Pernod Ricard presentation at CAGNY 2024

Presentation materials for Pernod Ricard's presentation at the February 2024 CAGNY conference in Boca Raton

1. 을 GN Y

2024

ALEXANDRE RICARD

5. IATIONAL SPIRITS"

Pernod Ricard
2022 NET EURO VALUE

6. HUMAN NEEDS, FO

EST EVIGENCE OF FERMENTATION AT HAE SRETEVPENCE orperuuanon

7. 1

TOTAL
SPIRITS
MARKET

を 451 bn

€121bn: ~

PERNOD RICARD OPERATES IN THE MOST DYNAMIC SEGMENT
OF THE ATTRACTIVE BEVERAGE ALCOHOL MARKET. . .

8. GROWTH IN GLOBAL GROWTH IN US TOTAL >
INTERNATIONAL SPIRITS BEVERAGE ALCOHOL VALUE?
VALUE AND GDP'

E E

;
に à a
SS aremuno meine m won cor

AVERAGE US$BN / MONTH

... WHICH HAS PROVEN TO BER

LIWSR 2022 RETAIL VALUE 2. US CENSUS BUREAU RETAIL SALES BEER, WINE & LIQUOR STORES, SMOOTHER

ILIENT OVER TIME rc

9. GLOBAL INCREASE OF
LEGAL DRINKING AGE e
POPULATION 7

GLOBAL POPULATION ¿4 7
FORECAST TO REACH U こ
9.8 BN BY 2050! ㆍ

10. = MIDDLE CLASS FORECAST

GLOBAL INCREASE
OF MIDDLE &
AFFLUENT CLASSES

TO GROW FROM 3.5 BN TO 4.8 BN
OF WHICH

AFFLUENT CLASS FROM 0.6 70
1 BN OVER THIS DECADE’ ”

~
~
ONG-TERM GROWTH 5
3Y POWERFUL MEGA-
가

11. 2.
WOMEN INCREASING
SHARE OF UA
INCREASING INCIDENCE OF

FROM 58% TO 62% WITH
PREFERENCE FOR SPIRITS!
»

1 Na
LONG-TERM GROWTH IS U RPINNE
BY POWERFUL MEGA-TRENDS... +

1 BMI SURVEYS 21 TO 34 YO WOMEN 1997 TO 2017, LAST SIX MONTHS

12. GLOBAL INCREASE GLOBAL INCREASE
OF LEGAL DRINKING OF MIDDLE AND
AGE POPULATION

AFFLUENT CLASSES

LONG-TERM GROWTH IS UNDERPINN
BY POWERFUL MEGA-TRENDS...

13. EXPERIENCES

70% OF RESPONDENTS IN CHINA
MENTIONED “EXPERIENTIAL _

CONSUMPTION? AS THE 党 で >
sh

TOP SPENDING .CATEGO!

14. SELF-EXPRESSION

59% OF AUSTRALIAN CONSUMERS
VIEW THEIR PURCHASES AS

A STATEMENTS OF THEIR
x IDENTITY AND VALUES'

~ ,

CT e

+ Na
e witflspinr kurt El
FROM EVOLVING CONSUMER

> | e YA

e

s

15. AND BEVERAGES! _
=

... WITH spins FURT E
FROM EVOLVING

INNOVA 2023 TREND SURVEY

16. 180

PREMIUMIZATION REINFORCES OUR
FONFIDEIEE TO DELIVER SUSPRIOR GROWTH

SOURCE: THE PERNOD "BASED ON WSR

17. SOME THOUGHT
THAT THIS MIGHT
NOT ALWAYS

BE THE CASE

“THE ERA OF PREMIUMIZATION
IS OVER”. AUGUST 2009

PREMIUMIZATION REINFORCES O!
CONFIDENCE TO DELIVER SUPERIO

Pernod Ricard

19. ER TIME WE HAVE

LT THE INDUSTRY’S
)ST COMPREHENSIVE
D DIVERSIFIED
RTFOLIO OF PREMIUM
ERNATIONAL

SPIRITS BRANDS

de

Pernod Ricard

20. REINFORCING OUR
PREMIUM CREDENTIALS
WITH BOLT-ON BRAND
ACQUISITIONS, FOCUSING
ON NORTH AMERICA

& FAST-GROWING
CATEGORIES

21. REINFORCING OUR
PREMIUM CREDENTIALS
WITH BOLT-ON BRAND
ACQUISITIONS, FOCUSING
ON NORTH AMERICA

& FAST-GROWING
CATEGORIES

22. REINFORCING OUR
PREMIUM CREDENTIALS
WITH BOLT-ON BRAND
ACQUISITIONS, FOCUSING
ON NORTH AMERICA

& FAST-GROWING
CATEGORIES

23. REINFORCING OUR
PREMIUM CREDENTIALS
WITH BOLT-ON BRAND
ACQUISITIONS, FOCUSING
ON NORTH AMERICA

& FAST-GROWING
CATEGORIES

24. REINFORCING OUR
PREMIUM CREDENTIALS
WITH BOLT-ON BRAND
ACQUISITIONS, FOCUSING
ON NORTH AMERICA

& FAST-GROWING
CATEGORIES

25. REINFORCING OUR
PREMIUM CREDENTIALS
WITH BOLT-ON BRAND
ACQUISITIONS, FOCUSING
ON NORTH AMERICA

& FAST-GROWING
CATEGORIES

26. REINFORCING OUR
PREMIUM CREDENTIALS
WITH BOLT-ON BRAND
ACQUISITIONS, FOCUSING
ON NORTH AMERICA

& FAST-GROWING
CATEGORIES

27. REINFORCING OUR
PREMIUM CREDENTIALS
WITH BOLT-ON BRAND
ACQUISITIONS, FOCUSING
ON NORTH AMERICA

& FAST-GROWING
CATEGORIES

28. Ema
JEFFERSONS
ocean

HU

+21% DEPLETIONS CAGR FY20-FY23!
EXPANDING REACH IN THE ATTRACTIVE BOURBON SEGMENT

|. DEPLETION VOLUMES, FY20-FY25, VOLUMES CY 2025 CI60K CS, 2. NUMERATOR, HHP, 2019 2025, 5. IWSR VOLUME 2020-2022,

29. THE GLENLIVET BEEFEATER 0.0
TWIST & MIX NON-ALCOHOLIC
GIN ALTERNATIVE

30. MAINTAINING PROXIMITY TO CONSUMERS AND CUSTOMERS WITH OUR
GLOBAL ROUTE TO MARKET, A DISTINCTIVE COMPETITIVE ADVANTAGE re:

31. ANCED GEOGRAPHIC FOOTPRINT :
ANCED BY REGION

MINTAINING PROXIMITY TO CONSUMERS AND CUSTOMERS WITH OUR
BAL ROUTE TO MARKET, A DISTINCTIVE COMPETITIVE ADVANTAGE Pemod Ricard

33. ANCED 生還 © E

IR MUST-WIN MARKETS

AINTAINING PROXIMITY TO CONSUMERS AND CUSTOMERS WITH OUR
3LOBAL ROUTE TO MARKET, A DISTINCTIVE COMPETITIVE ADVANTAGE Pernod Ricard

34. “ TAKE MY FACTORIES, TAKE MY MONEY, BUT LET ME KEEP
MY PEOPLE AND PLL REBUILD AN EMPIRE.”
PAUL RICARD

100% PARTICIPATING TO
ROBUST PERFORMANCE
FORBES WORLD'S
BEST EMPLOYER LIST

78% ARE COMFORTABLE TO
BE THEMSELVES AT WORK

PERNOD RICARD IS A BUSINESS WITH A SOUL

35. PERNOD RICARD IS A BUSINESS WITH A SOUL...

» . |. 175 A BUSINESS WITH A SOUL,
WITH OVER 20,000 PEOPLE

M WHO ARE PASSIONATE
ABOUT THIS BUSINESS ...
YOU HAVE TO HAVE PASSION IN

$ | THIS BUSINESS AND. THAT'S

WHY WE.MAKE.SUCH A
GREAT TEAM TOGETHER” |

BRETT BERISH,
CEO OF SOVEREIGN BRANDS
m +

“ WHEN | DECIDED TO
PARTNER WITH A BIGGER
COMPANY THERE WAS
ONLY ONE CHOICE...
PERNOD’S CULTURE
IS UNRIVALLED..: |

(S "ee

z Pernod Ricard
us Mi

36. WITH SUSTAINABILITY AND RESPONSIBILITY
EMBEDDED THROUGHOUT OUR BUSINESS

37. PERNOD RICARD’S SIMPLE &
IMPACTFUL GROWTH MODEL
SUPPORTS OUR BRANDS &
OUR MARKET COMPANIES
TO EXECUTE LOCALLY
RELEVANT STRATEGIES

38. DATA AND TECHNOLOGY ENABLES
US TO INCREASE OUR IMPACT

IN

maestria

matrix
ISTA :,
REV-UP +*

D-STAR

DEMAND ANALYSIS

MARKETING INVESTMENTS

PROMOTION & PRICING

SALES FORCES

Pernod Ricard

39. ACCELERATING OUR CAPEX
INVESTMENTS, INCLUDING
DIGITAL AND TECHNOLOGY る

INVESTING SUSTAINABLY IN OUR FUTURE ORGANIC GROWTH

40. INCREASING INVESTMENTS IN
AGEING INVENTORIES WITH

c.€6.3 BN OF AGEING STOCKS
ON BALANCE SHEET

INVESTING SUSTAINABLY IN OUR FUTURE ORGANIC GROWTH

41. PRIORITY

PRIORITY

PRIORITY

PRIORITY

CLEAR CAPITAL ALLOCATION PRI

INVESTMENT IN FUTURE ORGANIC GROWTH, IN PAR’
THROUGH STRATEGIC INVENTORIES AND CAPEX

CONTINUED ACTIVE PORTFOLIO MANAGEMENT,
INCLUDING VALUE-CREATING M&A

DIVIDEND DISTRIBUTION AT c.50% OF NET PROFIT Fl
OPERATIONS, AIMING AT CONSISTENTLY GROWING DIVI

SHARE BUY-BACK

WHILE MAINTAINING INVESTMENT GRADE RATING

42. DRIVING LONG-TERM SUSTAINABLE VALUE CREAT

MEDIUM-TERM FINANCIAL FRAMEWORK r
+4% TO +7% ANNUAL TOP LINE GROWTH, AIMING FOR THE UPPER END OF THE RANGE!

FOCUS ON REVENUE GROWTH MANAGEMENT, ENHANCED BY OUR
PROPRIETARY DIGITAL PREDICTIVE TOOLS (KEY DIGITAL PROGRAMS)

CONTINUOUS IMPROVEMENT IN OPERATIONAL EFFICIENCY,
BUILDING ON OUR CULTURE OF EXCELLENCE

SIGNIFICANT A&P INVESTMENTS, MAINTAINED AT c.16% OF NET SALES,
WITH HIGHER ROI LEVERAGING KEY DIGITAL PROGRAMS

DISCIPLINE ON STRUCTURE COSTS, INVESTING IN PRIORITIES WHILE MAINTAINING

AN AGILE ORGANIZATION, AIMING AT RATE OF COST INCREASE BELOW TOP LINE

OPERATING LEVERAGE OF +50/+60 BPS, PROVIDED TOP LINE WITHIN RANGE +4% TO +7%!
AA

=
Pernod Ricard

43. AIMING TO DOUBLE
THE NEXT DECADE AS \
5 GLOBAL MEGA BRANDS

Pernod Ricard

44. FAVOR
LONG-TERM

DEMOGRAPHICS _

e”.
SUSTAINABILITY & RESPONSIBILITY AT OUR CORE
POWERED BY TECH AND E DATA

ㆍ

ㅣ OUR WINNING FORMULA in

45. CAGNY 2024

THANK YOU

ALEXANDRE RICARD

Pernod Ricard