PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Asia/Rest of the World

At 30.06.2018 € million

America

Europe

Total

Income statement items Segment net sales o/w intersegment sales

3,730 1,183 2,546 1,690 1,157

5,427 1,779 3,648 2,164 1,502

4,325 1,533 2,792 1,749 1,224

13,482

4,496 8,987 5,604 3,884 2,358

Net sales

Gross margin after logistics expenses

Contribution after advertising and promotion expenses

Profit from recurring operations

736

996

626

Other information Current investments

59 29

48 47

283 206

390 282

Depreciation, amortisation and impairment

Breakdown of sales

Net sales on 30.06.2018

Net sales on 30.06.2017

Change € million

Change (%)

€ million

Strategic International Brands

5,555 1,717

5,623 1,717

68

1% 0%

Strategic Local Brands

0

Strategic Wines Other products

496

480

-16 -75 -23

-3% -6%

1,241 9,010

1,166 8,987

TOTAL

0%

Notes to the income statement Note 3 Other operating income and expenses Note 3.1

Other operating income and expenses include impairment of property, plant and equipment and intangible assets, costs relating to restructuring and integration, capital gains or losses on disposals, as well as other non-recurring operating income and expenses. These other operating income and expenses are excluded from the profit from recurring operations given their unusual, abnormal and infrequent nature, which would distort the reading of the Group’s performance.

Other operating income and expenses are broken down as follows:

30.06.2018

30.06.2017

€ million

Impairment of property, plant and equipment and intangible assets

(74) (13) (57) (34)

(73)

Gains or losses on asset disposals and acquisition costs Net restructuring and reorganisation expenses

29

(38)

Disputes and risks

(1) 22

Other non-current operating income and expenses OTHER OPERATING INCOME AND EXPENSES

15

(163)

(62)

On 30 June 2018, other operating income and expenses included: impairment of property, plant and equipment and intangible assets, ● resulting primarily from brand impairment tests for €73 million, of which €30 million on the Wyborowa brand and €30 million on the Brancott Estate brand; capital gains or losses on disposals, related in particular to the ● disposals of the distillery and brand Glenallachie and the Spanish wines Siglo, Aura and Navarra;

restructuring costs linked to various reorganisation projects; ● expenses related to disputes and risks, including tax risks, that are ● non-current in nature; other non-current operating income and expenses. ●

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