#1TREASURY WINE ESTATES 步行者 自転車専用 15 AUGUST 2023 120 IN ROUGE ONE Bongolids Sunfolds Benfolds 7001 ADMAR FRANCE RED BLEND CALIFORNIA CABERNET SAUVIGNON AUSTRALIA BRUNET RY 2220 RED BLEND WARE F23 Full Year Results ALLT#22 Important information This presentation is in summary form and is not necessarily complete. It should be read together with the Company's Annual Report and other announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. This presentation contains information that is based on projected and/or estimated expectations, assumptions or outcomes. Forward looking statements are subject to a range of risk factors. The Company cautions against reliance on any forward-looking statements, particularly in light of the current economic climate and potential impacts on consumer demand, the impact of continued high inflation on business outcomes, global difficulties in logistics and supply chains, foreign exchange rate impacts given the global nature of the business, vintage variations and the evolving nature of global geopolitical dynamics. While the Company has prepared this information based on its current knowledge and understanding and in good faith, there are risks and uncertainties involved which could cause results to differ from projections. The Company will not be liable for the correctness and/or accuracy of the information, nor any differences between the information provided and actual outcomes, and reserves the right to change its projections from time to time. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation, subject to disclosure obligations under the applicable law and ASX listing rules. Certain market and industry data used in this presentation has been obtained from research, surveys or studies conducted by third parties, including industry or general publications. Neither TWE nor its representatives or advisers have independently verified any market or industry data provided by third parties or industry or general publications. TWE#3TREASURY WINE ESTATES Introduction Tim Ford Chief Executive Officer MID STRENGTH PERJACK PJ SALTRAM ESTD 1859 EPPERJAC FULL OF CHARACTER 7.0% ALC/VOL BAROSSA SHIRAZ STACE FLAVOOL#44 F23 Announcement Highlights' . Earnings growth and margin expansion in F23, with EBITS +11% to $583.5m and EBITS margin +2.9ppts to 24.1%: - Delivered through strong top-line growth for the Luxury portfolio, led by Penfolds, price increases across several brands and cost savings from the global supply chain optimisation program Partly offset by reduced 19 Crimes and Commercial portfolio shipments in Treasury Americas and Treasury Premium Brands respectively Premiumisation trends continue across the wine category despite the tightening economic environment - Luxury wine continues strong growth trends in key markets, while the Premium segment remains resilient Good progress made towards implementation of the new Treasury Premium Brands operating model and restructuring of the Australian Commercial wine supply chain We are well positioned to deliver growth in F24, supported by Luxury portfolio growth, the strength of our diversified global business model and the benefits of key asset base and cost optimisation initiatives 1. Unless otherwise stated, all figures and percentage movements within commentary are stated on a reported currency basis versus the prior corresponding period, are pre-SGARA and material items and are subject to rounding TWE#5F23 Financial Highlights¹²,3 Earnings growth and margin expansion delivered in F23 5 LO NSR EBITS $2.4bn ▼2.2% $583.5m 11.4% $376.1m NPAT 16.6% NSR per case EBITS margin $109.7 12.7% 24.1% 2.9 ppts EPS 52.1cps ▲ 16.6% Cash conversion 60.6% ▼ (43.7)ppts Net Debt/EBITDAS 1.9x ▲ 0.1x ROCE 11.3% ▲ 0.6ppts Full year dividend 35.Ocps 12.9% Luxury and Premium contribution to global NSR 85% 2ppts 1. 2. Financial information in this report is based on audited financial statements. Non-IFRS measures will not be subject to audit or review, and are used internally by Management to assess the operational performance of the business and make decisions on the allocation of resources All figures and calculations in this presentation are subject to rounding 3. Unless otherwise stated, Financial Highlights are disclosed on a reported currency basis, before Material Items & SGARA. NPAT and EPS exclude earnings attributable to non-controlling interests. TWE#6F23 Divisional performance Each division delivered NSR per case growth and EBITS margin expansion in F23¹ Singeles. TREASURY 6 CO AMERICAS 3 TREASURY PREMIUM BRANDS Metric² NSR (A$m) F23 % % CFX F23 % % CFX F23 % % CFX 819.7 14.3% 13.8% 820.8 (11.7)% (18.4)% 782.4 (5.7)% (4.7)% NSR per case (A$) 354.4 6.7% 6.3% 150.0 18.4% 9.4% 54.7 5.2% 6.3% EBITS (A$m) EBITS margin 44.5% 364.7 14.2% 15.5% 203.9 14.0% (0.3)% 81.7 (5.4)% 4.0% 0.7ppts 24.8% 5.6ppts 4.5ppts 10.4% 0.9ppts 1. On a constant currency basis 2. All figure and percentage movements from the prior year are pre-SGARA and material items, and are subject to rounding; % CFX refers to the percentage movement from the prior year on a constant currency basis TWE#7F23 Sustainability performance Cultivating a brighter future through focus on material opportunities Material topic Climate Change and Energy' Water Stewardship Health, Safety & Wellbeing Inclusion & Diversity¹ Sustainable Packaging and Circular Economy Target • 100% renewable electricity by 2024 Net zero by 2030 (scope 1 and 2) Comprehensive review of water usage and footprint at a catchment level • 10% reduction in Serious Safety Incident Frequency Rate (SIFR) • 50% women in senior leadership by 2025 • 42% female representation overall by 2025 100% of packaging to be recyclable, reusable or compostable by the end of 2022 • 100% of packaging to comprise 50% recycled content by 2025 Collaborate with glass and carton partners on a closed loop packaging solution by 2025 F23 Progress² Renewable electricity usage -15%, 4.5MW of capacity active in Australia, including Australia's largest winery solar installation • Net Zero roadmap developed, with first phase focused on lighting upgrades and efficiency projects • Developed new strategy, Treasuring Water, informed by the F22 global review of water management • Committed to installing smart water meter sites in high and medium risk catchments by F25 • F22 SIFR 0.2 (down 1.2ppts), supported by significant focus on safety culture campaigns including leader-led change campaign Build Safe Together and a range of mental health initiatives • 44.3%, down 0.6ppts 42.8%, up 0.9ppts Good progress despite missing commitment on 2022 target; focus to shift to collaborative solutions for problematic packaging materials to achieve 100% by 2025 Working with suppliers to obtain and improve packaging data and influence their use of recycled materials • Closed loop carton program implemented at TWE Barossa, complementing existing programs in glass; recycling at site >97% 1. 7 2. Results pending finalisation of F23 Sustainability Report and assurance Detailed information will be available in the F23 Sustainability Report, which will be released in October 2023 TWE#8Consumer trends • Premiumisation is continuing, with Luxury trends remaining strong and the Premium segment resilient Long-term category trends are continuing to support wine category premiumisation through the current macro cycle - Linkage to cultural trends, holistic end to end experiences and the emergence of 'better for you' alternatives remain important category drivers. Innovation and investment are key to retaining brand strength Luxury wine consumption remains strong, with market value growth observed in a number of TWE's key markets in CY221 - - Asia (ex-China) +10%, US +2%, Australia +11%, UK +11% Mainland China declined significantly due to impacts from the pandemic The Premium wine segment remains resilient, with market value and volume trends reflecting slight declines to modest growth over the past year 52-week Premium segment performance² Australia (0.1)% United Kingdom (3.9)% United States (0.4)% Volume growth % Value growth % 1.8% 1.9% 3.4% 1. IWSR 2023, still and sparkling wine only, portfolio price points per IWSR segmentation 2. 8 Australia: Circana Scan Data, AU Weighted Market, $10-$29.99, MAT to 02/07/23; United Kingdom: Nielsen Grocery Multiples, 75CL Light Wine, £5.01-£15, MAT to 22/07/23, United States: Circana Market Advantage, Total MULO+C, $8-$20 Table & Sparkling, 52 weeks ending 02/07/23 TWE#9Luxury portfolio Our strong Luxury portfolio momentum continued in F23, led by Penfolds and Treasury Americas Another year of exceptional performance for Penfolds in F23 across a number of global markets 15%+ NSR growth in each of Asia, Australia and EMEA Delivered double-digit penetration growth globally across the target account universe in priority markets Portfolio expansion across the multi-COO portfolio Treasury Americas continues to build its outstanding luxury platform, ahead of increased availability from F25 - Double digit price increases delivered within several brands including Stags' Leap and Beaulieu Vineyard Increased breadth and quality of distribution in a year of reduced portfolio availability Cellar door and wine club NSR grew 10% 6 Anfolds Grange Beby WARSTY FRANKFAS BERINGER PRIVATE RESERVE BV GEORGES DE LATOUR Mays Leup The Lap Etude Pinot No TWE#10Premium portfolio Continuing to invest behind our priority Premium brands to deliver growth A number of Premium portfolio brands continued to deliver top-line growth in F23, supported by innovation F23 NSR +17% this little pig went t As they love a party partied together into the n squealing pig rosé fly with pride Sydney proud partner Pride 2021 The new 19 Crimes Classic tier brand platform will launch globally throughout 1H24 FOLLOW THE RULES. ACT YOUR AGE CALL IT A NIGHT. OR DON'T. Squealing Pig is building momentum in a number of key global markets MATUA F23 NSR +11% Matua's global NSR grew again in F23, the third consecutive year of double-digit growth for the brand 10 10 19 Crimes. 19 Crimes. 00 OBEDIENCE GETS YOU WHERE Leveraging the 19 Crimes franchise assets - thematic, label and faces - to recruit consumers#11Treasury Premium Brands Focused on delivering margin accretive growth, led by the Premium portfolio Evolution of TPB division volume and portfolio premiumisation Vision 3 TREASURY PREMIUM BRANDS To bring the pleasure of premium wine to more people on more occasions 48% 52% 58% 61% Three-year volume CAGR Priority Premium portfolio²: +25% 18.4 17.8 16.0 14.3 Commercial portfolio: -14% F20 F21 F22 F23 Volume (m 9le) Luxury & Premium % NSR Growth drivers • Take priority brands global and accelerate growth in new markets and channels Drive category leading innovation Optimise cost base F23 portfolio composition and long-term outlook NSR 7% 39% Target EBITS Mid-teens (revised)1 margin 11 = 2. 12 Target EBITS margin has been revised from previous 'high teens' ambition Includes 19 Crimes, Squealing Pig, Pepperjack, St Huberts The Stag and T'Gallant • Volume ■ Premium Commercial • Portfolio mix expected to strengthen over time, reflecting the focus on delivering top-line growth for the priority Premium brand portfolio Commercial portfolio volumes are expected to continue their decline, in line with general segment trends 42% 57% ■Luxury 54% TWE#1212 Treasury Premium Brands Setting TPB up for future success by enhancing operational efficiency and strategic flexibility Key organisation and Commercial wine supply chain initiatives 1 Initiative Adjust operating model and organisation structure Actions • Implement re-designed sales, marketing and support model • Better align resources to increase focus on priority brands Timing • ⚫ Completed 4Q23 - 2 Implement changes to the Commercial wine supply chain 3 Divest and/or rationalise selected assets • Transition Commercial wine production to third-party model • Reduce Commercial intake from grower and bulk wine sourcing arrangements • Closure of the Karadoc Commercial winery • Divestment of Commercial vineyards, including associated water rights • • • Arrangements confirmed, commencing with the 2024 Australian vintage • To be implemented throughout F24 Initiatives designed to deliver the following benefits: Mitigate the impact to rising cost of goods as a result of reduced Commercial portfolio volumes - Deliver variability in the cost base - - Reduce Treasury Premium Brands exposure to the Commercial wine segment - Further long-term strategic flexibility and optionality • Total net program cost of up to $90m, inclusive of $30m of cash costs, expected to be incurred through to the end of F24 with program benefits expected to exceed the cash cost Continuing to assess additional asset and brand portfolio optimisation initiatives TWE#13TREASURY WINE ESTATES Financial Performance Matt Young Chief Financial Officer VENTURE BEYOND#14Key measures of performance' Group NSR (A$m) and NSR per case 109.7 1. 14 97.3 Group EBITS (A$m) and EBITS margin 79.8 81.9 83.8 23.5% 21.1% 19.3% 19.9% 2,832 665 2,650 2,570 2,477 2,423 69% 71% 77% 83% 85% 31% 29% 23% 17% 15% 24.1% 583 513 510 524 F19 F20 F21 F22 F23 F19 F20 Commercial Luxury/Premium NSR per case Return on Capital Employed (ROCE) 13.6% 11.3% 10.8% 10.7% 10.2% F21 F22 F23 EBITS Margin (%) EBITS (A$m) Leverage (Net Debt to EBITDAS) 1.8x 2.1x 1.6x F21 F22 F23 F19 F20 F21 2 F19 F20 All figures and calculations are subject to rounding 1.9x 2.0x 1.8x Target range through the cycle 1.5x F22 F23 TWE#15Revenue growth management Price increases successfully implemented across several Luxury and Premium portfolio brands¹ Penfolds • Our portfolio contains a number of growing Premium and Luxury brands +9% Treasury Premium Brands +6% +9% Targeted price increases were successfully delivered in F23 across all divisions, supporting NSR per case and margin growth The benefits of revenue growth management are expected to support future top-line growth and margin expansion singoles BIN 407 BERNET SAUVIGNON Taking price on supply constrained Luxury cabernet Treasury Americas 19 Crimes. Price increases in EMEA across the Premium portfolio Stags Leap +17% Cabernet Sauvigne NAPA VALLEY 125TH ANNIVERSARY OF QUE FIRST VINTAGE APA VALLEY Bambou Kineyard NCE CABERNET BV 1900 +10% CHT MATUA SAUVIGNON BLANC MARLBOROUGH, NEW ZEALAND +20% 2016 SAUVIGNON Price increases implemented on fast growing Premium and supply constrained Luxury brands RRP change shown for Penfolds, Stags' Leap and Beaulieu Vineyard Change in average scan price shown for Premium brands (19 Crimes and Squealing Pig, UK Nielsen 12 weeks ending 29/7/23; Matua, US IRI Market Advantage, MAT ending 2/7/23) TWE 1. 15#16Acquisitions Business optimisation 1. 2. 16 Material items TPB operating model and Australian Commercial wine supply chain initiatives the key driver in F23 Material Items Benefits Benefits from Projected one-off cost at inception Total cost to date Recognised in F23 Status TPB operating model and Australian Commercial wine supply chain Announced 24 May 2023 Enhance operational and strategic flexibility to enable continued growth of TPB's Premium and Luxury Portfolio F24 $(90.0)m' $(128.1)m $(128.1)m To complete in F24 Divestment of US brands & assets Announced 17 February 2021 Enable prioritisation of premium focus brand portfolio as driver of Americas regional performance F21 $(100.0)m $(54.4)m² $34.2m Complete Supply chain restructure Announced 13 August 2020 Overheads - $35m Supply Chain - $90m F21 $(35.0)m $(43.2)m $(9.5)m Complete F23+ Acquisition of Chateau Lanessan Announced 18 August 2022 Acquisition of Frank Family Vineyards Announced 18 November 2021 Total Material Items (pre-tax) Total Material Items (post-tax) Doubles Penfolds sourcing and production capacity in France 1H23 $(6.0)m $(5.4)m $(5.4)m To complete in 1H24 Complements the Treasury Americas Luxury portfolio and supports premiumisation, growth and margin expansion 1H22 $(18.0)m $(13.2)m $(0.4)m Complete $(109.2)m $(76.0)m Total Material Items cash flow Program being executed across F23 and F24, includes the expected gain on divestment of Australian Commercial vineyards in F24 Includes the gain on divestment of surplus US supply chain assets in 1H23 $34.5m TWE#1717 Balance sheet¹² • Net assets increased $89.9m on a reported currency basis in F23 Adjusting for the movement in foreign exchange rates, net assets increased by $3.5m Key drivers of the increase in net assets include: - Increased working capital of $240.1m, driven by higher Inventory and Receivables - Increase in Property, Plant & Equipment of $55.2m following the acquisition of Chateau Lanessan and a previously leased vineyard in the US - Partly offset by an increase in Net Borrowings³ of $128.6m A$m F23 30-Jun-23 F22 30-Jun-22 Cash & cash equivalents 565.8 430.5 Receivables 612.9 564.4 Current inventories 990.3 947.9 • Non-current inventories 1,175.3 1,063.6 Property, plant & equipment 1,576.8 1,521.5 Right of use lease assets 389.7 435.3 • Agricultural assets 44.8 32.9 Intangibles 1,426.7 1,399.8 Tax assets 190.9 163.5 Assets held for sale 32.9 35.6 Other assets 85.2 68.7 Total assets 7,091.3 6,663.7 Payables 709.7 747.2 Interest bearing debt 1,388.6 1,064.7 Lease liabilities 548.9 609.0 Tax liabilities 401.7 347.2 Provisions 106.7 81.0 Other liabilities Total liabilities 56.8 25.6 3,212.4 3,878.9 2,874.7 3,789.0 Net assets 1. Unless otherwise stated, balance sheet percentage or dollar movements are from 30 June 2022 and on a reported currency basis. Working capital balances may include items of payables and receivables which are not attributable to operating activities 2. 23 3. Interest bearing debt includes fair value adjustments related to derivatives that are in a fair value hedge relationship on a portion of US Private Placement notes: F23 $ (20.3)m, F22 $ (11.3)m TWE#18Inventory analysis Inventory at book value split by price segment 1,2 $990.3m $947.9m 45% 41% 43% 41% $1,175.3m $1,063.6m 66% 72% 28% 22% $2,165.5m $2,011.5m Total Luxury $1,230m 57% 57% (F22: $1,151m) • Total inventory volume declined 4% versus the pcp • Total inventory value increased 8%: Total Premium $737m 34% 32% (F22: $637m) • Total Commercial $198m 16% 13% 9% 11% 6% 6% (F22: $223m) F23 F22 F23 F22 current current non non F23 Total F22 Total inventory inventory current current inventory inventory inventory inventory Commercial Premium Luxury - Current inventory increased $42.4m to $990.3m, driven by strong expected demand for TWE'S Luxury portfolio - Non-current inventory increased $111.7m to $1,175.3m, reflecting higher Premium inventories due to the moderation of Premium portfolio sales performance, which will be rebalanced through future vintage intakes Luxury inventory increased 7% to $1,230.1m: - Total Luxury inventory volume declined 5% following the 2023 Australian vintage • In F24, mix adjusted COGS per case are expected to remain broadly in line with F23 1. 18 2. Inventory composition subject to rounding. Totals based on sum of Non-Current and Current Inventory TWE participates in three price segments: Luxury (A$30+), Premium (A$10-A$30) and Commercial (below A$10). Segment price points are retail shelf prices TWE#1919 . Cash conversion was 60.6% in F23: - Excluding the net change in non-current Luxury and Premium inventory, cash conversion was 76.2%, below TWE's annual target of 90% or higher, reflecting the timing of shipments in Asia in 4Q23 in addition to the timing of supplier payments and promotional spend in Treasury Americas and Penfolds - TWE expects cash conversion to be delivered in line with the annual target in F24 Material item cash flows includes proceeds from the sale of surplus supply assets in the US, partly offset by costs. associated with the Treasury Premium Brands operating model and restructuring of the Australian Commercial wine supply chain Cash flow and net debt¹ A$m (unless otherwise stated) EBITDAS F23 F22 730.8 672.3 Change in working capital (274.9) 34.0 Other items (12.8) (5.0) • Net operating cash flows before financing costs, tax & material items 443.1 701.2 Cash conversion 60.6% 104.3% Payments for capital expenditure² (141.2) (112.3) Payments for subsidiaries (55.8) (439.6) Proceeds from sale of assets 22.7 11.1 Cash flows after net capital expenditure, before financing costs, tax & material items 268.8 160.6 Finance costs paid (73.8) (66.9) Tax paid (69.8) (95.5) Cash flows before dividends & material items 125.3 (1.8) Dividends/distributions paid (245.4) (202.1) Cash flows after dividends before material items (120.2) (203.9) Material item cash flow 34.5 155.2 On-market share purchases (21.9) (17.3) Total cash flows from activities (before debt) (107.6) (66.0) Net proceeds from borrowings 240.1 30.6 Total cash flows from activities 132.4 (35.4) Opening net debt (1,254.3) (1,057.7) Total cash flows from activities (above) (107.6) (66.0) Lease liability additions (27.9) (14.7) Lease liability disposed 44.0 6.0 Debt revaluation and foreign exchange movements (40.4) (122.0) (Increase) Decrease in net debt (131.9) (196.6) Closing net debt³ (1,386.2) (1,254.3) 123 2. All cash flow percentage or dollar movements from the previous corresponding period are on a reported currency basis. Capital expenditure is net of proceeds from the disposal of lease assets: F23 $107.9m, F22 $nil. 3. Net debt excludes fair value adjustments related to derivatives in a fair value hedge relationship on a portion of US Private Placement notes: F23 $(20.3)m, F22 $ (11.3)m. TWE#20Capital expenditure - - Capital expenditure (capex) $141.2m in F23: Maintenance & replacement capex of $102.1m, includes step-up in sustainability investment with significant implementation of solar technology in Australia and California Acquisition of previously leased vineyard in the US of $25.4m - Growth capex of $13.7m, including investment in low/no alcohol wine production technology and expansion of operations in France Ongoing expectation for maintenance and replacement capex of approximately $100m A$m F23 F22 • Wine making equipment and facilities 31.0 24.0 Vineyard redevelopments 22.4 22.4 Sustainability 21.1 4.9 Technology 12.0 10.4 Oak purchases 7.6 3.6 Other capex 8.0 5.3 Maintenance and replacement capex 102.1 70.6 Vineyard purchase' 25.4 - Growth capex 13.7 41.6 • Capex 141.2 112.2 Net lease liability movement (16.1) 8.7 20 20 1. Net of proceeds from the disposal of lease assets: F23 $107.9m, F22 $nil. TWE#21Capital management • Efficient and flexible investment grade capital structure retained: - Net debt / EBITDAS¹ 1.9x at F23, up from 1.8x in the pcp and within the target 1.5x - 2.0x range - Flexibility to support continued investment in growth and the delivery of shareholder returns Total available liquidity $1.4bn, comprising cash $565.8m and undrawn committed facilities of $800.9m Group cost of funds are expected to rise modestly in F24, supported by the high fixed ratio of gross debt - approximately 75% fixed (F23: 93%) Strong capital and liquidity position enabling the continued delivery of dividends - F23 final dividend of 17.0 cents per share, fully franked - Full year payout of 35.0 cents per share, or 67% of NPAT, at the upper end of TWE's long-term dividend policy² and an increase of 12.9% versus the pcp A$m 700 600 500 400 300 200 100 1. 21 2. Debt Maturity Profile USPP Notes Asian Syndicate Facility Bilateral Facilities F24 F25 F26 F27 F28 F29 F30 F31 F32 F33 Ratio of total Net Borrowings to last twelve-month EBITDAS, includes capitalised leases in accordance with AASB16 Leases. Adjusted to include last twelve months EBITDAS for Frank Family Vineyards TWE targets a dividend payout ratio of 55-70% of NPAT (pre-material items and SGARA) over a fiscal year F34 F35 TWE#22TREASURY WINE ESTATES Divisional Performance Tom King Managing Director, Penfolds Ben Dollard President, Treasury Americas Peter Neilson Managing Director, Treasury Premium Brands EST 1884 FRANK FAMILY VINEYARDS RAVELERS WELCOME-#2323 Penfolds The strong momentum in building distribution and growing consumer demand continues, globally Performance summary' ⚫ EBITS increased 15.5% and EBITS margin increased 0.7 ppts to Reported Currency Constant Currency A$m F23 F22 % F22 % • Volume (m 9Le) 2.3 2.2 7.1% 2.2 7.1% NSR 819.7 717.3 14.3% 720.2 13.8% ANZ 235.9 199.2 18.4% 199.1 18.5% Asia 467.4 407.2 14.8% 407.0 14.8% Americas 51.5 54.3 (5.2)% 58.7 (12.4)% EMEA 65.0 56.6 14.9% 55.3 17.4% NSR per case (A$) 354.4 332.2 6.7% 333.5 6.3% EBITS (A$m) 364.7 319.3 14.2% 315.7 15.5% EBITS margin (%) 44.5% 44.5% (0.0)ppts 43.8% 0.7ppts F23 Luxury and Premium contribution to division NSR 100% Unchanged • 44.5%: - Volume and NSR increased 7.1% and 13.8% respectively driven by continued strong momentum in Asia, EMEA and Australia, the successful launch of One by Penfolds and growth in the multi-COO portfolio NSR per case increased 6.3%, reflecting improved mix and price increases on Luxury Cabernet Bins Trends for distribution and volume growth are expected to remain consistent across Penfolds priority growth markets in F24, with EBITS margin expected to remain stable • TWE notes the continued improvement in Australian and Chinese relations, which may have the potential for a future review of tariffs on Australian wine. In light of this, Penfolds will take a measured approach to phasing of shipments across all markets in order to retain the flexibility of its global distribution and pricing model, which is planned to result in EBITS being weighted to the second half in F24 1. Unless otherwise stated, all figures and percentage movements are stated on a constant currency basis versus the prior corresponding period and are subject to rounding TWE#24Penfolds Progression against F23 strategic priorities 1 Scale Penfolds luxury credentials to recruit and re-recruit consumers CEL Penfolds welcomes NIGO as its first creative partner 24 24 Re-corking clinics; engaging with collectors passionate about Penfolds and unique experiences Renfeldts BIN 380 Ringold's 389 CHEENWAY WHINGS 3000 2 Grow global distribution and availability Continuing to execute Penfolds three-phase distribution build playbook and strategy: (i) Build target account universe and ideal range (ii) Sell in to grow distribution and availability (iii) Drive in store execution to accelerate rate of sale F23 distribution growth across target universe Outlet growth Market Asia Singapore 15% Hong Kong 2% Malaysia 21% Thailand 21% 富贵安康 吉祥如意 Market Listing growth Renfolds Other key Australia 7% markets Enjoy United Kingdom 105% United States 1% Luxurious gifting formats leading the way during the Lunar New Year period TWE#2525 Penfolds Progression against F23 strategic priorities (continued) 3 Optimise the portfolio for long term growth Enjoy Responsibly DISCOVER THE PENFOLDS COLLECTION Renfolds. BIN 389 CABERNET SHIRAZ Sengoles Singles FWT 585 CABERNET SAUVIGNON/MERLOTH Pengfolds CWT 521 CHINESE WINEMAKING TRIAL CABERNET SAUVIGNO MARSELAN 2020 BIN 600 CALIFORNIA CABERNET SHIRAZ VENTURE BEYOND VOLEUR CRINE 2021 INFOLDS WI INFOLDS WI ONE ONE Bapolis. ONE Insolits TEL IN FOUGE HANCE CREINET SAUVIGNON CHINA RED BLEND CALFORNIA 208 2023 is a milestone year for the Penfolds Collection, with the release of wine from Australia, the US, France and for the first time, China The launch of One by Penfolds was a key highlight in F23, with 100k+ cases sold in China and excellent distribution in e-commerce and retail TWE#26Treasury Americas Positive Luxury execution in a year of constrained availability, laying the platform for growth from F25 Performance summary¹ Reported Currency Constant Currency A$m F23 F22 % F22 % Volume (m 9Le) 5.5 7.3 (25.4)% 7.3 (25.4)% % Organic² (25.4)% ⚫ EBITS declined 0.3% and EBITS margin improved 4.5ppts to 24.8%; on an organic basis EBITS declined 10.3%: 1 NSR 820.8 929.6 (11.7)% 1,005.8 (18.4)% (23.1)% 820.8 929.6 (11.7)% 1,005.8 (18.4)% (23.1)% ANZ Asia Americas EMEA NSR per case (A$) 150.0 126.7 18.4% 137.1 9.4% 3.1% EBITS 203.9 178.9 14.0% 204.5 (0.3)% EBITS margin (%) 24.8% 19.2% 5.6ppts 20.3% 4.5ppts (10.3)% 3.2ppts F23 Luxury and Premium contribution to division NSR 94% 1ppts vs. pcp Volume and NSR declined 25.4% and 18.4% respectively, driven by Premium portfolio declines - NSR per case increased 9.4%, reflecting the portfolio mix shift towards Luxury and double-digit price increases across several brands Excluding NPD, depletions exceeded shipments by approximately 0.6m cases with increased focus on inventory management by distributors and retailers. • F24 Premium portfolio performance will be supported by the new brand platform for the 19 Crimes Classics tier and continued innovation for 19 Crimes and Matua . Availability of key Luxury portfolio brands will remain relatively constrained in F24, albeit delivering growth, ahead of a return to normalised availability in F25 • F24 EBITS margin expected to be delivered in the range of 22- 23%, reflecting higher COGS and increased brand investment 1. 2. 26 Unless otherwise stated, all figures and percentage movements are stated on a constant currency basis versus the prior corresponding period and are subject to rounding On a constant currency basis, excluding the contribution of divested and acquired portfolio brands in Treasury Americas. Refer to Supplementary Information for details TWE#2727 Treasury Americas Progression against F23 strategic priorities 1 Grow the Premium and Luxury portfolio AMEY FAMILY 878 AMILY RANK MY PRAN CID BE FRANK PAMILY PRANK FAMILY Infandel Merlot FRANK FAMILY Chardonnay FRANK PAM VINEVAR FRANK FAMILY Pinot No Beaulieu Aneyard SINCE BV 1900 100 POINTS & WINE OF THE YEAR JAMES SUCKLING, MAY/NOVEMBER 2022 Beaulieu Sineyard BV GEORGES DE LATOUR PRIVATE RESERVE CABERNET SAUVIGNON NAPA VALLEY 2019 2019 GEORGES DE LATOUR PRIVATE RESERVE CABERNET SAUVIGNON ESTATE SELECTION The CEOICES DE LATOUR Private Reserve Oberer Seasle Wisemaker vise la barrel and sitede giving it a jagge PRODUCED AND BOTTLES BEAULIE HEARLINE 12623 Frank Family Vineyards exceeded expectations in F23, with increased availability to support growth from 4Q24 BV grew NSR by 5% in F23 with release of the Georges de Latour, rated 100pts by James Suckling, a highlight TWE#28Treasury Americas Progression against F23 strategic priorities (continued) 2 Drive category leading innovation DENDROMPASO ROBLES, CALIFORNIA BY WEAVING TOGETIONALAT 28 1. 19 Crimes. PASO ROBLES TAPESTRY RED BLEND 19 Crimes. Call GOLD Ale by : 11.0% Contents: CAL CALIFORNIA Crime: SPARKLING 750 ML CALI BLANC SAUVIGNON BLANC. Tapa: Ale by cont: 12.9% Cethanhes Origin: CALIF 750 ML CAL Supported by innovation, 19 Crimes remained in growth across scan channels in F23, up 1% against the Premium segment which declined' NLINE MORE GRACEFULLY BALANCED THAN THE SUN DESIG Tapestry, a Californian red blend in the growing $20-25 price point, with the F24 focus on driving on-premise distribution IRI Market Advantage, Total MULO+C, US$8-20 Table & Sparkling, Value, 52 weeks ending 2 July 2023 TWE#29Treasury Premium Brands Continued focus on portfolio premiumisation, with priority brands in growth Performance summary' Reported Currency Constant Currency A$m F23 F22 % F22 % • Volume (m 9Le) 14.3 16.0 (10.4)% 16.0 (10.4)% ⚫ EBITS increased 4.0% and EBITS margin improved 0.9 ppts to 10.4%: NSR 782.4 829.8 (5.7)% 820.7 (4.7)% ANZ 367.2 382.1 (3.9)% 381.4 (3.7)% Asia 73.0 72.7 0.4% 73.3 (0.5)% Americas 27.4 33.8 (18.9)% 32.5 EMEA 314.8 341.2 (7.8)% 333.5 (15.5)% (5.6)% NSR per case (A$) 54.7 52.0 5.2% 51.5 6.3% EBITS 81.7 86.4 (5.4)% 78.6 4.0% EBITS margin (%) 10.4% 10.4% 0.0ppts 9.6% 0.9ppts F23 Luxury and Premium contribution to division NSR - Volume and NSR declined 10.4% and 4.7% respectively, with reduced Commercial portfolio volumes in the UK and Australia partly offset by growth for the priority Premium brand portfolio, including 19 Crimes which grew NSR 8% - NSR per case increased 6.3% reflecting price increases across select portfolio brands and improved portfolio mix - Division EBITS includes $5.9m asset sale gain • The focus on continued top-line growth of the priority Premium brand portfolio, in addition to cost optimisation initiatives, is expected to deliver modest EBITS margin growth in F23, towards the revised divisional mid-teens target (from high-teens previously) 1. 29 61% 3ppts vs. pcp Unless otherwise stated, all figures and percentage movements are stated on a constant currency basis versus the prior corresponding period and are subject to rounding TWE#3030 Treasury Premium Brands Progression against F23 strategic priorities 1 Drive category leading innovation INVITE THE WHOLE FAMILY ORDONT 卷 19 Crimes bedrinkaware.co.uk 2 Take priority brands global and accelerate growth in new markets and channels WYNNS COUNAWARRA ESTATE sha Riddoch. LIMITED RELEASE NAWARRA PXGENAL WYNNE VINTAGE 750 mL 19 Crimes NSR grew 8% in markets outside the Americas, led by EMEA where NSR was up 10% supported by outstanding brand activation Growing global distribution points and sales volume for Wynns John Riddoch through the La Place de Bordeaux ONAWARRA ESTATE T SAUVIGNON 2020 TWE#31TREASURY WINE ESTATES Outlook Tim Ford Chief Executive Officer Etude PINOT NO Carner GRACE BENOIS#3232 F24 Group priorities Our priorities remain consistent and clearly focused on progression towards our TWE 2025 strategy TWE Divisional priorities • • The world's most admired premium wine company Legolas Attract new consumers • Grow global distribution and availability Optimise portfolio for long- term growth, including multi-coo T TREASURY AMERICAS Grow the Premium and Luxury portfolios Drive category leading innovation 3 TREASURY PREMIUM BRANDS • Take priority brands global and accelerate growth in new markets and channels • Drive category leading innovation · Optimise asset base Group wide priorities תח Elevate our culture and talent Invest in technology as a growth platform Pursue global innovation and inorganic opportunities Embed sustainability throughout TWE TWE#3333 Summary and outlook In F23, we delivered margin accretive earnings growth while navigating the tightening economic environment across a number of key markets and making significant progress in strengthening our operating model for the future We are well positioned to deliver growth in F24 with continued strong trends for Luxury wine and resilient category dynamics for Premium wine supported by the strength of our global brand portfolio, our diversified business model and the benefits of key asset base and cost optimisation initiatives Our financial objective remains to deliver sustainable top-line growth and high-single digit average earnings growth over the long-term¹ 1. Organic, pre material items and on a constant currency basis. TWE#34TREASURY WINE ESTATES Questions#35TREASURY WINE ESTATES Supplementary Information REFRAME COONAWARRA ESTATE WYNNS SHIRAZ X RIESLING REFRAMED 300 2021#3636 Contribution of acquired and divested brands - Treasury Americas F22 Divested US Frank Family brands¹ Vineyards² F23 Frank Family Vineyards³ Volume (m 9le) 0.2 0.1 0.2 NSR (A$m) 21.9 42.9 97.3 EBITS (A$m) 5.6 17.3 41.4 Unless otherwise stated, all figures are pre-material items and are subject to rounding. F22 metrics are presented on a constant currency basis. 1 2 3 1. F22 contribution of Provenance (divested November 2021) and Chateau St Jean (divested December 2021) F22 contribution of Frank Family Vineyards (acquired December 2021) 3. F23 contribution of Frank Family Vineyards (acquired December 2021) TWE#37Impact of foreign exchange and hedging F23 EBITS constant currency impact F24 EBITS sensitivity and risk management CFX Impact (A$m) Currency Underlying Hedging' Total Currency Pair Primary Exposure Movement EBITS Sensitivity (A$m) AUD/USD and AUD/GBP 25.2 (5.1) 20.1 Net other currencies (7.7) 1.4 (6.3) AUD/USD COGS, EBITS +1% (3.5) F23 17.5 (3.7) 13.8 AUD/GBP COGS, EBITS +1% (1.2) AUD/USD and AUD/GBP 15.0 (6.7) 8.3 CAD/USD NSR +1% 0.6 Net other currencies (15.2) 0.0 (15.2) F22 (0.2) (6.7) EUR/GBP NSR, COGS +1% 0.7 (6.9) • $13.8m favourable constant currency impact (comprising transaction and translation impacts) TWE has a diversified portfolio of currency exposures where production cost currencies and revenue generating currencies are not matched - $29.0m favourable impact from depreciation of the AUD relative to the USD, partially offset by a $3.8m adverse impact from appreciation of the AUD relative to the GBP and $7.7m adverse impact reflecting movements in TWE's other key currency exposures² - $3.7m relative adverse impact from hedging in F23 versus the prior year (Total $3.6m realised loss in F23 vs $0.1m realised gain in the prior year) • The sensitivity of EBITS to a 1% change in primary cost and revenue currencies is shown in the accompanying table (which excludes the potential impact of currency hedging) • TWE maintains an active foreign exchange risk management strategy, focused on the transactional exposures associated with the Commercial and Premium price segments: - AUD/GBP 61% of F24 exposure protected against appreciation of the exchange rate above 0.56 AUD/USD: 69% of F24 exposure protected against appreciation of the exchange rate above 0.73 1. CFX hedging impact relative to the prior year 37 2. USD relative to the CAD and NZD in Treasury Americas, GBP relative to the EUR, SEK and NOK in Treasury Premium Brands, AUD relative to Asian currency pairs in Penfolds TWE#38Reconciliation of key performance measures Metric (A$m unless otherwise stated) EBITS EBITDAS Management calculation Statutory net profit Income tax expense Net finance costs Material items (gain) / loss F23 F22 254.3 263.2 82.8 109.7 72.7 71.4 109.2 45.5 SGARA (gain) / loss 64.5 33.9 EBITS 583.5 523.7 EBITS 583.5 523.7 Depreciation & Amortisation 147.3 148.6 EBITDAS 730.8 672.3 Statutory net profit 254.5 263.2 Material items (gain) / loss 109.2 45.5 (33.2) (10.5) 38 2. 12 EPS¹ Tax on material items SGARA Tax on SGARA 64.5 33.9 (18.9) (9.5) NPAT (before material items & SGARA) 376.1 322.6 Weighted average number of shares (millions) 721.8 721.8 EPS (cents) 52.1 44.7 EBITS (LTM) 583.5 523.7 Net assets 3,878.9 3,789.0 SGARA in inventory (37.8) (45.0) Net debt 1,386.2 1,254.3 Capital employed - Current year 5,227.4 4,998.3 ROCE Net assets (CFX) 3,875.7 3,690.0 SGARA in inventory (CFX) (44.9) (30.3) Net debt (CFX) 1,285.2 1,130.0 Capital employed - Prior year (CFX) 5,116.0 4,789.7 Average capital employed 5,171.7 4,894.0 ROCE² 11.3% 10.7% TWE Excludes earnings attributable to non-controlling interests. F22 Includes impacts from divested and acquired portfolio brands in Treasury Americas#3939 2023 Fact Book TREASURY WINE ESTATES FACT BOOK TREASURY WINE ESTATES ONE ONE ONE ONE For further information on Treasury Wine Estates, please refer to our 2023 Fact Book, which is available at tweglobal.com CENET TWE#40Definitions Term Definition Cash conversion COO CODB COGS Commercial wine DTC EPS EBITDAS EBITS EBITS Margin Exchange rates Luxury wine Material items Net debt to EBITDAS NPD Net operating cash flows before financing costs, tax and material items divided by EBITDAS Country of origin Cost of doing business. Gross profit less EBITS. Excludes non-cash items as well as tax, the cost of the Group's capital structure and non-operating transactions as a measure of underlying operational costs Cost of goods sold Wine that is sold at a price point below A$10 (or equivalent) per bottle Direct to consumer Earnings per share Earnings before interest, tax, depreciation, amortization, material items and SGARA Earnings before interest, tax, material items and SGARA EBITS divided by net sales revenue Average exchange rates used for profit and loss purposes in F23: AUD/USD 0.6732 (F22: AUD/USD 0.7258), AUD/GBP 0.5594 (F22: AUD/GBP 0.5454) Period end exchange rates used for balance sheet items in F23: AUD/USD 0.6620 (F22: AUD/USD 0.6883), AUD/GBP 0.5249 (F22: AUD/GBP 0.5677) Wine that is sold at a price point above A$30 (or equivalent) per bottle Items of income or expense which have been determined as being sufficiently significant by their size, nature or incidence and are disclosed separately to assist in understanding the Group's financial performance Ratio of Net Debt to EBITDAS includes the addition of depreciation expense attributable to capitalised leases in the period per AASB 16 Leases New product development 40 40 Wine that is sold at a price point between A$10 and A$30 (or equivalent) per bottle. Return on Capital Employed. EBITS divided by Capital Employed (at constant currency). Capital Employed is the sum of average net assets (adjusted for SGARA) and average net debt. Self-generating and re-generating assets. SGARA represents the difference between the fair value of harvested grapes (as determined under AASB 141 Agriculture) and the cost of harvest. The fair value gain or loss is excluded from Management EBITS so that earnings can be assessed based on the cost of harvested grapes, rather than their fair value. This approach results in a better reflection of the true nature of TWE's consumer branded and FMCG business and improved comparability with domestic and global peers. NSR Net sales revenue Premium wine ROCE SGARA TWE