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1
First half 2002 results 2 october 2002
2
First-half 2002 Highlights
Targets reached

• Successful integration of Seagram brands
• Results in line with forecast
• Programme of disposals complete
• Faster debt reduction than announced

3
First-half 2002 Consolidated figures

• Strong growth in business and profit

Earnings per share
Before exceptionals and amortisation of goodwill
(fully diluted for convertible bonds)
4
Spirits Wine
5
First-half 2002Spirits and wine key figures

• Operating result doubled, in line with the target

6
First-half 2002 Spirits and wine sales

• Acceleration of Seagram brands in second quarter
• Growth in Pernod Ricard brands

78
1,503
859
644
6.5
42
millions
28
Q1 2002
H1 2002
Q2 2002
7
Spirits and wine business Spirits and wine sales

• More balanced sales split between Europe France
  and Non Europe
• Good organic growth of Pernod Ricard brands
  (except in France)

78
1,503
78
Millions
843
(1) Historical Pernod Ricard brands
8
Spirits and wine business Seagram brands

• Volumes in line with forecasts
• After overstocking in the market in the first
  half, growth picked up in July/August

9
Spirits and wine businessSeagram brands

• Chivas
• Worlds most prestigious Premium and Super
  Premium scotch whisky
• Global brand with 3 million cases (9l) per year
  15 countries gt 50K cs
• Main markets USA, Japan, Spain, Greece, Korea,
  Thailand, Italy and the Travel Retail circuit

Target reassert Chivas Regals world leadership
of the Premium and Super Premium scotch whisky
segment
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Spirits and wine business Seagram brands

• Martell
• Oldest Cognac house among market leaders
• No. 3 worldwide and No. 1 in Duty Free
• Main markets UK, China, USA, Malaysia, Taïwan
• Flagship product Cordon Bleu
• Opportunities in USA market growing by 10 a
  year
• New media campaign for 2003
• Priority brand status at Pernod Ricard

Target revitalize growth
11
Spirits and wine business Successful integration

• Integration process completed swiftly
• Ex-Seagram staff 3,600
• including 212 managers, 1 regional president, 7
  subsidiary presidents and 67 key executives
• Restructuring costs (300/350 MUSD) are lower than
  expected
• amply covered by the proceeds of the sale of
• Seagram Venture Assets (540 MUSD)

12
Spirits and wine business Adjustments to
portfolio after closing

• Disposal of Don Julio
• Acquisition of Passport in September
• Acquisition of distribution rights
• Sandeman world
• Four Roses Europe except Spain

No impact in 2002
13
Spirits and Wine Business USA a new area to be
conquered

• A complex, concentrated and profitable market
• Each state has its own legislation and taxation
  in a unique three-tier system that separates
  the functions of manufacturer, wholesaler and
  retailer ? distributors play a key role
• Control States (18 states accounting for 25 of
  the market) distribution managed by state
  monopolies
• Open States distribution is privately run
• 20 states make up 75 of the market
• This market makes a strong contribution

14
Spirits and Wine business USA a new area to be
conquered

• Pernod Ricards distribution strategy
• A sales force to match its new size 140 people
  in four regions and a team dedicated to National
  Customers
• Inheritance of Seagrams excellent Customer
  Service
• In March 2002, Pernod Ricard concretised its
  relationship with the selected distributors
• Long-term partnerships
• Shared vision of the market
• Joint development of marketing/promotional
  activities
• Growth and profit targets for both parties

15
Spirits and Wine business USA a new area to be
conquered

• A new distribution scene, after the reallocation
  of the Seagram brands
• Closer partnerships between Pernod Ricard and its
  distributors
• Opportunities to be seized
• Launch of Mojito Club (flavoured rum) and
  Seagram Vodka

Pernod Ricard a major player in the USA with a
full portfolio and prestigious, profitable brands
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Spirits and Wine business Historical Pernod
Ricard brands

• Sustained growth

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Spirits and Wine business Historical Pernod
Ricard brands

• Jacobs Creek 15
• No. 1 Australian bottled wine 5.3 m cases (9 L)
  in 2001
• Annual growth of 1 m cases (9L)
• Strategy of constant improvement in quality
• Launch of Premium products
• Jacob s Creek Reserve
• Jacob s Creek Limited Release

Target a brand with 10 m cases (9L) in the
fast-growing New World wine market
18
Spirits and Wine businessHistorical Pernod
Ricard brands

• Havana Club 11
• No. 2 Premium rum (outside USA) 1.5 m cases (9L)
  in 2001
• 5-year CAGR 16
• Fastest-growing market after Tequila
• New products in 2002 Anejo Blanco/Anejo Oro

Target double volumes in the strongly-expanding
rum market
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Spirits and Wine business Historical Pernod
Ricard brands

• Amaro Ramazzotti 10
• Barrier of 1m cases (9 l) reached (June 2001-July
  2002)
• ? Pernod Ricards 15th million-case brand
• Among the strongest world growth in the sector
• ? 5-year CAGR 15.8
• Strong European presence
• A major historical brand in Italy
• No. 1 imported spirit in Germany 714,000 cases
  (9l)
• Growing strongly in Switzerland, Austria and
  Central Europe

Target pursue strong growth to reach 1.5 m cases
(9L)
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Spirits and Wine business Historical Pernod
Ricard brands

• Jameson 5
• N1 Irish whisky with 1.5 m cases (9l) in 2001
• Continuous growth ? 5-years CAGR 9
• Changes to the range
• Repackaging of Jameson 12 years
• Launch of Jameson 18 years

Target double volumes
21
Spirits and Wine business Historical Pernod
Ricard brands

• Less favorable context in France
• Slowdown in consumption
• Dull weather in spring, bad weather in summer

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Programme of disposals complete

• Seagram
• Seagram Venture Assets outside the Diageo -
  Pernod Ricard consolidation
• 540 million after tax, in line with initial
  estimates
• Finalisation of price adjustment process with
  Vivendi
• 18 million received in August 2002, including
  compensation for overstocking (20 m)
• Pernod Ricard
• Orangina Pampryl Yoo-Hoo ? 753 m
• SIAS MPA ? 170 m
• Italcanditi, San Giorgio Flavors ? 55 m
• BWG ? 220 m
• Agros (non-alcoholic businesses) ? 68 m

? Total disposals nearly 1,300 million
(enterprise value) in under 2 years
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Results in line with forecasts
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Results in line with forecasts Spirits and Wine
operating profit
218
S2
x 2
S1
Millions
H1 2002
2001
11.8 m
25
Results in line forecasts Spirits and Wine
operating margin

• Growth in line with forecasts
• First-half impacted by non-recurring items ( 50
  m)
• Second-half always more favourable (seasonal
  factors)

17,6
15
H1 2002
H1 2001
Target 2002
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Results in line with forecasts Spirits Wine
operating margin by geographical region
49
M
16.3
95
55
64
48
France
Europe

• All regions make a significant contribution to
  profit growth

X 7.8
X 7.6
72
43
6
9
Americas
Rest of the word
27
Results in line with forecasts Group operating
profit
63
28
Results first-half 2002 Smaller than expected net
interest expense

• Financing rate at 30/06/02 5
• OCEANE convertible bond issue on 4 February 2002
  ? 489M
• Coupon rate 2.5
• YTM 4.35 (included in financial result)
• Repayment of bridging loan in June 2002
• Rapid debt reduction brings down the bank margin
  ahead of schedule at 30 June 2002 by 42 bp

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Results in line with forecasts Net income 49m,
47
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Results in line with forecasts Exceptional profit
2002
31

• Faster than expected debt reduction

32
Faster than expected debt paydown
33
Faster than expected debt paydownImprovement in
recurring operating WCR
34
Faster than expected debt reduction Annual target
(debt lt 3 bn) reached at 30 June 2002
Gearing (1)
Net debt (1)
3695
1.47
2725
1.17
Target
Millions
30/06/02
31/12/01
31/12/02
30/06/02
31/12/01
Gearing target of about 1 at 31 December 2002
(1) Excluding OCEANE
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Outlook Conclusions
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Results first-half 2002 Outlook conclusions
2002 forecasts confirmed

• Spirits Wine
• Increase in sales of around 90 on 2001
• Double 2001 operating profit (Spirits and Wine)

• EPS of 6.40

• Continued debt reduction Gearing of about 1 at
  31 December 2002

excluding exceptionals and goodwill
amortisation, diluted for convertible bonds (61 m
shares)
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Appendices
39
Volumes uneven brand contributions

• Historical global brands growing strongly
• Overstocking of Seagram brands to 30/06/02

40
Summary profit and loss account Spirits Wine
Including production costs
41
Results first-half 2002 Non-core businesses
Fruit preparations
Distribution
42
Consolidated summary profit and loss account
Including production costs
43
Proforma consolidated contribution of the brands
Proforma Half-year SW (Pernod Ricard Seagram)
44
Tax Impact of exceptional items
Total tax 71 m
Recurring items
Exceptional items
Reduction in the recurring tax rate (29 at 30
June 2001 in line with estimates for the
acquisition of Seagram
45
Consolidated summary profit and loss account
46
Consolidated cash flow statement
47
Consolidated balance sheet
Net of redemption premium