PERNOD-RICARD - URD 2021-22 EN

6. Annual consolidated financial statements Notes to the consolidated financial statements

Interest rate, foreign exchange and commodity derivatives Note 4.10

Pursuant to the amended version of IAS 9 (Financial Instruments), all derivative instruments must be recognised in the balance sheet at fair value, determined on the basis of standard market valuation models or external prices issued by financial institutions. Where the derivative has been designated as a fair value hedge, changes in the value of the derivative and of the hedged item are recognised in profit and loss for the same period. If the derivative has been designated as a cash flow hedge, the change in value of the “effective” portion of the

hedge is recognised in shareholder equity. It is recognised in profit and loss when the hedged item is itself recognised in profit and loss. The change in value of the ineffective component of the derivative is however recognised directly in profit and loss. If the derivative is designated as a hedge of a net foreign currency investment, the change in value of the “effective” portion of the hedge is recognised in shareholder equity and the change in value of the “ineffective” portion is

recognised in profit and loss.

Hedging instruments (by risk category and nature of hedge)

Notional amount of contracts

Fair value

Description of financial instrument

> 1 year and < 5 years > 5 years

Type of hedge at 30.06.2021 € million

< 1 year

Total

Assets Liabilities

Fair value hedge

22 22

- -

Interest rate risk hedges

Swaps

-

673

-

673

Cross currency swaps

Interest rate and currency risk hedges

-

-

-

-

-

- - -

Net investment hedge Currency risk hedges

43

FX forwards

-

-

-

-

-

Cross currency swaps

Interest rate and currency risk hedges Derivative instruments included in net debt

-

460

-

460

43

-

64

-

Cash flow hedge

2

0

Interest rate risk hedges

Swaps

-

-

-

-

-

-

Currency swaps and FX forwards and FX options

Hedging of currency risk on intragroup financing and operational hedging

20

- -

- -

20

1

-

Commodity risk hedges Non hedge accounting

Swaps

17

17

2

0 6

6

Hedging of currency risk on intragroup financing and operational hedging

Currency swaps and FX forwards

1,494

- -

- -

1,494

6

6

Interest rate risk hedges

Swaps

-

-

-

-

Total derivative instruments

72

6

Total non-current

65

0 6

Total current

8

238

Pernod Ricard Universal Registration Document 2021-2022