PERNOD-RICARD - URD 2020-21

____ 3. SUSTAINABILITY & RESPONSIBILITY THE FOUR PILLARS OF THE GOOD TIMES FROM A GOOD PLACE ROADMAP

Performance culture: profit-sharing and incentive policies Performance is encouraged through favourable profit-sharing and incentive policies. The total gross amount paid under profit-sharing and incentive plans to over 5,078 employees amounted to nearly €34 million. This was matched by contributions (additional sum paid to employees for investments in the Company savings plan) amounting to over €3 million. Moreover, long-term profit-sharing policies (such as allocating performance-based shares) have once again been implemented in FY21 for over 750 employees worldwide. In 2019, the Group launched Accelerate, its very first Employee Share Ownership Plan. This first version of the Plan has been rolled out in 18 countries, covering 75% of Group employees. The initiative proved highly successful, with an overall subscription rate of 41.5%. Such a level is rarely achieved when structured offerings are launched. The subscription rate exceeded 60% in several countries, such as India (76.4%) and Hong Kong (60.4%). In France, the subscription rate was 56.9%. In 2021, the Group is launching the new policy Pay for Performance, to link directly bonuses to the performance and reward the extra performance, allowing differentiation. This will support driving a stronger high-performance culture across the organisation, allowing managers to differentiate the reward and recognition of their teams based on their contribution and performance both on the “what” and the “how”. ACTION PLANS AND NEXT STEPS Welfare protection and health insurance In accordance with the Group’s commitment, all employees are offered a welfare protection plan covering major risks (death and invalidity). Some chose not to be covered or are covered by their spouse’s employer. Social dialogue The Group has a long tradition of social dialogue and promotes freedom of association in all the countries in which it operates. In addition, it firmly believes in the importance of providing a working environment with optimal working conditions:

European Works Council : with over 50% of its staff based in Europe, the Group has mainly focused its efforts on European employee representatives, through the European Works Council. This council brings together one or more representatives from every affiliate within the EU with over 50 people. It had a total of 24 seats for representatives in FY21. The European Works Council meets at least once a year. A Select Committee, elected by their peers, comprising five members from five different countries, meets at least once a year too. The Select Committee may act on its own initiative in response to any social measure that might be taken in Europe involving at least two countries in which Pernod Ricard has local teams. To share information, an Intranet site publishes content each year co-written by delegates and the HR Department. The France Group Committee meets once a year. It brings together employee representatives appointed by the largest trade unions in the French affiliates. At these meetings, the Group’s business activities are reviewed, together with an analysis of employment trends and forecast changes during the year ahead. The Group Committee and the European Works Council are chaired by the Group Chairman & CEO, Alexandre Ricard, and moderated by the HR Department; The Global Deal : Pernod Ricard has officially signed up to the Global Deal, a multi-stakeholder partnership intended to address challenges in the global labour market and enable everyone to benefit from globalisation. It aims to encourage governments, businesses, unions and other organisations to make commitments to enhance social dialogue and promote joint solutions. The deal entails exchanges of ideas, joint projects, lessons learned and policy advice. It will also promote concrete initiatives and voluntary commitments. Pernod Ricard affiliates in partner countries will have access to their own local platforms.

FY21

FY20

Number and %

Employees covered by a welfare protection plan (death and invalidity) with a benefit equivalent to at least one year of the employee’s fixed annual salary (1)

94.2%

93.3%

Employees benefitting from health insurance (1) (2)

97.6%

98.1%

Total gross amount paid under profit-sharing and incentive plans

€42 million

€34 million

Number of agreements signed with social partners

174

167

Number of affiliates that signed at least one company-wide agreement during the year

27

28

Fixed-term and permanent contracts. (1) Health insurance is defined as the regime that is compulsory at local level, whether or not supplemented by a company plan. (2)

Health and safety Pernod Ricard constantly strives to eliminate occupational accidents, hazards, and diseases for all its employees and contractors. Pernod Ricard’s approach to Health & Safety (H&S) is underpinned by the “Créateurs de convivialité” vision. The Group is thus committed to developing a culture where everyone has a role to play and where employees take ownership of safety by sharing responsibility for their safety and that of their co-workers.

Policies

Targets

Progress in FY20

Progress in FY21

2030 S&R Roadmap

By 2025: become “best in class” in the Wines & Spirits industry by the target of zero accidents with lost time (employees and temporary staff) by 2025.

Frequency rate decreased by 35%

Frequency rate decreased by 32%

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021