PERNOD RICARD - 2018-2019 Universal registration document

6.

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Asia/Rest of theWorld

30.06.2018 as reported

IFRS 15 impact

30.06.2018 restated

€ million

Net sales

3,648 2,164 (662) 1,502 996

(84) (134)

3,564 2,030 (528) 1,502 996

Gross margin after logistics expenses Advertising and promotion expenses

134

Contribution after advertising and promotion expenses PROFIT FROMRECURRINGOPERATIONS

- -

Europe

30.06.2018 as reported

IFRS 15 impact

30.06.2018 restated

€ million

Net sales

2,792 1,749 (525) 1,224 626

(119) (119)

2,674 1,630 (406) 1,224

Gross margin after logistics expenses Advertising and promotion expenses

119

Contribution after advertising and promotion expenses PROFIT FROMRECURRINGOPERATIONS

- -

626

Breakdown of net sales

30.06.2018 as reported

IFRS 15 impact

30.06.2018 restated

€ million

Strategic International Brands

5,623 480 1,717 1,166

(218)

5,405

Priority PremiumWines Strategic Local Brands

(5)

475

(56)

1,661 1,181

Other income

15

TOTAL

8,987

-

8,722

2.1.2 IFRS 9 (Financial Instruments) Accounting principles amended following the application of IFRS 9 are as follows: financial assets in Note 4.3 – Financial assets ; — trade receivables in Note 4.5 – Trade receivables and other operating — receivables ; financial liabilities in Note 4.8 – Financial liabilities ; — derivatives in Note 4.10 – Interest rate, foreign exchange and commodity — derivatives . IFRS 9 is applied in accordance with the retrospective method for phases 1 and 2, and the prospective method for phase 3 as of 1 July 2018, without restating comparable periods. This standard replaces IAS 39, which was applied until 30 June 2018. At that date, consolidated shareholders’ equity was negatively impacted in the amount of €(1) million by the first-time application of IFRS 9. The impact stems from the impairment of trade receivables. None of the other provisions of IFRS 9 had an impact on consolidated equity at 1 July 2018. The analyses conducted by the Group and their various conclusions are set out by phase below. Phase 1 – Classification andmeasurement of financial assets and financial liabilities The Group analysed its financial assets in the context of the new classification proposed by IFRS 9, based on its management model and the contractual characteristics of its financial assets. The Group’s financial assets (excluding assets covered by IAS 19) consist mainly of equity instruments (chiefly securities of non-consolidated companies), loans, receivables and deposits.

Following this analysis, equity instruments that were previously classified as “Available-for-sale financial assets” under IAS 39 (€13 million at 30 June 2018) have been reclassified as “Equity instruments measured at fair value through equity” under IFRS 9. This reclassification is justified by the fact that: these assets, by their nature, do not generate cash flows consisting — solely of the payment of interest and the repayment of principal at specified dates; the Group did not use the option of classifying these assets at fair — value through profit or loss. In the future, and whenever equity instruments are purchased, analysis will be conducted to determine the Group’s management intention, which will govern the method used to account for changes in fair value. Fair value measurement methods are set out in Note 4.9 – Financial instruments of these notes. They have not been modified. Financial assets are still presented on the “Financial assets” line in the balance sheet, and are classified (excluding assets governed by IAS 19) depending on their category and measurement method, as described in Note 4.9 – Financial instruments of these notes. Other financial assets (loans, receivables, deposits and guarantees) are not affected by a change in valuation method and continue to be measured using the amortised cost method. The analysis carried out did not result in the identification of financing

renegotiation operations requiring restatement. Phase 2 – Financial asset impairment model

The analysis focused mainly on the impairment of trade receivables, as the Group does not have material non-Group loans, or any financial receivables.

165

2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT