PERNOD-RICARD - URD 2021-22 EN

3. Sustainability & Responsibility The four pillars of the Good Times from a Good Place roadmap

FY22

FY21

Number and %

Total departure rate* (1)

14.6% 1,106 6.4%

14.3% 1,657 9.4%

Number of resignations*

Voluntary departure rate* (2)

Absenteeism rate**

4.1%

4.1%

The rate of total departure is calculated by dividing the number of departures by the average workforce with permanent contracts. (1) The rate of voluntary departure is calculated by dividing the number of resignations by the average workforce with permanent contracts. (2) Permanent contracts. * Fixed-term and permanent contracts. **

In 2021, the Group launched Pay for Performance directly linking reward and recognition to performance. This will help build a high-performance culture across the organisation, allowing managers to differentiate the reward and recognition received by their teams based on their contribution and performance both on the "What" and the "How".

Welfare, social protection and labour relations Objectives & Policies Compensation policy Except for Group Senior Management, whose compensation is overseen by HQ, the compensation policy reflects the decentralised business model. Each affiliate manages its policy locally while upholding a set of common rules. These include developing a performance culture and offering compensation that is competitive locally, leveraging external benchmarking and compensation data. This also involves setting up straightforward, meaningful and motivating compensation packages. Total payroll is discussed in Note 3.5 "Expenses by type" in Section 6 “Consolidated financial statements” . This year, payroll accounted for 12.8% of net sales. Signing of labour agreements The affiliates sign roughly 170 agreements annually with a range of social partners worldwide. This encourages improved social dialogue. The number of agreements signed reflects changes in local legislation. The agreements signed by affiliates during the past year mainly covered: compensation and profit-sharing; Group welfare schemes; remote working; and occupational health and safety. Performance culture: employee profit-sharing policies Performance is encouraged through favourable profit-sharing and incentive policies. A gross amount of €42 million was paid under such plans to over 5,335 employees, to which contributions (1) of over €7 million were added. Moreover, long-term profit-sharing policies (such as allocating performance-based shares or restricted shares for example) were once again implemented in FY21 for over 750 employees worldwide. In 2019, the Group launched its first ever Employee Share Ownership Plan called “Accelerate”. The second such Plan was rolled out in 2022 in 24 markets (including seven new markets), covering around 80% of Group employees. The initiative once again proved highly successful, with an overall sign-up rate of 45.7% ( versus 41.5% for the first plan). The sign-up rate was over 60% in several markets including India (76.7%), Hong Kong (66.1%) and Taiwan (60.4%). In France, the sign-up rate was 64.9% ( versus 56.9% in 2019).

Action plans and next steps Welfare protection and health insurance

In line with the Group’s commitment, all employees are offered a welfare protection plan covering major risks (death and invalidity). Some choose not to be covered or are covered by their spouse’s employer. Social dialogue The Group has a long tradition of social dialogue and promotes freedom of association in every country in which it operates. In addition, it firmly believes in the importance of providing a working environment with optimal working conditions: EU Works Council : with over 50% of its staff based in the EU, the Group has mainly focused its efforts on EU employee representatives, through the EU Works Council. This council brings together one or more representatives from every affiliate within the EU with over 50 people. It had a total of 24 representatives in FY22. The EU Works Council meets at least once a year. A Select Committee, elected by their peers, of five members from five different countries, meets at least once a year. The Select Committee may act on its own initiative in response to any social measure that might be taken within the EU involving at least two countries in which Pernod Ricard has local teams. To share information, an intranet publishes content annually co-written by delegates and the HR Department. The France Group Committee meets once a year. It brings together employee representatives appointed by the largest trade unions in the French affiliates. The purpose of this meeting is to review the Group’s business activities, together with an analysis of employment trends and forecast changes for the year ahead. The Group Committee and the EU Works Council are chaired by the Group Chairman & CEO, Alexandre Ricard, and moderated by the HR Department.

Additional sum paid to employees for investments in the Company savings plan. (1)

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Pernod Ricard Universal Registration Document 2021-2022

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