Slide 1: Annual 2018 Results
For personal use only TREASURY WINE ESTATES Annual 2018 Results 16 August 2018
Slide 2: Michael Clarke, Chief Executive Officer
Michael Clarke For personal use only Chief Executive Officer 2
Slide 3: Reported headlines
Reported headlines1,2,3 • Statutory Reported Net Profit After Tax4 of $360.3m, up 34% For personal use only • Statutory Reported Earnings Per Share (EPS) of 49.7 cents per share, up 36% • 4 year EBITS CAGR of 25% delivered; F18 EBITS5 of $530.2m, up 17% • Strong momentum across all regions; Group EB
Slide 4: Executive Leadership Team on the call today
Executive Leadership Team on the call today For personal use only Michael Clarke Chief Executive Officer Robert Foye Chief Operating Officer and Global Sales Tim Ford Deputy Chief Operating Officer and Global Supply Matt Young Chief Financial Officer Michelle Terry Chief Marketing Officer Angus McPh
Slide 5: Driving long term, sustainable value; foundation in place
Driving long term, sustainable value; foundation in place For personal use only F15 F16 F17 F18 Changed Penfolds Acquired Diageo Changed Canada Changed US RTM release date Wine RTM Launched French portfolio Changed China Launched Supply Sold US Non-Priority Route-To-Market Chain Optimisation Commerc
Slide 6: Michelle Terry, Chief Marketing Officer
Michelle Terry For personal use only Chief Marketing Officer 6
Slide 7: Brand and marketing highlights: Penfolds Countries of Origin and Special Bottlings
Brand and marketing highlights Penfolds new Countries of Origin and Special Bottlings For personal use only Penfolds Countries of Origin Penfolds Special Bottlings 7 7
Slide 8: Brand and marketing highlights: emBrazen
Brand and marketing highlights emBrazen – Celebrating trailblazing women For personal use only 8 8
Slide 9: Introducing the new Cavaliere D'Oro range
Brand and marketing highlights Introducing the new Cavaliere D’Oro range For personal use only Chianti range A heritage anchored in Tuscany with confident integrity Regional range A diverse range of characterful wines & regional styles Tuscany, Puglia, Sicily Light & refreshing A fresh, celebratory,
Slide 10: Matt Young, Chief Financial Officer
Matt Young Chief Financial Officer For personal use only 10
Slide 11: F18 result; key measures of performance
F18 result; key measures of performance1,2 Premiumisation strategy driven increase in NSR per EBITS per dollar of CODB up every year - doubled For personal use only case; up 23% 1.00 3,300 75 1.0 0.89 70.25 3,000 66.50 65.96 70 0.8 0.68 2,700 61.66 65 2,402 2,429 0.53 2,400 60 0.6 56.87 2,233 0.47 2
Slide 12: Balance Sheet
Balance Sheet1,2 Investment grade metrics and increased Balance Sheet efficiency For personal use only A$m F18 F17 Cash & cash equivalents 89.4 240.8 • Net assets down $112.2m on a reported currency basis; Receivables 593.3 607.9 adjusting for movements in foreign currency, net assets down $168.9m C
Slide 13: Cash flow and net debt
Cash flow and net debt1,2 Disciplined cash flow and capital management Continued investment in both scale and efficiency For personal use only A$m (unless otherwise stated) F18 F17 A$m F18 F17 EBITDAS 627.7 563.4 IT spend 17.4 14.8 Change in working capital (177.1) (67.4) Oak purchases 33.6 33.5 Oth
Slide 14: Inventory analysis
Inventory analysis Recent investments delivering uplift in Luxury inventory For personal use only Inventory at book value split by segment1,2 • Total inventory increased $252.6m to $1,964.4m, reflecting: − $188.2m increase in non-current inventory − $64.4m increase in current inventory • Total Luxur
Slide 15: Regional Managing Directors and Operations Leaders
Robert Foye | Chief Operating Officer and Global Sales Peter Dixon | Managing Director, Asia For personal use only Angus McPherson | Managing Director, ANZ and Europe Tim Ford | Deputy Chief Operating Officer and Global Supply 15
Slide 16: Americas
Americas Historical EBITS & EBITS margin performance3 Americas regional performance1,2 A$m For personal use only A$m F18 F17 % F17 % Reported currency Constant currency Reported currency Volume (m 9Le) 13.7 15.8 (13.3)% 15.8 (13.3)% NSR (A$m) 961.8 1,083.8 (11.3)% 1,061.1 (9.4)% NSR per case (A$) 70
Slide 17: Asia
Asia Asia regional performance Historical EBITS & EBITS margin performance1 For personal use only A$m A$m F18 F17 % F17 % Reported currency Constant currency Reported currency Volume (m 9Le) 4.3 3.5 23.2% 3.5 23.2% NSR (A$m) 547.6 394.3 38.9% 393.7 39.1% NSR per case (A$) 125.93 111.70 12.7% 111.53
Slide 18: Australia & New Zealand
Australia & New Zealand ANZ regional performance Historical EBITS & EBITS margin performance1 For personal use only A$m A$m F18 F17 % F17 % Reported currency Constant currency Reported currency Volume (m 9Le) 7.9 7.8 1.7% 7.8 1.7% NSR (A$m) 598.7 591.3 1.3% 589.9 1.5% NSR per case (A$) 75.47 75.84 (
Slide 19: Europe
Europe Europe regional performance1 Historical EBITS & EBITS margin performance2 A$m For personal use only A$m F18 F17 % F17 % Reported currency Constant currency Reported currency Volume (m 9Le) 8.6 9.3 (7.5)% 9.3 (7.5)% NSR (A$m) 320.9 332.3 (3.4)% 343.2 (6.5)% NSR per case (A$) 37.16 35.59 4.4% 3
Slide 20: Michael Clarke | Summary & Outlook
Michael Clarke | Summary & Outlook For personal use only 20
Slide 21: Summary and outlook
Summary and outlook For personal use only • TWE delivered 25% compound annual EBITS growth over past four years • TWE reiterates guidance of approximately 25% EBITS growth in F19 • TWE expects the new US operating model to be embedded in 2HF19 • TWE investing in brand portfolio initiatives; incremen
Slide 22: Questions
For personal use only Questions 22
Slide 23: Disclaimer
Disclaimer For personal use only Summary information The material in this presentation is summary information about Treasury Wine Estates Limited (TWE) and its subsidiaries and their activities, current as at the date of this presentation unless otherwise stated. It should be read in conjunction wit
Slide 24: Supplementary Information
Supplementary For personal use only Information 24
Slide 25: Impact of foreign exchange rate movements & hedging
Impact of foreign exchange rate movements & hedging F18 constant currency impact F19 EBITS sensitivity and risk management For personal use only CFX Impact (A$m) Currency Primary EBITS Movement Currency Underlying Hedging1 Total Pair Exposure Sensitivity (A$m) AUD/USD and AUD/GBP 0.2 (3.8) (3.6) AUD
Slide 26: Definitions
Definitions For personal use only Term Definition Throughout this presentation, constant currency assumes current and prior period earnings of foreign Constant currency operations are translated and cross border transactions are transacted at current year exchange rates NSR Net sales revenue EBITDAS