9777.pdf - REGISTRATION DOCUMENT INCLUDING THE ANNUAL FINANCIAL REPORT CONTENTS PERNOD RICARD AT A GLANCE 1 EXTRACTS FROM THE INTEGRATED ANNUAL REPORT

9777.pdf - REGISTRATION DOCUMENT INCLUDING THE ANNUAL...

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Unformatted text preview: ô REGISTRATION DOCUMENT INCLUDING THE ANNUAL FINANCIAL REPORT CONTENTS PERNOD RICARD AT A GLANCE 1 EXTRACTS FROM THE INTEGRATED ANNUAL REPORT Message from the chairman & chief executive officer Our history: a social & entrepreneurial adventure Identifying experiences of conviviality around the world Our DNA: the Pernod Ricard mindset a winning spirit of conquest Our unique and dynamic portfolio: to meet local market needs Our organisation: decentralised to capture new business opportunities Our consumer-focused strategy Our S & R model: for sustainable growth Board of directors The executive committee and the executive board Creating shared value Our key financial figures 2 CORPORATE GOVERNANCE 2 5 6 8 10 14 16 18 20 22 24 26 28 31 2.1 Report of the Board of Directors on corporate governance 2.2 Internal control and risk management ™ 2.3 Financial and accounting reporting ™ 33 80 82 Committed to the future while embracing our past 3.1 A strategy built around the concept of “Créateurs de convivialité” 3.2 Empower our employees 3.3 Promote responsible drinking 3.4 Develop communities and involve our partners 3.5 Protecting the planet 3.6 Presentation and implementation of the monitoring plan 3.7 Verifying non-financial information 3.8 Reference table for the united nations global compact principles and the sustainable development goals (SDGs) 3.9 Report by one of the Statutory Auditors, appointed as independent third party, on the consolidated human resources, environmental and social information included in the management report 4 MANAGEMENT REPORT ™ 4.1 Key figures from the consolidated financial statements for the year ended 30 June 2018 4.2 Analysis of business activity and results 4.3 Net debt 4.4 Outlook 4.5 Definitions and RECONCILIATION of alternative performance indicators with IFRS indicators 4.6 Risk management 4.7 Significant contracts 5.1 5.2 5.3 5.4 5.5 5.6 5.7 12 AND INTERNAL CONTROL 3 SUSTAINABILITY & RESPONSIBILITY ™ 5 CONSOLIDATED FINANCIAL STATEMENTS ™ 83 84 85 88 94 97 103 117 121 124 Consolidated income statement Consolidated statement of comprehensive income Consolidated balance sheet Changes in consolidated shareholders’ equity Consolidated cash flow statement Notes to the consolidated financial statements Statutory auditors' report on the consolidated financial statements RICARD SA FINANCIAL 6 PERNOD STATEMENTS ™ 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 Pernod Ricard SA income statement Pernod Ricard SA balance sheet Pernod Ricard SA cash flow statement Analysis of Pernod Ricard SA results Notes to the Pernod Ricard SA financial statements Other elements relating to the financial statements Financial results over the last five financial years Dividends distributed over the last five financial years Inventory of marketable securities Statutory Auditors’ report on the financial statements Statutory Auditors’ special report on regulated agreements and commitments 7 COMBINED SHAREHOLDERS’ MEETING 7.1 Combined shareholders' meeting held on 21 november 2018 - Agenda 7.2 Presentation of the resolutions of the Combined Shareholders’ Meeting held on 21 November 2018 7.3 Draft resolutions of the combined shareholders' meeting held on 21 november 2018 7.4 Statutory Auditors’ report on the issuance of ordinary shares or securities conferring entitlement to share capital, reserved for members of company saving plans 7.5 Statutory Auditors' report on the issuance of ordinary shares orsecurities conferring entitlement to share capital, with cancellation of preferential subscription rights 8 ABOUT THE COMPANY AND ITS SHARE CAPITAL 8.1 Information about Pernod Ricard 8.2 Information about THE share capital 125 129 130 132 135 136 9 ADDITIONAL INFORMATION TO THE REGISTRATION DOCUMENT 9.1 Persons responsible ™ 9.2 Documents on display 9.3 Reference tables 151 152 153 154 156 157 158 200 205 206 207 209 210 212 225 226 227 228 229 232 235 236 237 240 247 248 249 250 252 257 258 258 259 137 138 147 Items in the annual financial report (AFR) are clearly identified in the contents by the pictogram ™ 2017 2O18 REGISTRATION DOCUMENT INCLUDING THE ANNUAL FINANCIAL REPORT This Registration Document was filed with the French Financial Markets Authority (Autorité des Marchés Financiers – AMF) on 26 September 2018, in accordance with article 212-13 of its General Regulation. It may be used in support of a financial transaction if it is supplemented by a prospectus approved by the French Financial Markets Authority. This document has been prepared by the issuer under the liability of the signatories. Copies of the Registration Document are available from the Group Pernod Ricard, 12 place des États-Unis – 75783 PARIS Cedex 16, on the Pernod Ricard website: and on the AMF website: . 1 PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 PERNOD RICARD WORLD No. 1 for Premium and Prestige spirits(a) RESULTS FOR FY18: VERY STRONG YEAR: BUSINESS ACCELERATING 86 MARKET COMPANIES spread across three regions Alexandre Ricard, Chairman & CEO, declared: “ &zϭϴǁĂƐĂǀĞƌLJƐƚƌŽŶŐLJĞĂƌ͘ŽŶƐŝƐƚĞŶƚƐƚƌĂƚĞŐŝĐŝŵƉůĞŵĞŶƚĂƚŝŽŶŚĂƐĞŶĂďůĞĚƵƐƚŽ ĚĞůŝǀĞƌĂƐŝŐŶŝĨŝĐĂŶƚŝŵƉƌŽǀĞŵĞŶƚŝŶďƵƐŝŶĞƐƐƉĞƌĨŽƌŵĂŶĐĞǁŚŝůĞŝŶǀĞƐƚŝŶŐĨŽƌƚŚĞĨƵƚƵƌĞ͘ KƵƌ^ĂůĞƐŚĂǀĞĂĐĐĞůĞƌĂƚĞĚĂŶĚĚŝǀĞƌƐŝĨŝĞĚ͕ĂŶĚŽƵƌŵĂƌŐŝŶƐŝŵƉƌŽǀĞĚ͘ 85% of affiliates have implemented at least one action to promote RESPONSIBLE DRINKING 93 AT A GLANCE /Ŷ&zϭϵ͕ŝŶĂƐƚŝůůƵŶĐĞƌƚĂŝŶŐĞŽƉŽůŝƚŝĐĂůĂŶĚŵŽŶĞƚĂƌLJĞŶǀŝƌŽŶŵĞŶƚ͕ǁĞǁŝůůĐŽŶƚŝŶƵĞ ĐŽŶƐŝƐƚĞŶƚůLJŝŵƉůĞŵĞŶƚŝŶŐŽƵƌƐƚƌĂƚĞŐLJ͘KƵƌŐƵŝĚĂŶĐĞĨŽƌ&zϭϵŝƐŽƌŐĂŶŝĐŐƌŽǁƚŚŝŶWƌŽĨŝƚ ĨƌŽŵZĞĐƵƌƌŝŶŐKƉĞƌĂƚŝŽŶƐďĞƚǁĞĞŶнϱйĂŶĚнϳй͘ ” Key Figures production SITES WƌŽĮƚĨƌŽŵ Recurring KƉĞƌĂƟŽŶƐ (b) ΦŵŝůůŝŽŶ 20% reduction in water consumption(c) 30% reduction in COЖ emissions(c) Net sales 26.2%(1) 'ƌŽƵƉEĞƚWƌŽĮƚ ĨƌŽŵZĞĐƵƌƌŝŶŐ KƉĞƌĂƟŽŶƐ (3) FY18 8,987 2,358 Organic growth(2) +6.0% +6.3% +10.3% Reported growth 0% -2% +2% FY17 9,010 2,394 26.6%(1) Group Net WƌŽĮƚ Proposed dividend 1,577 €2.36 per share(4) 1,511 1,483 +17% 1,393 €2.02 per share ;ϭͿKƉĞƌĂƚŝŶŐŵĂƌŐŝŶ͘ ;ϮͿKƌŐĂŶŝĐŐƌŽǁƚŚŝƐĚĞĨŝŶĞĚŽŶƉĂŐĞϭϯϳŽĨƚŚŝƐĚŽĐƵŵĞŶƚ͘ ;ϯͿ'ƌŽƵƉEĞƚWƌŽĨŝƚĨƌŽŵZĞĐƵƌƌŝŶŐKƉĞƌĂƚŝŽŶƐ͗WƌŽĨŝƚĨƌŽŵZĞĐƵƌƌŝŶŐKƉĞƌĂƚŝŽŶƐ͕ĂĚũƵƐƚĞĚĨŽƌĨŝŶĂŶĐŝĂůƌĞƐƵůƚĨƌŽŵƌĞĐƵƌƌŝŶŐ ŽƉĞƌĂƚŝŽŶƐ͕ƌĞĐƵƌƌŝŶŐŝŶĐŽŵĞƚĂdž͕ƐŚĂƌĞŽĨŶĞƚƌĞƐƵůƚŽĨĂƐƐŽĐŝĂƚĞƐ͕ƉƌŽĨŝƚĨƌŽŵĂƐƐĞƚƐŚĞůĚĨŽƌƐĂůĞ͕ĂŶĚŶŽŶͲĐŽŶƚƌŽůůŝŶŐ ŝŶƚĞƌĞƐƚ͘ ;ϰͿŝǀŝĚĞŶĚƉƌŽƉŽƐĞĚĨŽƌĂƉƉƌŽǀĂůďLJƚŚĞ^ŚĂƌĞŚŽůĚĞƌƐ͛DĞĞƚŝŶŐŽĨϮϭEŽǀĞŵďĞƌϮϬϭϴ͘ PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 2 AN INTERNATIONAL AND DECENTRALISED GROUP €ര8,987M in net sales €ര2,358M Group net profit AMERICA EUROPE ASIA/REST OF THE WORLD €2,546M €2,792M €3,648M €735M €626M €996M 3,626 (d) 9,345 (d) 5,510 (d) 18,481 employees (d) The decentralised model which characterises Pernod Ricard is a major strategic advantage that enables the Group to seize every opportunity for growth. This highly flexible organisation, based on proximity to consumers and customers, has proven its effectiveness. The Group is present in the three major regions of the world, both in mature and emerging markets. This is a real competitive advantage, making it well positioned to benefit from future growth drivers. WORLD No. 2 for wines and spirits ;ĂͿ ^ŽƵƌĐĞ͗͞dŚĞWĞƌŶŽĚZŝĐĂƌĚDĂƌŬĞƚsŝĞǁ͕͟ďĂƐĞĚŽŶ/t^ZǀŽůƵŵĞĚĂƚĂĂƚĞŶĚϮϬϭϳ͘ ;ďͿ EƵŵďĞƌŽĨƐŝƚĞƐŽƉĞƌĂƚŝŶŐĂƐŽĨϯϬ:ƵŶĞϮϬϭϴ͘ ;ĐͿ ZĞĚƵĐƚŝŽŶƉĞƌƵŶŝƚŽĨƉƌŽĚƵĐƚŝŽŶďĞƚǁĞĞŶ&zϭϬĂŶĚ&zϭϴ͘ ;ĚͿ ǀĞƌĂŐĞǁŽƌŬĨŽƌĐĞĚƵƌŝŶŐƚŚĞ&zϭϴ͘ ;ĞͿ ^ŽƵƌĐĞ͗/ŵƉĂĐƚĂƚĂďĂŶŬϮϬϭϳ͕ƉƵďůŝƐŚĞĚŝŶDĂƌĐŚϮϬϭϴ͘ ;ĨͿ ^ŽƵƌĐĞ͗͞ŝ^ĂLJ͟ƐƵƌǀĞLJϮϬϭϳ͘ 16 BRANDS amongst the world’s top 100ര(e) A UNIQUE PORTFOLIO OF PREMIUM BRANDS Pernod Ricard has built a unique portfolio of Premium brands on an international scale that is one of the most comprehensive on the market. This portfolio is managed thanks to the “House of Brands”, a dynamic tool that allows our affiliates to more easily prioritise their marketing investments. 94% of employees are PROUD to be part of PERNOD RICARDര(f) 3 PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 4 1 EXTRACTS FROM THE INTEGRATED ANNUAL REPORT MESSAGE FROM THE CHAIRMAN & CHIEF EXECUTIVE OFFICER OUR HISTORY: A SOCIAL & ENTREPRENEURIAL ADVENTURE IDENTIFYING EXPERIENCES OF CONVIVIALITY AROUND THE WORLD OUR CONSUMER-FOCUSED STRATEGY 18 OUR S & R MODEL: FOR SUSTAINABLE GROWTH 20 BOARD OF DIRECTORS 22 THE EXECUTIVE COMMITTEE AND THE EXECUTIVE BOARD 24 CREATING SHARED VALUE 26 OUR KEY FINANCIAL FIGURES 28 6 8 10 OUR DNA: THE PERNOD RICARD MINDSET A WINNING SPIRIT OF CONQUEST 12 OUR UNIQUE AND DYNAMIC PORTFOLIO: TO MEET LOCAL MARKET NEEDS 14 OUR ORGANISATION: DECENTRALISED TO CAPTURE NEW BUSINESS OPPORTUNITIES 16 5 PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 MESSAGE FROM THE CHAIRMAN & CHIEF EXECUTIVE OFFICER ALEXANDRE RICARD MESSAGE FROM THE CHAIRMAN & CHIEF EXECUTIVE OFFICER The memory of France’s second FIFA World Cup victory in the summer of 2018 will remain with me for ĂůŽŶŐƟŵĞ͘tŚŝůĞĂƌĞŵĂƌŬĂďůĞƐƉŽƌƟŶŐĂĐŚŝĞǀĞŵĞŶƚ ŝŶŝƚƐĞůĨ͕ǁŚĂƚƌĞĂůůLJƐƚƌƵĐŬŵĞǁĂƐƚŚĞŵŝůůŝŽŶƐŽĨ ƉĞŽƉůĞǁŚŽĐĞůĞďƌĂƚĞĚƚŚĞǁŝŶǁŝƚŚƐƵĐŚĐŽůůĞĐƟǀĞ njĞĂů͘ ƌŽǁĚƐ ŽĨ ƉĞŽƉůĞ ƐƉŽŶƚĂŶĞŽƵƐůLJ ĐŽŶǀĞƌŐĞĚ ŽŶ ĞǀĞŶ ƚŚĞ ƐŵĂůůĞƐƚ ŽĨ ǀŝůůĂŐĞ ƐƋƵĂƌĞƐ͕ ƐƚƌĂŶŐĞƌƐ ďƌŽƵŐŚƚƚŽŐĞƚŚĞƌďLJƚŚĞŝƌƐŚĂƌĞĚƵƌŐĞƚŽĐĞůĞďƌĂƚĞƚŚŝƐ ĞdžĐĞƉƟŽŶĂůĞǀĞŶƚ͘,ŽǁĚŽLJŽƵĞdžƉůĂŝŶƚŚŝƐĚĞƐŝƌĞƚŽďĞ ƵŶŝƚĞĚŝŶũŽLJ͍dŚĞŽďǀŝŽƵƐĞdžƉůĂŶĂƟŽŶŝƐƚŚĂƚƚŚĞŶĞĞĚ ĨŽƌƐŚĂƌŝŶŐĂŶĚďĞŝŶŐƚŽŐĞƚŚĞƌŝƐƐŝŵƉůLJƉĂƌƚŽĨŚƵŵĂŶ ŶĂƚƵƌĞ͖ŝƚďƌŝŶŐƐƵƐĂƐĞŶƐĞŽĨǁĞůůďĞŝŶŐ͘dŚĂƚ͛ƐǁŚĂƚǁĞ ŵĞĂŶǁŚĞŶǁĞƐƉĞĂŬĂďŽƵƚ͞ĐŽŶǀŝǀŝĂůŝƚĠ͟ʹĂŶĚǁŚĂƚ ŝƐŵŽƌĞĐŽŶǀŝǀŝĂůƚŚĂŶƐŚĂƌŝŶŐĂĚƌŝŶŬĂŶĚƐŚĂƌŝŶŐŐŽŽĚ ƟŵĞƐǁŝƚŚĨƌŝĞŶĚƐŽůĚĂŶĚŶĞǁ͍ ĐĞƌƚĂŝŶ ĂƌƚĚĞǀŝǀƌĞŝƐďŽƌŶƚŚƌŽƵŐŚŵŽĚĞƌĂƟŽŶĂŶĚ ŬĞĞƉŝŶŐƚŚŝŶŐƐŝŶďĂůĂŶĐĞ͘ EŽǁƚŚĞƉŽŝŶƚŚĞƌĞŝƐŶŽƚƚŽŐůŽƌŝĨLJĂůĐŽŚŽů͘dŚĞƌĞ ŝƐŶŽĐŽŶǀŝǀŝĂůŝƚLJƚŽďĞŚĂĚŝŶĞdžĐĞƐƐʹƋƵŝƚĞƚŚĞĐŽŶƚƌĂƌLJ͕ ŝŶĨĂĐƚ͘ƵƚůŝŬĞƚŚĞƐŽĐŝĂůĐŽŶŶĞĐƟŽŶƐŝƚŶƵƌƚƵƌĞƐ͕Ă We have linked the achievement of our vision ͞ƌĠĂƚĞƵƌƐĚĞĐŽŶǀŝǀŝĂůŝƚĠ͟ƚŽŽƵƌĂŵďŝƟŽŶ͘dŚĞĚĂLJ ǁŚĞŶŽƵƌƉƌĞŵŝƵŵďƌĂŶĚƐƵŶĚĞƌƉŝŶĂůůŵŽŵĞŶƚƐŽĨ PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 This is precisely the meaning of our vision “Créateurs de convivialité”, and the underlying theme ŽĨŽƵƌĮƌƐƚĐŽƌƉŽƌĂƚĞĐĂŵƉĂŝŐŶƚŚĂƚǁŝůůďĞĚĞƉůŽLJĞĚ ŽǀĞƌƚŚĞŶĞdžƚĮƐĐĂůLJĞĂƌ͘dŽƉƌŽǀĞŽƵƌŚLJƉŽƚŚĞƐŝƐ͕ǁĞ ƉƌŽĚƵĐĞĚĂƐŚŽƌƚĚŽĐƵŵĞŶƚĂƌLJŝŶǁŚŝĐŚǁĞƚƌĂǀĞůůĞĚ ĂĐƌŽƐƐƚŚĞŐůŽďĞƚŽŵĞĞƚƌĞĂůͲůŝĨĞĐŽŶƐƵŵĞƌƐ͘/ƌƌĞƐƉĞĐƟǀĞ ŽĨĐƵůƚƵƌĞĂŶĚƐŽĐŝĂůŽƌŝŐŝŶ͕ƚŚĞĮůŵƌĞǀĞĂůƐƚŚŝƐƵŶŝǀĞƌƐĂů ĚĞƐŝƌĞƚŽĐŽŵĞƚŽŐĞƚŚĞƌĂŶĚƐŚĂƌĞŵŽŵĞŶƚƐŽĨƉƵƌĞ ĂŶĚĂƵƚŚĞŶƟĐũŽLJ͘dǁĞŶƚLJLJĞĂƌƐĂŌĞƌƚŚĞĚĞĂƚŚŽĨŵLJ ŐƌĂŶĚĨĂƚŚĞƌĂŶĚ'ƌŽƵƉĐŽͲĨŽƵŶĚĞƌWĂƵůZŝĐĂƌĚ͕ŚŝƐŵŽƩŽ ƚŽ͞DĂŬĞĂŶĞǁĨƌŝĞŶĚĞǀĞƌLJĚĂLJ͟ŚĂƐĂĐƋƵŝƌĞĚŶĞǁ ƌĞůĞǀĂŶĐĞŝŶĂŶŝŶĐƌĞĂƐŝŶŐůLJĐŽŶŶĞĐƚĞĚĂŶĚǀŝƌƚƵĂůǁŽƌůĚ͘ 6 “ONLY COMPANIES THAT UNDERTAKE AN IN-DEPTH ORGANISATIONAL TRANSFORMATION WILL SUCCEED IN IMPROVING THEIR AGILITY AND PERFORMANCE, THEREBY MAKING THE MOST OF THIS CHANGING ENVIRONMENT.” ĐĞůĞďƌĂƟŽŶ͕ŽĐĐĂƐŝŽŶƐĨŽƌƐŚĂƌŝŶŐĂŶĚŐĞƚͲƚŽŐĞƚŚĞƌƐ ĂŵŽŶŐĨƌŝĞŶĚƐʹŝŶƐŚŽƌƚ͕ĞǀĞƌLJĞdžƉĞƌŝĞŶĐĞŽĨĐŽŶǀŝǀŝĂůŝƚLJ ʹŝƐƚŚĞĚĂLJǁĞǁŝůůďĞĐŽŵĞƚŚĞĚĞĨĂĐƚŽŵĂƌŬĞƚůĞĂĚĞƌ͘ dŽƉƵƌƐƵĞƚŚŝƐĂŵďŝƟŽŶ͕ǁĞŵƵƐƚƐƵĐĐĞĞĚŝŶŶĂǀŝŐĂƟŶŐ ĂŶŝŶĐƌĞĂƐŝŶŐůLJĐŽŵƉůĞdžĞŶǀŝƌŽŶŵĞŶƚƚŽƐƵƌŵŽƵŶƚƚŚĞ ĨŽůůŽǁŝŶŐĮǀĞĐŚĂůůĞŶŐĞƐ͗ ƉƌŽĮƚĨƌŽŵƌĞĐƵƌƌŝŶŐŽƉĞƌĂƟŽŶƐŝƐƵƉϲ͘ϯй͕ĂŶĚǁĞŚĂǀĞ ƌĞĚƵĐĞĚĚĞďƚďLJŶĞĂƌůLJŽŶĞďŝůůŝŽŶĞƵƌŽƐLJĞĂƌͲŽŶͲLJĞĂƌ͘ ĂƐĞĚ ŽŶ ƚŚĞƐĞ ƉŽƐŝƚŝǀĞ ĨŝŐƵƌĞƐ ǁĞ ĂƌĞ ŝŶĐƌĞĂƐŝŶŐ ƐŚĂƌĞŚŽůĚĞƌĚŝǀŝĚĞŶĚƐ͕ǁŝƚŚĂƉĂLJŽƵƚƌĂƟŽƌĞǀŝƐĞĚƚŽϰϭй͘ zĞƚŽƵƌĮŶĂŶĐŝĂůĚŝƐĐŝƉůŝŶĞŚĂƐŶŽƚƉƌĞǀĞŶƚĞĚƵƐĨƌŽŵ ƉƌĞƉĂƌŝŶŐĨŽƌŽƵƌĨƵƚƵƌĞ͕ĂƐƌĞŇĞĐƚĞĚŝŶƚŚĞƌŝƐĞŝŶŽƵƌ ŵĂƌŬĞƟŶŐĞdžƉĞŶĚŝƚƵƌĞ͘ ϭ͘ĚĚƌĞƐƐƚŚĞĐŚĂůůĞŶŐĞƐĂŶĚƐĞŝnjĞƚŚĞŽƉƉŽƌƚƵŶŝƟĞƐ ŽĨĂŶĞǁŐĞŽƉŽůŝƟĐĂůĐŽŶƚĞdžƚ͕ĐŚĂƌĂĐƚĞƌŝƐĞĚďLJƚŚĞƌŝƐĞ ŽĨƉƌŽƚĞĐƟŽŶŝƐŵĂŶĚĂĚƌĂŵĂƟĐĂůůLJŶĞǁĐŽŶƐƵŵĞƌ ůĂŶĚƐĐĂƉĞ͖ Ϯ͘dƌĂŶƐĨŽƌŵƚŚĞƚĞĐŚŶŽůŽŐŝĐĂůƌĞǀŽůƵƟŽŶͲŝŐĂƚĂ͕ ĂƌƟĮĐŝĂůŝŶƚĞůůŝŐĞŶĐĞ͕ĐŽŶŶĞĐƚĞĚŽďũĞĐƚƐ͕ĞƚĐ͘ͲŝŶƚŽĂ ŐƌŽǁƚŚĚƌŝǀĞƌ͖ ϯ͘WƌĞͲĞŵƉƚƚŚĞĐŽŶƐƵŵƉƟŽŶƉĂƩĞƌŶƐŽĨŶĞǁĞŵĞƌŐŝŶŐ ĐůĂƐƐĞƐŝŶĐŽƵŶƚƌŝĞƐƵŶĚĞƌŐŽŝŶŐƌĂƉŝĚĚĞŵŽŐƌĂƉŚŝĐĂŶĚ ĞĐŽŶŽŵŝĐĚĞǀĞůŽƉŵĞŶƚ͖ ϰ͘^ĂƟƐĨLJƚŚĞĚĞƐŝƌĞĨŽƌŵŽƌĞĂƵƚŚĞŶƟĐŝƚLJ͕ƚƌĂŶƐƉĂƌĞŶĐLJ͕ ƉƌŽdžŝŵŝƚLJĂŶĚĞŶǀŝƌŽŶͲ ŵĞŶƚĂůƉƌŽƚĞĐƟŽŶ͖ ϱ͘ƩƌĂĐƚ͕ƌĞƚĂŝŶĂŶĚĚĞͲ ǀĞůŽƉƚĂůĞŶƚƐďLJƌĞƚŚŝŶŬͲ ŝŶŐŽƵƌǁĂLJƐŽĨǁŽƌŬŝŶŐ͘ On that note, what will tomorrow bring? Nothing ŝƐĐĞƌƚĂŝŶ͕ĂŶĚ/ĚĂƌĞƐĂLJŝƚ͛ƐƐƟůůŽŶůLJƚŚĞďĞŐŝŶŶŝŶŐ͘ tŚŝůĞǁĞŚĂǀĞƐŽůŝĚĨŽƵŶĚĂƟŽŶƐ͕ŵƵĐŚƐƟůůŶĞĞĚƐƚŽďĞ ĚŽŶĞƚŽŬĞĞƉƵƉƚŚĞƉĂĐĞĂŶĚŝƚŐŽĞƐǁŝƚŚŽƵƚƐĂLJŝŶŐƚŚĂƚ ǁĞǁŝůůĐŽŶƟŶƵĞƚŽƚƌĂŶƐĨŽƌŵŽƵƌŽƌŐĂŶŝnjĂƟŽŶĂŶĚĨŽĐƵƐ ŽŶŐƌŽǁƚŚ͘dŚĞŶĞǁƚĂƌŐĞƚƐƚŚĂƚǁĞŚĂǀĞƐĞƚĨŽƌŽƵƌ ŵĂƌŬĞƚƐĚŝƌĞĐƚůLJƌĞŇĞĐƚƚŚŝƐ͕ǁŝƚŚŽƌŐĂŶŝĐŐƌŽǁƚŚŽĨŽƵƌ ĐƵƌƌĞŶƚŽƉĞƌĂƟŶŐƉƌŽĮƚĞdžƉĞĐƚĞĚďĞƚǁĞĞŶнϱйĂŶĚнϳй͘ /ŶŽƌĚĞƌƚŽĂƩĂŝŶƚŚŝƐŐŽĂů͕ǁĞǁŝůůĐŽŶƟŶƵĞƚŽŝŵƉůĞŵĞŶƚ ŽƵƌŬĞLJƐƚƌĂƚĞŐŝĐĚƌŝǀĞƌƐĐŽŶƐŝƐƚĞŶƚůLJĂĐƌŽƐƐĂůůŽƵƌ ŵĂƌŬĞƚƐ͗ ŽƉĞƌĂƚŝŽŶĂů ĞdžĐĞůůĞŶĐĞ͕ŝŶǀĞƐƚŵĞŶƚƐ ƚŽƐƚƌĞŶŐƚŚĞŶŽƵƌďƌĂŶĚƐ ĂŶĚŬĞLJŵĂƌŬĞƚƐ͕ŝŶŶŽͲ ǀĂƚŝŽŶ͕ ĂŶĚ ĚLJŶĂŵŝĐ ƉŽƌƚĨŽůŝŽŵĂŶĂŐĞŵĞŶƚ͘ tĞĂƌĞĂůƐŽůĂƵŶĐŚŝŶŐĂ ŶƵŵďĞƌŽĨŶĞǁŝŶŝƟĂƟǀĞƐ ƐƵĐŚĂƐ͞dƌĂŶƐĨŽZ,ŵ͕͟Ă ǁŚŽůůLJ ƌĞǀŝƐĞĚ ƚĂůĞŶƚ ŵĂŶĂŐĞŵĞŶƚƉŽůŝĐLJ͕ĂƐ ǁĞůů ĂƐ ĂŶ ŽƉƚŝŵŝƐĞĚ ĨŝŶĂŶĐŝĂů ŵĂŶĂŐĞŵĞŶƚ ŵŽĚĞů͞&ŝŶĂŶĐĞϰ͘Ϭ͕͟ƚŚĞ ƐĞĂƌĐŚĨŽƌŶĞǁƐŽƵƌĐĞƐ ŽĨŐƌŽǁƚŚƚŚƌŽƵŐŚƚŚĞ ŵŽŶĞƟƐĂƟŽŶŽĨŽƵƌĞdžƉĞͲ ƌ ŝĞŶĐĞƐ͕ĂŶĚůĂƐƚůLJ͕ĚĞƉůŽLJŝŶŐĂŶĞǁ^ƵƐƚĂŝŶĂďŝůŝƚLJĂŶĚ ZĞƐƉŽŶƐŝďŝůŝƚLJƉůĂƞŽƌŵǁŝƚŚŶĞǁƚĂƌŐĞƚƐŝĚĞŶƟĮĞĚŝŶ ŽƵƌϮϬϯϬƌŽĂĚŵĂƉ͘ Only companies that undertake an indepth organisational transformation ǁŝůů ƐƵĐĐĞĞĚ ŝŶ ŝŵƉƌŽǀŝŶŐ ƚŚĞŝƌĂŐŝůŝƚLJĂŶĚƉĞƌĨŽƌͲ ŵĂŶĐĞ͕ƚŚĞƌĞďLJŵĂŬŝŶŐ ƚŚĞŵŽƐƚŽĨƚŚŝƐĐŚĂŶŐŝŶŐ ĞŶǀŝƌŽŶŵĞŶƚ͘dŚĞ'ƌŽƵƉ͛Ɛ džĞĐƵƟǀĞŽŵŵŝƩĞĞĂŶĚ /ŝŶŝƟĂƚĞĚƚŚŝƐƚƌĂŶƐĨŽƌŵĂͲ ƟŽŶƚŚƌĞĞLJĞĂƌƐĂŐŽǁŝƚŚƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨĂŶĞǁ ĐŽŶƐƵŵĞƌͲĨŽĐƵƐĞĚďƵƐŝŶĞƐƐƐƚƌĂƚĞŐLJĂƐǁĞůůĂƐĂƉůĂŶ ĨŽƌŽƉĞƌĂƟŽŶĂůĞdžĐĞůůĞŶĐĞ͕ƚŚĞƌĞŽƌŐĂŶŝƐĂƟŽŶŽĨŽƵƌŬĞLJ ŵĂƌŬĞƚƐ;hŶŝƚĞĚ^ƚĂƚĞƐ͕ŚŝŶĂĂŶĚdƌĂǀĞůZĞƚĂŝůͿ͕ƚŚĞƌŽůůͲ ŽƵƚŽĨĂŶĂŵďŝƟŽƵƐĚŝŐŝƚĂůƌŽĂĚŵĂƉĂŶĚůƵdžƵƌLJƐƚƌĂƚĞŐLJ͕ ĂĨŽĐƵƐŽŶƉƌŽŵŝƐŝŶŐŝŶŶŽǀĂƟŽŶƐĂŶĚƚŚĞĐƌĞĂƟŽŶŽĨ WĞƌŶŽĚZŝĐĂƌĚhŶŝǀĞƌƐŝƚLJĨŽƌŽƵƌĞŵƉůŽLJĞĞƐ͘dŚŝƐŚĂƐ ďĞĞŶƉŽƐƐŝďůĞŽŶůLJďLJǀŝƌƚƵĞŽĨǁŚĂƚ/ĐĂůůƚŚĞ͞DŝŶĚƐĞƚ ĨŽƌ'ƌŽǁƚŚ͕͟ƚŚĞĂůůͲĐŽŶƋƵĞƌŝŶŐŵŝŶĚƐĞƚĚĞŵŽŶƐƚƌĂƚĞĚ ďLJĞĂĐŚŽĨŽƵƌϭϴ͕ϵϬϬĞŵƉůŽLJĞĞƐ͘ While the current monetary and geopolitical environment can only be described as uncertain, rest assured that we are primed and ready to go. ĨĞǁĚĂLJƐ ďĞĨŽƌĞƉƵďůŝƐŚŝŶŐƚŚŝƐĂŶŶƵĂůƌĞƉŽƌƚ͕ϯϬϬŽĨŽƵƌŵŽƐƚ ƐĞŶŝŽƌŵĂŶĂŐĞƌƐĨƌŽŵĂƌŽƵŶĚƚŚĞǁŽƌůĚĐĂŵĞƚŽŐĞƚŚĞƌ ĂƚŽƵƌWĞƌŶŽĚZŝĐĂƌĚhŶŝǀĞƌƐŝƚLJƚƌĂŝŶŝŶŐĐĞŶƚƌĞ͘dŚĞ ŵŽƚƚŽĨŽƌŽƵƌŐĂƚŚĞƌŝŶŐƉĞƌĨĞĐƚůLJĞŶĐĂƉƐƵůĂƚĞƐŽƵƌ ĐŽŶƚŝŶƵĞĚ ĚĞƚĞƌŵŝŶĂƚŝŽŶ͗ ͞ĞƚƚĞƌ͕ ĂŐŝůĞ͕ ƚŽŐĞƚŚĞƌ͗ ƚƌĂŶƐĨŽƌŵĂŶĚĂĐĐĞůĞƌĂƚĞ͘͟ The results speak for themselves: accelerated growth, with sales up 6% compared with 3.6% last year. tŚĂƚ͛ƐŵŽƌĞ͕ƚŚŝƐŐƌŽǁƚŚŝƐĚŝǀĞƌƐŝĮĞĚĂŶĚƐƉƌĞĂĚĂĐƌŽƐƐ ĂůůŽƵƌƌĞŐŝŽŶƐ͘KƵƌŵĂƌŐŝŶƐĂƌĞďĞŐŝŶŶŝŶŐƚŽŝŵƉƌŽǀĞ͕ 7 PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 8 2016 2011 2005 ĐƋƵŝƐŝƟŽŶŽĨůůŝĞĚ ŽŵĞĐƋ͕ĚŽƵďůŝŶŐƚŚĞ 'ƌŽƵƉ͛ƐƐŝnjĞƚŽďĞĐŽŵĞƚŚĞ ǁŽƌůĚ͛ƐηϮtŝŶĞΘ^ƉŝƌŝƚƐ ĐŽŵƉĂŶLJ͕ǁŝŚďƌĂŶĚƐ ŝŶĐůƵĚŝŶŐDƵŵŵĂŶĚ WĞƌƌŝĞƌͲ:ŽƵģƚĐŚĂŵƉĂŐŶĞƐ͕ ĂůůĂŶƟŶĞ͛ƐǁŚŝƐŬLJ͕<ĂŚůƷĂ ĂŶĚDĂůŝďƵůŝƋƵĞƵƌƐ͕ ĂŶĚĞĞĨĞĂƚĞƌŐŝŶ͘ DĞŵďĞƌƐŚŝƉŽĨƚŚĞ /ŶƚĞƌŶĂƟŽŶĂůůůŝĂŶĐĞ ĨŽƌZĞƐƉŽŶƐŝďůĞƌŝŶŬŝŶŐ ;/Z͕ĨŽƌŵĞƌůLJ/WͿ͘ hƉŐƌĂĚĞŽĨ'ƌŽƵƉ͛ƐĐƌĞĚŝƚ ƌĂƟŶŐƚŽŝŶǀĞƐƚŵĞŶƚŐƌĂĚĞ͘ >ĂƵŶĐŚŽĨZĞƐƉŽŶƐŝď͛>>ĂLJ͕ ĂŐůŽďĂůĂŶŶƵĂůĞǀĞŶƚ ĚĞǀŽƚĞĚƚŽƐŽĐŝĂů ƌĞƐƉŽŶƐŝďŝůŝƚLJŝŶǀŽůǀŝŶŐƚŚĞ 'ƌŽƵƉ͛ƐĞŶƟƌĞǁŽƌŬĨŽƌĐĞ͘ ƌĞĂƟŽŶŽĨĂZĞƐƉŽŶƐŝďůĞ WƌŽĐƵƌĞŵĞŶƚWŽůŝĐLJ͘ 2014 ^ŝŐŶŝŶŐŽĨƵƌŽƉĞĂŶ ^Z;ϭͿĂŐƌĞĞŵĞŶƚǁŝƚŚ &&d;ϮͿ͕ŝŶĐŽůůĂďŽƌĂƟŽŶ ǁŝƚŚƚŚĞt;ϯͿ͘ ĐƋƵŝƐŝƟŽŶŽĨŵĂũŽƌŝƚLJ ƐƚĂŬĞŝŶǀŝſŶƉƌĞŵŝƵŵ ƚĞƋƵŝůĂ͘ ĐƋƵŝƐŝƟŽŶŽĨŵĂũŽƌŝƚLJ ƐƚĂŬĞŝŶůĂĐŬ&ŽƌĞƐƚ ŝƐƟůůĞƌƐ'ŵď,͕ŽǁŶĞƌ ŽĨƚŚĞƐƵƉĞƌͲƉƌĞŵŝƵŵ ŐŝŶDŽŶŬĞLJϰϳ͘ ^ŝŐŶŝŶŐŽĨƚŚĞhŶŝƚĞĚ EĂƟŽŶΖƐ^ƵƐƚĂŝŶĂďůĞ ĞǀĞůŽƉŵĞŶƚ'ŽĂůƐ͘ ϱϬƚŚĂŶŶŝǀĞƌƐĂƌLJŽĨƚŚĞ /ŶƐƟƚƵƚKĐĠĂŶŽŐƌĂƉŚŝƋƵĞ WĂƵůZŝĐĂƌĚ͘ 2007 ĚŽƉƟŽŶŽĨĂĐŽĚĞ ŽĨĐŽŵŵĞƌĐŝĂů ĐŽŵŵƵŶŝĐĂƟŽŶƐ͘ 2015 ƉƉŽŝŶƚŵĞŶƚŽĨůĞdžĂŶĚƌĞZŝĐĂƌĚ ĂƐŚĂŝƌŵĂŶΘK͘ 2012 ^ŝŐŶŝŶŐŽĨƚŚĞ tŝŶĞΘ^ƉŝƌŝƚƐ WƌŽĚƵĐĞƌƐ͛ ϱĐŽŵŵŝƚŵĞŶƚƐ ƚŽƉƌŽŵŽƚĞ ƌĞƐƉŽŶƐŝďůĞĚƌŝŶŬŝŶŐ͘ 2003 ^ŝŐŶŝŶŐŽĨƚŚĞhŶŝƚĞĚ EĂƟŽŶƐ'ůŽďĂůŽŵƉĂĐƚ͘ 2017 2008 ĐƋƵŝƐŝƟŽŶŽĨsŝŶΘ^Ɖƌŝƚ͕ ŽǁŶĞƌŽĨďƐŽůƵƚsŽĚŬĂ͘ ĐƋƵŝƐŝƟŽŶŽĨŵĂũŽƌŝƚLJ ƐƚĂŬĞŝŶŚŝŐŚͲĞŶĚďŽƵƌďŽŶ ƉƌŽĚƵĐĞƌ^ŵŽŽƚŚŵďůĞƌ͕ ĂŶĚŝŶĞůDĂŐƵĞLJ^ŝŶŐůĞ sŝůůĂŐĞ͕ƚŚĞηϭŵĞnjĐĂů ŝŶƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ͘ 2010 2018 ĚŚĞƐŝŽŶƚŽƚŚĞK tĂƚĞƌDĂŶĚĂƚĞ͘ EŽŵŝŶĂƟŽŶŽĨWĞƌŶŽĚ ZŝĐĂƌĚĂƐŵĞŵďĞƌŽĨ 'ůŽďĂůŽŵƉĂĐƚ>;ϰͿ͘ 9 PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 dŚĞďƐŽůƵƚ ŽŵƉĂŶLJ /ƌŝƐŚŝƐƟůůĞƌƐ WĞƌŶŽĚZŝĐĂƌĚ 'ůŽďĂůdƌĂǀĞůZĞƚĂŝů DĂƌƚĞůů DƵŵŵ WĞƌƌŝĞƌͲ:ŽƵģƚ രWĞƌŶŽĚZŝĐĂƌĚ North America ŚŝǀĂƐƌŽƚŚĞƌƐ WĞƌŶŽĚZŝĐĂƌĚ Headquarters WĞƌŶŽĚZŝĐĂƌĚ DരΘര>dD WĞƌŶŽĚ^ ZŝĐĂƌĚ^ ,ĂǀĂŶĂůƵď /ŶƚĞƌŶĂƟŽŶĂů IDENTIFYING EXPERIENCES OF CONVIVIALITY AROUND THE WORLD WĞƌŶŽĚZŝĐĂƌĚ͛ƐďƌĂŶĚƐĂƌĞĚŝƐƚƌŝďƵƚĞĚƚŚƌŽƵŐŚŽƵƌϴϲĚŝƌĞĐƚĂĸůŝĂƚĞƐ ĂĐƌŽƐƐĮǀĞĐŽŶƟŶĞŶƚƐ͘dŚĞ'ƌŽƵƉ͛ƐŐĞŽŐƌĂƉŚŝĐĂůƐĞŐŵĞŶƚĂƟŽŶŝƐĚŝǀŝĚĞĚ ŝŶƚŽƚŚƌĞĞƌĞŐŝŽŶƐʹWĞƌŶŽĚZŝĐĂƌĚEŽƌƚŚŵĞƌŝĐĂ͕WĞƌŶŽĚZŝĐĂƌĚDΘ>dD͕ WĞƌŶŽĚZŝĐĂƌĚƐŝĂʹĂŶĚWĞƌŶŽĚZŝĐĂƌĚ'ůŽďĂůdƌĂǀĞůZĞƚĂŝů͘KƵƌĚĞĐĞŶƚƌĂůŝƐĞĚ ŽƌŐĂŶŝƐĂƟŽŶĞŵƉŽǁĞƌƐŽƵƌϭϴ͕ϵϬϬĞŵƉůŽLJĞĞƐƚŽďĞƚƌƵĞ͞ĐŽŶǀŝǀŝĂůŝƚLJĂĐƟǀŝƐƚƐ͟ ʹŽŶƚŚĞŐƌŽƵŶĚĂŵďĂƐƐĂĚŽƌƐŽĨŽƵƌǀŝƐŝŽŶĂƐ͞ƌĠĂƚĞƵƌƐĚĞĐŽŶǀŝǀŝĂůŝƚĠ͘͟ PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 10 WĞƌŶŽĚZŝĐĂƌĚƐŝĂ WĞƌŶŽĚZŝĐĂƌĚ tŝŶĞŵĂŬĞƌƐ ZEKDWE/^ ,K&&/^ DZ<dKDWE/^ ,K&&/^ WZKhd/KE^/d^ /EϮϯKhEdZ/^ ƵďůŝŶͲ/ƌĞůĂŶĚ ,ĂǀĂŶĂͲƵďĂ >ŽŶĚŽŶͲhŶŝƚĞĚ<ŝŶŐĚŽŵ WĂƌŝƐͲ&ƌĂŶĐĞ ^ƚŽĐŬŚŽůŵͲ^ǁĞĚĞŶ ^LJĚŶĞLJͲƵƐƚƌĂůŝĂ ,ŽŶŐ<ŽŶŐͲŚŝŶĂ >ŽŶĚŽŶͲhŶŝƚĞĚ<ŝŶŐĚŽŵ EĞǁzŽƌŬͲhŶŝƚĞĚ^ƚĂƚĞƐ WĂƌŝƐ͕DĂƌƐĞŝůůĞ͕ƌĠƚĞŝůͲ &ƌĂŶĐĞ ƌŐĞŶƟŶĂͬƌŵĞŶŝĂͬƵƐƚƌĂůŝĂͬƌĂnjŝůͬ ĂŶĂĚĂͬŚŝŶĂͬƵďĂͬnjĞĐŚZĞƉƵďůŝĐͬ ŶŐůĂŶĚͬ&ŝŶůĂŶĚͬ&ƌĂŶĐĞͬ'ĞƌŵĂŶLJͬ 'ƌĞĞĐĞͬ/ŶĚŝĂͬ/ƌĞůĂŶĚͬ/ƚĂůLJͬDĞdžŝĐŽͬ EĞǁĞĂůĂŶĚͬWŽůĂŶĚͬ^ĐŽƚůĂŶĚͬ^ƉĂŝŶͬ ^ǁĞĚĞŶͬhŶŝƚĞĚ^ƚĂƚĞƐ 11 PERNOD RICARD REGISTRATION DOCUMENT 2017/2018 OUR DNA THE PERNOD RICARD MINDSET A WINNING SPIRIT OF CONQUEST KƵƌϭϴ͕ϵϬϬĞŵƉůŽLJĞĞƐĂƌĞŽƵƌŐƌĞĂƚĞƐƚĂƐƐĞƚ͕ĂŶĚƚŚĞŝƌĞdžĐĞƉƟŽŶĂůĐŽŵŵŝƚŵĞŶƚ ŝƐĂŶĞƐƐĞŶƟĂůůĞǀĞƌĨŽƌŽƵƌƐƵĐĐĞƐƐ͘dŚŝƐĐŽŵŵŝƚŵĞŶƚŝƐĂƌĞƐƵůƚŽĨĂĐŽůůĞĐƟǀĞƐƉŝƌŝƚ ŽĨĐŽŶƋƵĞƐƚʹǁŚĂƚǁĞĐĂůů͞ƚŚĞWĞƌŶŽĚZŝĐĂƌĚDŝŶĚƐĞƚ͘͟^ŚĂƌĞĚĂŶĚĐŽŵŵƵŶŝĐĂƚĞĚ ĂĐƌŽƐƐƚŚĞ'ƌŽƵƉ͕ƚŚŝƐDŝŶĚƐĞƚĨŽƐƚĞƌƐĂĐƵůƚƵƌĞƚŚĂƚƚƌƵůLJĞŶĐŽƵƌĂŐĞƐ ŽƵƌĞŵƉůŽLJĞĞƐƚŽĂůǁĂLJƐŐŽ͞ƚŚĞĞdžƚƌĂŵŝůĞ͘͟ dŚĞWĞƌŶŽĚZŝĐĂƌĚDŝŶĚƐĞƚŝƐĂƉŽǁĞƌĨƵůĨŽƌĐĞƚŚĂƚ ƉĞƌŵĞĂƚĞƐĞǀĞƌLJĂƐƉĞĐƚŽĨŽƵƌĂĐƚŝǀŝƚLJ͕ƚŚĞŵŽƐƚǀŝƐŝďůĞ ĞdžƉƌĞƐƐŝŽŶ ŽĨ Ă ĐƵůƚƵƌĞ ǁŚŽƐĞ ŵŝƐƐŝŽŶ ŝƐ ƚŽ ƉƌŽŵŽƚĞ ĐŽŶǀŝǀŝĂůŝƚLJ ĂƌŽƵŶĚ ƚŚĞ ŐůŽďĞ͘ EƵƌƚƵƌĞĚ ĂŶĚ ƐƉƌĞĂĚ ƚŚƌŽƵŐŚŽƵƚƚŚĞWĞƌŶŽĚZŝĐĂƌĚĐŽŵŵƵŶŝƚLJ͕ŝƚĚƌĂǁƐůĂƌŐĞůLJ ŽŶƚŚĞĐŽŵƉĂŶLJ͛ƐĨŽƵŶĚŝŶŐƉƌŝŶĐŝƉůĞŽĨĚĞĐĞŶƚƌĂůŝƐĂƟŽŶ͘ dŚŝƐƉŽůŝĐLJĞŶƐƵƌĞƐƚŚĂƚǁĞĂƌĞĂďůĞƚŽƌĞƐƉŽŶĚƚŽůŽĐĂů ŵĂƌŬĞƚŶĞĞĚƐĂƐƚŚĞLJƵŶĨŽůĚ͘dŚĞ premise is simple: in respecting ƚŚĞŽƉĞƌĂƟŽŶĂůĂƵƚŽŶŽŵLJŽĨŽƵƌ ĂĸůŝĂƚĞƐ͕ǁĞŶŽƚŽŶůLJĞŶĐŽƵƌĂŐĞ ďƵƚĞŵƉŽǁĞƌŽƵƌĞŵƉůŽLJĞĞƐƚŽ ƚĂŬĞƚŚĞŝŶŝƟĂƟǀĞĨŽƌĮŶĚŝŶŐŶĞǁ ǁĂLJƐƚŽĞŶŐĂŐĞǁŝƚŚŽƵƌŵĂƌŬĞƚƐ͘ tŝƚŚĂƚƌƵĞƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞ local cultural and economic reality, ƚŚĞLJĂƌĞŝŶĂŬĞLJƉŽƐŝƟŽŶƚŽďĞƚŚĞ ĮƌƐƚƚŽƐƉŽƚŶĞǁƚƌĞŶĚƐŽƌƐĞŝnjĞŶĞǁ ŽƉƉŽƌƚƵŶŝƟĞƐ͕ĂůůǁŚŝůĞŝŵƉƌŽǀŝŶŐŽƵƌĐƵƐƚŽŵĞƌƉƌŽdžŝŵŝƚLJ͘ dŚŝƐDŝŶĚƐĞƚŚĂƐďĞĐŽŵĞǀŝƚĂůƚŽƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨŽƵƌ ƐƚƌĂƚĞŐLJĂŶĚƚŚĞĞĸĐŝĞŶƚŽƉĞƌĂƟŽŶŽĨŽƵƌŽƌŐĂŶŝƐĂƟŽŶ͘/ƚŝƐ ƚŚĞďLJͲƉƌŽĚƵĐƚŽĨŽƵƌƚŚƌĞĞĐĂƌĚŝŶĂůǀĂůƵĞƐ͗ĂŶĞŶƚƌĞƉƌĞŶĞƵƌŝĂů ƐƉŝƌŝƚ͕ŵƵƚƵĂůƚƌƵƐƚ͕ĂŶĚĂƐƚƌŽŶŐƐĞŶƐĞŽĨĞƚŚŝĐƐ͘dŽŐĞƚŚĞƌ͕ ƚŚĞƐĞĨŽƌŵƚŚĞĨŽƵŶĚĂƟŽŶŽĨŽƵƌĐƵůƚƵƌĂůŵŽĚĞů͘ dŚĞWĞƌŶŽĚZŝĐĂƌĚDŝŶĚƐĞƚĂůůŽǁƐƵƐƚŽůĞǀĞƌĂŐĞƚŚĞ ƉŽǁĞƌŽĨĂůĂƌŐĞŐƌŽƵƉĂŶĚƚŚĞĂŐŝůŝƚLJŽĨĂƐƚĂƌƚͲƵƉ͘ƐƵĐĐĞƐƐĨƵů ĚĞĐĞŶƚƌĂůŝƐĞĚďƵƐŝŶĞƐƐŵŽĚĞůƌĞƋƵŝƌĞƐƚŚĂƚĂŶĞŶƚƌĞƉƌĞŶĞƵƌŝĂů ƐƉŝƌŝƚďĞŝŶŐƌĂŝŶĞĚƚŚƌŽƵŐŚŽƵƚĂŶŽƌŐĂŶŝƐĂƟŽŶ͘tŚĂƚǁŽƵůĚ ďĞƚŚĞƉŽŝŶƚŽĨŝŶĚĞƉĞŶĚĞŶƚĂĸůŝĂƚĞƐŝĨƚŚĞLJǁĞƌĞŐŝǀĞŶŶŽ ĞŶƚƌĞƉƌĞŶĞƵƌŝĂůĨƌĞĞĚŽŵ͍ >ŝŬĞǁŝƐĞ͕ŝŶŝƟĂƟǀĞƐĐĂŶŽŶůLJƐƵĐĐĞĞĚǁŚĞŶĂŵƵƚƵĂůƚƌƵƐƚ ĞdžŝƐƚƐďĞƚǁĞĞŶĂĸůŝĂƚĞƐĂŶĚĞŵƉůŽLJĞĞƐ͘dŚŝƐƚƌƵƐƚůĂLJƐƚŚĞ ĨŽƵŶĚĂƟŽŶĨŽƌĂŶŽƉĞŶĂŶĚĚŝƌĞĐƚĚŝĂůŽŐƵĞ͕ŽŶĞŝŶǁŚŝĐŚŽƵƌ ĞŵƉůŽLJĞĞ...
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