PERNOD-RICARD - URD 2020-21

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

At 30 June 2020 and 30 June 2021, the main assumptions used for the measurement of pension obligations and other long-term employee benefits were as follows:

30.06.2020

30.06.2021

Medical expenses and other employee benefits

Medical expenses and other employee benefits

Pension commitments

Pension commitments

Actuarial assumptions in respect of commitments

Discount rate

1.65%

2.94%

1.97%

2.46%

Average rate of increase in annuities

3.15% Not applicable

3.33% Not applicable

2.46%

2.62%

2.89%

3.26%

Average salary increase

Expected increase in medical expenses Initial rate

Not applicable

5.72% Not applicable

5.18%

Final rate

Not applicable

4.64% Not applicable

4.00%

30.06.2020

30.06.2021

Medical expenses and other employee benefits

Medical expenses and other employee benefits

Pension commitments

Pension commitments

Actuarial assumptions in respect of the expense for the financial year

Discount rate

2.35%

2.98%

1.65%

2.94%

Average rate of increase in annuities

3.26% Not applicable

3.15% Not applicable

Average salary increase

2.63%

3.05%

2.46%

2.62%

Expected increase in medical expenses Initial rate

Not applicable

6.06% Not applicable

5.72%

Final rate

Not applicable

4.69% Not applicable

4.64%

Other non-Eurozone countries

Actuarial assumptions at 30.06.2021 (pension and other commitments) By region

United Kingdom

United States

Eurozone countries

Canada

Discount rate

1.90%

2.56%

3.13%

0.99%

3.70%

Not applicable

Not applicable

Average rate of increase in annuities

3.48%

1.67%

1.83%

Average salary increase

2.50%

2.98%

3.00%

2.66%

5.84%

Expected increase in medical expenses Initial rate

5.50%

5.75%

4.61%

3.50% Not applicable

Final rate

5.50%

4.00%

3.56%

3.50% Not applicable

The obligation period-related discount rates used within the Eurozone are as follows:

Discount rates are determined by reference to the yield at the balance sheet date on premium category corporate Bonds (if available), or on government Bonds, with maturities similar to the estimated duration of the benefit obligations. The expected rate of return on assets corresponds to the discount rate, in accordance with IAS 19.

short-term rate (3-5 years): 0.00% to 0.25%; medium-term rate (5-10 years): 0.25% to 0.75%; long-term rate (more than 10 years): 0.75% to 1.20%.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021