PERNOD RICARD - Universal Registration Document 2019-2020

6. CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Earnings per share Note 3.4

Basic and diluted earnings per share are calculated on the basis of the weighted average number of outstanding shares, less the weighted average number of dilutive instruments. The calculation of diluted earnings per share takes into account the potential impact of the exercise of all dilutive instruments (such as stock options, convertible bonds, etc.) on the theoretical number of shares. When funds are obtained at the date of exercise of the dilutive instruments, the “treasury stock” method is used to determine the theoretical number of shares to be taken into account. When funds are obtained at the issue date of the dilutive instruments, net profit is adjusted for the finance cost, net of tax, relating to these instruments.

Group net profit and net earnings per share from continuing operations Numerator (€ million)

30.06.2019

30.06.2020

Group net profit

1,455

329

Denominator (in number of shares) Average number of outstanding shares

264,173,497

262,858,086

Dilutive effect of bonus share allocations

1,043,157

1,063,687

Dilutive effect of stock options and subscription options

202,895

115,058

Average number of outstanding shares—diluted

265,419,549

264,036,831

Earnings per share (€) Earnings per share – basic

5.51

1.25

Earnings per share – diluted

5.48

1.24

Earnings per share from continuing operations – basic

5.51

1.26

Earnings per share from continuing operations – diluted

5.48

1.26

Expenses by type Note 3.5 Operating profit notably includes depreciation, amortisation and impairment expenses as well as personnel expenses as follows:

30.06.2019

30.06.2020

€ million

Depreciation, amortisation and impairment expense on property, plant and equipment and intangible assets*

(293)

(1,314)

Salaries and payroll costs

(1,286)

(1,317)

Pensions, medical expenses and other similar benefits under defined benefit plans

(43)

(46)

Expense related to share-based payments

(40)

(22)

TOTAL PERSONNEL EXPENSES

(1,369)

(1,385)

Of which €999 million in impairment of intangible assets and €113 million relating to right-of-use assets as at 30.06.2020. *

Operating profit also includes €5.1 million in lease expenses relating to short-term leases, €1.9 million relating to leases of low-value assets and €2.7 million relating to variable leases.

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Pernod Ricard Universal Registration Document 2019-2020