PERNOD RICARD - Universal Registration Document 2019-2020

7. PERNOD RICARD SA FINANCIAL STATEMENTS Analysis of Pernod Ricard SA results and balance sheet

Provisions for risks and charges fell by €93 million. This change was attributable to: a decrease in the provision for post-employment benefits of — €5 million; a decline in the provision for foreign exchange losses of €24 million; — a decrease in provisions relating to the coverage of — performance-based share and employee share ownership plans of €64 million. During the period, borrowings increased by €2,279 million. This was mainly due to: bond issuance for €3,500 million; — bond redemption for €850 million and $500 million (equivalent to — €432 million);

the revaluation of US dollar-denominated bonds for €56 million; — the change in accrued interest for €5 million. — The €1,199 million decrease in operating debts is explained primarily by: the decrease in other debts amounting to €1,191 million, of which — €1,214 million from a decrease in the Pernod Ricard Finance current account, €27 million from the increase in intragroup creditors’ liabilities and tax current accounts and the €3 million fall in dividends to pay; the €10 million increase in trade payables; — the €17 million decrease in tax and social security payables. — The deferred income and adjustment accounts of €468 million at 30 June 2020 comprise the €26 million decrease in the value of unrealised foreign exchange gains compared with 30 June 2019.

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