INVESTOR UPDATE For personal use only 17 December 2025 Important information All references to '$' throughout this presentation refer to Australian Dollars, unless marked otherwise. 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 2025 including the Appendix 4E, the Appendix 4D and 2025 Interim Results, and other announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. Thi ...

Treasury Wine announced a company-wide overhaul including asset sales and cost cuts, as the Penfolds producer tackles weakening demand in its key markets https://t.co/N59MBiwphp ...

Treasury Wine Estates today (15 December) requested a pause in the trading of its shares on the Australian Securities Exchange, ahead of a planned update to its outlook. In a statement, the Penfolds winemaker said it had asked for the trading halt to be "effective immediately". TWE said it was preparing for an investor and analyst call in two days' time, "which will include information regarding the company's outlook". The group has requested the pause to run "until the earlier of the commencement of n ...

Core Viewpoint - Treasury Wine Estates (TWE) has withdrawn its fiscal 2026 earnings guidance due to an uncertain outlook for its Penfolds brand and Treasury Americas business [1][3] Group Performance - TWE's shares fell over 15% to A$5.93, marking their lowest level in over a decade following the earnings guidance withdrawal [2] - First-quarter shipments for fiscal 2026 met expectations in key markets, but Penfolds sales in China are soft, leading to concerns about achieving depletion targets [2][3] Earnings Guidance - TWE had previously anticipated low to mid double-digit EBITS growth for Penfolds in fiscal 2026, which has now been scrapped, along with a 15% EBITS growth expectation for fiscal 2027 [3] - The company is currently unable to provide revised guidance due to ongoing uncertainty [3] Distribution Challenges - In the US, TWE's Treasury Americas business faced shipment issues due to the exit of distributor RNDC from California, effective September [4] - The company appointed Breakthru Beverage Group as the new distributor in California in July [4] Financial Impact - TWE had expected a A$50 million hit to net sales revenue in fiscal 2026 due to the distributor change in California [5] - Ongoing discussions with RNDC aim to find a practical solution to mitigate the impact on shipments and operating plans [5][6] Share Buy-Back Program - TWE has paused its on-market share buy-back program until there is greater clarity regarding trading conditions and expectations [6]

Core Viewpoint - Treasury Wine Estates has withdrawn its earnings guidance for 2026 and paused a planned A$200 million share buyback due to weak sales of its Penfolds wines in China and distribution challenges in the U.S. [1][5] Sales Performance - Sales of Penfolds in China have been weaker than expected, attributed to changing alcohol consumption habits and fewer large-scale banqueting occasions [2][3] - The company indicated that if current performance trends continue, Penfolds depletions targets for fiscal 2026 in China are unlikely to be achieved [3] Financial Impact - The withdrawal of guidance for Penfolds in fiscal years 2026 and 2027 reflects high uncertainty in the Chinese market [4] - The transition to a new distributor in the U.S. is expected to result in a loss of around A$50 million in sales, with ongoing negotiations over approximately A$100 million of inventory held by the previous distributor [5] Strategic Response - Treasury is implementing several initiatives to mitigate the impacts of a weaker Chinese market, including reallocating products to select customers in other key markets [6]

Core Viewpoint - Treasury Wine Estates has withdrawn its earnings guidance for 2026 and paused a planned A$200 million ($130 million) share buyback due to weak sales of its Penfolds wines in China and distribution challenges in the U.S. [1][5] Group 1: Sales Performance - Sales of Penfolds in China have been weaker than expected, attributed to changing alcohol consumption habits and fewer large-scale banqueting occasions [2][3] - The company indicated that if current performance trends continue, Penfolds depletions targets for fiscal 2026 in China are unlikely to be achieved [3] Group 2: Financial Impact - The withdrawal of guidance for Penfolds in FY26 and FY27 reflects high uncertainty in the Chinese market [4] - The transition to a new distributor in the U.S. is expected to result in a loss of around A$50 million in sales, with ongoing negotiations over approximately A$100 million of inventory held by the previous distributor [5] Group 3: Strategic Response - Treasury is implementing several initiatives to mitigate the impacts of a weaker Chinese market, including reallocating products to select customers in other key markets [6]

Core Insights - Treasury Wine Estates Ltd. shares have fallen to a 10-year low after the company withdrew its earnings guidance for the 2026 financial year and paused a planned share buy-back due to uncertain market conditions in China and California [1][4]. Market Performance - The company's stock price dropped by as much as 14% on Monday morning, reaching its lowest point since September 2015, following the announcement of the earnings guidance withdrawal [2]. - The planned A$200 million ($130 million) share buy-back has been paused after being 15% completed, reflecting the company's cautious outlook [6]. Market Challenges - Lower-than-expected stock depletions in China during September have raised concerns that the depletion targets for the 2026 financial year may not be met [2][5]. - A distributor transition in California is negatively impacting Treasury Americas' performance, leading the company to retract its guidance for modest EBITS growth in that region [3]. Leadership Transition - The announcement of the earnings guidance withdrawal and share buy-back pause comes as new CEO Sam Fischer prepares to take over from outgoing head Tim Ford, highlighting the challenges facing the new leadership [4].