PERNOD-RICARD - URD 2020-21

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

Defined benefit plans in the Group relate mainly to affiliates in the United Kingdom, in North America and in the rest of Europe. Defined benefit plans are subject to an annual actuarial valuation on the basis of assumptions depending on the country. Under these pension and other benefit plan agreements, employees receive at the date of retirement either a capital lump sum payment or an annuity. These amounts depend on the number of years of employment, final salary and the position held by the employee. At 30 June 2021, fully or partly funded benefit obligations totalled €5,202 million, equivalent to 95% of the total benefit obligations.

Certain affiliates, mainly those located in North America, also provide their employees with post-employment medical cover. These benefit obligations are unfunded. They are measured using the same assumptions as those used for the pension obligations in the countries in question. Several affiliates, mainly in Europe, also provide their employees with other long-term benefits. Benefit obligations of this type are mainly in respect of long-service awards and jubilee awards.

The table below presents a reconciliation of the provision between 30 June 2020 and 30 June 2021:

30.06.2020

30.06.2021

Medical expenses and other employee benefits

Medical expenses and other employee benefits

Pension commitments

Pension commitments

Total

Total

€ million

Net liability/(asset) at beginning of period

(671)

147

(524)

196

145

341

Net expense/(income) for the period

26

5

30

54

4

58

Actuarial (gains)/losses (1)

916

3

919

(126)

0 (126)

Employer contributions

(53)

-

(53)

(47)

-

(47)

Benefits paid directly by the employer

(10)

(10)

(19)

(8)

(8)

(16)

Changes in scope of consolidation

2

0

2

0

(0)

(0)

Foreign currency gains and losses

(14)

(1)

(15)

(17)

(1)

(18)

Net liability/(asset) at end of period

196

145

341

52

140

192

Amount recognised in assets (2)

(265)

-

(265)

(285)

-

(285)

AMOUNT RECOGNISED IN LIABILITIES (PROVISION AT END OF PERIOD) Recognised in “Other comprehensive income”. (1) See Note 4.3 – Financial assets. (2)

460

145

605

337

140

477

Actuarial gains and losses correspond mainly to the update of actuarial assumptions and values of plan assets. The net financial impact recognised in income statement in respect of pensions and other long-term employee benefits is broken down as follows:

30.06.2020

30.06.2021

Medical expenses and other employee benefits

Medical expenses and other employee benefits

Pension commitments

Expense for the year € million

Pension commitments

Total

Total

Service cost

42

3

46

42

4

46

Interest on provision o/w interest on the commitment o/w interest on the assets o/w interest on the limitation of the assets

(17) 118 (136) 0

4 4

(13) 122 (136) -

3 90 (87) 0

4 4

7 93 (87) 0

- -

- -

Fees/levies/premiums

11

-

11

8

-

8

Impact of plan amendments/Reduction of future rights

(11)

(5)

(16)

(0)

(7)

(8)

Impact of liquidation of benefits

-

-

-

0

-

0

Actuarial (gains)/losses

-

3

3

-

5

5

Effect of asset ceiling (including the impact of IFRIC 14)

-

-

-

-

-

-

NET EXPENSE/(INCOME) RECOGNISED IN PROFIT AND LOSS

26

5

30

54

4

58

212

PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021