Director Since: N/A)

Ms, Pillsbury retired in 2020 from the New Hampshire Department of Environmental
Services (NHDES), where she held a number of positions, focused primarily on the
protection and enhancement of New Hampshire’s drinking water and groundwater. Prior to
her retirement, from 2006 to 2020, Ms. Pillsbury was the Administrator of the Drinking
Water and Groundwater Bureau at the NHDES. Ms. Pillsbury holds a Bachelor of Science
degree in Resource Economics from the University of New Hampshire.

Amymarie R, Corriveau
(Director Since: N/A)

of New Hampshire (for which his certification is currently in an inactive status).
Mr. Goodhue’s base annual salary beginning as of April 1, 2021 was $226,353.

Donald L. Ware, Chief Operating Officer

Mr. Ware has been the Chief Operating Officer of Pennichuck Crrporation since

benefit plans, other than those under the purview of the Board of Directors or other designated
committees; and developing a succession plan for the Chief Executive Officer and senior
management and making recommendations for succession to the Board of Directors. The
Compensation and Benefits Committee held 4 meetings in 2021, either virtually or in person.