PERNOD-RICARD - URD 2020-21

____ 7. PERNOD RICARD SA FINANCIAL STATEMENTS ANALYSIS OF PERNOD RICARD SA RESULTS AND BALANCE SHEET

7.4

Analysis of Pernod Ricard SA results and balance sheet

7.4.1

Relations between the Parent

Analysis of the FY21 balance sheet Assets

Company and its affiliates The main role of Pernod Ricard SA, the Group’s Parent Company, is to carry out general interest and coordination activities in strategy, financial control of affiliates, external growth, marketing, development, research, Human Resources and communication. Pernod Ricard SA’s financial relations with its affiliates mainly involve the billing of royalties for the operation of brands owned by Pernod Ricard SA, various billings and the receipt of dividends.

Total net fixed assets stood at €13,147 million at 30 June 2021 compared with €13,716 million for the previous year, i.e. a decrease of €(569) million. The main changes observed are as follows: an increase of €11 million in property, plant and equipment and intangible assets; a decrease of €580 million in financial assets (see Note 3 - Financial assets ). Current assets amounted to €1,592 million, i.e. a decrease of €(1,349) million compared with 30 June 2020. Prepaid expenses and deferred charges, amounting to €207 million, consist of the items Unrealised foreign exchange losses and Bond redemption premiums. Liabilities Shareholders’ equity amounted to €5,905 million at 30 June 2021, compared with €6,505 million at 30 June 2020. The main movements for the period were: profit for the financial year of €657 million; the payment of the balance of the dividend for FY20 of €386 million; the payment of an interim dividend of €1.33 per share in respect of FY21, amounting to €347 million. This interim dividend was paid on 9 July 2021. The amount of provisions for risks and charges was €415 million, down €(22) million. During the period, borrowings fell by €(2,120) million. This was mainly due to: bond redemption for an amount of $2,201 million (equivalent to €1,966 million); the change in accrued interest for €38 million; the impact of foreign exchange on debts in dollars of €115 million. Operating payables and deferred income amounted to €1,296 million, an increase of €794 million, mainly due to: an increase in accounts payable of €53 million and tax and social security liabilities of €27 million; the change in miscellaneous debts, including €667 million on the intra-group current account and €39 million on the dividends payable account. The deferred income and adjustment account of €124 million at 30 June 2021 comprised the €(344) million decrease in the value of unrealised foreign exchange gains compared with 30 June 2020.

7.4.2

Income statement and balance

sheet as at 30 June 2021 Analysis of FY21 income statement

Operating income represented an amount of €319 million at 30 June 2021, an increase of €79 million compared to 30 June 2020, which is mainly due to an increase of €83 million in net sales (see Note 17 - Operating income ). The amount of operating expenses as at 30 June 2021 was €(406) million compared with €(300) million in the previous year, i.e. an increase in expenses of €106 million. The operating result was a loss of €(88) million in the year ended 30 June 2021, a decrease of €(28) million compared with the year ended 30 June 2020. Financial income amounted to €726 million at 30 June 2021 compared to €1,140 million at 30 June 2021, a decrease of €(414) million (see Note 18 - Financial (income)/expenses ). Exceptional items at 30 June 2021 represent an expense of €(111) million. The Covid-19 health crisis has not had a material impact on earnings for Pernod Ricard SA. Lastly, income tax comprised tax income of €131 million related to the effects of the tax consolidation in FY21. As a result, net profit for FY21 was €657 million.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021