INTEGRATED ANNUAL REPORT FY22

Pernod Ricard achieved record results in FY22, starting with sales of €10 billion and profit from recurring operations of €3 billion. In addition to crossing these symbolic thresholds, this remarkable performance is highly diversified: all our regions, key markets and product categories contributed to this growth.

These results are fully in line with the long-term financial objectives we have set for ourselves. Through the implementation of a dynamic pricing policy in FY22, which remains in place, we were able to improve our margins. Customer enthusiasm for increasingly high-end and premium products is strong in all our markets, which should enable us to absorb cost increases while maintaining our pricing targets despite rising inflation Operational efficiency coupled with sales growth remains a formidable performance driver. The entire organization is becoming more agile and efficient through our strategic roadmap, which is strengthened by the new working methods and technologies at the heart of our growth model, The Conviviality Platform. Information sharing is more efficient, leading to even more relevant decision making across all our teams. In an economic and geopolitical environment that is both complex and volatile, the importance of efficiency and heightened responsiveness is demonstrated by our record cash generation, with free cash flow of €1,813 million, and a substantial reduction in our debt ratio.

Based on these excellent results, we are maintaining our investments to ensure sustained, balanced and sustainable growth in the future. We plan to intensify our strategic and industrial investments⁽¹⁾ in FY23 to support the development of our brands and we have set three key priorities for the Group to drive our ambition in line with our long-term strategy: