2013/14 Half-year Sales and Results

Sales virtually stable and slight increase in PRO^[1] in HY1
(excluding forex impact and Group structure)

New guidance for FY 2013/14:
Organic growth in PRO between +1% and +3%

Net sales for the first semester of 2013/14 totalled ' 4,570 million. Excluding forex impact and Group structure sales were virtually stable, reflecting an improvement in the second quarter (+2%) over the first (-1%). Due to a highly unfavourable forex impact, reported net sales growth was -7%.

Sales were mainly impacted by one market, China (-18%):

• Asia-RoW excluding China +2%
• very good performance in Europe (+4%)
• return to growth in Americas (+3%) following a strong second quarter

Top 14 was virtually stable despite a mix effect of -4% (decline of Martell in China). Volumes were stable and pricing remained positive. The second quarter showed a return to growth.
Key local brands performed well (+4%) despite the decline (primarily technical) of Imperial.

Operating margin improved (+34bps), thanks to strict control of resources, leading to organic growth in Profit from Recurring Operations of +2% at ' 1,359 million.

As announced, the highly unfavourable forex impact (' -112 million on PRO at end December) affected the reported growth in Profit from Recurring Operations (-7%).

Financial expenses on recurring operations were reduced by -19% thanks to a significant reduction in the cost of debt to 4.6% (vs. 5.4% in HY1 2012/13).

Net profit from recurring operations declined -3%. Excluding forex impact, it grew +6%.

At end December, debt was reduced ' -102 million to ' 8.6 billion.

This announcement provided Pierre Pringuet, Chief Executive Officer of Pernod Ricard, with the opportunity to state: 'We remain confident in the medium and long-term potential of China but we anticipate difficulties to persist for the full financial year. We want to prioritize the Group's future sales growth through a sound commercial policy and an appropriate level of investment. As a result, we are issuing new guidance for FY 2013/14: organic growth in profit from recurring operations between +1% and +3%.'

Pierre Pringuet also announces the launch of Allegro, a project aimed at delivering further operational efficiency: 'We want to improve organisational efficiency in order to generate future growth, seize new opportunities (particularly innovation and digital) and increase the speed of execution. We will continue to rely on our decentralised model, based on the direct relationship between Brand Companies and Market Companies.'

From a financial standpoint, this project will generate ' 150 million of annual savings over three years. They will be partly reinvested to support brand development.