Treasury Wine Estates Limited · ASX:TWE
Treasury Wine Estates — Investor Day (March 2023)
96 slides from Treasury Wine Estates's investor day presentation, Mar 8, 2023
Slide 1: TWE 2023 Investor Day - Napa, California
8 March 2023 ASX ANNOUNCEMENT TWE 2023 Investor Day - Napa, California Treasury Wine Estates Limited (ASX:TWE) is holding an Investor Day in Napa, California Australia commencing at 10.00am PST on Wednesday 8 March 2023 (5.00am on Thursday 9 March 2023 AEST.) Presentation materials are attached. The
Slide 2: Treasury Wine Estates Investor Day
THE Treasury Wine Estates Investor Day 8 March 2023 Napa, California 1
Slide 3: Important information
Important information 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 2022, Appendix 4D for the half year ended 31 December 2022 and other announcements lodged with the Australian Securities Exchange, which
Slide 4: Our team presenting today
OUR TEAM PRESENTING TODAY Board members in attendance Tim Ford Stuart Boxer Ben Dollard Kirsten Gray Katie Hodgson Lauri Shanahan Chief Executive Officer Chief Strategy President, Chief Sustainability and Chief People Officer and Corporate Treasury Americas External Affairs Officer Development Offic
Slide 5: Agenda
10:00am – 10:20am The Global Wine Opportunity Tim Ford 10:20am – 10:40am Treasury Americas Ben Dollard 10:40am – 11:00am Q&A 11:00am – 11:15am Break Stuart Boxer, Ben Dollard, Tom King, 11:15am – 12:15pm Enterprise Value Drivers Peter Neilson 12:15pm – 12:30pm Digital & Technology Journey Kate Whitn
Slide 6: The global wine opportunity
THE GLOBAL WINE OPPORTUNITY Tim Ford Chief Executive Officer 5
Slide 7: This is Treasury Wine Estates
THIS IS TREASURY WINE ESTATES Premium focused Acclaimed portfolio Sales in over 70 World class asset 2,500 talented team and consumer-led of premium and countries across base in internationally members with global global wine company luxury wine brands multiple distribution acclaimed wine expertise
Slide 8: Long-term investment case
LONG-TERM INVESTMENT CASE Attractive category fundamentals Best global portfolio of Premium and Luxury wine brands Winning route to market in priority markets Unparalleled global asset base and multi-COO sourcing model Strong and flexible capital structure 7
Slide 9: Our plan on a page
To be the world’s most admired premium wine company We boldly lead change in the world of wine Consumer focused Multi-regional & World class premium multi-channel OUR PLAN talent brand portfolio sales models ON A PAGE PLAN Sustainable & multi-regional sourcing & winemaking Deep, long-term partnershi
Slide 10: Executing the game plan
EXECUTING THE GAME PLAN PLAN We are at half time in our journey towards TWE 2025 Consumer focused Multi-regional & World class Sustainable & multi- Deep, long-term premium brand multi-channel talent regional sourcing & partnerships portfolio sales models winemaking & networks • Implemented brand • S
Slide 11: Financial performance
FINANCIAL PERFORMANCE NSR and NSR per case EBITS and EBITS margin 23.9% Target EBITS margin 25%+ 108.6 97.3 21.1% 19.3% 19.9% 81.9 83.8 2,649 2,570 513 510 524 2,477 +22%1 307 1,284 F20 F21 F22 1H23 F20 F21 F22 1H23 Commercial Luxury/Premium NSR per case EBITS: Other Global Markets EBITS: Mainland C
Slide 12: Our financial objective
Our financial objective is 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 11
Slide 13: Divisional growth drivers
DIVISIONAL GROWTH DRIVERS Each division will contribute differently to the delivery of our financial objective Bring the pleasure of Lead the premium wine Vision A global luxury icon market in the Americas premium wine to more people on more occasions • Grow global distribution • Grow the Premium an
Slide 14: Long-term growth opportunity in premium and luxury wine
The long-term growth opportunity in the premium and luxury wine market is significant, and we intend to lead the category, globally 13
Slide 15: Global category outlook
GLOBAL CATEGORY OUTLOOK The fundamentals of the Premium and Luxury wine segment are highly attractive Global wine category growth trends2 • Global category growth is expected to % TWE continue being led by the Premium and revenue3 Luxury segments, which are forecast to 2.9% total $132bn sales by 202
Slide 16: Premium and luxury markets
PREMIUM AND LUXURY MARKETS 1 A select number of markets matter most in the Premium and Luxury segments • The top 10 markets represent 76% of global Premium and Luxury wine consumption 35 Largest Premium and Luxury wine markets (2021) 30 • The United States is the clear leader, with 28% share of glob
Slide 17: Consumer trends
CONSUMER TRENDS Emerging consumer trends are a platform for long-term growth Unique brand propositions Wine as a refreshment Health consciousness • Consumers are looking for unique • Refreshment is a growing consumer • Health and wellness is a growing offerings and experiences driver focus, particul
Slide 18: Global influences
GLOBAL INFLUENCES Rapidly responding to an ever-evolving environment will be critical to our future success Evolving technology Digital platforms Climate and sustainability • Breakthrough technologies are • Winning on the digital shelf, as well as • Climate change will necessitate an evolving at a r
Slide 19: Our ambition
OUR AMBITION The elements that will define us as the world’s most admired premium wine company Consumer Ruthless portfolio Relentless obsession discipline innovation Fast and cost The best place Grape to glass efficient to work sustainability execution 18
Slide 20: Treasury Americas
TREASURY AMERICAS Ben Dollard President, Treasury Americas 19
Slide 21: The US is a highly attractive premium and luxury wine market
THE US IS A HIGHLY ATTRACTIVE PREMIUM AND LUXURY WINE MARKET The United States is the largest Premium The wine category is There is an opportunity to recruit the next and Luxury Wine Market in the world actively premiumising generation of American wine consumers 100 Frequency in Days per Year Retail
Slide 22: US wine market attributes
US WINE MARKET ATTRIBUTES Wine Marketplace Dominated by 70% Domestic Wine with Market Continues to Premiumise 30% Imports Driven by Italy & France 4% Italian 12% Sub $10 5% 8% 16% Imported New Zealand $10-20 30% Total US 44% 51% 48% French Wine Category 37% $20+ 40% 19% Spanish 70% Domestic Australi
Slide 23: Treasury Americas is now well positioned to win in the US
TREASURY AMERICAS IS NOW WELL POSITIONED TO WIN IN THE US Evolution of portfolio 1H20 F22 69% 81% 92% 54% 46% 31% 19% Premium & Luxury 8% Commercial Volume NSR Volume NSR Key milestones Jun-20 Sep-21 Nov-21 Jan-22 Sep-22 Cali Red Cali Rose Acquired Frank Martha’s Chard Cali Gold Most successful wine
Slide 24: Treasury Americas luxury portfolio
TREASURY AMERICAS LUXURY PORTFOLIO1 Frank Family Beaulieu Stags’ Leap Beringer Etude Penfolds Luxury portfolio Vineyards Vineyard dimensions2 • 36% division NSR • Three-year NSR CAGR: +17% Napa Valley Knights Valley Carneros Georges de Carneros Bin 704 Hero SKU Cabernet Cabernet Chardonnay Latour Ca
Slide 25: Treasury Americas premium portfolio
TREASURY AMERICAS PREMIUM PORTFOLIO1 Premium portfolio Sterling St Huberts 19 Crimes Matua Gabbiano dimensions2 Vineyards The Stag • 56% division NSR • Three-year NSR CAGR: +6% IRI Price Point (US$) $8-11, $11-15 $11-15 $8-11 $15-20 $8-11 F22 division NSR contribution 29% 9% 7% 2% 1% 3-year NSR CAGR
Slide 26: Treasury Americas growth drivers
TREASURY AMERICAS GROWTH DRIVERS Route to Market Portfolio Innovation • Top 2-5 supplier in all markets • Extensive Premium • Best in class, insights driven, within distributor network plus Luxury assortment consumer led • Strong on/off premise national • Targeting expansion • Robust culture-led and
Slide 27: Enterprise value drivers
ENTERPRISE VALUE DRIVERS Stuart Boxer Peter Neilson Chief Strategy & Managing Director Corporate Development Officer Treasury Premium Brands Ben Dollard Tom King President Managing Director Treasury Americas Penfolds 26
Slide 28: Our enterprise value drivers
OUR ENTERPRISE VALUE DRIVERS The enterprise-wide attributes that will set us apart over the long-term Consumer Brand portfolio Innovation for Outstanding obsession expansion today, tomorrow execution on and the future the physical & digital shelf 27
Slide 29: Consumer obsession
Consumer obsession CONSUMER OBSESSION Measures of Success Market leading data driven insights and tools Intimate understanding of the new, emerging and current wine consumer Recruiting consumers into the category through our brands 28
Slide 30: Younger consumers
YOUNGER CONSUMERS Consumer obsession Consumer Insights Are drinking less, Social media is a but drinking better huge part of their lives Want to explore Want brands that reflect tastes and styles their image, style, values Are culture led and Favor brands that wanting creativity are sustainable 29
Slide 31: Luxury wine consumers
LUXURY WINE CONSUMERS Consumer obsession Talkability, link to lifestyle and inspirational Consumers are looking for experiences with brands, The fast-emerging Asian Luxury brand content are important to the fast- direct-to consumer capabilities are key wine consumer emerging Asian Luxury wine consum
Slide 32: Penfolds Venture Beyond thematic
Consumer obsession PENFOLDS VENTURE BEYOND THEMATIC Venture beyond personifies Penfolds innovative spirit and desire to push the boundaries Execution embraces new luxury code – bold, playful, disruptive and culturally relevant Allows Penfolds to show up in a globally consistent way 31
Slide 33: Brand portfolio expansion
Brand portfolio expansion BRAND PORTFOLIO EXPANSION Measures of Success Unique capability to build heritage and culture-led brands Expanded presence in underweight and growth varietals, styles, price points and multi-country of origin brands Multiple global brands of scale 32
Slide 34: 19 Crimes
19 CRIMES Brand portfolio expansion Building a culture led icon Launched in North Rapid distribution and Cali tier launched in 2021 America in 2012 sales growth Over 2.5m cases globally Over 5m cases globally by F19 by F22 33
Slide 35: Innovating in the 19 Crimes classics
Brand portfolio expansion INNOVATING IN THE 19 CRIMES Leverage the 19 Crimes franchise assets – CLASSICS thematic, label and faces TIER Recruit new consumers to the category and the brand, as we have done with the Cali tiers Regain momentum in distribution and velocity 34
Slide 36: 19 Crimes
19 CRIMES Brand portfolio expansion New Global Platform Next Rebellious Enhanced Partnerships Gen Label New platform AR Experience with Global Brands 35
Slide 37: One by Penfolds
ONE BY PENFOLDS Brand portfolio expansion New culture-led tier Execution embraces Curated collection focused on recruiting luxury code – bold, of wines from new luxurians playful, disruptive Australia, France, the US and China Successfully launched Global launch early in 300k case ambition in China
Slide 38: Frank Family Vineyards
FRANK FAMILY VINEYARDS Brand portfolio expansion We plan to double Frank Family Vineyards1 • Expanding national distribution, with on-premise growth a key priority • Leveraging the best in class tasting room experience and extensive wine club model • Strong support from founders, Rich and Leslie Fra
Slide 39: Multi-country of origin brands
MULTI-COUNTRY Brand portfolio expansion OF ORIGIN BRANDS Building belief and momentum with Penfolds multi-country Bin and Icon Collection, now comprising wine sourced from Australia, France and California Our first measure of success is to achieve 100k cases for each of the French and Californian Co
Slide 40: Multi-country of origin brands
MULTI-COUNTRY Brand portfolio expansion OF ORIGIN BRANDS 39
Slide 41: Innovation for today, tomorrow & the future
INNOVATION FOR TODAY, Innovation for today, tomorrow and the future TOMORROW & THE FUTURE Measures of Success Consumer insight driven category expansion Sales channel expansion that meets the consumer where they shop Continually investing for the wine business of the future Industry defining Agtech
Slide 42: Introducing Treasury Ventures
INTRODUCING TREASURY Innovation for today, tomorrow and the future VENTURES Our in-house Ventures team Pursuing emerging wine-based opportunities across our value chain through external investments and partnerships Acquiring minority stakes in innovative and high-growth businesses, initial focus on
Slide 43: Mid-strength alcohol wine
MID-STRENGTH ALCOHOL WINE Innovation for today, tomorrow and the future Our ambition is to lead the category globally in low and no alcohol wine In F23 we have committed to invest approximately $10m in low and no alcohol winemaking technology 42
Slide 44: Innovating in our supply chain
INNOVATING IN OUR SUPPLY CHAIN Innovation for today, tomorrow and the future Vineyard of Winery of Sustainability the Future the Future Using data to take weather Autonomous and Centralised winery & yield predictions to alternative fuel vehicles control system the next level under trial globally 43
Slide 45: Penfolds consumer engagement
PENFOLDS CONSUMER ENGAGEMENT Innovation for today, tomorrow and the future Re-corking Clinics Penfolds House Engaging with our luxurians, passionate Delivering elevated luxury about Penfolds and unique experiences experiences beyond the product 44
Slide 46: Outstanding execution on the physical and digital shelf
Outstanding OUTSTANDING EXECUTION ON execution on the physical & digital shelf THE PHYSICAL AND DIGITAL SHELF Measures of Success Relentless building of distribution Category growing retailer relationships In-store theatre that is the envy of the category 45
Slide 47: Penfolds distribution expansion
Outstanding PENFOLDS execution on the physical & digital shelf DISTRIBUTION EXPANSION Thailand Growth In Distribution By SKU (July 2021 – January 2023) Targeted and methodical approach to growing distribution Fine Wine Retail 1,467% Off-Premise Bottle Shops 58% Supermarkets 34% Globally consistent d
Slide 48: US luxury distribution opportunity
Outstanding US LUXURY DISTRIBUTION execution on the physical & digital shelf OPPORTUNITY Targeting the best on and off premise accounts across the US: • Red list: covered by the Vault Collective, our dedicated Luxury selling team • Gold list: covered by our distributor partners’ Luxury selling teams
Slide 49: Treasury Americas e-commerce strategy
Outstanding TREASURY AMERICAS execution on the physical & digital shelf E-commerce Strategy Easy to Find Easy to Buy Easy to Enjoy Expanded assortment Elevated content Storytelling brands In-stock inventory Shoppable advertising Augmented reality Winning search On-demand fulfillment Consumer ratings
Slide 50: Penfolds in-store theatre
Outstanding PENFOLDS execution on the physical & digital shelf In-Store Theatre 49
Slide 51: Treasury Premium Brands
Outstanding TREASURY PREMIUM BRANDS execution on the physical & digital shelf Leading activation 50
Slide 52: Treasury Americas in-store theatre
Outstanding TREASURY execution on the physical & digital shelf AMERICAS In-Store Theatre 51
Slide 53: Summary
SUMMARY Our enterprise value drivers are the unique set of capabilities that we currently have, or are investing in, right across TWE As we have shown today, these capabilities are ultimately focused on our consumers, and are being deployed to align with each divisions strategy and long-term growth
Slide 54: Digital & technology – next steps in the journey
DIGITAL & TECHNOLOGY – NEXT STEPS IN THE JOURNEY Kate Whitney Chief Digital and Technology Officer 53
Slide 55: Digital, data & technology enabling our attributes
DIGITAL, DATA & TECHNOLOGY IS ENABLING OUR ENTERPRISE-WIDE ATTRIBUTES Consumer Brand portfolio Innovation for today, Outstanding execution obsession expansion tomorrow and the future on the physical & digital Direct to consumer Led by data and insights Leading edge viticultural shelf and production
Slide 56: Consumer obsession
CONSUMER OBSESSION Getting close to consumers using digital platforms and programs has a two-fold payback to our business Selling direct across the portfolio Continue to maximise the top-line for our Luxury brands, including Penfolds and the US portfolio Building consumer loyalty Brand led loyalty p
Slide 57: Brand portfolio expansion
BRAND PORTFOLIO EXPANSION Our teams are becoming more enabled to use data in house to move rapidly into NPD pipelines with greater certainty Using operational data to better forecast demand and allocate resources across winemaking Collecting and analysing consumer data to provide signals of current
Slide 58: Innovation
INNOVATION Powering more efficient production and higher margin brand portfolios through data, analytics, robotics, machine learning and AI Optimise production Robotics is being used to replace repetitive human tasks at reduced time, cost and with greater accuracy Improve yield Data science is now t
Slide 59: Outstanding execution
OUTSTANDING EXECUTION NPD playbooks and digital product catalogues will enable distributors and retailers to access the ‘new news’ with enough time to build more thoughtful programming at the shelf
Slide 60: Our vision
OUR VISION Drive innovation and deliver value leveraging digital, data & technology Five Operating Principles Enterprise- Pilot, then Future proof Cost Delivered centric scale solutions efficient at pace 59
Slide 61: Building capability for the future
BUILDING CAPABILITY FOR THE FUTURE Katie Hodgson Rachel Ashley Carl Evans Chief People Officer Senior Vice President Supply Chief Marketing Officer Americas Americas Sarah Bakx Bijan Taghian Chief Sales Officer Director, Treasury & Americas Investor Relations 60
Slide 62: Culture, strategy, people
Culture Leadership People Strategy Experience 61
Slide 63: Future ready
FUTURE READY By Building Leadership & Growth Capabilities Leadership Programs Talent Innovation & Development Experience Design CAREER CONCIERGE 62
Slide 64: The role of the Global Leadership Group
THE ROLE OF THE GLOBAL LEADERSHIP GROUP “The whole is greater than the sum of its parts” Aristotle The Global Leadership Group exists to drive synergies across our organisation and to help realise TWE’s collective ambition by bringing together the diverse skills and perspectives of all under a share
Slide 65: 2022 engagement survey
2022 ENGAGEMENT SURVEY Participation rate Top 3 Strengths 76% 52% Safety is taken seriously at TWE Support for flexible working Trust that leaders are listening and will take action 1931 of 2543 From F21 Our Engagement score Top 3 Focus Areas 70% CURRENT WhaT’WE Think Engagement Survey 2022 System a
Slide 66: External awards
Certified NOV 2022-NOV 2023 UK AWARDS ry AWARDS HEALTHIEST EMPLOYERS ARDS. We are honored to recognize Treasury Wine Estates for their commitment to employee well-being and exceptional health and wellness programming. AR AWARDS 1st Place springbuk MON ANNE DF AOE [BEST [i WORK WE MADE THE 2022 AFR B
Slide 67: Cultivating a brighter future
CULTIVATING A BRIGHTER FUTURE Kirsten Gray Chief Sustainability and External Affairs Officer Kerrin Petty Chief Supply Officer
Slide 68: Our key focus areas
OUR KEY FOCUS AREAS Our strategy responds to the areas where we can make the greatest impact Cultivating a brighter future 67
Slide 69: Our key focus areas: water stewardship
OUR KEY FOCUS AREAS Our strategy responds to the areas where we can make the greatest impact Cultivating a brighter future Water Stewardship Establish a global TWE water strategy, including the establishment of material targets 68
Slide 70: Our key focus areas: climate risk & GHG emissions
OUR KEY FOCUS AREAS Our strategy responds to the areas where we can make the greatest impact Cultivating a brighter future Climate Risk & GHG Emissions • 100% renewable electricity by 2024 • Net zero by 2030 (Scope 1 and 2) 69
Slide 71: Our key focus areas: health, safety & wellbeing
OUR KEY FOCUS AREAS Our strategy responds to the areas where we can make the greatest impact Cultivating a brighter future Health, Safety & Wellbeing • 10% reduction in Serious Incident Frequency Rate (SIFR) 70
Slide 72: Our key focus areas: consumer health
OUR KEY FOCUS AREAS Our strategy responds to the areas where we can make the greatest impact Cultivating a brighter future Consumer Health & Responsible Drinking • 100% of TWE brand product labelled from 2025 will include energy information1 • 100% of TWE brand product labelled from 2025 will includ
Slide 73: Our key focus areas: inclusion, equity & diversity
OUR KEY FOCUS AREAS Our strategy responds to the areas where we can make the greatest impact Cultivating a brighter future Inclusion, Equity & Diversity • 50% women in senior leadership by F25 • 42% female representation overall by F25 • 30% female representation on Board (currently 43%) 72
Slide 74: Our key focus areas: sustainable packaging
OUR KEY FOCUS AREAS Our strategy responds to the areas where we can make the greatest impact Cultivating a brighter future Sustainable Packaging and Circular Economy • 100% of packaging to be recyclable, reusable or compostable • 100% of product packaging to comprise 50% recycled content by end of 2
Slide 75: Our key focus areas: sustainable growing and production
OUR KEY FOCUS AREAS Our strategy responds to the areas where we can make the greatest impact Cultivating a brighter future Sustainable Growing and Production • Implement our plan to increase sustainability certification of our brands 74
Slide 76: Our key focus areas: responsible supply chain
OUR KEY FOCUS AREAS Our strategy responds to the areas where we can make the greatest impact Cultivating a brighter future Responsible Supply Chain • Complete supplier risk assessments for 100% of contracted spend by end of F241 1 Target was incorrectly stated in the 2022 Sustainability Report as be
Slide 77: Responding to climate change
RESPONDING TO CLIMATE CHANGE Climate change has been identified as a material business risk for TWE Understanding climate risk Measuring and reducing our Adapting our business emissions • Climate change has been identified • Adapting our business to climate as a material business risk for TWE • 100%
Slide 78: Our decarbonising roadmap
OUR EMISSIONS PROFILE We are progressing on our journey to being Net Zero Scope 1 & 2 by 2030, and are now accelerating our focus on Scope 3 Scope 1 Scope 2 Scope 3 Direct Indirect Indirect Emissions from sources that we Purchased goods and services, Purchased transportation, capital goods, fuel own
Slide 79: Achieving 100% renewable electricity and net zero
OUR DECARBONISING ROADMAP Achieving our 100% renewable electricity target will get us a long way to our Net Zero (Scope 1 & 2) goal while additional efficiency projects will offset remaining emissions Solar installation Renewable Renewable electricity, power purchase Electricity agreements and energ
Slide 80: Scope 3 emissions and supplier partnering
SCOPE 3 EMISSIONS We are partnering with suppliers to accelerate our decarbonisation journey 2% Sold products Vineyard Orora Partnering with Orora on sustainability 4% Plant & equipment 9% Jointly we are committed to innovating boldly and have a strong set of defined 34% initiatives to create a lowe
Slide 81: Climate scenario analysis
CLIMATE SCENARIO ANALYSIS Our business is exposed to a changing climate, with the significance and speed of risks driven by the level of global emissions Indicators Suitability of Temperature, including Water availability and grape varieties to likelihood of extreme likelihood of extreme rain Assess
Slide 82: Adapting our business
ADAPTING OUR BUSINESS Evolution of planning, growing, winemaking and production practices to adapt to the trends impacting our business Understanding the Growing resilient Multi-regional diversification Protecting changing environment vineyards Evolving our business our business Intelligent winery c
Slide 83: F22 strategic review of water usage and footprint
F22 STRATEGIC REVIEW OF WATER USAGE AND FOOTPRINT Water is one of our most critical assets, and we need to increase the availability and security of reliable high-quality water Review Outcomes Good operational Opportunities to improve Operating in a number Global strategy management and an data and
Slide 84: Water stewardship strategy
WATER STEWARDSHIP STRATEGY We are evolving our approach to ensure that we are treasuring water by being responsible, mindful & sustainable leaders across our global communities Secure & Sustainable Water Supply Efficient Water use Promoting Circular Solutions Ensuring water resources are secure We i
Slide 85: Delivering through the cycle
DELIVERING THROUGH THE CYCLE Matt Young Chief Financial Officer 84
Slide 86: Our shareholder value proposition
OUR SHAREHOLDER VALUE PROPOSITION Delivering sustainable long-term growth for our shareholders Global Platform Ongoing pursuit of long- Disciplined and strategic Deliver attractive and Strategy term growth objectives approach to capital allocation returns through the cycle Maintain investment TWE’s
Slide 87: Long-term growth objectives
LONG-TERM GROWTH OBJECTIVES Ongoing pursuit of long- term growth objectives Deliver sustainable top-line growth and high-single digit average earnings growth over the long-term1 Sustainable growth, Premiumise our Deliver EBITS Restore and Cash conversion profitability, cash 90% or higher2 sales mix
Slide 88: Our journey to date
OUR JOURNEY TO DATE Ongoing pursuit of long- term growth objectives NSR and NSR per case EBITS Luxury & Premium contribution to NSR 108.6 97.3 81.9 83.8 513 510 524 2,649 2,570 2,477 307 71% 77% 83% 85% 1,284 29% 23% 17% 15% F20 F21 F22 1H23 F20 F21 F22 1H23 F20 F21 F22 1H23 Total NSR NSR per case E
Slide 89: Long-term growth enablers
LONG-TERM GROWTH ENABLERS Ongoing pursuit of long- term growth objectives F21 F22 F23 F24 F25 Category growth and premiumisation New operating model Enterprise Wide COVID Recovery Technology investment New to category innovation Luxury Reallocation Global distribution and availability expansion Cali
Slide 90: Capital management principles
CAPITAL MANAGEMENT PRINCIPLES Disciplined and strategic approach to capital allocation 1 A well balanced long-term Investment grade capital structure as a cornerstone profile of capital allocation • Target net debt to EBITDAS 1.5-2.0x through the cycle • Up to 3.0x for accretive strategic initiative
Slide 91: Capital investment priorities
CAPITAL INVESTMENT PRIORITIES Disciplined and strategic approach to capital allocation Existing capital base well positioned to support delivery of our financial objectives, now investing for the next horizon of growth Strategic priorities Examples of recent investment Current focus • Technology • D
Slide 92: Delivering strong returns as we progress towards TWE 2025
Disciplined and strategic approach to capital allocation Total shareholder return since 1 July 20201 DELIVERING STRONG RETURNS AS WE PROGRESS 35% 39% TOWARDS 22% 26% 25% TWE 2025 ASX 200 Wine peers Consumer peers Spirits peers Treasury Wine Estates 1 To 28 February 2023, peer groups summarised in de
Slide 93: Closing
CLOSING Tim Ford Chief Executive Officer 92
Slide 94: Closing summary: halfway to TWE 2025
We are at half time in our journey towards TWE 2025, and firmly on track to deliver on our ambition of becoming the world’s most admired premium wine company Enabling our progress towards this ambition are a number of key elements that we are continuing to grow across our enterprise Consumer Fast an
Slide 95: Thank you
Thank you 94
Slide 96: Definitions
DEFINITIONS Term Definition B2B Business to business CAGR Compound Annual Growth Rate COO Country of origin COGS Cost of goods sold Commercial wine Wine that is sold at a price point below $10 per bottle DTC Direct to consumer EBITDAS Earnings before interest, tax, depreciation, amortization, materi