SOURCE: PERNOD RICARD

February 28, 2008 01:38 ET

PERNOD RICARD : 1st half year 2007/2008 financial results

PARIS--(Marketwire - February 28, 2008) - Historic sales growth and accelerated profitability growth in the 1st half year of the 2007/2008 financial year

- Operating profit from ordinary activities: EUR 966 million (+15.3%(1))

- Net profit Group share: EUR 588 million (+17.7%)

- Upward revision of 2007/2008 full-year profit growth guidance

Press release - Paris, 28 February 2008

The Board of Directors of Pernod Ricard, meeting on 27 February 2008 under the chairmanship of Patrick Ricard, approved the financial statements for the first half year and outlined prospects for the 2007/2008 full year.

In respect of the 2007/2008 first half year (1 July to 31 December 2007), Pernod Ricard recorded historic sales growth and accelerated profitability growth. These performances were achieved thanks to the success of its 15 strategic brands, in particular in emerging markets(2), as well as to the dynamic sales in mature markets. Volume growth, significant price increases and a markedly improved mix resulted in a very substantial rise in operating profit from ordinary activities, in spite of significantly increased advertising and promotion expenditure.

2007/2008 interim sales

Pernod Ricard consolidated net sales (excluding duties and taxes) for the 2007/2008 1st half-year increased by 5.9% to EUR 3,713 million, being 10.1% organic growth (2.5% negative foreign exchange effect, 1.5% negative group structure effect).

The 15 strategic brands were the main drivers of this growth. They grew +7% in volume and +13% in value(1), thereby demonstrating the very positive impact of price increases and mix effects. In particular, premium(3) spirits grew +17%(1).

All geographic regions contributed to consolidated sales growth, with an accelerated contribution from emerging countries (+25%(1)). China, India and Russia were, in that order, the leading three contributors to the sales growth.

Improved contribution margin from portfolio

Gross margin after logistics costs increased by +12.8%(1) to EUR 2,126 million, due to sales growth and a very significant improvement in gross margin ratio, which rose from 56% to 58% on sales, on a constant foreign exchange basis. This resulted from the larger relative size of premium and Top 15 brands and from the implementation of the value strategy throughout the whole portfolio.

This performance enabled the Group to accelerate advertising and promotion expenditure growth by +14.8%(1) to EUR 623 million, which was primarily focused on premium brands and emerging countries. The Top 15 benefited notably from 80% of such expenditure growth in the 2007/2008 first half year.

Overall, the contribution after advertising and promotion expenditure grew +12%(1) to EUR 1,503 million, and represented 40.5% of sales, an increase of 110 bp on a constant foreign exchange basis compared to the previous financial year.

Decrease in Structure costs / Sales ratio

Structure costs increased by 6.5%(1) to EUR 538 million. This growth was focused on emerging countries, in particular China, Russia and India. Strong sales growth enabled a further reduction in the structure costs / sales ratio to 14.5%, a decrease of 30 bp on a constant foreign exchange basis compared to the previous financial year, in line with Group targets.

Operating profit from ordinary activities

Operating profit from ordinary activities increased by 15.3%(1) to EUR 966 million, along with a 26% operating profit margin, an improvement of 140 bp compared to the previous financial year, on a constant foreign exchange basis.

All geographic regions reported double-digit organic growth in operating profit from ordinary activities:

Particularly dynamic growth in Asia/Rest of World and Europe. The spectacular development of these two regions was notably due to the significant growth of premium brands in emerging markets.

In France, growth was accelerated by well-controlled structure costs and advertising and promotion expenditure.

The foreign exchange and group structure effects primarily concerned the Americas region, whose relative size in the Group's sales and profits decreased, in spite of organic growth similar to other regions.

Negative currency fluctuations (primarily USD and currencies tied to the USD) reduced the growth of operating profit from ordinary activities by EUR 49 million in the first half year.

Net profit from ordinary activities

Financial expense from ordinary activities totalled EUR 176 million, comprising EUR 168 million of debt finance charges (average borrowing cost of about 5.0%, stable compared to the previous financial year), the structuring costs for the funding arrangements for EUR 6 million, as well as EUR 2 million in other expenses.

The tax charge on ordinary activities was EUR 183 million, representing an average rate of 23.1%, slightly down from the previous financial year (23.9%). Finally, the share of minority interests in net profit from ordinary activities was stable at EUR 13 million.

Overall, net profit from ordinary activities Group share totalled EUR 594 million, being a 18.6% increase on a constant foreign exchange basis compared to the first half of 2006/2007, and diluted earnings per share from ordinary activities was EUR 2.76, being an increase of 18.1% on a constant foreign exchange basis.

Net profit

Other operating income/(expense) was a EUR 5 million income while non-current financial items mainly related to exchange losses comprised a charge of EUR 9 million . The tax charge in respect of the non-current result amounted to EUR 2 million.

As a result, net profit (Group share) totalled EUR 588 million, a 17.7% increase compared to the 2006/2007 financial year.

Debt

Net debt at 31 December 2007 amounted to EUR 6.6 billion, stable compared to 30 June 2007 (EUR 6.5 billion). In the first half year, the debt was, as expected, impacted by the cognac restocking programme, the rise in trade receivables due to higher sales at the end of the year in 2007 and the payment of cash dividends.

This resulted in an improved Net Debt (excluding treasury shares)/EBITDA ratio of 3.8 compared to 3.9 at 30 June 2007.

Conclusion and outlook

Patrick Ricard, Chairman and CEO of the Group stated: "The first half of our 2007/2008 year was exceptional both in terms of the strength of sales and the growth in margins. The increase in profit was such that we decided to accelerate the growth in advertising and marketing expenditure, thus strengthening our growth prospects. This enables us to revise upwards, once again, our 2007/2008 full year guidance and to aim at a growth in operating profit from ordinary activities of at least 12%(4) on a like-for-like basis (foreign exchange and group structure)."

(1) Organic growth

(2) GNP/capita < USD 10,000

(3) Spirits with a price positioning higher or equal to that of Chivas Regal 12 year old or Martell VS, champagne and wines &gt; USD 10 per bottle

(4) Versus about 12%

About Pernod Ricard

Created by the merger between Pernod and Ricard (1975), the Group has undergone sustained development, founded on both organic growth and acquisitions. The purchase of part of Seagram (2001) and the acquisition of Allied Domecq (2005) have made Pernod Ricard the world's n degrees2 in wine and spirits with sales of EUR 6.4 billion in 2006/07.

Pernod Ricard avails of one of the most prestigious brand portfolio in the sector: Ricard aniseed, Ballantine's, Chivas Regal and The Glenlivet whiskies, Jameson's Irish Whiskey, Martell cognac, Havana Club rum, Stolichnaya vodka (distribution rights), Beefeater gin, Kahlúa and Malibu liqueurs, Mumm and Perrier-Jouët champagne, as well as Jacob's Creek and Montana wines.

Pernod Ricard is one of the world's leading companies in wine and Premium spirits, the market segments that are seeing the strongest growth prospects. The Group is number one in the Ultra Premium spirits market.

The Group favours a decentralised organisation, with "Brand Owners" and "Distribution" Companies established in each key market, and employs a workforce of around 18,000 in 70 countries.

In addition, Pernod Ricard is strongly committed to a sustainable development policy and thus encourages responsible consumption in order to prevent alcohol abuse.

For more information: www.pernod-ricard.com

Download the slides on www.pernod-ricard.com and photos on the "Photolibrary" page of the website's "News" section

Shareholder's agenda: 2007/08 3rd Quarter Sales -Wednesday 30 April 2008

Contacts Pernod Ricard

Francisco de la VEGA / Communication VP T: +33 (0)1 41 00 40 96

Denis FIEVET / Financial Communication - Investor Relations VP T: +33 (0)1 41 00 41 71

Florence TARON / Press Relations Manager T: +33 (0)1 41 00 40 88

For more information, please visit the Pernod Ricard website: www.pernod-ricard.com

Consolidated interim income statement

+-------------------------+------------+------------+
|(EUR  millions)          |  31/12/2006|  31/12/2007|
+-------------------------+------------+------------+
|Net sales................|       3,507|       3,713|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|....                     |            |            |
+-------------------------+------------+------------+
|Cost of sales............|     (1,419)|     (1,464)|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|..                       |            |            |
+-------------------------+------------+------------+
|Gross Margin.............|       2,088|       2,249|
|.........................|            |            |
|.........................|            |            |
|........................ |            |            |
+-------------------------+------------+------------+
|Distribution costs.......|       (125)|       (123)|
|.........................|            |            |
|.........................|            |            |
|.......................  |            |            |
+-------------------------+------------+------------+
|Gross margin after distri|       1,963|       2,126|
|bution costs.............|            |            |
|.........................|            |            |
|.............            |            |            |
+-------------------------+------------+------------+
|A&P expenditure..........|       (561)|       (623)|
|.........................|            |            |
|.........................|            |            |
|.....................    |            |            |
+-------------------------+------------+------------+
|Contribution after A&P ex|       1,402|       1,503|
|penditure................|            |            |
|.........................|            |            |
|..........               |            |            |
+-------------------------+------------+------------+
|Selling, general and admi|       (516)|       (537)|
|nistrative expenses......|            |            |
|.........................|            |            |
|.........                |            |            |
+-------------------------+------------+------------+
|Operating profit from ord|         886|         966|
|inary activities ........|            |            |
|.........................|            |            |
|..........               |            |            |
+-------------------------+------------+------------+
|Other operating income an|        (21)|           5|
|d expenses ..............|            |            |
|.........................|            |            |
|..........               |            |            |
+-------------------------+------------+------------+
|Operating profit.........|         865|         970|
|.........................|            |            |
|.........................|            |            |
|........................ |            |            |
+-------------------------+------------+------------+
|Net financing cost.......|       (165)|       (168)|
|.........................|            |            |
|.........................|            |            |
|.......................  |            |            |
+-------------------------+------------+------------+
|Other financial income an|         (4)|        (18)|
|d expenses...............|            |            |
|.........................|            |            |
|...........              |            |            |
+-------------------------+------------+------------+
|Financial income and expe|       (169)|       (185)|
|nses.....................|            |            |
|.........................|            |            |
|...............          |            |            |
+-------------------------+------------+------------+
|Income tax...............|       (183)|       (184)|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|..                       |            |            |
+-------------------------+------------+------------+
|Share of net profit / (lo|           0|           0|
|ss) of associates........|            |            |
|.........................|            |            |
|..............           |            |            |
+-------------------------+------------+------------+
|Net profit from continuin|         514|         601|
|g operations.............|            |            |
|.........................|            |            |
|...........              |            |            |
+-------------------------+------------+------------+
|Net profit from discontin|           0|           0|
|ued operations...........|            |            |
|.........................|            |            |
|.........                |            |            |
+-------------------------+------------+------------+
|Net profit...............|         514|         601|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|...                      |            |            |
+-------------------------+------------+------------+
|Including:               |            |            |
+-------------------------+------------+------------+
|Attributable to minority |          14|          13|
|interests................|            |            |
|.........................|            |            |
|............             |            |            |
+-------------------------+------------+------------+
|Attributable to equity ho|         500|         588|
|lders of the Parent......|            |            |
|.........................|            |            |
|......                   |            |            |
+-------------------------+------------+------------+
Consolidated interim balance sheet
+-------------------------+------------+------------+--+
|Assets                   |  30/06/2007|  31/12/2007|  |
+-------------------------+------------+------------+--+
|(EUR  millions)          |            |            |  |
+-------------------------+------------+------------+--+
|Net amounts              |            |            |  |
+-------------------------+------------+------------+--+
|Non-current assets       |            |            |  |
+-------------------------+------------+------------+--+
|Intangible assets........|       7,836|       7,477|  |
|.........................|            |            |  |
|.....................    |            |            |  |
+-------------------------+------------+------------+--+
|Goodwill.................|       3,477|       3,367|  |
|.........................|            |            |  |
|........................ |            |            |  |
+-------------------------+------------+------------+--+
|Property, plant and equip|       1,675|       1,598|  |
|ment.....................|            |            |  |
|..........               |            |            |  |
+-------------------------+------------+------------+--+
|Biological assets........|          60|          54|  |
|.........................|            |            |  |
|.....................    |            |            |  |
+-------------------------+------------+------------+--+
|Non current financial ass|         121|         106|  |
|ets......................|            |            |  |
|..............           |            |            |  |
+-------------------------+------------+------------+--+
|Investments in associates|           2|           2|  |
|........................ |            |            |  |
|...............          |            |            |  |
+-------------------------+------------+------------+--+
|Deferred tax assets......|         839|         701|  |
|.........................|            |            |  |
|...................      |            |            |  |
+-------------------------+------------+------------+--+
|Total non current assets.|      14,010|      13,304|  |
|.........................|            |            |  |
|............             |            |            |  |
+-------------------------+------------+------------+--+
|Current assets           |            |            |  |
+-------------------------+------------+------------+--+
|Inventories..............|       3,563|       3,482|  |
|.........................|            |            |  |
|........................ |            |            |  |
+-------------------------+------------+------------+--+
|Operating receivables....|       1,228|       1,827|  |
|.........................|            |            |  |
|.................        |            |            |  |
+-------------------------+------------+------------+--+
|Income tax receivable ...|          91|          80|  |
|.........................|            |            |  |
|..................       |            |            |  |
+-------------------------+------------+------------+--+
|Other current assets.....|         145|         126|  |
|.........................|            |            |  |
|..................       |            |            |  |
+-------------------------+------------+------------+--+
|Current derivative instru|          51|          35|  |
|ments....................|            |            |  |
|............             |            |            |  |
+-------------------------+------------+------------+--+
|Cash and cash equivalents|         383|         435|  |
|.........................|            |            |  |
|..............           |            |            |  |
+-------------------------+------------+------------+--+
|Total current assets.....|       5,462|       5,986|  |
|.........................|            |            |  |
|...............          |            |            |  |
+-------------------------+------------+------------+--+
|Total assets.............|      19,472|      19,291|  |
|.........................|            |            |  |
|...................      |            |            |  |
+-------------------------+------------+------------+--+
+-------------------------+------------+------------+
|Liabilities and          |  30/06/2007|  31/12/2007|
|shareholders' equity     |            |            |
|(EUR millions)           |            |            |
+-------------------------+------------+------------+
|Shareholders' equity     |            |            |
+-------------------------+------------+------------+
|Share capital............|         340|         340|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|..                       |            |            |
+-------------------------+------------+------------+
|Additional paid-in capita|       2,053|       2,059|
|l........................|            |            |
|.........................|            |            |
|....................     |            |            |
+-------------------------+------------+------------+
|Retained earnings and cur|       3,067|       3,393|
|rency translation adjustm|            |            |
|ents.....................|            |            |
|.                        |            |            |
+-------------------------+------------+------------+
|Net profit attributable t|         831|         588|
|o equity holders of the p|            |            |
|arent....................|            |            |
|....                     |            |            |
+-------------------------+------------+------------+
|Shareholders' equity -   |       6,290|       6,381|
|attributable to equity   |            |            |
|holders of the           |            |            |
|parent.....              |            |            |
+-------------------------+------------+------------+
|Minority interests.......|         168|         169|
|.........................|            |            |
|.........................|            |            |
|.......................  |            |            |
+-------------------------+------------+------------+
|Total shareholders' equit|       6,458|       6,550|
|y........................|            |            |
|.........................|            |            |
|..............           |            |            |
+-------------------------+------------+------------+
|Non-current liabilities  |            |            |
+-------------------------+------------+------------+
|Non-current provisions...|         534|         477|
|.........................|            |            |
|.........................|            |            |
|...................      |            |            |
+-------------------------+------------+------------+
|Provisions for pensions  |         773|         622|
|and other long-term      |            |            |
|employee                 |            |            |
|benefits.........        |            |            |
+-------------------------+------------+------------+
|Deferred tax liabilities.|       2,326|       2,197|
|.........................|            |            |
|.........................|            |            |
|........................ |            |            |
+-------------------------+------------+------------+
|Bonds....................|       2,511|       2,479|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|....                     |            |            |
+-------------------------+------------+------------+
|Non-current derivative in|          73|         100|
|struments................|            |            |
|.........................|            |            |
|............             |            |            |
+-------------------------+------------+------------+
|Other non-current financi|       3,938|       3,259|
|al liabilities...........|            |            |
|.........................|            |            |
|...............          |            |            |
+-------------------------+------------+------------+
|Total non-current liabili|      10,155|       9,134|
|ties.....................|            |            |
|.........................|            |            |
|................         |            |            |
+-------------------------+------------+------------+
|Current liabilities      |            |            |
+-------------------------+------------+------------+
|Current provisions.......|         355|         320|
|.........................|            |            |
|.........................|            |            |
|......................   |            |            |
+-------------------------+------------+------------+
|Operating payables.......|       1,773|       1,919|
|.........................|            |            |
|.........................|            |            |
|.....................    |            |            |
+-------------------------+------------+------------+
|Income tax payable.......|         198|          80|
|.........................|            |            |
|.........................|            |            |
|......................   |            |            |
+-------------------------+------------+------------+
|Other current liabilities|         141|          31|
|.........................|            |            |
|.........................|            |            |
|.......................  |            |            |
+-------------------------+------------+------------+
|Other current financial l|         375|       1,229|
|iabilities...............|            |            |
|.........................|            |            |
|..................       |            |            |
+-------------------------+------------+------------+
|Current derivative instru|          16|          28|
|ments....................|            |            |
|.........................|            |            |
|................         |            |            |
+-------------------------+------------+------------+
|Total current liabilities|       2,859|       3,607|
|.........................|            |            |
|.........................|            |            |
|...................      |            |            |
+-------------------------+------------+------------+
|Total liabilities and sha|      19,472|      19,291|
|reholders' equity........|            |            |
|.........................|            |            |
|........                 |            |            |
+-------------------------+------------+------------+
Condensed interim cash flow statement
+-------------------------+------------+------------+
|(EUR  millions)          |  31/12/2006|  31/12/2007|
+-------------------------+------------+------------+
|                         |    6 months|    6 months|
+-------------------------+------------+------------+
|Operating profit.........|         865|         970|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|..                       |            |            |
+-------------------------+------------+------------+
|Depreciation and amortiza|          70|          79|
|tion.....................|            |            |
|.........................|            |            |
|.........................|            |            |
|..................       |            |            |
+-------------------------+------------+------------+
|Net changes in provisions|        (41)|        (65)|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|.....................    |            |            |
+-------------------------+------------+------------+
|Net changes in impairment|           0|          11|
|of goodwill and intangib |            |            |
|le assets................|            |            |
|.........................|            |            |
|.                        |            |            |
+-------------------------+------------+------------+
|Impact of derivatives hed|         (1)|           2|
|ging trading transactions|            |            |
|.........................|            |            |
|.........................|            |            |
|........                 |            |            |
+-------------------------+------------+------------+
|Fair value adjustments on|           1|           2|
|biological assets....... |            |            |
|.........................|            |            |
|.........................|            |            |
|.............            |            |            |
+-------------------------+------------+------------+
|Net (gain) / loss on disp|        (11)|        (12)|
|osal assets..............|            |            |
|.........................|            |            |
|.........................|            |            |
|..................       |            |            |
+-------------------------+------------+------------+
|Stock options impact.....|          14|          19|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|.......................  |            |            |
+-------------------------+------------+------------+
|Net cash provided by     |         897|       1,006|
|operating activities     |            |            |
|before changes in working|            |            |
|capital........          |            |            |
+-------------------------+------------+------------+
|Decrease/(increase) in wo|       (284)|       (550)|
|rking capital............|            |            |
|.........................|            |            |
|.........................|            |            |
|............... .........|            |            |
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|........................ |            |            |
+-------------------------+------------+------------+
|Net cash from operating a|         612|         456|
|ctivities................|            |            |
|.........................|            |            |
|.........................|            |            |
|.............            |            |            |
+-------------------------+------------+------------+
|Financial Expenses (Paid)|       (147)|       (195)|
|/ Received.............. |            |            |
|.........................|            |            |
|.........................|            |            |
|..........               |            |            |
+-------------------------+------------+------------+
|Tax Expenses (Paid) / Rec|       (132)|        (86)|
|eived....................|            |            |
|.........................|            |            |
|.........................|            |            |
|..............           |            |            |
+-------------------------+------------+------------+
|(Acquisition) and proceed|        (36)|        (56)|
|s from sales of fixed ass|            |            |
|ets......................|            |            |
|.........................|            |            |
|......                   |            |            |
+-------------------------+------------+------------+
|Changes in receivables an|         (9)|        (11)|
|d payables related to non|            |            |
|-current assets..........|            |            |
|.......................  |            |            |
+-------------------------+------------+------------+
|Free Cash Flow...........|         289|         109|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|........................ |            |            |
+-------------------------+------------+------------+
|Proceeds/(cash expenditur|        (86)|        (90)|
|es) from disposals/acquis|            |            |
|itions of non-current fin|            |            |
|ancial assets............|            |            |
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|............             |            |            |
+-------------------------+------------+------------+
|Changes in consolidation |       (552)|        (79)|
|scope....................|            |            |
|.........................|            |            |
|.........................|            |            |
|.................        |            |            |
+-------------------------+------------+------------+
|Dividends paid...........|       (228)|       (273)|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|..                       |            |            |
+-------------------------+------------+------------+
|Other changes in sharehol|          14|           7|
|ders' equity.............|            |            |
|.........................|            |            |
|.........................|            |            |
|..............           |            |            |
+-------------------------+------------+------------+
|(Acquisition)/disposal of|           6|         (7)|
|treasury shares......... |            |            |
|.........................|            |            |
|.........................|            |            |
|.............            |            |            |
+-------------------------+------------+------------+
|Increase / (decrease) in |       (557)|       (333)|
|net debt (before effect  |            |            |
|of exchange rate changes)|            |            |
|...........              |            |            |
+-------------------------+------------+------------+
|Net effect of exchange ra|         106|         217|
|te changes...............|            |            |
|.........................|            |            |
|.........................|            |            |
|.................        |            |            |
+-------------------------+------------+------------+
|Increase / (decrease) in |       (452)|       (117)|
|net debt (after effect of|            |            |
|exchange rate changes)   |            |            |
|..............           |            |            |
+-------------------------+------------+------------+
|Net debt at beginning of |     (6,351)|     (6,515)|
|period...................|            |            |
|.........................|            |            |
|.........................|            |            |
|...................      |            |            |
+-------------------------+------------+------------+
|Net debt at end of period|     (6,803)|     (6,631)|
|.........................|            |            |
|.........................|            |            |
|.........................|            |            |
|......................   |            |            |
+-------------------------+------------+------------+
Segment reporting

Total:

+-------------------------+--------------------+-------------+
|(EUR  millions)          | 31/12/2006 6 months|             |
|                         |                    |             |
+-------------------------+--------------------+-------------+
|                         |                    |  % Net sales|
+-------------------------+--------------------+-------------+
|Net sales (Excl.         |               3,507|       100.0%|
|T&D).....................|                    |             |
+-------------------------+--------------------+-------------+
|Gross margin after distri|               1,963|        56.0%|
|bution costs.............|                    |             |
|.........................|                    |             |
|.........                |                    |             |
+-------------------------+--------------------+-------------+
|Advertising & promotion..|               (561)|        16.0%|
|.................        |                    |             |
+-------------------------+--------------------+-------------+
|Contribution after       |               1,402|        40.0%|
|A&P..................    |                    |             |
+-------------------------+--------------------+-------------+
|Profit from ordinary     |                 886|        25.3%|
|activities.......        |                    |             |
+-------------------------+--------------------+-------------+

+-------------------------+--------------------+-------------+
|(EUR  millions)          | 31/12/2007 6 months|             |
|                         |                    |             |
+-------------------------+--------------------+-------------+
|                         |                    |  % Net sales|
+-------------------------+--------------------+-------------+
|Net sales (Excl.         |               3,713|       100.0%|
|T&D).....................|                    |             |
+-------------------------+--------------------+-------------+
|Gross margin after distri|               2,126|        57.3%|
|bution costs.............|                    |             |
|.........................|                    |             |
|.........                |                    |             |
+-------------------------+--------------------+-------------+
|Advertising & promotion..|               (623)|        16.8%|
|.................        |                    |             |
+-------------------------+--------------------+-------------+
|Contribution after       |               1,503|        40.5%|
|A&P..................    |                    |             |
+-------------------------+--------------------+-------------+
|Profit from ordinary     |                 966|        26.0%|
|activities.......        |                    |             |
+-------------------------+--------------------+-------------+

+-------------------------+--------------------+-----------+------+
|(EUR  millions)          |Change in Group     |  Variation|      |
|                         |structure           |           |      |
+-------------------------+--------------------+-----------+------+
|                         |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Net sales (Excl.         |                 206|         6%|   348|
|T&D).....................|                    |           |      |
+-------------------------+--------------------+-----------+------+
|Gross margin after distri|                 163|         8%|   251|
|bution costs.............|                    |           |      |
|.........................|                    |           |      |
|.........                |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Advertising & promotion..|                (62)|        11%|  (83)|
|.................        |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Contribution after       |                 101|         7%|   168|
|A&P..................    |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Profit from ordinary     |                  80|         9%|   135|
|activities.......        |                    |           |      |
+-------------------------+--------------------+-----------+------+

+-------------------------+----------------+--------------+------+-+-++
|(EUR  millions)          |  Organic growth|  Forex impact|      | | ||
|                         |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|                         |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Net sales (Excl.         |             10%|          (54)|  (88)| | ||
|T&D).....................|                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Gross margin after distri|             13%|           (7)|  (80)| | ||
|bution costs.............|                |              |      | | ||
|.........................|                |              |      | | ||
|.........                |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Advertising & promotion..|             15%|             0|    20| | ||
|.................        |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Contribution after       |             12%|           (7)|  (60)| | ||
|A&P..................    |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Profit from ordinary     |             15%|           (6)|  (49)| | ||
|activities.......        |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
Asia / Rest of the world:
+-------------------------+--------------------+-------------+
|(EUR  millions)          | 31/12/2006 6 months|             |
|                         |                    |             |
+-------------------------+--------------------+-------------+
|                         |                    |  % Net sales|
+-------------------------+--------------------+-------------+
|Net sales (Excl.         |                 980|       100.0%|
|T&D).....................|                    |             |
+-------------------------+--------------------+-------------+
|Gross margin after distri|                 473|        48.2%|
|bution costs.............|                    |             |
|.........................|                    |             |
|.........                |                    |             |
+-------------------------+--------------------+-------------+
|Advertising & promotion..|               (177)|        18.1%|
|.................        |                    |             |
+-------------------------+--------------------+-------------+
|Contribution after       |                 295|        30.1%|
|A&P..................    |                    |             |
+-------------------------+--------------------+-------------+
|Profit from ordinary     |                 194|        19.8%|
|activities.......        |                    |             |
+-------------------------+--------------------+-------------+

+-------------------------+--------------------+-------------+
|(EUR  millions)          | 31/12/2007 6 months|             |
|                         |                    |             |
+-------------------------+--------------------+-------------+
|                         |                    |  % Net sales|
+-------------------------+--------------------+-------------+
|Net sales (Excl.         |               1,085|       100.0%|
|T&D).....................|                    |             |
+-------------------------+--------------------+-------------+
|Gross margin after distri|                 557|        51.4%|
|bution costs.............|                    |             |
|.........................|                    |             |
|.........                |                    |             |
+-------------------------+--------------------+-------------+
|Advertising & promotion..|               (205)|        18.9%|
|.................        |                    |             |
+-------------------------+--------------------+-------------+
|Contribution after       |                 352|        32.5%|
|A&P..................    |                    |             |
+-------------------------+--------------------+-------------+
|Profit from ordinary     |                 233|        21.5%|
|activities.......        |                    |             |
+-------------------------+--------------------+-------------+

+-------------------------+--------------------+-----------+------+
|(EUR  millions)          |Change in Group     |  Variation|      |
|                         |structure           |           |      |
+-------------------------+--------------------+-----------+------+
|                         |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Net sales (Excl.         |                 105|        11%|   123|
|T&D).....................|                    |           |      |
+-------------------------+--------------------+-----------+------+
|Gross margin after distri|                  84|        18%|   103|
|bution costs.............|                    |           |      |
|.........................|                    |           |      |
|.........                |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Advertising & promotion..|                (28)|        16%|  (35)|
|.................        |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Contribution after       |                  57|        19%|    68|
|A&P..................    |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Profit from ordinary     |                  39|        20%|    48|
|activities.......        |                    |           |      |
+-------------------------+--------------------+-----------+------+

+-------------------------+----------------+--------------+------+-+-++
|(EUR  millions)          |  Organic growth|  Forex impact|      | | ||
|                         |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|                         |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Net sales (Excl.         |             13%|             0|  (19)| | ||
|T&D).....................|                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Gross margin after distri|             22%|             0|  (18)| | ||
|bution costs.............|                |              |      | | ||
|.........................|                |              |      | | ||
|.........                |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Advertising & promotion..|             20%|             0|     7| | ||
|.................        |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Contribution after       |             23%|             0|  (11)| | ||
|A&P..................    |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Profit from ordinary     |             25%|             0|   (9)| | ||
|activities.......        |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
Americas:
+-------------------------+--------------------+-------------+
|(EUR  millions)          | 31/12/2006 6 months|             |
|                         |                    |             |
+-------------------------+--------------------+-------------+
|                         |                    |  % Net sales|
+-------------------------+--------------------+-------------+
|Net sales (Excl.         |                 984|       100.0%|
|T&D).....................|                    |             |
+-------------------------+--------------------+-------------+
|Gross margin after distri|                 563|        57.2%|
|bution costs.............|                    |             |
|.........................|                    |             |
|.........                |                    |             |
+-------------------------+--------------------+-------------+
|Advertising & promotion..|               (150)|        15.2%|
|.................        |                    |             |
+-------------------------+--------------------+-------------+
|Contribution after       |                 413|        41.9%|
|A&P..................    |                    |             |
+-------------------------+--------------------+-------------+
|Profit from ordinary     |                 277|        28.2%|
|activities.......        |                    |             |
+-------------------------+--------------------+-------------+

+-------------------------+--------------------+-------------+
|(EUR  millions)          | 31/12/2007 6 months|             |
|                         |                    |             |
+-------------------------+--------------------+-------------+
|                         |                    |  % Net sales|
+-------------------------+--------------------+-------------+
|Net sales (Excl.         |                 970|       100.0%|
|T&D).....................|                    |             |
+-------------------------+--------------------+-------------+
|Gross margin after distri|                 552|        56.9%|
|bution costs.............|                    |             |
|.........................|                    |             |
|.........                |                    |             |
+-------------------------+--------------------+-------------+
|Advertising & promotion..|               (159)|        16.4%|
|.................        |                    |             |
+-------------------------+--------------------+-------------+
|Contribution after       |                 393|        40.5%|
|A&P..................    |                    |             |
+-------------------------+--------------------+-------------+
|Profit from ordinary     |                 265|        27.3%|
|activities.......        |                    |             |
+-------------------------+--------------------+-------------+

+-------------------------+--------------------+-----------+------+
|(EUR  millions)          |Change in Group     |  Variation|      |
|                         |structure           |           |      |
+-------------------------+--------------------+-----------+------+
|                         |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Net sales (Excl.         |                (14)|        -1%|    91|
|T&D).....................|                    |           |      |
+-------------------------+--------------------+-----------+------+
|Gross margin after distri|                (11)|        -2%|    51|
|bution costs.............|                    |           |      |
|.........................|                    |           |      |
|.........                |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Advertising & promotion..|                 (9)|         6%|  (22)|
|.................        |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Contribution after       |                (20)|        -5%|    29|
|A&P..................    |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Profit from ordinary     |                (13)|        -5%|    27|
|activities.......        |                    |           |      |
+-------------------------+--------------------+-----------+------+

+-------------------------+----------------+--------------+------+-+-++
|(EUR  millions)          |  Organic growth|  Forex impact|      | | ||
|                         |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|                         |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Net sales (Excl.         |             10%|          (45)|  (61)| | ||
|T&D).....................|                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Gross margin after distri|              9%|           (7)|  (55)| | ||
|bution costs.............|                |              |      | | ||
|.........................|                |              |      | | ||
|.........                |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Advertising & promotion..|             14%|             0|    12| | ||
|.................        |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Contribution after       |              7%|           (6)|  (43)| | ||
|A&P..................    |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
|Profit from ordinary     |             10%|           (6)|  (35)| | ||
|activities.......        |                |              |      | | ||
+-------------------------+----------------+--------------+------+-+-++
Europe (Excl. France):
+-------------------------+--------------------+-------------+
|(EUR  millions)          | 31/12/2006 6 months|             |
|                         |                    |             |
+-------------------------+--------------------+-------------+
|                         |                    |  % Net sales|
+-------------------------+--------------------+-------------+
|Net sales (Excl.         |               1,175|       100.0%|
|T&D).....................|                    |             |
+-------------------------+--------------------+-------------+
|Gross margin after distri|                 674|        57.4%|
|bution costs.............|                    |             |
|.........................|                    |             |
|.........                |                    |             |
+-------------------------+--------------------+-------------+
|Advertising & promotion..|               (151)|        12.8%|
|.................        |                    |             |
+-------------------------+--------------------+-------------+
|Contribution after       |                 524|        44.6%|
|A&P..................    |                    |             |
+-------------------------+--------------------+-------------+
|Profit from ordinary     |                 330|        28.1%|
|activities.......        |                    |             |
+-------------------------+--------------------+-------------+

+-------------------------+--------------------+-------------+
|(EUR  millions)          | 31/12/2007 6 months|             |
|                         |                    |             |
+-------------------------+--------------------+-------------+
|                         |                    |  % Net sales|
+-------------------------+--------------------+-------------+
|Net sales (Excl.         |               1,262|       100.0%|
|T&D).....................|                    |             |
+-------------------------+--------------------+-------------+
|Gross margin after distri|                 747|        59.2%|
|bution costs.............|                    |             |
|.........................|                    |             |
|.........                |                    |             |
+-------------------------+--------------------+-------------+
|Advertising & promotion..|               (172)|        13.7%|
|.................        |                    |             |
+-------------------------+--------------------+-------------+
|Contribution after       |                 575|        45.6%|
|A&P..................    |                    |             |
+-------------------------+--------------------+-------------+
|Profit from ordinary     |                 372|        29.5%|
|activities.......        |                    |             |
+-------------------------+--------------------+-------------+

+-------------------------+--------------------+-----------+------+
|(EUR  millions)          |Change in Group     |  Variation|      |
|                         |structure           |           |      |
+-------------------------+--------------------+-----------+------+
|                         |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Net sales (Excl.         |                  87|         7%|   105|
|T&D).....................|                    |           |      |
+-------------------------+--------------------+-----------+------+
|Gross margin after distri|                  73|        11%|    80|
|bution costs.............|                    |           |      |
|.........................|                    |           |      |
|.........                |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Advertising & promotion..|                (22)|        14%|  (23)|
|.................        |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Contribution after       |                  51|        10%|    57|
|A&P..................    |                    |           |      |
+-------------------------+--------------------+-----------+------+
|Profit from ordinary     |                  43|        13%|    48|
|activities.......        |                    |           |      |
+-------------------------+--------------------+-----------+------+

+-------------------------+----------------+--------------+-----+-+-++
|(EUR  millions)          |  Organic growth|  Forex impact|     | | ||
|                         |                |              |     | | ||
+-------------------------+----------------+--------------+-----+-+-++
|                         |                |              |     | | ||
+-------------------------+----------------+--------------+-----+-+-++
|Net sales (Excl.         |              9%|           (9)|  (9)| | ||
|T&D).....................|                |              |     | | ||
+-------------------------+----------------+--------------+-----+-+-++
|Gross margin after distri|             12%|           (1)|  (7)| | ||
|bution costs.............|                |              |     | | ||
|.........................|                |              |     | | ||
|.........                |                |              |     | | ||
+-------------------------+----------------+--------------+-----+-+-++
|Advertising & promotion..|             15%|             0|    1| | ||
|.................        |                |              |     | | ||
+-------------------------+----------------+--------------+-----+-+-++
|Contribution after       |             11%|           (1)|  (6)| | ||
|A&P..................    |                |              |     | | ||
+-------------------------+----------------+--------------+-----+-+-++
|Profit from ordinary     |             15%|           (1)|  (5)| | ||
|activities.......        |                |              |     | | ||
+-------------------------+----------------+--------------+-----+-+-++
France:
+-------------------------+--------------------+-------------+
|(EUR  millions)          | 31/12/2006 6 months|             |
|                         |                    |             |
+-------------------------+--------------------+-------------+
|                         |                    |  % Net sales|
+-------------------------+--------------------+-------------+
|Net sales (Excl.         |                 368|       100.0%|
|T&D).....................|                    |             |
+-------------------------+--------------------+-------------+
|Gross margin after distri|                 253|        68.8%|
|bution costs.............|                    |             |
|.........................|                    |             |
|.........                |                    |             |
+-------------------------+--------------------+-------------+
|Advertising & promotion..|                (83)|        22.5%|
|.................        |                    |             |
+-------------------------+--------------------+-------------+
|Contribution after       |                 170|        46.3%|
|A&P..................    |                    |             |
+-------------------------+--------------------+-------------+
|Profit from ordinary     |                  86|        23.2%|
|activities.......        |                    |             |
+-------------------------+--------------------+-------------+

+-------------------------+--------------------+-------------+
|(EUR  millions)          | 31/12/2007 6 months|             |
|                         |                    |             |
+-------------------------+--------------------+-------------+
|                         |                    |  % Net sales|
+-------------------------+--------------------+-------------+
|Net sales (Excl.         |                 396|       100.0%|
|T&D).....................|                    |             |
+-------------------------+--------------------+-------------+
|Gross margin after distri|                 270|        68.1%|
|bution costs.............|                    |             |
|.........................|                    |             |
|.........                |                    |             |
+-------------------------+--------------------+-------------+
|Advertising & promotion..|                (87)|        21.8%|
|.................        |                    |             |
+-------------------------+--------------------+-------------+
|Contribution after       |                 183|        46.3%|
|A&P..................    |                    |             |
+-------------------------+--------------------+-------------+
|Profit from ordinary     |                  96|        24.2%|
|activities.......        |                    |             |
+-------------------------+--------------------+-------------+

+-------------------------+--------------------+-----------+-----+
|(EUR  millions)          |Change in Group     |  Variation|     |
|                         |structure           |           |     |
+-------------------------+--------------------+-----------+-----+
|                         |                    |           |     |
+-------------------------+--------------------+-----------+-----+
|Net sales (Excl.         |                  28|         8%|   29|
|T&D).....................|                    |           |     |
+-------------------------+--------------------+-----------+-----+
|Gross margin after distri|                  17|         7%|   17|
|bution costs.............|                    |           |     |
|.........................|                    |           |     |
|.........                |                    |           |     |
+-------------------------+--------------------+-----------+-----+
|Advertising & promotion..|                 (4)|         5%|  (4)|
|.................        |                    |           |     |
+-------------------------+--------------------+-----------+-----+
|Contribution after       |                  13|         8%|   13|
|A&P..................    |                    |           |     |
+-------------------------+--------------------+-----------+-----+
|Profit from ordinary     |                  11|        12%|   11|
|activities.......        |                    |           |     |
+-------------------------+--------------------+-----------+-----+

+-------------------------+----------------+--------------+---+-+-++
|(EUR  millions)          |  Organic growth|  Forex impact|   | | ||
|                         |                |              |   | | ||
+-------------------------+----------------+--------------+---+-+-++
|                         |                |              |   | | ||
+-------------------------+----------------+--------------+---+-+-++
|Net sales (Excl.         |              8%|           (0)|  0| | ||
|T&D).....................|                |              |   | | ||
+-------------------------+----------------+--------------+---+-+-++
|Gross margin after distri|              7%|           (0)|  0| | ||
|bution costs.............|                |              |   | | ||
|.........................|                |              |   | | ||
|.........                |                |              |   | | ||
+-------------------------+----------------+--------------+---+-+-++
|Advertising & promotion..|              5%|             0|  0| | ||
|.................        |                |              |   | | ||
+-------------------------+----------------+--------------+---+-+-++
|Contribution after       |              8%|           (0)|  0| | ||
|A&P..................    |                |              |   | | ||
+-------------------------+----------------+--------------+---+-+-++
|Profit from ordinary     |             12%|           (0)|  0| | ||
|activities.......        |                |              |   | | ||
+-------------------------+----------------+--------------+---+-+-++
This information is provided by HUGIN

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