Treasury Wine Estates (TWE) Investor Day 2024 summary

Strategic Direction and Portfolio Transformation

• Luxury wine now represents over half of revenue and 70% of divisional EBITS, with DAOU as a central growth driver and the acquisition filling a key gap in the $20–$40 segment.

• Treasury Americas has shifted to a luxury-focused business, now leading the US luxury wine market post-DAOU acquisition.

• Separate sales and marketing teams for luxury and premium portfolios will be implemented from FY25, supported by a center of excellence.

• International expansion is prioritized, especially in Canada and Asia, leveraging Penfolds’ global distribution network.

• A more ruthless, asset-by-asset and brand-by-brand focus will be adopted to improve returns and capital efficiency.

Financial Guidance and Growth Outlook

• FY24 EBITS for Treasury Americas expected between $223m–$228m, with DAOU contributing approximately US$24m.

• Group expects mid- to high-single-digit EBITS growth for FY24, excluding DAOU's second-half contribution.

• DAOU is targeted to deliver low double-digit NSR growth over the medium term and mid- to high-single-digit EPS accretion in FY25.

• Full run-rate cost synergies of US$20m+ are targeted by end of FY26.

• Capital investment needs are limited, with existing assets and sourcing expected to support growth and improve return on capital employed.

Integration, Synergies, and Operational Model

• Integration of DAOU is on track, leveraging Treasury Americas’ supply chain and production assets for efficiency.

• Cost synergies will be realized through grape sourcing, winery consolidation, centralized packaging, and overhead optimization.

• Paso Robles winery will approach full capacity within two years, with premium production able to be outsourced to free up luxury capacity.

• DAOU+ app and digital DTC initiatives are central to consumer engagement and will be explored for broader portfolio use.

• Dedicated luxury and premium sales teams will have separate incentive structures and account management, with national accounts spanning both.