Purcari Wineries Public : Non-Financial Statement 2021

NON-FINANCIAL STATEMENT

2021

"Purcari Wineries is building up its foundation in sustainability and ESG management, by aligning its business and model to the UN Sustainable Development Goals (SDGs)."

Index

04 Message from CEO

06 About Purcari Wineries PLC

08 Business Model

10 Corporate Governance

12 Environmental and Social Management

16 Ecosmart Union

18 Organizational Culture

20 Human Resources Management

22 Remuneration Policy

24 Social Initiative

28 Anti-corruption & anti-bribery

29 Intellectual Property

"We focus our efforts and resources on goals through

which we can contribute the most."

Non-Financial Statement 2021	5

Message from CEO

Dear Shareholders,

Our world has not been short of challenges. For nearly two years, we have learned to cope with an unprecedented pandemic. Today, it's the ravaging war in Ukraine that is putting our societies at risk. No matter how pressing the context, we aimed to rise up to the challenge and contribute as much as we can to help build a better world. On February 24, within hours from the start of the full-scale Russian invasion of Ukraine, we have opened the doors of Chateau Purcari to the Ukrainian families that were fleeing their homes, transforming our luxury estate into an improvised refugee center. Together, our team has helped provide temporary accommodation to over 4,000 people, while our volunteers worked round the clock, helping those crossing the border at Palanca. The tent we have set up on the road from Palanca to Chisinau, offered aid to more than 11,000 refugees that crossed the border - a hot tea, a sandwich, a sanitary kit, a SIM-card or a warm hug, it was the least we could do to help those who needed it most. Despite the challenging times, we continue to pray for peace and act as a responsible corporate citizen.

We also remain committed to our communities by donating to hospitals and supporting charities, as well as to our employees, especially in such unpredictable times. It is moments like these that put a company's culture and operations to test, and I am proud by the way the Purcari team have mobilized to do our part, beyond the focus on day-today business alone.

These challenging times, however, are not an excuse to put our broader ESG agenda on hold, especially on the environmental front. We remain as committed as ever to do our part in helping minimize our environmental footprint. Our Group has recycled more than 235 tons of waste and doubled the quantity of sequestered CO2 to a total of 3,567 tons, via our partnership with Amorim Cork.

Due to the persisting risk of water distress, we continue our forestation efforts both in Moldova and Romania, having planted over 4,000 trees. It is critical for businesses to continue these efforts, as Moldova remains one of the countries with lowest rates of forestation in Europe, at circa 11%.

We remain one of the largest and among the very few formal employers in some of the most disadvantaged areas of Moldova, such as Stefan Vodă, Vulcănești, Bardar and Onești. We are glad that our success is a catalyst for these communities, that keeps families together and limits emigration by offering more chances for a decent living at home.

We are still only at the beginning of our journey, taking each challenge as an opportunity to do more for the world in which we live, a journey in which profits and purpose go hand in hand.

Victor Bostan, CEO

Vasile Tofan, Chairman

6

About

Purcari Wineries PLC

Purcari Wineries Public Company Limited (BVB: WINE) is one of the largest wine groups in the Central and Eastern Europe (CEE) Region. The Group is the largest wine exporter from Moldova and the leader in the premium wine segment in Romania, with an approximately 25% segment share.

Founded in 1827, Purcari is the most awarded winery from the CEE region at Decanter London 2015-2021 with a total of 103 medals, and the most awarded winery in the world with a total of 333 medals. The company is among the highest ranked on Vivino, with an average score of 4.1 based on over 70,000 reviews.

The Group has 5 wine brand-platforms with products in a wide range of price segments, both in the still and sparkling wine categories, as well as a brand in the popular premium brandy segment.

Purcari Wineries is the first Wine Group from the CEE Region to be listed on the Bucharest Stock Exchange (BVB: WINE) and to the included in the FTSE Russell MicroCap Index.

Company profile

RON 248.1MIL.	+700	4
Consolidated Revenue	Employees	Production
		platforms

+1 350	+40	2
Ha of vineyards	Shipment to	Countries:
under management	countries	MD, RO

4 000

Trees planted

236

Tons waste recycled

8	Non-Financial Statement 2021

Business Model

Purcari Wineries' business model is comprised of four distinct steps that describe the winemaking process:

Non-Financial Statement 2021	9

GRAPE

GROWING:

• High quality grapes are essential for the production of great wines. Thus, we grow our grapes with care and choose only first-rate suppliers of Agrochemicals and Phytosanitary products for our production process. Grape growing supposes a very labor- intensive process.

HARVESTING AND

WINE MAKING:

• The grapes are harvested manually and in small crates. At this stage, the winemaking process involves oenological materials only of the best quality, and is closely monitored by experienced personnel, and wine making consultants.

FROM BARRELS	DISTRIBUTION TO
TO BOTTLES:	CONSUMERS:
• We exclusively use technologically	• We have put in place a logistic
advanced solutions from world	approach, tailored to each
leading producers. Yet again, the	country of export.
oenological materials used are
exclusively of the best quality, the
bottling process working at its highest
level of efficiency. The materials used
within this step undergo a continuous
optimization.