PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Actuarial value of cumulative benefit obligations

Fair value of plan assets

Limitation of plan assets

Recognised in liabilities and shareholders’ equity

Amount recognised in assets

At 30.06.2018

€ million

% € million

% € million

% € million

% € million

%

United Kingdom

4,122

79% 4,771

87%

0 0

0% 0% 0% 0% 0% 0% 0%

88

17% (737)

98%

United States

356 268 239 139 116

7% 5% 5% 3% 2%

212 255 167

4% 5% 3% 0% 1%

144

27%

0

0% 2% 0% 0% 0%

Canada Ireland France

(11)

39 72

7%

(15)

0 0 0

14% 23% 11%

0 0

15 58

123

Other countries

60

(1)

TOTAL

5,240

100% 5,478

100% (11)

526

100% (754)

100%

The breakdown of pension assets between the different asset classes (bonds, shares, etc.) is as follows:

30.06.2018

30.06.2017

Medical expenses and other employee benefits

Medical expenses and other employee benefits

Pension benefits

Breakdown of plan assets

Pension benefits

Shares Bonds

18% Not applicable 36% Not applicable 0% Not applicable 7% Not applicable 39% Not applicable 100% NOT APPLICABLE

18% Not applicable 35% Not applicable 0% Not applicable 6% Not applicable 40% Not applicable 100% NOT APPLICABLE

Other money market funds

Property assets

Other items

TOTAL

Contributions payable by the Group in FY19 in respect of funded benefits are estimated at €52 million. Benefits payable in respect of defined benefit plans over the next 10 years are broken down as follows:

Medical expenses and other employee benefits

Benefits payable in the next 10 years € million

Pension benefits

2019 2020 2021 2022 2023

259 266 272 285 286

8 8 8 8 8

2024-2028

1,571

41

On 30 June 2017 and 30 June 2018, the main assumptions used for the measurement of pension obligations and other long-term employee benefits were as follows:

30.06.2018

30.06.2017

Medical expenses and other employee benefits

Medical expenses and other employee benefits

Pension benefits

Actuarial assumptions in respect of commitments

Pension benefits

Discount rate

2.62%

3.50%

2.78%

3.40%

Average rate of increase in annuities

3.34% Not applicable

3.29% Not applicable

Average salary increase

2.81%

3.39%

2.60%

3.16%

Expected increase in medical expenses Initial rate ●

Not applicable Not applicable

6.65% Not applicable 4.75% Not applicable

6.22% 4.61%

Final rate ●

177

PERNOD RICARD REGISTRATION DOCUMENT 2017/2018