PERNOD-RICARD_REGISTRATION_DOCUMENT_2017-2018

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SUSTAINABILITY & RESPONSIBILITY (S&R) EMPOWER OUR EMPLOYEES

Labour relations 3.2.4 Social dialogue 3.2.4.1

The France Group Committee meets once a year. This Committee brings together employee representatives appointed by the largest trade union organisations in the French affiliates. Meetings of the France Group Committee review the Group’s business activity, as well as examining employment and its forecast change over the forthcoming year. The Group Committee and the European Committee are chaired by the Group’s Chairman & CEO, Alexandre Ricard, and moderated by the Human Resources Department. Company agreements 3.2.4.2 Each year, the affiliates sign roughly one hundred agreements with the various social partners throughout the world; in this way, the Group encourages the enhancement of social dialogue. The number of agreements signed depends on local legislation changes — this year, there have been 115. A total of 29 Group affiliates signed at least one company agreement during the year. Various agreements were signed in relation to compensation and profit-sharing in FY18, including 40 agreements in France, Italy, Sweden, Mexico, Brazil, Argentina, Uruguay, Ireland, Canada, Cuba, Korea and Vietnam. In addition, 26 agreements were signed on collective welfare schemes (in France, the Netherlands, Italy, Finland, Brazil, Uruguay, Canada, Korea and Vietnam) and on occupational health and safety (in France, Austria, Brazil, Uruguay, Canada and Cuba). In France, 42 company agreements were signed by Group affiliates in FY18. The agreements covered issues such as profit-sharing, compensation, occupational health and safety, collective benefit schemes, equal opportunities, and disability. In total, trade unions are present in 29% of the Group’s entities. There are also non-unionised employee representation groups in the majority of Group affiliates. 57 affiliates also indicated that regular meetings had been arranged during the year for all employees and Management to address various business-related or organisational matters.

The Group has a long tradition of social dialogue and promotes freedom of association in all the countries where it is present. In addition, it firmly believes in the importance of providing a working environment which optimises working conditions. Pernod Ricard’s Group report has a section on social dialogue. With more than 50% of its staff based in Europe, the Group has mainly focused its actions on the European employee representatives, through the European Works Council. This council gathers one or more representatives of every affiliate within the European Union with more than 50 people, and totals 24 representatives in FY18. The European Works Council meets for three days each year, including one day dedicated to specific training offered to all representatives. In an effort to share information, a mini-site has been developed with content co-written by delegates and the HR Department. Each year it summarises the content of the Annual Meeting and publishes specific information. This communication tool is available on the Intranet for all of the Group’s European employees. The renewal of the European Works Council in November 2014 allowed for the re-election of a select committee that meets at least once a year and comprises five members from five different countries, elected by their peers. The select committee may act on its own initiative to respond to any social measure that might be taken in Europe involving at least two European countries in which Pernod Ricard has local teams. At the Meeting held in November 2017, delegates prepared for the review of the European Works Council’s operating agreement ahead of the re-election of representatives in November 2018. They were assisted in this by experts from the European Federation of Food, Agriculture and Tourism Trade Unions (EFFAT). The delegates were also presented with examples of good practices to ensure a better work/life balance (Smart Ways of Working), where they were able to share their local experiences, in addition to the results of the “iSay” engagement survey that was distributed to all Group employees in June 2017.

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PERNOD RICARD REGISTRATION DOCUMENT 2017/2018