PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

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PERNOD RICARD SA FINANCIAL STATEMENTS NOTES TO THE PERNOD RICARD SA FINANCIAL STATEMENTS

NOTES TO THE PERNOD RICARD SA FINANCIAL 6.5 STATEMENTS

Contents

Note 1

Accounting policies

212

Bank debt Note 13

219

Note 2

Intangible assets and property, plant and

Breakdown of corporate income tax Note 14

219

equipment

214

Increases and decreases in future tax Note 15 liabilities

Note 3

Financial assets

214

220

Note 4

Maturity of receivables and payables

215

Compensation Note 16

220

Note 5

Marketable securities

215

Operating income Note 17

220

Note 6

Prepaid expenses and deferred charges

216

Financial income and expenses Note 18

220

Note 7

Composition of share capital

216

Exceptional items Note 19

221

Note 8

Shareholders’ equity

216

Off-balance sheet commitments Note 20

221

Note 9

Provisions

216

Average headcount at 30 June 2018 Note 21

222

Deferred income and adjustment accounts Note 10

218

Affiliates and associates at 30 June 2018 Note 22

223

Accrued income and expenses Note 11

218

Tax credit Note 23

224

Bonds Note 12

219

Pernod Ricard SA is a French public limited company (société anonyme) , subject to all laws governing commercial companies in France, and particularly to the provisions of the French Commercial Code. The Company is headquartered at 12, place des États-Unis, 75016 Paris and is listed on Euronext. The balance sheet total for the financial year which ended 30 June 2018 was €15,897 million. The income statement for the year recorded a profit of €566 million. The financial year covered the 12-month period from 1 July 2017 to 30 June 2018.

Accounting policies Note 1 The annual financial statements for the financial year were prepared in accordance with the provisions of ANC regulation 2016-07 of 4 November 2016 and ANC regulation 2015-05 of 2 July 2015 relating to the new French general accounting standards. General accounting principles were applied, in accordance with the prudence principle, using certain assumptions whose objective is to provide a true and fair view of the Company. These principles are: going concern; ● consistency of accounting policies from one financial year to the next; ● accruals basis of accounting; ● relative importance; ● no compensation; ● good information; ● and in accordance with the general rules of drawing up and ● presenting the annual financial statements.

Balance sheet assets and liabilities are measured, depending on the specific items, at their historical cost, contribution cost or market value. Intangible assets 1. The brands acquired from the merger of Pernod and Ricard in 1975 and from subsequent mergers are the Company’s main intangible assets. Intangible assets are valued at acquisition cost and, amortisation is calculated on a straight-line basis over the estimated three-year useful life of the assets (previously one year).

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018