PERNOD RICARD - 2018-2019 Universal registration document

6.

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Movements in the year

Foreign currency gains and losses

Change in gross value

Change in impairment

Other movements 30.06.2019

30.06.2018

€ million

Rawmaterials

136

2

- - - - -

0

2

140

Work-in-progress Goods in inventory Finished products GROSS VALUE Work-in-progress Goods in inventory Finished products IMPAIRMENT Rawmaterials

4,614

269

(15)

9

4,877

467 300

38

2

(2)

505 280

(23) 286

0

3

5,517

(13)

11

5,802

(9) (11) (13) (13)

- - - - -

(1)

0 0 0 0 0

- -

(10) (10) (13) (13)

1

0 0

0 0 0

(45)

(1) (1)

(46)

NET INVENTORIES 5,756 At 30 June 2019, ageing inventories intended mainly for use in whisky and cognac production accounted for 78% of work-in-progress. Pernod Ricard is not significantly dependent on its suppliers. 5,472 286 (13) 11

Trade receivables and other operating receivables Note 4.5

Trade receivables and other operating receivables are recognised nominal value. Provisions for impairment are recognised in line initially at their fair value, which usually corresponds to their with the losses expected over the life of the receivable.

The following tables break down trade receivables and other operating receivables as of 30 June 2018 and 30 June 2019 by due date:

Due in respect of the following terms

Net carrying amount

181 to 360 days > 360 days

Not due

< 30 days 31 to 90 days 91 to 180 days

€ million

Net carrying amounts Trade receivables and other operating receivables as of 30.06.2018

1,122 (60)

884 (12)

137 (1)

53

27 (1)

5

16

O/w impairment

(4)

(2)

(40)

Trade receivables and other operating receivables as of 30.06.2019

1,226

985 (13)

122 (1)

47

23

14

36

O/w impairment

(67)

(4)

(2)

(2)

(43)

Changes in the impairment of trade receivables and other operating receivables were as follows:

FY19

FY18

€ million

At 1 July

65

60

Allowances during the year Reversals during the year

13

12

(8) (7) (3) 60

(3) (2)

Used during the year

Foreign currency gains and losses

0

At 30 June

67

At 30 June 2019, there was no reason to question the creditworthiness of non-impaired past due receivables. More specifically, non-impaired receivables with due dates of over 12 months show no additional credit-related risk. There is no significant concentration of risks.

In FY18 and FY19 the Group continued to implement its programmes to sell the receivables of several affiliates. Receivables sold under these programmes totalled €610 million at 30 June 2018 and €674 million at 30 June 2019. As substantially all risks and rewards associated with the receivables were transferred, they were derecognised.

179

2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT