PERNOD RICARD WINEMAKERS Sustainable initiatives and engaging supplier support May 2015

2 Business Dimension – Operations Footprint − Co-bottling in UK UK Production centre at Rowland Flat for: − All premium wine globally − JC Classic for Asia / Pacific − RTD − Sparkling wines globally − ~5.7M 9LE Rowland Flat Adelaide − Portavin - Altia − 3lts BIB Finland SA/VIC/NSW − 3 wineries − 5 regions of own vinyards

Pernod Ricard Sustainable Development Charter Focus on Sustainability The Charter states that Pernod Ricard have a number of commitments including safeguarding the environment. Under the heading Conserve natural resources and respect the environment: The principle of sustainable development guides the design, implementation and development of the group’s industrial activities

Packaging eco-design is the integration of environment consideration into packaging design It includes what is expected from marketing, procurement, Sustainability and suppliers Focus on Sustainability

Tender Process Environmental Sustainability section forms documented guidelines that are an attachment to the contract Monitoring Products are assessed against sustainable requirements How to we embedded into procurement?

CERTIFICATION ISO14001 – Environmental Management System ISO – Greenhouse Gas Verification Focus on Sustainability

ENERGY Energy Audit Green Trac – system to control and turn off computers Direct energy savings of approximately $20,000 in past 12 months WATER Water Assessment WASTE Waste Assessment PACKAGING Sustainable packaging guidelines (APC) Focus on Sustainability

WINERY & PACKAGING Smart Meters – drill down to areas and equipment Consolidation of Refrigeration Plants – 2 inefficient plants into 1 efficient one with 1.2M KWh savings annually Wastewater Aerator – 35,000KWh savings since September Increase in brine temperatures outside of vintage Turn off Initiatives - air compressor & boiler are turned off over weekends Air, Gas and Steam trap audits – leak repairs show significant savings Working with Suppliers on reducing number of deliveries Focus on Energy

DISTRIBUTION Installation of energy saving lighting and sensors Reduced warehouse door size and installed quick closing door Worked with University of Adelaide – outcome was improving air conditioning efficiency Switched off invoice printing in distribution and this is saving 72,000 pieces of A4 paper on 2 order types per annum Introduction of electric forklifts – Advantage in less CO2 emissions produced and cleaner air for workers Focus on Energy

JACOBS CREEK VISITOR CENTRE Review on lighting use – turn off during day Air conditioner – system put in place that only the manager can change the temperature 2 large Solar Trackers – approx. 20% JCVC usage Solar hot water for heating Down sized cooler room – replaced with 2 small wine fridges Focus on Energy

Waste Assessment with Zero Waste 100% Organic waste recycled 100% Packaging waste recycled BioBins for food scraps at Café and Jacobs Creek Visitor Centre 5% General waste Waste

100% Waste Water recycled to Local Golf Club Pigging system for transferring wine Autoblending Water

PACKAGING Glass weight reduction – working on this project since 2010 and it is saving us around 9,400 tonnes of glass per year and 12,000 tonnes of Carbon emissions Adding 2 rolls of labels into a carton instead of single packed and bulk deliveries of labels Removal of cardboard in transport of corks – delivered in bag stretch wrapped to pallet – Eliminating 20 cardboard cartons (32kg) for every 40,000 units (pallet) delivered and reduced manual handling Focus on Packaging