2018 2017/2018 ANNUAL REPORT ANNUAL REPORT 2017/2018

Wood... it forms the barrels in which our spirits slowly age under the expert care of our Cellar Masters. FOREWORD

2017/2018: a story of success in the making. For the Group, which achieved excellent growth this year; for our brands, which continue to break new ground and gain market share across all the continents; for our strategy to move upmarket, which is ongoing and shows its relevance quarter after quarter; and for our distribution policy, which is more selective and increasingly relationship-focused, bringing us closer to our clients.

These results and the positive momentum they are creating Group-wide would not have been possible without the skill and commitment of the women and men comprising it. At all levels, the teams – production as well as marketing – have embodied the values of Rémy Cointreau: Terroir, People, Time and Exception. The recruitment of new talent represented a substantial portion of our investments. The excellence of our spirits relies on that too. 08 36 A WORD FROM LIQUEURS THE CHAIRMAN AND SPIRITS

10 44 AN INTERVIEW WHISKIES WITH THE CHIEF EXECUTIVE 50 OFFICER DISTRIBUTION NETWORK 12 THE EXECUTIVE 52 COMMITTEE THE MARKETS

14 54 MANIFESTO CORPORATE SOCIAL 18 RESPONSIBILITY THE CREATORS OF OUR HOUSES 58 BOARD 20 OF DIRECTORS SOME OF US 60 22 FINANCE OUR STRATEGIC VISION 64 COMMENTS 24 AND OUTLOOK KEY HIGHLIGHTS

26 ACHIEVEMENTS IN 2017/2018

28 THE YEAR OF THE BRANDS

30 CONTENTS THE HOUSE OF RÉMY MARTIN A WORD FROM THE CHAIRMAN MY COINTREAU _ ANNUAL REPORT É R

The year 2017/2018 confirmed our Group's singularity: transmission and continuity.

Appointed Chairman in October 2017, I follow in the footsteps of my sister, Dominique, and my brother, François, 07 in furthering our policy of development and growth, in continuity.

The continuity of our values: terroir, people and time. The continuity of our philosophy: the long term and exception.

The highlight of the past year is our growth, which has accelerated even further under the impetus of Asia, the United States and Travel Retail, underpinned by the remarkable breakthrough of our Cognac brands. This success is the fruit of our strategy to move upmarket and illustrates the relevance of our choices.

Some of our brands have existed for three MARC HÉRIARD DUBREUIL centuries, thanks to the boldness and vision of the women and men who built up this "Continuity, growth, the commitment Group, and we will strive to safeguard of our teams, to become the world leader these values while taking a contemporary in exceptional spirits" approach and preparing for the future. Maintaining expertise, harnessing skills and encouraging talented individuals: those are our major concerns. We rely on the commitment of all our teams to accomplish our ambition together: to become the worldwide leader in exceptional spirits. towards an upmarket repositioning. an towards efforts continued their Mount Gay rum and of The mixology. St-Rémy French brandy the development to particular in thanks China, and Russia in boom a strong enjoyed and market, traditional its States, the United in growth its continued Cointreau Europe. Eastern and Central in especially off, paid campaign communication and Metaxa's new image markets. all across status stellar its confirmed gin The whereas Botanist expectations, our exceeded that year aremarkable achieved the XO quality) particular (in brands cognac Rémy Martin and XIII Louis Our level? brand at And further. even over the world, things who take wantto all the teams to confidence great given choices our have and confirm These results categories. our all across States, United the in year we recorded another successful while fruit, bear to begun has years previous the work in performed India, and East the Middle In Europe. Central and Kingdom the United Russia, in performance strong from and particular), in (China Asia in of recovered activity year a full 2016/2017. in 4.7% We from benefited 7.2%, reached versus growth organic Our of mind. peace with forprepare the future up and speed to us allowing decisions, strategic our confirmed has that a year year; agood achieved We have certainly 2017/2018, growth... of accelerated the year enjoyed organicgrowth of9.2%. the Rémy Cointreau’s GroupBrands Over theyear 2017/2018, confident." feel teams the and there are results the established; firmly are brands different our of strategies and positioning "The VALÉRIE CHAPOULAUD-FLOQUET CHIEF EXECUTIVEOFFICER INTERVIEW WITHTHE

increase in the margin Group's in operating increase strong the Furthermore, term. medium the in of 60% target our towards moving Group's revenue. Year year, we are after nowand for account 53% of the nearly grow to (at continuing $50) are more than We spirits exceptional on schedule. Our are plan? of the 2020 terms in How would you the describe Group's progress of the Mix. The Art for Cointreau: campaign communication creative and of anew fresh the launch as well as Williams, Pharrell with the "100 partnership in Years" campaign and XIII Louis visibility: brand and education media, in investments our we have increase continued to addition, In technology. modern with experience combine authentic to and inspiring an and clients our with relationship a direct develop to us commerce have allowed The digital boutiques and Kingdom. United the and China in experiences E-Retail May. early Wein developed have also (China) London, Xian followed by onein in Harrods at March more: in open to two us prompted Beijing boutique in XIII Louis of the results The first-year results. good very yielded which experience, retail mention first our Ican of all, First year?of the last the highlights are what perspective, From astrategic for few years. the next stock build and scarceness manage to was goal the main Lastly, regarding our single malts, single our regarding Lastly,

of a dedicated team) and, on and, team) the other hand,of a dedicated the establishment to (thanks clients its with exclusive and relationship direct on increasingly the one by an hand, the brand's development underpinned, is XIII, Louis XO. Regarding Rémy Martin in of aromas the range appreciate fully to how clients our teach to experience tasting Tables": multi-sensory a "Opulence the the new XO decanter, we have created accompany to Furthermore, years. two last clubs the worldwide in some Maison ten —we have opened artisans and artists local with partnering while workshops, cognac with tastings cocktail combining — experiences unparalleled offering club apop-up private Rémy Martin", "Maison first of London on our the success in so! doing bold Drawing in were very we clients... And our with relationships the and brands of our the reputation strengthen to investments our increased today. We industry havethe cognac sharply the favorablefrom in conditions market benefit enables fully to us years three last the out in work carried The substantial brands? the success of cognac your How do you explain targets. profitability our achieve to we have that us the capacity reassures and promising very are These results investments. media our in rise a significant it possible absorb made to has increase whose significant margin, on the gross of theshows strategy value the effectiveness

more do! to there's newsis: Theprojects. good much so with brimming is my and head I feel calm 2018/2019? into going of mind frame your is What Afirst. certification. level 3HVE received which Cognac, in Champagne Fine the Alliance in winegrowers 69 ofto our of the Environment" "Centaurs the first such, we As recently awarded externally. and in-house both communication, CSR and governance, to related initiatives CSR certification, environmental of terms in But 2017/2018 of acceleration: ayear was for so 15 morebeen doing than years. the Group, we and have within initiatives We CSR implement continue to practical generations. future to inheritance our down pass to of people expertise of and our of the earth, care responsible for taking such, we time! As are a century's in there be still old, we and hope they will 100 years least at are brands of our Most 2017/2018? in initiatives the main were What Responsibility? Social Corporate of the Group's is termsWhat in philosophy reputation. and for the brand's positive very been image has Williams, by Pharrell recording song exclusive"100 an with Years" campaign, such,content. the second As opus of the creative highly with by communication

09 R É MY COINTREAU _ ANNUAL REPORT Valérie Chapoulaud-Floquet has surrounded herself THE EXECUTIVE COMMITTEE with a team of directors from 8 different nationalities who come from various backgrounds: spirits, cosmetics, fashion and accessories, culinary arts… MY COINTREAU _ ANNUAL REPORT É R VALÉRIE CHAPOULAUD- MARC-HENRI BERNARD LUCA MAROTTA VALÉRIE ALEXANDRE PATRICK MARCHAND FLOQUET director of human resources chief financial officer director of strategic planning operations director chief executive officer A former handball champion Bringing Italian flair to the world Both left-and-right-brained, Eclectic and authentic, this agile She’s not only a rescue diver but also in France, Marc-Henri Bernard of finance, you’ll not only find Valérie Alexandre always remains whisky enthusiast explores outside a great captain: good at setting clear knows what a team is, which serves Luca Marotta plotting our next centered: a yoga-taught skill that his 9-to-5. Apt to take directions, and channeling energy him well in his role as global Human financial move, but also his next enables her to step back and map his vintage-bike travels off the beaten to make things happen. "I believe Resources Director. play in a poker or bridge out long-term strategies path, Patrick Marchand is duly in a ‘bottom-up’ management style, tournament. for the Group. attuned to what lies beyond 11 that incites our team members to be (not just behind) operations. creative and take decisions."

PHILIPPE FARNIER JEAN-DENIS VOIN SIMON COUGHLIN DAVID ENNES SPYRIDON GHIKAS IAN MCLERNON chief executive officer, chief executive officer, chief executive officer, chief executive officer, asia chief executive officer, chief executive officer, house of remy martin liqueurs & spirits whisky business unit zone and global travel retail emea zone americas zone

Know that guy who was voted most Roots in Burgundy, this bon This guy doesn’t look like A classical piano player who speaks Spyros Ghikas’ Greek hospitality, Whether barreling down the slopes, likable in high school? Meet vivant blends business with leisure: a rebel, but meet Simon Coughlin, 8 languages—from Portuguese combined with years of experience, driving a car, or taxiing in transit, Mr. Charisma. "I firmly believe Jean-Denis not only cherishes founder of Progressive Hebridean to Mandarin—and has lived have him well equipped to lead Ian McLernon is on the move— that greatness already exists inside his own terroir (a tiny vineyard), Distillers and head of our in 10 countries—from the Congo teams across Europe, Africa, and propelling us forward our people, and my role is to empower but also leads our Liqueurs and Spirits Whisky Division. He rocked to the Philippines—if there is one and the Middle East—just in the Americas continent. them to reach their full potential." Division and its flagship Cointreau. the single malt industry. citizen of the world, it’s him. as he navigates ships around the Mediterranean sea. THE EXCEPTION: "TERROIRS, PEOPLE AND TIME"

People, the second pillar of our manifesto.

The Rémy Cointreau Group's manifesto is based on values that connect our Houses and guide our decisions: Terroirs, People, Time and Exception.

Over the years, we will delve into the heart of each of these values to appreciate their infinite facets. This year, we will

explore the second of these pillars in all MY COINTREAU _ ANNUAL REPORT of its dimensions: our People. É R

13 _PEOPLE

People... The second of the three words forming our signature. Between "Terroirs" and "Time". Like a hyphen connecting the two. Because, as expressed in our manifesto,

at Rémy Cointreau we believe each one MY COINTREAU _ ANNUAL REPORT of us is responsible for keeping alive É the connection between terroirs, people R and time in the greatest harmony.

And this connection is called transmission. We have much respect for the founders of our Houses. We cherish their heritage: terroir, expertise, eaux-de-vie, vision, and more. We want to remain faithful to 15 them while reinventing, mindful of what we will pass on in return. We respect the passage of time, the many long years of a family history. At Rémy Cointreau, we believe every one of us is responsible for keeping alive the connection between terroirs, people and time in the greatest harmony.

And this connection is called humanism. We believe "the only genuine form of wealth is people", and we feel And this connection is called openness. At Rémy Cointreau, we believe each a strong sense of benevolence towards Operating all around the world, we one of us is responsible for keeping our employees. People are considered experience diversity in our day-to-day alive the connection between terroirs, based on their qualities. A Talents lives. Our cultural openness enables us people and time, whether individually team ensures they have opportunities to understand our clients and allows or collectively, in the greatest harmony. for their development: training us to work together on a united front. programs, geographic mobility or We often collaborate in project groups, *Jean Bodin a change in profession. Confidence and bringing together complementary skills. independence are granted at all levels, We have adopted the African proverb, as a matter of principle. Telecommuting "alone we go faster, together we go is such an example. And so is the right farther". But our openness must reach to make mistakes, as it allows bold, beyond the company's walls: we strive entrepreneurial and creative individuals to give back to the community through to grow. At Rémy Cointreau, we believe a We Care Day during which we – 1,800 each one of us is responsible for keeping Rémy Cointreau employees worldwide alive the connection between terroirs, – will take care of our terroirs and people and time in the greatest harmony. its cultural heritage. THE CREATORS OF OUR HOUSES

BAPTISTE LOISEAU CAROLE QUINTON CÉCILE ROUDAUT ADAM HANNETT at rémy martin at cointreau at st-rémy at bruichladdich and botanist MY COINTREAU _ ANNUAL REPORT

When Baptiste Loiseau became Cellar Master in 2014 at 34, Carole Quinton, the nose of the House of Cointreau, Cécile Roudaut joined Rémy Cointreau in July 1997, working Adam grew up on the Isle of Islay before heading off to É he was one of the youngest people to ever fill this position. is a discreet adventurer with impeccable taste. She loves in Research and Development. That is where her special university. He returned soon afterwards to work as a tour R He took over from Pierrette Trichet, the first woman the Anjou countryside, the Alhambra gardens and the great relationship with St-Rémy began, leading to her appointment guide at Bruidladdich, where his training really began. to perform this role in a leading cognac company. Although Canadian lakes. in June 2016 as Master Blender, following the retirement the Cellar Master's primary responsibility is to preserve of Martine Pain. Adam traded in his role as guide to become head brewer, the heritage and traditions of the House of Rémy Martin, She owes her greatest lesson to her grandfather: that followed by head distiller and, finally, head of aging. Adam's we are not shy of being iconoclastic in our choice of people. of gardening, for which she has an infinite passion. Cécile intends to continue this historic role by respecting commitment and natural flair for blending soon caught Rémy Martin himself was the first Cellar Master of the House. She imagines the ideal life as an abundant garden: in her the brand's values: "St-Rémy has strong roots, a tradition, the attention of Jim McEwan, with whom he began working The role demands the highest respect. The person must opinion, it is only by respecting the rhythm of each plant, a history, a real elegance. My role is to preserve its authenticity." in the cellar. In 2015, upon Jim's retirement, the delicate be a perfectionist, ambitious and bold, who acknowledges of each species, that we can manage to find a balance close Aware that her work involves a greater dissemination responsibility of aging and blending our precious spirits that his or her innovative spirit will help to preserve to the supreme, absolute order. Cointreau? "It is a spirit, of knowledge, Cécile has been lecturing in sensory analysis, was entrusted to Adam, then promoted to Master Distiller. 17 the House's heritage. both in the alcoholic and human sense. There is a special food biochemistry and risk analysis at the University generosity. We can savor its roundness, its fullness. And, of Angers (France) for some 15 years. at the same time, its vitality."

CONSTANTINOS RAPTIS ALLEN SMITH FRÉDÉRIC RÉVOL MATT HOFMANN at metaxa at mount gay at domaine des hautes glaces at distillerie westland

Constantinos (Costas) Raptis is passionate about oenology For more than 20 years, Allen Smith has been supervising Frédéric Révol is the founder and Master Distiller of Domaine Matt Hofmann is the co-founder and Master Distiller and terroir, and is a great expert in the world of spirits. blending and aging processes at Mount Gay, the rum des Hautes Glaces. of Westland Distillery. that created rum in 1703. Armed with a degree in chemistry and winemaking from After studying agricultural engineering, he had the idea After studying economics at the University of Washington, the University of Athens, he joined Metaxa. That was more After earning a degree in biochemistry and microbiology, of developing a whisky with a unique aroma reflecting the he earned a Master's degree in Scotland at Heriot-Watt than 25 years ago. The fifth Metaxa Master since 1888, Allen joined the Mount Gay Distilleries in 1991 as a quality terroir of the French Alps. "We have the expertise to do it University. Hofmann was one of the main artisans involved he guards the House's secrets and guarantees the continuity assurance assistant, alongside Master Blender J. Edwards. here. Let's try to do it, and we'll see how it tastes!", he explains. in the creation and development of this exceptional whisky: of Metaxa's unique character, thereby bringing to life this After years of learning the craft, Allen was named Master A poet and engineer, utopian and pragmatic, Frédéric started in 2015, the distillery was named Best Whisky of the Year spirit's distinctive smoothness. Costas has signed many Blender of Mount Gay in 2010. That is how he gave rise the job on his own, driving the tractor, watching over the by the American Distilling Institute. Matt is the worthy heir of Metaxa creations, such as Metaxa 12 Stars and, more recently, to the brand's new creation, Mount Gay Black Barrel. stills and filling the bottles. If you visit him, he will make the Pioneers, who were stopped only by the Pacific Ocean: with Metaxa Angels' Treasure. you an omelet with mushrooms he gathered himself: morels, passion, he optimizes each stage in the whisky manufacturing chanterelles, etc. process, relying both on the collective expertise passed down from generation to generation, and on his own intuition. SOME OF US "Rémy Cointreau certainly is not any other company" MY COINTREAU _ ANNUAL REPORT

FLORIAN PFLIEGER GERALDINE LE GARREC SOPHIE PHE VIVIAN WENG CHRISTOPHER BOURNE É

brand ambassador, bruichladdich brands director for bruichladdich greater china marketing and human resources director, digital marketing and R and the botanist — paris, france — glasgow, scotland communication director, louis xiii greater china — shanghai, china communications specialist, — shanghai, china mount gay rum — , "The reputation of the Rémy Cointreau "Not only was the idea of working with "Terroir, People and Time, the core values Group always attracted me. Unlike other Rémy Cointreau—a family-owned Who wants to stay 10 years at the same of Rémy Cointreau, have been rooted "I think that if you are working at large spirits groups, Rémy Cointreau business with an international scope— job? Sophie Phe didn’t. She moved from into and blossomed through the Greater a company like Rémy Cointreau, distinguishes itself through its family style very interesting to me, but I was also Paris to China with our Group. "In 10 China team." you should be interested in more than and philosophy." attracted by the Group portfolio of high- years? I imagine that I will be inspired what your specialty is. Here, they are end brands, which I felt truly showcased by new opportunities in new territories." open, and you could get your hands dirty the excellence of French culture and doing more things than you think you 19 savoir-faire worldwide." could do. Besides, I feel like I have a work family now."

SANDRINE DAUNAR SANDRA LAMOUREUX ANTOINE COUVREUR LUC M. VLAMINCK JENNIFER ROMANCZUK research director for liqueurs global talent development and zone director, latin america group treasury director assistant general counsel and spirits — paris, france recruitment analyst — paris, france and the — brussels, belgium — new york, united states — miami, united states "What I read on the website spoke to me: "I’ve been growing within the "Rémy Cointreau is a family-owned "This year, I’ll be celebrating seven years I was drawn to the terroir, the quality organization, because I was given "Rémy Cointreau is not afraid to company with a very entrepreneurial at Rémy Cointreau. We work hard of the brands, as well as the history. different opportunities—hospitality to "take a risk," per se. While I was more spirit at all levels of the company. every day, but time certainly flies when Moreover, I admired the company personal assistant, working on brands, of a marketer, they took confidence It’s challenging—but always in a positive you’re having fun! As someone who has values. I was looking for a new challenge. but also within distribution networks... in my ability to change from marketing way—and very rewarding." three kids under the age of four, it’s great I wasn’t afraid of change, and neither I don’t know any other company that to sales, as well as change geographic to work at a place where I can flourish was Rémy Cointreau. While I had never would have enabled me to do this. But locations. That’s a true compliment to in my career and at the same time have worked in spirits, I had a strong expertise Rémy Cointreau certainly is not any other Rémy Cointreau: Not every company a fulfilling personal life." in marketing intelligence, and in capturing company." would do that." what and how to valorize business life." OUR STRATEGIC VISION

Thanks to its unique business model better understand their expectations, and portfolio of exceptional spirits, the and thereby secure their loyalty to our Rémy Cointreau Group is continuing its brands in the long term. long-term brand elevation strategy. This strategy relies on its unique terroirs, Optimizing its distribution network its masterful expertise and the strict in line with the Group's strategy: demands of time. It has a clear and the Group's strategy to move upmarket constant ambition in the medium term: must rely on a distribution network whose becoming the world leader in exceptional expertise is consistent with our brands' spirits. positioning: selective distribution, bars, high-end hotels and restaurants, along Five drivers will enable the Group with retail and E-Retail platforms. Lastly, MY COINTREAU _ ANNUAL REPORT

to reach its goals: the expansion of our network beyond our É

current borders (in particular in Africa, R Consolidating the unique positioning South East Asia and Latin America) of its brands: each of our spirits is the also offers significant growth potential. fruit of a terroir and of specific expertise: within the Cognac AOC, the eaux-de- Accelerating the Group's Corporate vie of the House of Rémy Martin come Social Responsibility ambitions: exclusively from Grande and Petite Rémy Cointreau's 2020 CSR plan Champagne — boasting incomparable operationally focuses on 10 of the aromatic profiles and aging potential 17 United Nations Sustainable Development 21 —, while our single malt whiskies from Goals, selected based on an analysis Islay are made only from Scottish barley, of the relevance of these goals for then distilled and aged on the Isle the Group. By 2020, the Group will strive of Islay using traditional methods. in particular to reach 100% responsible Our communication campaigns must assert sourcing (rate of suppliers with SEDEX this loud and clear, and with creativity membership) and 100% of winegrowing to strengthen our brands' desirability. partners committed to an environmental approach (AHVE 1). Maximizing the geographic potential of our brands and diversifying growth drivers: our brands still have much Exceptional spirits (>USD 50) untapped potential across all our will account for 60-65% of Group markets. As such, we think there is revenue in the medium term. significant room for growth in the coming years: Louis XIII in the United States, Rémy Martin in Africa, and even Cointreau and Metaxa in China. In addition, 45% 49% 51% 53% the ramp-up of our avant-garde brands, 60- such as single malt whiskies, The Botanist 65% gin and Mount Gay rum, offers an attractive growth driver.

55% 51% 49% 47% 35- Strengthening emotional relationships 40% with clients: our clients seek knowledge, distinction, emotion and experience. By establishing a direct and personalized connection with them through media and digital investments with creative 2014 2015 2015 2016 2016 2017 2017 2018 medium term and relevant content, as well as through unique and unforgettable events, we can >USD50 strengthen the desirability of our spirits,

KEY HIGHLIGHTS

Rémy Cointreau achieved a remarkable year in 2017/2018, with organic revenue growth €148.2 (at constant scope and exchange rates) of 7.2%, thanks to the positive momentum M in the Asia-Pacific and Americas zones, together with strong growth in Russia, Net profit (Group the United Kingdom and Central Europe. share)

Current operating income was up 14.1% in organic terms, and the operating margin

stood at 22.0% of revenue, up 1.3 points. €151.3 MY COINTREAU _ ANNUAL REPORT

After integrating unfavorable foreign É exchange rates and scope of consolidation, R current operating income was up 4.7% M and the margin improved by 0.3 points Net profit to 21.0%. Lastly, net income (excluding (excluding non- non-recurring items) increased by 12.0%. recurring items)

These results confirm the relevance of the Group's value-creating and cash flow 23 generating business model and have led €3.04 to a new substantial reduction in debt ratios. Net earnings per share (excluding non-recurring items) _ACCELERATED GROWTH _RAMP-UP OF E-RETAIL In 2017/2018, Rémy Cointreau E-Retail has grown significantly experienced further acceleration in in China and the United Kingdom its organic growth, which reached for the Group’s brands. Over 1.48 9.2% for the Group's brands and above its promising growth (Cognac and Liqueurs & Spirits). potential, this distribution channel Net debt/EBITDA also allows us to enrich our CRM ratio programs. Understanding our clients _BOLD COMMUNICATION to increase their loyalty. €1,127.0 +9.2% Communicating boldly to raise O r g a n i c g r o w t h awareness among our clients. Two _HIGH ENVIRONMENTAL campaigns certainly lived up to M in the Group’s brands €1.65 that goal this year: the second VALUE Revenue Dividend opus of the Louis XIII "100 Years" The year was characterized by campaign in partnership with the accelerated implementation of Pharrell Williams, and the new High Environmental Value (HVE) Cointreau "The Art of the Mix" certification in the Cognac Fine campaign. Champagne AOC. 64% of the areas €236.8 21.0% cultivated by our winegrowing partners have already received Current operating level 1 HVE certification, and we M margin strive for 100% in 2020. Current operating profit 67% Rémy Martin division by ofBreakdown 2017/2018 revenue items) €M in Net (excl. profit non-recurring €M) (in Sales ACHIEVEMENTS IN2017/2018 1050.7 110.4 2015 2015 2016 2016 1094.9 135.0 2016 2016 2017 2017 9% Partner Brands 1127.0 24% & Spirits Liqueurs 151.3 2017 2017 2018 2018 by region ofBreakdown 2017/2018 revenue Current operating margin operating Current EBITDA ratio debt/ net and €M) (in debt Net Americas 39% 17.0% 458.2 2.29 2015 2015 2016 2016 1.78 20.7% 390.1 2016 2016 2017 2017 1.48 31% Asia-Pacific 21.0% 30% East &Africa Europe, Middle 282.8 2017 2017 2018 2018 THE YEAR OF THE BRANDS

With organic growth of 9.2%, Rémy Cointreau’s Group Brands achieved once again an excellent performance.

The cognacs of the House of Rémy Martin did particularly well (+13.2%), driven by the acceleration of their sales in Asia-Pacific, the positive momentum of the American market, and their innovative strength — illustrated by the "Maison Rémy Martin" pop-up private clubs and the second limited edition of the "Carte Blanche à Baptiste Loiseau" blend, of which 9,650 bottles were produced. Louis XIII continued its successful move into the luxury industry with its new "100 Years" campaign in partnership with Pharrell Williams, and the creation of a "Salmanazar", a unique 9-liter decanter.

The brands of the Liqueurs & Spirits division continued to grow (+4% in organic terms and adjusted for the deconsolidation of Passoã). Metaxa sustained its positive momentum thanks to the success of the 12 Stars quality in its main markets, while Cointreau took center stage with a bold communication campaign and set off to new frontiers (China and Russia). Mount Gay rum and St-Rémy brandy experienced growth, which was moderated by their move upmarket.

The Botanist gin continued to expand in the world of mixology, whereas single malts by the Progressive Hebridean Distillers gained popularity among connoisseurs, from traditional Western

markets to remote Asian territories. Caption: Opulence that deconstructs Table the aromas of Rémy Martin XO. THE HOUSE OF RÉMY MARTIN

The 2017/2018 financial year was characterized by excellent results for the House of Rémy Martin, demonstrating the success of our brand elevation strategy. These record volumes were achieved thanks to the very dynamic growth of our most high-end products.

Fueled by a highly client- The 2017/2018 financial focused culture and organization, this growth is year was characterized based on solid fundamentals by excellent results for and allows us to look ahead the House of Rémy Martin. with peace of mind. That is why, over the past year, the House launched an extensive forward-looking project: the construction of a new winemaking and distillation facility, planned to open for the 2018 harvest, representing the first part of an investment program covering all the Cognac sites, spread over the next five years.

The year was also characterized by the accelerated implementation of High Environmental Value certification, with the active support of our affiliated cooperative, the Alliance Fine Champagne: today, nearly 400 of our partners have committed to an environmental approach, and nearly 100 have obtained level 3 HVE environmental certification.

€760.0M €204.4M Revenue of the House Current operating profit of Rémy Martin of the House of Rémy Martin

26.9% Current operating margin of the House of Rémy Martin MY COINTREAU _ ANNUAL REPORT

_RÉMY MARTIN É R Rémy Martin reported a record client base; brand activations involving 2017/2018 financial year with increased music in the United States enhanced revenue driven by double-digit growth the lifestyle dimension of Rémy Martin; in its CLUB and XO qualities, while while various efforts were made VSOP experienced more moderate in terms of retail outlet merchandising growth. to increase consistency and quality in the Travel Retail and mass distribution This strong performance spanned across sectors. Lastly, digital technology 31 all regions, with remarkable growth played a leading role in Rémy Martin's in Greater China, the United States, success in 2017/2018, with the roll-out Russia and Travel Retail. In particular, of the "Hololens" mixed reality process Travel Retail benefited from the re- and the spectacular acceleration introduction of the traditional VSOP in E-Retail sales in China, in particular and XO qualities, and from increased regarding the CLUB product. attention to its core products. The year 2018/2019 should continue These strong results reflect a value to offer strong growth prospects, strategy expressed through several in particular on the back of new markets, initiatives. The XO quality, spearhead such as Africa and South East Asia, of the strategy to move upmarket, and thanks to the continued improvement enjoyed significant support from in the mix of 1738, CLUB and XO the media with the continuation of the sales. In terms of Communication, the "One Life / Live Them" campaign, and spotlight will focus on a 360° program also from communication activities based on the partnership with designer and special initiatives in bars, clubs Matt W. Moore, who is very popular and restaurants to reposition XO with millennials. at the heart of the "Celebration". THE XO QUALITY, SPEARHEAD Our high-end range was strengthened OF THE STRATEGY TO MOVE UPMARKET, with the launch in October 2017 ENJOYED SUBSTANTIAL MEDIA of "Carte Blanche à Baptiste Loiseau - INVESTMENTS WITH THE ONGOING Edition Merpins", of which 9,650 bottles "ONE LIFE / LIVE THEM" CAMPAIGN were produced, enhancing the "craft and terroir" dimension of Rémy Martin. The extension of the "Maison Rémy Martin" private clubs to Shanghai, Xiamen and Moscow enabled the brand to capture a younger and more diverse _LOUIS XIII

Time is one of the essential values that global warming. "100 Years", a song lends Louis XIII its status as a timeless by Pharrell Williams to be released in symbol of luxury. Knowing how to 2117 but only #ifwecare. Louis XIII magnify the heritage left by previous has enjoyed great success, since the Cellar Masters while preparing campaign generated more than 70 the treasure that will be revealed million reactions on social media (likes, by future generations: therein lies shares and comments), the talent of Louis XIII, capable in particular among the After John Malkovich, of anticipating the future through its art new generation, targeted of innovation. A talent that has allowed by Louis XIII. Louis XIII asked it to record a very strong performance Pharrell Williams to in 2017/2018, with a highly balanced In the future, Louis XIII record an original piece distribution of its worldwide revenue. will continue to innovate We can highlight the outstanding in order to cement its of music, that will only performance of the limited-edition status as a leader and be released in 100 years. "Time Collection – The Origin – 1874" icon in the luxury sector. and the artisanal tour de force of the The brand is planning the third opus unique and unprecedented 9-liter of the "100 Years" campaign in 2020. decanter, the "Salmanazar", valued at It is also thinking about the next €350,000 and sold at the Louis XIII boutique openings while preparing new boutique in Beijing. limited editions. Although time is an essential part of Louis XIII's preparation, The year 2016 had been characterized the brand's innovative spirit and efforts by initiatives enabling Louis XIII to are very dynamic. engage with its clients. The year 2017 confirmed this desire with the opening of a second boutique in Harrods, London (UK). These boutiques enable Louis XIII to offer its clients unique and tailored experiences and to establish an innovative CRM program.

But the year 2017 was really all about the launch of the second opus of the "100 Years" campaign. After John Malkovich, Louis XIII asked Pharrell Williams to record an original piece of music, that will only be released in 100 years, in 2117. A meaningful message, since the campaign is related to environmental challenges and the consequences of LIQUEURS AND SPIRITS

Although the brands in the Liqueurs cocktails. Cointreau is one of them, of & Spirits division did not reach the course: from the 1920s cocktail culture to exceptional highs of the Cognac brands, the present day, it has been used in more they still recorded sales growth of +4% than 350 recipes, including the famous (in organic terms and adjusted for Margarita created 70 the deconsolidation of Passoã), despite years ago. Our brands offer the moderate market environment, especially Whether revisiting the in the United States. classics or exploring untapped growth MY COINTREAU _ ANNUAL REPORT É

new tasting territories, potential, especially R Bolstered by their diversity, our ten brands Metaxa has become in the Asian markets, are all geared for excellence. Cointreau increasingly valuable as a benchmark in its category, Metaxa to mixologists in which are gradually with the success of its "12 Stars" quality, Greece, Eastern discovering the art while Mount Gay rum and St-Rémy brandy Europe and beyond. of the cocktail. continue their move upmarket. Moreover, As for The Botanist, The Botanist is already considered to it is increasingly coveted by barmen be one of the finest high-end gins on from all around the world, thanks to the 35 the market, while our five single malts distinctive aroma of the 22 botanicals — three Scottish, one French and one from the Isle of Islay in its composition. American — target the most discerning connoisseurs. Lastly, it is worth mentioning the strong growth of Cointreau across new markets In addition, several of our brands are – Greater China and Russia, in particular central to the strong trend in mixology, – which still have much growth potential since they already constitute (or are on account of their gradual discovery becoming) essential ingredients in these of the art of the cocktail.

€266.8M €42.8M 16.1% Revenue of the Liqueurs Current operating profit Current operating margin & Spirits division of the Liqueurs & Spirits of the Liqueurs & Spirits division division _ST-RÉMY

The number one French brandy, St-Rémy enjoys a presence across all continents and is the international gold standard of brandy. In particular, it is ranked among the top brands in its category in the Travel Retail sector.

Thanks to this remarkable performance in Travel Retail, St-Rémy recorded excellent growth in 2017/2018. In addition, the brand continues to enjoy steady growth in its historical market, Canada, where St-Rémy holds a leading position. Lastly, the brand's strategy to move upmarket has paid off, with the XO quality showing faster growth than the VSOP. MY COINTREAU _ ANNUAL REPORT

The year 2018/2019 should fully benefit É from the new and more refined design R of the St-Rémy bottle. Furthermore, a limited edition with a Chardonnay NEW INTERNATIONAL Cask finishing will offer a new variety. CAMPAIGN (OUTSIDE OF FRANCE): "THE ART OF THE MIX" 37

_COINTREAU

Inseparable from the history of mixology ultra-modern cocktail bar and a bar/ since the late 19th century, the famous workshop combining cocktails with Cointreau liqueur aims to become gastronomy. Mixologists from all corners the world leader in cocktail culture. of the globe meet there to share new experiences. Cointreau's steady revenue growth continued throughout 2017/2018, In 2018/2019, Cointreau plans to build whether in traditional markets (United on the impact of its new campaign States, United Kingdom and Australia) and the celebrations organized to mark or in emerging markets (China and the 70th anniversary of the Margarita. Russia).

While keeping the focus on its signature long drink, the Cointreau Fizz, the brand strategy also turned the spotlight on its classic cocktails (Margarita, Cosmopolitan, Rickey, Sidecar), which are portrayed in the new "Art of the Mix" campaign, launched in March 2018. In 2017, the Carré Cointreau in Angers was entirely revamped to include an _METAXA

Targeting a curious client base – one 2017/2018 was another remarkable open to exploring new experiences year for Metaxa, which recorded and sensations – Metaxa has been strong sales growth in its main markets cultivating its singularity ever since it in Eastern and Southern Europe. The was created by Spyros Metaxa in 1888. upgrading strategy, based in particular This one-of-a-kind Greek spirit is the on promoting the 12 Stars product, is result of a blend of eaux-de-vie, Muscat paying off, turning Metaxa into an active wines from the island of Samos and rose player in the Rémy Cointreau Group's petal extract from the Peloponnese. transition to the world of exceptional It is aged in Greece under the expert spirits. care of Constantinos Raptis, Metaxa Master for more than 25 years. In terms of communication, the "Metaxa: don't drink it, explore it" campaign launched in early 2017, which shows the famous and charismatic explorer Mike Horn, continues to fully play its role – expressing the brand's singularity and boosting its modernization.

Lastly, a major step in the brand's international growth was taken at the end of 2017 with the launch of Metaxa 12 Stars on the Chinese market.

Created in 1888, Metaxa approaches its 130th anniversary in 2018 in a state of strong growth.

In 2018/2019, Metaxa will further intensify its investments to support its high-end positioning strategy, expressed in the new packaging for its 5 and 7 Stars range, among others. 2018 will also be an opportunity to celebrate the brand's 130th anniversary through various events in the Greek islands this summer. The Botanist becomes the benchmark for exceptional gins.

_MOUNT GAY MY COINTREAU _ ANNUAL REPORT É R Although revenue growth in 2017/2018 A good measure was moderate compared to the previous financial year, it still forms of time: the Mount Gay part of Mount Gay's strategy to move brand waited upmarket. Whereas sales of our entry- three centuries before level flagship product, Eclipse, slowed down markedly, our superior quality speaking up. rums (in particular Black Barrel and XO) experienced double-digit growth, 41 driven by the brand's international expansion beyond the borders of the American continent: in Europe — especially the United Kingdom — and in Asia-Pacific.

For the first time in its more than 300- year history, Mount Gay is promoted _THE BOTANIST in a communication campaign called "Time well spent". Shot in Barbados, The Botanist performed exceptionally reputation among influencers and the film capitalizes on the value of well in all of our major markets once establishing its status as an exceptional time in its most noble sense, whether again, thanks to the quality of this brand. Sampling has also continued to in terms of developing or tasting our extraordinary product, the effectiveness prove its effectiveness, with exceptional rums, associated with the local way of our growth accelerators, and the levels of purchasing conversion rates. of life. With its preview launch in the positive momentum enjoyed by high- United States in 2018 focused on "après- end and artisanal gins. The major event for the year 2018/2019 ski", the digital campaign generated will be the launch of the "experiential" more than 95 million media prints in The Botanist's growing success inspired #BeThe Botanist campaign, which invites a few months: a record for the brand. us to draw up an ambitious plan for our clients to enjoy and share creative 2017/2018, with every component tasting experiences focused on The Botanist In 2018/2019, we are counting on making a meaningful contribution. gin and wild foraging. the global roll-out of this advertising It helped us expand into new markets, campaign to increase Mount Gay's increased the brand's visibility in international reputation, encourage our bars and restaurants, and enabled clients to embrace the brand’s move the launch of new bottle sizes for upmarket, and accelerate the brand's selective distribution. At the same growth in our key markets. time, we created fruitful collaborations between mixologists and chefs in several key cities, developing The Botanist's WHISKIES

Our new whisky business unit was established during the previous financial year, comprising five single malts that share the same values of excellence: Bruichladdich, Port Charlotte, Octomore (the three brands of the Progressive Hebridean Distillers in Islay, Scotland), as well as Domaine des Hautes Glaces, a farm distillery in the French Alps, and Westland, a distillery in Seattle, the United States.

In 2017/2018, these brands gave a dynamic performance while continuing their substantive work to establish themselves in the long term. As such, the PHD distillery is emerging as the only producer MY COINTREAU _ ANNUAL REPORT É

of Islay whiskies from barley grown on the R island. The "Transparency" operation has promoted this singularity to connoisseurs.

Regarding the two other brands, whose production capacity is purposely restricted, their main goal is to build up stock for the coming years. 43 MY COINTREAU _ ANNUAL REPORT É R

45 AS EARLY AS IN 1930, AENEAS MACDONALD, AUTHOR OF A LEADING WORK ON WHISKY, LAMENTED THE LACK OF TRANSPARENCY REGARDING THE ORIGIN OF DISTILLED BARLEY.

_PROGRESSIVE HEBRIDEAN DISTILLERS

Our whiskies from the Bruichladdich distillery continue to distinguish themselves in the single malt market, offering exceptional whiskies reflecting the terroir of Islay.

Our Scottish single malt portfolio approach of the Bruichladdich Hebridean News platform also served has experienced another year of distillery and the commitment to the our communication strategy effectively, robust growth, driven by the success origin of ingredients, local production, strengthening our direct relationship of our core whiskies and by that authentic expertise and transparency with our clients across the world. of limited editions (some of which are driving our strategy more than are distributed exclusively on the ever before. The "Transparency" 2018/2019 will see the rebirth of distillery's E-Retail site), which was campaign promoting our malts the Port Charlotte Islay Single Malt a major highlight during the year. portfolio generated excellent media brand. The new packaging identity and Moreover, our strategy to capture coverage for our brands, clearly revisited product range are currently emerging markets and E-Retail, highlighting the distillery’s unique being rolled out in all the main markets. directly targeting a client base character in the market. At the same of connoisseurs, represents a new time, the CRM Progressive. source of growth. The fine-tuned MY COINTREAU _ ANNUAL REPORT É R

47

_DOMAINE DES HAUTES GLACES _WESTLAND

Ever since it was created by Frédéric the greatest respect for terroir, people Based in Seattle, Westland is a unique Westland's limited-edition "Peat Week Revol in 2009, the mountain farm distillery and time. Relying on a reinterpretation player in the American single malt whiskies 2017" was named Best American Single Domaine des Hautes Glaces has developed of local expertise to promote the aromatic category. Rooted in a terroir that enjoys Malt at the 2018 World Whiskies Awards. exceptional single malt whiskies from the distinctiveness of alpine mountain grains, one of the best climates in the world for Trièves Mountains at an altitude of 900 the Domaine des Hautes Glaces explores its growing barley, Westland produces authentic The Distillery is also dedicated to developing meters in the heart of the French Alps. terroir by offering single single malts created by the Master Distiller the single malt whiskies category by using The creation of these whiskies adheres malt whiskies with The concept of terroir and co-founder Matt Hofmann. They reflect new varietals of barley and oak. Westland to a very strict sustainable development unrivalled flavor. has never been taken the distinctive character of the Pacific is thus positioned as the forerunner approach: certified organic, they are The elegance of the bottle so far for a single malt Northwest region in the United States, in the development of American single malt manufactured in a traditional and authentic – at once minimalist and a final frontier before encountering the whiskies by participating in the creation way from various grains (barley, rye, contemporary – reflects as with Domaine ocean. Distillation begins with the region's of a clear categorical definition, both as well as spelt and hull-less oats), the complex ties between des Hautes Glaces. pristine water sources before aging in the United States and internationally. using mainly renewable and local energies. the past, the present the whiskies in different varietals of oak and the future; between the respect for from local forests. It is an ideally temperate By using grains grown under different tradition and the boldness of innovation. and humid environment for the maturation alpine climates and processed on-site of eaux-de-vie. The result is an aromatic in old Charentes stills, the Domaine whisky whose unrivalled flavor offers subtle des Hautes Glaces has developed a range notes of fruit and grain. of single malt whiskies developed with

DISTRIBUTION NETWORK

Islay Glasgow Moscow London Brussels Paris Seattle Prague Angers Geneva Cognac Saint-Jean-d’Hérans New York Athens MY COINTREAU _ ANNUAL REPORT Samos É Tokyo R

Shanghai

Miami Taipei, Taiwan Hong Kong 49 Bridgetown, Barbados Ho Chi Minh

Kuala Lumpur, Malaysia Singapore

2017/2018 REVENUE (AS % OF TOTAL AMOUNT) Johannesburg

EMEA ZONE: 30% of 2017/2018 sales

AMERICAS ZONE: 39% of 2017/2018 sales

ASIA-PACIFIC ZONE: 31% of 2017/2018 sales

Group administrative sites

Group production sites Travel Retail representative offices THE MARKETS

_EUROPE, MIDDLE EAST _AMERICAS _ASIA-PACIFIC & AFRICA _TRAVEL RETAIL MY COINTREAU _ ANNUAL REPORT É

In a favorable economic environment, The Asian markets were very buoyant in Although it has improved, the Group's In 2017, the Travel Retail market continued R the spirits market continued its growth 2017/2018. In China especially, our high- performance in the Europe, Middle the recovery that began in the second and move upmarket in the United States. end spirits enjoyed strong enthusiasm East and Africa region remained mixed half of 2016, driven by +8% growth Our Cognacs excelled on the back of our across all distribution channels. Given in 2017/2018. Eastern Europe recorded in global air traffic. The increased number investments: the "100 Years" campaign the strong power of attraction of the an excellent year, while Central Europe of Chinese tourists, together with the return with Pharrell Williams and the "Perfect Louis XIII Beijing boutique on the and the United Kingdom also kept up of Russian travelers in Europe, were the Pour" proposal in bars and restaurants for entire Northern China, we had to limit their buoyant momentum, but Western major drivers of this trend. Louis XIII; media investments supporting the offer to avoid penalizing clients Europe remains more complex. Africa and the One Life / Live Them and Rooted in in other markets. This was also true the Middle East confirmed their strong The Rémy Cointreau Group's brands 51 Exception campaigns for Rémy Martin XO in Japan. We gained market share potential in the medium term, in particular delivered a remarkable performance and 1738. Cointreau continued its growth, in Singapore, in particular through the with excellent results in South Africa, in this category in 2017/2018, thanks to driven in particular by the celebration of the spectacular performance of Rémy Martin Nigeria, the United Arab Emirates and the concentration of our investments 70th anniversary of the Margarita in 2018. CLUB, and Australia recorded a fine India during the year. (brand events, merchandising) in our In the emerging Single Malts market, the performance across its entire portfolio, flagship airports, and a segmented approach year was dedicated to refocusing on a highly especially with respect to Cointreau Several initiatives were implemented in retail outlets aimed at offering a tailored selective distribution network and training and Louis XIII. Lastly, our new successfully in this region, particularly product positioning. Accordingly, the resellers, for Bruichladdich and Westland subsidiary in Malaysia (which opened in the United Kingdom for Cointreau House of Rémy Martin brands, together alike. in October) is very promising. (digital and "on trade" campaign promoting with The Botanist, Metaxa and St-Rémy, the Cointreau Fizz) and for Louis XIII, recorded double-digit growth in the year In Canada, we strengthened our positions Among the different initiatives developed which (after the success of a pop-up thanks to successful brand activation. in a highly regulated market by focusing on the continent, the launch of the Louis boutique in Harrods in March 2017) our investments on the consumption of our XIII Time Collection and Legacy limited decided to open a permanent boutique The market momentum should remain spirits in bars and restaurants. Louis XIII editions enjoyed remarkable success. in this fine London establishment in March buoyant in 2018/2019, and several factors also enjoyed successful expansion, thanks As for Cointreau, the cocktail competition 2018. In Russia, Rémy Martin XO relied are expected to create opportunities for to the ramp-up of its direct sales model. was a real highlight, with 5 million online on two local influencers to strengthen our exceptional spirits portfolio: sustained In Mexico, the strategy to move upmarket viewers watching the Chinese final. the brand's reputation while also sharing growth in air traffic, the digitalization paid off with healthy growth in the House Lastly, The Botanist's tasting sessions its history and unique characteristics. of the purchasing experience in airports, of Rémy Martin, driven by the launch of contributed significantly to the growth Metaxa also capitalized on a Russian and the possibility of a return to duty- Rémy Martin 1738 and the increased of our exceptional gin. influencer to focus its brand territory on free in the United Kingdom after Brexit. visibility of Louis XIII. Lastly, the "Original the idea of exploration, thereby strengthening Margarita" campaign enabled Cointreau Media investments and digital campaigns its unique image. to record robust growth. will continue in 2018/2019, supporting Lastly, in South Africa and India, our robust growth in the market and Louis XIII made an appearance at prestigious In 2018/2019, media investments should in our spirits especially. weddings. continue to intensify in these markets, which enjoy a consistently positive outlook. We believe the macroeconomic environment will continue to improve in 2018/2019; as a result, we aim to increase our investments. Giving honor where honor is due... This year, the House of Rémy Martin worked in close collaboration with its winegrowing partners from the Alliance Fine Champagne to support the powerful movement aimed at the environmental certification of its terroirs. At the end of March 2018, two-thirds of vineyard areas cultivated in Cognac had received level 1 AHVE (High Environmental Value Agriculture) certification, and nearly one-quarter had already reached level 3 (the top level). Our own Estates, members of the Ecophyto MY COINTREAU _ ANNUAL REPORT

national network, have had their AHVE É

3 certification renewed for three years. Lastly, since Time is central to the R CORPORATE SOCIAL Now, all of the Maisons are involved concept of sustainable development, in this extensive movement: we have this entails that we must apply RESPONSIBILITY produced a global map of the terroirs the strictest standards regarding climate where we source our ingredients (vines, challenges. Air and Water are the two sugar cane, wheat, barley, oranges, major elements that have prompted us For Rémy Cointreau, 2016/2017 was Rémy Cointreau's 2020 CSR plan etc.), which will enable us to trace to perform a detailed analysis of our characterized by our increased efforts in our products and pursue an ambitious CO /GHG footprint (Scope 3) in order is based on 10 of the 17 United Nations 2 terms of CSR. In particular, ten priority environmental policy. to better optimize our water consumption 53 Sustainable Development Goals (among Sustainable Development Goals, and improve our effluent recycling the 17 identified by the United Nations) with a materiality analysis confirming Men and women clearly embody rates. The Group's CO2 emissions had been selected after analyzing their its relevance for our Group. corporate and social aspects for Rémy are mainly due to packaging (glass & materiality – in order to check their Cointreau. This year once again, cardboard) and freight. The first Life relevance for all our stakeholders our Group conducted a bi-annual Cycle Analyses were finalized to pave – and five CSR requirements were survey among its 1,861 employees the way for an ambitious eco-design incorporated into the qualitative targets worldwide, which was once again met project that should allow us, from and variable compensation of our by genuine interest (88% response 2019, to better manage our packaging management teams. rate). It is an accurate and precious tool designs based on their environmental for monitoring working conditions and performance. Our logistics teams have This past year 2017/2018 upholds the expectations of our teams across all performed a detailed modelling of the Responsible and, in a way, materializes this movement. communication and Training of teams Gender equality markets. For the first time this year, CO emissions generated by national consumption 2 It has embedded (sustainably!) these we also ordered a specific analysis and international freight, thereby CSR commitments in our Group's DNA. of the social impact of our activities producing an essential tool for their (Mount Gay) in Barbados, which was management and reduction. Terroirs, People and Time. Our CSR conducted by an independent firm. strategy is now based on (and perfectly Lastly, we must remain attentive to Optimal water Non-discrimination consistent with) each of the three and effluent Responsible in our teams Ethics are fundamental to any CSR external initiatives; over and above management sourcing policy around the world fundamental pillars of our Signature: policy, strengthening credibility and our membership of the United Nations taking care of our terroirs by implementing consistency, while ensuring efficiency Global Compact since 2003 (with sustainable agriculture, strengthening RESPONSIBLE LIFE in achieving our goals. An ethical process Rémy Cointreau currently chairing CONSUMPTION ON LAND the key role of men and women through AND PRODUCTION intended for all Group employees the GC Advanced France Club), the corporate (in-house) and social is now mandatory and available to all via the Group partnered with the French (external) aspects of our activities Reduced GHG Sustainable the Internet. Furthermore, for the past Eco-design emissions agriculture Business Climate Pledge last December, in the world, and preserving the quality of our products (transport) (upstream) two years, Rémy Cointreau has been launched by 89 French groups under of air (carbon footprint) and water – a member of SEDEX (Supplier Ethical the leadership of MEDEF. Furthermore, two resources that are essential to our Data Exchange), an international we recently joined forces with the Maisons. organization that encourages ethical signatory companies of Act4Nature, and responsible corporate practices a biodiversity initiative led by the across global supply chains. Nearly AFEP (French Association of Large Anti-corruption 90% of our suppliers are now members. Companies). CORPORATE SOCIAL RESPONSIBILITY

PROGRESS STRATEGY, RESPONSIBLE PLAYER, PROTECTION OF RESOURCES, BIODIVERSITY

_2020 NON-FINANCIAL TARGETS

INDICATORS SCOPE VALUES VALUES TARGETS 2016/2017 2017/2018 2019/2020

ODD8 Decent work and Responsible world 83 % 89 % 100 % economic growth/ purchasing: Promote sustained, percentage inclusive and of suppliers having sustainable economic joined SEDEX growth, full and productive employment and decent work for all

france 0 MWh 423 MWh 900 MWh ODD13 Take action to combat CO2 emissions climate change reduction: potential and its impacts to reduce direct and indirect energy consumption

ODD15 Sustainable land Sustainable france 37.2% 64.3% 100 % management/Protect, viticulture: AFC restore and promote cooperative surface sustainable use of areas committed to land ecosystems/ an environmental Sustainably manage approach (AHVE 1 forests/Preserve or the Sustainable biodiversity Viticulture standards) *independent director *independent Represented byFrançoisMahé Auditeurs &ConseilsAssociés Represented byPierreBidart Ernst &Young &Autres AUDITORSSTATUTORY Dubreuil Hériard by Dominique Chaired Responsibility Social Corporate Chaired byYves Guillemot* Nomination-Remuneration Chaired byJacques-ÉtiennedeT’Serclaes* Audit-Finance COMMITTEES Durand Gisèle Geuser* de Emmanuel Dyèvre* Guylaine Jacques- Jolivet*Olivier Pavlovsky* Bruno Guillemot* Yves Rollet* Florence Dubreuil Hériard Laure Dubreuil Hériard François Dubreuil Hériard Dominique Directors Dubreuil Hériard Marc Chairman AT 31 MARCH 2018 BOARD OFDIRECTORS É tienne de T’Serclaes* de tienne

Yves Guillemot

Bruno Pavlovsky Dominique Hériard Dubreuil

Jacques-É tienne de T’Serclaes

Guylaine Dyèvre

Gisèle Durand

Olivier Jolivet François Hériard Dubreuil

Florence Rollet Marc Hériard Dubreuil

Laure Hériard Dubreuil

Emmanuel de Geuser 57 R É MY COINTREAU _ ANNUAL REPORT FINANCE

_2017/2018: THIRD _NEW UPWARD YEAR OF THE GROUP'S REVISION STRATEGIC PLAN OF THE 2020 TARGETS

2017/2018 was the third year of implementing In June 2015, the Group had set an operating Furthermore, the Group maintains its the Group's new strategic vision: gradual margin target of between 18% and 20% ambition of achieving between 60% and 65% refocusing of the portfolio on its most high- to be achieved by March 2020, representing of its revenue through spirits with a sales end products (in particular exceeding an organic increase (at constant scope and price of more than $50 in the medium term. $50), improving targeted and enhanced exchange rates) of between 1.8 pts and 3.8 pts This year, the contribution of exceptional communication innovations and investments, over five years. spirits to revenue rose to 53% (versus 51% MY COINTREAU _ ANNUAL REPORT and aligning a suitable distribution network in 2016/2017) and to nearly 80% for spirits É R with the Group's accelerated move upmarket. These 2020 targets were already achieved with a sales price of more than $40. in 2016/2017 (+2.4 pts in two years). As such, 2017/2018 confirmed the acceleration We have thus decided to increase our target of a trend already observed over the last two for the three remaining years, with a view to years: organic growth of 9.2% in the Group increasing the margin by an additional 0.8 pt brands (versus +7.4% in 2016/2017), organic to 1.8 pts over the period (in organic terms). growth in current operating profit of 14.1% Strong growth in 2017/2018 (+1.3 pts) has (versus +13.8%) and organic growth in net prompted us to further raise these targets: profit excluding non-recurring items of 22.0% we now expect an organic improvement in 59 (versus +10.5%). the margin of between 2.4 and 3.0 points over the three-year period ending-March 2020 — This performance is due to the positive i.e. an expected increase of between 1.1 pts momentum of our most high-end exceptional and 1.7 pts over the next two years. spirits: Louis XIII and Rémy Martin XO within the Cognac division, as well as Metaxa, The Botanist and the whiskies in the Liqueurs & Spirits division.

_RÉMY COINTREAU SHARE PRICE MOVEMENTS (IN EUROS OVER 5 YEARS) Accordingly, the strong organic growth in the gross margin (+9.1%), combined with a controlled rise in structural costs (+5.2% in organic terms), have enabled a significant 140 PERFORMANCE OVER 5 YEARS: +28.4% increase in communication investments with the intention of improving our brands' awareness 120 111.4 and desirability (+8.6 in organic terms) while 95.58 100 generating strong organic growth in current 84.41 operating profit (+14.1%). 80 65.12 64.71 We can also mention the excellent generation 60.35 60 of operating cash during the year (+54%), thanks to the strong rise in EBITDA, the effective management of working capital LATEST PRICE / € 40 requirements, and reduced financial expenses 20 as a result of the efficient refinancing of some of the Group's debt in September 2016. 0 2013 2014 2015 2016 2017 2018 MARCH MARCH MARCH MARCH MARCH MARCH CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED INCOME STATEMENT

_AS OF 31 MARCH 2018, IN €M _2018 _2017 _AS OF 31 MARCH 2018, IN €M _2018 _2017

Brands and other intangible assets 509.4 526.1 Turnover 1,127.0 1,094.9 Property, plant and equipment 242.9 237.3 Cost of sales (366.3) (364.2) Investments in associates 20.2 22.4 Other financial assets 166.2 166.7 GROSS MARGIN 760.7 730.7 Deferred tax assets 19.7 30.4 Distribution costs (432.7) (416.7) Administrative expenses (91.7) (88.5) NON-CURRENT ASSETS 958.6 982.9 Other income from operations 0.4 0.6 Inventories 1,170.3 1,145.4 Trade and other receivables 209.8 224.0 Income tax receivables 4.9 6.6 CURRENT OPERATING PROFIT 236.8 226.1 Derivative financial instruments 10.0 3.3 Other operating income/(expense) (13.7) (4.8) Cash and cash equivalents 186.8 78.0 Assets held for sale 1.3 1.3 MY COINTREAU _ ANNUAL REPORT

OPERATING PROFIT 223.1 221.3 É R CURRENT ASSETS 1,583.1 1,458.6 Finance costs (14.4) (21.4) Other financial income (7.6) (10.5)

TOTAL ASSETS 2,541.6 2,441.5 FINANCIAL RESULT (22.0) (31.9) Share capital 80.4 79.5 Share premium 804.9 758.6 Treasury shares (20.5) (8.4) PROFIT BEFORE TAX 201.0 189.4 Consolidated reserves and profit for the year 518.4 445.9 61 Translation reserve 24 26.8 Income tax (53.5) (44.5) Share in profit of associates 0.5 (19.6)

EQUITY - ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY 1,407.1 1,302.5 PROFIT FROM CONTINUING OPERATIONS 148.1 125.2

1.1 1.5 Non-controlling interests Net profit / (loss) from discontinued operations _ 65.0

EQUITY 1,408.3 1,304.0 NET PROFIT FOR THE YEAR 148.1 190.2

Long-term financial debt 397.1 392.8 ATTRIBUTABLE TO: Provision for employee benefits 32.6 31.6 non-controlling interests (0.2) (0.0) Long-term provisions for liabilities and charges 6.9 6.6 owners of the parent company 148.2 190.3 Deferred tax liabilities 81.0 98.9

NET EARNINGS PER SHARE - FROM CONTINUING OPERATIONS NON-CURRENT LIABILITIES 517.7 529.9 basic 2.97 2.55 Short-term financial debt and accrued interest 72.5 75.3 diluted 2.83 2.42 Trade and other payables 517.3 503.6 Income tax payables 9.7 11.0 Short-term provisions for liabilities and charges 14.2 10.9 NET EARNINGS PER SHARE Derivative financial instruments 2.0 6.7 attributable to owners of the parent company 2.98 3.87 Liabilities held for sale _ _ diluted 2.83 3.68

CURRENT LIABILITIES 615.7 607.6 NUMBER OF SHARES USED FOR THE CALCULATION basic 49,789,269 49,123,523 diluted 52,434,796 51,782,976 TOTAL EQUITY AND LIABILITIES 2,541.6 2,441.5 COMMENTS AND OUTLOOK

At 31 March 2018, Rémy Cointreau The financial result was an expense achieved revenue of €1,127.0 million, of €22.0 million, down sharply by €9.9 with reported growth of 2.9%. In organic million over the year. This is due mainly terms (at constant scope and exchange to a reduction in the cost of gross rates), growth amounted to 7.2%, thanks financial debt, thanks to the partial to the remarkable performance of the refinancing of Group debt under very Group's brands (+9.2%). favorable terms in September 2016. Moreover, the foreign exchange result

Asia-Pacific recorded a very good (valuation of the hedging instrument MY COINTREAU _ ANNUAL REPORT year, with significant growth, thanks portfolio in accordance with IFRS), É to Greater China, Singapore, Japan highly volatile by nature, saw a positive R and the new Malaysian subsidiary. change of €2.5 million. The Americas have sustained their solid growth, driven by the United Tax costs were €53.5 million, helped States and Canada. The trend in by non-recurring profit of €10.5 million the Europe, Middle East & Africa (effect of the announced decrease in tax (EMEA) region is adversely affected rates in France and the United States by the deconsolidation of Passoã, but regarding deferred taxes, reimbursement benefits from a very strong momentum of the dividend contribution paid over 63 in Russia, Central Europe and the the last three years). United Kingdom. Adjusted for these items, the effective _OUTLOOK tax rate was 29.7%, down compared Current operating profit rose by 14.1% with the March 2017 rate (30.7%), Net debt was €282.8 million at 31 Due to its unique business model in organic terms, and the Group's thanks to a more favorable geographic March 2018, down €107.3 million over and its portfolio of exceptional spirits, current operating profitability mix. the year, thanks to the strong increase the Rémy Cointreau Group pursues reached 22.0% (up 1.3 points). The in operating cash flow (up 54%), which its long-term strategy of focusing on significant improvement in the Group's The share in profits of associates was more than offset the share buyback its high-end products, founded on the profitability is underpinned by a strong a gain of €0.5 million. program and the increase in dividend excellence of terroirs, the mastery of increase in the gross margin, supported payouts. savoir-faire and the importance of time. by the excellent performance of our Accordingly, net profit (Group share) exceptional spirits (> USD50), and was €148.2 million, down 22.1%. Accordingly, the net debt/EBITDA On the heels of a strong rise in a controlled rise in structure costs. It Earnings for the previous financial year ratio improved sharply to 1.48 at end- profitability in 2017/2018 (1.3 points also integrates a sharp improvement in included a gain of €65.0 million related March 2018, versus 1.78 at end-March in organic terms), the Rémy Cointreau our communication investments (+9.1% to the contribution made upon creating 2017. Group revises its target to increase for the Group's brands). After integrating the Passoã joint venture (in return the Current Operating Margin unfavorable foreign exchange rates for an asset recognized in the Group's Return on capital employed (ROCE) over the three-year period ending and scope of consolidation, current balance sheet). was 21.9% at 31 March 2018, up March 2020. For the financial years operating profit was up 4.7%. 0.7 point over the year (+2.5 points 2017/2018, 2018/2019, and 2019/2020, Excluding non-recurring items (€+3.1 in organic terms). Rémy Cointreau now anticipates a Operating profit amounted to €223.1 million), net profit (Group share) cumulative increase of 2.4-3.0 points million, after taking into account was €151.3 million, up 12.0% (+22.0% A dividend of €1.65 per share (compared with the target of +0.8- a non-recurring net expense of €13.7 in organic terms), and net margin rose (stable compared with last year) will 1.8 points set last year), at constant million, which comprises an impairment by 1.1 points to 13.4% (+1.7 points be submitted to the shareholders exchange rates and scope. of €11.8 million in the intangible in organic terms). Net earnings per for approval at the General Meeting assets of the Mount Gay brand, and share (excluding non-recurring items) of 24 July 2018, with the option to For 2018/2019, Rémy Cointreau expects an expense of €1.9 million, due primarily came to €3.04 (+10.6). choose between payment of the dividend another year of growth in its current to distribution network reorganization in cash or in shares, applicable to the operating profit, at constant scope costs. total payout. and exchange rates. rémy cointreau

21 boulevard haussmann 75009 paris

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www.remy-cointreau.com

The French version of this document is available on request or via the www.remy-cointreau.com website. All the regulatory information required by the AMF is available on the Company’s website www.remy-cointreau.com

Photo credits: Rémy Cointreau, Nathalie Baetens, Alexis Blondel, Alain Costa, Thomas Gogny, Adam Palander, Agitateurs Graphiques.

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