Treasury Wine Estates Limited · ASX:TWE

Treasury Wine Estates — FY2025 Earnings Presentation

34 slides from Treasury Wine Estates's earnings presentation, Aug 13, 2025

  1. Slide 1: 2025 Annual Results Investor and Analyst Presentation

    For personal use only 13 August 2025 ASX ANNOUNCEMENT 2025 Annual Results Investor and Analyst Presentation Enclosed are the presentation materials for the investor and analyst webcast and conference call to be hosted by Treasury Wine Estates commencing at 10:00am (AEST) on 13 August 2025. Links to

  2. Slide 2: F25 Full Year Results

    rsonal use only F25 FULL YEAR RESULTS 13 August 2025

  3. Slide 3: Important information

    Important information All references to ‘$’ throughout this presentation refer to Australian Dollars, unless marked otherwise. This presentation is in summary form and is not necessarily complete. It should be read together with the Company’s Annual Report for 30 June 2025 rsonal use only including

  4. Slide 4: Introduction

    rsonal use only Introduction 3

  5. Slide 5: Key Messages

    Key Messages • Penfolds and the full year contribution of DAOU drove TWE’s Luxury-led growth in F25: – NSR up 7.2% to $2.9bn and EBITS up 17.0% to $770.3m – Organic NSR down 1.1%, driven by Premium and Commercial portfolio declines rsonal use only • Penfolds delivered another strong result, with a s

  6. Slide 6: F25 Financial Results

    F25 Financial Results1,2,3 Improvement delivered across all key financial metrics NSR EBITS NPAT rsonal use only $2.9bn 7.2% $770.3m 17.0% $470.6m 15.5% NSR per case EBITS margin EPS $138.1 10.2% 26.2% 2.2 ppts 58.0 cps 10.8% Cash conversion ROCE5 Luxury contribution 87.4% 5.4 ppts 11.9% 0.5 ppt to

  7. Slide 7: F25 Divisional Performance

    F25 Divisional Performance NSR and EBITS growth driven by Penfolds and DAOU rsonal use only % Metric1, 2 F25 % pcp % CFX F25 % pcp % CFX F25 % pcp % CFX Organic3 NSR (A$m) 1,073.9 7.3% 6.8% 1,170.7 16.8% 15.1% (4.9)% 693.5 (5.9)% (7.2)% NSR per case (A$) 370.7 11.8% 11.2% 184.9 10.7% 9.2% 1.8% 57.5

  8. Slide 8: Cultivating a brighter future

    Cultivating a brighter future Continuing to progress in responding to material opportunities Material topic Target F25 Progress1 Climate Change ● 100% renewable electricity by 2024 ● Operating on 100% renewable electricity globally3 rsonal use only and Energy ● 34 on-site solar installations complet

  9. Slide 9: Financial Performance

    rsonal use only Financial Performance

  10. Slide 10: Key measures of performance

    Key measures of performance1 Group NSR (A$m) and NSR per case Group EBITS (A$m) and EBITS margin 26.2% 24.1% 24.0% 138.1 21.1% 125.2 19.9% 770 109.7 97.3 rsonal use only 658 83.8 583 2,938 510 524 2,740 2,570 2,478 2,423 37% 39% 49% 55% 43% 40% 44% 42% 38% 34% 23% 17% 15% 13% 11% F21 F22 F23 F24 F25

  11. Slide 11: Material items

    Material items Projected Projected non- Recognised Recognised in Total projected A$m cash cash Comment prior to F25 F25 one-off cost component component Treasury Premium Brands operating Now expected to complete in F26, rsonal use only model and Australian Commercial (113.9) 7.5 (90.0) (25.0) (65.0)

  12. Slide 12: Balance sheet

    Balance sheet1,2 F25 F24 A$m 30-Jun-25 30-Jun-24 Cash & cash equivalents 427.7 458.1 • Net assets increased $190.9m on a reported currency basis Receivables 745.5 694.9 in F25; adjusting for the movement in foreign exchange rsonal use only Current inventories 985.4 1,020.5 rates, net assets increase

  13. Slide 13: Inventory analysis

    Inventory analysis Inventory at book value by price segment1,2 $985.4m $1,020.5m $1,495.3m $1,339.1m $2,480.7m $2,359.6m • Total inventory volume decreased 9% versus the pcp rsonal use only • Total inventory value increased 5% – Current inventory decreased $35.1m to $985.4m, 57% 57% Total Luxury ref

  14. Slide 14: Cash flow and net debt

    Cash flow and net debt1 A$m (unless otherwise stated) F25 F24 EBITDAS 936.8 813.3 Change in working capital (98.5) (138.5) • Cash conversion was 87.4% in F25: Other items (19.1) (8.3) – Excluding the change in non-current Luxury and Net operating cash flows before financing costs, tax & material ite

  15. Slide 15: Capital expenditure

    Capital expenditure A$m F25 F24 • Capital expenditure (capex) of $137.1m in F25: Wine making equipment and facilities 33.2 34.3 – Maintenance & replacement capex of $86.7m, rsonal use only Vineyard redevelopments 16.2 19.6 including focus on ongoing upgrades to wine Sustainability 13.7 14.0 making e

  16. Slide 16: Capital Management

    Capital Management • Investment grade capital structure remains a key Debt maturity profile2 financial strength: rsonal use only 600 – Net Debt / EBITDAS 1.9x at F25 (down 0.1x) and USPP Notes back within the target 1.5-2.0x ‘through the cycle’ Asian Term Loan range Drawn Bilateral Facilities – Tota

  17. Slide 17: On-market share buyback

    On-market share buyback TWE Capital Management Framework • On-market share buyback of up to $200m in F26 Investment grade credit profile • Reflects the Board’s confidence in TWE’s Luxury-led rsonal use only ▪ Target Net debt to EBITDAS of 1.5-2.0x through the cycle strategy, financial strength and l

  18. Slide 18: Divisional performance

    rsonal use only Divisional performance 1 7

  19. Slide 19: Penfolds

    Penfolds Strong growth led by return of Australian COO to China, in line with expectations Reported Currency Constant Currency Performance summary1 rsonal use only F25 F24 % F24 % 2.9 3.0 (4.0)% 3.0 (4.0)% • EBITS increased 13.8% and EBITS margin increased 2.7ppts to Volume (m 9Le) 44.4%: 1,073.9 1,

  20. Slide 20: China Update

    China Update One year on from the return of the Australian COO portfolio to China Market • China wine category value growth in F25 versus the pcp; offline retail1 (4.9)%, e-commerce +15.9%2 conditions • Luxury wine (RMB 150+) driving category growth, with offline retail1 and e-commerce2: +5.4% and +

  21. Slide 21: Penfolds

    Penfolds A proven track record of consistency and growth through periods of significant change Penfolds EBITS and EBITS margin performance (F19-25) rsonal use only Reallocation focus to Asia ex- Removal of China tariffs, return of Pandemic and China tariffs China, Australia and EMEA Australian COO p

  22. Slide 22: Penfolds

    Penfolds Continuing to build Penfolds brand strength, globally, as measured by Kantar 1 rsonal use only • Over the past year, Penfolds has achieved Demand Power significant gains in its Demand Power across key A measure of a brand’s inherent market strength—how much share it markets: could command i

  23. Slide 23: Treasury Americas

    Treasury Americas Growth driven by DAOU, moderated by weaker category trends through 2H25 Reported Currency Constant Currency Performance summary1 rsonal use only F25 F24 % F24 % 6.3 6.0 5.5% 6.0 5.5% • EBITS increased 31.9% and EBITS margin increased 3.3ppts to Volume (m 9Le) 26.4%: 1,170.7 1,002.3

  24. Slide 24: DAOU

    DAOU Progress against acquisition business case DAOU value growth versus US Luxury wine market since acquisition (Circana)1 Base business plan 12.6% Top-line: deliver average low double-digit NSR growth over the Luxury (US$20+) medium-term DAOU rsonal use only • NSR grew 8.2%3 in F25, with top-line

  25. Slide 25: Treasury Premium Brands

    Treasury Premium Brands Cost improvement supporting 2H25 performance Reported Currency Constant Currency Performance summary1 rsonal use only F25 F24 % F24 % 12.1 12.9 (6.3)% 12.9 (6.3)% • EBITS declined 31.8% and EBITS margin declined 2.9ppts to Volume (m 9Le) 7.9%: 693.5 737.0 (5.9)% 747.4 (7.2)%

  26. Slide 26: Outlook & Summary

    rsonal use only Outlook & Summary 25

  27. Slide 27: F26 Expectations

    F26 Expectations TWE expects to deliver another year of EBITS growth in F26 • Low to mid double-digit EBITS growth expected, driven by increased Bin & Icon portfolio availability rsonal use only from 4Q26 and continued positive momentum throughout a number of markets in Asia – EBITS delivery is expe

  28. Slide 28: Summary

    Summary • In F25, TWE delivered growth against economic and category headwinds in a number of markets, enabled by the Luxury-led focus rsonal use only • Penfolds delivered to expectations in F25, led by the return to China for the Australian COO portfolio, and now turns its focus to building on the

  29. Slide 29: Supplementary Information

    rsonal use only Supplementary Information 28

  30. Slide 30: Impact of Foreign Currency & Hedging

    Impact of Foreign Currency & Hedging F25 EBITS constant currency impact F26 EBITS sensitivity and risk management CFX Impact (A$m) FY26 EBITS Currency Pair Primary Exposure Movement Currency Underlying Hedging1 Total Sensitivity (A$m) rsonal use only AUD/USD and AUD/GBP 12.1 (2.6) 9.5 AUD/USD COGS,

  31. Slide 31: New Operating Model - Historic financials

    New Operating Model - Historic financials Treasury Americas 1H24 2H24 F24 1H25 2H25 F25 % var. rsonal use only Volume (m 9Le) 0.4 0.8 1.3 1.1 0.8 1.9 52.8% NSR (A$m) 212.1 320.0 532.1 395.4 334.3 729.7 37.1% NSR per case (A$) 508.1 382.5 424.3 376.2 386.4 380.8 (10.3)% EBITS (A$m) 49.0 92.4 141.4 12

  32. Slide 32: Reconciliation of old to new divisional model

    Reconciliation of old to new divisional model Current operating model to 30 June 2025 New operating model from 1 July 2025 rsonal use only F24 F25 F24 F25 Volume (m 9Le) 3.0 2.9 Volume (m 9Le) 3.0 2.9 NSR (A$m) 1,001 1,074 NSR (A$m) 1,001 1,074 EBITS (A$m) 421 477 EBITS (A$m) 421 477 Luxury F24 F25

  33. Slide 33: Reconciliation of key performance measures

    Reconciliation of key performance measures Metric (A$m unless Management calculation F25 F24 otherwise stated) Net Profit After Tax attributable to shareholders of TWE 436.9 98.9 Profit / (loss) attributable to non-controlling interests (0.1) 0.1 Net profit 436.8 99.0 rsonal use only Income tax expe

  34. Slide 34: Definitions

    Definitions 9Le 9 litre equivalent case Cash conversion* Net operating cash flows before financing costs, tax and material items divided by EBITDAS CFX Constant foreign exchange rates COO Country of origin rsonal use only CODB* Cost of doing business. Gross profit less EBITS. Excludes non-cash items

Treasury Wine Estates — FY2025 Earnings Presentation on 6ix