Slide 1: Treasury Wine Estates Interim Results
For personal use only TREASURY WINE ESTATES INTERIM RESULTS 28 February
Slide 2: David Dearie, Chief Executive Officer
For personal use only David Dearie Chief Executive Officer Wynns Coonawarra, SA
Slide 3: Overall Progress Report
Overall Progress Report For personal use only • Higher cost of goods sold (COGS) and 5% less luxury and masstige volume Challenges • Tough global retail environment • Continued strength of the Australian Dollar • Investment in growth initiatives and brand building activities • Continued crafting of
Slide 4: Regional Progress Report
Regional Progress Report For personal use only Volume NSR per case COGS per case CODB per case EBITS % change % change1 % change1 % change1 % change1 Americas (1.4)% 0.3% (3.3)% 11.2% (2.0)% EMEA (9.2)% 2.1% (1.1)% 21.1% NM2 ANZ (0.8)% (2.3)% (7.7)% 11.6% (25.5)% Asia 11.0% (0.5)% (0.4)% 6.1% 12.5%
Slide 5: Mark Fleming, Chief Financial Officer
For personal use only Mark Fleming Chief Financial Officer Matua, NZ
Slide 6: Profit & Loss
Profit & Loss Reported Currency Constant Currency For personal use only $Am (unless otherwise stated) 1H13 1H12 Change 1H12 Change Volume (m 9L cases) 16.5 16.9 (2.5)% 16.9 (2.5)% Net sales revenue 816.9 845.2 (3.3)% 835.2 (2.2)% Cost of goods sold (606.3) (584.3) (3.8)% (584.2) (3.8)% Cost of goods
Slide 7: Cost Update
Cost Update For personal use only Cost of doing business / NSR1 • Cost of doing business reduced 7.7% to $171.0 million 130bps reflecting the ongoing benefit of our efficiency program 23.3% decrease in 22.2% cost of doing 20.9% business margin 1H11 1H12 1H13 Cost of goods per case2 • Cost of goods p
Slide 8: Cash Flow
Cash Flow Increased investment expenditure For personal use only A$m (unless otherwise stated) 1H13 1H12 • Adverse change in working capital of $103.2 million EBITDAS 109.9 126.5 Change in working capital (103.2) 0.9 principally reflects: Other items (2.7) (4.5) – ANZ IT invoicing issue Net operatin
Slide 9: Balance Sheet
Balance Sheet For personal use only Investment in growth drives higher net debt A$m 1H13 1H12 • Continued investment for growth driving higher non- Cash & cash equivalents 21.9 36.2 current inventory, PP&E and Agricultural assets Receivables 521.8 513.8 • IT and Matua Marlborough investments increas
Slide 10: Working Capital Management
Working Capital Management For personal use only Working capital days Continued focus on managing working capital • Continued investment in non-current inventory, up 255 days 32 days to 84 days versus the prior corresponding 229 days 235 days period 220 days • Working capital days (excluding non-cur
Slide 11: Inventory Analysis
Inventory Analysis For personal use only Inventory at book value split by tier – 1H13 Californian vintage boosts non-current inventory • Strong 2012 Californian vintage resulted in a 50% $702.6m $375.8m $1,078.4m increase in US-sourced non-current inventory – Follows strong 2012 Australian vintage u
Slide 12: David Dearie, Chief Executive Officer
For personal use only David Dearie Chief Executive Officer
Slide 13: Brand Highlights
Brand Highlights Rosemount NSR per case up 4.7%, and Americas volume up 9.1% For personal use only Rosemount: crowned most Wolf Blass: Now the No.1 selling successful exhibitor at Royal wine brand in Hong Kong Queensland Wine Show, winning 27 awards, including 1 trophy and 9 gold Wolf Blass Black La
Slide 14: A Commitment to Quality
A Commitment to Quality Penfolds: named Winery of the Year (2013) by The Good Wine Guide For personal use only Lindeman’s: Bin 95 Sauvignon Blanc “The Penfolds Collection” on awarded 3 trophies in the past 4 months sale at Hedonism wines priced $AUS 1.8 million Lindeman’s volume up 2.0% in the Ameri
Slide 15: 2H13 Outlook
2H13 Outlook For personal use only • Plans in place for a strong second half • Increased allocation of Penfolds Icons • Up to 15% more luxury and masstige wines available for sale • Greater than 10% increase in brand building investment • Superb execution critical to 2H13 performance • Confirm guida
Slide 16: Questions
For personal use only Questions
Slide 17: Disclaimer
Disclaimer For personal use only Treasury Wine Estates (TWE) advises that this presentation contains forward looking statements which may be subject to significant uncertainties outside of TWE’s control. No representation is made as to the accuracy or reliability of forecasts or the assumptions on w
Slide 18: Supplementary Information
For personal use only Supplementary Information Saltram, SA
Slide 19: Brand Business Units
Brand Business Units For personal use only • Beringer • US brands: Cellar No. 8 / Chateau St. Jean / Emma Pearl / Etude / Greg Norman Estates / Meridian / Santa Barbara Collection / Sbragia Family Vineyards / Sledgehammer / Souverain / St. Clement / Stags’ Leap / Be./ • Other brands: Castello di Gab
Slide 20: Segment Information
Segment Information For personal use only Reported currency Constant currency A$m 1H13 1H12 Change 1H12 Change 1 ANZ Volume 4,441.3 4,477.7 (0.8)% 4,477.7 (0.8)% ANZ NSR 288.6 297.4 (3.0)% 297.9 (3.1)% ANZ EBITS 36.0 48.5 (25.8)% 48.3 (25.5)% Americas Volume1 8,096.8 8,207.8 (1.4)% 8,207.8 (1.4)% Am
Slide 21: Foreign Currency Impact & Risk Management
Foreign Currency Impact & Risk Management For personal use only Impact of FX on 1H13 EBITS Primary Currencies A$m The impact in the Americas reflects the moderate appreciation of the Americas USD, CAD (5.0) AUD/USD and the timing of key cash flows within the period GBP, EUR, NOK, EMEA result impacte
Slide 22: Definitions
Definitions For personal use only Term Definition Throughout this presentation, constant currency assumes current and prior period earnings of Constant currency foreign operations are translated and cross border transactions are transacted at current year exchange rates. NSR Net sales revenue EBITDA