PERNOD-RICARD - URD 2020-21

____ 2. CORPORATE GOVERNANCE COMPENSATION POLICY

2.8.1.3

Compensation policy for the Chairman and CEO (10 th resolution)

These proposed changes take into account: the analysis of market practices of CAC 40 companies and peer panel companies with a view to aligning them with those of the CAC 40; the excellent management of the Group by Mr Alexandre Ricard with, in particular, the strong development of the Group and the Group’s buoyant market capitalisation (this has doubled since FY15 during which Mr Alexandre Ricard was appointed Chairman and CEO); while ensuring stability until the end of the current term of office. Compensation structure The structure of the Executive Director’s compensation consists mainly of: cash compensation comprising a fixed portion and a variable annual portion directly related to his or her individual performance and contribution to the Group’s performance; and capital compensation in the form of an allocation of shares whose vesting is subject to the achievement of performance conditions in line with shareholders’ interests.

Presented below, in accordance with article L. 22-10-8 of the French Commercial Code, is the report of the Board of Directors on the compensation policy for the Chairman and CEO (hereinafter the “Executive Director”), which will be submitted to shareholders for their approval. Accordingly, the Shareholders’ Meeting of 10 November 2021 (in its 10 th resolution appearing in Section 8 “Combined Shareholders’ Meeting” of this universal registration document) will be asked to approve the following elements of the compensation policy of the Executive Director. This report was prepared under the supervision of the Compensation Committee and makes a number of changes to the compensation policy previously approved by 94.23% of the shareholders at the Shareholders’ Meeting of 27 November 2020. The change in the components of compensation proposed below is in the context of the second term of office for the Executive Director. Changes in the compensation policy of Mr Alexandre Ricard had initially been considered at the time of the renewal of his term of office in November 2020; however the Compensation Committee and the Board of Directors had preferred to postpone any changes until this year, given the health context and economic impact of Covid-19.

Components of compensation Fixed compensation

€1,250,000

Variable compensation

Target: 110% – Max: 180% (Quantitative criteria: target 80%/max 150% – Qualitative criteria: target 30%/max 45%)

Long-term profit-sharing plan

Max 150% of fixed annual compensation, subject to performance conditions

Supplementary pension scheme

20% of fixed and variable compensation (10% in performance shares and 10% in cash)

Deferred commitments

Non-compete clause + Imposed departure clause: combined maximum of 24 months' compensation (fixed and variable) Any multi-year variable compensation or exceptional compensation shall be precisely communicated and justified. None currently

Multi-year/exceptional variable compensation

Other

Company car/collective healthcare and welfare schemes

Breakdown of target annual compensation

25% Compensation without performance conditions

The components of the compensation structure are balanced and are allocated as follows: 50/50 between fixed and variable annual compensation, and long-term compensation; 60/40 between cash compensation and share-based compensation; 75/25 between performance-based compensation and non-performance-based compensation.

Share-based compensation 40%

Fixed annual compensation 25% Variable annual compensation 25%

Long-term compensation (LTI + post- employment benefits) 50%

60% Cash compensation

Compensation with performance conditions 75%

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021