RI Ruby Tuesday

Regulatory News:

Pernod Ricard (Paris:RI):

Press release - Paris, 31 August 2017

STRONG FY17: GROWTH ACCELERATION+3.6% ORGANIC SALES GROWTH (+4% REPORTED)+3.3% ORGANIC GROWTH IN PRO1 (+5% REPORTED)+13% NET PROFIT2VERY STRONG FREE CASH FLOW GROWTH: +22%SIGNIFICANT DELEVERAGING: NET DEBT/EBITDA RATIO DOWN -0.4 TO 3.0

FY18 GUIDANCE:ORGANIC GROWTH IN PRO1 BETWEEN +3% AND +5%

SALES

Sales for FY17 totalled €9,010m. Organic Sales growth accelerated vs. FY16, to +3.6%, getting closer to the mid-term objective of +4% to +5%. Reported Sales growth was +4%.

The acceleration was driven by the Strategic International Brands, +4% vs. stable in FY16:

• 11 out of 13 brands in growth
• 9 out of 13 brands improving their performance, with in particular a return to growth for Martell +6% and Absolut +2%

In terms of geography, the improvement was driven by the USA, China (back to growth), Eastern Europe and Global Travel Retail:

• Americas: acceleration of growth +7%
• Asia-Rest of World: +1%
• Europe: +3%

Innovation drove 1/3 of overall topline growth.

The Group continued to actively manage its portfolio:

• Acquisition of majority stakes in promising premium brands (Smooth Ambler, Del Maguey and Ungava)
• Disposal of non-core assets (Frïs, Domecq, Glenallachie distillery)

Q4 Sales were €1,962m, +3% in organic growth (+5% reported), broadly consistent with underlying trends in the first 9 months of the year.

RESULTS

FY17 PRO1 was €2,394m, with organic growth of +3.3% and +5% reported. The reported operating margin was up +35bps, thanks to FX (near stable organically.) For FY18, the FX impact on PRO1 is estimated at c.-€125m3.

1 PRO: Profit from Recurring Operations2 Reported Group share3 Based on average FX rates projected on 22 August 2017, particularly a EUR/USD rate of 1.18

Organic PRO4 growth was solid and at the higher end of the annual guidance bracket of +2% to +4% despite unexpected regulatory changes in India. It was driven by:

• Gross margin +4%, improving vs. FY16 thanks to:
  • Mix turning positive due mainly to Jameson and Martell
  • Muted pricing
  • Tight management of Cost Of Goods Sold thanks to operational efficiency initiatives but some adverse one-offs (Grain Neutral Spirit and agave cost increases…)
• A&P: +3% with quasi-stability in ratio at c.19% of Sales
• Tight management of Structure costs: +5% (+3% excluding Other income and expense)

The FY17 corporate income tax rate on recurring items was c.25%, slightly above FY16. The expected rate for FY18 is c. 26%, subject to possible evolution of tax regulation, in particular in the USA and France.

Group share of Net PRO1 was €1,483m, +7% reported vs. FY16.

Group share of Net profit was €1,393m, +13% reported vs. FY16.

FREE CASH FLOW AND DEBT

Free Cash Flow increased very significantly to €1,299m, +22% vs. FY16, resulting in a Net debt decrease of €865m to €7,851m.

The average cost of debt reduced to 3.8% vs. 4.1% in FY16. The expected cost for FY18 is c. 3.8%.

The Net Debt/EBITDA ratio at average rates was 3.05 at 30/06/17, significantly down from 3.4 at 30/06/16.

PROPOSED DIVIDEND

A dividend of €2.02 is proposed for the Annual General Meeting, up 7% from FY16, corresponding to a pay-out ratio of 36%, in line with the customary policy of cash distribution of approximately one-third of Group net profit from recurring operations.

As part of this communication, Alexandre Ricard, Chairman and Chief Executive Officer, declared, “FY17 was a strong year, delivering Profit from Recurring Operations in line with guidance together with an excellent cash performance. These results demonstrate that the strategic direction the Group adopted 2 years ago is delivering: growth is accelerating and diversifying through successful activation of our strategy.

“In FY18, we will continue to implement our roadmap, in particular focusing on digital, innovation and operational excellence. We are confident that we will continue improving our business performance. As a consequence, our guidance for FY18 is organic growth in Profit from Recurring Operations between +3% and +5%.”

1 PRO: Profit from Recurring Operations2 Average EUR/USD rate of 1.09 in FY17 vs. 1.11 for FY16

All growth data specified in this presentation refers to organic growth, unless otherwise stated. Data may be subject to rounding.

A detailed presentation of FY17 Sales and Results can be downloaded from our website: www.pernod-ricard.com

Audit procedures have been carried out on the full-year financial statements. The Statutory Auditors’ report will be issued following their review of the management report.

Definitions and reconciliation of non-IFRS measures to IFRS measures

Pernod Ricard’s management process is based on the following non-IFRS measures which are chosen for planning and reporting. The Group’s management believes these measures provide valuable additional information for users of the financial statements in understanding the Group’s performance. These non-IFRS measures should be considered as complementary to the comparable IFRS measures and reported movements therein.

Organic growth

Organic growth is calculated after excluding the impacts of exchange rate movements and acquisitions and disposals.

Exchange rates impact is calculated by translating the current year results at the prior year’s exchange rates.

For acquisitions in the current year, the post-acquisition results are excluded from the organic movement calculations. For acquisitions in the prior year, post-acquisition results are included in the prior year but are included in the organic movement calculation from the anniversary of the acquisition date in the current year.

Where a business, brand, brand distribution right or agency agreement was disposed of, or terminated, in the prior year, the Group, in the organic movement calculations, excludes the results for that business from the prior year. For disposals or terminations in the current year, the Group excludes the results for that business from the prior year from the date of the disposal or termination.

This measure enables to focus on the performance of the business which is common to both years and which represents those measures that local managers are most directly able to influence.

Free cash flow

Free cash flow comprises the net cash flow from operating activities excluding the contributions to Allied Domecq pension plans, aggregated with the proceeds from disposals of property, plant and equipment and intangible assets and after deduction of the capital expenditures.

“Recurring” indicators

The following 3 measures represent key indicators for the measurement of the recurring performance of the business, excluding significant items that, because of their nature and their unusual occurrence, cannot be considered as inherent to the recurring performance of the Group:

• Recurring free cash flow

Recurring free cash flow is calculated by restating free cash flow from non-recurring items.

• Profit from recurring operations

Profit from recurring operations corresponds to the operating profit excluding other non-current operating income and expenses.

• Group share of net profit from recurring operations

Group share of net profit from recurring operations corresponds to the Group share of net profit excluding other non-current operating income and expenses, non-recurring financial items and corporate income tax on non-recurring items.

Net debt

Net debt, as defined and used by the Group, corresponds to total gross debt (translated at the closing rate), including fair value and net foreign currency assets hedging derivatives (hedging of net investments and similar), less cash and cash equivalents.

EBITDA

EBITDA stands for “earnings before interest, taxes, depreciation and amortization”. EBITDA is an accounting measure calculated using the Group's profit from recurring operations excluding depreciation and amortization on operating fixed assets.

About Pernod Ricard

Pernod Ricard is the world’s n°2 in wines and spirits with consolidated Sales of €9,010 million in FY17. Created in 1975 by the merger of Ricard and Pernod, the Group has undergone sustained development, based on both organic growth and acquisitions: Seagram (2001), Allied Domecq (2005) and Vin&Sprit (2008). Pernod Ricard holds one of the most prestigious brand portfolios in the sector: Absolut Vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur, Mumm and Perrier-Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo and Kenwood wines. Pernod Ricard employs a workforce of approximately 18,500 people and operates through a decentralised organisation, with 6 “Brand Companies” and 86 “Market Companies” established in each key market. Pernod Ricard is strongly committed to a sustainable development policy and encourages responsible consumption. Pernod Ricard’s strategy and ambition are based on 3 key values that guide its expansion: entrepreneurial spirit, mutual trust and a strong sense of ethics.

Pernod Ricard is listed on Euronext (Ticker: RI; ISIN code: FR0000120693) and is part of the CAC 40 index.

Appendices

Emerging Markets

Asia-Rest of World   Americas   Europe Algeria   Malaysia Argentina Albania Angola Mongolia Bolivia Armenia Cambodia Morocco Brazil Azerbaijan Cameroon Mozambique Caribbean Belarus China Namibia Chile Bosnia Congo Nigeria Colombia Bulgaria Egypt Persian Gulf Costa Rica Croatia Ethiopia Philippines Cuba Georgia Gabon Senegal Dominican Republic Hungary Ghana South Africa Ecuador Kazakhstan India Sri Lanka Guatemala Kosovo Indonesia Syria Honduras Latvia Iraq Tanzania Mexico Lithuania Ivory Coast Thailand Panama Macedonia Jordan Tunisia Paraguay Moldova Kenya Turkey Peru Montenegro Laos Uganda Puerto Rico Poland Lebanon Vietnam Uruguay Romania Madagascar Zambia Venezuela Russia Serbia Ukraine

Dynamic portfolio management

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House of Brands effective 1 July 2016

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Strategic International Brands’ organic Sales growth

  Volumes

FY17

  Organic Sales growth

FY17

  Volumes   Price/mix (in 9Lcs millions)   Absolut 11.2 2% 3% -1% Chivas Regal 4.2 -3% -2% -1% Ballantine's 6.7 3% 4% -2% Ricard 4.8 4% 5% -1% Jameson 6.5 15% 13% 2% Havana Club 4.3 6% 7% -1% Malibu 3.6 5% 4% 1% Beefeater 2.8 5% 4% 1% Martell 2.1 6% 5% 1% The Glenlivet 1.0 2% 1% 1% Royal Salute 0.2 -3% 2% -5% Mumm 0.8 3% 2% 0% Perrier-Jouët 0.3 11% 8% 3% Strategic International Brands 48.6 4% 5% 0%

Sales Analysis by Region

                          Net Sales

(€ millions)

FY16 FY17 Change Organic Growth Group Structure Forex impact             Americas 2,476 28.5% 2,661 29.5% 185 7% 171 7% (7) 0% 21 1% Asia / Rest of World 3,498 40.3% 3,568 39.6% 70 2% 48 1% (1) 0% 24 1% Europe 2,709   31.2% 2,781   30.9% 72   3% 91   3% 7   0% (25)   -1% World 8,682   100.0% 9,010   100.0% 327   4% 310   4% (2)   0% 19   0%                                       Net Sales

(€ millions)

Q4 2016 Q4 2017 Change Organic Growth Group Structure Forex impact   Americas 577 30.9% 628 32.0% 50 9% 33 6% (1) 0% 18 3% Asia / Rest of World 657 35.1% 690 35.2% 33 5% 11 2% (1) 0% 23 3% Europe 635   34.0% 645   32.9% 10   2% 8   1% (3)   0% 5   1% World 1,869   100.0% 1,962   100.0% 93   5% 52   3% (5)   0% 46   2%                                       Net Sales

(€ millions)

H2 2016 H2 2017 Change Organic Growth Group Structure Forex impact   Americas 1,106 29.7% 1,230 31.1% 124 11% 76 7% (2) 0% 49 4% Asia / Rest of World 1,479 39.7% 1,527 38.7% 48 3% (4) 0% (1) 0% 53 4% Europe 1,139   30.6% 1,192   30.2% 53   5% 41   4% (3)   0% 15   1% World 3,725   100.0% 3,949   100.0% 225   6% 113   3% (6)   0% 118   3%

As of 1 July 2016, Bulk Spirits are allocated by Region according to the Regions' weight in the Group

Summary Consolidated Income Statement

(€ millions)   FY16   FY17   Change               Net sales   8,682   9,010   4% Gross Margin after logistics costs   5,371   5,602   4% Advertising and promotion expenses   (1,646)   (1,691)   3% Contribution after A&P expenditure   3,725   3,912   5% Structure costs   (1,448)   (1,517)   5% Profit from recurring operations   2,277   2,394   5% Financial income/(expense) from recurring operations (422) (376) -11% Corporate income tax on items from recurring operations (455) (509) 12% Net profit from discontinued operations, non-controlling interests and share of net income from associates   (20)   (27)   37% Group share of net profit from recurring operations   1,381   1,483   7%   Other operating income & expenses (182) (163) NA Financial income/(expense) from non-recurring operations (10) 3 NA Corporate income tax on items from non recurring operations 46 71 NA               Group share of net profit   1,235   1,393   13% Non-controlling interests   20   28   40% Net profit   1,255   1,421   13%

Profit from Recurring Operations by Region

World                                                               (€ millions) FY16 FY17 Change Organic Growth Group Structure Forex impact   Net sales (Excl. T&D) 8,682 100.0% 9,010 100.0% 327 4% 310 4% (2) 0% 19 0% Gross margin after logistics costs 5,371 61.9% 5,602 62.2% 231 4% 192 4% (4) 0% 42 1% Advertising & promotion (1,646) 19.0% (1,691) 18.8% (44) 3% (47) 3% (0) 0% 3 0% Contribution after A&P 3,725   42.9% 3,912   43.4% 187   5% 145   4% (4)   0% 45   1% Profit from recurring operations 2,277   26.2% 2,394   26.6% 118   5% 76   3% (6)   0% 47   2%   Americas                                       (€ millions) FY16 FY17 Change Organic Growth Group Structure Forex impact   Net sales (Excl. T&D) 2,476 100.0% 2,661 100.0% 185 7% 171 7% (7) 0% 21 1% Gross margin after logistics costs 1,639 66.2% 1,790 67.3% 151 9% 114 7% (3) 0% 40 2% Advertising & promotion (509) 20.5% (551) 20.7% (42) 8% (39) 8% (0) 0% (3) 1% Contribution after A&P 1,130   45.6% 1,239   46.6% 109   10% 75   7% (3)   0% 37   3% Profit from recurring operations 706   28.5% 790   29.7% 84   12% 55   8% (4)   -1% 33   5%   Asia / Rest of World                                       (€ millions) FY16 FY17 Change Organic Growth Group Structure Forex impact   Net sales (Excl. T&D) 3,498 100.0% 3,568 100.0% 70 2% 48 1% (1) 0% 24 1% Gross margin after logistics costs 2,071 59.2% 2,102 58.9% 31 2% 22 1% (0) 0% 9 0% Advertising & promotion (621) 17.8% (618) 17.3% 3 -1% 3 0% 0 0% 1 0% Contribution after A&P 1,450   41.5% 1,484   41.6% 35   2% 25   2% (0)   0% 10   1% Profit from recurring operations 982   28.1% 1,000   28.0% 18   2% 13   1% (0)   0% 5   1%   Europe                                       (€ millions) FY16 FY17 Change Organic Growth Group Structure Forex impact   Net sales (Excl. T&D) 2,709 100.0% 2,781 100.0% 72 3% 91 3% 7 0% (25) -1% Gross margin after logistics costs 1,662 61.3% 1,710 61.5% 49 3% 56 3% (0) 0% (7) 0% Advertising & promotion (516) 19.1% (522) 18.8% (5) 1% (11) 2% 0 0% 6 -1% Contribution after A&P 1,145   42.3% 1,188   42.7% 43   4% 45   4% (0)   0% (2)   0% Profit from recurring operations 588   21.7% 604   21.7% 16   3% 8   1% (1)   0% 9   2%

As of 1 July 2016, Bulk Spirits are allocated by Region according to the Regions' weight in the Group

Foreign Exchange Impact

              Forex impact FY17

(€ millions)

Average rates evolution On Net Sales On Profit from Recurring Operations   FY16   FY17   %                 Pound sterling GBP 0.75 0.86 14.8% (60) 16 US dollar USD 1.11 1.09 -1.7% 40 19 Chinese yuan CNY 7.15 7.42 3.8% (28) (19) Russian rouble RUB 74.91 66.39 -11.4% 23 14 Other           45 18 Total           19 47

Note : Impact on PRO includes strategic hedging on Forex

For FY18, the estimated FX impact on PRO is c. €125m, based on average FX rates for full FY18 projected on 22 August 2017, particularly EUR/USD = 1.18

Sensitivity of profit and debt to EUR/USD exchange rate

FY17 Estimated impact of a 1% appreciation of the USD and linked currencies(1)

  Impact on the income statement(2) (€ millions) Profit from recurring operations +17 Financial expenses (3) Pre-tax profit from recurring operations +15       Impact on the balance sheet (€ millions) Increase/(decrease) in net debt +52   (1) CNY, HKD (2) Full-year effect

Balance Sheet

Assets   6/30/2016   6/30/2017 (€ millions) (Net book value) Non-current assets Intangible assets and goodwill 17,572 17,152 Tangible assets and other assets 3,233 3,028 Deferred tax assets 2,505 2,377 Total non-current assets 23,310 22,557   Current assets Inventories 5,294 5,305 of which aged work-in-progress 4,364 4,416 of which non-aged work-in-progress 73 72 Receivables (*) 1,068 1,134 Trade receivables 998 1,059 Other trade receivables 70 74 Other current assets 251 270 Other operating current assets 240 264 Tangible/intangible current assets 11 6 Tax receivable 92 111 Cash and cash equivalents and current derivatives 577 700 Total current assets 7,282 7,521   Assets held for sale 6 10   Total assets 30,598 30,088   (*) after disposals of receivables of: 520 557     Liabilities and shareholders’ equity 6/30/2016 6/30/2017 (€ millions)   Group Shareholders’ equity 13,337 13,706 Non-controlling interests 169 180 of which profit attributable to non-controlling interests 20 28 Total Shareholders’ equity 13,506 13,886   Non-current provisions and deferred tax liabilities 4,718 4,524 Bonds non-current 7,078 6,900 Non-current financial liabilities and derivative instruments 341 522 Total non-current liabilities 12,137 11,946   Current provisions 167 159 Operating payables 1,688 1,826 Other operating payables 909 935 of which other operating payables 592 619 of which tangible/intangible current payables 317 316 Tax payable 101 156 Bonds - current 1,884 94 Current financial liabilities and derivatives 207 1,087 Total current liabilities 4,955 4,256   Liabilities held for sale - - Total liabilities and shareholders' equity 30,598 30,088

Analysis of Working Capital Requirement

(€ millions)   June

2015

  June

2016

  June

2017

    FY16 WC change*   FY17 WC change*   Aged work in progress 4,430 4,364 4,416 190 148 Advances to suppliers for wine and ageing spirits 8 5 5 (2) Payables on wine and ageing spirits 107 109 107 4 1 Net aged work in progress 4,331 4,260 4,314 184 147   Trade receivables before factoring/securitization 1,674 1,517 1,617 (98) 127 Advances from customers 3 2 16 (1) 14 Other receivables 305 305 333 27 60 Other inventories 847 857 818 43 (3) Non-aged work in progress 73 73 72 4 (1) Trade payables and other 2,208 2,168 2,323 44 191 Gross operating working capital 689 582 502 (68) (22)   Factoring/Securitization impact 591 520 557 61 (46) Net Operating Working Capital 98 62 (56) (7) (68)   Net Working Capital 4,428 4,322 4,258 178 79   * at constant FX rate and reclassifications Of which recurring variation 211 65 Of which non recurring variation (34) 14

Net Debt

(En millions d'euros)   30/06/2016   6/30/2017     Current   Non-current   Total   Current   Non-current   Total Bonds   1,884   7,078   8,962   94   6,900   6,993 Syndicated loan -   -   - -   319   319 Commercial paper 45 - 45 630 - 630 Other loans and long-term debts 98 257 355 441 161 601 Other financial liabilities   143   257   400   1,071   480   1,551 GROSS FINANCIAL DEBT   2,027   7,335   9,362   1,165   7,379   8,545 Fair value hedge derivatives – assets - (77) (77) (6) (17) (22) Fair value hedge derivatives – liabilities - - - - 7 7 Fair value hedge derivatives   -   (77)   (77)   (6)   (9)   (15) Net investment hedge derivatives – assets - - - - - - Net investment hedge derivatives – liabilities - - - - - - Net investment hedge derivatives   -   -   -   -   -   - Net asset hedging derivative instruments – assets - - - (2) - (2) Net asset hedging derivative instruments – liabilities - - - - - - Net asset hedging derivative instruments   -   -   -   (2)   -   (2) Financial debt after hedging   2,027   7,258   9,285   1,158   7,370   8,528 Cash and cash equivalents   (569)   -   (569)   (677)   -   (677) Net financial debt 1,458 7,258 8,716 481 7,370 7,851

Change in Net Debt

(€ millions)   30/06/2016   30/06/2017   Operating profit 2,095 2,232 Depreciation and amortisation 219 219 Net change in impairment of goodwill, PPE and intangible assets 107 75 Net change in provisions (76) (59) Retreatment of contributions to pension plans acquired from Allied Domecq 43 7 Changes in fair value on commercial derivatives and biological assets (4) (14) Net (gain)/loss on disposal of assets (59) 6 Share-based payments 32 34 Self-financing capacity before interest and tax 2,358 2,499 Decrease / (increase) in working capital requirements (178) (79) Net interest and tax payments (801) (771) Net acquisitions of non financial assets and others (317) (350) Free Cash Flow 1,061 1,299 of which recurring Free Cash Flow 1,200 1,471 Net disposal of financial assets and activities, contributions to pension plans acquired from Allied Domecq (85) 50 Dividends paid (497) (511) (Acquisition) / Disposal of treasury shares and others (18) (36) Decrease / (increase) in net debt (before currency translation adjustments) 461 802 Foreign currency translation adjustment (157) 62 Decrease / (increase) in net debt (after currency translation adjustments) 305 865 Initial net debt (9,021) (8,716) Final net debt (8,716) (7,851)

Debt Maturity at 30 June 2017

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Gross Debt Hedging at 30 June 2017

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Bond details

Currency   Par value   Coupon   Issue date   Maturity date   EUR € 850 m 2.000% 3/20/2014 6/22/2020 € 650 m 2.125% 9/29/2014 9/27/2024 € 500 m 1.875% 9/28/2015 9/28/2023 € 600 m 1.500% 5/17/2016 5/18/2026   USD $ 1,000 m 5.750% 4/7/2011 4/7/2021 $ 1,500 m 4.450% 10/25/2011 1/15/2022 $ 1,650 m o/w: 1/12/2012 $ 800 m at 10.5 years 4.250% 7/15/2022 $ 850 m at 30 years 5.500%   1/15/2042 $ 201 m Libor 6m + spread 1/26/2016 1/26/2021 $ 600 m 3.250% 6/8/2016 6/8/2026

Deleveraging

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Diluted EPS calculation

(x 1,000)   FY16   FY17     Number of shares in issue at end of period 265,422 265,422 Weighted average number of shares in issue (pro rata temporis) 265,422 265,422 Weighted average number of treasury shares (pro rata temporis) (1,427) (1,189) Dilutive impact of stock options and performance shares 1,638 1,245 Number of shares used in diluted EPS calculation 265,633 265,478   (€ millions and €/share) FY16 FY17 reported

∆

Group share of net profit from recurring operations 1,381 1,483 +7% Diluted net earnings per share from recurring operations 5.20 5.58 +7%

Upcoming Communications

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(1) The above dates are indicative and are liable to change

View source version on businesswire.com: http://www.businesswire.com/news/home/20170830006305/en/

Pernod RicardJulia Massies, +33 (0)1 41 00 41 07VP, Financial Communication & Investor RelationsorAdam Ramjean, +33 (0)1 41 00 41 59Investor Relations ManagerorEmmanuel Vouin, +33 (0)1 41 00 44 04Press Relations ManagerorAlison Donohoe, +33 (0)1 41 00 44 63Press Relations Manager