PERNOD RICARD - 2018-2019 Universal registration document

6.

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Tax loss carryforwards (recognised and unrecognised) represent potential tax savings of €1,202 million and €1,165 million at 30 June 2019 and 30 June 2018 respectively. The potential tax savings at 30 June 2019 and 30 June 2018 relate to tax loss carryforwards with the following expiry dates: FY18

Tax effect of loss carryforwards € million Losses recognised Losses not recognised

Year 2018 2019 2020 2021

1

1

0

0 0 0

1

2

2022 and after No expiry date

682 184

190 103

TOTAL

870

296

FY19

Tax effect of loss carryforwards € million Losses recognised Losses not recognised

Year 2019 2020 2021 2022

0 0

1 1 1 1

1

2

2023 and after No expiry date

737 167

196

93

TOTAL

908

294

Earnings per share Note 3.4 Basic and diluted earnings per share are calculated on the basis of the weighted average number of outstanding shares, less the weighted average number of dilutive instruments. The calculation of diluted earnings per share takes into account the potential impact of the exercise of all dilutive instruments (such as stock options, convertible bonds, etc.) on the theoretical number of

shares. When funds are obtained at the date of exercise of the dilutive instruments, the “treasury stock” method is used to determine the theoretical number of shares to be taken into account. When funds are obtained at the issue date of the dilutive instruments, net profit is adjusted for the finance cost, net of tax,

relating to these instruments.

Group net profit and net earnings per share fromcontinuing operations

30.06.2019

30.06.2018

Numerator (€ million) Group net profit

1,577

1,455

Denominator (in number of shares) Average number of outstanding shares

264,113,889

264,173,497

Dilutive effect of performance-based share allocations Dilutive effect of stock options and subscription options Average number of outstanding shares – diluted

1,062,410

1,043,157

366,703

202,895

265,543,003

265,419,549

Earnings per share (€) Group earnings per share – basic Group earnings per share – diluted

5.97 5.94

5.51

5.48

172

2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT