Q3 FY18 Sales

Very good year-to-date sales: +6.3% organic growth

(reported: +0.2%)

Q3: +9.3% organic growth, enhanced by favourable phasing

Of chinese new year

Confirmation of FY18 guidance at top-end of range:

Organic growth in PRO c. +6%

Distribution of interim cash dividend: '1.01 per share on 6 july 2018

Evolution of dividend policy

Year-to-date Sales

Sales for the first 9 months of FY18 totalled ' 7,059 million, with organic growth of +6.3%, driven by Emerging markets (+13%):
' continued dynamism in the Americas +6%: good performance in USA and acceleration of Latin America
' very dynamic Asia-RoW +10%, thanks to confirmed return to strong growth in China, India (partly favoured by low basis of comparison), Travel Retail and Africa Middle East
' Europe +2%: good momentum in Eastern Europe and stability in Western Europe (good performance in Germany and UK, but difficulties in Spain and France)
' diversification of sources of growth:
         o Strategic international Brands +7%: strong performance driven by Martell, Jameson and return to growth of Chivas
         o Strategic Local Brands +7%: dynamism driven largely by Seagram's Whiskies (partly favoured by a low basis of comparison in India) but also strong double-digit performance of Olmeca / Altos
         o Strategic Wines: stability with continued strong results for Campo Viejo offset by adverse phasing (UK and Kenwood in the US)

Reported growth was +0.2% due to unfavourable FX over the period, mainly linked to the strengthening of the Euro, in particular vs. the USD.

Q3 Sales

Sales for the third quarter of FY18 were enhanced by CNY and Easter phasing3 and totalled ' 1,977 million, including organic growth of +9.3% and reported growth of -0.5%. This comprised:
' continued dynamism in the Americas +6%: good overall performance
' Asia-RoW +18%: strong underlying performance enhanced by favourable CNY phasing in China and cycling demonetisation in India in FY17
' modest decline in Europe -1%: continued difficulties in Spain and France together with unfavourable shipment phasing in Russia and adverse basis of comparison in UK

Interim cash dividend

The Board of Directors meeting on 18 April 2018, under the chairmanship of Alexandre Ricard, decided to distribute an interim cash dividend of '1.01 per share for the current FY18 financial year. In line with Pernod Ricard's standard practice, the interim dividend is equal to 50% of the total dividend paid out in the previous financial year. The ex-dividend date will be Wednesday 4 July 2018 and the interim dividend will be paid on Friday 6 July 2018.

Dividend policy evolution

Given the profit growth acceleration and debt deleveraging since FY16, Pernod Ricard's Board of Directors is recommending an inflection of its dividend policy, to be decided at the AGM on 21 November 2018. It is recommending to progressively increase the dividend distribution over the next 3 years to c. 50% of Net profit from Recurring Operations, starting with FY18 (vs. the historical rate of c. 1/3.) The Group remains committed to value-creating M&A while retaining an investment grade rating.

As part of this communication, Alexandre Ricard, Chairman and Chief Executive Officer, stated, 'We have very strong year-to-date Sales growth at +6.3%. Our strategy is consistent and driving results, in particular in terms of diversifying the sources of growth. We confirm our FY18 guidance1 given to the market on 9 February 2018 at the top-end of the range, with organic growth in Profit from Recurring Operations of c. +6%2.'

Note: All growth data specified in this press release refers to organic growth (at constant FX and Group structure), unless otherwise stated. Data may be subject to rounding.
A detailed presentation of Sales for the third quarter of FY18 can be downloaded from our website: www.pernodricard.com

To consult the appendices, please download the press release.