PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

3 SUSTAINABILITY & RESPONSIBILITY (S&R) VERIFYING NON-FINANCIAL INFORMATION

Clarification relating 3.7.2 to indicators

The environmental performance of sites is expressed using several ratios, based on the type of business in which the Group has classified them for: distilleries: data broken down by volumes of pure distilled alcohol; ● bottling sites: data broken down by volumes of bottled finished ● products; wineries: data broken down by volumes made into wine; ● vineyards: data broken down by surface area cultivated with vines. ● At Group level, consolidated performance is expressed based either on: the amount of distilled alcohol for environmental impacts primarily ● due to distillation (e.g. water or energy consumption), expressed in units per thousand litres of pure distilled alcohol (kl PA); the bottled volume or the volume of finished products manufactured ● (including products delivered in bulk) when bottling or production is the main source of impact (such as in the case of solid waste), expressed in units per thousand litres (kl); the number of hectares occupied by vineyards for agricultural ● properties, expressed in units per hectare (ha). For industrial sites, this distinction is sometimes complex, as some sites have several activities. As such, since the time frames involved in bottling may sometimes be very different from those for distilling (aged spirits: whiskies, cognac, etc.), these figures may be difficult to interpret from year to year. Both calculation methods are therefore presented for some indicators. Setting overall Group quantitative targets for the quantity of water or energy consumed per unit produced, for example, becomes complex as the consolidation of targets depends on the business mix during the year and the consolidated indicator chosen. For that reason, the results expressed by the indicators should be used with care and interpreted over the long term. In the case where a significant reporting error from previous periods is identified, historical data is only readjusted if the impact on Group performance is greater than 1%, in order to enable a better interpretation of results and trends. Data collection methods 3.7.3.1 To guarantee the standardisation and reliability of results, non-financial indicators are formalised in reporting procedures, including specific definitions of each indicator, passed on to all Managers involved in the process in charge of collecting and consolidating data. The Group Pernod Ricard constantly seeks to improve the collection and analysis of its data, and therefore updates its procedures and user guide each year in line with the evolving needs of the Group. Improvements are made to ensure compliance with the requirements of the decree implementing article 225 on the transparency obligations of companies regarding social and environmental matters and in accordance with the applicable national or international frameworks. The updates also result from contributions made by affiliates when updating data and auditors’ feedback. Any changes made since the previous year are highlighted. A consolidation tool has been used to gather and process the data for FY18, supplied by local entities. Collection, consolidation 3.7.3 and monitoring of data

Social indicators 3.7.2.1 New appointments and departures on fixed-term contracts have been published since 2015/16. To make it easier to record these, particularly in the case of seasonal workers in vineyards, it was decided that only one appointment and departure would be recorded for employees on several successive fixed-term contracts over the reference period (with the appointment date being the date of the first contract and the departure date being the departure date of the last contract). Age and seniority are calculated based on staff on permanent contracts. Average headcount is calculated on a full-time equivalent basis, without taking into account long- and short-term absences. Since 2015, expatriate and seconded employees have had to be included in the headcount of the affiliate that bears the costs or the majority of their costs, especially if their payrolls are reinvoiced to this company. This is also the case for Brand Ambassadors and Brand Promoters. Pernod Ricard China employees are accounted for as staff on permanent contracts. Chinese employment contracts actually comprise a statutory duration and are only converted into permanent contracts after a number of years. However, given the specific characteristics of employment legislation in China, the Group Pernod Ricard considers its employees to be staff on permanent contracts. Due to the particular characteristics of local employment laws, as of last year the same rule applies to Pernod Ricard Minsk employees, as the concept of a fixed-term contract does not exist in Belarus. Work-study contracts (apprenticeship contracts and training contracts) are not counted as fixed-term contracts, and this also applies to work placement students, temporary workers and volunteers on the VIE programme. Maternity/paternity/parental leave are included in the absenteeism rate. Working time, the absenteeism rate and workplace accident frequency and severity rates are calculated on the basis of the theoretical number of hours or days worked per year and in working days. Commuting accidents are included in the number of accidents, and are used to calculate the frequency and severity rates. The frequency and severity rates do not take into account the number of workplace accidents involving temporary staff or external service providers. Training hours completed by employees are recognised, including both face-to-face training and e-learning hours. Employees are only counted as having received training once, regardless of the number of training courses they have attended. Environmental indicators 3.7.2.2 The Group footprint on agricultural land is assessed by the areas on which farm raw materials purchased are used. These equivalent areas are estimated on the basis of the agricultural yields of the various materials used by the Group. For transformed products, industrial yields are used to assess the quantities of agricultural materials purchased.

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018