PERNOD RICARD - Universal Registration Document 2019-2020

6. CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Net financial debt, as defined and used by the Group, corresponds to total gross debt (translated at the closing rate), including lease liabilities and fair value and net foreign currency asset hedged derivatives (hedging of net investments and similar), less cash and cash equivalents. 1. Breakdown of net financial debt by nature and maturity

30.06.2019

30.06.2020

Current Non-current

Total 7,015

Current Non-current

Total 9,322

€ million

Bonds

944

6,071

723

8,599

Syndicated loan

- -

- -

- -

-

- -

-

Commercial paper

299

299 273 572

Other loans and financial debts Other financial liabilities GROSS FINANCIAL DEBT

177 177

363 363

540 540

81

192 192

380

1,121

6,434

7,555

1,103

8,791

9,894

Fair value hedge derivatives instruments – assets Fair value hedge derivatives instruments – liabilities

- - - - - - -

(13)

(13)

(3)

(40)

(44)

2

2

-

-

-

Fair value hedge derivatives

(12)

(12)

(3)

(40)

(44)

Net investment hedging derivative instruments – assets Net investment hedging derivative instruments – liabilities

- - - - - -

- - - -

- - - - - -

(13)

(13)

-

-

Net investment hedge derivatives

(13)

(13)

Net assets hedging derivative instruments – assets Net assets hedging derivative instruments – liabilities Net asset hedging derivative instruments

- - -

- - -

0 0

0 0

FINANCIAL DEBT AFTER HEDGING

1,121

6,422

7,543 (923) 6,620

1,100

8,737

9,837

Cash and cash equivalents

(923)

-

(1,935)

-

(1,935) 7,902

NET FINANCIAL DEBT EXCLUDING LEASE LIABILITY

198

6,422

(835)

8,737

Lease liabilities*

88

433

522

NET FINANCIAL DEBT 8,424 Lease liabilities at 30 June 2020 include contracts previously classified as finance leases. At 30 June 2019, these liabilities totalled €28 million and were presented under * “Other loans and financial debts”. 198 6,422 6,620 (747) 9,171

The analysis of the change in net financial debt based on the changes in cash and non-cash is described below:

Changes in cash flows

Changes in cash flows with no cash impact

Foreign Exchange impact

Total cash flow

Change in fair value Other items

30.06.2019

Scope

30.06.2020

€ million

Bonds

7,015

2,211

- - - - - - - - - - - - - - -

67

29

- -

9,322

Syndicated loan

- -

-

- -

- - -

-

Commercial paper

299

-

299 273

Other loans and financial debts GROSS FINANCIAL DEBT

540

(241)

(1)

(24) (24)

7,555

2,269

66

29

9,894

Fair value hedge derivatives instruments – assets Fair value hedge derivatives instruments – liabilities

(13)

- - - - -

- - -

(30)

- - - - -

(44)

2

(2)

-

Fair value hedge derivatives

(12)

(32)

(44) (13) (13)

Net assets hedging derivative instruments - assets Net asset hedging derivative instruments

- -

(13) (13)

- -

FINANCIAL DEBT AFTER HEDGING

7,543 (923) 6,620

2,269

53 32 85

(3)

(24)

9,837

Cash and cash equivalents

(1,045)

-

-

(1,935) 7,902

NET FINANCIAL DEBT EXCLUDING LEASE LIABILITY

1,224 (112)

(3)

(24) 627 602

Lease liabilities*

-

8

-

522

NET FINANCIAL DEBT 8,424 Lease liabilities at 30 June 2020 include contracts previously classified as finance leases. At 30 June 2019, these liabilities totalled €28 million and were presented under * “Other loans and financial debts”. 6,620 1,111 93 (3)

197

Pernod Ricard Universal Registration Document 2019-2020