Treasury Wine Estates (TWE) Investor Update summary

Strategic Outlook and Growth Plans

• Multi-year growth targets set for Penfolds, with FY24 EBITS expected at AUD 418–421 million and margins at ~42%.

• FY25 guidance targets low double-digit EBITS growth, driven by global price increases (6% on Bin and Icon wines), increased investment in China, and margin improvement to 43–45%.

• FY26 and FY27 aim for ~15% annual EBITS growth, supported by record 2024 vintage intake and increased Bin and Icon wine availability, with a return to 45% margin.

• Growth strategy is anchored in diversified global markets, not solely reliant on China, ensuring sustainability and risk mitigation.

• No further price increases are factored into FY26–27 guidance; future pricing will be reviewed based on market and supply conditions.

China Market Execution and Brand Strategy

• Strong initial demand and positive depletions as Australian portfolio resumes shipping to China post-tariffs, with efficient customs clearance and e-commerce traction.

• Distribution model refined for efficiency, with select national and regional partners, and a focus on digital solutions for compliance and consumer engagement.

• Brand health in China remains robust, ranking #2 for awareness among imported wine brands, supported by ongoing A&P investment.

• FY25 will see stepped-up brand investment, new campaigns, and expanded local team to ~200, mainly in sales and marketing.

• Portfolio spans Australian, US, French, and Chinese wines, leveraging unique attributes and premiumization trends to capture luxury wine market growth.

Supply Chain, Production, and Investment

• Record 2024 vintage intake achieved through targeted vineyard management, expanded grower sourcing, and enhanced winemaking capacity, supporting significant availability growth from 2H26.

• Production capacity remains underutilized, allowing for future growth without significant new capital; quick expansion possible with minimal investment.

• Over AUD 280 million invested since 2018 in vineyards and Barossa winery, increasing production capacity by 30%.

• Inventory buildup from recent vintages will support multi-year growth, with allocation strategies balancing global demand and supply.

• Scalable supply chain and ongoing innovation position Penfolds to meet future demand and support growth ambitions.