PERNOD-RICARD - URD 2020-21

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

Financial assets Note 4.3

Financial assets consist mainly of Group interests in non-consolidated companies, loans, sureties and deposits, guarantee deposits required by the tax regulations of certain countries and plan assets for pension obligations (not entering into the scope of IFRS 9). Equity instruments Investments in non-consolidated entities are recorded in the Balance sheet at fair value. Fair value results and the disposal gain or loss are recorded, in accordance with the management intention, either (i) in the income statement under the heading “Financial income/Financial expenses – other non-recurring financial items” or (ii) in consolidated shareholders’ equity under the heading “Other comprehensive income” and are not recycled through profit or loss.

Fair value is determined on the basis of the financial criteria most appropriate to the specific situation of each company. The fair value of financial assets listed on a financial market is their stock market value. The valuation criteria generally used for other non-consolidated investments are share of equity and future profitability. Loans, guarantees and deposits Loans, guarantees and deposits are valued at amortised cost.

30.06.2020

30.06.2021

Current

Non-current

Current

Non-current

€ million

Net financial assets Equity instruments

-

93

-

286

Other financial assets

-

273

-

294

Net loans and receivables Loans, receivables and deposits*

-

156

-

106

Total net non-current financial assets

-

522

-

685

Derivative instruments

12

54

8

65

FINANCIAL ASSETS

12

576

8

750

Following the application of IFRS 16 from 1 July 2019, the category “Loans, receivables and deposits” includes receivables relating to subleases for €15 million * at 30 June 2021 (€14 million at 30 June 2020).

The table below shows the movements of financial assets, excluding derivative instruments:

Movements in the year

Foreign currency gains and losses

Other movements 30.06.2020

30.06.2019 Acquisitions Allowances

Disposals

€ million

Other financial assets

1,097

2

-

(6)

13

(832)

273

202

19

-

(2)

0

(119)

101

Equity instruments

Investment-related receivables

191

31

-

(9)

(9)

16

219

GROSS VALUE

1,489

52

-

(17)

4

(935)

593

Provisions for other financial assets

0

-

0

-

0

0

0

Impairment losses recognised on available-for-sale financial assets

-

-

-

-

-

-

-

Provisions on equity instruments

(7)

-

-

-

0

-

(7)

Impairment losses recognised on investment-related receivables

(62)

-

-

-

(1)

0

(63)

PROVISIONS

(70)

-

0

-

(1)

0

(71)

NON-CURRENT FINANCIAL ASSETS, NET

1,419

52

0

(17)

3

(935)

522

206

PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021