Board Of Aldermen

Balance Sheet ($000’s)
AS of As of
December 31, 2016 December 31, 2015
(Audited) (Audited)
Assets
Property, Plant & Equipment, Net $ 201.698 $ 183,241

Current Assets:

Unaudited Cash Flow Statement

Cash Fiow on a GAAP basis for the fourth quarter of 2016 as comp
2015, and the year-to-date 2016 versus 2015, are as follows:

ared to the fourth quarter of

Operating Activities:

-4-

Consolidated operating expenses increased by $1.9 million from 2015 to 2016
mainly due to higher water treatment and production costs related to higher
consumption ievels, depreciation adjustments, property taxes, and pension and
labor related costs.

A decrease in interest expense from 2015 to 2016 of approximately $0.1 million is
primarily due to the overall reduction in principal amounts outstanding at year-
end, resulting from the amortization of the debt instruments relating to their
repayment over time.

-3-

Strategies supporting the corporate mission have been developed relative to our water resources,
employees, financing, customer services and Company assets. These strategies together with
the goals and plans to support the strategies are available on the Company’s website,
www.pennichuck.com, under the “Company Reports” caption.

-2-

Second, retaining the corporate structure provided continuity for the regulatory and financial
status of the companies and their respective businesses. The New Hampshire Public Utilities
Commission continues to provide regulatory oversight for the utility companies, and banks,
lenders and other contract parties continue to be able to rely on existing contracts and other rules
with respect to financing and other operations.

V2 PENNICHUCK

March 30, 2017
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 6,
2017 at the Crowne Plaza, 2 Somerset Parkway, Nashua, New Hampshire.

COPY — FOR INFORMATION ONLY

Va PENNICHUCK

PROXY CARD
PENNICHUCK CORPORATION

PROXY for Annual Meeting of Sole Shareholder - May 6, 2017

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

John M. Murphy

Information regarding the professional backgrounds for each nominee follows:
Nominees for Director:
James P. Dore

Senior Management. The members of the Company’s Senior Management team are as follows:
Larry D. Goodhue, Chief Executive Officer, Chief Financial Officer and Treasurer