PERNOD RICARD - 2018-2019 Universal registration document

3.

SUSTAINABILITY & RESPONSIBILITY The four pillars of the Good Times from a Good Place roadmap

Working conditions andHealth&Safety

3.3.2.3 Employee engagement

The Group has a very high level of employee engagement. To measure the effectiveness of its HR Strategy on this commitment, Pernod Ricard relaunched its employee opinion survey “iSay” in June 2019, which has been carried out every two years since 2011 in conjunction with Willis Towers Watson. In this edition, 88% of employees completed a questionnaire with over 100 questions available in 35 languages, with each edition being similar to

be able to measure progress. It indicated an engagement level of 88%, far surpassing other businesses in the Fast-Moving Consumer Goods sector. These surveys also make it possible to identify the main areas in which the Group will aim to implement specific action plans. Moreover, this commitment is visible through low and stable voluntary departure and absenteeism rates.

FY19 13.6% 1,309

FY18 12.7% 1,322 7.6% 82% (4) 88% (4) 3.65%

Number and %

Total departure rate  (2) Number of resignations  (2) Voluntary departure rate  (2) (1)

7.3% 88% 88%

Employees that completed the “iSay” Survey  (3)

Engagement rate (“iSay”)  (3)

Absenteeism rate  (3)

3.73%

The rate of voluntary departure is obtained by dividing the number of resignations by the average workforce with permanent contracts. (1) Permanent contracts. (2) Fixed-term and permanent contracts. (3) " iSay" survey results of FY17. (4)

Welfare, social protection and labour relations Policies and objectives Compensation policy The compensation policy is based on the decentralised business model, except for the Group Senior Management, whose compensation is overseen by Headquarters. Each affiliate manages its policy locally while upholding a set of common rules: develop a performance culture, offer compensation that is competitive with local market practices, and set up straightforward, meaningful and motivating compensation packages. Total payroll is included in paragraph Note 3.5 – Expenses by type of Section 6 “Consolidated financial statements”. This year, payroll represented 13% of net sales (unchanged from the previous year). Signature of social agreements Each year, the affiliates sign roughly one hundred agreements with the various social partners throughout the world , thereby encouraging the enhancement of social dialogue. The number of agreements signed depends on local legislation changes. The agreements signed by affiliates during the year ended mainly compensation and profit-sharing, collective welfare schemes and occupational health and safety. Performance culture: profit-sharing and incentive policies Performance is encouraged through favourable profit-sharing and incentive policies. The total gross amount paid as profit-sharing and incentive plans to over 5,517 employees amounted to more than €40 million, to which matching contributions were added (additional sum paid to employees for investments in the Company savings plan) amounting to nearly €5 million. Moreover, long-term profit-sharing policies (such as allocating performance-based shares) have been implemented again in FY19 for nearly 1,000 employees across all of the countries in which the Group operates. In 2019, the Group launched Accelerate , its very first Employee Share Ownership Plan. This first edition of the Plan has been deployed across 18 countries, covering 75% of Group’s employees, with the clear objective to associate employees directly with the Group’s future development and growth. The initiative proved highly successful, with an overall

subscription rate of 41.5%, a level rarely achieved when structured offerings are launched. The subscription rate exceeded 60% in a number of countries, such as India (76.4%) and Hong Kong (60.4%). In France, the subscription rate was 56.9%.

Action plans and next steps Welfare protection and health insurance

In accordance with the Group’s commitment, all employees are offered a welfare protection plan covering major risks (death and invalidity). Some chose not to be covered or are covered by their spouse's employer. Social dialogue The Group has a long tradition of social dialogue and promotes freedom of association in all the countries where it is present. In addition, it firmly believes in the importance of providing a working environment which optimises working conditions. EuropeanWorks Council : with more than 50% of its staff based in — Europe, the Group has mainly focused its actions on the European employee representatives, through the European Works Council. This council gathers one or more representatives of every affiliate within the European Union with more than 50 people, and totals 24 representatives in FY19. The European Works Council meets for three days each year, including one day dedicated to specific training offered to all representatives. A select committee, elected by their peers, comprises five members from five different countries and meets at least once a year. The select committee may act on its own initiative to respond to any social measure that might be taken in Europe involving at least two European countries in which Pernod Ricard has local teams. To share information, a mini-site, available on the Intranet publishes content every year co-written by delegates and the HR Department. The France Group Committee meets once a year. It brings together employee representatives appointed by the largest trade union organisations in the French affiliates. At these meetings, the Group’s business activity is reviewed, together with an analysis of employment trends and changes forecast during the year ahead.

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2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT