Pernod Ricard Achieved a Good Performance in HY1 2012/13

  Pernod Ricard Achieved a Good Performance in HY1 2012/13

Business Wire

PARIS -- February 14, 2013

Regulatory News:

Press release - Paris, 14 February 2013

In summary:

In the first half of the 2012/13 financial year Pernod Ricard (Paris:RI)
achieved a good performance despite a less buoyant environment than in 2011/12
and taking into account major technical effects^(1) (estimated impact of €
(72) million on profit from recurring operations).

                               Growth
                                                                   organic,
                          €m          reported    organic    excl.
                                                                   technical
                                                                   effects^(1)
Net sales                 4,907       +6%            +3%           +5%
Profit from
recurring              1,459       +6%         +1%        +7%
operations
                                                                   

The growth motors of the Group remain unchanged:

  *Premiumisation and Innovation
  *Top 14 and Indian whiskies
  *Emerging markets and the United States

Pierre Pringuet, Chief Executive Officer and Vice President of the Board of
Pernod Ricard, comments: “The good performance achieved this semester confirms
the soundness of our business model: a comprehensive portfolio of first-class
international and local brands, a premiumisation strategy enhanced by a strong
innovation policy, and global exposure allowing us to capture all growth
relays. We are confident in continuing our growth mid-term, and we confirm our
guidance of organic growth in profit from recurring operations close to +6%
for the full financial year 2012/13.”

(1) France pre-buying and Chinese New Year: negative impacts of €(114)
million on sales and €(72) million on profit from recurring operations
(2) Organic growth
(3) Retail price > USD 17 for spirits and > USD 5 for wine
(4) Net debt calculated by translating the non EU-denominated portion at
average forex rates for the financial year

The Pernod Ricard Board of Directors’ meeting of 13 February 2013 chaired by
Danièle Ricard approved the financial statements for the first half-year
2012/13 financial period ended 31 December 2012.

HY1 Sales and Highlights

Good sales growth was reported in the first six months of the 2012/13
financial year despite a less buoyant economic environment than in FY 2011/12.

The sustained value growth of Pernod Ricard’s strategic brands continued:

  *excellent growth for Martell and Jameson
  *good performance for white spirits but slowdown for Scotch whiskies in HY1
    (high comparatives)
  *continued favourable price/mix for the Top 14
  *Dynamism of Indian whiskies with a strengthening of our position in the
    premium segment

Growth remained strong in emerging markets (+14%^(2)):

  *Asia (+13%^(2)): China (+18%^(2)) and India (+17%^(2)) are still the main
    growth drivers
  *continued dynamism in Eastern Europe

Mature markets, however, posted a contrasted performance:

  *solid growth in the US (+9%^(2))
  *significant decline^(2) in France largely due to technical and temporary
    effects;
    the underlying trend is -3%
  *environment still challenging in Southern Europe (particularly Spain)

HY1 and Q2 Sales

Half-year sales totalled €4,907 million (excl. tax and duties),  representing
growth of +6%, resulting from:

  *organic growth of +€116 million, an increase of +3% (+5% excluding
    technical effects^(1))
  *a negative Group structure effect of €(40) million (-1%), primarily due
    to the disposal of certain Canadian activities in 2011/12
  *a highly favourable foreign exchange effect of €216 million (+5%)
    primarily due to a stronger USD and CNY

Consolidated sales for the 2^nd quarter of 2012/13 increased +3% to €2,703
million, resulting from:

  *a +1% organic growth
  *a negative Group structure effect of -1%, primarily due to the disposal of
    certain Canadian activities in 2011/12
  *a foreign exchange effect of +3% primarily due to a stronger USD and CNY

Excluding technical effects^(1), organic growth was +5% in the 2^nd quarter,
in line with that of the 1^stquarter.

Sales Analysis by Region

Asia/Rest of the World

Growth remains dynamic (+11%^(2)), and Pernod Ricard is strengthening its
leadership.

Martell (+25%^(2)) achieved an excellent performance. The brand was only
marginally impacted by the later Chinese New Year due to the implementation of
a commercial strategy of anticipating shipments to pre-empt this key period.

Sales of Indian whiskies (+21%^(2)) remain very dynamic. PR India thus
strengthened its leadership in the most dynamic local segments, gaining 4
points of market share year-on-year in Premium Admix thanks mainly to the
success of new products (Blenders Pride Reserve Collection and Royal Stag
Barrel Select).

The marginal growth of the Top 14 Scotch whiskies was due to a challenging
South Korean market and a conjunctural decline in China.

New growth drivers (Absolut, champagne, wine) continued to develop positively.

Imperial posted solid growth (+12%^(2)), and the brand gained market share.
The HY1 performance was bolstered by price hikes on 1 January 2013.

Difficulties persist for 100 Pipers (-7%^(2)), particularly in Thailand.

The performance of the region’s main markets may be summarised as follows:

  *China: growth remains very dynamic (+18%^(2)), driven by Martell which
    continues to gain market share. Scotch whiskies experienced conjunctural
    difficulties in a market down in volumes. Absolut and Jacob’s Creek
    continued their very strong growth.
  *Vietnam: Chivas, Martell and Ballantine’s continued to grow rapidly.
  *India: the dynamic growth of local whiskies (+18%^(2)) continues,
    bolstered by premiumisation. 100 Pipers and the Top 14 (Chivas, Absolut
    and The Glenlivet) experienced strong growth.
  *Africa/Middle East: growth (+13%^(2)) was driven by the Top 14 and the
    promising start of new subsidiaries (Angola, Kenya, Morocco, etc.).
  *Travel Retail: continued dynamic activity (+15%^(2)) was driven by premium
    brands.
  *South Korea: growth was enhanced by price increases introduced on 1
    January 2013. The structural decline of the traditional on-trade
    continued, and the rapidly-expanding modern on-trade channel drove the
    rapid development of Absolut (+64%^(2)).
  *Thailand: the environment remained unfavourable for 100 Pipers, but the
    strong dynamism of the Top 14 (+13%^(2)) continued.
  *Japan: strong growth (+3%^(2)) was driven by the Top 14 (+7%^(2)),
    particularly champagnes.
  *Australia: growth was strong for the Top 14, particularly Mumm. The
    high-value strategy for Priority Premium Wines is still in process.

Americas

Solid growth (+6%^(2)) was driven by the US.

The Top 14 (+7%^(2)), propelled in particular by Jameson, The Glenlivet,
Absolut and Malibu, was the main growth driver.

Priority Premium Wines (+2%^(2)) continued to grow, led by Canada.

Among Key Local Brands, Something Special (Venezuela) and Passport (Mexico)
experienced double-digit growth.

The performance of the region’s main markets can be summarised as follows:

  *US: solid growth, with (i)dynamic consumption for Pernod Riacrd products
    (Nielsen and NABCA), (ii)+9%^(2) growth of the Top 14, the main growth
    driver with price/mix of +3%^(2), and (iii)good overall performance of
    the other brands (Avión, Mumm CuvéeNapa,Seagram’sGin,promising launch
    of Oddka).
    Strong dynamism of the Premiumbrands: Absolut (+1%^(2), recent price
    increases in 6 states; upcoming launch of Elyx), Jameson (+24%^(2), still
    the main growth driver), Malibu (+10%^(2), confirmed success of
    innovations launched in the past year), Beefeater (+16%^(2), very good
    performance, led by Beefeater 24, in a context of renewed category
    growth), Perrier Jouët (+17%^(2), excellent volume progression with very
    favourable price/mix), The Glenlivet (+21%^(2), growth remains very
    dynamic; pricing power intact with price increases taken in the fall).
  *Brazil: underlying trends are favourable for the strategic brands, with
    Nielsen figures showing solid value growth for Absolut (+20%), Chivas
    (+12%) and Ballantine’s (+25%). Nonetheless, sales declined due to a lag
    in shipments/depletions (tax reform, reductions in market inventories,
    etc.).
  *Mexico: the new business model is now in place and has resulted in renewed
    growth (+8%^(2) in Q2, +5%^(2) over 6 months). The price/mix effect was
    very favourable, especially on the Top 14 (+7%^(2)).
  *Canada: growth was driven by wines (particularly Jacob’s Creek), as well
    as Wiser’s, The Glenlivet and Jameson.
  *Travel Retail: sales were stable on a high base of comparison. A clearly
    improved trend was noted in Q2, which will continue into HY2.
  *In most other markets, particularly the Andean markets, performance was
    strong.

Europe excluding France

The performance of the region (-1%^(2)) confirmed the bipolarisation of a
dynamic Eastern Europe and a Western Europe that remains challenging.

The Top 14 was the main growth driver (+2%^(2)), led by Jameson, Chivas,
Absolut, Havana Club and Beefeater, despite a challenging first six months for
Ballantine’s (-7%^(2)).

Priority Premium Wines were stable^(2) overall, marking an improved trend
compared to previous years, particularly due to Campo Viejo.

Key Local Brands (-1%^(2)) reported contrasting performances. ArArAt and
Olmeca (Russia), Seagram’s Gin (Spain) and Wyborowa (Poland) experienced
strong growth. The first six months proved more challenging for Ramazzotti
(commercial dispute in Germany), Ruavieja (Spain) and Becherovka (temporary
ban on the sale of spirits in Czech Republic market in the last two weeks of
September).

The pace of growth was sustained in Eastern Europe (+12%^(2)):

  *Russia: the principal market contributing to growth, was led by Jameson,
    ArArAt, Chivas, Olmeca and Ballantine’s
  *Poland: the slight sales decline^(2) was primarily due to local standard
    vodkas. Also noteworthy are the strong development of Wyborowa and
    Passport, sustained growth of Chivas, and the difficulties for
    Ballantine’s (high-value strategy with a price/mix +5%^(2))
  *Czech Republic: decline (-15%^(2)) due to the ban on spirits sales (two
    weeks at end- September) due to public health issues
  *Ukraine: growth was driven by Jameson, Absolut, Ballantine’s and ArArAt
  *Kazakhstan: rapid development (+29%^(2)) in this highly promising market

Western Europe declined -4%^(2), in a challenging economic climate:

  *Southern Europe was the primary reason for this decline
  *In Spain, despite a more accentuated decline (-9%^(2)) compared to the
    trend of previous years, Pernod Ricard gained market share and has seized
    leadership in value.

France

The decline was largely exacerbated by technical effects…

  *significant pre-buying in HY1 2011/12 had an impact of €98 million on
    sales, resulting in unfavourable comparatives for HY1 2012/13
  *excluding this effect, sales declined -11%^(2)

… and conjunctural effects:

  *residual inventory reduction adversely affected Q1 2012/13
  *at 31 December 2012, inventories were lower at a number of distributors.
    The latter gave priority to beer inventories ahead of the excise duty hike
    applied to this category as of 1 January 2013
  *promotional offers (“50% off”) were not repeated by major retailers in HY1

Taking account of these effects, the underlying sales trend was a decline of
-3%^(2) in HY1.

Pernod Ricard’s portfolio outperformed a market impacted by the excise duty
hike: Nielsen figures show Pernod Ricard volumes down -1% in a market down
-3%. Specifically:

  *Ricard proved more resilient than its category (Ricard -3%, aniseed -5%)
  *certain brands suffered: Chivas (-10%), Malibu: (-14%)
  *other strategic brands reported a strong performance: Ballantine’s (+4%),
    Jameson (+5%), Absolut (+10%) and Havana Club (+14%)…
  *…as did other tactical brands: Clan Campbell (+8%), Long John (+6%),
    Aberlour (+7%) and Suze (+2%)

As a result, Pernod Ricard has gained market share.

Sales realised in the Euro zone were limited to 20% of Group sales in the HY1
2012/13.

Sales Analysis by Brand

Top 14

The Top 14 grew +4%^(2) in value. Excluding technical effects^(1), growth was
+7%^(2), with price/mix of +8%^(2).

Martell (+23%^(2)) and Jameson (+13%^(2)) continued to report an excellent
performance.

White spirits posted a strong performance:

  *Absolut continued its recovery in the US and its strong development in
    emerging markets
  *Havana Club recorded an improved trend, driven by Europe (Germany in
    particular)
  *Beefeater experienced good growth, especially in the US, Spain and Russia

Scotch whiskies remained virtually stable^(2) compared to high comparatives
(HY1 2011/12 growth was +12%^(2)):

  *The Glenlivet posted very favourable price/mix and outstanding growth
  *but slower growth was noted in Asia (conjunctural in China, structural in
    Korea) and Spain…
  *… and a number of unfavourable technical effects (significant Duty Free
    shipments and French pre-buying in HY1 2011/12, etc.)

The decline^(2) of Ricard due to lower consumption in France (excise duty
hike), was significantly exacerbated by technical effects (pre-buying in HY1
2011/12, promotional phasing).

Champagnes posted a contrasted performance:

  *strong performance of Perrier-Jouët (Americas, Asia and France)
  *decline of Mumm (primarily in Western Europe)

Priority Premium Wines

Priority Premium Wines grew +2%^(2) in value due to the high-value strategy
and geographic diversification of these brands.

Campo Viejo and Jacob’s Creek grew in value, while Graffigna and Brancott
Estate reported a decline^(2) in sales.

More significantly, in HY1 2012/13 these brands posted double-digit^(2) growth
in their contribution after advertising and promotion expenditure.

18 key local brands

Overall growth^(2) of the 18 key local spirits brands remains very strong.

The momentum of local Indian whiskies continued (+21%^(2)) with significant
price/mix.

Passport (+14%^(2)), which targets in particular the emerging middle class,
posted sustained growth in Mexico and Russia.

Other brands also posted double-digit growth^(2): ArArAt (+24%^(2)), Olmeca
(+21%^(2)) and Something Special (+32%^(2)).

The Imperial brand, boosted by the price hike in Korea introduced on 1 January
2013, grew +12%^(2), while difficulties persisted for 100 Pipers (-7%^(2)). In
addition, the technical effect relating to French pre-buying had an
unfavourable impact on brands particularly exposed to the French market
(Pastis 51, Clan Campbell).

Premium brands^(3)  now represent 76% of Group sales, an increase of three
points compared to the previous financial year.

Analysis of Profit from Recurring Operations

Gross margin (after logistics costs) was €3,096 million, an increase of
+3%^(2), with a gross margin to sales ratio which substantially improved to
63.1% compared to 61.7% in the previous year excluding technical effects^(1) )
(+146bps). This was the combined result of:

  *a favourable portfolio mix: sales growth^(2) of the Top 14 exceeded that
    of the Group,
  *a favourable quality mix: +4% on average for the Top 14,
  *price increases (+4% on average for the Top 14),
  *tight control of input costs (+3% excluding mix effects),
  *a favourable foreign exchange effect of approximately +50 bps.

Advertising and promotion expenditure reached €(888) million, an increase of
+4%^(2).

Investments were allocated to priority brands and markets:

  *investment to support the Top 14 increased at a more rapid pace than the
    portfolio average: +5%^(2)
  *double-digit growth^(2) was recorded in the US and emerging markets
  *investment was optimised in less buoyant markets (virtual stability^(2) in
    mature markets), yet while preserving support behind strategic projects
    (e.g.: Ritual in Spain)

The ratio to sales was virtually stable at 18.1%, despite unfavourable
phasing:

  *investment in Absolut was relatively lower in HY1 2011/12 than HY2 2011/12
  *media spend in Russia was concentrated in HY1 2012/13 before advertising
    restrictions came into effect as of 1 January 2013 (A&P +30%^(2) vs. sales
    +22%^(2))

Structure costs increased +8%^(2) to €(749) million, with a structure costs
to sales ratio of 15.3% in HY1.

Pernod Ricard continued to increase the resources allocated to
rapidly-expanding markets:

  *+28%^(2) increase in emerging markets, compared to a virtual stability^(2)
    in mature markets
  *continued efforts to strengthen the distribution network: China, India and
    Russia
  *new subsidiaries opened in Africa, already approximately 100 staff

… but reduced structure costs in less buoyant markets: Western Europe -2%^(2),
France -5%^(2)

2012/13 saw the finalisation of the resource expansion cycle originating from
the Agility project, which allocated additional resources to support
innovation, digital initiatives and talent management (HR, PR University).

Profit from recurring operations grew +1%^(2) to €1,459 million. After
restatement for technical effects^(1) organic growth in operating profit was
+7%^(2).

The operating margin increased +68 bps excluding technical effects, resulting
from:

  *a significant increase in gross margin, still driven by premiumisation and
    controlled input costs
  *controlled advertising and promotion expenditure
  *a favourable foreign exchange effect (contributing +28 bps to the increase
    in operating margin)

Over the first six months, the Group structure effect on profit from recurring
operations was quite limited at €(11) million. The foreign exchange effect
was a positive €77 million, primarily due to a stronger USD and CNY. For the
full 2012/13 financial year, this effect is estimated to be slightly positive
(based on current rates).

Organic growth in profit from recurring operations was particularly driven by:

  *the continued dynamism of Asia
  *accelerated growth in America, especially due to the US
  *excellent on-going momentum in Eastern Europe

Emerging markets are an increasingly powerful growth driver for the Group and
further increased their weight, rising to 46% of profit from recurring
operations in the 1^st half of 2012/13, compared to 39% in the 1^st half of
the 2011/12 financial year. This increase has a positive impact on margins.

Analysis of net profit

Financial income / (expense) from recurring operations was a net expense of
€(272) million, compared to €(233) million in the prior year.

The average cost of debt was 5.4% during the first six months. The increase
compared to the previous year was essentially due to debt refinancing in the
2011/12 financial year, which enabled the Group to:

  *increase the share of bond debt (>80%)
  *extend the average maturity (close to 7 years)
  *secure attractive long-term rates

For the full FY 2012/13:

  *the average cost of debt should be close to that of the HY1
  *in HY2, financial expenses from recurring operations will improve vs. HY2
    2011/12

In 2013/14 a significant reduction in the average cost of debt is expected, to
5% (based on the current rate curve).

Corporate income tax on items from recurring operations was a charge of
€(319) million, representing an effective tax rate of 26.8%. The higher
income tax rate compared to the first six months of the previous financial
year was primarily due to the impact of tax reforms in France as mentioned in
the Q1 communication: €(16) million negative effect on HY1 net profit.

For the full 2012/13 financial year, the effective income tax rate on
recurring operations should be close to that of the first half-year.

The Group share of net profit from recurring operations was  € 857million, up
+2% over the prior year, largely driven by operating performance. Net earnings
from recurring operations per diluted share grew to € 3.22.

The impact of non-recurring items was limited at a negative €(10) million.

Restructuring charges of €(39) million (particularly in Spain, Australia and
New Zealand) and the €(64) million impairment recognised in relation to
Brancott Estate were partly offset by an income tax gain on non-recurring
items of €91 million (including updated deferred tax rates).

Overall, the Group share of net profit was €847 million, a +6% increase.

Debt and Free Cash Flow

Free cash flow totaled € 416 million.

It was largely impacted by technical and conjunctural effects (totaling €
(130) million in the HY1.)

These effects include (i) the French impact (pre-buying in December 2011)
representing approximately €(60)million, (ii) the HY1/HY2 phasing of certain
payments (notably excise and taxes) which differs from last year and (iii) an
unfavourable base of comparison in working capital requirements due to the
impact of optimization initiatives in 2011/12 (particularly in Asia/Rest of
World).

Growth in capital expenditures and strategic inventories had a negative € (60)
million impact compared to the 1^st half of last year.

The increase in financial charges (impact of refinancing) and in cash tax
(including measures in France) was offset by improvement in non-recurring
items.

Cash generation will accelerate in the HY2, thereby contributing to
deleveraging.

Net debt at end December 2012 was € 9,148 million.

It declined € 215 million due in particular to a favourable forex impact.

The net debt/EBITDA ratio^(4) remained stable due to unfavourable
technical^(1) and conjunctural effects in the HY1.

The structure of the debt remains unchanged.

Bank and bond maturities in 2013 and 2014 are covered by forecasted cash flows
and existing credit facilities. As of 31 December 2012, € 0.6 billion of the
syndicated loan was drawn vs. a maximum availability of € 2.5 billion.

Natural hedging of the debt is maintained with the split of EUR/USD debt
mirroring EBITDA exposure and a large proportion of fixed rate debt has been
maintained.

Conclusion and outlook

In a less favourable macro-economic environment, as anticipated, Pernod Ricard
achieved a good performance in the 1^st half of the 2012/13 financial year,
taking into account major technical effects^(1) which are now behind us.

The Group’s growth drivers remain unchanged:

  *Premiumisation and Innovation
  *Top 14 and Indian whiskies
  *Emerging markets and the US

In this environment, Pernod Ricard confirms its target of organic growth in
profit from recurring operations close to +6% for the full 2012/13 financial
year.

(1) France pre-buying and Chinese New Year: negative impacts of €(114)
million on sales and €(72) million on profit from recurring operations
(2) Organic growth
(3) Retail price > USD 17 for spirits and > USD 5 for wine
(4) Net debt calculated by translating the non EU-denominated portion at
average forex rates for the financial year

About Pernod Ricard

Pernod Ricard is the world’s co-leader in wines and spirits with consolidated
sales of €8,215 million in 2011/12. 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, Kahlúa and Malibu liqueurs, Mumm and
Perrier-Jouët champagnes, as well Jacob’s Creek, Brancott Estate, Campo Viejo
and Graffigna wines.

Pernod Ricard employs a workforce of nearly 18,800 people and operates through
a decentralised organisation, with 6 “Brand Companies” and 75 “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 the NYSE Euronext exchange (Ticker: RI; ISIN code:
FR0000120693) and is a member of the CAC 40 index.

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

The regulated information related to this press is available on our website:
www.pernod-ricard.com


BRANDS ORGANIC GROWTH
                                      
Top 14              Net Sales^*   Volumes   Price/mix
                                         
Chivas Regal        3%            -3%       6%
Absolut             4%            2%        2%
Ballantine's        -11%          -11%      0%
Jameson             13%           7%        6%
Ricard              -34%          -34%      0%
Malibu              -1%           -2%       0%
Beefeater           5%            2%        3%
Kahlua              2%            -2%       4%
Havana Club         4%            2%        2%
Martell             23%           8%        15%
The Glenlivet       21%           17%       4%
Royal Salute        3%            0%        3%
Mumm                -5%           -6%       1%
Perrier-Jouët       7%            0%        8%
Top 14              4%            -5%       9%
^* Organic growth
                                            

SUMMARY CONSOLIDATED INCOME STATEMENT

(€ millions)                       31/12/2011    31/12/2012    Change
                                                              
Net sales                          4,614         4,907         6%
Gross Margin after logistics       2,863         3,096         8%
costs
A&P expenditure                    (817)         (888)         9%
Contribution after A&P             2,046         2,208         8%
expenditure
Structure costs                    (667)         (749)         12%
Profit from recurring              1,379         1,459         6%
operations
Financial income/(expense) from       (233)            (272)            17%
recurring operations
Corporate income tax on items         (283)            (319)            13%
from recurring operations
Net profit from discontinued
operations, minority interests     (19)          (11)          -44%
and share
of net income from associates
Group share of net profit from     843           857           2%
recurring operations
                                                                        
Other operating income &              (53)             (101)            NA
expenses
Non-recurring financial items         (40)             (0)              NA
Corporate income tax on items         50               91               NA
from non recurring operations
                                                            
Group share of net profit          800           847           6%
Minority interests                 20            11            -45%
Net profit                         820           858           5%
                                                                        

FOREIGN EXCHANGE EFFECT
                                                                 
Forex impact                                                         On          On Profit
HY1 2012/13               Average rates evolution                 Net         from
(€ million)                                                          Sales       Recurring
                                                                                 Operations
                        2011/12    2012/13    %                      
                                                                  
US dollar          USD       1.38       1.27       -7.7%       85          53
Chinese yuan       CNY       8.82          8.03          -9.0%       56          42
Korean won         KRW       1.54          1.42          -7.9%       13          8
Russian            RUB       41.61         40.15         -3.5%       6           4
ruble
Thai baht          THB       42.18         39.51         -6.3%       4           3
Canadian           CAD       1.38          1.27          -8.4%       10          2
dollar
Mexican peso       MXN       17.87         16.63         -6.9%       7           2
Taiwan             TWD       40.97         37.54         -8.4%       4           2
dollar
Japanese yen       JPY       107.01        101.88        -4.8%       4           2
Malaysian          MYR       4.26          3.94          -7.5%       3           2
ringgit
New Zealand        NZD       1.72          1.56          -9.0%       5           0
dollar
Singapourian       SGD       1.73          1.57          -9.2%       3           (0)
dollar
Brazilian          BRL       2.36          2.60          10.1%       (10)        (1)
real
Australian         AUD       1.34          1.23          -8.3%       11          (4)
dollar
Hong Kong          HKD       10.75         9.88          -8.1%       2           (5)
dollar
Indian rupee       INR       66.60         69.63         4.6%        (13)        (5)
Pound              GBP       0.87          0.80          -7.8%       18          (17)
sterling
Currency
translation                                                                      (4)
variance/FX
hedging
Other                                                   8           (7)
currencies
Total                                                   216         77
                                                                                 

GROUP STRUCTURE EFFECT
                                             
Group structure HY1 2012/13                          On Profit from
(€ million)                       On Net Sales       Recurring
                                                     Operations
                                                   
Canadian activities               (10)               (3)
Other                             (30)               (8)
Total Group Structure             (40)               (11)
                                                     

CONSOLIDATED BALANCE SHEET
                                                            
Assets                                          30/06/2012    31/12/2012
(€ millions)                                                 
(Net book value)
Non-current assets
Intangible assets and goodwill                     17,360           16,871
Property, plant and equipment and                  2,477            2,517
investments
Deferred tax assets                             1,965         1,758
Total non-current assets                        21,802        21,146
                                                                    
Current assets
Inventories                                        4,295            4,282
Work-in-progress                                   3,494            3,502
Trade receivables and other (*)                    1,376            2,030
Other non operating assets                         63               60
Cash and cash equivalents                       787           878
Total current assets                            6,522         7,251
                                                                    
Assets held for sale                               52               49
                                                            
Total assets                                    28,375        28,445
                                                                
(*) after disposals of receivables of:             500           707


CONSOLIDATED BALANCE SHEET

Liabilities and shareholders’ equity               30/06/2012       31/12/2012
(€ millions)                                                 
                                                            
Shareholders’ equity                            10,803        11,291
Minority interests                                 169              167
of which profit attributable to minority        27            11
interests
Shareholders’ equity – attributable to
equity                                          10,972        11,458
holders of the parent
                                                                    
Non-current provisions and deferred tax            4,134            3,911
liabilities
Bonds                                              8,044            7,852
Non-current financial liabilities and           1,511         1,307
derivative instruments
Total non-current liabilities                   13,689        13,070
                                                                    
Current provisions                                 178              164
Trade payables and other                           2,161            2,293
Other non operating liabilities                    391              261
Bonds                                              153              225
Current financial liabilities and derivative    824           968
instruments
Total current liabilities                       3,707         3,911
                                                                    
Liabilities held for sale                          7                6
                                                            
Total equity and liabilities                    28,375        28,445
                                                                    

CHANGE IN NET DEBT
                                                            
(€ millions)                                    31/12/2011    31/12/2012
                                                            
Self-financing capacity                         1,363         1,491
Decrease (increase) in working capital             (296)            (548)
requirements
Financial result and tax cash                      (365)            (434)
Net acquisitions of non financial assets        (95)          (94)
Free Cash Flow                                  607           416
Disposals/acquisitions assets and others           (33)             (32)
Change in Group structure
Dividends and other                             (383)         (419)
Decrease (increase) in net debt (before         191           (34)
currency translation adjustments)
Foreign currency translation adjustment         (564)         249
Decrease (increase) in net debt (after          (372)         215
currency translation adjustments)
Initial debt                                       (9,038)          (9,363)
Final debt                                      (9,410)       (9,148)
                                                                    

SALES ANALYSIS BY REGION
                                                                                                             
Net Sales                                                                                                       Group
(€              Q1 2011/12               Q1 2012/13               Change                 Organic Growth         Structure            Forex impact
millions)
                                                                                                                 
France          162      8.1%         149      6.8%         (12)     -8%        (12)     -8%        0       0%        0      0%
Europe
excl.           524         26.4%        524         23.8%        0           0%         (8)         -1%        (2)        0%        10        2%
France
Americas        508         25.6%        579         26.3%        71          14%        32          7%         (16)       -3%       54        11%
Asia /
Rest of         794      39.9%        951      43.2%        158      20%        83       11%        (1)     0%        76     10%
the World
World           1,987    100.0%       2,203    100.0%       216      11%        95       5%         (19)    -1%       140    7%
                                                                                                                                               
                                                                                                                 
Net Sales                                                                                                       Group
(€              Q2 2011/12               Q2 2012/13               Change                 Organic Growth         Structure            Forex impact
millions)
                                                                                                                 
France          356         13.5%        225         8.3%         (131)       -37%       (131)       -37%       (0)        0%        0         0%
Europe
excl.           708         26.9%        721         26.7%        13          2%         1           0%         (2)        0%        14        2%
France
Americas        658         25.1%        703         26.0%        45          7%         41          6%         (16)       -2%       21        3%
Asia /
Rest of         905      34.5%        1,054    39.0%        149      16%        110      12%        (3)     0%        42     5%
the World
World           2,627    100.0%       2,703    100.0%       76       3%         21       1%         (21)    -1%       77     3%
                                                                                                                                               
                                                                                                                 
Net Sales                                                                                                       Group
(€              HY1 2011/12              HY1 2012/13              Change                 Organic Growth         Structure            Forex impact
millions)
                                                                                                                 
France          517         11.2%        374         7.6%         (143)       -28%       (143)       -28%       (0)        0%        0         0%
Europe
excl.           1,232       26.7%        1,245       25.4%        14          1%         (7)         -1%        (4)        0%        24        2%
France
Americas        1,166       25.3%        1,282       26.1%        116         10%        73          6%         (32)       -3%       75        6%
Asia /
Rest of         1,699    36.8%        2,005    40.9%        307      18%        193      11%        (4)     0%        118    7%
the World
World           4,614    100.0%       4,907    100.0%       293      6%         116      3%         (40)    -1%       216    5%
                                                                                                                                               

PROFIT FROM RECURRING OPERATIONS BY REGION

World                                                                                               
(€ millions)       HY1 2011/12              HY1 2012/13              Change                 Organic Growth         Group                Forex impact
                                                                                                                   Structure
                                                                                                                     
Net sales          4,614    100.0%       4,907    100.0%       293      6%         116      3%         (40)    -1%       216     5%
(Excl. T&D)
Gross margin
after              2,863       62.1%        3,096       63.1%        233         8%         98          3%         (10)       0%        145        5%
logistics
costs
Advertising        (817)       17.7%        (888)       18.1%        (71)        9%         (30)        4%         0          0%        (41)       5%
& promotion
Contribution       2,046    44.3%        2,208    45.0%        162      8%         68       3%         (10)    0%        104     5%
after A&P
Profit from
recurring          1,379    29.9%        1 459    29.7%        80       6%         13       1%         (11)    -1%       77      6%
operations
                                                                                                                                                   
                                                                                                                                                   
Asia/Rest of                                                                                                          
World
(€ millions)       HY1 2011/12              HY1 2012/13              Change                 Organic Growth         Group                Forex impact
                                                                                                                   Structure
                                                                                                                     
Net sales          1,699       100.0%       2,005       100.0%       307         18%        193         11%        (4)        0%        118        7%
(Excl. T&D)
Gross margin
after              1,025       60.4%        1,262       62.9%        237         23%        151         15%        (3)        0%        89         9%
logistics
costs
Advertising        (317)       18.7%        (359)       17.9%        (42)        13%        (18)        6%         0          0%        (24)       8%
& promotion
Contribution       708      41.7%        903      45.0%        195      28%        133      19%        (3)     0%        65      9%
after A&P
Profit from
recurring          527      31.0%        674      33.6%        147      28%        97       19%        (3)     -1%       53      10%
operations
                                                                                                                                                   
                                                                                                                                                   
Americas                                                                                                              
(€ millions)       HY1 2011/12              HY1 2012/13              Change                 Organic Growth         Group                Forex impact
                                                                                                                   Structure
                                                                                                                     
Net sales          1,166       100.0%       1,282       100.0%       116         10%        73          6%         (32)       -3%       75         6%
(Excl. T&D)
Gross margin
after              721         61.8%        831         64.8%        110         15%        63          9%         (5)        -1%       53         7%
logistics
costs
Advertising        (204)       17.4%        (243)       18.9%        (39)        19%        (26)        13%        (0)        0%        (13)       6%
& promotion
Contribution       518      44.4%        589      45.9%        71       14%        36       7%         (6)     -1%       40      8%
after A&P
Profit from
recurring          338      29.0%        378      29.5%        40       12%        19       6%         (7)     -2%       28      8%
operations


PROFIT FROM RECURRING OPERATIONS BY REGION

Europe
excluding                                                                                                             
France
(€ millions)       HY1 2011/12              HY1 2012/13              Change                 Organic Growth         Group                Forex impact
                                                                                                                   Structure
                                                                                                                     
Net sales          1,232       100.0%       1,245       100.0%       14          1%         (7)         -1%        (4)        0%        24         2%
(Excl. T&D)
Gross margin
after              731         59.3%        744         59.7%        13          2%         4           1%         (1)        0%        10         1%
logistics
costs
Advertising        (176)       14.3%        (193)       15.5%        (17)        10%        (13)        7%         (0)        0%        (4)        2%
& promotion
Contribution       555      45.0%        551      44.2%        (4)      -1%        (9)      -2%        (1)     0%        6       1%
after A&P
Profit from
recurring          339      27.5%        326      26.2%        (12)     -4%        (14)     -4%        (1)     0%        3       1%
operations
                                                                                                                                                   
                                                                                                                                                   
France                                                                                                                
(€ millions)       HY1 2011/12              HY1 2012/13              Change                 Organic Growth         Group                Forex impact
                                                                                                                   Structure
                                                                                                                     
Net sales          517         100.0%       374         100.0%       (143)       -28%       (143)       -28%       (0)        0%        0          0%
(Excl. T&D)
Gross margin
after              386         74.7%        259         69.4%        (127)       -33%       (120)       -31%       (0)        0%        (7)        -2%
logistics
costs
Advertising        (121)       23.3%        (93)        25.0%        27          -23%       27          -23%       0          0%        (0)        0%
& promotion
Contribution       266      51.4%        166      44.4%        (100)    -38%       (93)     -35%       (0)     0%        (7)     -3%
after A&P
Profit from
recurring          174      33.7%        80       21.5%        (94)     -54%       (88)     -51%       (0)     0%        (6)     -3%
operations

Contact:

Pernod Ricard
Jean TOUBOUL, +33 (0)1 41 00 41 71
Financial Communication – Investor Relations VP
or
Stéphanie SCHROEDER, +33 (0)1 41 00 42 74
External Communications Deputy Director
or
Alison DONOHOE, +33 (0)1 41 00 42 14
Investor Relations
or
Florence TARON, +33 (0)1 41 00 40 88
Press Relations Manager
or
Carina ALFONSO MARTIN, +33 (0)1 41 00 43 42
Press Relations Manager
 
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