PERNOD RICARD - 2018-2019 Universal registration document

Our value creationmodel Our value creationmodel

Our resources

Our consumer-centric strategy (see pp. 16-17)

HUMAN CAPITAL Our employees around the world are at the heart of everything we do. Their mindset and the diversity of their expertise and profiles gives the Group greater agility and adaptability in an increasingly volatile context. INTELLECTUAL CAPITAL Innovation is part of our DNA. Our Brand Companies and Market Companies continuously work to ensure that we respond to our customers’ and

• 19,140employees across close to 80 affiliates in 73countries with Pernod Ricard offices • 86% outside of France

• 37% women (a) • 1.70% of Group

5 CRITICAL AREAS THAT ARE IMPACTING CONSUMERS

payroll invested in training (d)

A quest for meaning and new experiences

A newworld order, more protectionism

• 39strategicbrands inourglobalportfolio, theHouseofBrands • 16brands intheImpact Top100 • 4MarketingCentres

Foresights,Equity &Consumer Understanding, Shoppers&Travellers, MixOptimisation) • Implementation ofglobaldigitaltools thatallowustoadapt ourmarketingstrategies inreal-time

consumers’ desires and expectations.

The emergence of newmiddle classes

Digitisation of usages andwork

The need for agility and responsiveness

ofExcellence to sharpenconsumer insight(Cultural

FINANCIAL CAPITAL Our investors and shareholders provide the financial resources and stability needed for the Group to undertake its activities.

• Share Capital allocation: PaulRicard SA&Others (16.3%) , Board/Management/ Employees/Treasury/ Shares (1.7%) , InstitutionalInvestors (78.1%), Individual Shareholders (3.9%)  (a) • 89productionsite s in 23countries (a) • Naturalresourcesfrom +280,000 hectares of land including 5,625 hectares ofvineyards operatedbytheGroup

• Netdebt/EBITDA: 2.3x (a) • Marketcapitalisation: EUR 43 billion (a)

4 E S S E N T I A L S

SOCIAL CAPITAL Due to the diversity of our brands, Pernod Ricard is deeply rooted in local communities. We are committed to building long-standing and ethical relationships with all our partners – farmers, suppliers, academics & bartenders. INDUSTRIAL CAPITAL We continuously strive to improve our manufacturing and distribution processes in terms of safety, quality and efficiency, capitalising on the many innovations brought about by Industry 4.0.

• EUR 4.8 billion (a) inmaturing inventory • EUR 363million ofCAPEX • Distribution network in +160 countries

4 A C C E L E R A T O R S

• CodeforCommercial Communications ensuresthat its commercial communications donotencourageor condone irresponsible consumptionor misuseofanykind.

• Targetedaction on thegroundto tackle alcohol-related harm .Oftenworking with industrypeersand externalpartners.

4 ESSENTIALS • Operational excellence • Talent development • Sustainability & Responsibility (S&R) • Route-to-market/ consumer

4 ACCELERATORS • Portfoliomanagement • Premiumisation& luxury • Innovation • Digital acceleration

ENVIRONMENTAL CAPITAL We are committed to nurturing every terroir and its biodiversity, responding to the challenges of climate change to ensure quality ingredients now and for generations to come.

• Energyconsumption per unit produced: 6.11kWh per litre of distilled pure alcohol (d) • 6.9millionsm 3 of waterconsumption (f)

• The primary

materials used for packaging are glass (969,052tonnes) and cardboard (84,719tonnes). (d)

(a)AsatJune30,2019. (b)According to the2019 ISay survey. (c)Perunitofproduction betweenfiscalyearsFY10

andFY19. (d)InFY19. (e)TOP100Impact2017.

sites.Only6.9m 3 constitute waterconsumption,therest beingexclusivelyusedbycooling installationsandrestoredwithout any impactontheenvironment.

(g) Internal definition of top management: Job band C and above. (h)Since2010. (i)Reduction inFreeCashFlow

duetopositiveone-off items inFY18.

(f)25.2millionm 3 ofwaterwas takenfromtheGroup’s industrial

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT