PERNOD RICARD - Universal Registration Document 2019-2020

6. CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Presence of performance condition

Outstanding shares at 30.06.2020

Share expense for FY20 (€ thousands)

Type of shares

Number of beneficiaries

Shares acquired from

Shares vested from

Performance shares

Plan dated 06.11.2015

Free

Conditional

1,006

07.11.2019

07.11.2019

0

2,611

Plan dated 17.11.2016

Free

Conditional

997

18.11.2020

18.11.2020

366,417

7,368

33% 18.11.2017 33% 18.11.2019

33% 18.11.2018 33% 18.11.2020 33% 18.11.2019 33% 18.11.2021

Plan dated 17.11.2016

Free Unconditional

6

0

0  (1)

Plan dated 09.11.2017

Free

Conditional

1,000

10.11.2021

10.11.2021

200,523

112  (2)

Plan dated 21.11.2018

Free

Conditional

958

22.11.2022

22.11.2022

208,312

3,876  (2)

Plan dated 08.11.2019

Free

Conditional

820

09.11.2023

09.11.2023

175,706

3,735  (2)

For this plan, the Group decided to recognise all expenses in FY17. (1) Quantities of outstanding shares and share expenses taking into account the adjusted achievement of the performance condition for the 2017 plan and the cap on share (2) vesting under the 2018 and 2019 plans at 66%, in accordance with the decision taken by the Board of Directors, on the recommendation of the Compensation Committee and in compliance with the plan rules. The history of stock option plans that have not yet expired is presented in the “Corporate governance” section of the Universal Registration Document. For the vested stock option plan, the total number of options outstanding is 114,893, with an average remaining life of three years and three months. The Group recognised an expense of €2.6 million as an operating loss for five stock option plans in the process of vesting at 30 June 2020, as well as an expense of €17.7 million in respect of the five performance-based share plans.

Annual expenses € million

30.06.2019

30.06.2020

Stock options – through a double entry to equity

3

3

Performance-based and bonus shares – through a double entry to equity

33

18

TOTAL ANNUAL EXPENSES

36

20

Changes made to outstanding stock options/shares during the year (period from 1 July 2019 to 30 June 2020) are described below:

Presence of performance condition

Outstanding options at 30.06.2019

Allocated during the period

Cancelled during the period

Exercised during the period

Expired during the period

Outstanding options at 30.06.2020

Type of options

Plan dated 06.11.2015

Purchase Conditional

182,507

0

0

67,614

0

114,893

Plan dated 17.11.2016

Purchase Conditional

150,008

0

25,506

0

0

124,502

Plan dated 09.11.2017

Purchase Conditional

124,050

0

0

0

0

124,050

Plan dated 21.11.2018

Purchase Conditional

109,492

0

0

0

0

109,492

Plan dated 08.11.2019

Purchase Conditional

0

131,864

0

0

0

131,864

Presence of performance condition

Outstanding shares at 30.06.2019

Allocated during the period

Cancelled during the period

Transferred during the period

Expired during the period

Outstanding shares at 30.06.2020

Type of shares

Plan dated 06.11.2015

Free Conditional

337,828

0

8,510

329,318

0

0

Plan dated 17.11.2016

Free Conditional

406,026

0

38,869

740

0

366,417

Plan dated 17.11.2016

Free Unconditional

24,853

0

0

24,853

0

0

Plan dated 09.11.2017

Free Conditional

348,742

0

147,627

592

0 200,523  (1)

Plan dated 21.11.2018

Free Conditional

336,069

0

127,212

545

0 208,312  (1)

Plan dated 08.11.2019

Free Conditional

N/A

269,474

93,475

293

0 175,706  (1)

N/A: not applicable. Quantities of outstanding shares and share expenses taking into account the adjusted achievement of the performance condition for the 2017 plan and the cap on share (1) vesting under the 2018 and 2019 plans at 66%, in accordance with the decision taken by the Board of Directors, on the recommendation of the Compensation Committee and in compliance with the plan rules.

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