PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

5

CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Interest rate, foreign exchange and commodity derivatives Note 4.10 Pursuant to the amended version of IAS 39 (Financial instruments: recognition and measurement), all derivative instruments must be recognised in the balance sheet at fair value, determined on the basis of valuation models recognised on the market or of external listings issued by financial institutions.

“effective” portion of the hedge is recognised in shareholders’ equity. It is recognised in profit and loss when the hedged item is itself recognised in profit and loss. The change in value of the ineffective component of the derivative is however recognised directly in profit and loss. If the derivative is designated as a hedge of a net foreign currency investment, the change in value of the effective portion of the hedge is recognised in shareholders’ equity and the change in value of the “ineffective” portion is recognised in

Where the derivative has been designated as a fair value hedge, changes in the value of the derivative and of the hedged item are recognised in profit and loss for the same period. If the derivative has been designated as a cash flow hedge, the change in value of the

profit and loss.

Notional amount of contracts

Fair value

> 1 year and < 5

Liabilities and shareholders’ equity

Description of the financial instrument

Type of hedge on 30.06.2017 € million

< 1 year

years > 5 years

Total

Assets

Fair value hedge

22 22

7 7

Interest rate risk hedges

Swaps

307

351

701

1,358

Interest rate and currency risk hedges

Cross currency swaps

- -

- - - - - -

- - - - - -

- -

-

- - - - - -

Net investment hedge Currency risk hedges

2 2

NDF & FX options

79

79

Interest rate and currency risk hedges

Cross currency swaps

- - -

- - -

- - -

Net asset hedging

Interest rate and currency risk hedges DERIVATIVE INSTRUMENTS INCLUDED IN NET DEBT

Cross currency swaps

24

7

Cash flow hedge

2

18 15

Interest rate risk hedges

Swaps

-

351

-

351

-

Hedging of currency risk on intragroup financing and operational hedging

Currency swaps

178

-

- - -

178

1 1

2 0

Commodity risk hedges Non-hedge accounting

Forwards

20

3

23

-

-

-

24

33

Hedging of currency risk on intragroup financing and operational hedging

Currency swaps and forwards

1,345

-

- -

1,345 1,052

14

13 20 57 42 15

Interest rate risk hedges

Swaps

-

1,052

9

TOTAL DERIVATIVE INSTRUMENTS

50 26 24

TOTAL NON-CURRENT

TOTAL CURRENT

187

PERNOD RICARD REGISTRATION DOCUMENT 2017/2018