PERNOD RICARD - Universal Registration Document 2019-2020

2. CORPORATE GOVERNANCE Compensation policy

Equity ratio between the level of compensation of Mr Alexandre RICARD, Chairman and CEO, and the average and median compensation of the Company’s employees The information concerning the ratios between the compensation of the Chairman and CEO and the average and median compensation of the Company’s employees is presented below pursuant to article L. 225-37-3 of the French Commercial Code, as amended by the implementing regulations of the PACTE law.

Calculation method The average and median compensation was established on a full-time equivalent basis for the Company’s employees other than the Chairman and CEO. This compensation includes the following components: fixed compensation, annual variable compensation, additional payments under the supplementary defined-contribution pension scheme, employee savings schemes and long-term incentives valued at their fair value at the allocation date. The ratios and annual changes in compensation were calculated on the basis of the gross compensation components paid in the current year (thus including the variable compensation and profit-sharing allocated in respect of the prior year). The scope of this information covers Pernod Ricard SA.

FY16

FY17

FY18

FY19

FY20

Ratio versus average compensation

22.39

48.09

33.76

40.17

39.12

Ratio versus median compensation

41.58

85.98

56.21

67.43

67.68

Elements explaining the variation of the ratio as regards the compensation of the Chairman and Chief Executive Officer taken into account: FY16: First year with full compensation as Chairman and Chief Executive Officer. ▪ FY17: Exceptional payment of €2,668,000 in consideration for the abolition of the supplementary defined-benefit pension plan (past service compensation – see 2016/17 ▪ Registration Document, page 109). FY18: Payment of the FY17 bonus with an achievement rate of 131%, whereas the bonus paid in FY17 in respect of FY16 represented 96.2%. ▪ FY19: Increase in the fixed compensation and payment of the bonus for FY18, with an achievement rate of 161%. ▪

Annual changes in the Company’s compensation and performance FY16

FY17

FY18

FY19

FY20

Compensation of the Chairman and CEO Change/N-1

57%

19% (1)

17% (1)

19%

5%

Average employee compensation Change/N-1 Median employee compensation Change/N-1 Profit from recurring operation Change/N-1 (2)

-1.9%

0.5%

-8.1%

-0.4%

7.8%

-4.6%

4.3%

-1.4%

-1.2%

4.5%

2%

3.3%

6.3%

8.7%

-13.7%

To allow a comparison between periods, the one-off payment of €2,668,000 for past service costs under the supplementary pension scheme has been isolated. (1) In internal growth, restated for foreign exchange and scope effects. (2)

Taking into account the last vote of the Shareholders’ Meeting of 8 November 2019 The Board of Directors, on the recommendation of the Compensation “ex post” vote and 94.63% for the “ex ante” vote) for the compensation Committee, took into account the vote of the Shareholders’ Meeting of policy put in place within the Group, and therefore decided to continue 8 November 2019, which saw strong shareholder support (93.88% for the this policy according to the same principles and arrangements for FY21.

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Pernod Ricard Universal Registration Document 2019-2020