PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Movements in the year

Change in gross value

Change in impairment

Foreign currency gains and losses

Other movements 30.06.2018

30.06.2017

€ million

Raw materials

125

16

- - - - -

(5)

0 1 2 0 3 0

136

Work-in-progress Goods in inventory Finished products

4,500

162

(50) (16) (13) (83)

4,614

451 275

30 38

467 300

GROSS VALUE Raw materials

5,351

245

5,517

(10) (13) (13) (10) (46)

- - - - -

1 2 0

0 0 0 1 2

(9)

Work-in-progress Goods in inventory Finished products

(1)

(11) (13) (13) (45)

0 0

(3)

IMPAIRMENT

0 0

(1)

NET INVENTORIES

5,305

245

(82)

3

5,472

On 30 June 2018, ageing inventories intended mainly for use in whisky and cognac production accounted for 79% of work-in-progress. Pernod Ricard is not significantly dependent on its suppliers. Trade receivables and other operating receivables Note 4.5

Trade receivables and other operating receivables are recognised initially at their fair value, which usually corresponds to their nominal value. Impairment losses are recognised where there is a risk of non-recovery.

The following tables break down trade receivables and other operating receivables as of 30 June 2017 and 30 June 2018 by due date:

Not impaired and due on the following dates

Net carrying amount

Not impaired and not due

31 to 90 days

91 to 180 days

181 to 360

< 30 days

days > 360 days

€ million

Net carrying amounts Trade receivables and other operating receivables as of 30/06/2017

1,134

902

132

57

19

9

16

o/w impairment

65

Trade receivables and other operating receivables as of 30/06/2018

1,122

884

137

53

27

5

16

o/w impairment

60

Changes in the impairment of trade receivables and other operating receivables were as follows:

FY18

FY17

€ million

On 1 July

72

65 13 (8) (7) (3) 60

Allowances during the year Reversals during the year Used during the financial year Foreign currency gains and losses

9

(6)

(10)

(1) 65

ON 30 JUNE

On 30 June 2018, there was no reason to question the creditworthiness of non-impaired past due receivables. More specifically, non-impaired receivables with due dates of over 12 months show no additional credit-related risk. There is no significant concentration of risks.

In FY17 and FY18 the Group continued to implement its programmes to sell the receivables of several affiliates. Receivables sold under these programmes totalled €557 million on 30 June 2017 and €610 million on 30 June 2018. As substantially all risks and rewards associated with the receivables were transferred, they were derecognised.

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018