PERNOD-RICARD - URD 2020-21

____ 2. CORPORATE GOVERNANCE COMPENSATION POLICY

PERFORMANCE CRITERIA The criteria are reviewed regularly to ensure they are in line with the Company long-term strategy and may be modified on an occasional basis. For FY22, the Board of Directors, on the recommendation of the Compensation Committee, proposes that the following criteria be reapplied:

Achievement of budgeted profit from recurring operations , restated for exchange rate and scope effects. This criterion, intended to provide an incentive to exceed the target for profit from recurring operations, is one of the key elements of the Group’s decentralised structure. This concept of commitment to the budgeted profit from recurring operations helps to bring together all of the structures, which are rewarded according to the extent to which they meet their own targets for profit from recurring operations. This criterion rewards the management performance of the Executive Director. Achievement of budgeted Group net profit from recurring operations , restated for exchange rate and scope effects. This criterion takes into account all of the Group’s financial data that fall under the Executive Director's responsibility for the financial year and thus makes it possible for his compensation to be aligned as closely as possible with that of the shareholders. Achievement of budgeted recurring free cash flow , restated for exchange rate and scope effects. This criterion measures the Group’s financial performance and value creation. Rate of cash conversion for profit from recurring operations , restated for exchange rate and scope effects. The inclusion of this criterion in the calculation of the variable portion of the Executive Director’s compensation is in line with the Group’s strategy in that it rewards good cash management, regardless of the level of achievement of profit from recurring operations. The individual performance of the Executive Director is assessed annually by the Board of Directors on the recommendation of the Compensation Committee. The qualitative criteria assessed are reviewed annually, based on the Group’s strategic priorities, knowing that the Board of Directors will strive to always include a CSR criterion. For confidentiality reasons regarding the Group’s strategy, details of qualitative objectives may only be made public after the event and after assessment by the Compensation Committee and the Board of Directors.

Target 20% Maximum 37.5%

Quantitative criteria: target 80% maximum 150%

Target 20% Maximum 37.5%

Target 20% Maximum 37.5%

Target 20% Maximum 37.5%

Qualitative criteria: target 30% maximum 45%

Target 30% Maximum 45%

TOTAL TARGET 110% MAXIMUM 180%

TARGET 110% MAXIMUM 180%

In any event, variable compensation (quantitative and qualitative criteria) may not exceed 180% of the fixed annual compensation.

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PERNOD RICARD UNIVERSAL REGISTRATION DOCUMENT 2020-2021