Integrated Annual Report FY20

Naturally

committed Carte Blanche to

Sanja

“I stage landscapes and people, then I transform them to create an imaginary universe.” Marušić

A Pernod Ricard employee and a partner, linked by a resource that is This year, Pernod Ricard essential to our products. For our eleventh artistic campaign, Sanja Marušić gave Carte Blanche shows how these collaborations unfold in their respective environments. to the DutchCroatian photographer Sanja Dressed in costumes that the photographer has made herself, they Marušić. are transformed into human sculptures set in natural landscapes. Her experimental approach to materials, colour, composition and choreography www.sanjamarusic.com creates dreamlike scenes that project an otherworldly aura. Adeline Loizeau, A shared EDV and Wine Supply Manager, Maison Martell commitment Grapes

Creating moments of conviviality out of nature and the resources it provides. That is the ethos we actively share with our partners across the entire value chain, as exemplified by Cork these portraits of employees and Pernod Ricard partners. Laurence Prulho, Director, La Perruge Vineyards & Distillery

Luis Torres, Paul McLaughlin, Conchi Garzón, Owner of Rancho Owner, Sales Director, La Garita Kelvin Cooperage MASILVA & Garzón Estibaliz Torrealba, Agave Sustainable Performance Manager, Oak Pernod Ricard Winemakers Finbarr Curran, Bond Supervisor, Irish Distillers Asbel Morales, Maestro del Ron Cubano

Stefania Elizalde, Liquids Coordinator, Virginie Bartholin, House of Tequila Alejandro Sugar Purchasing Manager, Bolivar, Pernod Ricard France Head Bartender, cane El Floridita

Sean Harrison, Gin Operations Manager, Iain Green*, Glass Chivas Brothers Grower, Corskie Farm Vincent Fanguiaire, Carl Mark*, Tommy Haughton, Fennel Director, Product Director, Beacon GAEC de Peyronnet Orange Keira Wright*, Development Commodities Maria Clettborn Manager, Distillery Persson*, peel The Absolut Barley Operations New Product Company Technician, Development Chivas Brothers Project Manager, Ardagh Group

* Due to the Covid-19 crisis, we were not able to go ahead with the photoshoots planned in Scotland and Sweden. However, we were keen to share Iain, Keira, Carl and Maria's thoughts on the materials that are at the heart of their collaboration. Chapter 01 Naturally Our Group Accelerating our transformation

Our history 16 Our decentralised organisation 18 Our Mindset, our purpose 20 Our brand portfolio 24 Our strategy ‘Transform & Accelerate’ 26 Two years ago we launched our strategic plan ‘Transform & Accelerate’ Our S&R roadmap 28 with a clear goal: transform our organisation and our ways of working to Our governance 34 Our value creation model 40 accelerate our growth. With a focus on mutualisation, prioritisation, Our key financial and nonfinancial figures 42 simplification,our Group is ever more agile and gaining in operational

Chapter 02 Our environment efficiency. These changes have proven to be essential in the face Seizing the opportunities of the crisis that came with the Covid-19 pandemic and even more of a new world so to prepare the Group’s future in this new world. It’s an ambitious Major trends in a new world 46 and challenging plan which will help build an ecosystem that is both Moments of conviviality revisited 48 responsible and profitable for all our stakeholders. Managing our risks 52

03 We are doing this thanks to you: investors, shareholders, employees, Chapter Our strategy customers, partners, all our stakeholders at the heart of ‘Transform Winning in our four battlegrounds & Accelerate’. We have faced this exceptional year together, and it is with you that we will shape the conviviality of tomorrow, which the Winning in key markets 56 world needs more than ever. Thank you for your support. Building passion brands 60 Funding the journey 66 04 Valuing people 72 Chapter Our results This is the story, your story, that we have set out to tell throughout Accelerating this year’s integrated annual report. our performance

Our brands 82 Our markets 106 Our performance indicators 114 Financial markets 118 committed MESSAGE FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER NATURALLY COMMITTED Message from Alexandre

This strategy is a crucial asset. In this uncertain period, From our employees to our directors, backed by our Ricard it has helped us to both gain precious time and investors, we have an unbeatable team to face the to concentrate on the essentials: building a smarter, challenges of the post-Covid world. sharper organisation based on solid fundamentals, underpinned by our culture and our ethos of sharing In fact, this crisis brought the focus back to what and conviviality. In 2015, we embraced a new resolutely is essential, showing the relevance of our vision consumer-centric approach, and in 2017 we reorganised ‘Créateurs de convivialité’. More than ever, the our segmentation by product category to adopt a pandemic has proved our vital need to be together, strategy structured around moments of consumption, or to share meaningful moments with our loved ones. ‘conviviality experiences’. These strategies have allowed Physical distancing (and not social distancing, an “The crisis has above us to successfully adapt to the constantly changing expression I utterly reject) is contrary to human nature. all revealed our three consumer landscape, a reality that the pandemic has Yet we must comply. For the time being at least, only accelerated. Our latest annual results demonstrated we must wear masks and respect safe physical strengths: the resilience the resilience of our business model and our agility in distancing in order to protect our communities. of our economic adapting quickly, confirming the merit of our approach Our goal is to work every day to create the conditions model, the relevance even in the midst of the storm. Digital acceleration, that allow the moments of conviviality so vital to marketing transformation, acquisition of "gem" brands, humanity to once again be possible in the most optimal of our strategy and the pooling of expertise: we will continue pursuing these way, beginning with the responsible consumption exceptional commitment strategies and more in the months and years to come. of our products. Equally, this crisis can be seen as a tremendous opportunity to invent innovative ways of our employees.” Yet these results are equally due to two other key factors: of interacting and it’s been good to see new moments the first is the outstanding dedication of our teams. of conviviality appear in the shape of virtual happy Over the past months, they have played a decisive role, hours or live stream events. Nonetheless, we will driven by their commitment to our values and their never lose sight of the fact that one day we will strong attachment to the company and to their craft. certainly be meeting again in our favourite bars and I was truly touched by the exceptional level of their restaurants to celebrate our reconnection in person. engagement – it is thanks to them that Pernod Ricard It’s what we do. It's our purpose. It's our nature. ALEXANDRE RICARD was able to react to unprecedented disruption, by Chairman & CEO of Pernod Ricard reinventing new ways of working and collaborating effectively together. This same involvement also spurred our employees around the world to put their energy into supporting the severely affected café, hotel and restaurant sector and our local communities: for example, Over the past several years, the Group has been growth opportunity, wherever it presents itself. by supplying millions of litres of pure alcohol and in a dynamic of far-reaching transformation to At a time when many companies have been producing hand sanitiser. increase our agility and operational efficiency, compelled to hastily adapt their organisation to face with the sole objective of building the Pernod Ricard the new context imposed by the Covid-19 crisis, The second crucial factor is the support of our investors. of the future, today. ‘Building for the long term’ is we were already two years into our major business Their belief in the success of our strategy to create the course we set 45 years ago, when Paul Ricard transformation strategy, ‘Transform & Accelerate’, long-term value is what allows us to build for the future and Jean Hémard, followed by Patrick Ricard, with its 21 concrete actions to accelerate growth and work with confidence, staying true to the course established the founding principle of creating – a process we have been undertaking relentlessly we have set, strengthened by the unity of purpose long-term value for all our stakeholders. This requires as illustrated by the creation this year demonstrated by our Board of Directors, whom our being the first to seize and capitalise on every of Pernod Ricard France. I wholeheartedly salute for their work during the crisis.

08 09 SHAPING TOMORROW'S CONVIVIALITY NATURALLY COMMITTED

Shaping Our employees’ entrepreneurship has been remarkable. The team sharpened its competitive edge after Covid-19 tomorrow’s hit by quickly pivoting to leverage opportunities in off-premises, e-commerce and cocktails to go. They demonstrated that same agility – as well as a sense conviviality of purpose and our convivial culture – by supporting local communities during these troubled times. From producing hand sanitiser to supporting out-of-work bartenders In a year when the Covid-19 pandemic has significantly impacted life and livelihoods worldwide, four key stakeholders share their and making a donation of more than $1 million to support perspectives on how Pernod Ricard is working with its different the Black Lives Matter movement, the team’s efforts partners to create a responsible and profitable ecosystem, supporting the resilience of the Group, its people and all our communities. are totally in line with the Group’s values and focus on sustainability and responsibility.

Leadership in a crisis is all about seeing the short-term MICHAEL CHEN need and finding solutions that also help build solidarity Bar Director and co- founder of LAIBA bottled and strengthen communities over the long term. cocktails, Shanghai I celebrate our employees’ willingness to embrace Michael has brought ideas from a newcomer, as well as their resilience As an advocate of sustainable bartending, I was honoured his passion for cocktails to the world stage. and commitment.” to take part in the launch of Pernod Ricard’s Sustainable Recognised as an award- winning mixologist (2018 Chivas Masters Bar Guidelines in China last year. In sharing training China champion), he is currently Director in sustainable and responsible bar practices, the Group of The Nest, The Cannery and Rye&Co in Shanghai is supporting the bartending community to prepare and co-founder of China’s ANN MUKHERJEE first handcrafted bottled Chairwoman for what is an important issue for our industry today cocktail brand LAIBA. & CEO of Pernod Ricard and more so for our society. North America

Ann believes businesses can overcome crises Cocktail bars have helped nurture a greater interest by leaning into their values, and Pernod Ricard and respect for the products we use and consume. North America – which she joined in December 2019 When the pandemic closed venues in China and across after a 30-year career with Kraft, PepsiCo and the globe, every initiative such as the ones Pernod Ricard SC Johnson – is proving her right. took to help local bars survive and get ready to reopen has been crucial. It also prompted new ideas like the delivery of bottled cocktails. And that's what LAIBA is about – bringing cocktails to you, at home or wherever you are, with the quality and consistency of a professional mixologist.”

10 11 SHAPING TOMORROW'S CONVIVIALITY NATURALLY COMMITTED

DEEPAK OHRI Founder and CEO of Lebua Hotels & Resorts Our initial aim with Educate All was to create a platform With a wealth of that would help democratise adult education. But with knowledge in creating luxury experiences, the platform launching during the pandemic, we believe Deepak has successfully launched unique Educate All and technology in general will play an even restaurants, bars and hotels within luxury greater role in our global economic recovery. settings in Thailand, New Zealand and India. Over the past DARREN WINTERFORD eight years, he has Our collaboration with Pernod Ricard to launch the e-learning Founder and CEO of EdApp: collaborated with Better Microlearning Pernod Ricard to create ‘Bar World of Tomorrow’ is a good example of the crucial exclusive Lebua blends Darren created EdApp, of the Group’s prestige role companies can play in helping us populate this platform brands, including an award-winning microlearning platform, St Hugo, Perrier-Jouët, with their expertise and promote it with their network. Absolut Elyx and Chivas. with the vision of disrupting traditional Launched in May, this free online training developed learning and training for companies and their with Trash Tiki and the Sustainable Restaurant Association employees throughout the world. This year, focuses on key learnings that the bartending community a joint initiative by EdApp and UNITAR (United can use to prepare for the future of the industry, promoting Nations Institute for Training and Research) sustainable and responsible practices.” saw the launch of Educate All, a global platform designed to democratise learning and increase global access to high- quality adult education.

In the new world, we need to reassure our customers of the value of coming together again. We need to show them that we care about their health and their well-being. Our ability to rebuild people’s trust and provide them with new, quality experiences will be critical to bringing them back to the places they once loved.

Our collaboration with Pernod Ricard and its world-class brands can help us do just that. Together we have been providing our guests with the quality of products and exciting experiences they look for. The Tower Club five-star hotel in Bangkok, the ‘world’s first vertical destination’ as I like to call it, recreates in one building the feeling of being in a luxury neighbourhood with the finest restaurants and distinctive bars such as ‘Flute, A Perrier-Jouët Bar’ and ‘Alfresco 64 - A Chivas Bar’.”

12 13 Accelerating our

Pernod Ricard can count on its fundamentals OUR – its history, its culture, its employees GROUP

and their expertise – to transform the Group P. 14 P. 43 in a sustainable way and pursue its vision

and purpose ‘Créateurs de convivialité’.

transformation

14 15 OUR GROUP NATURALLY COMMITTED

“IN ORDER TO KNOW WHERE 2 Our YOU'RE GOING, YOU NEED TO KNOW WHERE YOU COME FROM.”

history PATRICK RICARD

1975 2008 2018 1 Creation of Pernod Ricard 6 Acquisition of Vin & Sprit – Nomination of Pernod Ricard 1 from the merger of two owner of Absolut Vodka. as a member company French anise-based spirits of Global Compact Lead (2). 2010 companies: Pernod, founded 3 in 1805, and Ricard, created Adhesion to the United Adhesion to the New in 1932 by Paul Ricard. Nations CEO Water Mandate. Plastics Economy led by the 6 Ellen MacArthur Foundation. 1988 2011 Upgrade of Group’s credit 2 Acquisition of leading Irish 2019 rating to investment grade. whiskey producer Irish Launch of new 2030 Sustainability & Distillers – owner of Jameson. 7 Launch of Responsib’ALL Day, Responsibility roadmap 1993 Pernod Ricard’s annual social ‘Good Times from 3 Creation of joint venture engagement volunteer event a Good Place’. between Pernod Ricard and involving the Group’s entire the Cuban rum company, workforce. Acquisition of the super- 4 Cuba Ron to market and sell 2012 premium gin, Malfy. Havana Club. Signing of the Wine & Spirits 10 Acquisition of a majority 7 2001 Producers’ five commitments to stake in super-premium 4 Acquisition of Seagram, promote responsible drinking bourbon Rabbit Hole securing key positions 2015 Whiskey. 5 in whisky (Chivas Regal, Appointment of Alexandre The Glenlivet, Royal Salute) Ricard as Chairman & CEO. Acquisition of Castle Brands and cognac (Martell) (Jefferson's), expanding categories. 2016 our bourbon and whiskey 8 Acquisition of majority stake portfolio. in Black Forest Distillers 2003 GmbH – owner of the super- Signing of the United Nations Acquisition of Firestone premium gin, Monkey 47. Global Compact. & Robertson Distilling Co.,

owner of the super-premium 2005 Signing of the United Nations Texan whiskey TX. 5 Acquisition of Allied Domecq, Sustainable Development

doubling the Group’s size Goals. (2) Breaking ground for the to become the world’s #2 first single malt distillery wine & spirits company, with The Institut in continental China at 8 brands including Mumm and Océanographique Emeishan (Sichuan). Perrier-Jouët champagnes, Paul Ricard celebrates 10 Ballantine’s whisky, Kahlùa its 50th anniversary. 2020 and Malibu liqueurs and Announcement of our 2017 Beefeater gin. commitment to ban all 9 Acquisition of majority single-use plastic at the Membership of stake in high-end bourbon point of sale, by 2021. the International Alliance producer Smooth Ambler and in Del Maguey Single for Responsible Drinking 11 Inauguration of The Island, (1) Village, the #1 mezcal (formerly ICAP ). the Group’s new flagship in the United States. in Paris, which brings

together all its Parisian offices and 900 employees.

9 11

(1) International Center for Alcohol Policies. 16 (2) https://www.unglobalcompact.org/take-action/leadership/gc-lead 17 OUR GROUP NATURALLY COMMITTED Our 4 PERNOD RICARD must-win markets: HEADQUARTERS decentralised United States, China, India & Global Travel Retail Headquarters defines, coordinates and oversees the implementation of the overall company strategy organisation and ensures that affiliates comply with corporate policies. Its main responsibilities are: governance functions (strategy, mergers & acquisitions, finance, legal affairs, corporate communications, talent development, sustainability and responsibility, etc.),

SCOTLAND FINLAND dissemination of best practices and cross-functional

SWEDEN initiatives with high added value (digital marketing, luxury, innovation, etc.), and support functions (supply chain, IT, etc.). It oversees the Group's major ENGLAND transformation projects and ensures effective rollout across the organisation. CANADA POLAND

IRELAND GERMANY

FRANCE CZECH UNITED STATES REPUBLIC BRAND COMPANIES

ITALY • THE ABSOLUT COMPANY ARMENIA CHINA • CHIVAS BROTHERS GREECE • MARTELL MUMM PERRIER-JOUËT MEXICO SPAIN • IRISH DISTILLERS • PERNOD RICARD WINEMAKERS CUBA • HAVANA CLUB INTERNATIONAL INDIA + 160 countries in which our brands Based in the home country of each brand, the are distributed Brand Companies are responsible for developing the overall strategy for their respective brands, as well as activations that can be implemented Decentralisation is a founding at the local level by the Market Companies. They are also responsible for production BRAZIL principle of our organisation. and management of their industrial facilities. From the outset, Pernod Ricard has harnessed the potential of decentralisation to encourage MARKET COMPANIES

consumer-centric decision- SOUTH AFRICA 73 AUSTRALIA countries with our • PERNOD RICARD NORTH AMERICA making and address customer • PERNOD RICARD ASIA own salesforce • PERNOD RICARD EMEA & LATAM(1) ARGENTINA needs in a timely manner. • PERNOD RICARD GLOBAL TRAVEL RETAIL Decentralisation confers a • PERNOD SAS(2) • RICARD SAS(2) competitive advantage in an NEW ZEALAND uncertain environment, as we The Market Companies are each linked to a region know it today with the Covid-19 94 (Pernod Ricard North America, Pernod Ricard pandemic, rendering company production sites Asia or Pernod Ricard EMEA & LATAM(1)), operations more flexible, in 24 countries* with the exception of the Group’s two founding Market Companies in France, Pernod SAS and efficient and effective. With an * * Operating sites as (2) at 30 June 2020. Ricard SAS . The Market Companies’ role is to organisation based on respect , activate the Group’s international brand strategies for each affiliate’s operational 18 776 employees across the world: 65% are based at the local level and manage the local and autonomy and the overall regional brands in their portfolio. They are also in Latin America, Africa & Europe of which tasked with implementing the Group's strategy strategic principles defined at 12% are in France, 10% are in North America Group level, we can confidently and key policies, such as the implementation of and 25% are in Asia and the Pacific. Production site transformation projects launched in recent years. rely on the constant interaction between Headquarters, * As at 30 June 2020. Brand Company head office Brand Companies and Market Companies. Market Company head office

(1) Europe, Middle East, Africa and Latin America. (2) 1 July 2020, Pernod SAS and Ricard SAS merged into one single entity, Pernod Ricard France. 18 19 OUR GROUP NATURALLY COMMITTED Our Mindset, our purpose

At the heart of our organisation, our Our cardinal values employees share the same “Pernod Ricard Mindset for Growth”, resulting from Our three cardinal values make up our culture and connect a successful blend of a decentralised 3everyone who works at Pernod Ricard throughout the world economic model that places our consumers and across our brand portfolio: 95% of our employees say at its heart, and a culture built on our three they support the Group’s values (1). cardinal values: an entrepreneurial spirit, ENTREPRENEURIAL SPIRIT mutual trust and a strong sense of ethics. • Autonomy • Initiative-taking • Audacity • Appetite for risk

We embrace our entrepreneurial spirit by promoting creative thinking and empowering our teams to innovate. Part of our ‘TransfoHRm’ strategy is about defining and implementing a model of leadership which managers are evaluated on every year and which is founded on boldness, a conquering spirit, the ability to adapt and collaborate, as well as the desire to make Men & women the most of diversity, of Pernod Ricard: MUTUAL TRUST pride and commitment • Freedom to act • Open dialogue An attitude: conviviality, 18,776 employees engaged in fulfilling the Group’s vision • Right to make mistakes which defines our purpose 1of ‘Créateurs de convivialité’ and realising its leadership We work in a spirit of collaboration and mutual trust. There can ambition. At Pernod Ricard, we are: 4 be no entrepreneurial spirit without trust. Likewise, trust is Last but not least, conviviality is probably the most important • Proud to belong a prerequisite in all our relations with our partners. As part of our element of our Mindset. First of all, because it gives a meaning • Empowered to perform S&R roadmap (see pp. 28-29) we are working hand in hand with to our three cardinal values: there can be no mutual trust • Committed to care our stakeholders or initiative without conviviality, that is to say without simple, Pernod Ricard achieves record engagement rates as shown An economic model: – farmers, suppliers and local communities – to identify and map informal, non-hierarchical, direct and transparent relationships. once again in the 2019 independent opinion survey I Say (1). the social and environmental risks in our supply chains. Today, Secondly, because conviviality is our purpose and our métier. Since this survey was launched 10 years ago, the figures decentralisation close to 92% of Martell’s 1,200 partner winegrowers take an active Our corporate signature ‘Créateurs de convivialité’ is about related to our employees’ commitment, pride and support part in working to improve environmental practices. turning every social interaction into a genuine, friendly and 2By respecting the autonomy of our affiliates, we combine the for the Group’s values have been high. And this year’s responsible experience of sharing. Finally, in these uncertain power of a large Group and the agility of a start-up. The Group SENSE OF ETHICS exceptional mobilisation in the face of the Covid-19 crisis times in which we need to act faster and be ever more agile, manages large cross-functional projects and pools certain confirms these results. • Respect conviviality is a performance accelerator because it encourages expertise so that local subsidiaries can focus on the essential: • Transparency more collaborative working. 83% of our employees believe that growing their activity in their market by placing the consumer • Good stakeholder relations (1) • 94% of our employees are proud to be associated conviviality is what makes Pernod Ricard unique . at the centre. with Pernod Ricard Beyond the very nature of our business – the sale of alcohol which • 88% are engaged or highly engaged in the company • Placing decision-making closer to markets requires a great sense of responsibility – ethics is a central element • 74% say they have a good understanding of our • Fast response to consumer needs of our culture. Indeed, in the same way as there is no entrepreneurial ‘Transform & Accelerate’ strategy When lockdown measures were gradually put in place from early spirit without trust, there can be no trust without respect for others 2020, our decentralised model enabled us to quickly respond and transparency in relationships. Doing business with the same A purpose-driven business that is externally recognised as one to local needs. Our manufacturing sites produced 1 million requirement of integrity is crucial for us wherever we are in the world. (2) of the world’s most admired companies and a ‘best employer’ litres of hand sanitiser and provided a total of 4 million litres In September 2019, we successfully launched a mandatory MOOC(4) (3) in France . of pure alcohol, while also supporting the local community for all employees (92% completion rate so far) to ensure proper and hospitality sector (see pp.73-75). ownership of our new Code of Business Conduct which defines our responsibilities in ten key areas, from the fight against corruption and money laundering to the protection of personal data and our brands.

(1) I say survey, July 2019, Willis Towers Watson. (2) 680 World’s Most Admired Companies, Fortune magazine, 2020. (3) 500 Meilleurs Employeurs en France, Capital magazine, 2020. 20 (4) Massive Open Online Course. 21 remind meofthesmelltoastwhenIwas a child. notes oftoastedhazelnuts:scentsthatsometimes Once thewoodbecomesabarrelitwilldiffuse If yourespectwood,can’tworkanyother way. together, despitetheoceanbetweenus! authenticity thatbringsFinbarrandIcloser techniques. It’sthisrelentlessquestfor artisanal, basedontime-testedtraditional state-of-the-art machines,itessentiallyremains Our craftisquiteuniqueinthatwhileweuse of Americanoaks,therawmaterialourcasks. This broughtusclosertothelargeforests in Louisville,Kentucky:thelandofbourbon! to crosstheoceancreateaworkshop OA In 1991,mybrotherKevinandIdecided a cooperageonthebanksofKelvinin1963. in Scotland,whereourfamilyfounded the RiverKelvinthatflowsthroughGlasgow The nameofourcompanycomesfromroots, TRADITION. today herunsKelvinCooperage. Paul madethesamevoyage; to reachAmerica,Scotchbecamebourbon. When whiskycrossedtheAtlantic Kentucky, UnitedStates Owner ofKelvinCooperage Paul McLaughlin K

OAK OAK to forestrymanagementandcaskselection. sustainability isattheforefrontofourapproach where itcomesfrom.Togetherweareworking toensure His cooperagerespectswoodandcruciallytheforests my expectationsandknowshissubjectperfectly. in hischoicesandjudgementbecauseheunderstands which iswhyweworkwithPaul.Ihavecompletefaith of quality,thechoicebarrelmakeriscritical, oak treetoreachitsfullsize.Toachievethislevel of abarrelcanbe thesame around theworld. journey inotherdistilleriestomaturespirits times, andthentheyaremovedontocontinuetheir The casksinwhichweageourwhiskeyareusedthree an oakbarrelcanlastover100years! flavours. Whenmadewithcarefromthefinestwood, it all,highlightsofcaramel:goodbarrelslendsomany Notes ofvanillaandspice,oakhoney,over JOURNEY. the bestbarrelsgloballyforIrishDistillers. homeland ofFinbarr,whoworksontheteamthatsources Ireland, anothernativelandofwhiskey,isalsothe Cork, Ireland Bond Supervisor,IrishDistillers Finbarr Curran

In this circular economy, the life In thiscirculareconomy,thelife OAK as the time required for an as thetimerequiredforan OUR GROUP NATURALLY COMMITTED Our brand portfolio

Pernod Ricard has a unique portfolio of premium brands encompassing every major category of wine and spirits. As one of the most comprehensive portfolios in the market, it provides the Group with a unique competitive advantage. Constantly evolving thanks to a dynamic management policy House driven by brand acquisitions or disposals, Pernod Ricard's portfolio allows it to always be in line with new trends while investing in the most promising of Brands segments and brands.

OUR HOUSE OF BRANDS Specialty Brands meet a growing demand for smaller-scale 'craft' products. Authentic, these brands offer a unique To ensure an optimal allocation of resources for key brands and comprehensive value proposition that responds to new across all our markets, the Group uses its brand planning tool – consumer trends and expectations; the House of Brands – which encompasses five categories of brands: Strategic Local Brands are strongly rooted brands in a limited number of specific markets. They benefit from very strong Strategic International Brands Strategic International Brands are the heavy weights local consumer value and loyalty, irreplaceable for some of our portfolio, as they account for the highest share of global local occasions. This part of our portfolio is often a booster business and potential. They are our worldwide top priorities of our route-to-market. and the reference brands in each category; PRIORITISING OUR INVESTMENTS Prestige Brands, our portfolio of highly desirable global luxury brands, target our most affluent consumers in leading Using the House of Brands and in-depth consumer insight, and iconic outlets all over the world. It is the industry’s most our local Market Companies identify the potential of each comprehensive portfolio, spanning all major luxury categories brand in each market and determine their strategy based and moments of conviviality; on three types of investment priorities:

Strategic Wines cover a wide range of origins and tastes. Stars – our leading brands sold internationally or locally – Shared over a meal or on other occasions, wine is more benefit from significant investment to enable them to continue PrestigeSpecialty Brands* Strategic Wines and more appreciated around the world by a growing variety leading the way in different categories and actively contribute of consumers; to the Group’s growth;

Growth Relays also benefit from increased resources as they serve to capture different moments of conviviality in highly attractive categories and, at the same time, offer a promising growth outlook in the medium and long term; HOUSE OF BRANDS

Transform & Accelerate Bastions, which are brands that are mature or in very Strategic International Brands competitive sales categories, receive enough investment

STARS GROWTH BASTIONS to ensure that we protect their market share, sales and profits. RELAYS

The House of Brands affords us the agility to make investment Strategic Local Brands Prestige Specialty Brands Strategic Wines choices that strike the right balance between short-, medium- and long-term goals, while continuing to build brands that win throughout our must-win geographies.

Strategic Local Brands * non-exhaustive list

STARS GROWTH BASTIONS RELAYS

24 25 OUR GROUP NATURALLY COMMITTED

In 2018, we launched a new strategic roadmap, ‘Transform & Accelerate’ Our strategy with a clear objective: to transform our organisation and ways of working together in order to accelerate our growth. Mutualising, prioritising, simplifying, are some of the guiding principles which have already helped ‘Transform the Group to gain in agility and operational efficiency, qualities which have proved to be essential not only during the most acute moment of the & Accelerate’ pandemic but even more so in preparing for our future.

OUR CONSUMERS ARE AT THE HEART ‘TRANSFORM & ACCELERATE’ TO WIN OF OUR STRATEGY IN OUR BATTLEGROUNDS

Today’s consumer landscape is constantly changing, shaped by is transforming consumer behaviour, which is disrupting traditional In order to meet our consumers' expectations, we’ve identified Consisting of 21 concrete actions, this plan aims to transform a number of forces. A new ‘connected’ consumer is emerging, relationships between businesses and customers, and requires four battlegrounds: winning in our key markets: US, China, our company in order to ‘Prepare the Future’ and accelerate who is thirsty for a sense of purpose and new experiences. the invention of new types of engagement. India and Global Travel Retail; building ‘passion brands’; funding our growth by getting ‘More from the Core’. There is greater awareness of what’s happening around us our journey by pursuing sustainable and diversified growth; leading to a focus on all things local and environmental These changes, which have accelerated with the Covid-19 and valuing people, making our employees and communities The success of this strategic plan is based on an economic concerns. crisis, have a direct impact on our business: our proximity the drivers and beneficiaries of this acceleration. model which places the consumer at its centre and which is to consumers is essential to ensure our decisions built around four Essentials based on our historical strengths In newer markets, rapid economic development is dramatically reflect their aspirations. Equally, the rapid and four Accelerators aimed at responding to changing trends expanding the base of middle-class and affluent consumers, pace of change requires speed and in our markets. changing consumption patterns. All over the world, technology agility in our decision-making.

OPERATIONAL EXCELLENCE PORTFOLIO MANAGEMENT Reduce complexity & Position one of our brands at each and every shared foster efficiency moment of celebration, rooted in local specificities

TALENT DEVELOPMENT INNOVATION Recruit, retain & develop Create brand experiences through diverse teams new products and services

SUSTAINABILITY & RESPONSIBILITY (S&R) PREMIUMISATION & LUXURY Lead the industry in Premiumise the portfolio & strengthen our position 4 ESSENTIALS 4 ESSENTIALS Sustainability & Responsibility as the leader in luxury spirits

ROUTETOMARKET / CONSUMER 4 ACCELERATORS Capitalise on our many different distribution channels in DIGITAL ACCELERATION order to reach all of our customers and consumers Accelerate the integration of digital into everything we do

26 27 OUR GROUP NATURALLY COMMITTED Our S&R roadmap OUR FOUR PILLARS

One year into its 2030 VALUING PEOPLE CIRCULAR MAKING Sustainability and Responsibility As ‘Creators of conviviality’, our purpose is about sharing, The world is made of finite resources that are under huge (S&R) roadmap - ‘Good Times warmth, care and respect for people everywhere. We strive pressure. By contributing to ‘Responsible Consumption from a Good Place’, Pernod to provide ‘Decent Work & Economic Growth’ (SDG 8) & Production’ (SDG 12) and protecting ‘Life Below Water’ Ricard is progressing strongly. and to champion ‘Gender Equality’ (SDG 5) throughout (SDG 14) our goal is to help preserve natural resources. our business. To create shared value for all our stakeholders, In moving towards a more circular business model A strategy that is proving we are continuously reinforcing our commitments to – from the packaging we use to the promotional items an important lever to accelerate human rights, diversity and inclusion across our leadership, we produce to the way we distribute our products transformation and highly health and safety, responsible procurement, training and how they are ultimately recycled – we are actively and sustainable bartending. striving to minimise our carbon footprint and protect Pernod Ricard’s S&R roadmap connects the Group’s history as relevant to our consumer our natural resources. a sustainable and responsible company with its goal to create concerns in the new context long-term value for all stakeholders: shareholders, employees, of Covid-19 as we move consumers, clients, suppliers, international organisations, towards a greener and more citizens… Integrated into all Pernod Ricard activities and inclusive economy. addressing the business from grain to glass, it’s a key business driver and central to the ‘Transform & Accelerate’ strategic plan.

Responding to major environmental and social shifts, the S&R strategy allows the Group to focus corporate priorities on what matters most to consumers. By boosting responsible innovation and building purposeful brands, Pernod Ricard is bringing to life its vision of a more convivial world without excess.

A collaborative strategy. Developed for example all sites in France are now through extensive consultation and powered by 100% renewable electricity collaboration between internal teams, SHAPING A MORE and single-use plastic point-of-sale external partners and experts, the S&R SUSTAINABLE AND items will be eliminated by 2021 – four roadmap was launched in 2019 with years ahead of schedule. a focus on four key pillars: Nurturing RESPONSIBLE STYLE Terroir, Valuing People, Circular Making, Guiding short and long-term Responsible Hosting. Each pillar has OF CONVIVIALITY priorities. A structured roadmap defined commitments, actions and gives clear future direction as well as measurable targets to monitor progress. strengthening business resilience in Projects are driven by multidisciplinary the face of immediate challenges. It teams involving people across our value has empowered the Group to navigate NURTURING TERROIR RESPONSIBLE HOSTING chain, from employees to farmers, partners and suppliers. through the Covid-19 crisis, which significantly impacted the We believe that we have an important part to play drinks and hospitality sectors, while continuing to support As each and every Pernod Ricard product takes its character from the land where it was grown, we have in combating alcohol misuse and supporting ‘Health and Commitments and progress. S&R commitments address employees and business partners. made it a priority to combat ‘Climate Change’ (SDG 13) Well-being’ (SDG 3), through our responsible drinking consumer needs and material risks facing the world and and protect ‘Life on Land’ (SDG 15). To ensure we maintain programmes and campaigns, and our commitment the Group today, such as climate change, human rights and ‘Good Times from a Good Place’ is a long-term strategy that healthy and resilient ecosystems that allow us to continue to responsible marketing and consumer information. waste. By directly supporting the United Nations Sustainable is right, relevant and ready for the future: to shape a more producing quality products for the generations to To that end, we will continue building ‘Partnerships terroir for Goals’ (SDG 17) at a local and global level. Development Goals (SDGs), Pernod Ricard is aligning itself with sustainable and responsible style of conviviality. come, we are committed to nurturing every and its biodiversity. To address our agricultural footprint the collective effort to build sustainable prosperity by 2030. across the 250,000 hectares from which we source Already the Group has made strong progress in several areas, our ingredients, we are developing sustainable and regenerative agricultural practices to be implemented across our business.

28 29 OUR GROUP NATURALLY COMMITTED

CIRCULAR MAKING One year on from the launch of our Progress 2030 S&R roadmap, four employees representing our four S&R pillars OUR LEADING COMMITMENTS understanding of what’s involved, where we need to focus and analyse and eight leading commitments tell us • Ban all single-use plastic POS by 2021, and have 100% recyclable, reusable, the technologies and tools that will so far what we have achieved so far. compostable or biobased packaging help us reach our circularity vision. (2025); develop 5 pilot projects based It’s also important to collaborate across on the circular economy model for the distribution of our products (2030) our supply chain, with local communities • 100% water balanced in high-risk as well as with other industrial partners NURTURING TERROIR countries and 50% reduction in carbon so together we embrace circular thinking intensity (2030) aligned with the Science from product design, manufacturing, OUR LEADING COMMITMENTS a vital starting point for identifying Based Targets initiative to limit global and to the end of life of products. warming to 1.5°C • 100% of our affiliates will be engaged pressing sustainability issues Our new sustainable packaging and in a strategic biodiversity project (2030) and potential biodiversity projects point-of-sale guidelines have spurred • Deploy pilot programmes in our 8 wine that we are defining with farmers us to phase out all single use plastic regions (2025)(1) in regenerative and local partners. CARINE CHRISTOPHE point-of-sale by 2021 – four years agriculture and share this knowledge ahead of schedule – as announced further with 5,000 farmers (2030) Group Environmental A key strength is being able to share Manager A circularity mindset is the key principle in June 2020. knowledge across our different terroirs. at the heart of our strategy on water, Initiatives like the relaunch of our Wine carbon and packaging to avoid waste Hub network on viticulture and wine during the life of our products. making ensure that we can replicate At Pernod Ricard, all our products come regenerative practices elsewhere: To reach our goals, we’ve set out from nature. Our goal to move towards like planting a variety of nutrient-rich to ensure all our teams have a clear regenerative agriculture, which protects crops between vines in Cognac the land and the living, represents an which is optimising the nitrogen cycle, ambitious transformation. Working with improving soil quality, sequestering JEANFRANÇOIS ROUCOU procurement teams in all our affiliates, carbon and creating an important Group Director of we’ve launched a full mapping of supply ecosystem within the vineyard. Sustainable Performance chains for core ingredients from grain, grapes to agave and sugar cane. It’s RESPONSIBLE HOSTING

OUR LEADING COMMITMENTS With the support of IARD(2), we have • 100% of our affiliates will have at least announced a new set of actions VALUING PEOPLE one programme in partnership and at aimed at accelerating efforts toward scale fighting alcohol misuse (2030) eliminating underage drinking, including OUR LEADING COMMITMENTS of working. Pernod Ricard University LANI MONTOYA • Expand the Responsible Party the introduction of an age-restriction programme to reach at least 1 million created a library of online training Director Global Talent symbol on all our brand products, • Ensure equal pay (2022), a gender young adults (2030) balanced top management (2030) resources enabling employees to build Management, Diversity including alcohol-free extensions, as and future-fit training for our employees up their skills. For our bartending & Inclusion well as developing new self-regulatory at least every 3 years so that they can community, we developed in partnership models to ensure only adults are able acquire new skills (2030) with Trash Tiki ‘an anti-waste bartending to purchase our brands on e-commerce • Train 10,000 bartenders on techniques duo’, and the Sustainable Restaurant platforms. for a more sustainable bar world (2030) Association, a free sustainability and Translating our commitment to responsibility hospitality e-learning responsible drinking into concrete Over 150 global and local programmes module, which was uploaded on the actions has been an important focus all involve close collaboration with United Nations' Educate All platform in a year where confinement has industry, governmental and local to promote the Bar World of Tomorrow. heightened societal concerns about partners. Our flagship programme As part of creating the best work alcohol abuse. Responsible Party had come to a environment for our employees, we’ve Diversity and inclusion actions have helped provisional halt during the lockdown rolled out an updated Group Health and us close the gap (currently 2.3%) towards We launched a MOOC on alcohol and as all student parties were cancelled, CAMILLE DE POTTER Safety policy, ‘Taking care of each other’, equal pay across our business, by 2022. responsible drinking that embeds our but we were quick to launch a digital Head of Strategy based on the key priorities of culture, Leveraging the awareness created by new Global Responsible Drinking Policy campaign #SharingGoodVibes & Prevention leadership and performance. the global Better Balance initiative over so all our employees understand the key to promote healthy lifestyle and the last 3 years, we are now moving on facts about alcohol and our expectations responsible drinking. Already underway, digital transformation to the next stage to create an ever more of them as ambassadors. This has been has been accelerated during the Covid-19 inclusive organisation so that diversity adapted and shared on the United crisis as we adopted new tools and ways becomes a real mindset, fully aligned Nations’ Educate All learning platform. with our value of conviviality.

(1) Argentina, Australia, California (USA), Champagne (France), China, Cognac (France), Spain, New Zealand. 30 (2) International Alliance for Responsible Drinking. 31 GRAPESon ourheritage.Cognacistimeless,wearesimplypassing. business, butaboveallaredrivenbythedesiretopass cognacs. Wefeelaresponsibilitytocontinuethefamily We’re veryproudthatourgrapesarepartofMartell and blendedtoachieveanexceptionalspirit:cognac. grapes tomakewhitewines,whicharethendistilled process. Oursharedobjectiveistoproducehigh-quality on themutualcaretakenforvinesanddistillation by ourside–apersonalandprofessionalrelationshipbased For allfivegenerations,theMaisonMartellhasbeen its success. grandfather, eachwithourspecificrolestoensure the vineyardanddistilleryfoundedbyourgreat-great- Today mybrothersandIarethefifthgenerationtorun HERITAGE. have returnedfromalongjourney’. Joachim duBellay:‘Happyaretheywho,likeUlysses, was gladtocomehome,asinthewordsofFrenchpoet After leavingtheregionofCognacforatime,Laurence Cognac, France Director, LaPerrugeVineyards&Distillery Laurence Prulho

GRAPES GRAPES the longevityandsustainabilityofCognac the market.Togetherwecollaboratecloselytoensure our techniquesandexpertiseoftheland and thewineries,whereweshareourexperiences, in theday-to-dayworkwithgrapesvineyards is basedontrustandtransparency,reflected As withourother1,200partners,relationship Laurence’s familythatdatebackto1892. In ourarchiveswehaverecordsoflinkswith which weblendandagetomakeMartellcognacs. and distillersoftheregiontoselectbestcognacs, Martell hasforgedpartnershipswiththewinegrowers Since itscreationmorethanthreecenturiesago, TRUST. by theregion’slimpidandever-changinglight. This iswhereAdelinegrewup,enchanted lent itsnametoaspiritrenownedaroundtheworld. The smalltownofCognacinSouthwestFrance Cognac, France EDV &WineSupplyManager,MaisonMartell Adeline Loizeau GRAPESis anenriching,supportivehumanconnection. But whatwehavesharedmostofalloverthe years and theexcellenceofspirititgivesriseto. terroir

OUR GROUP NATURALLY COMMITTED Our Board of Directors Gilles Samyn(1) Independent The Board of Directors oversees the governance in an ethical and Alexandre Ricard Director Audit Committee transparent manner while ensuring that the business is managed Chairman & Chief Member Executive Officer, in the best interests of its stakeholders. The Board members, who bring Strategic Committee César Giron together complementary skills and experience, ensure that the Group Chairman Director Strategic pursues its business strategy with the primary goal of increasing Committee Member, Nominations, the value of the Group. Governance Maria Jesus & CSR Committee Carrasco Lopez Member Employee Director ORGANISATION of the sanitary crisis. The average length of the meetings was approximately four hours. Their main activities were to: In accordance with the AFEP-MEDEF Code of Corporate — approve the half-year and annual financial statements; Governance for listed companies, Pernod Ricard respects — review the budget; the independence criteria established in the Code. The Board — oversee the preparations for the Annual Shareholders’

is comprised of 14 members, eight of whom are independent Meeting; Kory Sorenson and two of whom represent Group employees. Following — review and approve the work of the four specialised Independent Director the recommendation of the Nominations, Governance and committees; Audit Committee Member, Philippe Petitcolin Compensation Committee CSR Committee, as of 23 January 2019, the Board appointed — review presentations of the activities of the functional Chairwoman a Lead Independent Director. departments and affiliates; Independent Director Audit Committee Member, Esther Berrozpe The Internal Regulations stipulate that the Board members must — review its own functioning and that of its committees; Compensation Committee Member Galindo meet at least six times per year for meetings that are presided — manage the sanitary crisis. Independent Director by the Chairman of the Board, who is also Pernod Ricard’s Chief Executive Officer. The Chairman reports on the Board’s COMMITTEES OF THE BOARD progress at the Annual Shareholders’ Meeting. The Chairman OF DIRECTORS is tasked with ensuring that the Group’s bodies run smoothly, which includes providing the Directors with the information The Board of Directors is assisted in its work by four specialised and the resources they need to fulfil their duties. The role of committees which provide advice and recommendations for Wolfgang Colberg the Lead Independent Director is notably to convene and chair the Board’s discussions. The Strategic Committee – created Independent Director Audit Committee Chairman, the meetings of the Board of Directors in the absence and presided by Alexandre Ricard since 2015 – reviews key Strategic Committee Member, of the Chairman and CEO, conduct the annual assessment subjects for the Group, issues recommendations on acquisitions, Nominations, Governance of the functioning of the Board of Directors on the basis of divestitures and partnership projects and studies all strategic & CSR Committee Member Patricia Barbizet individual interviews with each Director, prevent the occurrence matters of interest to the Group. The Audit Committee notably Veronica Vargas Lead Independent Director of conflict of interest situations, ensure compliance with the rules reviews the half-year and annual draft financial statements, Nominations, Governance & Director of the AFEP-MEDEF Code and the Board’s Internal Rules and monitors the Group’s cash flow and debt situation and assesses CSR Committee Chairwoman Compensation Committee Member Anne Lange Regulations, convene and chair the Executive Session, review the Group’s risk management and internal control systems. Independent Director shareholders' requests for corporate governance and ensure The Nominations, Governance & CSR Committee notably Strategic Committee that they are answered and meet with the Company’s investors. proposes new Directors and reviews the composition and Member In order to further root its work in the Group’s daily business operation of the Board, CSR issues and the Group’s performance operations, the Board holds one meeting per year in an and talent-management policy. Lastly, the Compensation operating affiliate. Committee notably defines the remuneration policy for the Group’s Executive Directors, proposes a general long-term FY20 ACTIVITY remuneration policy and implements an annual plan for the allocation of options and performance shares. Over the course of FY20, the Board met nine times, with an attendance rate of 100%. An exceptional Board meeting and Stéphane Emery several follow-up meetings were held this year in the context Employee Director Compensation Committee Member Ian Gallienne Independent Director Paul-Charles Ricard 66.7% 42.8% 41.6% 100% Strategic Committee Member, Director Compensation Permanent Representative Independent Directors Non-French Directors Female Directors Attendance rate Committee Member of Société Paul Ricard

(1) Mr. Gilles Samyn has informed the Board of Directors of his decision to resign from his position 34 as Independent Director as of the Shareholders’ Meeting on 27 November 2020. 35 OUR GROUP NATURALLY COMMITTED

Executive Our Executive Committee Board & Executive members (as of 30 June 2020) Committee Christian Porta Managing Director, Business Development and Digital Transformation

Amanda Hamilton- Hélène de Tissot Stanley EVP, Finance, Group General IT & Operations Counsel & Chief Executive Board Compliance Officer

& Executive Alexandre Ricard Chairman & Chief Committee Executive Officer, Executive Director (as of 30 June 2020) Ann Mukherjee

Christian Porta Chairwoman & CEO of Pernod Ricard Managing Director, North America Business Development and Digital Gilles Bogaert Philippe Guettat Transformation Chairman & CEO Chairman & CEO of Pernod Ricard of Pernod Ricard Asia Europe, Middle East, Hélène de Tissot Africa and Latin America EVP, Finance, IT & Operations Cédric Ramat EVP, Human Resources, Amanda Hamilton- Sustainability & Responsibility Stanley Group General Counsel & Chief Alexandre Ricard Compliance Officer Chairman & Chief Executive Officer, Executive Director Jean-Christophe César Giron Cédric Ramat Coutures Chairman & CEO EVP, Human Resources, Chairman & CEO of Martell Mumm Sustainability of Chivas Brothers Perrier-Jouët & Responsibility Mohit Lal Chairman & CEO of Pernod Ricard The Group’s general management is led by the Chairman & CEO, once per month, either at Headquarters or at an affiliate site. Global Travel Retail who is assisted by the Executive Committee. Under his authority, Under the direction of the Chairman & CEO, the Committee the Executive Committee implements the Group’s main policies. helps to define the Group’s strategy and plays an essential The Executive Board is the permanent body responsible coordinating role between Headquarters and the affiliates, and for coordinating and leading the Group, in cooperation with amongst the affiliates themselves (Brand Companies and Market the Chairman & CEO, whom it assists with his responsibilities. Companies). The Committee is responsible for overseeing the The Executive Board reviews all decisions related to Group affairs Group’s business activities and ensuring that its main policies and submits various matters to the Board of Directors when approval are applied. More specifically, the Committee analyses the Anna Malmhake is required. It steers and coordinates the major transformation performance of the Group’s business in relation to its market Chairwoman & CEO of The Absolut projects launched recently, organises the work of the Executive plan (budget and strategic plan); actively participates in setting Company(2) Bryan Fry Committee and defines objectives for its members, in particular financial and operational objectives (financial results, debt and Chairman & CEO by signing off the strategic plan, the budget and regular business qualitative objectives); periodically reviews the brand and market of Pernod Ricard reviews. The Executive Committee, the Group’s managing body, strategies; analyses performance and evaluates changes in the Winemakers Philippe Coutin Conor McQuaid has 15 members – the five members of the Executive Board as well organisation as needed; and approves and ensures compliance Chairman of Ricard SAS Chairman & CEO and Pernod SAS(1) of Irish Distillers as the Managing Directors of the main Group affiliates. They meet with the Group’s main policies. Group

(1) Pernod Ricard France as of 1 July 2020. 36 (2) Following her departure from the Group on 4 September 2020, Anna Malmhake was replaced by Stéphanie Durroux, previously CEO of Pernod Ricard Sweden/Northern Europe. 37 ORANGEHe’ll findwhatwe’relookingfor. – forplantsthatarelittleknownoroutoftheordinary. hundred percentwhenwe’relookingforsomethingspecial understanding ourneeds.Weknowwecantrusthimone He knowseverytypeofbotanicalinsideandout,aswell as and hasdevelopedacloserelationshipwiththem. is invaluable:heindirectcontactwithcitrusgrowers and Tommyjoinedthisnewventure.Tommy’sexpertise supplier, createdhisowncompany,wesupportedhim, When Michael,whoworkedforawell-knownbotanicals through ourmasterdistilleratthetime. and transmission.Ifirstmethisfather,Michael, Our collaborationwithTommyisahistoryoffamily PROXIMITY. in 1994,givinghimtwogoodreasonstostay. his futurewifeandjoinedPlymouthGin while servingintheRoyalNavy,Seanmet Stationed inPlymouththeearly1990s Plymouth, UnitedKingdom Gin OperationsManager,ChivasBrothers Sean Harrison PEEL

ORANGE PEEL ORANGE PEEL ORANGEat ourwarehouse,it’sfilledwiththescentofmarmalade. aroma thisreleases,etc.Andwhenthedriedpeelsarrive of thekniferemovingitinonelongspiral,bitter It’s anamazingexperience:thefeelofrind,blade the orangestherearestilllargelypeeledbyhand. method forprocessingthepeel.Despitenewtechnology, the citrusgrowers,whohaveauniquetraditional Two orthreetimesayear,IgotoSpainvisit the globe,buying,importinganddistributingbotanicals. Our originsareAnglo-Irish,buttodaywetradeallover and myfatherIhavealwaysworkedhandinhand. tradition. We’vebeeninthisbusinessfordecades, Sean isrightonthenailabouttransmissionandfamily SCENT. internationally. in 2013toassisthisfatherdevelopingthebusiness in southeastEngland,TommycametoBeaconCommodities After workingforeightyearsintheagriculturalsector Suffolk, UnitedKingdom Director, BeaconCommodities Tommy Haughton PEEL OUR GROUP NATURALLY COMMITTED

At Pernod Ricard, we believe that real value can only be created over time if it is beneficial for all of our stakeholders – starting with our consumers Our value who are at the heart of our strategy. Our goal is to continue accelerating our Group’s transformation; we aspire to not only being ‘Créateurs de convivialité’, creation model but creators of economic, social and environmental value.

Our resources Our consumer-centric Our impacts Our medium- and long-term strategy (see pp. 26-27) ambitions (see pp. 28-29)

HUMAN CAPITAL • 18,776 employees 44% of newly Our employees around the world are across close to 80 recruited PEOPLE affiliates employees (d) • 94% • Record subscription at the heart of everything we do. 5 consumer of employees rate for 2019 Their mindset and the diversity of their • 88% outside • 1.7% of Group Make our are proud to work first-ever Group Capitalise on our diverse teams Fight alcohol misuse (b) expertise and profiles gives the Group of France payroll invested trends impacting employees grow for Pernod Ricard employee By 2030, our top management (g) By 2030, all affiliates will have at in training (d) shareholding plan: greater agility and adaptability • Women make our strategy 41.5% team will be gender-balanced. least one partnership programme in an increasingly volatile context. up 37% of global implemented at scale and evaluated. workforce (a) and Share knowledge and learning By 2030, 100% of employees By 2030, Pernod Ricard will expand • 38 strategic brands Consumer will have received future-fit training its 'Responsible Party' programme A quest for in our global portfolio, Understanding & A new at least every 3 years. globally to reach at least 1 million INTELLECTUAL CAPITAL the House of Brands Targeting, Shoppers, meaning •Prestige, LeCercle and 6 Market geopolitical young adults. Innovation is part of our DNA. E-Shoppers & and new Portfolio: 12% of Companies context (d) • 16 Brands in the Travellers, Mix experiences our sales monitor their By 2030, we will train 10,000 Our Brand Companies and Market Impact Top 100 Optimisation) Create new products • Innovation brands and our bartenders on the bar world Develop strong and inclusive brands Companies continuously work to ensure represents 7% competitors as • 4 Marketing Centres • Implementation and services of our sales(d) of tomorrow. By 2023, we will align all commercial that we respond to our customers’ and well as campaigns of Excellence to of global digital • + 1,000 employees and activations communications with ethical The emergence Digitalisation The need for consumers’ desires and expectations. sharpen consumer tools that allow us to from 6 Brand via one single By 2030, we will partner with advertising rules. insight (Cultural adapt our marketing of new middle of usages and agility and Companies monitoring tool Foresight, Equity, strategies in real-time classes work responsiveness 5,000 farmers to share our acquired knowledge on regenerative agriculture.

• Share Capital Individual allocation: Société Shareholders 4 ESSENTIAL • The Group • Acceleration FINANCIAL CAPITAL (i) S Paul Ricard & (4.1%) has gained or of its digital Our investors and shareholders Others (16.4%), maintained value transformation in • Net debt/EBITDA: Create long-term GBL (7.5%), Board/ share in its top 10 FY20 provide the financial resources 3.2x (a) Management/ value markets • Dividend proposed and stability needed for the Group Employees/ (a) of EUR 2.66 . PROFIT to undertake its activities. Treasury/Shares • Market (2.5%), Institutional capitalisation: Investors (69.5%), EUR 41 billion (a) Embed dynamic growth and Delivering operating leverage deliver operating leverage Our FY19-21 plan projects a strong Our FY19-21 plan projects top line financial performance, with an • 93.3% of our especially in • 94 production sites • EUR 5.1 billion (a) in growth of +4 to +7% underpinned expansion of operating margins INDUSTRIAL CAPITAL (a) sites are ISO agriculture through in 24 countries maturing inventory (a) by leveraging our unique premium by approximately 50 to 60 BPS Producing high- 14001-certified the production and We continuously strive to improve • 99% of our purchase of raw • Natural • EUR 364 million of portfolio and winning in our four per year. our manufacturing and distribution quality products vineyards are and processed resources from CAPEX key markets. certified according agricultural processes in terms of safety, +275,000 hectares and enhancing our to environmental products of land including • Distribution network quality and efficiency, capitalising production capacity standards (2.5 million tonnes 5,602 hectares of in +160 countries • Provide per year) on the many innovations brought vineyards operated employment in by the Group about by Industry 4.0. local economies,

PLANET • Code for • Targeted action on • More than 300 • More than 150 Commercial the ground to tackle commercial responsible SOCIAL CAPITAL 4 Communications AC S communications drinking initiatives Preserve biodiversity and By 2030, we will pilot 5 new circular alcohol-related harm. CELERATOR Promote Due to the diversity of our brands, ensures that Often working with responsible have been worldwide, regenerative agriculture ways of distributing wine & spirits Pernod Ricard is deeply rooted in our commercial industry peers and submitted to including our drinking and the Responsible flagship program By 2030, all affiliates will have and help increase recycling rates local communities. We are committed communications external partners. do not encourage engage with our Marketing Panel, of Responsible implemented a strategic biodiversity in the top 10 largest markets with which 93% were Party which has to building long-standing and ethical or condone partners and project addressing the most low recycling levels. relationships with all our partners – irresponsible compliant reached more consumption or 4 ESSENTIALS 4 ACCELERATORS communities than 400,000 pressing local biodiversity issues. farmers, suppliers, academics & bartenders. misuse of any kind. students across 32 By 2030, we aim to be water • Operational • Portfolio countries(h) excellence management By 2025, we will develop balanced in all high-risk watersheds, • Talent development • Innovation regenerative agriculture pilot replenishing 100% of water • Sustainability & • Premiumisation schemes within our vineyards consumption from production sites. Responsibility (S&R) & luxury across 8 wine regions. ENVIRONMENTAL CAPITAL •Energy • The primary consumption per materials used • Route-to-market / • Digital acceleration Minimise our impact By 2030, we commit to reducing • - 33% of CO • - 80% of non- Natural resources and raw materials are unit produced: for packaging are 2 consumer on the environment emissions recycled waste Deploy circular models the overall intensity of our carbon used at every stage of production up until 6.19 kWh per litre glass (875 kt) by limiting waste, (scope 1 +2) (c) (landfilled or of distilled pure and cardboard By 2021, we will ban all POS footprint by 50% aligned with the final packaging. We are committed • - 23% of water incinerated) per alcohol (d) (59.7 kt). (d) consumption and use promotional items made from single- Science Based Targets (SBT). to nurturing our terroir and producing consumption (c) litre of finished of natural resources product (c) use plastic and, by 2025, 100% our products in a circular way, in order • 6.5 million m3 of (f) of our packaging will be recyclable, to ensure the resilience of our business. water consumption compostable, reusable or bio-based.

(a) As at 30 June, 2020. (e) Impact Databank 2020, being exclusively used by cooling (h) Since 2010. (b) According to the 2019 I Say survey. based on 2019 data. installations and restored without (i) As at 31 March 2020. (c) Per unit of production between fiscal (f) 22.8 million m3 of water was taken from any impact on the environment. years FY10 and FY20. the Group’s industrial sites. Only 6.5 m3 (g) Internal definition of top (d) In FY20. constitute water consumption, the rest management: Job band C and above.

40 41 42

(2) Source: (1) Source: FINANCIAL METRICS FY20 LEADERSHIP POSITIONS figures Our key financial The Pernod RicardMarket View, Impact Databank 2020, No. 1 No. AND PRESTIGE SPIRITS WORLD NO. 1FOR PREMIUM Operations (Groupshare) Net ProfitfromRecurring €1,439M Asia/Rest ofWorld €3,467M PER REGION SALES based on2019 data. basedonIWSRvolumedata ending2019.

(1) (1) Operations Profit fromRecurring €2,260M No. 2 No. OUR GROUP & SPIRITS INDUSTRY WORLD NO. 2INWINE (1)

Europe €2,532M Americas €2,449M 16 THE WORLD’S TOP 100 BRANDS AMONGST Net sales €8,448M

(2) figures Our key non-financial (4) Source:Results of theJuly 2019,WillisTowers Watson, (3) Per unitofproductionbetweenFY10andFY20. EMPLOYEE ENGAGEMENT PROTECTING THE PLANET 33% engagements. & responsibility with oursustainability their activitiesinline and to conduct to act responsibly are encouraged within theirdepartment declare that people 86% EMISSIONS REDUCTION INCO (3) of employees are of employeesare 94% proud to work for theGroup 2 ISay survey. unique. Pernod Ricard is what makes of conviviality the concept Feel that 83% NATURALLY COMMITTED Pernod Ricard. is arealityat and friendly) straightforward, (approachable, Believe conviviality 86% 23% CONSUMPTION REDUCTION INWATER company is socially company issocially responsible in the responsible inthe of our employees of ouremployees believe that their 92% community (3) (4) of Pernod Ricard. and objectives in thegoals Believe strongly 90% 43 Seizing the opportunities

OUR ENVIRONMENT

P. 44 P. 53

Pernod Ricard listens to society,

consumers and all its stakeholders

to anticipate expectations,

manage risks and create safe and of responsible conviviality. a new world 44 45 OUR ENVIRONMENT NATURALLY COMMITED

Accelerated connectivity, a greater focus on health and well-being, increased sustainability concerns, the need to ‘be’ together… Pernod Ricard explores Major trends the evolving needs of consumers and the opportunities for the Group. The Covid-19 crisis has accelerated already existing trends and with them a new world is emerging. Here are six major trends that are already shaping in a new world conviviality into the future.

Health and well-being Shopping experience redefined Consumers are looking for healthier Actions and more balanced lifestyles. Younger Real life social Consumers have embraced the Actions Virtual • Launch of Jacob’s Creek new range convenience of online alcohol ordering, generations are ever more concerned networks • Click & collect services available at togetherness about well-being and keen to share “Better by Half”, light wines with half with home deliveries or click & collect the alcohol and calories of regular wine. services. A long-term trend, accelerated our wineries and distilleries accelerated convivial moments and treat themselves The Covid-19 crisis has increased the • Implementation of new labels during confinement, that is driving an during lockdown. Togetherness is being redefined as while drinking moderately. importance of coming together physically, on the backs of our bottles to inform expectation for meaningful experiences • New Drinks & Co marketplace now con- a state of mind and not just a physical with family, friends or neighbours. consumers on calorie content and seamless interactions. necting consumers with all our brands in experience, especially in a Covid-19 Opportunities With the wearing of masks and physical as from December 2019. one place for the best online experience. context. From cloud parties and gaming distancing, people are more than ever Expanding our portfolio in the low/ • Digital campaign #SharingGoodVibes Opportunities • Partnership with on-demand delivery to virtual reality worlds, people are sharing longing for convivial moments and to return no alcohol and low sugar and calorie launched during lockdown with start-up Glovo, enabling consumers to fun experiences across distances. to their favourite venues, which are also Demand will continue for the key categories. Communicating clearly the Erasmus Student Network (ESN) order via a mobile app and have goods having to adapt. New ways of socialising advantages of e-commerce Opportunities on product contents. Educating our to promote a healthy lifestyle delivered in less than an hour. are appearing, that reinforce a sense – fast fulfilment, price range and customers on moderate drinking and and responsible drinking. of solidarity within one’s local community. selection. Beyond convenience, Online gatherings will expand in the encouraging them to favour quality conviviality of tomorrow. Consumers over quantity. Developing products with consumers will also look for personal, Opportunities social and interactive experiences. 47% want to strengthen social bonds and ingredients from sustainable agriculture. 75% of consumers say they have create community in emerging types Post-pandemic, consumers will value Key points of millennials claim they now Key points discovered new ways of virtual occasions. real life interactions. Bars, events and to shop, such as online, and limit the amount of alcohol brands will reinforce their role as social How can our brands go further in how Key points How can we support more mindful they drink on the majority use delivery ‘services’ since alcohol consumption and adapt our connectors to develop conviviality, they connect, engage and shape the the beginning of Covid-19 of their nights out community collaboration and meet customer journey through engaging As socialising habits change and online portfolio to respond to these new trends? Source: Sourcing Journal Source: Mintel lifestyle aspirations. content and redefining the shopping interactions become mainstream, experience? how do we experiment with new Key points platforms and partners to transform these into meaningful experiences? How do we support our trade and hospitality partners to ensure there will Actions still be the spaces needed to connect • Festivals continue with live-streaming people and provide convivial occasions? initiatives, including Tomorrowland Sustainability Actions Augmented home Around the World, Boiler Room Festival, Stay Home Festival, Untold Festival, • ‘1000 Cafés’ initiative in France to support entertainment DGTL Amsterdam and NTS online radio. Covid-19 has brought ecological Actions the continuing or opening of local cafés • JD.com in China launched an online and biodiversity concerns in small French towns. • Sustainable and responsible hospitality Home has become an increasingly Actions clubbing campaign inviting musicians to the fore, driving consumers to be • Collaboration with Three Sheets, one e-learning programme with UNITAR privileged place for people to create and DJs to perform while offering click more questioning about the ethical of the World’s 50 Best Bars, to bottle and • Partnered with Create Cocktails to help bartenders shape the ‘Bar World togetherness and conviviality. Covid-19 to order option for consumers. and environmental practices deliver seven exclusive cocktails from iconic in the UK to launch limited-edition of Tomorrow’. stay-at-home directives will bring a • ‘Stay Inn series’ by Jameson offering of the brands they choose. London bars during lockdown in the UK. cocktail boxes for the Happy Place •Ricard new range Fruités Bio with lasting shift towards more do-it-yourself online entertainment (pub quizzes, • Our Brand Homes are reconnecting with festival and the Royal Ascot horse race. Opportunities ingredients certified organic. home entertaining. concerts, virtual visits of distilleries). local consumers by offering premium and • In France, Mumm started wine • All ingredients and water sourced private tours or events in our distilleries Opportunities and food pairings at home for Being transparent about origin and locally for Absolut vodka, their bottles sourcing of ingredients, sustainable (TX, JP Wiser’s) and wineries (Mumm Napa, the members of the RSRV club. are 40% recycled and produced Consumers will dedicate more 43% production and responsible Kenwood Vineyards). • Launch of new range Absolut Vodka in Southern Sweden. time and resources to at-home distribution. Using packaging to Soda and Cocktails to recreate of UK consumers would convivial occasions. They are open reassure and educate about nutrition, the cocktail experience at home. be interested in watching to experimenting with new alcohol content, sustainability and a concert or art performance +850% entertainment options, especially recyclability. Leading change with 90% in virtual reality Online mentions for convenience solutions that help our suppliers and hospitality partners. of consumers in US, UK, #Supportyourlocal in March 2020 49% Source: Alternative Realities Australia and China say that them host or celebrate in style. Key points Source: Radarly of consumers in China companies and brands have Key points a responsibility to take care stated spending more money How can we be more open about than usual on home of the planet and its people How do we better support consumers’ our sustainability and responsibility entertainment items experiences as hosts and guests with commitments, progress and results, Source: Wunderman Thompson due to Covid-19 new products and services to enhance and share knowledge for further conviviality at home? Source: Statista, April 2020 impact?

46 47 OUR ENVIRONMENT NATURALLY COMMITED

People enjoy conviviality in a variety of ways. Confinement during the Covid-19 crisis has only increased people’s need to socialise with family, friends or Moments of work colleagues, through conviviality at home and via new online and virtual experiences. In this new world, Pernod Ricard keeps its finger on the pulse of how consumers in every country, culture and generation like to come conviviality revisited together over food and drinks, and how it can best enhance their experience. Here are a few examples of this new conviviality.

Very popular with consumers, Full of energy and enthusiasm, the aperitif is a moment to relax parties are about having fun and drink to health and with friends through music and happiness together. Whether dancing. When it’s not possible it’s virtual togetherness or clinking to get together, cloud parties Aperitif glasses on a terrace at home and virtual music festivals can or elsewhere, it’s the perfect time keep the good vibes and good Party time Party to whet your appetite before times going. an evening meal. Often served Who? with snacks, it sometimes even takes over lunch or dinner. Mainly friends or like-minded tribes, but also colleagues Who? in some cultures, especially After a busy day or week working, A cross between aperitif and Enjoyed after dinner when Considered the main meal in All generations, with friends in Asia. some countries, dinner is usually friends and colleagues catch up, and family. dinner, a cocktail party is a stylish the sun has set and the night is unwind or let off steam together way to celebrate anything from well under way. In Asia especially, Where? a privileged time for sharing in a relaxed atmosphere. These Where? birthdays, engagements to office business celebrations are and conviviality, especially Worldwide. Dinner when entertaining at home. days, as a result of Covid-19, Mainly in Western Europe. events. A format that adapts occasions where strong bonds it can be a convivial online to do-it-yourself parties at are forged amongst business What? Guests are often invited gathering as much as physical What? home and online, as well as partners or colleagues. to enjoy a special meal paired Mainly champagne and spirits with wines and spirits carefully

Happy hour Happy catch-up in a favourite place a mix-and-mingle occasion A glass of Ricard, a Beefeater gin Who? served straight (Absolut Vodka, chosen by their hosts. close to the office. and tonic, champagne (Mumm) meeting new people over Ballantine’s) or in cocktails Cocktail party Cocktail cocktails and nibbles. With colleagues and business Who? Who? or chilled wines – white, rosé, (Havana Club, Malibu, Olmeca partners. or even red – as well as light Who? tequila). Colleagues or friends, Family members and friends. cocktails, Lillet (either by itself Where? or sometimes just a guys’ or with tonic) or a glass of whisky Loved ones, co-workers Where? or girls’ get-together. (The Glenlivet, Aberlour). or acquaintances. celebration Business In North America, Europe, and Asia – particularly Worldwide. Where? Where? in China, Japan, South Korea What? Originally a concept from In Europe and Anglo-American and Hong Kong. Wine reigns supreme in Western English-speaking countries, countries. What? Europe (Campo Viejo), North it’s now a universal phenomenon. What? Blended and malt whiskies (Roy- America (Kenwood Vineyards) What? Champagne (Perrier-Jouët) al Salute, Chivas, and Asia Pacific (Brancott Mainly cocktails (mojitos made and mixed drinks or cocktails The Glenlivet), cognacs (Martell) Estate, Jacob’s Creek), while beer with Havana Club rum or (made with Absolut Elyx, and local spirits. and local spirits are preferred margaritas made with Altos Beefeater or Havana Club). elsewhere. Innovative cocktail tequila), simple mixed drinks pairings are popping up (such as an Absolut vodka soda, on restaurant menus. Ballantine’s lemonade or In China, cognac with water Beefeater gin and tonic), a simple is served with dinner. glass of Jameson whiskey or beers.

48 49 they relyoneachother. The worldofwineandcorkareinseparablylinked, sustainable w the qualityofourcorksandproducetheminmost to lookforsolutionstogetherimproveevermore is contagious.Wehaveamutualunderstandingthatleads us I findthesamequalitiesinEstibaliz,whoseenergy that’s whatIbelieveischaracteristicofourcompany. The workenvironmentisreallynice–human,personal for almost50years. that hasbeenproducingnaturalcorksforbottles subsidiary ofMASILVA,afamilybusinessinPortugal In 2011,myfatherandIcreatedtheSpanish ENERGY. a newchapterinherlife. manufacturing companywhereheworked,andbegan to takeupherfather’sofferjointhecork Eighteen yearsago,ConchileftacareerinIT La Rioja,Spain Sales Director,MASILVA&Garzón Conchi Garzón

CORK ay possible.

CORK CORK CORKof nature.Itwasamomentmagic. the treesandwoodsbearswitnesstoagenuinelove by theprocess–amanualharvestusingmethodthatrespects was withher.Whatadiscovery:Iintrigued,captivated time Ivisitedacorkoakforestandexperiencedharvest Conchi andIhaveknowneachotherfor15years.Thefirst centimetres ofcorkthatsealthebottle. tactile connectionbetweentheseimmenseoaksandthefew almost rawquality,isfascinating.Thereastriking controlled ageing.Thepurityofthecork,itsnatural, while atthesametimeensuringitsconservationand required forthewinetodevelopinabalancedway, of ourwines.Thecorkallowsinandfilterstheoxygen A naturalcorkisanessentialelementinthesuccess MAGIC. her adoptedhome. of wineandherhusbandbroughttoLaRioja, Born inBilbao,northernSpain,Estibaliz’slove La Rioja, Spain Pernod RicardWinemakers Sustainable PerformanceManager, Estibaliz Torrealba OUR ENVIRONMENT NATURALLY COMMITED

Managing Loss of major industrial Cyberattack site/strategic inventory Cyber intrusion compromising systems, our risks Resulting in significant business disruption websites and data integrity. and unavailability of key brands in the trade. Brand portfolio Facing a range of internal and external risks that may affect Toxic contamination challenges the achievement of our objectives, Pernod Ricard has implemented Risk of toxic contamination and nonadaptation a system of internal control and risk management to better forecast of a product resulting in major injuries. to new trends and control them. As part of the Group’s decentralised structure, (incl. inventory each function and each affiliate contributes on an ongoing basis Pressure on prices management) to the smooth running and improvement of this system. Risk of margin erosion due to intensified Adapting Pernod Ricard’s portfolio pressure from retailers and fierce and business model to new trends. competition.

Major litigation Geopolitical Against Pernod Ricard, its affiliates, and macroeconomic its brands or its management. • Loss of major site/ instability strategic inventory Risk of a broad geopolitical turmoil and • Toxic contamination Product quality issues High the resurgence of a macroeconomic crisis. Quality deviation leading to customers’ disappointment and brand image Negative media/ deterioration. social media campaign Impacting the image of the Group and/or Talent management its key brands. Inability to attract, develop and retain • Cyberattack • Pressure on prices talent. • Geopolitical and macroeconomic instability Regulatory changes • Negative media/ (incl. tax and anti-alcohol) Fraud social media campaign • Regulatory changes Strengthening of legislation resulting in Resulting in financial losses or the leakage (incl. tax and anti-alcohol) restrictions or constraints in different areas of sensitive information. • Climate change and (marketing, communication, tax, etc.). environmental damage

Climate change and Supply disruption • Supply disruption • Brand portfolio • Financial risks environmental damage • Human safety risk challenges (FX, interest rates, Due to key supplier failure or volatility and nonadaptation credit) Global warming impact on our activities IMPACTS OF RISKS to new trends of raw materials prices. (incl. inventory and environmental damage caused by management) our activities. • Major litigation Human safety risk • Product quality issues Financial risks Severe employee accidents and contractors as a result of a criminal event or accident. (FX, interest rates, credit) Unfavourable evolution of exchange and • Pensions • Talent management • Counterfeiting/ interest rates or the failure of customers • Fraud IP rights leading to non-collection of receivables. Pensions Unanticipated increase of pension fund Counterfeiting/ deficits and/or cash contributions. IP rights Counterfeit and look-alike products damaging brand equity and impacting sales.

PROBABILITY INDEX

High Moderate Methodology: Every three years, Pernod Ricard’s main risks undergo a mapping process involving all Group affiliates and functions. The various risks are ranked according to their potential impact and probability of occurrence. This risk matrix is a risk management tool. The next matrix update will be in 2021. REFER TO THE UNIVERSAL REGISTRATION DOCUMENT to learn more

52 53 OUR STRATEGY NATURALLY COMMITTED

O U R STRATEGY

54 P. 79 Winning P.

In line with its ‘Transform & Accelerate’

strategic plan, Pernod Ricard is focusing in on four key battlegrounds: winning in key markets, building passion brands,

funding the journey and valuing our people.

our four battlegrounds 54 55 NATURALLY COMMITTED

Strengthening our leadership Battleground in China

Hit hard by the Covid-19 crisis, the Winning in key markets Chinese sales shrank in the second half of the year. Yet China remains a highly In line with its Transform & Accelerate strategic plan and customer- promising market for Pernod Ricard centric business model, Pernod Ricard needs to invest to continue - the leader in international spirits there. growing in its four must-win markets: US, China, India, Global Travel A major project, the building of a Retail as well as e-commerce. distillery for the domestic production of Chinese malt whisky is proof For example, despite significant market decline due to the pandemic, of the Group's long-term strategy the Group has continued investing in China. Pernod Ricard is betting to consolidate its leadership. on local production with China’s first malt whisky distillery and working with the country’s largest spirits producer Wuliangye to diversify its offer and expand distribution into Southeast Asia and beyond.

In addition, capitalising on digital innovations and a growing appetite for online shopping, the Group is expanding partnerships China: a buoyant market and investments in innovative platforms such as Glovo Developing distribution networks – on-demand delivery – and its own Drinks&Co marketplace Pernod Ricard has been active for 24 years in China, where in Southeast Asia to strengthen its multi-channel distribution strategy and win 9% of its business was generated in FY20. It’s a country that is “unique and fascinating” for Jean-Etienne Gourgues, CEO Although whisky and cognac have a substantial consumers looking for simpler and faster shopping experiences. of Pernod Ricard China: “It has one of the oldest traditions presence, local spirits like Baijiu dominate the Chinese of spirits distillation in the world, dating back 5,000 years. market. In November 2019, Pernod Ricard began a There is a keen appetite for spirits, both local and international strategic partnership with Wuliangye, the country’s brands.” And in a country of 1.4 billion people, the opportunities second largest producer, combining resources to develop are vast. China is a promising region for growth for the distribution of this emblematic white spirit. and one of Pernod Ricard’s investment priorities, focusing in particular on emerging middle and affluent classes and “We are going to jointly develop our regional changing Chinese consumer tastes. distribution networks in Southeast Asia, the rest of the continent and even beyond,” comments The first ‘made in China’ single malt Ludovic Ledru, Vice-President Finance, IT and whisky Strategy of Pernod Ricard Asia. Representing 80% 01 of alcohol consumption in China, but little known The Group decided to invest 140 million euros over the next in the rest of the world, Baijiu is also widely enjoyed 10 years in Emeishan (Sichuan), becoming the first international by the Chinese expatriate community. company to build a single malt distillery in mainland China. “ We are going to produce and market an iconic malt whisky for whisky lovers in China and around the world,” continues Jean-Etienne Gourgues. “This project is part of our ‘Transform & Accelerate’ plan and will allow us to strengthen our leadership in the whisky category in China with a very comprehensive offer.” The project broke ground in August 2019: production will begin in 2021 and commercialisation in 2023.

56 57 OUR STRATEGY NATURALLY COMMITTED Growing our

Strategic partnering e-commerce for on-demand services

Innovative delivery experiences are presence allowing consumers to shop anytime, anywhere and enjoy products delivered to their door. Through its Convivialité Ventures (see p. 61), Pernod Ricard has Connectivity, technology innovation invested in on-demand delivery start- and Covid-19 lockdown have driven up Glovo which enables the consumer “With Glovo, we can offer a convenient to order groceries and drinks via way for millions of adult consumers a continuing shift in consumer purchasing a mobile app and have them delivered to get home delivery of their favourite towards the flexibility, convenience and in less than an hour. Pernod Ricard brands,” says Juan Pablo safety of online shopping. Pernod Ricard Giraldo, Global e-commerce Manager. challenged itself to go further and step up Pernod Ricard and Glovo have created “Embracing a start-up mentality will the digital transformation already underway a joint business plan to accelerate boost our ambition to multiply our each partner’s growth and proximity Glovo business by four and increase across the Group. The aim has been to grow to consumers. The deal, involving our market share over two years, our e-commerce presence by expanding over 20 Group affiliates across Europe, while contributing to accelerate our our partnerships and platforms, including Latam and Africa, will make Pernod e-commerce growth globally.” direct-to-consumer solutions. Ricard a Wine and Spirits category champion on the Glovo platform for better visibility, activation and media promotion within the app. The Group is also embedding responsible drinking into the partnership through training A framework to leverage for delivery teams and responsible online opportunities consumer content on the platform.

The increase in off-trade sales at the end of this year was accompanied by rapid growth in e-commerce in some markets during the lockdown period. In the USA and the UK, two of the Group’s top “By understanding the consumer The Drinks&Co five e-commerce markets, online sales journey, we are better placed marketplace is an grew by 105% and 92% respectively, to develop the right multichannel important testing over the past year. approach for profitable and sustainable ground which will help business growth, including investing A key focus has been to increase in winning platforms,” explains Stuart Direct to consumers: the Group explore relationships with customers and Heffernan, Global e-commerce Leader. Drinks&Co Marketplace the direct-to-consumer partners across the e-commerce route to market, using landscape, from online marketplaces, Having consolidated information and Pernod Ricard has continued to grow data to develop our pure players, click and collect best practices, the Group has created its own e-commerce channels with the competitive advantage.” e-retailers and on-demand platforms. a series of ‘how to’ guides helping acquisition of leading Spanish online affiliates quickly adapt their strategies wine merchant Bodeboca in July 2019. Louis de Fautereau, Managing Director Drinks&Co to each operating context and measure Together with Uvinum, acquired results. Our ability to offer compelling by the Group in 2018, Pernod Ricard content, great user experience has developed its Drinks&Co and seamless service are crucial marketplace to connect consumers, At Group level, we’re success factors for online shopping. suppliers and brands with a catalogue Capitalising on 50% sales growth of over 100,000 curated wine and over the last year, Drinks&Co is supporting our brands spirit products, including products looking to disrupt the market further and affiliates to build complementary to the Pernod Ricard through new services - using data effective e-commerce portfolio. to create personalised offers, and strategies for their an international service for products markets.” not available in home markets.

Stuart Heffernan, Global ecommerce Leader

58 59

OUR STRATEGY NATURALLY COMMITTED

Identifying and seizing Battleground new trends

Building passion brands marketing and commercial teams, to help with pricing notably; and (4) Mix Optimisation, for more agility and efficiency More than ever, people are looking for brands they can identify with. in the development of our brand assets.

A deep understanding of their expectations allows Pernod Ricard “Over the last year, our teams have come together and to ensure its offer aligns with their lifestyles and concerns, even as developed new ways of working to ensure we make the best these are disrupted by the crisis we are experiencing. use of our resources throughout the Group. These new centres of excellence have been key in identifying actionable insights and developing global tools for our markets,” explains Florence Awareness of emerging trends is vital. The recent reorganisation Rainsard, Global Consumer Insights Director. of the Consumer Insights operations and the creation of four centres of excellence have paid off during the crisis, allowing the Group to be In the context of Covid-19, the Cultural Foresight Centre of Excellence has proved particularly strategic by allowing more agile in identifying new moments of conviviality and rapidly our teams to quickly analyse impacts and opportunities and adapt brand strategies. Moreover, through its Convivialité Ventures, align strategic planning with emerging trends (see pp. 46-47). the Group is investing in startups reinventing the conviviality space. Relevant knowledge is shared online, through newsletters, Understanding today’s tastes, An example is Fever, a platform offering users a selection of events, videos, webinars and the Insight Factory, a searchable digital aspirations and habits while database of resources whose launch was accelerated outings and tips in their neighbourhood. anticipating those of tomorrow is by the beginning of the crisis. This agile, collaborative approach fundamental to our business. This is is helping us to predict how people will socialise, entertain Over the last year, the Group’s Specialty brands portfolio won why internally, Pernod Ricard has been and consume in a quicksilver context. attention with the addition of super-premium craft spirits started restructuring the organisation of its by passionate entrepreneurs. From the rare Japanese gin KI NO BI Consumer Insights department, which to the proudly Texan bourbon TX and authentic Italicus aperitivo, focuses on identifying and responding these distinctive artisanal brands resonate with the growing interest to new trends and consumer patterns. Exploring new business opportunities in terroir, craftsmanship and local sourcing. At the same time, its corporate venture arm Convivialité Ventures is looking Investing in emerging new businesses can be more at new business segments in the world strategic and efficient than building up entirely of conviviality. new projects. Convivialité Ventures, Pernod Ricard’s corporate venture arm, was launched to explore opportunities in the ecosystem of conviviality. Getting the best consumer insights Its mission is to make minority investments in promising 02 startups which complement our core business. To date, In 2019, the Group restructured its Consumer Insights Convivialité Ventures has invested in 12 high-growth organisation to increase the value of our consumer intelligence companies in the US and Europe in line with key trends with a more flexible, reactive, fast-to-market approach that identified by Consumer Insights. These include Glovo, capitalises on digital technology to create closer connections an on-demand courier service for products ordered with our brands, markets and regions. The new centralised team through its app (see pp. 58-59) and Fever, which offers is divided into four centres of excellences with key areas its platform users a curated list of the best events, things of expertise: (1) Cultural Foresight, which identifies and monitors to do and to see in their city – a partner for Pernod Ricard trends and consumer opportunities; (2) Equity, Consumer to co-create, promote and monetise consumer centric Understanding and Targeting that helps collect consumer data, and data driven experiences. through social listening for example; (3) Shoppers, E-shoppers & Travellers, which develops tools and methods for the trade

60 61 OUR STRATEGY NATURALLY COMMITTED Leveraging the trend for local

and craft products Super-premium gins In our specialty gins, Monkey 47 was joined in 2019 Authenticity, transparency and proximity by Malfy, an Italian gin infused with native botanicals including lemons from the Amalfi coast, and the craft are increasingly important to consumers, Italian aperitivo Japanese gin KI NO BI in 2020. Artisanal gin-making and contribute to meeting the growing is very new in Japan. Created by Marcin Miller and demand for smaller-scale, local, artisanal Top-trending Italicus is an David Croll, KI NO BI is a pioneer in Kyoto, using local and ultra-premium products. In 2019 exciting addition. This premium botanicals such as yuzu, hinoki cypress, bamboo, the Group launched the newest category low-ABV spirit from Italy is gyokuro tea and sansho pepper distilled in a rice-spirit a modern take on traditional in our portfolio, Specialty brands base at the Kyoto Distillery in a process that seeks rosolio, an Italian liqueur made konwa – the attainment of harmony through blending (see House of Brands pp. 24-25). by infusing flowers and spices of several ingredients which are distilled separately. in alcohol. The reinvented Gin enthusiasts can learn about the ingredients version by mixologist and spirits and philosophy of the brand in the House of KI NO BI, Craft American whiskeys expert Giuseppe Gallo uses a traditional 100-year-old machiya townhouse with native botanicals such as Sicilian earthen walls, beams and roof tiles and furniture made Adding to the artisanal Smooth Ambler from A new category expanded lemons and Calabrian bergamot by local craftsmen. by our recent acquisitions oranges blended in a distillation West Virginia, the Group has continued to expand of Italian grains with macerated its American whiskey and bourbon portfolio. Over the last few years, the acquisition of majority lavender, gentian, yellow rose stakes in several Specialty brands has leveraged and lemon balm from northern Rabbit Hole is a Kentucky straight bourbon that sprung this strong consumer trend by extending their profile Italy and chamomile from Lazio from both the imagination and the talent of Kaveh first in their home territories and then further afield at a family-owned distillery Zamanian, a former psychologist who left Chicago thanks to our global distribution network. near Turin. to follow his passion by setting up a brand and a distillery Artisanal mezcal in the heart of Louisville. While inspired by the spirit’s rich “These distinctive brands are initially acquired through past, Rabbit Hole takes a creative approach to whiskey- Our latest collaboration is Ojo a majority stake in the company, with the founder making, reflected by the ultra-modern and state-of-the de Tigre, an ultra-premium and/or CEO staying in place for several years to art distillery where visitors can sip this ultra-premium mezcal by Casa Lumbre. allow the brand to benefit from our ecosystem while and very unique bourbon or whiskey neat or in cocktails Crafted according to ancient preserving its unique identity and relying on the talent in a rooftop bar where contemporary art exhibitions take traditions by cooking the agave and passion of its/their founder(s) to grow the brand place on a regular basis. in earthen pits and then distilling through our unique global distribution network. it in clay pots, this farm-to-bottle The aim for us is to become ultimately the full owner Another Louisville-based brand is Jefferson’s Bourbon. mezcal is made from sustainably of the brand and its related operations after a few This small batch production was named, by its creators sourced Espadín agave from years,” explains Philippe Prouvost, Group Global Head Trey Zoeller and his father Chet, after the third American Oaxaca and Tobalá agave from of Strategy and M&A. president who embodied both “independence and Pueblao, resulting in a smooth, sophistication”. This family brand seeks out new and sweet, herbal profile. This portfolio of singular craft spirits creates strong aged barrels of bourbon from established distilleries ties to our communities in a category that usually which they blend and experiment with through outpaces the industry average. different processes – including aging bourbon at sea for 18 months and letting the movement of the waves work its magic.

TX, whose Texas straight bourbon is made from yellow dent corn and soft red winter wheat sourced an hour south of the distillery, is fermented with a wild yeast strain captured from a Texas pecan. True to terroir, the bottle itself represents old-fashioned Texan 25 +7% craftsmanship, with each leather-covered cap made BRANDS IN GROWTH from repurposed cowboy boots and saddles donated THE SPECIALTY IN FY20 by the community. Also adding to its authenticity, PORTFOLIO its creators Leonard Firestone and Troy Robertson, TX chose to build their distillery on a famous old Texan golf course.

62 63 – used ingredients are ensuring thatonlythebest–andwheneverpossible, local the capitalofperfume.Since2015,Virginiehasbeen obsession ofthisfoodengineeringspecialistfromGrasse, and enhancingit:thissubtledelicateprocessisthe Extracting thearomaofanisefromaplant,preservingit that respecttheenvironmentandaresourced locally. with ourambitiontoofferconsumersproducts His commitmenttosustainableagriculturetiesinperfectly We’ve beenworkingwithVincentformanyyears. aromatic intensity. harvesting theflowers,itretainsitsfull Because theoilisdistilledwithin24hoursafter the compositionofRicardPla of fennelflowerscultivatedbyVincentanduseitin We extractthismoleculefromtheessentialoil molecule, whichimpartstheflavourofanise. plants Star anise,greenfennel,dill,etc.allthese ANISE. Marseille, France Purchasing Manager,PernodRicardFrance Virginie Bartholin contain, in varying quantities, the anethole varyingquantities,theanethole contain, in

FENNEfor ouranise-flavoured L ntes Fraîches,f or example. or example. spirits. spirits.

FENNEL FENNEL a scented postcard from Provence. a scentedpostcardfromProvence. with fieldsoflavenderformapatchworkthatresembles Fields oftheyellowfennelblossominterspersed has suppliedPernodRicardwitharomaticfennel. in Vincent’sfamily.Forthelast15years,hisfarm Farming haspassedfromgenerationto of the fennel plant. I harvest them at the end of the summer of thefennelplant.Iharvestthematendsummer comes from,intheseedstheyhold.Theseareflowers See theseyellowflowers?That’swherethearomaofanise PLANTS. Valensole, France Director, GAECdePeyronnetfarm Vincent Fanguiaire fields, torotatethecropsandconservesoil. time. an in-houseagronomistseveraltimesayear,toharvest for theirquality,throughthetechnicalsupportfrom lifecycle oftheplant,fromsupplyseedsselected that: wecollaborateandexchangethroughouttheentire But myworkwithVirginieandherteamstartswellbefore indispensable to extracttheessentialoil,aromaticbase Every three years, I cultivate the fennel in new innew thefennel Icultivate years, Every three for anise-flavoured drinks. for anise-flavoureddrinks. FENNEL

OUR STRATEGY NATURALLY COMMITTED Safeguarding the bottom line in a time of crisis

How do you react and adapt strategies trade grew quite strongly post-Covid, we were able to seamlessly when a global pandemic impacts all adapt to meet rising off-trade consumer demand. Battleground aspects of your business? With a close eye on resource allocation, cash and What can you say about the Group’s liquidity, Pernod Ricard implemented a liquidity position? comprehensive action plan to safeguard Funding the journey financial stability and focus spending The business is showing its resilience. We have robust on areas that will both protect short term fundamentals, a healthy free cash flow generation and a strong liquidity position with over €5.3bn available of which €3.4bn Agility and anticipation are two key mindsets for any business, business performance and prepare was undrawn bank credit lines on 30 June 2020. Our credit especially during a period of crisis. As the Covid-19 pandemic spread the future growth of the Group. ratings were upgraded in October 2019, confirming a very solid across the globe, Pernod Ricard took early action to mitigate impacts investment grade rating for Pernod Ricard and consolidating and leverage its Transform̒ & Accelerate' strategic plan to ensure an already very good access to the capital markets. With the crisis, the resilience of the Group. we have anticipated our bond debt refinancing due over FY20 HÉLÈNE DE TISSOT and FY21 by an active management of our debt portfolio and EVP Finance, securing attractive funding rates on the new money we have raised. Thanks to strong fundamentals and a solid liquidity of €5.3 billion IT & Operations In March 2020, we repaid an €850m bond and in June 2020 as at 30 June 2020, Pernod Ricard has been able to weather the US$500 of bond debt due in April 2021. In total, we issued in FY20 €3.5bn of new bond debt. The average coupon of the new bond challenges of the past year. The Group implemented a comprehensive debt raised in FY20 was 1.02%, well below our average cost of debt. cost control and active cash management programme to maintain Furthermore, the new issuances have enabled us to increase operations and support sales in the varying market conditions faced the average duration of our bond debt from 5.5 years to 6.2 years. by local teams. It also continued investing in transformation initiatives Securing a solid and diverse liquidity position is very valuable in such a challenging and uncertain market environment. focused on future growth: accelerating digital, transforming marketing, What key actions did Pernod Ricard take to acquiring niche brands. limit the impact of the Covid-19 pandemic? How has the Group continued to deliver on The health and safety of employees and business partners has been After taking our first measures in China and Global Travel Retail its ‘Transform & Accelerate’ strategy? in January, we went into crisis management mode from paramount for the Group. Engaging employees in designing safe March 2020. We established fortnightly Risks and Opportunities In the current context, we are very keen to pursue opportunities to solutions to keep operations running where possible, Pernod Ricard forecasts to give us an updated view of our expected performance go further and faster in areas like dynamic portfolio management, has adapted manufacturing and supply chains, such as Kilmalid in the new Covid-19 environment and set a global direction while route-to-market and digitalisation. leaving decision-making to local teams on how best to keep, cut in Scotland or Ramazzotti in Italy, to meet customer orders in markets or reallocate resources. This enabled us to be more agile, moving We pursued the acquisition of selected high-growth assets that have seen continuing and rising demand. fast to protect our business while retaining the agility to prioritise in attractive categories such as premium and super-premium our investments should opportunities emerge. American whiskey – Jefferson’s (Castle Brands) and TX – and entered into a partnership with Rabbit Hole. We closed Keeping costs down and maximising cash was a key priority. a number of acquisitions in the gin category with Monkey 47, Malfy We put in place a strict operational framework to optimise and Inverroche and entered into a partnership with KI NO BI. resources. This purpose-based budgeting focused on controlling We formed new partnerships with Italicus and Casa Lumbre, 03 spend, such as limiting our investments to targeted Advertising a Mexican incubation structure for Ojo de Tigre. All of these bolt-on and Promotion (A&P) that would most effectively engage with transactions will enable the Group to boost its growth while the sale consumers in confinement, and on mitigating our costs by setting of brands such Café de Paris are expected to help enhance our strict operating guidelines and very strong discipline notably portfolio profile. We’re also building the future by investing in projects through recruitment freeze and travel ban. in key geographies such as China and, with a view to enhancing our route-to-market, we integrated Bodeboca, an e-commerce wine Operational excellence has also been more important than and spirits platform, leader in the Spanish market. ever. Over the past four years, a number of initiatives rolled We are also fast-tracking our digital transformation, developing out throughout the Group to improve collaborative sales and online platforms that link people to new conviviality experiences operational planning have allowed us to maintain stocks and keep and using data-driven tools to improve the effectiveness of our supply chains running throughout the crisis. And in the US and brand marketing and activations. European markets, such as the UK and Germany, where the Off-

66 67 OUR STRATEGY NATURALLY COMMITTED

sanitiser, and delivered it directly Preserving to hundreds of care homes and charity organisations across Scotland. Communications played a key role in uniting internal teams production in and demonstrating to external stakeholders that Chivas Brothers was operating safely and responsibly, and a time of crisis in the best interests of its community.

The Covid-19 pandemic Strength through North America and Latin America. and national containment decentralisation A taskforce was created to help measures brought many affiliates implement the latest businesses to a standstill. “We’re a highly decentralised guidance, templates and best Being open and Where possible, Pernod organisation so a lot of operational practices available. In India, where decision-making is locally led,” we have 28 plants, the entire supply communicating Ricard teams have found explains Peter Morehead, Group chain was locked down for six weeks. throughout the crisis local solutions to maintain Operations Director. “This has been However, through leveraging our production in our distilleries a real advantage in a pandemic partnerships with key strategic has strengthened trust and secure our international situation, allowing us to share suppliers, we were well positioned and created a sense supply chains. All this was effective safe practices from when it was time to re-open. Scotland: trust in local “Our focus was on the well-being decision-making of pride and ownership done with one priority our sites.” of our teams. We paused operations “Business continuity involves for 24 hours and created volunteer in our site, our solutions in mind: be sure to provide Pernod Ricard has focused understanding the constraints The Kilmalid site north of Glasgow, teams to identify challenges a safe and efficient working on coordinating consistency, of suppliers as well as our own Scotland, is the blending and bottling and engineer our own solutions,” and what we can do environment for our front following the latest guidance operations in the wake of the crisis,” hub for a range of the Group’s says Liam Donegan, Director of together.” line employees. from international and national adds Peter. “The Group has shown whiskies and gins, producing more Manufacturing at Chivas Brothers. health bodies through the different its resilience in quickly adapting than 20 million cases a year. At a time Liam Donegan, Director of Manufacturing, Covid-19 waves in China first, ways of working so that supply when general advice was to ‘stay Ninety safety protocols were put Chivas Brothers then Asia and Pacific, Europe, chains remain operational.” home’, local management decided in place and reviewed weekly, that finding a way to operate safely enabling operations to ramp up was the best choice for the long-term in a controlled manner. stability of the plant, its people and The Kilmalid team also bottled the local ecosystem. over 50,000 litres of hand

The Group has shown its resilience Italy: mobilised to meet A business continuity plan was sanitiser were produced in quickly adapting customer commitments activated to mitigate the risk and donated between March ways of working so of having to stop production. and April to the local municipality. In the heart of Piedmont, Italy, Sanitary protocols were created that supply chains the Ramazzotti distillery makes using inputs from operators, “Even though many other local remain operational.” a range of digestive and aperitif unions, health and safety and industries closed down, our teams liqueurs. In early March, as a management. Protocols were knew that we were mobilised Peter Morehead, Group Operations Director national lockdown was announced, continuously strengthened in line to meet our commitments Ramazzotti faced a peak in demand. with changing local regulations to customers as long as they Customers in Germany, its biggest and staff improvement ideas. were able to work safely,” said market, requested April and May To manage everyone’s safety, Tomas Volpin, Plant Director, orders early to ensure future stocks. Ramazzotti also held weekly Ramazzotti. The team of 26 employees calls with its transporters – both agreed to work together to keep to reassure drivers and ensure operations going. deliveries could be made. In March 2020, Ramazzotti was producing around 120,000 bottles a day for a total of 2.5 million bottles, almost a quarter of its annual output. In addition, around 4,000 litres of hand

68 69 BARLEY has cultivated barley for decades. has cultivatedbarleyfordecades. stretches over1,500 hectares, whereIain’sfamily – ‘thegoldentriangle’ofScotchwhiskyCorskieFarm On theMoraycoastinregionofSpeyside for thelandarepartofphilosophyAberlour. This stronglocallinkthatconnectsusandourrespect to feedourlivestock. of themaltedbarleyisrecoveredandweuseit At theendofdistillationprocess,residue with asustainableapproachtotheenvironment. expressive whisky.Wearepartofalocaleconomy, quality barleyessentialformakingelegantand The landisrichandfertile,yieldingtheveryhigh the purewatersofRiverSpey. than 20kilometresfromthedistillery,flankedby its productionistrulylocal.Ourbarleyfieldsareless Aberlour whiskyisfamousallovertheworldbut LAND. Speyside, Scotland Grower, CorskieFarm Iain Green

BARLEY BARLeach cyclerequirescareful,meticulousattention. to ferment,withtheadditionofyeast,for twodays: with pureScottishwater,andfinallyitis left The maltedbarleyisgroundinthemill,then mixed accomplish allyearround. and havingrespectfortheworkIainothergrowers disrupts it.It’saboutgettingthebestoutofgrain machines andensuretheprocessissmoothnothing automated today.Myroleistomonitorandadjustthe cycle beginsthatusedtobeverymanual,butismore When thebarleyarrivesatdistillery,athree-day to golden blond. change colour withtheseasons,turning fromgreen I canseeitallfrommywindows:thecropsthat time foreveryone.NowthatIliveinthecountryside, and distilleries.Theautumnharvestisalwaysaspecial to avoidithere!We’resurroundedbyfieldsofbarley Even ifyoudon’tknowmuchaboutwhisky,it’sdifficult CYCLE. after startinginadmin13yearsago. is whatpromptedKeiratomoveintoadistilleryrole Working closertotheproduct,beingmorehandson Ballindalloch, Scotland Chivas Brothers Distillery OperationsTechnician, Keira Wright E

BARLEY GLASS and containmorethan40%recycledglass. that AbsolutbottlesaremadeinsouthernSweden is recycling.Today,weareproudtobeablesay but hundredsofthousands.Anotherbigchallengeforus can beprettyambitious!Andnotjustforonebottle, our marketingteam’sdreamscometrue–andtheir Basically, myroleisnomoreandlessthanmaking of brokenglass. creation, AbsolutComeback,whichlookslikeit’smade of designandproduction.Anexampleisourlatest understanding ofourbrandallowustopushtheboundaries to oursuccess.ThelongexpertiseofArdaghandtheir Maria andIworkhandinhand,whichisthekey DREAMS. about it,themorecomplexitseems. he hasformedaphilosophyaboutglass:themoreyouknow new projectdevelopmentsforthreeyearsnow.Inthistime, At Absolutsincethemid-2000s,Carlhasbeenleading Stockholm, Sweden Product DevelopmentManager,TheAbsolutCompany Carl Mark

GLASS like we’reworkinginthesamecompany. Our collaborationisunique–itsometimes feels with solutionsforthenextbottletogether. ideas, discussingpossibilitiesandcomingup Since meetingCarl,we’reconstantlysharing a wholepaletteofcoloursappears,it’samazing. changes whentheglasscools.Fromthisglowingred, I’m captivatedbythevariations,howtint And thecolours!That’swhatIlovemost: reinvent ourselves. to handle,compellingustrynewthingsand a livingmaterialthatcansometimesprovetricky ago, andI’mstillfascinatedbyglass.It’slike the resultwasworthourefforts.That14years was quitecomplex,whichchallenging,but a limitededition,theAbsolutGlimmer.Thedesign I remembermyfirstbottleverywell–itwas COLOURS. Limmared, Sweden Ardagh Group New ProductDevelopmentProjectManager, Maria ClettbornPersson where Ardaghisnestled. ideas cometolife,fromthemiddleofforest coordinates thedevelopmentofnewbottlesandhelps A bridgebetweensalesandproduction,Maria

GLASS

GLASS OUR STRATEGY NATURALLY COMMITTED

A collective and global Battleground mobilisation Valuing people to fight

As creators of conviviality, our business is all about people: taking care of the men and women who make our products, the local communities the Covid-19 in which we operate as well as the bars, hotels and restaurants with whom we work. crisis In a year like no other, when lives and livelihoods have been hugely impacted by the pandemic, Pernod Ricard has been quick to adapt its organisation and mobilise teams behind Covid-19 relief efforts – The Group systematically put into practice the notably to ensure the production and distribution of hand sanitiser. recommendations of the national and international health authorities, and where possible helped its employees to access emergency treatment or tests. Already The Group has also expanded initiatives to nurture responsible experimented in a number of affiliates, homeworking was behaviour: collaborating with our industry and International Alliance extended to all employees whose offices had been closed, as well as to vulnerable employees and those employees for Responsible Drinking (IARD) to eliminate underage drinking, During the pandemic that continues who could work remotely. Where this wasn't possible, a #SharingGoodVibes digital campaign to raise student awareness, to impact the physical, social and very strict measures were put into place to protect our a MOOC to train our own employees as well as marketing campaigns economic well-being of people employees' health and safety. to raise awareness such as Absolut’s #SexResponsibly. across the globe, Pernod Ricard has channelled the resources of the Group into protecting its employees and 2020 has also seen the opening of The Island, the new Group flagship communities, supporting hospitality in Paris which brings together all our Paris-based teams and their partners and contributing to collective The exceptional 900 employees in a unique site that promotes sharing, discussion and solidarity efforts around the world, commitment of the women collaboration and embodies the Group’s transformation. across all sectors. and men of Pernod Ricard during this difficult period

One priority: the health and safety and the agility they showed of our teams in adapting to new ways

04 Covid-19 arrived in the midst of a global deployment of working are both great of an updated Group Health and Safety policy. Its aim: examples of the strength nurturing a culture where everyone is personally involved in ‘Taking care of each other’ in line with our vision of of our culture and the conviviality, and maintaining a safe and healthy environment implementation of our at work every day, towards zero injuries by 2025. strategy ‘Transform & Reacting quickly to the spread of the pandemic, Accelerate'.” teams sped up implementation of this policy, adding Cédric Ramat, new containment measures to maximise employee EVP Human Resources, safety and minimise risk for their families. Sustainability & Responsibility

72 73 OUR STRATEGY NATURALLY COMMITTED

A rapid response from our North American teams

Working quickly with the White House Taskforce to get the necessary regulatory approval, Pernod Ricard North America began producing sanitiser supplies at four sites – Fort Smith in Arkansas, Kentucky, Texas and Windsor, Canada. Within 48 hours, logistics teams had supported the Federal Emergency Management Agency to rush 6,000 gallons (over 22,000 litres) across the country to locations most in need. The operational teams ramped up production capacity to 20,000 gallons a month (over 75,000 litres), working with partners such as UPS to ensure weekly supplies to important first responders like the New York Police Department. Operational staff are using excess capacity, rearranging shifts and taking on additional responsibility to manage this urgent new need alongside production of the Group’s spirits.

Responding in this hour of national need has given Supporting livelihoods in hospitality our own frontline teams in production an additional Hospitality has been one of the most affected sectors of the pandemic. sense of purpose.” The Group has rallied to help bartenders Ann Mukherjee, Sanitiser production: helping and other hospitality workers to survive Chairwoman and CEO, Pernod Ricard North America our communities the shutdown and compensate their lack of income. From donations in South Africa, In the early days of the pandemic, many gift vouchers to be used in bars and communities faced difficulties in getting restaurants in Sweden, funding for meals basic protective equipment such as masks in Australia and New Zealand, support and hand sanitiser. To combat potential for the US Bartender’s Guild relief fund shortages of a key resource in reducing to free online courses, founding member the spread of Covid-19, Pernod Ricard swiftly of the platform “J’aime mon bistrot” in reorganised distilling sites across the world, France, Pernod Ricard has been multiplying including France, Sweden, Ireland, UK, India efforts to help its partners. The Covid-19 and North America, to provide hand sanitiser crisis has also highlighted people’s need 1m 4m or the pure alcohol needed to produce it. to continue to meet and socialise in a safe LITRES OF HAND LITRES OF setting. To ensure continued conviviality SANITISER PURE ALCOHOL Six months into 2020, Pernod Ricard had in small towns and villages, the Group PRODUCED PROVIDED provided over 4 million litres of pure alcohol is actively supporting local initiatives and produced over 1 million litres of hand including ‘1000 Cafés’, which aims to open sanitiser. Inspired by the Group’s values or keep cafés going in French towns and sense of shared responsibility, this with under 3,500 inhabitants. massive mobilisation of employees embodies Pernod Ricard’s readiness to step up and support cross-sector efforts to protect community health.

74 75 OUR STRATEGY NATURALLY COMMITTED Stepping up the fight for responsible Nurturing responsible behaviour among students

While confinement prevented events on campus, Pernod Ricard’s 11-year consumption Responsible Party partnership with the Erasmus Student Network went digital. #SharingGoodVibes, launched in April on Instagram and Facebook, has set out to inspire young adults with positive messages and stories Concerns about health, well-being and drinking habits have intensified around solidarity and conviviality while reminding them to stay safe, during Covid-19, and Pernod Ricard has stepped up its actions to promote convivial and responsible. Following a live online party with DJ Licious responsible drinking. A global commitment to eliminate underage drinking, in May, the campaign then spread “Good Vibes in Tough Times” throughout a MOOC on alcohol and responsible drinking, an online module for bartenders June with a series of interviews with influencers and ambassadors. on responsible serving, and the leveraging of social media during lockdown “#SharingGoodVibes is spreading positive messages and solidarity among are just some examples of what the Group is doing to raise awareness about young people. It’s a great example of how business and civil society alcohol and encourage people to take better care of themselves. can inspire responsible behaviour together,” says Kostis Giannidis, President of Erasmus Student Network.

Eliminating underage “In 2018, the United Nations gave us We have to be bold drinking a mandate to take concrete steps, with our brands. With where possible, towards eliminating As a member of the International the marketing, advertising and sale #SexResponsibly, we Alliance for Responsible Drinking of alcoholic products to minors, down different stages of consent, embarked on an audacious (IARD), Pernod Ricard and other and we have taken this mandate this multi-channel campaign made key players of the industry have very seriously working in concertation it clear that sex without consent and ambitious plan with committed to accelerate efforts with all stakeholders towards – which sometimes is related everyone clearly behind it.” towards eliminating underage implementing concrete actions to the misuse of alcohol – is sexual drinking. We have seen a surge to make a real difference,” assault. The campaign leveraged Ann Mukherjee, Chairwoman and CEO, in on-line purchases of alcohol says Henry Ashworth, CEO Raising awareness the power of social media and Pernod Ricard North America during lockdown. While the rise and President of IARD. among our consumers celebrity influencers to drive of e-commerce is not an issue per se, conversation, while deploying we want to ensure our brands are As people are looking to identify more digital ads on dating apps used not inadvertently sold to minors. and more with the brands they buy, by young adults, and displaying To that end, we are committed Pernod Ricard has a unique platform the message, “Only a Yes to Sex to working with online retailers to raise awareness on responsible is a Yes” on the billboards and delivery companies to develop Making our employees ambassadors drinking among consumers. Absolut, of Times Square. global standards to prevent the sale a brand known for building purposeful and delivery of alcohol to underage Pernod Ricard has developed and rolled out to its employees a MOOC campaigns, recently sought to get individuals. We will also introduce on what alcohol is, how it can affect us and what responsible drinking habits its customers talking and thinking a clear age-restriction symbol to adopt. It builds on our Global Responsible Drinking policy which sets out about the link between responsible or equivalent language on all of our what we expect of our employees as ambassadors of the Group to promote drinking and consensual, safe sex. alcohol brand products, including moderate consumption and prevent inappropriate consumption or abuse alcohol-free extensions. We will of alcoholic beverages. Working closely with the Rape, also continue our work with leading Abuse and Incest National Network digital platforms to implement Its content was further adapted and shared on a free mobile app on (RAINN) in the United States, Absolut rigorous online safeguards to prevent the United Nations Educate All platform, with the aim of giving everyone launched the “Drink Responsibly, minors from seeing or interacting the knowledge to make informed decisions about drinking responsibly. #SexResponsibly” campaign with our brands online. on Valentine’s Day 2020. Using “We’re committed to providing our people with open access to quality the chronology of a date to break information on alcohol and responsible drinking and encouraging them to be our ambassadors,” explains Cédric Ramat, Executive VP HR, Sustainability and Responsibility, Pernod Ricard.

76 77 OUR STRATEGY NATURALLY COMMITTED The Island: the Group’s new flagship embodies our transformation

Incorporating the highest environmentally 900 responsible standards, meeting the EMPLOYEES needs of our employees and being closer to consumers in the heart of Paris: 18,000M2 The Island, the Group’s new flagship, OVER 7 FLOORS now brings together all our Paris-based The result is a mix of ‘classic’ and ‘collaborative’ workspaces. Islanders teams under one roof. It is a building sit wherever they want, choosing designed to promote innovation, from 80 available meeting rooms and collaboration and performance, whose 2,400 workstations, depending on their name is rooted in the history of the Group. activity or need. No more silos, the It’s the ultimate expression of our vision organisation and layout of space created ‘Créateurs de convivialité’. by design agency Saguez & Partners promotes collaboration and performance What better in an open, transparent and informal setting: conviviality to boost performance. place than

“The Island is the result of internal an island Previously spread across seven sites, engagement very early on in the project. The Group has also chosen The Island the 900 employees of Pernod Ricard’s All teams got involved in rethinking to locate the new Pernod Ricard Foundation. to dream?” entities from in and around Paris are their future headquarters. Together Continuing the heritage of the Ricard now together under one roof. More than we have designed and built this place Foundation, it will provide a multidisciplinary Paul Ricard a simple office relocation, it represents so that it reflects our vision of ‘Créateurs art space freely accessible to all, dedicated a new chapter for the Group. de convivialité’,” says Olivier Cavil, to up-and-coming artistic creation, along Group Communications Director. with a café and bookshop. that the Institut Océanographique A unique site With a lobby on each floor recreating our “The Island embodies the future Paul Ricard was created in 1966 to fight different brand experiences and the seventh Pernod Ricard, a company open to the world against some of the first industrial pollution The Island is unique in many ways. Firstly, floor Sky Bar with its breathtaking views over and which places its partners, consumers in the Mediterranean Sea. Now chaired the building. By reflecting the ever-changing Paris, The Island is a flagship for our brands. and employees at the heart of its strategy. by Patricia Ricard, granddaughter of the colours of the sky, the 2,400 glass strips This new flagship is the ultimate symbol Group’s founder, it contributes more widely on the façade, designed by Studio Ferrier of our Group’s transformation,” concludes to the protection of marine environments Marchetti, recall the impressionist paintings Alexandre Ricard, Chairman and CEO. through research and public awareness. of Saint-Lazare station by Claude Monet. Rated ‘Excellent’ in High Environmental Creative, convivial, committed: The Island Quality and ‘Very Good’ in BREEAM A tribute to our roots is both a reference to the Group’s roots, International New Construction certifications the continuity of a mindset and now for its design and energy performance, The Island owes its name to Les Embiez and a new Parisian address that pays tribute the building has become the focal point for Bendor, two islands off Toulon that became to our founder: Cours Paul Ricard. the Group’s international teams. Everything the Paul Ricard islands in the 1960s after has been designed to facilitate informal their new owner. These Mediterranean islands meetings, collaboration and synergies offer a place of conviviality, somewhere to boost ideas and creativity. to dream and reflect. Naturally it was here

78 79 Accelerating our OUR RESULTS In a turbulent social and economic context, P. 80 P. 119 Pernod Ricard showed strong resilience

and agility across its brands and markets,

by focusing on fundamentals and leveraging

new opportunities.

performance

80 81 OUR RESULTS NATURALLY COMMITTED Our brands: innovating

PERRIER-JOUËT in a changing p.94 ROYAL SALUTE p.96

MARTELL ABERLOUR CHIVAS REGAL p.95 p.97 world p.84 ABSOLUT p.85

MONKEY 47 REDBREAST p.98 p.100

BALLANTINE'S p.86

LILLET ALTOS p.99 p.101 THE GLENLIVET p.88

JAMESON p.87 CAMPO VIEJO p.102 BRANCOTT ESTATE p.102 HAVANA CLUB p.89

Reinventing ways to bring people together,

MALIBU JACOB'S CREEK Pernod Ricard brands have continued p.90 p.103 to innovate with new on-trend spirits and wine offerings to meet evolving consumer needs and new moments of conviviality. Purposeful campaigns, launches into new RICARD p.92 markets, championing music and culture, original experiences and virtual events, solidarity actions for local communities, etc., our brands KENWOOD are engaging consumers in our collective goal MUMM VINEYARDS to create the conviviality of tomorrow. p.93 p.103

BEEFEATER p.91

82 83 OUR RESULTS NATURALLY COMMITTED

“The Extra 13 collection represents a territory “Our ready-to-enjoy vodka sodas of experimentation and flavour exploration and cocktails meet growing consumer for consumers, as we continue to push interest in convenience and more the boundaries of Scotch through innovative conscious drinking. We’re offering flavour combinations and modern packaging, a perfect way to recreate the bar opening up the world of blended whisky experience, with no mixing required.”

to new audiences and fresh experiences.” Charl Bassil VP Marketing, Absolut Nick Blacknell Marketing Director, Chivas Regal Absolut

60+

MARKETS SET TO ROLL OUT THE NEW CHIVAS EXTRA 13 SHERRY CASK

In a first for Chivas, 2020 saw the introduction of four and bring a Tequila-cask finished Scotch to market, Ready-to-drink formats have become increasingly popular, Absolut Vodka Sodas (5% ABV), in three fruity varieties, are new blends to the portfolio with the Extra 13 collection. exciting whisky aficionados as well as opening up the especially for spur-of-the-moment celebrations. With a 97 calories per serving with no added sugar or carbs, and These four 13-year-old whiskies deliver unique flavour category to new consumers. new range of naturally flavoured vodka sodas and vodka the trio of ready-to-drink cocktails range between 7 and notes, thanks to the addition of one of four casks during Innovative inside and out, the Extra 13 collection is cocktails, Absolut is making sure that its brand is a key 10% ABV. the whisky-making process: Oloroso Sherry, American adorned with vibrant artwork by street artist Greg Gossel, ingredient bringing a sparkle to the conviviality of health- With all the fizz but none of the fuss, these Absolut Rye, Rum, or Tequila. pushing the boundaries of what Scotch packaging can conscious consumers. innovations, launched in May in the US, Canada and Australia, With consumer interest in bolder flavours increasing, 2019 be. Historical images from the brand’s history are blended The pre-mixed drinks in a can provide a perfect balance have proved ideal in a period when many consumers are saw the Scotch Whisky Association relax its guidance on with modern designs celebrating each cask’s vibrant of Absolut’s vodka with a host of natural fruit flavours, with socialising more at home. maturation and finishing, giving producers more freedom heritage, showcasing a more contemporary side to the a low calorie and lower alcohol content. Lightly sparkling to experiment. Chivas moved fast to become one of the iconic brand.

Chivas Regal Regal Chivas first brands to play within the bounds of these new rules

84 85 OUR RESULTS NATURALLY COMMITTED

“From live events to performances “We wanted to streamed from home, Ballantine’s is modernise the iconic sharing its passion for true music whiskey and coffee duo - supporting local artists, keeping in a refreshing way to fans connected and creating appeal to people looking conviviality in difficult times.” for new flavours and

Mathieu Deslandes a different Jameson Marketing Director, Ballantine’s experience.”

Brendan Buckley 20 International Marketing Director, Irish Distillers COLLECTIVES AND OVER 100 ARTISTS SUPPORTED BY ‘STREAMING FROM ISOLATION’ INITIATIVE, ACHIEVING 60m+ REACH AND 30m+ LIVE VIEWS

48% PURCHASES ARE FROM CONSUMERS WHO ARE NEW TO THE WHISKEY CATEGORY (1)

Music connects people, whatever the distance. As a brand promoters, musicians and creatives financial grants and The past decade has seen a phenomenal rise in the over ice or in a low-sugar coffee cocktail such as an that champions pioneering local artists and music scenes one-to-one mentoring to help local music scenes thrive. popularity of Irish whiskey and craft coffee. Jameson Cold Espresso Martini. via its True Music platform, Ballantine’s has continued to To date the True Music Fund has launched in Spain and Brew reimagines the classic combination of whiskey and Following successful pilots in Australia and Ireland, support these communities by giving them a global platform South Africa. coffee, broadening the brand’s reach into new consumer Jameson launched its Cold Brew in the US on National and investing in their future livelihood, particularly during When the pandemic hit, Ballantine’s supported Boiler Room’s groups and conviviality occasions. Irish Coffee Day in January 2020. Named a #1 Innovation lockdown. ‘Streaming From Isolation’ series, committing a six figure sum Jameson Cold Brew infuses triple distilled Jameson Irish by Nielsen in March(2), the product shows Jameson’s Ballantine’s longstanding True Music partnership with in the form of monetary grants to under threat community- Whiskey with natural cold brew coffee extract from 100% continued dedication to innovation and commitment Boiler Room has to date celebrated more than 35 local driven music collectives around the world. Content and arabica beans to bring a smooth and distinctive beverage to recruiting a diverse fan base – one third are female music communities and over 280 artists globally. In performances from the artists were broadcast to the world with intense coffee aromatics. At 30% ABV, it is a versatile consumers and one third are non-Jameson drinkers (3). November 2019, Ballantine’s and Boiler Room launched a from their homes, keeping music fans entertained whilst in offering designed to appeal to whiskey lovers, coffee

first-of-its-kind programme, the True Music Fund, offering lockdown. connoisseurs and bartenders alike. It can be enjoyed Jameson Ballantine’s

(1) Nielsen, US Chains Performance, ending 11/07/20. (2) Nielsen. (3) AMC US Global Purchaser Follow-Up Study, July 2020. 86 87 OUR RESULTS NATURALLY COMMITTED

“Our new campaign celebrates our “With Havana Verde, we’re pioneering heritage. We are embracing an attracting new millennial appetite for innovation in Scotch to make consumers looking for a simple single malts more accessible and relevant and surprising taste experience to a new generation of consumers.” with an easy-to-mix concept.”

Miriam Eceolaza Nicola Nashed Marketing Director, The Glenlivet Marketing Manager Core Innovation, Havana Club

1.5bn+ #1 MEDIA AND SOCIAL HAVANA CLUB VERDE IMPRESSIONS GENERATED WAS THE TOP TRENDING BY THE CAPSULE SPIRIT INNOVATION COLLECTION IN ONE WEEK IN GERMANY, JUST ONE MONTH AFTER LAUNCH(1)

The Glenlivet is no stranger to either tradition or innovation. In a world first, The Glenlivet introduced its Capsule Light, long refreshing drinks are growing in popularity. honey. Havana Club Verde is a bold example of how the A new global campaign has shown how the brand is Collection, glassless whisky cocktails served in a seaweed- Havana Club is revitalising the premium white rum market brand is creating a new impulse for rum-based mixes to win challenging conventions to open up the single malt Scotch extract casing, during London Cocktail Week in October in Germany with a new offering. Havana Club Verde is a new over millennial drinkers within what is a very mature category. category. 2019. This ground-breaking innovation sparked a huge botanically infused spirit that provides a versatile base for Following a successful launch winning market share and new Launched in 2019, the ‘Original by Tradition’ campaign global conversation, increasing website traffic, and simply mixing with tonic or creating refreshing cocktails. fans in Germany, the brand’s biggest export market, Havana showcases how The Glenlivet has continually set out to attracting thousands of new social followers. Made using classic gin distillation methods combined with Club will explore opportunities to introduce Verde to other break traditions and define new ways to enjoy single malt The ‘Original by Tradition’ campaign played an important centuries-old rum traditions, it’s inspired by Latin American mature rum markets. beyond preconceptions and gender stereotypes. Led by a part in the brand’s value growth (+15%) in the six months flavours such as sun-ripened citrus fruits, herbs and Cuban high-energy film, the campaign across TV, print and digital following its launch. also introduced new, vibrant packaging reflecting the Havana Club Havana

The Glenlivet The brand’s forward-thinking mindset.

(1) Nielsen Grocery + C&C Innovations, May 2020. 88 89 90 7 m VP Marketing,Malibu Johan Radojewski easy-to-enjoy format.” of summer inan the refreshing taste Splash allows us to bring wherever they desires to create conviviality fan base inline people’s with “We’re excited to grow our Malibu MONTHS OF THELAUNCH SOLD IN THE FIRST SIX CANS OF MALIBU SPLASH easy-to-use format. Aninnovative route-to-market Splash hasproveditpacks agreat taste into aportable and flavours andjust5%ABV. Packaged inaslimcan,Malibu US, asparklingready-to-sip maltbeverageinfourfruit In February 2020,thebrandlaunchedMalibuSplashin and funexperiences. to findtherightbeverageto pairwiththeirfavourite people occasions withfriends.Malibuismakingiteasierforthem Consumers wantsimpleandgreat-tasting drinks forcasual are. Malibu OUR RESULTS evolving its offerto changingconsumertrends. a goodexampleofhowthisprogressive spiritbrandis conviviality, outdoors orwherevertheirdaytakes them.It’s on thegoandlookingto create theirownmoments of buzz, especiallyamongyoungerconsumerswhoarealways This Malibuinnovation hasgenerated significantonline across over40 states intheUS. availability inindependentgrocerystores andretailers strategy hasgiventheproductgreat visibilityand (1) Nielsenscantrack,MAT to 13/06/20. From conceptto shelfinarecordtimeofeightmonths, it’s created forthetastes oftoday’s cocktail andspritzdrinkers. James Burrough,in1876, Beefeater’s zesty newginwas Inspired bytheOrangeGindistilledbrand’sfounder, over 15markets worldwide–mostrecentlyCanada. Travel Retail, Beefeater Blood Orangeisnowavailable in Following successfulpilots intheUK,IrelandandGlobal The GinHubistransformingits portfoliothroughinnovation. A bright-tasting newginfromBeefeater isthelatest way Managing Director, TheGinHub Louise Ryan for flavoured gins.” the growing global thirst of innovation and satisfies on thebrand’s long history our latest expression, builds “Beefeater Blood Orange, NATURALLY COMMITTED bringing incremental growthto the brand. tool, attracting drinkers fromotherdrinks categories and Beefeater’s BloodOrangeGinisprovingastrongrecruitment premium ginbrands. on theglobaldevelopmentofits portfolioofInternational The GinHub,Pernod Ricard’sBrandCompanythat focuses an innovation drivenbytheagility, speedandteamwork of FY20 TOTAL UK SALESGIN IN VALUE CONTRIBUTION TO BEEFEATER HIGHEST #1 (1)

91 Beefeater OUR RESULTS NATURALLY COMMITTED

“Blending digital convenience with exclusive and emotional experiences, “Our Ricard Bio Club RSRV allows us to create close Fruités range, relationships with Mumm champagne almond or lemon enthusiasts and share some of our most flavoured pastis born prestigious cuvées throughout the world.” in Marseille, appeals Laurent Fresnet to pastis-lovers who Cellar Master, Mumm are increasingly looking for freshness and authenticity.”

Anne Tremsal Marketing Director, Pernod Ricard France

6,000

RSRV CLUB MEMBERS IN FRANCE, X2.5 COMPARED TO LAST YEAR 1ST MAJOR FRENCH SPIRITS BRAND TO CREATE AN ORGANIC RANGE

The tang of lemon and the nutty creaminess of almond. thirty-something urban consumers who are curious about the High-end customers expect premium service. The exclusive website and mobile app. Maison Mumm also brings this These typically Mediterranean flavours have inspired two latest trends and care about the environment. Club RSRV in France has created an innovative digital premium service to life via exclusive monthly tasting events. new original pastis recipes: Ricard Fruité Bio Citron and For two years, these spirits will be available only at spirit platform to bring champagne connoisseurs closer to the Club RSRV reflects the brand’s and Pernod Ricard’s ambition Ricard Fruité Bio Amande. Both are made in Marseille by shops and selected bars in city centres. This launch heart of Maison Mumm. to put the consumer at the heart of the user experience with distilling green anise in a copper still modelled on 19th-century will be supported by targeted ‘pastis-ology’ training for Club RSRV gives a select circle of individuals, who are a successful business model that is attracting new members, traditional alembic stills, allowing the anise to express its full professionals and a click-to-buy media campaign with the recommended for membership, privileged access to Maison by developing new routes-to-market and an ever more aromatic richness. An authenticity that makes Ricard the first wine retailer Nicolas. Eighty-seven years after it was created, Mumm cuvées and content. Taking a direct-to-consumer exclusive offering. This strategy is increasing the premium major spirits brand to create a range with organic certification. Ricard is writing a new chapter in the history of pastis. approach that cuts out intermediaries, members can perception of Maison Mumm and helping secure its place This new innovation after Ricard Plantes Fraîches, appeals to order exceptional vintages for home delivery via the Club’s in the luxury market. Ricard Mumm

92 93 OUR RESULTS NATURALLY COMMITTED

“We bring together “Maison Martell has preserved an artists across diverse ancestral savoir-faire in the art of fields of art, design, blending, magnificently illustrated fashion, gastronomy by Martell Chanteloup XXO. More and hospitality than 300 years after it was founded, to create exceptional Maison Martell continues to open experiences that the way for new expressions of cognac.”

connect our savoir-faire César Giron with nature.” CEO of Maison Martell

Guillaume Pétavy Meynier Global Brand Director, Perrier-Jouët Martell

#2 IN THE PRESTIGE CATEGORY WITH BELLE EPOQUE(1)

Through its Art of the Wild programme, Maison Perrier- the heart of the Maison's vineyards and cellars before a Drawing on savoir-faire spanning 300 years and nine of Maison Martell. To underline the exceptional nature of Jouët whose Art Nouveau heritage is symbolised by gourmet pairing of champagne with creations by French generations of Cellar Masters, Maison Martell has initiated this cognac and bring connoisseurs closer to the creative the Japanese anemony created by Emile Gallé in 1905, chef Alain Passard. an entirely new ultra-prestige category with the launch of process, Maison Martell created Martell Chanteloup XXO continues to celebrate the essential role of nature in one Visitors to DESIGNART Tokyo and Design Miami discovered its landmark Martell Chanteloup XXO. Masterpiece, a made-to-order hand-crafted trunk, with of the world's best-loved champagnes. Perrier-Jouët’s new artistic tasting ritual ‘Banquet of Nature’, A supreme demonstration of the art of blending, Martell each detail personalised for a truly bespoke experience. 2019 saw creative collaborations between Cellar Master featuring its newest Artisan of the Wild: Michelin-starred Chanteloup XXO is crafted from 450 very old eaux-de-vie When opening a Martell Chanteloup XXO Masterpiece, Hervé Deschamps, culinary chefs, visual artists and chef Pierre Gagnaire. A new collection of champagne from four of the finest crus, united in a single cognac. It offers cognac amateurs get a unique insight into Maison Martell’s designers at events in China, Japan and the US. During glasses by Italian designer Andrea Mancuso gave new connoisseurs a complete expression of the very best of blending expertise. the West Bund Art & Design Fair in Shanghai, Perrier-Jouët expression to the history and personality of each of the Cognac terroir and pays tribute to the consummate mastery created a unique multi-sensory experience. Through the Maison’s six cuvées.

Perrier-Jouët lens of Chen Man, visitors took a photographic journey into

(1)The Pernod Ricard Market View based on IWSR 2019. 94 95 OUR RESULTS NATURALLY COMMITTED

“These new outstanding whiskies embody “Speyside is home not only to our our vision to open up the brand to a new distillery but also to many of our team generation of luxury consumers, inviting members and partners. We want to give them to cultivate a life of enrichment something back to the community that and wonder through our portfolio of rare has given us so much over the years.”

and precious Scotch whiskies.” Miriam Eceolaza Marketing Director, Aberlour Mathieu Deslandes Marketing Director, Royal Salute +25% VOLUME GROWTH IN TAIWAN, ROYAL SALUTE’S #1 MARKET IN FY20 Aberlour

20,000

ATLANTIC SALMON EGGS PLANTED IN THE LOUR AS PART OF ABERLOUR’S S&R INITIATIVES

Royal Salute continues to strengthen its position as the ‘King For another new tasting experience, Royal Salute fully In line with the Nurturing Terroir and Valuing People restrictions hit many local livelihoods. Through a donation of Whisky’ by expanding its prestigious range and engaging finished a 29-year-old blend in Pedro Ximénez casks, offering pillars of Pernod Ricard’s Sustainability & Responsibility to the Moray Emergency Relief Fund, Aberlour is helping the new luxury consumer through innovation, stretching the a one-of-a-kind Scotch with a unique Spanish influence. (S&R) strategy, Aberlour has been taking social and support individuals from the nearby community facing boundaries of luxury Scotch. Finally, The Time Series is a 52-year-old Single Cask Finish environmental action to protect and preserve its local financial hardship due to Covid-19, providing vital support The new 21-year-old Snow Polo edition is the perfect whisky blended from some of Royal Salute’s oldest and most community. to those most vulnerable as a result of the pandemic. winter Scotch and Royal Salute’s first blended grain valuable whiskies and finished in one single cask for 14 years. 2020 saw the start of a new cycle of life for Atlantic salmon Aberlour is a whisky closely linked with the Speyside area whisky. Bottled at 46.5%, it pays tribute to the winter sport’s Exceptional in every way from the art of blending to the rich in the Speyside area. Planting 20,000 eggs in the Lour and is proud to contribute to the continued well-being of birthplace, St Moritz, by matching its latitude coordinates. detailing evident on each flagon, these new Scotch whiskies near the Group's distillery is part of a unique partnership its community. Actions like these strengthen its appeal to In another first, Royal Salute unveiled its inaugural 25-year- capture Royal Salute’s expert blend of tradition, craft and between Aberlour and the Spey Fishery Board to maintain whisky lovers who identify more and more with brands that old expression, The Treasured Blend, inspired by the Crown innovation. the salmon population – a key resource for biodiversity and share their sense of sustainability and solidarity. Jewels and honouring the Scotch’s royal heritage. local tourism. In the wider Aberlour community, Covid-19 Royal Salute Royal

96 97 OUR RESULTS NATURALLY COMMITTED

“Every bottle winds up empty at some “We’re thrilled to be increasing point: so we thought, why not sell them awareness and excitement about that way for a good cause? our brand by building on the image A rather unconventional idea was born of entrepreneurial and independent to raise awareness on the impact women and what they have to share.”

of deforestation and poaching.” Lucas Billaudel International Brand Manager, Lillet Alexander Stein Founder, Monkey 47 Lillet 6 m+

INFLUENCER REACH FROM THE LILLET SUMMER IN THE CITY EVENT HELD IN NEW YORK IN SUMMER 2019

47 HAND-PICKED BOTANICALS GO INTO EVERY CRAFTED BOTTLE OF MONKEY 47 SCHWARZWALD DRY GIN

Taking a stand on social and environmental issues, in threat of extinction on their label. The promise behind the 2020 has been a year when many people in lockdown on partnering with influencers across fashion, lifestyle a convincing way, builds strong connections between idea is anything but empty. Profits from each unfilled bottle have looked for inspiration and entertainment ideas and gastronomy. The aim: build brand awareness consumers and their preferred brands. sold will be donated to primate protection programmes online. Lillet’s global influencer strategy is helping the through uplifting social media content and events, such Monkey 47 celebrated its 10-year anniversary with a unique around the world. brand grow a worldwide community, on social media as inspiring talks about female entrepreneurship, self- campaign raising awareness of the impact of deforestation Monkey 47 is showing how, with gin lovers worldwide, the notably, inspired by female empowerment and positive confidence, healthy body and mind, as well as creative and poaching on the world’s primates. brand can give something back and make sustainable and lifestyle activations. To increase the impact of in- drinks and conviviality. Following a donation to the World Wide Fund for Nature, responsible conviviality a force for good. country initiatives, Lillet devised a global strategy to In choosing a wide variety of influencers sharing aspirational Monkey 47 launched its Sad but true campaign with a special guide its teams on leveraging the power of influencers ideas and their own style of Lillet-themed drinks and edition of six unfilled gin bottles featuring primates under to win new fans in its core target of trendy chic women. occasions, Lillet has created the perfect link to its core brand Implemented from 2019 in countries from Belgium, purpose: craft your own lifestyle. Denmark, Germany, Spain to the US, the strategy focuses Monkey 47 Monkey

98 99 OUR RESULTS NATURALLY COMMITTED

“We wanted to push the boundaries and “Casa Altos reflects our close create something that would seamlessly connection to our unique region take its place at the head of the Redbreast and commitment to improving Single Pot Still family, in a way that balances communities through sustainable tradition and innovation with the use and socially responsible of ruby port barrels.” conviviality.” Carlos Andres Ramirez Billy Leighton Global Advocacy Team, House of Tequila Master Blender, Irish Distillers +32%

SALES IN US OFF-TRADE IN FY20 (1)

100 m+

REACH THROUGH LAUNCH MEDIA COVERAGE

Connoisseurs value the time taken to craft a truly Bringing new complexity and depth to the Redbreast taste Terroir and traditional craftsmanship are key to the Altos featuring a different aspect of tequila-making – from agave, distinguished whiskey. In March, Irish Distillers introduced experience, the barrels contribute fleshy fruit characteristics identity. With a recent revamp of its visitor centre, the brand tahona stone to wood casks and the red soil of the region. In the oldest permanent expression to the Redbreast family with notes of toasted oak to complement the rich and robust is celebrating the Altos essence of Mexico and reinvesting addition to convivial tastings and Altos and Olmeca inspired – a product nearly three decades in the making. style of the distillate. in its local community. cocktail workshops, guests can stay at Casa Altos to soak For over 30 years, Masters at Midleton Distillery have sought With this latest iconic addition, Redbreast Single Pot Still Casa Altos opened its doors in January 2020 after a two-year up contemporary Mexican culture or enjoy a convivial out only the finest bourbon and sherry casks to achieve a continues to delight super premium whiskey lovers around redesign to give bartenders, distributors and influencers moment in the bar or on the terrace. Altos has also linked maturation style synonymous with Redbreast. Drawing on the world. from across the world a unique brand experience. The up with a range of local artisans to showcase and sell fair this tradition, Redbreast 27 Year Old also includes whiskey Altos team created a traditional Mexican casa with a series trade products and Mexican arts for the benefit of 30 matured in ruby port barrels from Portugal’s Douro valley. of 10 themed rooms around a central courtyard, each communities across the region. Altos Redbreast

(1) Nielsen 100 101 OUR RESULTS NATURALLY COMMITTED

Campo Viejo has continued to transcend the Spanish BETTER BY HALF BRUT In a competitive wine space, packaging is key to RANKED wine category in its pursuit of becoming a leading global capturing consumer attention. A new look for Kenwood wine brand. The accelerating growth of Campo Viejo is Vineyards is helping its wines stand out on the shelf and underpinned by a long-term strategy focused on four improve perception of the brand as a premium US- key factors: stand-out packaging, unique and engaging #1 origin wine. activations, easy-to-navigate portfolio, and award- SPARKLING INNOVATION California enjoys a rich diversity of terroir across its IN $15-20 BRACKET(1) winning wines. different mountain, river and valley vineyards. In The brand continued its strong growth in key markets (US September 2019, Kenwood introduced a dual appellation & UK) through the launch of new wines, including rosé, approach that highlights both the grape variety and the helping drive incremental double-digit growth. region where the wine is made. It embraces the brand’s In Australia, the brand identified a strong interest in spirit of discovery in identifying wild terrains that bring a international wines, even though the Spanish wine unique quality and flavour, as well as allow it to craft more category was almost non-existent. premium expressions of Sonoma in higher tier ranges. By executing its strategy and inviting consumers The new look positions Kenwood with a sharpened focus to embrace the Spanish lifestyle, through the Live on winning consumer consideration and purchase at the Uncorked campaign, Campo Viejo is now the #1 shelf. The new bottles have improved shelf recall, are much international still wine in value in Australia within faster to find than any other wine brand and have the 12 months(1). Successfully expanding and premiumising highest likability scores in their category. Point-of-sale its portfolio footprint has led to Campo Viejo achieving impact is one of the most valuable assets for wine sales of three million cases in one year for the first time contributing to higher purchase intent and improved in the brand’s history. brand perception.

Inspired by a trend towards moderation amongst healthy- minded wine drinkers, Jacob’s Creek is creating the mid- Being one of the early pioneers of the growing suc- strength wine market in Australia with the launch of its Jacob’s Creek Jacob’s cess of New Zealand wine around the world, Brancott ‘Better by Half’ range. Estate helped grow the category and is now faced ‘Better by Half’ is a new line of light and crisp wines that with increasing competition. To remain competitive contain half the alcohol and calories of regular wine.

Brancott Estate Brancott and capture consumers attention in our key global Winemakers in the Barossa Valley used a special filtering markets, the brand has re-assessed how it stands out approach to create the new Jacob’s Creek 5.5 ABV offer in from the competition at the point of purchase in a a range of popular and fast-growing varieties such as Pinot unique and engaging way. A new eye-catching look grigio, rosé and sparkling wines. This new range has been launched this year encapsulates the brand’s origi- designed to meet increasing demand from millennial wine nality and encourages wine lovers to ‘taste life on the lovers who want to reduce their alcohol consumption whilst flip side’. still enjoying great-tasting, quality wines. The new packaging design embraces the ‘kiwi’ The ‘Better By Half’ innovation gives the brand new culture of light-heartedness whilst paying tribute to opportunities to capture growth, disrupting the traditional the history of the Marlborough region which has wine market with a new category of mid-strength wines. It transitioned (or ‘flipped’) from sheep farming to world also highlights Jacob’s Creek continued commitment to renowned viticulture and winemaking. offering a wider selection of high-quality wines for people With positive research results and early signs of +4% to enjoy whatever the occasion. success in New Zealand where it was first rolled out IN NET SALES across Brancott Estate’s range of red and white IN FY20(1) wines, the new look is now being adopted across other markets. Campo Viejo Campo (1) IRI Australia Liquor, June 2020. (1) Source: IRI Australia – Coles Liquor Group, MAT to 14/06/2020. Vineyards Kenwood 102 103 here hasbeenharvestedforover2,000years. this land,whiletheblueagavethatgrows He considersthatheisjustpassingthrough which arelocatedintheJaliscanHighlands. Luis givescentrestagetohisfields, an to choosewhenthetimehascome.Forme,being The knowledgepasseddownovergenerations allows you seven years. when You havetowatchitgrow,helpingalong,anddecide be bitter.Toolate,andtherewillnojuiceatall. attentiveness: harvestittooearly,andthejuicewill who farmthisplant.Theagavedemandspatienceand land, andouridentity,the This isrecognitionofourwork,linktothe as aculturalUNESCOWorldHeritageSite. to saythatouragavelandscapehasbeendesignated I arealwaysamazedbysomuchbeauty.I’mproud geometrical patternoftherows.Stefaniaand leaves ofthecactus,redearth,perfectly Have youeverseenafieldofagave?Theblue-green LANDSCAPE. Jalisco, Mexico Owner ofRanchoLaGarita Luis Torres this perfectly. all thedifferencewithStefaniaisthatshe understands agavero it’s the right time to harvest it – after six or sixor the righttimetoharvestit–after is about both craft and heritage. What makes isaboutbothcraftandheritage.Whatmakes AGAVE agaveros and jimadores

AGAVE AGAVE AGAVEthat areclosetotheland. of longandlaboriousteamworkmethods experience whenyoutasteitaretheresult The explosionofflavoursandsensationsyou orange andcaramel. which givesthetequilaitsnotesofgrapefruit, of thesugarthatisneededtodevelopouryeast, it iscookedintheovens,andduringextraction the cropcomesin,throughitstransformationas Protecting theagave’sflavoursbeginsassoon at eachstageoftheprocess. trust, webothtrusteachothertodothebest at everystepoftheprocess.It’saboutmutual of collectiveworkachievedbyLuisandhisteam in theproductionoftequila–immenseamount All ofthisisonmymindwhenI’minvolved is astoryofeffort,passionandtradition. a complexanduniquehistory.Cultivatingagave The agaveismorethanjustaplant,itreflects FLAVOUR. to OlmecaAltos. for thesubjectnaturallyledherinterest production process,Stefania’spassion by postgraduatestudiesinthetequila With adegreeinfoodchemistryfollowed Arandas, Mexico Liquids Coordinator,HouseofTequila Stefania Elizalde OUR RESULTS NATURALLY COMMITTED

United States China FY20 Transform & Accelerate +2% Transform & FY20 -16% medium-term ambition: SELL-OUT Accelerate ambition: SALES to grow mid-single digits Broadly in line high-single digit • Progressive recovery with market by in last quarter after PERFORMANCE PERFORMANCE PERFORMANCE PERFORMANCE and gain market share channel(1) to low-double being severely impacted digit medium-term by Covid-19

growth. Expand • Acceleration of 28% 28% (2) digital initiatives the imported spirit with e-commerce and Star Other at-home consumption Jameson market to double its

size from 1% to 2% Malibu between 2017 and +26% 2025. TRUSTED’ BRANDS TRUSTED’ SHIFT TO ‘TRIED AND AND ‘TRIED TO SHIFT Kahlúa PORTFOLIO STRATEGY PORTFOLIO STRATEGY +15% TO DRIVE FUTURE GROWTH FUTURE DRIVE TO Jameson 30% 14% +14% st Bastions Growth Relays Absolut Absolut, Malibu, The Glenlivet, Martell, Altos, 1 Kahlúa Avión +3% single malt distillery in China at Emeishan (Sichuan), scheduled to open in 2021 (2) Altos Avion Jefferson's The Glenlivet Martell

YS PARTNERSHIP +32% +29% +22% +16% +4% WITH DBR LAFITE GROWTH GROWTH RELA

Two routes-to-market PREMIUM BRANDS PREMIUM PRESTIGE BRANDS BRANDS PRESTIGE FUTURE GROWTH STARS GROWTH FUTURE

Market leadership maintained Strong growth (1) Internal estimate. (2) Nielsen 52 week value data ended 27 June 2020.

106 107 OUR RESULTS NATURALLY COMMITTED

India Global Travel Retail

FY20 Transform & Accelerate -11% FY20 -27% SALES ambition: low-double digit SALES medium-term growth, Six-week nationwide Due to passenger traffic full lockdown disrupted PERFORMANCE PERFORMANCE PERFORMANCE PERFORMANCE in severe decline across consolidating leadership the end of the year the world position in the industry

Transform & Accelerate 25% Leadership consolidation with ambition: develop premium & Reinforced leadership at 25% > 45% market share above 45% and market share, with gains overall value market share(1) continuing to grow Travel Retail leadership and in all key categories

(1) IWSR 2019 bottled in India Premium & Western style Spirits whiskies

Portfolio strategy Performance

BRANDS BRANDS INTERNATIONAL INTERNATIONAL INTERNATIONAL INTERNATIONAL 3 PREMIUM LOCAL LOCAL 3 PREMIUM BRAND LAUNCHES BRAND SUCCESS OF RECENT RECENT OF SUCCESS BETTER RESILIENCE OF RESILIENCE BETTER

In decline due to Covid-19 but Strong growth of Ballantine’s BRANDS PRESTIGE SOME positive pricing in 2019/20 and Jameson in particular

108 109 OUR RESULTS NATURALLY COMMITTED

Europe Other markets

Good growth driven by Strategic FY20 -6% International Brands and dynamic SALES CANADA +1% innovations Good overall resilience SALES thanks to Germany, UK PERFORMANCE PERFORMANCE and Eastern Europe growing and partially offsetting declines in Spain and France +11% SALES GERMANY Growth driven by acceleration of Off-trade and share gains +2% -5% JAPAN -7% BRAZIL

SALES FRANCE SALES SALES

Strong growth most of the year more UNITED KINGDOM UNITED than offset by weak last quarter

Strong resilience in Reconquer project implemented: -1% second half of the year new organisation effective thanks to dynamic 1 July 2020. Resilience in SALES Off-trade share gains challenging envionment Strong first half of the year, more than offset in second half by On-trade closures. -2% Very strong gin RUSSIA development thanks SALES Dynamic Growth to Beefeater Good price/mix. Dynamic first half of the year but On-trade closures in second half

110 111 OUR RESULTS NATURALLY COMMITTED E R

Alejandro Bolivar Head Bartender at El Floridita Havana, Cuba

A native of Havana, Alejandro has been a mainstay for almost thirty years at this iconic bar frequented by Hemingway in 1932.

PASSION.

As a cantinero, I regularly go to the Havana Club distillery for tastings and training. That’s where I met Asbel, who I know well. Producing sugar cane and making rum is a labour of love, a question of passion.

It’s a state of mind, an outlook that you put in a bottle. That’s what I share with my customers: what is in your glass, what is in this bottle, is the expression of the culture and soul of the Cuban people. CAN This is the spirit I like to help others discover when I visit different places. And I’ve had the chance to travel a lot in my work! SUGA SUGAR CANE SUGAR 112 L OUR RESULTS NATURALLY COMMITTED E R

Asbel Morales Maestro del Ron Cubano Havana, Cuba

One of the very few Maestros del Ron Cubano, Asbel is the alchemist responsible for the Havana Club Professional Edition limited series.

BALANCE.

For Alejandro and I, Cuban rum has a big place in our lives. We were both born in the 1960s, and this singular spirit has been part of our life’s work for a long time. While Cuban rum is diverse, it remains unique.

It’s as connected to the land as it is to those who produce it. On the island of Cuba, sugar cane grows faster than elsewhere, as there is an ideal balance between the temperature and the degree of humidity.

The extracted sugar is of exceptional quality,CAN resulting in very pure molasses.

That’s why Cuban rum can only be made and matured in Cuba! SUGA SUGAR CANE SUGAR M 113 OUR RESULTS NATURALLY COMMITTED Strong resilience Our performance and agility indicators FY20 9,182

in FY20 9,010 8,987

8,682 “The Group has proven very resilient through FY20 and demonstrated 8,448 its agility and ability to keep its supply chains operational, control costs and manage cash. I would like to take this opportunity to praise the exceptional commitment of our teams during this difficult time. NET SALES FY16 TO FY20 FY20 TO FY16 NET SALES

For FY21, Pernod Ricard expects continued uncertainty and volatility, in particular relating to sanitary conditions and their impact on social gatherings, as well as a challenging economic climate. We anticipate a prolonged downturn in Travel Retail but resilience in the Off-trade in

the US and Europe and sequential improvement in China, India and the FY16 FY17 FY18 FY19 FY20

On-trade globally. (MILLIONS OF EUROS)

We will stay on our strategic course and accelerate our digital transformation while maintaining strict discipline, with clear, purpose- based investment decisions. We will harness our agility and ensure we adjust quickly to seize new opportunities. Thanks to our solid €8,448m fundamentals, our teams and our brand portfolio, I am confident that NET SALES Pernod Ricard will emerge from this crisis stronger.” €2,260m PROFIT FROM RECURRING OPERATIONS

ALEXANDRE RICARD Chairman & CEO TOP 10 MARKETS MAINTAINING OR GAINING MARKET SHARE -9.5% ORGANIC SALES DECLINE

114 115 OUR RESULTS NATURALLY COMMITTED

Profit from Recurring Operating margin Group net Profit from Group net profit (MILLIONS OF EUROS) (MILLIONS OF EUROS) Operations (millions of euros Recurring Operations (millions of euros) and as % of net sales)

8,716 8,424 1,577 1,654 NET DEBT 7,851 2,581 1,483 1,511 1,455 1,439 6,962 6,620 2,394 2,358 2,277 1,381 1,393 2,260

1,235 4,137 3,725 3,912 3,884 3,759 28.1% 26.2% 26.6% 26.2% 26.8%

329 PROMOTION INVESTMENTS

FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 CONTRIBUTION AFTER ADVERTISING AND AND ADVERTISING AFTER CONTRIBUTION

(MILLIONS OF EUROS) (MILLIONS OF EUROS)

3,965 3,568 3,648 3,498 3,467 1,179 2,781 2,7092,661 2,792 2,672 1,000 996 2,545 982 2,476 2,546 2,532 2,449 938 SALES BY REGION BY SALES 706 790 735 785 718 605 588 604 626 617 OPERATING PROFIT BY REGION BY PROFIT OPERATING

FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20

Europe Americas Asia/Rest of World Europe Americas Asia/Rest of World

(MILLIONS OF 9-LITRE CASES SOLD) USA ON-TRADE

Americas USA OFF-TRADE 10.3 CANADA

7.6 7.2 48.3m GLOBAL INDIA Asia - TRAVEL CASES SOLD Rest of CHINA RETAIL JAPAN the world 4.2 4.2 3.9 3.7 3.1 GERMANY 2.0 SPAIN 1.2 Europe 0.6 RUSSIA FRANCE 0.3 0.2

MARKET SHARES SHARE IN ALL TOP 10 MARKETS TOP IN ALL SHARE GAINING OR MAINTAINING VALUE VALUE MAINTAINING OR GAINING Mumm Gains Ricard Malibu Losses AbsolutJameson Martell Beefeater Stability Havana Club STRATEGIC INTERNATIONAL BRANDS BRANDS INTERNATIONAL STRATEGIC Ballantine’s Chivas Regal Royal Salute The GlenlivetPerrier-Jouët

Source: latest 12 month Nielsen/IWSR/OTC to June 2020: internal estimates. 116 117 OUR RESULTS NATURALLY COMMITTED Pernod Ricard in the financial market

Despite outperforming in late August 2019 and making a new all-time high (AT END JUNE 2020) (IN EUROS) of €177.25 on 3 September 2019 following the release of better than expected FY19 results and capital return measures, Pernod Ricard shares 5,539

fell by 13.6% during FY20, impacted by an indiscriminate market sell-off 5,324 DIVIDEND 5,121 4,936 induced by the Covid-19 pandemic. The shares performed broadly in line 3.12 2.66* 2.36 with the STOXX Europe 600 Food & Beverage index (-11.6% over the period) 4,237 and slightly underperformed the CAC 40 index (-10.9%). Pernod Ricard 162 2.02 1.88 entered the Euro Stoxx 50 index on 18 September 2020 recognising its status 139 140 as one of the leading listed European companies. 117 100 & CAC 40 OVER FIVE YEARS FIVE OVER 40 CAC &

IN COMPARISON WITH CAC 4O IN DAILY VOLUME OF TRANSACTIONS (THOUSANDS/DAY) FY16 FY17 FY18 FY19 FY20 FY16 FY17FY18 FY19 FY20 SHARE PRICE OF PERNOD RICARD RICARD PERNOD OF PRICE SHARE

July 2019 375 Pernod Ricard is traded on the Paris stock exchange on NYSE Euronext SA Paris Eurolist (compartment A) SRD * A dividend of €2.66 per share for the 2019/2020 financial year will be submitted 5,539 pts 4,936 pts (deferred settlement service). The Pernod Ricard share is eligible for inclusion in the French share savings plan, for the approval of the Shareholders’ Meeting on 27 November 2020. the PEA (Plan d’Epargne en Actions), and for the SRD (deferred settlement service). August 401

September 425

October 509

€140.05 €162.05 November 359

July 2019 June 2020 December 412 17.8% 31.3% Other Institutional US Institutional 428 CAC 40 Pernod Ricard January 2020 Investors Investors

February 635

March 1,004 AS AT 31 MARCH 2020 AS AT

ONE YEAR SHARE PRICE PERFORMANCE PRICE SHARE YEAR ONE -13.6% April 454 PERNOD RICARD 4.1% May 389 Individual shareholders

-10.9% CAPITAL SHARE OF BREAKDOWN June 473 CAC 40 7.5% 12% Groupe Bruxelles Lambert UK Institutional Investors

(1) FY18 FY19 FY20 Number of listed shares at 30 June 265,421,592 265,421,592 265,421,592 2.5% Average number of shares (except treasury shares) - diluted 265,543,003 265,419,549 264,036,831 Board, Management, Employees Stock market capitalisation at 30 June (€m) 37,132 43,012 37,172 and Treasury Shares Group net profit per share - diluted (€) 5.69 6.23 5.45 8.4% Dividend per share (€) 2.36 3.12 2.66(2) French Institutional Investors Average monthly volume of trades 8,879 9,253 10,441 16.4% Highest share price (€) 147.25 163.75 177.25

PERNOD RICARD RICARD PERNOD Paul Ricard SA 120.75 Lowest share price (€) 113.20 129.35 & Others Average share price (€) 128.87 145.96 154.41 Share price at 30 June (€) 139.90 162.05 140.05 STOCK MARKET DATA MARKET STOCK

118 (1) Source: Euronext. (2) The dividend will be submitted for the approval of the Shareholders’ meeting on 27 November 2020. 119 Explore the world of Pernod Ricard

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THANK YOU TO ALL Copies of this document are available on request OF OUR CONTRIBUTORS. from the Group’s Headquarters or it can be downloaded from the Group’s website (www. pernod-ricard.com). This document was filed with Published by the Pernod Ricard Communications Department, the French Financial Markets Authority (AMF) on 5 Cours Paul Ricard, 75380 Paris Cedex 8, France. 23 September 2020. Pernod Ricard is committed to responsibly managing its paper purchases. The paper used for the Integrated Annual Report Director of Publication: Olivier Cavil. Deputy Director of Publication: is PEFC certified. This certification guarantees Emilie Roger-Couffrand. Editor-in-chief: Gwyneth Weller. Photos compliance with a globally recognised set of Credits: Sanja Marušić, Antoine Doyen, Zerb Mellish, Alexis Anice, principles and criteria for forest management. Frédéric Baron-Morin, Nicolas Dumont, iStock, Getty Images, Fotolia, Events organised by our brands comply with local Pernod Ricard Media Library. Creation, Design and Production: laws in the countries where they are held.

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120 Carte Blanche 2010-2020

2O1O — Marcos Lopez — Portraits 2O11 — Denis Rouvre — Blast

2O12 — Eugenio Recuenco — Connected 2O13 — Olaf Breuning — Co-Création

2O14 — Vee Speers — Transmission 2O15 — Li Wei — Vision

2O16 — Omar Victor Diop — Mindset 2O17 — Martin Schoeller — Inspiring Action

2O18 — Kourtney Roy — Go the Extra Mile 2O19 — Stéphane Lavoué — Seriously Convivial

2O20 — Sanja Marušić — Naturally Committed