PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

CREATING S H A R E D V A L U E

_ WƌŽĐƵƌĞ ŚŝŐŚͲƋƵĂůŝƚLJ ƌĂǁŵĂƚĞƌŝĂůƐ

_ ŐĞŝŶŐ Brands such as Martell ĂƌĞ ĐůĂƐƐŝĮĞĚ ĂƐ K ͕ Ă ŐĞŽŐƌĂƉŚŝĐĂů ŝŶĚŝĐĂƟŽŶ that requires an ageing period to reach full maturity. Their ageing, storage and ďŽƩůŝŶŐ ĚĞŵĂŶĚ ƌĞĮŶĞĚ ĞdžƉĞƌƟƐĞ ƚŚĂƚ ƌĞƉƌĞƐĞŶƚƐ Ă ĐŽŶƐŝĚĞƌĂďůĞ ĐŽŵƉĞƟƟǀĞ advantage as well as a barrier to market entry.

_ ŶŚĂŶĐĞ ŽƵƌ ƉƌŽĚƵĐƟŽŶ ĐĂƉĂĐŝƚLJ tĞ ƚĂŬĞ ŐƌĞĂƚ ĐĂƌĞ ǁŚĞŶ ďŽƩůŝŶŐ our products and comply with all relevant quality and safety standards. ϵϵ͘ϯй ŽĨ ŽƵƌ ƐŝƚĞƐ ŚĂǀĞ ƌĞĐĞŝǀĞĚ /^K ϵϬϬϭ ĐĞƌƟĮĐĂƟŽŶ͘ ϯϬй ƌĞĚƵĐƟŽŶ ŝŶ K 2 ĞŵŝƐƐŝŽŶƐ ;^ĐŽƉĞ ϭнϮͿ ƉĞƌ ƵŶŝƚ ƉƌŽĚƵĐĞĚ ;ůŝƚƌĞ ŽĨ ĚŝƐƟůůĞĚ ĂůĐŽŚŽůͿ ƐŝŶĐĞ ϮϬϭϬ͘ ϮϬй ƌĞĚƵĐƟŽŶ ŝŶ ǁĂƚĞƌ ĐŽŶƐƵŵƉƟŽŶ ƉĞƌ ƵŶŝƚ ƉƌŽĚƵĐĞĚ ;ůŝƚƌĞ ŽĨ ĚŝƐƟůůĞĚ ĂůĐŽŚŽůͿ ƐŝŶĐĞ ϮϬϭϬ͘ _ /ŶŶŽǀĂƚĞ /ŶŶŽǀĂƟŽŶ ŝƐ Ă ƐƚƌĂƚĞŐŝĐ ƉƌŝŽƌŝƚLJ͕ ĂƐ ƌĞŇĞĐƚĞĚ ŝŶ ŽƵƌ ƌĞĂŬƚŚƌŽƵŐŚ /ŶŶŽǀĂƟŽŶ 'ƌŽƵƉ ; /'Ϳ and our Brand and Market Companies. KƵƌ ŐŽĂů ĨŽƌ ƚŚĞ ŵĞĚŝƵŵ ƚĞƌŵ ŝƐ ƚŽ ŽďƚĂŝŶ ϮϬй ƚŽ Ϯϱй ŽĨ ƚŚĞ 'ƌŽƵƉ͛Ɛ ŐƌŽǁƚŚ ƚŚƌŽƵŐŚ ŝŶŶŽǀĂƟŽŶ͘ _ ĐƟǀĞůLJ ŵĂŶĂŐĞ ŽƵƌ ƉŽƌƞŽůŝŽ dŚĞ 'ƌŽƵƉ ĂĐƋƵŝƌĞƐ ƉƌĞŵŝƵŵ ďƌĂŶĚƐ ǁŝƚŚ ŚŝŐŚ ƉŽƚĞŶƟĂů ĂŶĚ ĚŝƐƉŽƐĞƐ ŽĨ ŶŽŶͲƐƚƌĂƚĞŐŝĐ ĂƐƐĞƚƐ͘ ϭ͕ϲϵϯ ƐƵƉƉůŝĞƌƐ ŚĂǀĞ ƉůĞĚŐĞĚ ƚŽ ƌĞƐƉĞĐƚ ƐƵƐƚĂŝŶĂďŝůŝƚLJ ƉƌŝŶĐŝƉůĞƐ ;ĂƐ ŽĨ ϯϭ :ƵŶĞ ϮϬϭϴͿ ďLJ ƐŝŐŶŝŶŐ ƚŚĞ ^ƵƉƉůŝĞƌƐ ^Z ŽŵŵŝƚŵĞŶƚ (1) . All of our products are made from agricultural rawmaterials, which is one of the reasons why we ĂƌĞ ĮƌŵůLJ ĐŽŵŵŝƩĞĚ ƚŽ ƉƌŽƚĞĐƟŶŐ ůŽĐĂů ŶĂƚƵƌĂů ƌĞƐŽƵƌĐĞƐ ǀŝƚĂů ƚŽ ƉƌŽĚƵĐŝŶŐ ŚŝŐŚͲƋƵĂůŝƚLJ ƉƌŽĚƵĐƚƐ ĂŶĚ ŵĂŶĂŐŝŶŐ ŽƵƌ ƌĂŶĚƐ͛ ĂƐƐĞƚƐ͘

Φϰ͘ϱ ďŝůůŝŽŶ ŝŶ ŵĂƚƵƌŝŶŐ ŝŶǀĞŶƚŽƌLJ͘

_ ,ŝŐŚͲƋƵĂůŝƚLJ ƉƌŽĚƵĐƚƐ

KƵƌ ƉƌŽĚƵĐƚƐ ŽīĞƌ Ă ŚŝŐŚ ůĞǀĞů ŽĨ ƋƵĂůŝƚLJ͘ dŚĞLJ ďĞĂƌ ƚŚĞ ĂƵƚŚĞŶƟĐ ƐƚĂŵƉ ŽĨ ƚŚĞ regions where they are produced, ĂŶĚ ŽŌĞŶ ĐĂƌƌLJ ĂŶ ƉƉĞůůĂƟŽŶ ĚΖKƌŝŐŝŶĞ ŽŶƚƌƀůĠĞ ; K Ϳ͘

;ϭͿdŚĞƉƵƌƉŽƐĞŽĨƚŚŝƐĚŽĐƵŵĞŶƚŝƐƚŽĞĚƵĐĂƚĞŽƵƌƐƵƉƉůŝĞƌƐĂďŽƵƚĂŶƵŵďĞƌŽĨŝŵƉŽƌƚĂŶƚƚŽƉŝĐƐ͗ůĂďŽƌĂŶĚŚƵŵĂŶƌŝŐŚƚƐ͕ŚĞĂůƚŚĂŶĚƐĂĨĞƚLJ͕ĞŶǀŝƌŽŶŵĞŶƚĂůŵĂŶĂŐĞŵĞŶƚ͕ ĞƚŚŝĐƐĂŶĚĨĂŝƌƚƌĂĚĞƉƌĂĐƟĐĞƐĂŶĚƌĞƐƉŽŶƐŝďůĞĐŽŶƐƵŵƉƟŽŶ͘

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018