PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The experience gains or losses on the benefit obligations and plan assets are set out below:

30.06.2018

Medical expenses and other employee benefits

Pension benefits

€ million

Amount of experience losses or (gains) on benefit obligations Percentage compared with amount of benefit obligations Amount of financial assumption losses or (gains) on benefit obligations Amount of demographic assumption losses or (gains) on benefit obligations Percentage compared with amount of benefit obligations Amount of experience losses or (gains) on plan assets Percentage compared with amount of plan assets Amount of experience losses or (gains) on the limitation on assets Financial liabilities Note 4.8 IAS 32 and IAS 39 relating to financial instruments have been applied as at 1 July 2004. IFRS 7 has been applied from 1 July 2007. The amendment approved by the European Union on 22 November 2011 has been applied from 1 July 2011. Borrowings and other financial liabilities are recognised, on the basis of their effective interest rates, in accordance with the amortised cost method. The effective interest rate includes all costs, commissions and fees payable under the contract between the parties. Under this method, costs that are directly attributable to the acquisition or issue of the financial liability are recognised in profit and loss on the basis of the effective interest rate. Percentage compared with amount of benefit obligations Percentage compared with amount of plan assets Average duration

2

0

0.0% (202) -4.0% 0.0% (122) -2.2% (2)

-0.3%

(9)

-6.3%

(1)

-0.4%

-

0.0%

11

-

0.2% 15.86

0.0% 12.45

In accordance with IAS 7 (Statement of cash flows), cash and cash equivalents presented in assets and liabilities in the balance sheet and shown in the consolidated cash flow statements include items that are immediately available as cash or are readily convertible into a known amount of cash and which are subject to an insignificant risk of change in their value. Cash is composed of cash at bank and on hand, short-term deposits with an initial maturity of less than three months and money market mutual funds that are subject to an insignificant risk of change in their value. Cash equivalents are short-term investments with a maturity of less than three months. Bank overdrafts, which are considered to be equivalent to financing, are excluded from cash and cash equivalents.

Net financial debt, as defined and used by the Group, corresponds to total gross debt (translated at the closing rate), including fair value and net foreign currency assets hedge derivatives (hedging of net investments and similar), less cash and cash equivalents.

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018