Board Of Aldermen

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increase, with the intention that this temporary rate increase would be approved very early in
2017. In spite of this 6.21% temporary rate request, the Company, NHPUC Staff and the Office
of Consumer Advocate agreed to a temporary rate increase at “current rates,” and as such, there
was no impact on ratepayers for any temporary rate increases during 2017.

Notes to Balance Sheet

Note 1 (Other Current Assets) - At December 31, 2017, approximately $1.1 million of this
balance is comprised of prepaid property taxes, which will be expensed in the first quarter of
2018, relating to taxes paid in November and December of 2017 for the second half of the
property tax year ended March 31, 2018.

Note 2 (Acquisition Premium) — In accordance with GAAP, the Acquisition Premium is being
written-off over the 30-year life of the principal of the City Acquisition Debt.

Balance Sheet ($000’s)
As of As of
December 31, 2017 December 31, 2016
(Audited) (Audited)
Assets
Property, Plant & Equipment, Net $ 210,498 $ 201.698

Current Assets:

Unaudited Cash Flow Statement

Cash Flow on a GAAP basis for the fourth quarter of 2017 as compared to the fourth quarter of

2016, and the year-to-date 2017 versus 2016, are as follows:

Operating Activities:

Interest expense remained flat in 2017 when compared to 2016 due to lower than
anticipated capital expenditures in 2017. This was a result of unanticipated deviations
in project timing and/or deferrals of project start-up, for the just completed construction
season.

Pre-tax loss for the fourth quarter decreased to $2.0 million in 2017 versus $2.2 million
in 2016, due to an increase in revenues which was offset by increased operating
expenses, primarily property taxes and depreciation costs, year-over-year.

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the policy of the Company to hire, train, promote, and otherwise provide terms and conditions of
employment without regard to race, color, religion, sex, sexual orientation, gender identity,
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.

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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.

VO PENNICHUCK?’

March 27, 2018

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 5,
2018 at the Crowne Plaza, 2 Somerset Parkway, Nashua, New Hampshire.

a PENNICHUCK:

PROXY CARD
PENNICHUCK CORPORATION

PROXY for Annual Meeting of Sole Shareholder - May 5, 2018

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS