PERNOD-RICARD - URD 2020-21

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

The sensitivity of the debt to changes in the discount rate is shown in the table below:

Medical expenses and other employee benefits

Pension commitments

Total

€ million

Commitments at 30.06.2021

5,318

140

5,458

Commitments at 30.06.2021 with a 0.5% decrease in the discount rate

5,772

151

5,923

Commitments at 30.06.2021 with a 0.5% increase in the discount rate

4,916

131

5,047

The impact of a change in the rate of increase in medical expenses would be as follows:

With current rate

Post-employment medical benefits € million

With current rate

1% increase

1% decrease

On the present value of the benefit obligations at 30.06.2021

112

10

(8)

Expense for FY21

5

0

(0)

The experience gains or losses on the benefit obligations and plan assets are set out below:

30.06.2021

Medical expenses and other employee benefits

Pension commitments

€ million

Amounts of experience losses or (gains) on benefit obligations

(21)

(4)

Percentage compared with amounts of benefit obligations

-0.4%

-3.2%

Amounts of financial assumption losses or (gains) on benefit obligations

(187)

9

Percentage compared with amounts of benefit obligations

-3.5%

6.3%

Amounts of demographic assumption losses or (gains) on benefit obligations

(44)

1

Percentage compared with amounts of benefit obligations

-0.8%

0.5%

Amounts of experience losses or (gains) on plan assets

101

-

Percentage compared with amounts of plan assets

1.9%

0.0%

Amounts of experience losses or (gains) on the limitation on assets

24

-

Percentage compared with amounts of plan assets

0.5%

0.0%

Average duration

16.40

14.13

Financial liabilities Note 4.8

IFRS 9 (Financial Instruments) replaced IAS 39 as of 1 July 2018. IAS 32 has been applied since 1 July 2004. IFRS 7 has been applied since 1 July 2007. The amendment approved by the European Union on 22 November 2011 has been applied from 1 July 2011. Borrowings and other financial liabilities are recognised, on the basis of their effective interest rates, in accordance with the amortised cost method. The effective interest rate includes all costs, commissions and fees payable under the contract between the parties. Under this method, costs that are directly attributable to the acquisition or issue of the financial liability are recognised in profit and loss on the basis of the effective interest rate.

In accordance with IAS 7 (Statement of cash flows), cash and cash equivalents presented in assets and liabilities in the balance sheet and shown in the consolidated cash flow statements include items that are immediately available as cash or are readily convertible into a known amount of cash and which are subject to an insignificant risk of change in their value. Cash is composed of cash at bank and on hand, short-term deposits with an initial maturity of less than three months and money market mutual funds that are subject to an insignificant risk of change in their value. Cash equivalents are short-term investments with a maturity of less than three months. Bank overdrafts, which are considered to be equivalent to financing, are excluded from cash and cash equivalents.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021