PERNOD-RICARD - URD 2021-22 EN

Pernod Ricard SA separate financial statements Notes to the Pernod Ricard SA separate financial statements

Calculation of the provision with respect to the net benefit obligation The provision recognised by Pernod Ricard SA is equal to the difference, for each benefit plan, between the present value of the employee benefit obligation and the value of plan assets paid to specialised entities in order to fund the obligation. The present value of employee benefit obligations is calculated using the prospective method involving the calculation of a projected salary at the retirement date (projected unit credit method). The measurement is made at each balance sheet date and the personal data concerning employees is revised at least every three years. The calculation requires the use of economic assumptions (inflation rate and discount rate) and assumptions concerning employees (mainly average salary increase, rate of employee turnover and life expectancy). At 30 June 2022, the total amount of benefit obligations was €50 million. These obligations are fully provisioned. For information, the inflation rate used for the valuation at 30 June 2022 was 2.00% and the discount rate was 1.75%. Plan assets are measured at their market value at each balance sheet date.

Accounting for actuarial gains and losses Actuarial gains and losses arise primarily when estimates differ from actual outcomes, or when there are changes in long-term actuarial assumptions ( e.g. discount rate, rate of increase of salaries, etc.). The Company has applied the option set out in recommendation 2013-02, in which the full pension liability is recognised, since the financial year ended 30 June 2014. Components of the expense recognised for the financial year The expense recognised in respect of the benefit obligations described above incorporates: expenses corresponding to the acquisition of an additional year’s rights; interest expense arising on the unwinding of the discount applied to vested rights at the start of the year (as a result of the passage of time); income corresponding to the expected return on plan assets measured using the discount rate which is used to measure plan liabilities; income or expense corresponding to actuarial gains or losses; income or expense related to changes to existing plans or the creation of new plans; the income or expense related to any plan curtailments or settlements.

Deferred income and adjustment accounts Note 10

At 30.06.2022

At 30.06.2021

Increases

Decreases

€ thousand

Deferred income

18,989

-

(2,696)

16,293

Unrealised foreign exchange gains (1) (see breakdown in Note 1.9)

124,000

293,234

(124,000)

293,234

Total

142,989

293,234

(126,696)

309,527

The €293 million in unrealised foreign exchange gains at 30 June 2022 is attributable mainly to the revaluation of assets and liabilities at the closing (1) euro/US dollar exchange rate on 30 June 2022.

7.

Accrued income and expenses Note 11

Accrued income

30.06.2022

30.06.2021

€ thousand

Amount of accrued income in the following balance sheet items Loans and advances to affiliates and associates

53,536

59,370

Trade receivables Other receivables

338,459

457,204

1,036,227

1,205,107

Cash

93,028

312,516

Total

1,521,251

2,034,197

Accrued expenses

30.06.2022

30.06.2021

€ thousand

Amount of accrued expenses in the following balance sheet items Bank debt

-

-

Trade payables

148,218

192,328

Taxes and social payables

62,721

58,942

Other payables

1,065,925

449,023

Total

1,276,864

700,293

271

Pernod Ricard Universal Registration Document 2021-2022