Board Of Aldermen

Unaudited Cash Flow Statement

Cash Flow on a GAAP basis for the fourth quarter of 2018 as compared to the fourth quarter of
2017, and the year-to-date 2018 versus 2017, are as follows:

-4.

Consolidated operating expenses increased by $2.7 million, or 7.6%, for the full year,
from 2017 to 2018, mainly due to higher maintenance related costs, production costs,
increased depreciation costs, and labor related costs.

Interest expense increased slightly in 2018 when compared to 2017 due to interest costs
associated with the additional financed amounts for capital projects which have been
incurred for ongoing infrastructure replacement, in conformity with the Company’s key
mission objectives.

-3-

national origin, ancestry, age, marital status, pregnancy, disability or veteran status. All
employment and promotion decisions are based solely on valid requirements, in accordance with
the principles of equal employment opportunity and affirmative action.

Financial Performance During the Last Year. The Company’s audited consolidated financial
statements for the year ended December 31, 2018 are attached to this report.

($ Millions)
4 Quarter Year-to-Date
2018 2017 2018 2017

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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 25, 2019

ANNUAL REPORT TO THE SOLE SHAREHOLDER

Dear Shareholder:

The Annual Meeting of Pennichuck Corporation will be held at 9:00 a.m. on Saturday, May 4,
2019 at the DoubleTree by Hilton, 2 Somerset Parkway, Nashua, New Hampshire.

COPY — FOR INFORMATION ONLY

Ve. PENNIGHUCK?

PROXY CARD
PENNICHUCK CORPORATION

PROXY for Annual! Meeting of Sole Shareholder - May 4, 2019

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

Jay N. Lustig
(Director Since: January 2012)

Donald L. Ware, Chief Operating Officer

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

Nominating and Governance Committee. The Nominating and Governance Committee is
responsible for identifying individuals qualified to become Board members; recommending to
the Board the persons to be nominated by the Board for election as directors at the Annual
Meeting of Sole Shareholder; developing and recommending to the Board of Directors a set of
corporate governance principles; overseeing an annual self-evaluation of the Board; and annually
reviewing the Corporate Code of Conduct. The Nominating and Governance Committee is

The current members of the Board Committees are as follows: