PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 6.2

Share-based payments

In the course of FY18, three share allocation plans were set up on 9 November 2017: a stock option plan including a performance condition based on the ● positioning of the overall performance of the Pernod Ricard share (TSR (1) ) compared to the overall performance of a panel of 12 peers over the period from 9 November 2017 to 9 November 2020 inclusive (three years) and a condition of four years’ continuous service; a performance-based share plan, including a performance criterion ● based on the average level of Profit from Recurring Operations achieved compared to the budget, measured over three consecutive financial years including the year in which the shares were granted and a continuous service condition upon vesting (four years); a performance-based share plan, including several levels of ● performance conditions, with the first based on the average level of Profit from Recurring Operations achieved compared to the budget, measured over three financial years including the year in which the shares were granted, and the second based on the positioning of the overall performance of the Pernod Ricard share (TSR (1) ) compared to the overall performance of a panel of 12 peers over the period from 9 November 2017 to 9 November 2020 inclusive (three years) and a continuous service condition upon vesting (four years).

The Group applies the IFRS 2 “Share-based payment” standard to transactions whose award and settlement are share-based. Pursuant to this standard, stock options and performance-based shares granted to employees are measured at fair value. The amount of such fair value is recognised in the income statement over the vesting period of the rights and a corresponding double entry is recognised as an increase in shareholders’ equity. This fair value was calculated using valuation models taking into account the characteristics of the plan and market data at the date of grant and on the basis of Group Management assumptions. Description of share-based payment plans The Group grants stock option and performance-based share plans to Managers with high levels of responsibility, key Group management personnel and high-potential Managers. All of the plans are equity-settled.

Commencement date for exercise of options

Subscription or purchase price In euros

Expense for stock options for FY18 € thousand

Presence of performance condition

Outstanding options on 30 June 2018

Type of options

Number of beneficiaries

Expiry date

Plan dated 24.06.2010 Purchase Unconditional Plan dated 24.06.2010 Purchase Conditional Plan dated 15.09.2010 Purchase Conditional Plan dated 15.06.2011 Purchase Unconditional Plan dated 15.06.2011 Purchase Conditional Plan dated 06.11.2013 Purchase Conditional Plan dated 06.11.2015 Purchase Conditional Plan dated 17.11.2016 Purchase Conditional Plan dated 09.11.2017 Purchase Conditional

705 25.06.2014 24.06.2018 133 25.06.2014 24.06.2018 1 16.09.2014 15.09.2018 713 16.06.2015 15.06.2019 144 16.06.2015 15.06.2019 168 07.11.2017 06.11.2021 161 07.11.2019 06.11.2023 16 18.11.2020 17.11.2024 15 10.11.2021 09.11.2025

€64.00 €64.00 €64.00 €68.54 €68.54 €88.11 €102.80 €105.81 €126.53

0 0 0

0 0 0 0 0

154,546 81,375

0

481

276,525 150,008 124,050

1,142

569 374

Total Shareholder Return. (1)

190

PERNOD RICARD REGISTRATION DOCUMENT 2017/2018