PERNOD-RICARD - URD 2021-22 EN

Annual consolidated financial statements Notes to the consolidated financial statements

Defined benefit plans in the Group relate mainly to affiliates in the United Kingdom, in North America and in the rest of Europe. Defined benefit plans are subject to an annual actuarial valuation on the basis of assumptions depending on the country. Under these pension and other benefit plan agreements, employees receive at the date of retirement either a capital lump sum payment or an annuity. These amounts depend on the number of years of employment, final salary and the position held by the employee. At 30 June 2022, fully or partly funded benefit obligations totalled €4,022 million, equivalent to 94% of the total benefit obligations.

Certain affiliates, mainly those located in North America, also provide their employees with post-employment medical cover. These benefit obligations are unfunded. They are measured using the same assumptions as those used for the pension obligations in the countries in question. Several affiliates, mainly in Europe, also provide their employees with other long-term benefits. Benefit obligations of this type are mainly in respect of long-service awards and jubilee awards.

The table below presents a reconciliation of the provision between 30 June 2021 and 30 June 2022:

30.06.2022

30.06.2021

Medical expenses and other employee benefits

Medical expenses and other employee benefits

Pension commitments

Pension commitments

Total

Total

€ million

Net liability/(asset) at beginning of period Impacts of IFRIC IAS 19 interpretation Net expense/(income) for the period

196

145

341

52

140

192

(11)

-

(11)

54

4

58

48

6

55

Actuarial (gains)/losses (1)

(126)

0

(126)

(47)

(16)

(63)

Employer contributions and benefits paid directly by the employer

(47)

-

(47) (16)

(48)

-

(48)

Benefits paid directly by the employer Changes in scope of consolidation Foreign currency gains and losses Net liability/(asset) at end of period

(8)

(8) (0)

(9)

(7)

(16)

0

(0)

0

-

0

(17)

(1)

(18) 192

3

10

13

52

140

(13)

134

121

Amount recognised in assets

(285)

-

(285)

(239)

-

(239)

6.

Amount recognised in liabilities

337

140

477

227

134

361

Recognised in “Other comprehensive income”. (1)

Actuarial gains and losses correspond mainly to the update of actuarial assumptions and values of plan assets.

The net financial impact recognised in income statement in respect of pensions and other long-term employee benefits is broken down as follows:

30.06.2022

30.06.2021

Medical expenses and other employee benefits

Medical expenses and other employee benefits

Pension commitments

Pension commitments

Expense for the financial year € million

Total

Total

Service cost

42

4 4 4

46

41 (1)

4 3 3

45

Interest on provision

3

7

2

o/w interest on the commitment

90

93

104

107

o/w interest on the assets

(87)

- - -

(87)

(106)

- - -

(106)

0

0

1

1

o/w interest on the limitation of the assets

Fees/levies/premiums

8

8

9

9

Impact of plan amendments/Reduction of future rights

(0)

(7)

(8)

(0)

0

(0)

Impact of liquidation of benefits

0

-

0

0

-

0

Actuarial (gains)/losses

-

5

5

-

(1)

(1)

Effect of asset ceiling (including the impact of IFRIC 14)

-

-

-

-

-

-

Net expense/(income) recognised in profit and loss

54

4

58

48

6

55

225

Pernod Ricard Universal Registration Document 2021-2022