Investor Presentaiton
Impact 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
TWEView entire presentation