PERNOD-RICARD - URD 2020-21

____ 6. CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Earnings per share Note 3.4

Basic and diluted earnings per share are calculated on the basis of the weighted average number of outstanding shares, less the weighted average number of dilutive instruments. The calculation of diluted earnings per share takes into account the potential impact of the exercise of all dilutive instruments (such as stock options, convertible Bonds, etc.) on the theoretical number of shares. When funds are obtained at the date of exercise of the dilutive instruments, the “treasury stock” method is used to determine the theoretical number of shares to be taken into account. When funds are obtained at the issue date of the dilutive instruments, net profit is adjusted for the finance cost, net of tax, relating to these instruments.

30.06.2021

Numerator (€ million)

30.06.2020

Group net profit

329

1,305

Denominator (in number of shares) Average number of outstanding shares

262,858,086

260,796,076

Dilutive effect of bonus share allocations

1,063,687

624,364

Dilutive effect of stock options and subscription options

115,058

93,465

Average number of outstanding shares - diluted

264,036,831

261,513,904

Earnings per share (€) Earnings per share – basic

1.25

5.00

Earnings per share – diluted

1.24

4.99

Expenses by type Note 3.5

Operating profit notably includes depreciation, amortisation and impairment expenses as well as personnel expenses as follows:

30.06.2020

30.06.2021

€ million

Depreciation, amortisation and impairment expense on property, plant and equipment and intangible assets*

(1,314)

(441)

Salaries and payroll costs

(1,317)

(1,216)

Pensions, medical expenses and other similar benefits under defined-benefit plans

(46)

(46)

Expense related to share-based payments

(22)

(28)

TOTAL PERSONNEL EXPENSES

(1,385)

(1,290)

Including impairment of intangible assets of €999 million at 30.06.2020. *

Operating profit also includes €4.3 million in lease expenses relating to short-term leases, €1.7 million in expenses relating to leases of low-value assets and €2.1 million in expenses relating to variable rents.

201

PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021