PERNOD-RICARD - URD 2020-21

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

Trade receivables and other operating receivables Note 4.5

Trade receivables and other current receivables are recognised initially at their fair value, which usually corresponds to their nominal value. Provisions for impairment are recognised in line with the losses expected over the life of the receivable.

The following tables break down trade receivables and other operating receivables as of 30 June 2020 and 30 June 2021 by due date:

Due in accordance with the following terms

Net carrying amount

31 to 90 days

91 to 180 days

181 to 360 days > 360 days

Not due

< 30 days

€ million

Net carrying amounts Trade receivables and other operating receivables as of 30.06.2020

906

675

62

79

52

24

14

O/w impairment

(91)

(15)

0

(3)

(8)

(11)

(55)

Trade receivables and other operating receivables as of 30.06.2021

1,126

958

109

31

10

4

14

O/w impairment

(104)

(16)

(1)

(2)

(3)

(7)

(74)

Changes in the impairment of trade receivables and other operating receivables were as follows:

FY20

FY21

€ million

At 1 July

67

91

Allowances during the year

37

26

Reversals during the year

(3)

(5)

Used during the year

(4)

(7)

Foreign currency gains and losses

(5)

(1)

At 30 June

91

104

At 30 June 2021, there was no reason to question the creditworthiness of non-impaired past due receivables. More specifically, non-impaired receivables with due dates of over 12 months show no additional credit-related risk. There is no significant concentration of risks. The change in impairment of trade and other operating receivables during FY20 and FY21 is notably linked to a reassessment of the recoverability of receivables in the context of the Covid-19 pandemic.

In FY20 and FY21, the Group continued to implement its programmes to sell the receivables of several affiliates. Receivables sold under these programmes totalled €513 million at 30 June 2020 and €592 million at 30 June 2021. As substantially all risks and rewards associated with the receivables were transferred, they were derecognised.

Derecognised assets where there is continuing involvement

Fair value of continuing involvement

Maximum Exposure

Carrying amount of continuing involvement

€ million

Financial liabilities at fair values

Amortised costs

Held to maturity

Available for sale

Continuing involvement

Guarantee deposit – factoring and securitisation

8

-

8

-

8

8

209

PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021