PERNOD RICARD - 2018-2019 Universal registration document

3. SUSTAINABILITY & RESPONSIBILITY Methodology note and third-party verification

Work-study contracts (apprenticeship contracts and training contracts) are not counted as fixed-term contracts, and this also applies to work placement students, temporary workers and volunteers on the VIE programme. Maternity/paternity/parental leaves are included in the absenteeism rate. The absenteeism rate and workplace accident frequency and severity rates are calculated on the basis of the theoretical number of hours or days worked per year. Working days are used for the calculation of absenteeism rate, while calendar days are used for the workplace accident frequency and severity rates. Commuting accidents are no longer included in the number of accidents, thus are not used to calculate the frequency and severity rates. Conversely, the frequency and severity rates now take into account the number of workplace accidents involving temporary staff (workers employed by a staff agency for a temporary period and directly supervised by Pernod Ricard). Training hours completed by employees are recognised, including both face-to-face training and e-learning hours. Employees are only counted as having received training once, regardless of the number of training courses they have attended. Environmental indicators The Group footprint on agricultural land is assessed by the areas on which farm raw materials purchased are used. These equivalent areas are estimated on the basis of the agricultural yields of the various materials used by the Group (except for the agave footprint which is based on accurate land coverage). For transformed products, industrial yields are used to assess the quantities of agricultural materials purchased. The environmental performance of sites is expressed using several ratios, based on the type of business in which the Group has classified them for: distilleries: data broken down by volumes of pure distilled alcohol; — bottling sites: data broken down by volumes of bottled finished — products; wineries: data broken down by volumes made into wine; — vineyards: data broken down by surface area cultivated with vines. — At Group level, consolidated performance is expressed based either on: the amount of distilled alcohol for environmental impacts primarily — due to distillation ( e.g. water or energy consumption), expressed in units per thousand litres of pure distilled alcohol (kl PA); the bottled volume or the volume of finished products manufactured — (including products delivered in bulk) when bottling or production is the main source of impact (such as in the case of solid waste), expressed in units per thousand litres (kl); the number of hectares occupied by vineyards for agricultural — properties, expressed in units per hectare (ha).

For industrial sites, this distinction is sometimes complex, as some sites have several activities. As such, since the time frames involved in bottling may sometimes be very different from those for distilling (aged spirits: whiskies, cognac, etc.), these figures may be difficult to interpret from year to year. Both calculation methods are therefore presented for some indicators. Setting overall Group quantitative targets for the quantity of water or energy consumed per unit produced, for example, becomes complex as the consolidation of targets depends on the business mix during the year and the consolidated indicator chosen. For that reason, the results expressed by the indicators should be used with care and interpreted over the long term. In the case where a significant reporting error from previous periods is identified, historical data is only readjusted if the impact on Group performance is greater than 1%, in order to enable a better interpretation of results and trends. Collection, consolidation 3.6.1.3 andmonitoring of data Data collectionmethods To guarantee the standardisation and reliability of results, non-financial indicators are formalised in reporting procedures, including specific definitions of each indicator, passed on to all Managers involved in the process in charge of collecting and consolidating data. Pernod Ricard constantly seeks to improve the collection and analysis of its data, and therefore updates its procedures and user guide each year in line with the evolving needs of the Group. Improvements are made to ensure compliance with the requirements of the decree implementing article 225 on the transparency obligations of companies regarding social and environmental matters and in accordance with the applicable national or international frameworks. The updates also result from contributions made by affiliates when updating data and auditors’ feedback. Any changes made since the previous year are highlighted. A consolidation tool has been used to gather and process the data for FY19, supplied by local entities. For social indicators, a new tool has been created and used to gather and process the data from FY19. Methods for consolidating and checking the data After being submitted by the management, data is gathered at management entity level, then at Region or Brand level, to be sent to the Headquarters. At each level, the data is processed and consolidated. Each entity that collects and includes data is responsible for the indicators supplied and certifies the data as well as its control. This control is facilitated by automatic checks within the data entry tool in the consolidation documents sent to the Regions or Brands and in the consolidation tool. Amongst other things, these include consistency checks in comparison with previous years and between the indicators themselves. For social indicators, at each step, the affiliates can explain any variations versus the fiscal year before. Once all of the data have been collected, Headquarters performs consistency checks to identify any reporting or input errors, and when there are significant variations, the Group checks with the affiliates to ensure the data is valid. Finally, Headquarters consolidates these data.

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT