Reinforcing leadership in Asia

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1 Pierre Coppéré, Chairman & CEO of Pernod Ricard Asia Reinforcing leadership in Asia 28 May 2013

2 Ambitious mid-term objective Expand leadership in Premium + Western Style Spirits (1) Value Share (2) > 40% by pts vs Grow organically Double-digit profit growth (1) Above 7 USD (2) Gross margin 2

3 Vision and ambition of Pernod Ricard Asia VISION AMBITION To spearhead and embody Pernod Ricard Road to leadership being the game changer within the Industry in Asia By accelerating LEADERSHIP MODEL INNOVATION Leading Premium brands Leaders Excellence Untapped territories New initiatives In order to meet our mid-term objective Reinforcing our leadership 3

4 Incredible success story over a decade for Pernod Ricard Asia Since acquisition of Seagram s, business x10 in 10 years Net Sales Business Profit > 1bn x7 x

5 Success across the whole region China India Vietnam Net Sales Business Profit Net Sales Business Profit Net Sales Business Profit x27 x50 x29 x7 x11 x

6 The Pernod Ricard leadership model We sell our own brands with our own people. Patrick Ricard 6

7 Building leading premium brands Volume Value Cognac 2 1 Scotch Whisky 2 1 Premium Vodka 2 1 Premium Indian Whiskies 1 1 7

25 years of presence in Asia Dubai 18 2002 2 25% 1 38 2001 1997 830 1 Delhi Office based in Hong Kong 42% 47% 2 100 1993

2012 2 12% Phnom Penh 1 Shanghai Taipei 1 105 2010 57% 2 254 1992 36% Seoul Tokyo 1 142 1990 1 102 1992 27% Manila 2 19

8 25 years of presence in Asia Dubai % Delhi Office based in Hong Kong 42% 47% % Bangkok % Kuala Lumpur 42% % % 1 HCMC Singapore Jakarta Hong Kong % Phnom Penh 1 Shanghai Taipei % % Seoul Tokyo % Manila % % 10% 2, ,000 promoters 35% HC 1 VAL MS Headcount Market Position Value Marketshare Creation Date 8

9 Successful road to leadership in Vietnam Volumes x15 in 10 years Anh Nguyen recruited as promotion supervisor in Representative office (created in 1994) Anh appointed Country Manager 2003 Anh creates AUA, local exclusive distributor of Pernod Ricard products in Vietnam, and becomes Managing Director 2011 Incorporation of Pernod Ricard Vietnam (purchase of AUA) and Anh appointed Managing Director 2013 Pernod Ricard Vietnam #1 in Premium+ Western Style Spirits #1 market worldwide for Chivas Regal 18/25yo Anh Nguyen 9

10 The Pernod Ricard leadership model Leading brands Premiumisation Innovation Decentralization Culture Supported by Leaders Excellence 10

11 Sustained momentum despite recent challenging environment Index 100 in 10/11 Reported growth (actual Fx) **Estimate 11

12 Mid/long term outlook remains positive and favourable GDP outlook growth % Asian growth to remain durably higher than world average Developing Asia World China India Korea China, India and even Korea show solid perspectives These 3 markets represent more than 2/3 of Asia business for Pernod Ricard Source: IMF, World Economic Outlook, April

13 Looking forward Huge reservoir for growth 2012 Wines & Spirits 2.8bn Premium + Western Style Spirits 83m 9L Cs (3% of total) Volumes Gross margin Western Style Spirits 373m (13% of W&S) +12% +10% Imported Spirits 28m (1% of W&S) 83 4 Unit: 9L case Growth: vs FY12 FY16 m 9L Cs % CAGR FY12 bn FY16 Source: IWSR + Pernod Ricard Market View All alcohol: beer, W&S and cider (DM & DF markets); Western style W&S: imported & local W&S (DM & DF markets); Imported W&S: DM & DF markets 13

14 Looking forward Key opportunities MACs and HNWIs growth remains strong Chinese travellers and women emerging as new consumer groups Growing urbanization calling for geo expansion Modern trade (On+Off) growing in importance Increasing impact of social media and e-commerce 14

15 Moving forward To seize each of these opportunities, Pernod Ricard will Focus on key battlegrounds Be entrepreneurial and innovative Commit to excellence Live by its values Be responsible 15

16 Key battlegrounds and ambitions Value leadership Luxury penetration Accelerate profitable growth relays Expand in new territories Excellence in enabling capabilities Lead value growth in Cognac, Whiskies and Vodka Become Leader in Ultra Prestige + Absolut, Malt, Champagne and Wine Meal occasion, Beer conversion, Female offerings, Geo expansion HR road to leadership Influential marketing Ultra Prestige+ > 300 USD a bottle 16

17 Key battlegrounds and ambitions Value leadership Luxury penetration Accelerate profitable growth relays Expand in new territories Excellence in enabling capabilities Lead value growth in Cognac, Whiskies and Vodka Become Leader in Ultra Prestige + Absolut, Malt, Champagne and Wine Meal occasion, Beer conversion, Female offerings, Geo expansion HR road to leadership Influential marketing Ultra Prestige+ > 300 USD a bottle 17

18 Value leadership Leverage commanding positions in 2 largest Asian markets: China & India in strategic showcase Travel Retail in fastest growth opportunity: Vietnam to lead Value Growth in Cognac, Whiskies and Vodka 18

19 Key battlegrounds and ambitions Value leadership Luxury penetration Accelerate profitable growth relays Expand in new territories Excellence in enabling capabilities Lead value growth in Cognac, Whiskies and Vodka Become Leader in Ultra Prestige + Absolut, Malt, Champagne and Wine Meal occasion, Beer conversion, Female offerings, Geo expansion HR road to leadership Influential marketing Ultra Prestige+ > 300 USD a bottle 19

Market Share 23% Objective is to become Net sales x2 in 1bn 3

20 Luxury penetration Leader in Prestige + Leader in Ultra Prestige + NS PR Asia Value Market Share 33% 45% NS PR Asia 3% Value Market Share 23% Objective is to become Net sales x2 in 1bn 3 years Prestige + > 84 USD a bottle Ultra Prestige + > 300 USD a bottle 20

21 Leader in Ultra Prestige+ Royal Salute Diamond Tribute Martell Showcase Activation Perrier Jouët New ATL and Activation Le Cercle Connoisseurs Club Launch June 2013 Hong Kong Celebrating gastronomy in Hong Kong at Kee Private Members club Travel Retail LAUNCHED AT HAINAN RENDEZVOUS Royal Salute marks the 60 th anniversary of its creation with the addition of a new jewel in the range. Cathay Pacific 1 st class lounge new ATL creative to be run in Asia. Le Cercle is an invitation only club for discerning wine and spirits enthusiasts, its mission is to provide inspirational lifestyle experiences rooted in gastronomy, heritage, craftsmanship and to develop knowledge among its members while celebrating Pernod Ricard s Ultra Prestige products. 21

22 Key battlegrounds and ambitions Value leadership Luxury penetration Accelerate profitable growth relays Expand in new territories Excellence in enabling capabilities Lead value growth in Cognac, Whiskies and Vodka Become Leader in Ultra Prestige + Absolut, Malt, Champagne and Wine Meal occasion, Beer conversion, Female offerings, Geo expansion HR road to leadership Influential marketing Ultra Prestige+ > 300 USD a bottle 22

23 Accelerate profitable growth relays Absolut Achievement Volumes x2 (CAGR +20% since acquisition) Absolut Elyx Launched in 12/13 Malt Champagne Wine The Glenlivet #5 to #3 position in 3 years Volumes x2(cagr +25%) #2 in Asia GH Mumm#3 Perrier Jouët# 5 # 1 in Premium + Wines In China and India Ambition > 1Mcs by 2015 China, India, Korea, Thailand, Travel Retail 10% of Super Premium vodka market in Asia #2 by 2015 Malt portfolio strategy launch of Aberlour Capture a significant part of future growth Unlock growth > 1 Mcsby

24 Key battlegrounds and ambitions Value leadership Luxury penetration Accelerate profitable growth relays Expand in new territories Excellence in enabling capabilities Lead value growth in Cognac, Whiskies and Vodka Become Leader in Ultra Prestige + Absolut, Malt, Champagne and Wine Meal occasion, Beer conversion, Female offerings, Geo expansion HR road to leadership Influential marketing Ultra Prestige+ > 300 USD a bottle 24

25 Expand in new territories Increase penetration in the meal occasion Continue to develop existing portfolio offerings for MACswith Vodka, Liquor & Whisky (Super Premium) Educate in food pairing and connect cuisine with spirits categories and premiumise Jacob s Creek food pairing wines JC Wa(sushi wine) designed by top Japanese chef launched in March 13 in Japan & new launches to come Tastesetters(China) Content web-site pairing food with PR products for formal and informal occasions Martell project Coming soon St Hugo Vineyard (China) Channel focus on Chinese restaurants and new packaging to communicate heritage and provenance 25

26 Expand in new territories Encourage Beer Conversion Explore mixed drink innovation & RTD to accelerate beer conversion Develop innovation pipeline and ritual-based conversion tactics Chivas Hi (China) Refreshing long drink service ritual including Chivas Hi service machine pilot test in Shanghai Chivas X (Japan): Signature high ball Refreshing frozen drink service ritual 2,000 targeted outlets: +82% of rotation Absolut (China) 3 channel strategy to target beer (FKTV, IHRB, Bar) Malibu (China/India/Japan) Convenient and refreshing RTD/RTG small format 26

Expand in new territories Perrier Jouët Belle Epoque Joshi kai

de Paris (Japan) Frequent flavour New Products Developments to

women at home Kahlúa Expansion (China) Distribution & Activation

consumers through New Products Developments, mixed drink solutions

27 Expand in new territories Perrier Jouët Belle Epoque Joshi kai (Japan) Annual limited edition for leisure ladies influencers Café de Paris (Japan) Frequent flavour New Products Developments to leverage current trend Kahlúa RTD (Japan) Relax & unwind moments for women at home Kahlúa Expansion (China) Distribution & Activation Develop Female Offerings Accelerate the recruitmentof female consumers through New Products Developments, mixed drink solutions and wine Explore convenient and smaller format offerings to increase trial and adoption 27

28 Expand in new territories Geo expansion in existing markets China salesforce +10% in 3 years to cover new cities India salesforce +25% in 3 years to increase channels coverage Vietnam salesforce +33% in 2 years to cover Mekong delta (Can Tho), Center(Danang) and North (Vinh) Opening affiliates in new markets (Vietnam model) Cambodia with promising results in year 1 Volumes +60% Value +60% Market share +2pts Laos, Myanmar, Mongolia 28

29 Key battlegrounds and ambitions Value leadership Luxury penetration Accelerate profitable growth relays Expand in new territories Excellence in enabling capabilities Lead value growth in Cognac, Whiskies and Vodka Become Leader in Ultra Prestige + Absolut, Malt, Champagne and Wine Meal occasion, Beer conversion, Female offerings, Geo expansion HR road to leadership Influential marketing Ultra Prestige+ > 300 USD a bottle 29

30 Excellence in enabling capabilities HR road to leadership Influential marketing 30

146 G: 200 B:80 COMP2 GOLD R: 212 G: 175 B: 55 OTHER R: 195 G: 12 B: 62 HIGHLIGHT ORANGE R: 247 G: 150 B:

146 G: 200 B:80 COMP2 GOLD R: 212 G: 175 B: 55 OTHER R: 195 G: 12 B: 62 HIGHLIGHT ORANGE R: 247 G: 150 B: Asia Conference March 27 th, 2014 CONTENTS Short-term pause in the long-term growth Not the first time Impressive rebound post 2008 crisis Leading to record high comparables Current environment is particularly