Pernod Ricard S A

Good morning to all of you. I hope you have spent a wonderful summer. And so without further ado, let's dive directly into the exact summary and the key messages of our fiscal year 20 sales and results. I think the two key words that could summarize this fiscal year are resilience and agility. Obviously, our first half, which you already are familiar with, was qualified as solid, perfectly in line with our strategic plan, transform and accelerate. We had growth across all regions and brands. We had good price and mix. And we were driving organic improvement of our margin by roughly 50 basis points. And then came the COVID crisis. It started in China towards the end of January. spread very quickly to travel retail in Asia during the course of February and became global in the month of March and thereafter. At that point in time, we made it quite clear internally in Pernod Ricard to focus on two objectives there. Number one, resilience and demonstrate the resilience of our business model. And number two, agility and show how quickly we could adapt the organization and our resource management to cope with this crisis. And first and foremost, obviously the number one priority internally and which still is our priority as we enter into this new fiscal year for Pernod Ricard is obviously the health and the safety of all our employees and business partners. Some of the key lessons from this crisis is actually a pretty strong resilience of the off-trade. We were, in fact, pleasantly surprised by the resilience of home consumption. But, of course, difficulties in the on-trade and travel retail, for sure. We made it a clear point to end our fiscal year with healthy or sound stock levels across all markets, specifically, by the way, the key ones being the U.S. and China. We'll get back to that. I would also like to share with you something we're quite proud of, is that if you take our top 10 key markets, we took the top 10, we've been either maintaining or gaining share in every single one of the top 10 markets of Bernoulli Gap. As I mentioned it, we wanted to show how agile we were in terms of resource management, So we have been extremely active in terms of resource management. Bear in mind that all of that activity happened in the space of literally only four months when the crisis really hit. And this helped us mitigate the margin erosion to only, should I say, 130 basis points. Of course, during crisis periods, cash and more specifically liquidity position is critical. Cash is king. So we had a quite dynamic management of our liquidity position, which we reinforced during the crisis. Obviously, we raised during the course of the year 3.5 billion, of which 2 during the month of April during the crisis. We'll touch upon this later with Hélène. I will also touch upon our sustainability and responsibility roadmap and on our transformation agenda, particularly regarding digital or digital transformation. I think that one of the key lessons of this crisis, just as in many crises, what crises tend to do is they accelerate emerging or existing new trends. And two trends which were already here before the crisis were sustainability and responsibility, which is becoming increasingly important and which is critical for us and has been for many, many, many years. What this crisis has done, it has accelerated the importance of sustainability and responsibility across the world. And we've decided to accelerate that roadmap. And as well, what this crisis has done is Needless to say, it has also accelerated digital trends. And we'll share with you our transformation agenda from that point of view, and as well a few numbers regarding e-commerce trends that have clearly accelerated during the course of the crisis. The following slide, just our key figures. So organic decline of our net sales of 9.5%. reported sales down 8% thanks to a positive currency impact. If you look at mature markets, down 8%. Organically, emerging markets down 12%. And therefore, profit from recurring operations better than what we expected, down only, should I say, 13.7%. This leads to a net profit from recurring operations down 13%. And finally, a net profit down 77%, which is impacted by a roughly €1 billion asset impairment triggered by the COVID-19 crisis. And in particular, due to absolute heavy exposure to travel retail on one side and also to the entrees. So, if we look at our – if we dive a little bit deeper into our sales, as I mentioned, robust growth in the H1, and obviously, without surprise, significant impact in our H2, which leads to a global decline. If you look at the split by region, America is down 6%, but with good resilience, and we'll get back to that, in the U.S. and Canada, basically in North America. Okay. but double-digit decline in Latin America and travel retail. Asia, rest of the world down 14%, driven by China, India, and travel retail. No surprise there. And Europe down 6%, but pretty strong resilience and strong market share gains in Germany, in the UK as well. And Eastern Europe and Central Europe actually performed quite well. And again, travel retail, And Spain and France were quite hit. If we look at this from a brand point of view, by brand category, strategic international brands down 10%. We'll get into this later. Strategic local brands down 9%, mainly driven by Seagram's whiskeys in India. Specialty brands grew during COVID. the fiscal year, up 7%, and that's despite the crisis, and that's driven by a favorable geographic exposure on one side and very strong dynamism of Ville in Europe and Altos and Redgrass principally in the U.S. Strategic winds down basically 4%. Quick zoom on the fourth quarter, which I think, which frankly was the worst quarter ever, Just to put it in a nutshell, the month of April was the month where I think most of the untraded accounts across the world were closed. A lot of people were locked down. Passenger traffic was roughly down close to 100%. And our sales in India were down 100% as well. So Q4 was down 36%, as you can imagine. But again, as I mentioned, we were pleasantly surprised by the resilience of the off-trade. As I said during the introduction, I think it's something I'd like to take the opportunity to thank our teams around the world because it took a tough crisis. But if you look at this chart, what it literally says is that our top 10 markets either maintained or in fact gained shares during the course of the year. I think this is a testament to the exceptional commitment and engagement of our colleagues from around the world at brand level and at market level. So again, you have the split of our sales by region here, and let's start with our must-win markets. and the most important one of all, the U.S., where we believe we've had a robust underlying performance. It's probably been, it has been the most resilient market during the course of the crisis, thanks to the off-trade. We believe that the market is currently growing, well, during the course of the fiscal year 20, so over the last 12 months, the market has has grown slightly below its long-term trend. Before the crisis, we believed that the market was roughly at plus four, four and a half, let's say. Right now, we believe that over the last 12 months, the market is probably between three and four, let's say slightly below four. And that's a mix of pre-crisis much above four and post-crisis probably below four. We have seen and you've all seen through the Nielsen panels an acceleration of the premiumization trend in the U.S. on one side and as well as a clear shift to what we call tried and trusted brands. And I would say as well with a clear consumer behavior shift to big formats as well. So the consumer behavior adapted to lower prices frequency rate of going and shopping. And to do that, you spend less time, you go shop less, and once you're in the shop, you spend less time. So it means that trusted brands and big formats. And obviously, and I'll get back to that later on, significant jump in e-commerce sales in the U.S. We believe our Pernod Ricard sellout to be roughly at plus 2%. That's our estimate, which is broadly in line with both the on-trade trends and the off-trade trends during the course of our fiscal year. And the sell-in, which is down 4%, is a pure consequence of a very tight inventory management strategy and also context of the prudence of the trade and, of course, protecting our cash in the U.S., So, we believe, and as I said it during the introduction, that we've ended the year with a sound or healthy stock level in the U.S. From a portfolio point of view, good performance of Jameson with a clear acceleration of the growth in the off-trade. No surprise, a softer performance in the untrade. The lockdown in many countries and the closures of untraded accounts literally happened, I think, 48 or 24 hours ahead of St. Patrick's Day, which was a big blow for Jameson and our Jameson teams, which were ready with a pretty strong activation plan. But listen, that's what I told them. That's life. Our growth relays performed pretty well. If you look at the Glenlivet acceleration of share gains across basically all channels, very dynamic growth of founders reserve, and also we've been quite active on the innovation front with the launch of Glenlivet 14, which occurred exactly a year ago, and the launch of Caribbean Reserve, which took place in Q4. Martel, pretty dynamic sell-out in the off-trade, driven by Blue Swift, but also heavy impact due to the off-trade exposure of the brand. Our tequila brands have, in fact, accelerated during this crisis, tequila being one of these segments that benefited. What the crisis did is probably accelerated the growth of that category, so we're pretty happy with the the performance of both Avion and Altos. And Jefferson's has been performing quite well as well before and even more so during the crisis. I could keep on talking about our future growth stars, but pretty dynamic performance of most, if not all, our growth stars. And as for what we call our bastions, Absolute, while still challenging, but resilient in the off-trade for Absolute as a brand. We have reduced the gap of growth, of decline, let's say, of Absolute relative to the category, the vodka category performance. And finally, very strong performance of Malibu and, by the way, of Kahlua, which has accelerated during the crisis. So that's for the U.S. For China, as we have said and we confirm, progressive recovery in Q4, so in line with our expectations. We have had a strong growth in the first half. If we look at Q4 versus Q3, we see an improvement of sales in line with what we had shared with you during the last communication. Progressive reopening of the untrade outlets and recovery of consumer confidence. I think the number today is we believe 90% of the outlets are reopened. And when we say 90, it means that you can assume it's 100 because the other 10% will probably never reopen. And we also, as I mentioned, China is one of the clear markets where we've witnessed a clear acceleration of digital, both in terms of marketing initiatives, in terms of activations, in terms of content. but also in terms of e-commerce for sure. Brand resilience, clearly. Of course, Chivas and Martel have undergone strong decline because they are the two most exposed brands, not just for us, I think for the industry, to the on-trade. We maintain our very strong leadership share for Martel. And by the way, Worth well noting that sellout is back to growth in value terms in June for Martel in China. Very good pricing overall on our strategic brands for China. And despite the crisis, strong growth of our premium brands, in particular, Jameson, Beefeater, and the Glenlivet. India, frankly, I would say it's a good resilience market. of India as a market, despite what I mentioned earlier on, which was the very strict lockdown disrupting our fourth quarter. Again, during the month of April, we were under full lockdown, zero sales in India in April. Despite that, only, should I say, minus 11% during the course of the fiscal year, we consolidated our leadership position with our market share still above 45%, in fact, still growing slightly. Low single-digit growth in the first nine months, despite what we had shared with you during the H1 communication, which was pretty disruptive the first half with flooding and weaker macroeconomic conditions. And I won't go back to the lockdown. And finally, our fourth must-win key market, well, I would say, unfortunately, unsurprisingly, global travel retail down 27%. And by the way, we do expect that specific, very specific channel to keep on being subdued during this new fiscal year. And I'll share with you a couple numbers of the beginning of this year in terms of passenger traffic. Anyhow, the good news is we have reinforced our leadership position, and we have gained shares during the course of calendar year 2019, overall 80 bps of improvement. We had pretty strong sellout trends in H1, particularly, by the way, on Martel and the higher quality whiskeys. On our gin portfolio, we were quite active on the innovation front. But listen, you know the story. I won't dwell upon it. The second half was extremely tough for travel retail. I would say very good resilience in Europe with a pretty strong performance and pretty strong market share gains overall. France, minus 5%, but beyond the number, I would underline the fact that we've implemented Project Reconquête, And as of July 1st, the new legal entity, a new one-team Pernod Ricard France has come into effect. So this happened, by the way, during the lockdown. In Spain, down 18%, obviously all skewed towards the second half of the year, which was very heavily impacted by the untrade and, as you can imagine, the borders. UK, very strong resilience with growth, including during the second half, during the crisis. driven, of course, by the off-trade, and as I mentioned, very strong share gains overall in the UK. Same story, by the way, for Germany, which was up during the course of the year, double-digit, 11%. And I would like to underline the strong growth of Lille, but also Wapfood and Havana Club in the German market. Russia, very good resilience as well, only down 2% with a good price and mix. And finally, Poland, a double digit plus 10%. And as you may know, Poland is principally an off-trade market. And this is a pure example illustration of the strong resilience of the off-trade during the crisis. Very briefly, other key markets. Canada grew as well. As I mentioned, Latin America was in decline. Asia, rest of the world, good performance of Japan despite obviously a very disrupted Q4. Korea down 27%. If we exclude Imperial, only, should I say, down 9%. And Africa and Middle East, modest growth up to the first nine months, but of course Q4, as you can imagine, principally driven by a complete decline total alcohol ban in South Africa. And it's important as well to stress the extraordinary performance of Pernod Ricard in Turkey, which grew double digits during the course of the full fiscal year, which is quite incredible, and driven principally by Chivas, Valentines, and tequila and vodka. Very briefly, by brands, again, on that slide you have the overall view. If I start with Martel, obviously good growth in H1 and severe impact due to Martel's very strong exposure to Asia and China in particular, and of course to global travel retail. So let's recall that H1 was up 4% on the basis of a very high comparison, up 23% in first half of fiscal year 19. And if you look at H2, this is where you see almost down 60% versus H2 of the previous year, again, due to the exposure I mentioned. But we continue our value strategy, and I think it's worthwhile mentioning As I mentioned it already before, that we ended the June end with very healthy stock levels basically everywhere and on Martel in particular. Jameson almost stable, which is also a great performance given the situation with a very strong market. first half of the year, up 9%, where the brand was basically doing extremely well in the U.S. and accelerating, and also in line with the strategy for the brand, which was to, and still is, to globalize Jameson. It was basically growing literally everywhere. And then Wall H2, down 14%. Jameson is one of these brands that has more exposure globally then the average or then our fair share to the on-trade, and also is one of our key brands in global travel retail. If we look at the Jameson portfolio itself, which is growing as a portfolio, Jameson Original is gaining share in its key markets. Black Barrel did experience strong growth during the course of the fiscal year, up double digits. And our innovation strategy with triple-triple travel retail and cold brew mainly in the U.S. is showing some pretty good early results. Scotch, I think the key point there, and I think this is probably, relatively speaking, probably our best performance for this past fiscal year. We've had some strong market share gains with our Scotch portfolio, which is down 11%. So we've outperformed competition in the key markets, in Scotch key markets, whether it's the U.S., France, Germany, Russia, Turkey, Australia, Taiwan, and In Poland, this dynamism has been driven by our premium scotch and single malts. So, share this is down 17%. I would say for similar reasons to Martel due to its strong exposure to travel retail and to Asia, in particular China. The Glenlivet grew over the full fiscal year, and again, I won't stress again the innovation strategy behind the Glenlivet. Ballantyne is down 8%, but if you look at Finest, Finest has, in fact, experienced a pretty good relative year, down only 3%, and gaining share I was going to say in all markets, but let's just say in most markets. And finally, Royal Salute down 2%. Absolute, the year has been challenging. We have grown quite nicely in a number of international markets. But again, Absolute, as I mentioned during the introduction, is quite exposed today. to two things, to travel retail, number one, and to untrade, in particular, nightclubs and so on, which are still closed in most, in fact, markets. So it's a tale of two stories, a stable H1 and a very strong declining H2, down 24% for the reasons I just mentioned. Other key brands, briefly, Befeater down 7%. Hanna Club, more or less the same, down 6%. Malibu, very good growth, up 5%. Actually, one of our best years for Malibu. Ricard, down 6%, mainly driven by border shops, which are important for the brand, which were closed. Mum, down 13%. Paris Red, down 12%. And as I mentioned earlier on, our strategic wine portfolio down only 4%. Very briefly, growth of our specialty brands portfolio up 7%, which benefited from I would say two things. Number one, their positioning with the likes of Lille in Europe, which is really a very high momentum brand, not just in Germany, in most European markets, but also our tequila brands in the US, as well as Red Rest, just to name but a few. So number one. And number two, Our route to market, the Pernod Ricard route to market and supply chain, which remained operational during the entire crisis, benefited as well our specialty brands. In terms of innovation, which is obviously one of our key strategic pillars stable this year, we stopped a few innovations that were planned because no need to launch in the middle of the crisis, especially in travel retail. And luxury, our luxury portfolio declined 14%, and this is clearly mainly driven by Martel. While strategic local brands down 9%, it's mainly driven by our Seagram's Indian Whiskies. As I mentioned, to be fair, Kahlua, Seagram's Gin, and Almeca all performed, in fact, pretty well given their circumstances. You know, as I mentioned, what crises tend to do is they accelerate emerging or existing phenomena. Sustainability and responsibility is gaining critical importance around the world, and what this crisis has done, for sure, it has accelerated this phenomenon. In Pernod Ricard, it has as well. It's not new for us, by the way. Back in May, we presented to you all where we were standing in terms of sustainability and responsibility. In spring of 2019, we launched our second roadmap, 10-year roadmap, because we've completed our first year roadmap, which, by the way, was completed by the end of this fiscal year. I do believe it is increasingly important for companies for many, many reasons. First of all, companies have a clear role to play to address and play their role in terms of addressing the environmental and social shifts which are happening around the world. It does matter to our consumers. It matters increasingly. Consumers want to know what organizations, what companies lie behind brands when they choose brands. It's very important. It's important in terms of what we call our EVP, Employer Value Proposition. When I have welcome interviews with our key talents within the group, they don't talk about our strategy. In fact, our strategy is quite clear. What they're interested in, and 90% of the interview is about our sustainability and responsibility strategy. It's critical to attract and to retain talents. It also sparks innovation and builds purposeful brands, and every single one of our brands does stand for a set of very important values. By the way, all our brands come from nature. The ingredients behind our whiskeys, behind our vodka, behind our gin, behind our cognac, behind our wine, come from nature. They come from grapes. They come from grains. They come from potatoes and so on. And finally, I think it's the best way to express our vision. Créateur de convivialité. We owe this to our people. We owe this to the world. So anyways, 10 years ago, we came up with our first roadmap, what we had called our 2020 Environmental Roadmap, as we have already shared this with you. By the end already of 2019, we were ahead of our roadmap on a number of very important criterias, Now that we're done, we surpassed our target in terms of CO2 emissions. We were targeting a 30% reduction. We're, in fact, down 33%. And, by the way, it's not over. We will continue, and we'll see how in a couple minutes. Water usage as well. We were targeting a reduction in water usage of 20%. We're down 23%. And we were targeting zero waste to landfill emissions. We're almost there. We're down 95%. We should be there in the very near future. I won't go back on our new 10-year roadmap because we spent quite a lot of time on it. It's a very detailed roadmap with quite ambitious targets around four key pillars, nurturing terroir, of course, valuing people, circular making, and given the industry in which we operate, for sure, responsible hosting. And all of this, I would like to say, we aspire to creating a more convivial world, a world without excess, from grain, from the terroir, all over to glass. Very, very briefly, you see some of the key initiatives in terms of our first dollar nurturing terroir, We were amongst the first ones in France to announce that we were banning glyphosate in our vineyards in Cognac. Many other initiatives on that front. In terms of valuing our people, I will only stress one thing. One of my biggest proud moments of this crisis, the initiative of producing glyphosate pure alcohol and donating pure alcohol in many, many countries and also producing, believe it or not, hand sanitizer across the world. In fact, in all the countries where we have production facilities that can produce, this initiative came from our own people. I didn't wake up a morning and say, by the way, let's give pure alcohol. It's our teams on the ground that came out with these ideas. By the way, simultaneously across the group. It's not one country that had the idea before another. It's literally all our teams around the world that could and did. And therefore, more than 4 million liters of pure alcohol was provided to external partners. If you can imagine how this translates in terms of hand sanitizer. And as well, we produced in over 10 facilities around the world more than a million liters of hand sanitizer. Well, we have many, many other initiatives from that point of view, but I wanted to stress this because I think this is a perfect, concrete example of what we're capable of doing when we say, We need to help our communities around the world and companies, and Pembroke, from my point of view, for sure, have a role to play. Now, if I go into circular making, which is all about safeguarding our natural resources and minimizing waste, well, in the middle of the lockdown, we decided to accelerate what we could accelerate from that point of view, and we've decided... to accelerate the ban we announced on single-use plastic, point-of-sale items. Initially, we had set ourselves to be done with that by 2025. We now commit to be done with that by the end of next year. So that's quite an aggressive move amongst many other initiatives. And finally, responsible hosting, for sure, which is critical which is critical to the industry in which we operate. We took the opportunity of this crisis and having a lot of people under lockdown to make all our MOOCs in terms of responsible drinking available online and to make them go through them at home. So that's one other initiative amongst the many that we did. So I mentioned that the crisis accelerated the conscience of people and companies about the environment and its importance, but it also accelerated other trends. And for sure, our business transformation, in particular around digital, is a clear trend that this crisis has accelerated. I mean, if you look at the valuation of tech companies today, that are at their all-time high, I think this is a perfect translation. I don't know if it's the last, I don't know, I'm not an expert, but this is a perfect illustration of the acceleration of digital in the midst of this crisis. And I do believe that technology, that data, And more generally speaking, our digital transformation is a great opportunity, is a wonderful opportunity for Pernod Ricard to address a number of issues or, in that case, opportunities that present themselves in our industry. Whether it's market fragmentation, whether it's the birth or the emergence of new channels, whether it's our route to market, I like to see Pernod Ricard as being In a way, we like to say that we have the most extensive distribution network in the world. I could say the vision there is to have the best platform in the world. And at the end of the day, it offers the best opportunity ever to really have direct interaction with our consumers. from a transactional point of view, but I would say that's secondary versus as well in terms of knowledge, in terms of exchanges, in terms of communication. So we're undergoing a profound digital transformation in Pernod Ricard. By the way, it is not new. It is part of Transform and Accelerate. But what we've decided to do is to apply both words to our digital transformation in Pernod Ricard, which is not just do the transformation itself, but accelerate it as well. So both from a CapEx and investment point of view, an upscaling point of view, an expertise point of view, we've decided to accelerate our initiatives on that front. I won't go into detail, but this could be the opportunity one day, talking under the control of Julia, but to maybe organize a call with all of you to share our vision and initiatives around our digital transformation. But do expect strong investment in that area because I think this will open a wide range of opportunities for ourselves. And just a few numbers to show how much this crisis has driven additional opportunities. There is a clear acceleration of e-commerce opportunities. China, which is for us our biggest e-commerce market, if you look at our portfolio of brands, they grew 46% in that channel, which was already the fastest-growing channel, but that growth rate accelerated. Look at the U.S., literally doubled our e-commerce sales, not Pernod Ricard e-commerce sales for obvious reasons, three-tier system and so on, but on-demand delivery sales. which is the way we view that channel in the US, literally doubled during the course of the year. Same comment for the UK, up 92%. Same comment for France, up 56%. And if we look at our own marketplace, our own platform, which is now operating in 10 markets or so, it grew 50% during the course of the fiscal year. And specifically during the course of the crisis from March to July, It more than doubled, plus 130%. As you can imagine, supply chain and logistics has been the biggest challenge from that point of view. Now, obviously, it's nice. I'm kind of feeling alone here with Hélène in a huge meeting room. By the way, don't worry. We're practicing physical distancing because the room in which we are is quite big. It's the boardroom. Anyways, initially, it would have been better to have you in our new auditorium in the city center of Paris, in Saint-Nazaire, in a building called The Island. We moved during the crisis. I think that's quite an illustration of the fact that this crisis didn't stop us from doing everything we had planned to do. We have our new flagship building. We have our seven separate entities that are now under one single roof for a lot more collaboration, for a lot less or the disappearance of silos, and obviously for a lot more performance, efficiency, mutualization through the creation of centers of excellence. It's a hyper-connected building, I can tell you that. Now, having experienced this for the last couple of months, obviously perfectly in line with our sustainability and responsibility ethos. We have our showrooms. It is a very consumer-centric approach as well. We're located, clearly, the first thing right below our building is one of our key accounts. It's a bar. So anyways, where we see our consumers on a daily basis, not in the morning when we come, but more in the evening at the aperitif time. Hopefully, you'll be able to get to know our new offices in the coming, maybe not weeks, unfortunately, but months, should I say. And on that note, I will pass on to Hélène to talk about our financial performance.

Thank you, Alex, and good morning, everyone. So, let's move to the profits from recovering operations. So starting with the group P&L, we talked already about the net sales decline of minus 9.5% from the organic point of view. You have on that slide all the details between H1 and H2, which is as well a very clear illustration of how we navigate through the crisis and what has been done as well in terms of cost mitigation. Back to net sales, resilient pricing on strategic brands. You mentioned that TIG is already excellent, plus 1%. Gross margin is down minus 12%, which has an impact in terms of ratio of 140 basis points. This is driven mainly by an adverse mix linked to strategic international brands and especially the decline of Martel and Chivas. but as well higher cost of goods with still strong headwinds. Unfortunately, I think I can call them so far the usual suspects that are the agar pressure and the significant increase in terms of cost of glass at the grain neutral spirit in India, but as well lower fixed cost absorption in the context of the volumes decline linked to COVID-19 impact, obviously, despite continuation of the operational extended savings. ANP, so the ratio is plus 88 basis points thanks to very strong mitigation plan in H2. It's minus 33% in H2 and full year minus 14% in terms of ANP spend. Structure costs, 79 basis points down with top line decline reducing the fixed cost absorption but a very strong cost discipline. That is as well quite visual when you look at the H2 trend, minus 9%. Moving to the profit from recurring operation margin reduction, contained, as you mentioned, Alex, to 130 basis points, despite the significant sales reduction, which is demonstrating our strength in terms of cost management. Moving now to the different regions, and starting with America. So COVID-19 impacted, obviously, the region in H2. We had a high comparison basis last year, leading to a decline in the profit from a recurring operation of minus 13%. Gross margin is down 200 basis pounds, primarily driven by the U.S., where we have a negative mix, both coming from format and channel, and You mentioned that, Alex, the new trend and environment adapted to the lockdown with a significant resilience of the off-trade, this one-stop shop that as well favored larger formats, which is driving this negative mix in terms of gross margin. We have as well suffered from the agave price pressure and as well U.S. tariffs. ANP down minus 12% with a ratio at 110 basis points with strong investment reduction throughout H2 to adapt to the context and to the lockdown, to be clear. Structure costs are almost stable with a significant reduction in H2 as well with a rate of minus 120 basis points with a strong mitigation in H2. I must say the strong mitigation of structure costs and ANP materialize absolutely everywhere. So reported profit from recurring operation is at minus 9% thanks to favorable FX impact with the US dollar that strengthened versus euro in fiscal year 2020. Moving now to Asia, rest of the world. So profit from recurring operation at minus 21%. Strong H1 growth, more than upset by the H2 severely and with an earlier impact of COVID-19, in particular in China and travel retail. And then India in Q4, gross margin minus 136 basis points with an adverse market mix due to the increased rate of India that has been less impacted than China in travel retail by COVID due to the phasing of the sanitary evolution. Inflation on glass and GNS that I mentioned before and lower fixed cost absorption due to the significant decline of the volumes of Martel in China. ENP broadly stable in terms of ratio with a very strong mitigation plan in H2 and structure costs at minus 6%. Moving to Europe, so profit from recurring operations are almost stable, so which is on top of what has been mentioned already in terms of overall business resilience of Europe in this fiscal year is showing as well the concrete implementation of very strong cost mitigation. so top line minus 6%, gross margin minus 8%, mainly due to adverse mix. This is especially due to the decline in travel retail in Spain, which is very exposed to the on-trade, as you know, and as well lower fixed cost absorption. EMP minus 17%, so very strong cost mitigation implemented in H2. Structure costs minus 9%, with implementation as well of several efficiency projects on top of the very strong cost discipline. This is especially true for France with the implementation of the Reconquête project. So a strong increase in terms of profit from recurring operation margin by more than 120 basis points. Moving now to the net profit, starting with the earning per share from recurring operation at minus 13%, so quite close to the net. report a decline of profit from recurring operations. Important to point the average cost of debt, which is reducing from 3.9% last year to 3.6% this year, thanks to lower rates and new bond financing. We've been quite active in terms of refinancing with issuance of more than 3.5 billion euros. Tax rate on recurring items is at 24% versus close to 26% in the previous year, which is due to reduction in Indian tax rate, quite significant one, and as well geographical mix. The reduction in number of shares is obviously reflecting the share buyback program that was implemented in the first nine months of the year. Moving to non-recurring, so non-recurring expenses first, minus 1.2%. 280 billion euros driven by the brand impairment, close to 1 billion euros, mainly related to Absolute, triggered by COVID-19. So the amount for Absolute is 900 million euros gross, circa 700 million after tax. Risk factoring charges, minus 178 million euros, which is including especially the... restructuring in France and in the wine organization. Other charges close to 40 million euros that are COVID-19 related, including charitable donations and supply of hand sanitizer, but as well consolation of some of the promotional events. Non-recovering financial results of minus 38 million euros. This is mainly due to the one-off cost linked to the early redemption of the April 21 bond, and this early redemption accounts for 50% of this bond, and that happened at the end of June. Moving to the corporate income tax on non-retiring, this is an income of €200 million, €210 million to be very accurate, and this is driven by deferred tax liability adjustment linked to change of tax rate in UK and India. If I move now to the group share of net profit, which is a decline of minus 77%, and this is mainly due to the non-recurring items, in particular the impairment chart I just described. If I move now to cash, you have here the full cash flow statement. Just one comment here. Our recurring operating cash flow is as well... a very good reflection of the very strict cash management that was put in place in this fiscal year. We managed to protect our conversion rate to 80% in that context. If I move now to the recurring free cash flow of 1 billion euros with a very active cash management and inventory, but as well on CapEx, which enabled us to protect the cash generation. despite the decline in profits from recurring operations. So an increase in strategic inventories due to lower usage of stocks in the context of a significant decline in sales, but this was partially offset by a very active initiative, as I mentioned. CapEx were maintained stable. As you probably remember, our intention was to increase our investment in this fiscal year to support our long-term ambition, and we managed to stabilize them in the context of the crisis. But we are still obviously continuing to implement our strategic projects, such as some of these industrial projects, like the new move this year in China and bottling hole in Scotland, and as well office moves that we mentioned, especially for France. Operating working capital has been deteriorating due to, I would say, the timing of the COVID impact in Q4, so higher Finnish good inventories Lower payables, which is the cash translation of the very strong cost mitigation, partially offset by lower receivables due to the Q4 sales decline. And we have to mention the impact of IFR 16 on recurring free cash flow, plus 86 million euros. Non-recurring free cash flow is mainly due to the reduction costs I already mentioned. Moving to the leverage, on EBITDA ratio, at the end of June, is 3.2 higher leverage compared to last year due mainly to the lower free cash flow I just described and as well the increase in dividend share buyback and cash Dynamic M&A, you have here some illustration of our dynamic M&A policy with some of the acquisitions that were completed in H2 with Kinobin and Italicus and Monkey 47, but as well some disposal with Café Paris. The share buyback program, which comes for 523 million euros before suspension of the program back in April. Our dividend payout in line with our financial policy of circa 50%, and additional lease liability for 600 million euros, which is following the implementation of IFRS 16. Return to shareholders, so proposed dividend of 2.66 per share, which is minus 15% versus last year, which would be submitted for approval to the annual general meeting, which will take place end of November, and as well implementation of the share buyback program that I already mentioned that was completed end of early April. And I hand over to you, Alex, for conclusion and outlook.

Thank you very much, Hélène. I won't go back to the H1, H2 fiscal year 20 numbers. I would just say that what we tried to demonstrate was, number one, the resilience of our business model, and number two, our agility to move swiftly and quickly in terms of resource management. So, given the situation, I do think that we were able to demonstrate these two objectives. Now, going forward, because obviously that's what you were probably most interested in and might be somewhat disappointed in because we didn't give any specific numbered guidance. we decided at this stage to share with you a qualitative guidance just because I don't think it would be prudent at this stage to give you factual numbers because the reality is I think it's more important for us to be focused on driving our performance in an environment which we see continuing to be uncertain and volatile. So there is not 100% visibility on the coming months. We do believe the economic conditions will remain challenging. And for sure, we do foresee a prolonged downturn in travel retail. If you look at the month of July and the month of August, passenger traffic and passenger reservations are down between 80% and 90%. So we do see a prolonged downturn for that specific channel. On the other hand, and as you've seen during the course of this presentation, we also expect resilience of the off-trade, whether it's in North America, specifically in the U.S., but also in Canada, and across Europe as well, whether it's Western, Central, or Eastern Europe, with, as well, sequential improvement in China, India, and also in the on-trade as it reopens over the course of the coming weeks and months. We will continue to implement clearly our strategy, transform and accelerate. What this crisis showed is our portfolio of brands, known and trusted brands, is the right portfolio for that environment. What this crisis also showed is the very strong engagement of our employees. I really would like to pay tribute to them. It's not been easy, including on a personal note. We will continue to manage very strictly, obviously, our costs. We've implemented a number of guidelines internally to that effect, the most important one of them being, of course, purpose-based management. investment decisions. So everything we do in terms of investment is purpose-based budgeting. We will remain very agile to be able to basically capture every single opportunity as they arise. I think we've been pretty good at that if I take the illustration of e-commerce. We will continue to do so because I do believe that the recovery will vary quite significantly from one market to another and even from one brand to another. And as we mentioned earlier, One of the key transformations we're undergoing is our digital transformation, and this year we'll mark an acceleration of that transformation. So on that note, Julia, I hand back to you.