PERNOD RICARD - Universal Registration Document 2019-2020

6. CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

These impacts mainly concern real estate assets, including the offices occupied by the Group. The assumption concerning the lease term corresponds to the non-cancellable period of the lease, if necessary increased by renewal periods where there is an extension option and the management is reasonably certain to exercise that option. A breakdown of right-of-use assets by category of fixed asset at 1 July 2019 and at 30 June 2020 is also given in Note 4.2 – Property, plant and equipment .

The impact on the Group’s income statement is non-material. There is zero impact on profit from recurring operations. The impact on financial income/(expense) amounts to €(13) million. The impacts on the cash flow statement consist of an improvement in cash flow from operating activities of +€96 million and a deterioration in cash flow from financing activities of €(96) million. This corresponds to the reclassification in cash flow from financing activities of the repayment of the nominal amount of lease liabilities relating to leases previously classified as operating leases.

At 1 July 2019, the impacts on the balance sheet are as follows:

30.06.2019

IFRS 16 impacts

01.07.2019

€ million

Intangible assets

11,683

11,683

Goodwill

5,391

5,391

Land

311

53

364 947

Buildings

757

190

Machinery and equipment

808

11

819

Other property, plant and equipment and assets in progress

673

38

711

Property, plant and equipment  (1) Non-current financial assets  (2)

2,549

292

2,841 1,432

1,419

14

Investments in associates

14

14

Non-current derivative instruments

20

20

Deferred tax assets Non-current assets

1,590

1,590

22,665

306

22,971

Inventories and work in progress

5,756

5,756

Receivables

1,226

1,226

Income taxes receivable

105

105

Other current assets

359

359

Current derivative instruments

6

6

Cash and cash equivalents

923

923

Current assets

8,375

8,375

Assets held for sale TOTAL ASSETS

5

5

31,045

306

31,351

30.06.2019 Restated

IFRS 16 impacts

01.07.2019

€ million

Total shareholders’ equity

16,182

16,182

Non-current provisions

269 559

(3)

266 559

Provisions for pensions and other long-term employee benefits

Deferred tax liabilities Bonds - non-current

2,756 6,071

2,756 6,071

Non-current lease liabilities  (1)

-

248 (22)

248

Other non-current financial liabilities  (3)

363

341

Non-current derivative instruments

16

16

Total non-current liabilities

10,034

223

10,257

Current provisions

149

149

Trade payables

2,187

(3)

2,184

Income taxes payable Other current liabilities

307

307

1,058

1,058

Bonds - current

944

944

Current lease liabilities  (1)

-

91

91

Other current financial liabilities  (3)

177

(6)

171

Current derivative instruments

5

5

Total current liabilities

4,826

83

4,909

Liabilities related to assets held for sale

2

2

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

31,045

306

31,351

I.e. an impact at the beginning of the period of €339 million on lease liabilities and €292 million on right-of-use assets, mainly relating to property leases. (1) Receivables relating to sublease contracts. (2) Of which €28 million corresponds to the reclassification in lease liabilities of liabilities for contracts previously classified as finance leases under IAS 17. (3)

172

Pernod Ricard Universal Registration Document 2019-2020