INTEGRATED ANNUAL REPORT 2021/2022

In North America, the long-term trends seen previously continue:

- Trading up - Consumers continue to trade up to premium plus-priced brands, seeking out authenticity and provenance in their choices. Our brand portfolio is well positioned in this respect.

- Convenience - E-commerce continues to create multiple opportunities to reach LDA (legal drinking age) consumers, educate on how they can enjoy Rémy Cointreau brands from the comfort of their own homes with at-home mixology, and activate across the brand portfolio, as with the successful joint Rémy Martin 1738 & Cointreau activations to mark 100 years of the Sidecar in late summer.

- Mixology - Consumers continue to increasingly experiment with cocktails at home and show a growing interest in classic cocktails such as the Cointreau Cosmopolitan in the on-premise market.

Latin America has been buoyant, driven by rapidly improving tourism traffic in the region and increased interest in cocktails in both the on- and off-premises markets.

The region continued to invest in its brands to help drive awareness, desirability and conversion to purchase, notably with a new Team Up for Excellence campaign featuring Usher, a new Cointreau x Cosmos campaign featuring Jessica Alba, and The Botanist’s first TV campaign - The Spirit of Community - launched during the Super Bowl LVI. This campaign marks the beginning of an ambitious new plan to make The Botanist the leading ultra-premium gin.

To reduce its environmental impact, the region has continued to cut down on its gift packaging/ boxes - now kept for limited editions only. And it is working with its partners to see how it can develop a more collaborative supply chain.

The region looks ahead to 2022/2023 with continued confidence. And with renewed distribution contracts in place for the US and Canadian business from 1 April 2022, it remains optimistic that it will achieve its goals.

The region posted remarkable growth over 2021/2022, despite Covid-19 restrictions continuing to shut down on-trade establishments in some places. This success can be put down to the region’s marketing efforts:

- Louis XIII: the Shanghai Plaza 66 shopping centre welcomed the fifth stand-alone boutique. Louis XIII also named famous Chinese singer and actor William Chan as its first ever brand ambassador in China. As part of his new role, Chan broke the seal on the first N^oXIII (one of just 200 ultra-limited-edition red decanters).

- Rémy Martin: the new Rémy Martin XO campaign ("Excellence Takes Time, Taste It Now", featuring new brand ambassador, actor Li Yifeng) was very favourably received. The brand also opened its first stand-alone boutique, in Haikou Mission Hills, Hainan province.

- Liqueurs and spirits: sales of Bruichladdich soared and its top-shelf range was in especially high demand. Cocktails were in vogue too - in particular the Cointreau Margarita. The brand’s intensive focus on this iconic drink in its on-trade marketing campaigns propelled the Margarita into China’s top 3 cocktails last summer.

Performance improved in Hong Kong, driven by the higher-end segment. In Taiwan, eye-catching, punchy campaigns worked well for Rémy Martin 1738 and whiskies. In Macau, sales shot up as tourists flooded back and Rémy Martin opened its first ever pop-up store.

In Southeast Asia, Single Malt continued to outperform forecasts. Sales of Louis XIII continued to improve too, especially in the second half. Cointreau’s recent investments in Australia and New Zealand started to pay off and Telmont launched in Japan and Singapore.

Robust consumption trends in China¹ and the lifting of Covid-19 restrictions elsewhere in Asia give the region every reason to be optimistic going into 2022/2023.