PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Earnings per share Note 3.4 Basic and diluted earnings per share are calculated on the basis of the weighted average number of outstanding shares, less the weighted average number of dilutive instruments. The calculation of diluted earnings per share takes into account the potential impact of the exercise of all dilutive instruments (such as stock options, convertible bonds, etc.) on the theoretical number of

shares. When funds are obtained at the date of exercise of the dilutive instruments, the “treasury stock” method is used to determine the theoretical number of shares to be taken into account. When funds are obtained at the issue date of the dilutive instruments, net profit is adjusted for the finance cost, net of tax,

relating to these instruments.

Group net profit and net earnings per share from continuing operations

30.06.2018

30.06.2017

Numerator (€ million) Group net profit

1,393

1,577

Denominator (in number of shares) Average number of outstanding shares

264,232,623

264,113,889

Dilutive effect of performance-based share allocations Dilutive effect of stock options and subscription options Average number of outstanding shares – diluted

845,727 399,380

1,062,410

366,703

265,477,729

265,543,003

Earnings per share (€) Earnings per share - basic Earnings per share - diluted

5.27 5.25

5.97 5.94

Expenses by type Note 3.5 Operating profit notably includes depreciation, amortisation and impairment expenses as well as personnel expenses as follows:

30.06.2018

30.06.2017

€ million

Depreciation, amortisation and impairment on property, plant and equipment and intangible assets

(292)

(288)

Salaries and payroll costs

(1,257)

(1,260)

Pensions, medical expenses and other similar benefits under defined benefit plans

(50) (33)

(47) (33)

Expenses related to stock options and share appreciation rights

Total personnel expenses

(1,340)

(1,340)

165

PERNOD RICARD REGISTRATION DOCUMENT 2017/2018