PERNOD RICARD - Notice of meeting 2020

2. BOARD OF DIRECTORS

Activities of the Board of Directors' Committees 2.5 in 2019/20 Audit Committee

4 Directors

100%

100%

Attendance rate

Independence rate

Main activities in FY20

In accordance with its Internal Regulations and in conjunction with the Statutory Auditors and the Consolidation, Treasury and Internal Audit Departments of the Company, the work of the Audit Committee centred primarily on the following issues: review of the main provisions of French and foreign legislation or regulations, reports and commentaries with regard y to corporate governance, risk management, internal control and audit matters; review of the interim financial statements at 31 December 2019 during the meeting held on 11 February 2020; y review of the consolidated financial statements at 30 June 2020 (reviewed at the meeting held on 31 August 2020): y the Audit Committee met with Management and the Statutory Auditors in order to discuss the financial statements and accounts and their reliability for the whole Group. In particular, it examined the conclusions of the Statutory Auditors and the draft financial reporting presentation. At the meetings of 9 June and 31 August 2020, the subject of impairment tests came under discussion; monitoring of the Group’s cash flow and debt; y risk management: the Group’s main risks are regularly presented in detail to the Audit Committee (the meetings held on y 11 December 2019 and 9 June 2020 were devoted mainly to risk management). At the meeting of 9 June 2020, the risk environment was analysed in the specific context of the Covid-19 crisis (impacts, measures, scenarios). Various initiatives were the subject of cross-functional reviews: personal safety, review of strategy consulting purchasing processes, security of payments and control of free products, with the aim of improving operating methods within the Group’s various subsidiaries; review of internal control: the Group sent its affiliates a self-assessment questionnaire to evaluate whether their internal y control system was adequate and effective. Based on the Group’s internal control principles and in compliance with the French Financial Markets Authority (AMF) reference framework for risk management and internal control (“Cadre de référence de l’Autorité des marchés financiers (AMF) sur le dispositif de gestion des risques et de contrôle interne”) and the AMF’s application guide published in 2007 and updated in July 2010, this questionnaire covers notably corporate governance practices, operational matters and IT support. Responses to the questionnaire were documented and reviewed by the Regions and the Group’s Internal Audit Department. An analysis of the questionnaires returned was presented to the Audit Committee at the meeting held on 31 August 2020; examination of the internal audit reports: in addition to the audits and controls carried out by the various affiliates on their y own behalf, 24 internal audits were performed in FY20 by the internal audit teams (including IT audits). A full report was drawn up for each audit covering the types of risks identified – operational, financial, legal or strategic – and how they are managed. Recommendations were issued when deemed necessary. The Audit Committee approved the recommendations of the audit reports issued and performs regular checks on the progress made in implementing the recommendations from previous audits; and approval of the Group internal audit plan for FY21 at the meeting held on 9 June 2020. The audit plan was prepared y and approved, taking into account the Group’s main risks.

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Pernod Ricard Notice of Meeting 2020