PERNOD RICARD - Universal Registration Document 2019-2020

6. CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Movements in the year

Translation adjustments

Other movements 30.06.2020

30.06.2019 Acquisitions Allowances Disposals

€ million

Other financial assets

1,097

2

-

(6)

13

(832)

273

Equity instruments

202

19

-

(2)

0

(119)

101

Loans, guarantees and deposits*

191

31

-

(9)

(9)

16

219

GROSS VALUE

1,489

52

-

(17)

4

(935)

593

Provisions for other financial assets

0

-

0

-

0

0

0

Provisions on equity instruments

(7)

-

-

-

0

-

(7)

Provisions for loans, guarantees and deposits

(62)

-

-

-

(1)

0

(63)

IMPAIRMENT

(70)

-

0 0

-

(1)

0

(71)

NON-CURRENT FINANCIAL ASSETS, NET 522 Following the application of IFRS 16 from 1 July 2019 (see Note 1.1.2.1.), the category “Loans, receivables and deposits” includes receivables relating to subleases * for €14 million at 30 June 2020. 1,419 52 (17) 3 (935)

Other financial assets at 30 June 2020 included €265 million of plan surplus related to employee benefits, compared to €1,083 million at the end of June 2019. This decline is mainly explained by a decrease of €903 million in net assets relating to a pension plan in the United Kingdom that was the subject of a buy-in (see Note 4.7 – Provisions ).

At 30 June 2020, equity instruments consisted mainly of unconsolidated securities held by the Group and in particular, those of Jumia Technologies AG, measured at fair value through OCI in the amount of €31 million based on the closing share price of €4.90 on 30 June 2020 (compared with €23.33 per share on 30 June 2019).

Inventories and work in progress Note 4.4

Inventories are measured at the lower of either their cost (acquisition cost and cost of production, including indirect ageing costs. These inventories are classified in current assets, production overheads) or their net realisable value. Net realisable although a substantial part remains in inventory for more than one value is the selling price less the estimated costs of completion and year in order to undergo the ageing process used for certain wines & sale of inventories. Most inventories are valued using the weighted spirits before being sold. average cost method. The cost of long-cycle inventories is computed using a single method which includes distilling and

The breakdown of inventories and work in progress at the balance sheet date is as follows:

Movements in the year

Change in gross values

Change in impairment

Translation adjustments

Other movements 30.06.2019

30.06.2018

€ million

Raw materials

136

2

-

0

2

140

Work-in-progress

4,614

269

-

(15)

9

4,877

Goods in inventory

467

38

-

2

(2)

505

Finished products

300

(23)

-

0

3

280

GROSS VALUE

5,517

286

-

(13)

11

5,802

Raw materials

(9)

-

(1)

0

-

(10)

Work-in-progress

(11)

-

1

0

-

(10)

Goods in inventory

(13)

-

0

0

0

(13)

Finished products

(13)

-

0

0

0

(13)

IMPAIRMENT

(45)

-

(1)

0

0

(46)

NET INVENTORIES

5,472

286

(1)

(13)

11

5,756

187

Pernod Ricard Universal Registration Document 2019-2020