PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

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SUSTAINABILITY & RESPONSIBILITY (S&R) EMPOWER OUR EMPLOYEES

Working time 3.2.3.2 Across the Group, 4% of the workforce work part-time.

* Under the French Grenelle 2 Law, these indicators are calculated as follows: frequency rate = number of workplace and commuting accidents ● with sick leave x 1 million/number of hours theoretically worked per employee x average annual workforce; severity rate = number of sick days for workplace accident x ● 1,000/number of hours theoretically worked per employee x average annual workforce. The number of workplace and commuting accidents with lost time (as well as the frequency and severity rates of these accidents) fell compared to 2016/17. However, this year there was a fatality following a work-related accident. Employee engagement 3.2.3.4 The Group has a very high level of engagement from its employees. To measure the effectiveness of its HR policy on this commitment, Pernod Ricard relaunched its opinion survey “iSay” in June 2017, which has been carried out every two years since 2011 in conjunction with Towers Watson. In this edition, 82% of employees completed a questionnaire available in 35 languages and containing just over 100 questions, with each edition being identical so as to measure progress. It indicated a level of commitment of 88%, far surpassing other businesses in the Fast Moving Consumer Goods sector. These surveys also make it possible to identify the main areas in which the Group will aim to implement specific action plans. This year, the action plans following the 2017 edition of the survey were implemented, reaching around 94% of employees. The main areas for action are “Organisational Efficiency”, “Career Development” and “Diversity”. 1,322 resignations were recorded over the year, resulting in a low, stable voluntary departure rate of 7.6%. The rate of voluntary departure is obtained by dividing the number of resignations by the average workforce with permanent contracts.

The average number of theoretical hours worked per employee in FY18 was approximately 1,777. The number of theoretical hours worked per day in the Group averages 7.8 hours and around 228 days worked per year (excluding weekends, public holidays, legal or contractual annual leave, additional holidays and compensation days for reduction in working hours [“RTT” in France]). Occupational health and safety 3.2.3.3 In accordance with the Group’s commitment, all employees are offered a welfare protection plan covering major risks (death and invalidity) and 94.2% of employees benefit from this type of coverage (some people chose not to be covered or are covered by their partner’s employer). In addition, 95.9% of employees benefit from health insurance (health insurance is defined as the regime that is compulsory at local level, whether or not supplemented by a company plan). Pernod Ricard is officially committed to matters of health and safety as part of its commitments to sustainable development. This commitment applies throughout the Group, and is supported by Senior Management. In 2017, more than 90% of workplace accidents were linked to Pernod Ricard’s industrial and agricultural operations. Although 92% of its industrial sites are OHSAS 18001 certified and have a health and safety management system in place, in late 2017 Pernod Ricard began preparing a full list of the industrial sites with the greatest potential for improvement. These assessments were carried out by a third party, with precise expectations both at a cultural level and concerning the OHSAS 18001 management system for occupational health and safety. In the future, this approach will be extended to all industrial sites (see “Risk management” section in Part 4 “Management report”). Group workplace accidents

FY18

FY17

Number of lost-time (workplace and commuting) accidents

FY18

FY17

188

156

Absenteeism rate

3.73%

3.65%

Frequency rate* Severity rate*

6

5

0.13

0.08

Occupational illnesses are included in illnesses in order to calculate the absenteeism rate. An illness is said to be occupational if it is the result of employee exposure to a physical, chemical or biological risk or if it results from the conditions in which the employee performs their job.

According to the 2017 edition of the “iSay” opinion survey, the level of employee engagement has risen to 88%.

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018