PERNOD RICARD - 2018-2019 Universal registration document

6.

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

3. Colombia

Commercial disputes

A complaint was filed before the Colombian Competition Agency (the through such activity. The plaintiffs seek to reclaim lost profits and taxes Superintendencia De Industria Y Comercio) on 14 November 2017 by the for a four year period between 2013 and 2017. Pernod Ricard intends to Department of Cundinamarca and its wholly owned distilling company vigorously defend itself against such allegations. This recent complaint Empresa de Licores de Cundinamarca against Pernod Ricard SA, Pernod contains allegations that are similar to those made in prior legal Ricard Colombia SA and a competitor company. The complaint alleges proceedings before the New York courts brought by Cundinamarca, the that the defendants have committed violations of the Colombian Unfair Republic of Colombia and several other Colombian departments in Competition Act and, in particular, articles 7 and thereof, through the 2004. The New York proceedings were dismissed voluntarily by the illegal import of spirits into Colombia. The complaint alleges that the parties in 2012. companies have gained an unfair market advantage over local producers Related parties Note 6.6 Transactions with associates and joint ventures were immaterial in the year ended 30 June 2019. The compensation paid to corporate officers and Executive Committee (COMEX) members in return for their services to the Group is detailed below:

30.06.2019

30.06.2018

€ million

Board of Directors  (1)

1

1

Group Executive Committee Short-term benefits — Post-employment benefits — Share-based payments  (2) —

14

14

4

5

5

6

TOTAL EXPENSES RECOGNISEDFOR THE YEAR

24

26

Compensation of Directors. (1) The cost of share-based payments corresponds to the expenses recognised in profit/loss over the period under stock options and performance-based shares allocated to the members of the Group Executive (2) Committee.

Subsequent events Note 6.7 Since 30 June 2019, as part of its active portfolio management strategy, the Group has finalised the acquisitions of 100% of Firestone & Robertson Distilling Co. (USA), owner of the TX Bourbon brand, a majority interest in Rabbit Hole Spirits, LLC (USA), owner of the Rabbit Hole Whiskey Bourbon brand, a majority interest in Laurenskirk (PTY) Ltd. (South Africa), owner of the Inverroche Gin brand, 100% of Bodeboca, SL (Spain), owner of the Bodeboca digital platform, and 34% of the Seagram MM Holdings joint venture (Myanmar), owner of the High Class Whisky brand. These acquisitions represent a total amount of approximately €250 million. Furthermore, on 28 August 2019, the Group announced that it had reached a final agreement with the Board of Directors of the listed US company Castle Brands Inc. (NYSE American: ROX) for the purchase of all the company's shares at a price of $1.27 per share, payable in cash, i.e. an estimated total amount of $223 million, as well as the assumption of the company's debt.

Moreover, the Executive Director are eligible for the following termination compensation (subject to a regulated agreement approved by the Shareholders’ Meeting of 17 November 2016): one-year non-compete clause, together with a payment — corresponding to 12 months’ compensation; imposed departure clause subject to performance conditions, — together with a maximum payment corresponding to 12 months’ compensation. These clauses were not implemented in the course of the past financial year.

202

2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT