2019 Report Welcome to our Gender Pay Gap Report Beam Suntory is an employer and values diversity as a key factor of our global success. As a world leader in premium spirits, Beam Suntory inspires human connections. Our employees are custodians of our world-class portfolio of historic and innovative brands. As our #1 priority, our people are encouraged to embrace our unique, entrepreneurial culture to “Unleash Their Spirit,” become a part of our history, and make their own.

Our UK business

Beam Suntory’s UK business has five distillery sites: Auchentoshan, Ardmore, Glen Garioch, Bowmore and Laphroaig. We also have a bottling plant and warehousing sites in Glasgow, Bellshill and Linlithgow, as well as two corporate . At the time of publication, we have 387 employees working across Beam Suntory UK. Our people are the pride of our business and our key competitive advantage, and many of our employees in the UK bottling, distilling and maturation sites have tenures of more than 20, 30 and 40 years. The passion and loyalty of our employees cannot be underestimated. We offer our employees both financial and non-financial benefits that are fair for everyone. In addition to base , our employees enjoy a set of company benefits, awards and recognition programs. These benefits cover health and wellness, work/life balance, flexible working, , life and a brand ambassador program. Beam Suntory remains committed to providing equal rewards and investing in opportunities for all our employees, regardless of their gender. We are continuing our efforts to achieve gender equality across all levels of our business, and we have a clear set of ambitious targets in this area, as we believe that inclusive and diverse teams drive innovation and achieve more.

Elena Boluda HR Director Beam Suntory

I confirm that the information included in this report is accurate. 3 April 2020 Gender Pay Gap Results

% % 11.5 12.8 No. of UK employees

Difference in Difference in Median Hourly Pay Mean Hourly Pay Total 387 139 % % -257.1 2.9 248

Difference in Difference in Median Bonus Mean Bonus

Quartile Data: Proportion of Men/Women in each quartile band

31.5% 25.8% 34.1% 46.1%

53.9% 68.5% 74.2% 65.9%

Lower Lower Upper Upper Quartile Middle Quartile Middle Quartile Quartile

Proportion of Men/Women receiving bonus 96.4% 91.5% Understanding Our Results

This report focuses on gender pay, which is the difference in pay between all men and women across the organisation. It does not reflect equal pay, which refers to the difference in pay between men and women in comparable roles (). Beam Suntory has robust reward policies in place that are based on market competitive principles. These policies foster equal pay for equivalent roles, regardless of gender. The gender pay gap that we have identified largely reflects the significantly higher number of men working within manufacturing roles, which make up roughly 84% of our UK workforce. These roles have historically attracted more male applicants than female applicants. As a result of the variable shift patterns attached to these roles, these employees also receive a shift allowance premium, which impacts the average salary for our male employees. Since 2018, there has been a reduction in our Median Pay gap (from 13.5% in 2018 to 11.5% in 2019), which is more representative of actual compensation than Mean Pay. For other areas of our business, we have a more even split between male and female employees, including across the senior roles based within the UK. However, we do see a difference in the tenure of these roles. There are more men at a senior level with longer tenures, and this means they are more likely to be eligible for long-term incentives, which contributes to the mean bonus gap. However, we are pleased to report that this gap has reduced significantly since 2018 (from 16.9% in 2018 to 2.9% in 2019). This change is due to an increase in the female population receiving long-term incentives (88.9% in 2018 to 96.4% in 2019), and also a 50% increase in LTI pay-out average, per each female employee, compared to the previous year. The median bonus gap is driven predominately by our production employees, the majority of whom are male and who as part of their overall reward package receive a lower percentage bonus award when compared with the percentage bonus awarded to salaried positions across the UK business. Looking Ahead

We have taken many steps in the right direction, but there is still more to do. We also understand that meaningful change takes time and that must happen both outside and inside Beam Suntory. During 2019, our global D&I team continued to implement new measures and initiatives to ensure that diversity of thought, experience and culture is at the forefront of our business, turning our team’s individuality into insights and capabilities that can drive individual and business growth. At a global level, we continue to prioritize three primary strategic objectives in this area: increasing the number of women in leadership positions, increasing and retaining multi-cultural talent, and creating an inclusive mindset. We have comprehensive programs in place around the world and at all levels of the business, we have launched D&I scorecards for senior leaders to use in tracking the goals and self-assessments of their teams, and we have enhanced our performance management, talent review and talent acquisition processes to ensure they are as objective as possible. In December 2019, we also announced a significant expansion in our global flexible workplace and benefits globally, effective 1st January 2020, as part of a sweeping effort to foster a more diverse and inclusive culture. Primary caregivers are now entitled to at least 26 weeks of fully paid leave for the birth or adoption of a child, with secondary caregivers receiving four weeks’ paid leave. This enhanced benefit places Beam Suntory in the top tier of global company parental leave policies. In addition, an expanded global flexible workplace policy debuting in 2020 is designed to promote increased productivity, creativity and collaboration. Employees will have the opportunity to work remotely one day each week, with flexible and compressed working and -sharing opportunities available globally. Employees will also be eligible to work compressed weeks, and under a new Short Fridays benefit, anyone who has completed their required work hours and business needs will be able to depart the at 2:00pm on Fridays year-round. We are proud of how far we have come, and we are looking forward to building on these initiatives in the future.