PERNOD-RICARD - URD 2020-21

____ 4. RISK MANAGEMENT RISK FACTORS

Risk factors 4.2 In 2021, the Group updated its risk mapping, a risk management oversight tool involving all Pernod Ricard functions and affiliates. This identification of the Group’s risks, in which Management took an active part, highlighted the Group’s resilience in the face of the Covid-19 pandemic, and contributed to the redefinition of the main risk profiles and their management. Compared to the previous mapping, the main changes that have taken place reflect the impacts of the sanitary crisis (for example regarding the health and safety of people or supply disruptions) as well as changes in the risk assessment (for example due to rapid changes in consumer behaviour). Some risks have seen their impact diminish, taking into account the fact that they are mainly the consequences of the materialisation of other risks in

this matrix (such as major litigation or harmful media coverage). Lastly, a new risk has been highlighted at the end of the financial year, relating to the growing importance of CSR issues and the Group’s desire to make an active contribution in this area. This mapping is reproduced below to provide a visual representation of the issues, without replacing the explanatory text that follows. The different risks are classified according to their potential impact and likelihood of occurrence. This risk mapping reflects Pernod Ricard’s exposure and takes into account the control measures in place to limit the probability and impact. This mapping will be reviewed annually to take into account major changes in the risk environment facing the Group Pernod Ricard.

Loss of major site/ Strategic inventory Toxic contamination

HIGH IMPACTS OF RISKS

Cyberattack

Geopolitical & macroeconomic instability Anti-alcohol environment and regulations Regulatory risks Pressure on prices & margins Climate change & environmental damage

S&R challenges

Supply chain disruptions Product quality issues Health & safety

Fast changing consumer behaviors Financial Risks (FX, interest rates, credit) Talent management Negative media coverage

Pensions

Major litigation Fraud

Counterfeiting/IP Rights

LIKELYHOOD OF OCCURENCE

HIGH

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021