Treasury Wine Estates : F20 Interim Results Announcement and Investor and Analyst Presentation 12 February 2020

February 12, 2020 at 03:19 am EST

12 February 2020

ASX ANNOUNCEMENT

Treasury Wine Estates 2020 interim results

Treasury Wine Estates Limited (ASX:TWE) has today released its audit reviewed financial statements for the half year ended 31 December 2019. TWE has continued to deliver earnings growth, with EBITS growing 6% in 1H20, and has given guidance for continued EBITS growth in F20 and F21.

Attached to this announcement are the following documents:

Appendix 4D, Interim Financial Report
Profit report and analyst presentation, which are based on the audit reviewed financial statements

In relation to the profit report and analyst presentation, TWE notes that these documents are substantively unchanged from those disclosed to the ASX on 28 January 2019, with the exception of the following:

Removal of all references to the financial information as being subject to audit review;
TWE's auditors have since completed their review in respect of the Interim Financial Report, and have issued an unqualified report to the Company
Minor reclassifications within the balance sheet between retained earnings and payables of $0.3m (1H20) and $0.5m (1H19) that relate to restatement of the financial statements in respect of AASB16 Leases
In light of recent developments in relation to the coronavirus outbreak, inclusion of the following statements with respect to Outlook and Future Perspectives:

"EBITS growth expectations exclude any potential impacts of the recent coronavirus outbreak. TWE's primary focus is the safety and wellbeing of its people, all of whom are well, in good spirits and currently working from home pending their planned return to the office later in February.

While at this stage it is too early to assess financial impacts, should there be a sustained material impact on consumption, this would impact F20 earnings.

TWE notes that Asia is a predominantly Luxury wine sales region, and that it has the flexibility to allocate Luxury wines to later fiscal periods and other geographies in order to deliver sustainable earnings growth.

Importantly, TWE remains excited by the significant long-term opportunity in the Asia region. Through its proven strategy, advantaged business model and strong

T R E A S U R Y W I N E E S T A T E S L I M I T E D

A B N 2 4 0 0 4 3 7 3 8 6 2

L E V E L 8 , 1 6 1 C O L L I N S S T R E E T

M E L B O U R N E V I C 3 0 0 0 A U S T R A L I A

W W W . T W E G L O B A L . C O M

commitment to its partners, brands and people, TWE is well placed to capitalise on long-term opportunities, not only across the Asia region, but globally."

For the purposes of ASX Listing Rule 15.5, TWE confirms that this document has been authorised for release to the market by the Board.

Contacts:
Media	Investors
Melissa O'Neill	Bijan Taghian
Tel: +61 3 8533 3923	Tel: +61 3 8533 3568
Mob: +61 467 555 175	Mob: +61 433 173 664

Treasury Wine Estates

Interim 2020 financial result

MEDIA RELEASE

12 February 2020

TWE delivers growth despite challenging US market conditions

1H20 NPAT up 5% to $229.2m and EPS up 5% to 31.9 cps1,2

Opening remarks from Michael Clarke, TWE Chief Executive Officer

"The early announcement of our first half results reflects the fact that we slightly missed our 1H20 EBITS versus our own expectations and based on our revised full year forecast our growth rate in F20 will be lower than previously guided. This is driven primarily by underperformance in our US results in the first half and is expected to continue through the second half, due to:

Unexpected changes in our Americas leadership, resulting in a loss of execution momentum through the first half that will carry into the second half.
US wine market dynamics where suppliers are trying to move surplus wine across the market at lower prices, resulting in an accelerated growth of private label, which is up approximately 15% in a market that is flat to down. This is a significant market shift in a very short period, especially after the recent US vintage in October and towards the end of the half.
As a result of these market dynamics, we were unable to recover or offset higher US Luxury COGS and higher Australian Commercial COGS, with higher levels of discounting required to try to maintain share across all price points. We also walked away from just under half a million cases of Commercial volume in the US due to private label growth, aggressive market pricing and our higher COGS.

We have looked at whether we can recover this first half shortfall in the second half, but given the continued market dynamics in the US, we believe that those aggressive one-off recovery activities, for example pricing, would not be repeatable in F21. Instead, we would rather stay on our journey of sustainably growing profit, but for F20 and F21, at slightly lower growth rates than previously expected and instead focus on resetting the US management team and rebuilding momentum in execution, strategically reviewing how we will manage our US and global Commercial wine business differently and go into the back half of F21 and then F22 stronger again.

We have considerably improved the profitability of our Commercial wine business over the past six years by right sizing it, removing costs and outsourcing supply to third party suppliers. Given these accelerated market changes, we will now address how we manage this part of our business differently, so that it continues to support, not drag on our premiumisation strategy.

It should be noted that we pleasingly continue to grow our Luxury and Masstige business across every region - Asia, ANZ, the Americas and EMEA - and this is a real growing strength of TWE."

Announcement highlights

NSR3 up 2% to $1,536.1m, driven by an 8% improvement in NSR per case as TWE continues its journey of premiumisation across all regions, offset by volume declines across the Commercial portfolio
1H20 EBITS4 up 6% to $366.7m, with EBITS margin accretion of 0.9ppts delivered to 23.9%, another step on TWE's journey towards an EBITS margin of 25% and beyond

Strong performance across the Asia, ANZ whilst a loss of execution momentum and Americas regional performance

and EMEA regions driven by Luxury and Masstige growth, challenging US wine market conditions were a setback to

Unless otherwise stated, all figures and percentage movements outlined in TWE's Media Release are stated on a reported currency basis and are subject to rounding; prior year has been restated for application of AASB16 Leases
Before SGARA and material items
Net sales revenue
Earnings before interest, tax, SGARA and material items

TWE's US Luxury & Masstige depletions grew 6% while Commercial depletions declined 10%. TWE has outperformed the US Luxury & Masstige market in both value and volume terms over the past 26 and 52 weeks5
NPAT6 up 5% to $229.2m; EPS7 growth to 31.9 cents per share, up 5%
1H20 cash conversion 85.1%, with Leverage8 of 1.7x an improvement of 0.4x versus the prior year
Globally, shipments are broadly in line with depletions, and in Asia forward days inventory cover are lower than the prior year as a result of a reset in distribution route to market for Rawson's Retreat
As a result of challenging conditions in the US wine market, TWE now expects F20 reported EBITS growth of approximately 5% to 10%9, with F20 full year underlying cash conversion to be broadly in line with F19
TWE expects F21 reported EBITS growth of approximately 10% to 15%10, reflecting continued premiumisation and growth in Luxury wine availability, balanced against the risks associated with challenging US wine market conditions persisting into F21, and impacts from the cost of the 2020 Australian vintage. This excludes any initiatives from the strategic review to manage the Commercial wine business differently, which the Company expects would deliver meaningful benefits in the future.

1H20 result summary

Treasury Wine Estates Limited (ASX:TWE or "the Company") today announced its interim 2020 financial result, with NPAT up 5% to $229.2m and EPS up 5% to 31.9 cents per share.

TWE reported EBITS of $366.7m, up 6%, with EBITS margin increasing 0.9ppts to 23.9%.

Premiumisation continues to drive operating performance across all regions, with NSR from the Luxury and Masstige segments growing 7% in 1H20, and now representing 73% of Group NSR. Commercial volumes declined 10% globally versus the pcp, impacted by suppliers increasingly moving product through private label, most notably in the US and Australia.

The Board has determined to pay an interim dividend of 20 cents per share, fully franked, up 11% on the previous corresponding period (pcp).

On today's result, TWE's Chief Executive Officer, Michael Clarke, commented: "While we are very pleased with our performance across the Asia, ANZ and EMEA regions, our first half performance in the Americas has been a setback and is disappointing given the high expectations we have for growth in this important market. The fact that we have continued to deliver sustainable, margin accretive growth despite this setback in one of our key markets is testament to the fundamental strength of our global business model, which sources multi-regionally, sells multi-regionally and is the most self-distributed wine business, globally."

Key highlights from a regional perspective include:

Americas reported a 17% decline in EBITS to $98.3m and an EBITS margin of 16.1% (down 3.6ppts). A loss of execution momentum, contributed to by unforeseen changes in regional management, was exacerbated by the persistence of challenging conditions in the US wine market which accelerated in Q2 post vintage. Regional volume declined 6%, reflecting declines in the Commercial portfolio of 11%, partly offset by growth in Luxury volume which grew 7%. Benefits of premiumisation were offset by increased promotional support which was required to compete with persistent aggressive competitor discounting. Higher COGS on Australian sourced Commercial wine and US sourced Luxury wine also had an adverse impact.
Asia reported 19% EBITS growth to $175.5m and an EBITS margin of 43.1% (up 4.2ppts), driven by strong demand and continued outstanding execution across key markets. Key top-line metrics continued to exhibit strong growth, but volume was impacted temporarily due to a reset in distribution with one large customer. TWE continues to invest in driving distribution, brand building and organisational capability throughout the region to support future growth.

IRI Market Advantage, Multi-Outlet + Liquor, $4+ bottle, 26 and 52 weeks ending 29 December 2019
Net Profit After Tax, before SGARA and material items
Earnings Per Share, before SGARA and material items
Ratio of total Net Borrowings to last twelve-month EBITDAS which includes the addition of depreciation expense attributable to leases in the period; previously TWE was reporting this metric using S&P's lease capitalisation methodology
Assuming no material changes due to foreign exchange movements and does not include one-off charges of approximately $35m associated with the expansion of Luxury winemaking infrastructure in South Australia. Base F19 comparative $681.4m, restated for the application of AASB16 Leases
Assuming no material changes due to vintage or foreign exchange movements

Australia & New Zealand (ANZ) reported 10% EBITS growth to $85.9m and an EBITS margin of 26.4% (up 3.0ppts). Continued momentum in premiumisation and lower CODB was partly offset by market wide declines in Commercial volumes in addition to temporary changes to the buying patterns of key retailers across parts of the Luxury portfolio.
Europe, Middle East and Africa (EMEA) reported a 1% decline in EBITS to $32.0m and an EBITS margin of 16.8% (down 0.3ppts). Benefits from Masstige-led premiumisation were offset by higher COGS on Australian sourced Commercial wine.

Cash conversion of 85.1% was delivered in the period, and TWE continues to maintain financial metrics that are consistent with an investment grade credit profile. At 1H20, TWE reported Leverage of 1.7x, an improvement of 0.4x in the year, with interest cover of 12.4x11.

Future perspectives

The strength of TWE's premiumisation strategy and diversified global business model has enabled the delivery of robust results, despite some market challenges. TWE remains focused on continuing the successful execution of its strategy, with the structural changes and investments made by the Company in recent years leaving it well placed to deliver sustainable, margin accretive growth into the future.

The accelerated growth of private label in the US and Australia, combined with the impact of higher COGS, has had an impact on TWE's performance across the Commercial portfolio, globally. Building on work previously completed, a strategic review of the Company's internal operating model is underway, focused on accelerating returns from premiumisation and managing the Commercial wine business differently. This review is expected to be completed in 2H20 and further details will be announced at a future date no later than the F20 full year results.

Recent drought, heat and fires in Australia have created some likely challenges with respect to the cost of the 2020 Australian vintage, which is currently in harvest. While final impacts on the vintage are to be determined, TWE's diversified multi-regional sourcing model, combined with past investments in Luxury inventory which are allocated across multiple financial years, provides a degree of flexibility to manage vintage related impacts.

As a result of the challenging conditions in the US wine market, TWE now expects reported EBITS growth of 5% to 10% in F2012, which is below the previously guided 15% to 20% range. For F21, TWE expects reported EBITS growth of approximately 10% to 15%13 which reflects continued premiumisation and growth in Luxury wine availability, balanced against the risks associated with challenging US wine market conditions persisting into F21, and impacts from the cost of the 2020 Australian vintage. This excludes any initiatives from the strategic review to manage the Commercial wine business differently, which the Company expects would deliver meaningful benefits in the future.

EBITS growth expectations exclude any potential impacts of the recent coronavirus outbreak. TWE's primary focus is the safety and wellbeing of its people, all of whom are well, in good spirits and currently working from home pending their planned return to the office later in February. While at this stage it is too early to assess financial impacts, should there be a sustained material impact on consumption, this would impact F20 earnings. TWE notes that Asia is a predominantly Luxury wine sales region, and that it has the flexibility to allocate Luxury wines to later fiscal periods and other geographies in order to deliver sustainable earnings growth. Importantly, TWE remains excited by the significant long-term opportunity in the Asia region. Through its proven strategy, advantaged business model and strong commitment to its partners, brands and people, TWE is well placed to capitalise on long-term opportunities not only across the Asia region, but globally.

In conclusion, Michael Clarke commented: "The results announced today demonstrate the continued momentum behind our premiumisation strategy across all markets, and the strength of our diversified, global business model. We are very pleased with our performance across Asia, ANZ and EMEA, all markets in which we are executing well and continuing to deliver improving financial returns for our shareholders. While current conditions in the US wine market are challenging, we are confident that we will re-gain momentum

Interest cover is calculated as the ratio of earnings to net interest expense prior to AASB16 impacts, where earnings is the consolidated pre-tax profit (pre-material items, SGARA and AASB16 impacts) plus the sum of the amount of net interest expense adjusted for amortised interest costs, per financial covenants
Assuming no material changes due to foreign exchange movements and does not include one-off charges of approximately $35m associated with the expansion of Luxury winemaking infrastructure in South Australia. Base F19 comparative EBITS $681.4m, restated for the application of AASB16 Leases
Assuming no material changes due to vintage or foreign exchange movements

under the new Americas regional leadership team and return the region to growth once the market impacts subside.

Further, we expect the outcomes of our strategic review to present us with opportunities to further improve the way we run our business and accelerate the pace with which we address right sizing and managing our Commercial wine business differently. In parallel, there is no change to the rate at which we are expecting to grow our Luxury business into the future.

We remain focused on our journey of sustainably growing earnings, but for F20 and F21, at slower growth rates than previously expected as we look to re-build momentum in the US and implement key actions from our strategic review. The fundamentals of our global business are strong, and we remain firmly focused on continuing our journey of margin accretive growth into the future."

Contacts / further information:
Media	Investors
Melissa O'Neill	Bijan Taghian
Tel: +61 3 8533 3923	Tel: +61 3 8533 3568
Mob: +61 467 555 175	Mob: +61 433 173 664

Profit Report

Financial Performance

		Reported	Constant
		Currency	Currency
$Am (unless otherwise stated)	1H20	1H19	Change	1H19	Change
Restated	Restated
Net sales revenue	1,536.1	1,507.7	1.9 %	1,546.4	(0.7)%
NSR per case ($)	87.00	80.64	7.9 %	82.71	5.2 %
Other Revenue	15.1	30.1	(49.8)%	30.8	(51.0)%
Cost of goods sold	(868.0)	(884.9)	1.9 %	(909.8)	4.6 %
Cost of goods sold per case ($)	49.16	47.33	(3.9)%	48.66	(1.0)%
Gross profit	683.2	652.9	4.6 %	667.4	2.4 %
Gross profit margin (% of NSR)	44.5%	43.3%	(1.2)ppts	43.2%	(1.3)ppts
Cost of doing business	(316.5)	(306.0)	(3.4)%	(311.1)	(1.7)%
Cost of doing business margin (% of NSR)	20.6%	20.3%	(0.3)ppts	20.1%	(0.5)ppts
EBITS	366.7	346.9	5.7 %	356.3	2.9 %
EBITS margin (%)	23.9%	23.0%	0.9ppts	23.0%	0.9ppts
SGARA	(2.6)	(6.2)	58.1 %	(6.6)	60.6 %
EBIT	364.1	340.7	6.9 %	349.7	4.1 %
Net finance costs	(44.8)	(40.7)	(10.1)%	(42.2)	(6.2)%
Tax expense	(91.9)	(86.6)	(6.1)%	(87.2)	(5.4)%
Net profit after tax (before material items)	227.4	213.4	6.6 %	220.3	3.2 %
Material items (after tax)	(16.0)	-	-	-	-
Net profit after tax	211.4	213.4	(0.9)%	220.3	(4.0)%
Reported EPS (A¢)	29.4	29.7	(1.0)%	30.7	(4.2)%
Net profit after tax (before material items and	229.2	218.0	5.1 %	225.0	1.9 %
SGARA)

EPS (before material items and SGARA) (A¢)	31.9	30.4	4.9 %	31.3	1.9 %
Average no. of shares (m)	719.5	718.3		718.3
Dividend (A¢)	20.0	18.0	11.1 %	18.0	11.1 %

Financial headlines14,15

Net Sales Revenue (NSR) increased 1.9% on a reported currency basis, and declined 0.7% on a constant currency basis:
- Volume declined 5.6%, led by the lower margin Commercial portfolio where volume fell 10.0% in 1H20
- Portfolio premiumisation drove a 5.2% increase in NSR per case, partly offsetting the top-line impact of lower Commercial volume
Cost of Goods Sold (COGS) per case rose 1.0%, due to portfolio premiumisation and higher COGS on Australian sourced Commercial wine and US sourced Luxury wine (which increased 4.6% and 7.6% respectively), partly offset by lower COGS on Australian sourced Luxury wine
Higher Cost of Doing Business (CODB) reflects continued brand building investment in Asia and higher promotional activity in the US, offset by favourable overheads following implementation of key Simplify for Growth initiatives
EBITS of $366.7m, up 5.7% on a reported currency basis and 2.9% on a constant currency basis, with EBITS margin up 0.9ppts to 23.9%
NPAT and EPS (before material items & SGARA) both grew 1.9%
Cash conversion of 85.1% was delivered in 1H20; excluding the net change in non-current Luxury and Masstige inventory, cash conversion was 77.5%

Business headlines

Earnings growth delivered through continued execution of premiumisation strategy, against a backdrop of challenging conditions in the US wine market and a growing global trend to private label
Strong performance across Asia, ANZ and EMEA regions was led by Luxury and Masstige growth, whilst a loss of execution momentum and challenging US wine market conditions were a setback to Americas regional performance in 1H20
Higher Commercial COGS have proven difficult to recover due to increased promotional activity across the Commercial category, particularly in the US, and accelerated growth in competition from private label
TWE's competitively advantaged business model - focused on sourcing multi-regionally, selling multi-regionally and being the most self-distributed wine company globally - has been a key to delivery of global earnings growth in 1H20 despite these challenges
Luxury and Masstige NSR grew 6.8% versus the pcp, and now represents 73.1% of Group NSR. Focus brand NSR grew 3.9% globally, highlighting the positive momentum behind TWE's brand portfolio strategy
Key Simplify for Growth initiatives, including the Global Business Services platform, are delivering operational efficiencies that TWE will seek to increasingly leverage over time
Investment in Luxury production assets to support the next phase of TWE's premiumisation journey; in 1H20 TWE acquired production assets in the Bordeaux region of France and commenced investment in expansion of Luxury winemaking in South Australia

Outlook

TWE expects reported EBITS growth of approximately 5% to 10% in F20, with the current challenging conditions in the US wine market expected to persist through the remainder of the year17
F20 full year cash conversion to be broadly in line with F19
TWE expects growth in F21 reported EBITS of approximately
10% to 15%18, reflecting:
- Continued delivery of growth across the Luxury and Masstige portfolio, in all markets
- The risk that current challenging conditions in the US wine market may persist into F21
- Impacts of the 2020 Australian vintage, which has been affected by heat and drought conditions. These are expected to lead to higher Australian sourced Commercial and Masstige COGS
- Excludes any initiatives from the strategic review to manage the Commercial wine business differently, which TWE expects would deliver meaningful benefits in the future
- EBITS growth expectations exclude any potential impact of the recent coronavirus outbreak. While at this stage it is too early to assess financial impacts, should there be a sustained material impact on consumption, this would impact F20 earnings

Strong and flexible balance sheet maintained, Leverage improved to 1.7x (from 2.1x at 1H19)
Interim dividend 20.0 cents per share, fully franked; delivering 11.1% growth vs. 1H19, and a pay-out ratio of 62.7%16

Financial information in this report is based on audit reviewed financial statements. Non-IFRS measures have not been subject to audit or review. The non-IFRS measures are used internally by Management to assess the operational performance of the business and make decisions on the allocation of resources
Unless otherwise stated, all percentage or dollar movements from prior periods contained in the Profit report are pre-material items on a constant currency basis and are subject to rounding. Prior year has been restated for application of AASB16 Leases
TWE targets a dividend payout ratio of between 55%-70% of Net Profit After Tax (pre-material items and SGARA) over a fiscal year
Assuming no material changes due to foreign exchange movements. Does not include impacts from the application of AASB16 Leases or one-off charges of approximately $35m associated with the expansion of Luxury winemaking infrastructure in South Australia
Assuming no material changes due to vintage or foreign exchange movements

Revenue by region19

A$m	1H20	1H19	%	1H19	%
Restated	Restated

		Reported currency	Constant currency
Net Sales Revenue
Americas	612.4	604.6	1.3%	639.1	(4.2)%
Asia	407.5	380.4	7.1%	381.3	6.9%
EMEA	190.4	189.0	0.7%	191.9	(0.8)%
ANZ	325.8	333.7	(2.4)%	334.1	(2.5)%
Total sales revenue	1,536.1	1,507.7	1.9%	1,546.4	(0.7)%
Other revenue	15.1	30.1	(49.8)%	30.8	(51.0)%
Total Revenue	1,551.2	1,537.8	0.9%	1,577.2	(1.6)%

Revenue

Net Sales Revenue declined 0.7%, driven by volume declines, predominantly across the Commercial portfolio which was down 10%. Partly offsetting was portfolio mix, which led to a 5.2% increase in NSR per case in 1H20
Other revenue reduced by 51.0% due to the exit of third party packaging arrangements in Australia

Cost of Goods Sold (COGS)

COGS per case increased by 1.0%, driven by portfolio premiumisation and higher COGS on Australian sourced Commercial wine and US sourced Luxury wine, which increased 4.6% and 7.6% respectively, partly offset by lower COGS on Australian sourced Luxury wine

Cost of Doing Business (CODB)

CODB increased 1.7%, with continued brand building investment in Asia and higher promotional activity in the US, offset by favourable overheads following implementation of key Simplify for Growth initiatives
CODB margin increased 0.5ppts, largely a result of the lower global NSR

Corporate costs

Corporate costs improved $5.3m, driven by reduction in overheads following establishment of the Global Business Services platform in 1H19

EBITS by region19

A$m	1H20	1H19	%	1H19	%
Restated	Restated

		Reported currency	Constant currency
Americas	98.3	118.9	(17.3)%	133.6	(26.4)%
Asia	175.5	147.8	18.7%	143.7	22.1%
EMEA	32.0	32.3	(0.9)%	33.6	(4.8)%
ANZ	85.9	78.2	9.8%	75.6	13.6%
Corporate	(25.0)	(30.3)	17.5%	(30.2)	17.2%
TWE EBITS	366.7	346.9	5.7%	356.3	2.9%

EBITS

EBITS increased 2.9% to $366.7m, driven by continued momentum in premiumisation and lower overheads, offset by higher COGS and increased trade and promotional support in the Americas
EBITS margin increased 0.9ppts to 23.9%, another step on
TWE's journey towards an EBITS margin of 25% and beyond

SGARA

SGARA loss of $2.6m ($6.2m loss in pcp) driven by the 2019 Californian vintage loss and the unwinding of prior vintage outcomes, notably losses on the 2017 and 2018 Californian vintages

Net finance costs

Increased net finance costs are principally driven by higher average gross borrowings versus the pcp following establishment of the US$ syndicated facility in November 2018, partly offset by interest earned on higher cash balances

Tax expense

TWE's effective tax rate was 28.8%, which is in line with the tax rate in the pcp

Material Items

1H20 material items reflects costs pertaining to the long-term investment in Luxury winemaking infrastructure in South Australia.

Net profit after tax (NPAT)

NPAT before material items and SGARA $229.2m, up 5.1%, driven by higher EBITS and partly offset by increased net finance costs and higher tax expense

Earnings Per Share (EPS)

EPS (before SGARA and material items) rose 1.9% to 31.9 cents per share. Reported EPS declined 4.2% to 29.4 cents per share, due principally to material items recognised in relation to the long-term investment in Luxury winemaking infrastructure in South Australia

19 Prior year comparatives have been restated to reflect the transition of the MEA business from Asia to EMEA and the application of AASB16 Leases

Balance Sheet (condensed)20

A$m	1H20	F19	1H19
Restated	Restated

Cash & cash equivalents	335.6	401.8	183.0
Receivables	703.5	662.0	829.1
Current inventories	996.6	1,001.7	1,069.1
Non-current inventories	1,015.3	1,045.6	893.3
Property, plant & equipment	1,420.6	1,398.7	1,440.5
Right of use lease assets	510.1	507.1	505.6
Agricultural assets	39.1	29.4	40.7
Intangibles	1,177.7	1,163.8	1,156.7
Tax assets	171.9	181.0	171.9
Assets held for sale	72.3	78.3	39.1
Other assets	19.5	21.0	17.7

Total assets	6,462.2	6,490.4	6,346.7
Payables	665.6	718.6	745.9
Interest bearing debt	1,155.0	1,165.1	1,128.0
Lease liabilities	636.1	629.5	622.7
Tax liabilities	241.2	289.5	236.9
Provisions	56.6	48.0	49.8
Other liabilities	8.2	8.6	15.2
Total liabilities	2,762.7	2,859.3	2,798.5
Net assets	3,699.5	3,631.1	3,548.2

Balance sheet movements as at 31 December 2019

Net assets up $68.4m to $3,699.5m. The application of AASB 16 Leases impacted inventory, right of use lease assets, tax assets/liabilities, payables and borrowings.

Working Capital21

Higher working capital relative to 30 June 2019 reflects higher receivables driven by growth in NSR and the weighting of Q2 sales ahead of key consumption occasions, including Chinese New Year. Lower payables primarily reflect timing of vintage related payments for inventory.

Total inventory decreased $35.4m in 1H20 to $2,011.9m. Versus the pcp, inventory increased $49.5m:

Current inventory declined $72.5m to $996.6m, reflecting updated twelve-month sales volume expectations, most notably in the Americas, in addition to efficient inventory management across the Masstige portfolio where TWE has increased utilisation of bulk wine sourcing arrangements
Non-currentinventory increased by $122.0m to $1,015.3m, driven by the high quality, high volume Australian 2019 vintage, where Luxury intake increased 10% versus the prior vintage.
Luxury inventory increased 9.9% to $1,260.5m, reflecting
TWE's sustained investment in premiumisation
TWE's predominantly third-party sourcing model for Commercial inventory has provided flexibility to efficiently respond to changes in demand as they arise, and TWE is comfortable with its Luxury and Masstige inventory position which will facilitate future growth
The 2020 Australian vintage is expected to be impacted by

recent heat and drought conditions

Property, Plant & Equipment

Property, Plant & Equipment increased $21.9m to $1,420.6m, reflecting investment in production assets (winery and vineyards) in the Bordeaux region of France, in addition to vineyard investments in Australia and the US

Right of use lease assets

Right of use lease assets were largely unchanged

Agricultural assets

Agricultural assets at 31 December 2019 represent the market value of unharvested grapes prior to the 2020 Australian and New Zealand vintages

Intangibles

Intangible assets increased by $13.9m, principally reflecting investment in IT systems supporting Simplify for Growth initiatives, offset by amortisation expense

Provisions

Increase in provisions of $8.6m driven by one-off costs associated with the expansion of Luxury winemaking infrastructure in South Australia, offset by utilisation of past provisions related primarily to establishment of the Global Business Services platform

Tax and other assets

Net tax liabilities decreased due to payments made in relation to Australian operations, offset by the current period tax charge

Assets held for sale

Assets held for sale relates to surplus supply assets in the US

Net Borrowings22

Net Borrowings, including lease liabilities per AASB16, increased $62.7m to $1,455.5m:

Cash declined by $66.2m to $335.6m
Interest bearing borrowings decreased $10.1m to $1,155.0m
Lease liabilities increased by $6.6m to $636.1m

Key credit metrics

Leverage of 1.7x, down 0.4x versus the pcp, and interest cover of 12.4x

Funding structure

At 31 December 2019, TWE had committed debt facilities totalling approximately $1.8bn, comprising;

Drawn bank facilities of $500.5m and $572.0m of US Private Placement notes
Undrawn committed, bilateral debt facilities totalling $721.8m Weighted average term to maturity of committed facilities 4.5 years

Unless otherwise stated, balance sheet percentage or dollar movements from the previous period are on a reported currency basis and in respect of the six months from 30 June 2019. Prior year comparatives have been restated for the application of AASB16 Leases.
Working capital balances may include items of payables and receivables which are not attributable to operating activities
Borrowings have been increased by $13.2m (1H19: $7.4m decrease, F19: $12.1m increase) to reflect fair value hedges on a portion of US Private Placement notes

Cash flow - reconciliation of net debt23

A$m (unless otherwise stated)	1H20	1H19
Restated

EBITDAS	444.7	425.5
Change in working capital	(73.8)	(187.7)
Other items	7.4	8.0
Net operating cash flows before financing costs, tax &	378.3	245.8
material items

Cash conversion	85.1%	57.7%
Payments for capital expenditure and subsidiaries	(113.2)	(93.6)
Proceeds from sale of assets	28.7	26.6
Cash flows after net capital expenditure, before financing	293.8	178.8
costs, tax & material items

Net interest paid	(43.8)	(41.9)
Tax paid	(123.7)	(88.7)
Cash flows before dividends & material items	126.3	48.2
Dividends/distributions paid	(140.2)	(122.2)
Cash flows after dividends before material items	(13.9)	(74.0)
Material item cash flows	(6.3)	(0.7)
On-market share purchases	(4.9)	(16.6)
Total cash flows from activities (before debt)	(25.1)	(91.3)
Net (repayment) / proceeds from borrowings	(42.2)	183.2
Total cash flows from activities	(67.3)	91.9
Opening net debt	(1,380.0)	(1,336.9)
Total cash flows from activities (above)	(25.1)	(91.3)
Lease liability additions	(30.9)	(88.8)
Net debt acquired	(3.2)	-
Debt revaluation and foreign exchange movements	(2.4)	(56.1)
Increase in net debt	(61.6)	(236.2)
Closing net debt	(1,441.6)	(1,573.1)

Movement in net debt

Net debt increased by $61.6m to $1,441.6m, with drivers of the movement in net debt including:

EBITDAS

EBITDAS increased $19.2m on a reported currency basis driven by premiumisation and lower overheads, offset by higher COGS and increased trade and promotional support in the Americas. Depreciation and amortisation were broadly in line with the pcp.

Movement in working capital24

Net working capital cash outflow of $73.8m is driven by higher receivables, reflecting growth in NSR and the weighting of Q2 sales ahead of key consumption occasions, including Chinese New Year. Offset by lower inventory.

Other items

Other items reflects movements in provisions and profit on sale of assets, broadly in line with pcp

Capital expenditure

Capital expenditure (capex) of $113.2m comprising:

Maintenance & Replacement capex of $51.2m
Growth capex of $62.0m which includes investments in South Australian Luxury winemaking assets, acquisition of French production assets and vineyard acquisitions

In F20, Maintenance and Replacement capex is expected to be in line with guidance, in the range of $100m to $110m, with growth capex of up to $135m reflecting investment in assets supporting premiumisation

Proceeds from sale of assets

Reflect receipts from the sale of surplus supply assets, notably in the US

Net interest paid

Higher net interest paid reflects increase in net finance costs

Dividends paid

Increase in dividends paid reflects F19 final dividend of 20 cents per share an increase of 14.7% relative to pcp

Tax paid

Increase in tax paid reflects increased profits in respect of the Australian and Asian operations

Material item cash flows

Increase in material item cash flows is driven by the costs associated with the expansion of Luxury winemaking infrastructure in South Australia

On-market share purchases

Reduction in on-market share purchases reflects vesting of shares under TWE's Long Term Incentive Plans being delivered in 1H20 via a combination of new shares issued and shares purchased on- market

Lease liability additions

Additions of $30.9m in 1H20 driven by lease extension for South Australian distribution centre and new leases for production equipment. Prior year additions include leases for new office space in Melbourne and Oakland

Exchange rate impact

Lower period-end exchange rates used to revalue foreign currency borrowings and cash as at 31 December 2019, increased net debt by $2.4m

Net debt acquired

Debt acquired as part of acquisition of production assets in the Bordeaux region of France

Cash conversion

Cash conversion 85.1%, guidance for F20 full year cash conversion to be broadly in line with the prior year maintained. Excluding the net change in non-current Luxury and Masstige inventory, cash conversion was 77.5%

Unless otherwise stated, cash flow percentage or dollar movements from the previous period are on a reported currency basis; prior year has been restated for application of AASB16 Leases
Change in working capital reflects operating cash flow movements

Regional Summaries

Americas

Financial performance25

Business performance

A$m	1H20	1H19	%	1H19	%
Restated	Restated

		Reported currency	Constant currency
NSR (A$m)	612.4	604.6	1.3%	639.1	(4.2)%
NSR per case (A$)	88.08	81.40	8.2%	86.05	2.4%
EBITS (A$m)	98.3	118.9	(17.3)%	133.6	(26.4)%
EBITS margin (%)	16.1%	19.7%	(3.6)ppts	20.9%	(4.8)ppts

Historical EBITS and EBITS margin*

A$m

Chart presented on a reported currency basis, with prior periods restated for AASB16 Leases

Shipments were in line with depletions in 1H20: Luxury and Masstige depletions were up 10% and 5% respectively versus pcp
NSR declined 4.2%, due to:
- Lower volume of 6.4%, which was driven by an 11% decline in Commercial volumes, led by Beringer Main and Vine and Lindemans Bins, and a result of increasing retailer focus on private label which grew approximately 15% in during the half26
- Increased promotional support in order to compete with persistent and aggressive competitor discounting
- NSR per case grew 2.4% due to portfolio mix, led by Luxury portfolio
COGS per case increased due to premium portfolio mix, the ongoing impact to US Luxury COGS, notably across leased vineyards, and increased costs of Australian sourced Commercial inventory
Higher CODB reflects increased promotional support across the portfolio, offset by lower overheads following the removal of route-to- market transitional costs
Regional EBITS declined 26.4% to $98.3m, with increased trade and promotional support across the portfolio offsetting the benefits of premiumisation. In addition, lower volumes limited ability to offset COGS increases. EBITS margin declined 4.8ppts to 16.1%

Americas regional perspectives

Americas regional performance has been impacted by a loss of execution momentum, contributed to by unforeseen management changes, and persistence of challenging conditions in the US wine market, with an acceleration of these market dynamics encountered in Q2 post vintage
The US wine market is currently undergoing considerable change, with potential divestitures by a number of TWE's competitors and accelerated movement of product through private label. Further, impacts from the trade war and above average recent vintages has led to increased levels of supply across the market, which has contributed to high levels of discounting
Despite the current challenges TWE remains confident about both the market and its long-term prospects in the US, given its strategic focus on the growing Luxury and Masstige price segments and optimised route- to-market model
Luxury and Masstige segments of the US wine market continue to exhibit strong growth, with Commercial segment declines (excluding bag in box) driven by increasing retailer focus on private label and aggressive price discounting and promotional activity
TWE's focus brand depletions were up 4% versus pcp, with 19 Crimes, Matua and Beringer Brothers outpacing the market in their respective price segments
Focus in 2H20 and beyond will be on driving availability and distribution of focus brands along with investment in customer pull through programs

Medium-termtarget EBITS margin target of 25% maintained, and TWE remains confident that its strategy of premiumisation, complemented by growing distribution and availability of focus brands through its optimised route-to-market, will restore the region to margin accretive growth once the short-term impacts in the US market subside

Prior year has been restated for application of AASB16 Leases
IRI Market Advantage, Multi Outlet + Liquor, $4+ excluding box, 26 weeks ending 29 December 2019

Regional Summaries

Asia

Financial performance27

Business performance

A$m	1H20	1H19	%	1H19	%
Restated	Restated

		Reported currency	Constant currency
NSR (A$m)	407.5	380.4	7.1%	381.3	6.9%
NSR per case (A$)	202.71	170.24	19.1%	170.64	18.8%
EBITS (A$m)	175.5	147.8	18.7%	143.7	22.1%
EBITS margin (%)	43.1%	38.9%	4.2ppts	37.7%	5.4ppts

Historical EBITS and EBITS margin*

A$m

Chart presented on a reported currency basis, with prior periods restated for AASB16 Leases

Earnings growth continued across the region, driven by strong demand and outstanding sales execution in key markets
In China, Luxury and Masstige depletions were up over 40% versus pcp
Asia region volume declined 10% largely as a result of lower shipments to one large customer for Rawsons Retreat and some lower Luxury brands:
- TWE has re-set its customer partnership model to better balance the distribution of these brands, with return to normal shipment profiles having commenced
- Excluding the temporary impact from this one customer, region volume grew 14% versus pcp
Forward days of inventory cover lower versus the prior year, reflecting temporary decline in shipments on Rawson's Retreat and some lower Luxury brands
NSR increase of 6.9% driven by portfolio mix and supported by continued focus on strengthening of strategic partnerships to grow breadth and depth of distribution throughout the region
Higher CODB reflects ongoing investment in organisational capability and customer pull through programs throughout the region to support future growth
EBITS up 22.1% to $175.5m, with margin accretion of 5.4ppts to 43.1%

Asian regional perspectives

Fundamentals of the Asian wine market remain attractive across the region, with consumption continuing to grow28
In China, TWE has observed a short-term tightening in working capital across distributors, wholesalers and retailers who are currently focused on reducing levels of competitors' inventory; this is reflected in China import data where Australia (led by TWE) is the only country-of-origin to have grown shipments into market over the past year
TWE's route-to-market, focused on self-distribution and driving customer pull-through, continues to provide a competitive advantage to maintaining growth across the region through changing macro-economic and industry cycles
Execution of the multi country-of-origin portfolio strategy continues to strengthen, with shipments of TWE's own French portfolio29 more than doubling on pcp and supported by strong depletions growth
E-commercedata shows strong growth and great momentum for TWE brands30
35%+ EBITS margin guidance maintained for F20 and beyond, reflecting expected future growth of the Masstige portfolio in the region

Prior year comparatives have been restated to reflect the transition of the MEA business from Asia to EMEA and the application of AASB16 Leases
China: Nielsen Modern Trade, value MAT December 2019, Other key markets: IWSR Value 2019
Excludes performance of third party distributed brands
Smartpath, e-commerce sales total wine, MAT November 2019

Regional Summaries

Australia & New Zealand (ANZ)

Financial performance31

A$m	1H20	1H19	%	1H19	%
Restated	Restated

		Reported currency	Constant currency
NSR (A$m)	325.8	333.7	(2.4)%	334.1	(2.5)%
NSR per case (A$)	80.36	77.02	4.3%	77.11	4.2%
EBITS (A$m)	85.9	78.2	9.8%	75.6	13.6%
EBITS margin (%)	26.4%	23.4%	3.0ppts	22.6%	3.8ppts

Historical EBITS and EBITS margin*

A$m

* Chart presented on a reported currency basis, with prior periods restated for AASB16 Leases

Business performance

NSR declined 2.5% in 1H20, driven by
- Volume decline of 6.4% due to reduced Commercial volumes and temporary changes in buying patterns from key retailers across parts of the Luxury portfolio
- NSR per case increased 4.2% through continued momentum in premiumisation
COGS per case higher, reflecting mix improvement and higher COGS on Australian sourced Commercial wine
Lower CODB reflecting realised benefits from the Simplify for Growth program, most notably establishment of the Global Business Services platform, and continued cost and investment discipline
EBITS increased 13.6% to $85.9m, with EBITS margin improving 3.8ppts to 26.4%

ANZ regional perspectives

Australian wine market volume remains flat, with value growth being driven by premiumisation. TWE is growing well ahead of the market in both the Masstige and Luxury categories while private label has continued to gain share across Commercial price points, contributing to the reduction in volumes in 1H20
Across the portfolio, TWE is delivering top-line growth on key focus brands including Penfolds, Wolf Blass, Squealing Pig, 19 Crimes and The Stag
TWE has the top three brands for absolute growth32 in the market - Penfolds, 19 Crimes and Squealing Pig
The on-premise category remains a focus and TWE has secured partnerships with significant customers in 1H20 providing strong brand visibility in key venues
Alternative channels are also performing strongly, including Global Travel Retail and emerging retailers.
TWE maintains its aspirational 25% market share target, to be achieved through prioritising growth across the Luxury and Masstige portfolios; 22% value share in 1H2033
Continue to focus on maintaining 25%+ EBITS margin in F20

Prior year has been restated for the application of AASB16 Leases
Retail Sales Value Aztec Australia Liquor Weighted FYTD to 5 January 2020
Aztec Sales Value Data, bottled and canned wine only, Australia Liquor Weighted, Scan 26 weeks to 22 December 2019

Regional Summaries

Europe, Middle East and Africa (EMEA)

Financial performance34

Business performance

A$m	1H20	1H19	%	1H19	%
Restated	Restated

		Reported currency	Constant currency
NSR (A$m)	190.4	189.0	0.7%	191.9	(0.8)%
NSR per case (A$)	41.05	40.18	2.2%	40.80	0.6%
EBITS (A$m)	32.0	32.3	(0.9)%	33.6	(4.8)%
EBITS margin (%)	16.8%	17.1%	(0.3)ppts	17.5%	(0.7)ppts

Historical EBITS and EBITS margin*

A$m

Chart presented on a reported currency basis, with prior periods restated for AASB16 Leases

Lower NSR of 0.8% was driven by reduced Commercial volumes, particularly in MEA and Continental Europe, and partly offset by Masstige-led portfolio premiumisation in UK and the Nordics
NSR per case 0.6% favourable and driven by continued portfolio premiumisation, led by 19 Crimes, Wolf Blass and Penfolds
Unfavourable COGS per case reflects pricing pressure on Australian and US sourced Commercial wine and Masstige-led mix shift
Favourable CODB reflects a disciplined approach to brand building investment and cost management
EBITS margin 16.8% (14.8% excluding MEA); mid-teens margin target maintained

Europe regional perspectives

Overall UK wine market conditions remain challenging, however the strong trend to premiumisation has continued with Masstige growth approximately 9.7% compared to Commercial declines of approximately 5.1%35
Strong partnerships with key European retailers are key to delivering growth ahead of the market; focus continues to be on joint business planning and winning in store
Continued prioritisation of key markets (UK, Sweden and the Netherlands) and a focused portfolio of brands
19 Crimes continues to grow across the region driven by growth in Continental Europe and the Nordics and increased distribution in the UK; with volume up 78.5% versus pcp in the UK Off- Trade36
Priority to maintain mid-teen EBITS margin in F20, with benefits of premiumisation and additional cost efficiency to be offset by impacts on Australian Commercial sourced COGS

Prior year comparatives have been restated to reflect the transition of the MEA business from Asia to EMEA and the application of AASB16 Leases
Nielsen, Total Coverage, Total Still Light Wine, 26 weeks ending 28.12.19 (750ml bottled still wine only)
Nielsen UK Off Trade 26 weeks ending 28.12.19

Vintage update

California

Moderate weather conditions throughout the growing season and lack of heat spikes in harvest drove gradual maturation, good balance and fresh fruit flavours across California, resulting in a high quality vintage for 2019. Tonnage was generally lower than the large 2018 vintage but it was variety and region dependent. For TWE, it was a strong harvest across the board with tonnage at long term averages and superior quality across TWE's luxury portfolio particularly Napa Cabernet Sauvignon.

Wildfires in late October had a minimal impact on the 2019 Vintage as it was isolated to the northern region of Sonoma County and the majority of grapes had been picked across the state by this time.

Australia

Vintage 2020 growing conditions to date have been challenging in all regions due to an extremely dry winter, cool and windy conditions during fruit set followed by unprecedented heat spikes during December and into early 2020. While Commercial yields are likely to be in line with vintage 2019, current expectations are for lower Luxury and Masstige yields from Limestone Coast sourcing regions and yields similar to vintage 2019 from central sourcing regions. Recent fires across South Australia and Victoria have had no direct impact on TWE, but impact from a potential smoke taint perspective is not yet known.

New Zealand

The 2020 New Zealand vintage has experienced variable weather conditions with above average rainfall. Conditions in Marlborough and Nelson have led to good fruit sets and healthy canopies while Central Otago is expected to deliver lower than average yields. For TWE the growing conditions to date are supportive of a high-quality vintage, with yields anticipated to be in line with or slightly above vintage 19. From a quality perspective the growing season is looking promising across Marlborough Sauvignon Blanc and Pinot Noir and Central Otago Pinot Noir.

France

The 2019 vintage in France was generally a good quality vintage across the regions. Overall tonnage was lower than Vintage 2018 due to the impact of frost and drought in some regions. For TWE, it was a strong first vintage from Bordeaux with sunshine compensating for the lack of temperature and allowing long and even maturation. From a quality perspective the 2019 vintage is looking strong especially across Cabernet.

Appendix 1: Impact of AASB 16 Leases

TWE has adopted AASB 16 Leases in F20, and has applied the standard on a fully retrospective basis. This appendix exhibits the impact of AASB 16 on the Group's Profit and Loss Statement, Balance Sheet, Cash Flow Statement and other key metrics for 1H19

			1H19
$Am (unless otherwise stated)	Note	Pre AASB 16	AASB 16	Restated
Impact

Net sales revenue		1,507.7	-	1,507.7
NSR per case ($)		80.64	-	80.64
Other Revenue		30.1	-	30.1
Cost of goods sold	1	(893.5)	8.6	(884.9)
Cost of goods sold per case ($)		47.79	(0.46)	47.33
Gross profit		644.3	8.6	652.9
Gross profit margin (% of NSR)		42.7%	0.6%	43.3%
Cost of doing business		(306.0)	-	(306.0)
Cost of doing business margin (% of NSR)		20.3%	-	20.3%
EBITS (before material items)		338.3	8.6	346.9
EBITS margin (%)		22.4%	0.6%	23.0%
SGARA		(6.2)	-	(6.2)
EBIT (before material items)		332.1	8.6	340.7
Net finance costs	2	(24.1)	(16.6)	(40.7)
Tax expense	3	(88.8)	2.2	(86.6)
Net profit after tax (before material items)		219.2	(5.8)	213.4
Material items (after tax)		-	-	-
Net profit after tax		219.2	(5.8)	213.4
Reported EPS (A¢)		30.5	(0.8)	29.7
Net profit after tax (before material items and		223.8	(5.8)	218.0
SGARA)

EPS (before material items and SGARA) (A¢)		31.2	(0.8)	30.4
Average no. of shares (m)		718.3	-	718.3
Dividend (A¢)		18.0	-	18.0

COGS reduction reflects lower production asset related lease costs (vineyard right of use depreciation charge under AASB 16 is lower than operating lease expense previously recognised).
Net finance costs increase to reflect interest expense on the lease liability
Tax expense reflects the tax effect of the above adjustments

Regional Impact

The Group has operating leases for vineyards, buildings, equipment and motor vehicles across all operating regions and the impact for each of these regions will vary as AASB 16 replaces the straight-line operating expense with a depreciation charge on these new right of use assets. The impact on regional EBITS is set out below. There is no impact on NSR.

In addition, EBITS impacts relating to the transition of the Middle East & Africa region (MEA), from Asia to EMEA are shown below. The NSR contributed by MEA was $13.4m in 1H19.

			1H19
EBITS A$m	Pre AASB 16	AASB 16	Restated	MEA Impact	Restated
Impact

Americas	112.1	6.8	118.9	-	118.9
Asia	153.1	0.5	153.6	(5.8)	147.8
EMEA	26.3	0.2	26.5	5.8	32.3
ANZ	77.4	0.8	78.2	-	78.2
Corporate	(30.6)	0.3	(30.3)	-	(30.3)
TWE EBITS	338.3	8.6	346.9	-	346.9
			1H19
EBITS Margin %	Pre AASB 16	AASB 16	Restated	MEA Impact	Restated
Impact

Americas	18.5%	1.2%	19.7%	-	19.7%
Asia	38.9%	0.1%	39.0%	-0.1%	38.9%
EMEA	15.0%	0.1%	15.1%	2.0%	17.1%
ANZ	23.2%	0.2%	23.4%	-	23.4%
TWE EBITS Margin	22.4%	0.6%	23.0%	-	23.0%

Balance Sheet

			1H19
A$m	Notes	Pre AASB 16	AASB 16	Restated
Impact

Cash & cash equivalents		183.0	-	183.0
Receivables		829.1	-	829.1
Current inventories	1	1,092.4	(23.3)	1,069.1
Non-current inventories		912.8	(19.5)	893.3
Property, plant & equipment		1,440.5	-	1,440.5
Right of use lease assets	2	-	505.6	505.6
Agricultural assets		40.7	-	40.7
Intangibles		1,156.7	-	1,156.7
Tax assets	3	145.4	26.5	171.9
Assets held for sale		39.1	-	39.1
Other assets		17.7	-	17.7
Total assets		5,857.4	489.3	6,346.7
Payables	4	809.9	(64.0)	745.9
Interest bearing Debt		1,128.0	-	1,128.0
Lease liabilities	5	-	622.7	622.7
Tax liabilities		236.9	-	236.9
Provisions		49.8		49.8
Other liabilities		15.2	-	15.2
Total liabilities		2,239.8	558.7	2,798.5
Net assets		3,617.6	(69.4)	3,548.2

Inventories decrease is due to lower production asset related overhead costs (right of use depreciation charge under AASB 16 is lower than operating lease expense previously recognised, noting that these costs are recognised as part of the cost of inventory)
Right of use assets are recognised on the balance sheet at the present value of contracted future cash flows

Deferred tax asset relates to the tax effect of the new lease liability and the deferred tax liability relates to the tax effect of the new right of use assets
Payables decrease represents removal of valuation adjustments to leases, including straight line operating leases
The lease liability associated with the right of use asset is valued at the discounted future minimum lease payments

Cash Flow

			1H19
A$m (unless otherwise stated)	Notes	Pre AASB 16	AASB 16	Restated
Impact

EBITDAS	1	388.3	37.2	425.5
Change in working capital	2	(188.5)	0.8	(187.7)
Other items		8.0	-	8.0
Net operating cash flows before financing costs, tax		207.8	38.0	245.8
& material items

Cash conversion

Payments for capital expenditure

Proceeds from sale of assets

Cash flows after net capital expenditure, before financing costs, tax & material items

53.5%	4.2%	57.7%
(93.6)	-	(93.6)
26.6	-	26.6
140.8	38.0	178.8

Net interest paid	3	(25.3)	(16.6)	(41.9)
Tax paid		(88.7)	-	(88.7)
Cash flows before dividends & material items		26.8	21.4	48.2
Dividends/distributions paid		(122.2)	-	(122.2)
Cash flows after dividends before material items		(95.4)	21.4	(74.0)
Material item cash flows		(0.7)	-	(0.7)
On-market share purchases		(16.6)	-	(16.6)
Total cash flows from activities (before debt)		(112.7)	21.4	(91.3)
Net (repayment) of / proceeds from borrowings	4	204.6	(21.4)	183.2
Total cash flows from activities		91.9	-	91.9
Opening net debt		(802.3)	(534.6)	(1,336.9)
Total cash flows from activities (above)		(112.7)	21.4	(91.3)
Lease liability additions	5	-	(88.8)	(88.8)
Net debt acquired		-	-	-
Debt revaluation and foreign exchange movements	6	(35.4)	(20.7)	(56.1)
Increase in net debt		(148.1)	(88.1)	(236.2)
Closing net debt		(950.4)	(622.7)	(1,573.1)

EBITDAS increase reflects higher EBITS (see above) and removal of depreciation
Adjustment relates predominantly to the change in inventory and payables per the Balance Sheet
Net Interest Paid increase to reflect interest expense on the lease liability
Repayment of borrowings reflects the portion of lease payments attributable to the repayment of principal
Lease additions resulting from entry into new arrangements, renewal of existing arrangements and contracted rental escalations
Currency translation adjustments reflect impact on incremental lease liabilities

12 February 2020

Michael Clarke, Chief Executive Officer

Tim Ford, Chief Operating Officer

Matt Young, Chief Financial Officer

Michael Clarke Chief Executive Officer

1H20 Results Headlines1,2,3

- NSR $1,536.1m, up 2%, led by continued premiumisation and partly offset by volume declines across the Commercial portfolio
- EBITS $366.7m, up 6%; up 3% adjusting for constant currency
- Group EBITS margin 23.9%, up 0.9ppts
- NPAT4 $229.2m, up 5%
- EPS4 of 31.9 cents per share, up 5%
- Cash conversion 85%, with Leverage 1.7x
- Interim dividend 20 cents per share, fully franked, representing a 63% payout ratio
- Strong performance across the Asia, ANZ and EMEA regions driven by continued growth in Luxury and Masstige
- Loss of execution momentum and challenging US wine market conditions were a setback to Americas regional performance in 1H20; outperformance in Luxury and Masstige sustained
Financial information in this report is based on audit reviewed financial statements. Non-IFRS measures have not been subject to audit or review, and are used internally by Management to assess the operational performance of the business and make decisions on the allocation of resources
All figures and calculations are subject to rounding; prior year comparatives have been restated for the application of AASB16 Leases
Result Headlines metrics disclosed on a reported currency basis, unless marked otherwise
Before material items and SGARA

P A G E 3

Key Markets Update

United States

TWE experienced a loss of execution momentum in 1H20, contributed to by unplanned management changes, which was exacerbated by challenging US market conditions
Aggressive price discounting and promotional activity observed across the US market:
- Higher than anticipated levels of supply due to trade tariffs and above-average recent vintages
- Discounting by competitors ahead of potential divestitures
- Accelerating growth of private label, up approximately 15%, in a market that is flat to down (a significant market shift)
TWE is outperforming the US Luxury & Masstige market in both value and volume1
TWE is confident about the market and its long-term prospects in the US; focused on re-gaining momentum

China

Short-termindustry tightening of working capital observed across distributors, wholesalers and retailers affecting our competitors; as reflected in import data
One of TWE's largest customers, an exclusive partner of Rawson's Retreat and lower Luxury brands, addressed this market dynamic by going through a restructure in 1H20; as a result, the customer partnership model for these brands has been broadened to include a wider group of partners
TWE's business model a key to sustainably navigating changing industry trends and macroeconomic cycles

1. IRI Market Advantage, Multi-Outlet + Liquor, 26 and 52 weeks ending 29 December 2019

P A G E 4

Matt Young Chief Financial Officer

1H20 result; key measures of performance1,2

Group NSR (A$m) and NSR per case

Group EBITS (A$m) and EBITS margin

1,507.7 1,536.1

1,294.7 1,295.4

5yr

1,079.4CAGR

+22%

5yr

CAGR

-3%

Return on Capital Employed (ROCE)

Cost of Doing Business (CODB) Margin

Numbers subject to rounding
Prior year comparatives have been restated for the application of AASB16 Leases

P A G E 6

Balance Sheet1,2,3

A$m	1H20	F19	1H19
Restated	Restated

Cash & cash equivalents	335.6	401.8	183.0
Receivables	703.5	662.0	829.1
Current inventories	996.6	1,001.7	1,069.1
Non-current inventories	1,015.3	1,045.6	893.3
Property, plant & equipment	1,420.6	1,398.7	1,440.5
Right of use lease assets	510.1	507.1	505.6
Agricultural assets	39.1	29.4	40.7
Intangibles	1,177.7	1,163.8	1,156.7
Tax assets	171.9	181.0	171.9
Assets held for sale	72.3	78.3	39.1
Other assets	19.5	21.0	17.7
Total assets	6,462.2	6,490.4	6,346.7
Payables	665.6	718.6	745.9
Interest bearing debt	1,155.0	1,165.1	1,128.0
Lease liabilities	636.1	629.5	622.7
Tax liabilities	241.2	289.5	236.9
Provisions	56.6	48.0	49.8
Other liabilities	8.2	8.6	15.2
Total liabilities	2,762.7	2,859.3	2,798.5
Net assets	3,699.5	3,631.1	3,548.2

Efficient and flexible balance sheet maintained

Net assets increased $68.4m on a reported currency basis in 1H20
Key factors driving the movement in net assets included:
- Higher receivables, driven by revenue growth and the weighting of sales to Q2 ahead of key consumption occasions, including Chinese New Year
- Property, Plant & Equipment, which increased following the investment in production assets in the Bordeaux region of France
- Offset by lower cash, payables and inventory
Application of AASB 16 Leases impacted inventory, right of use lease assets, tax assets / liabilities, payables and borrowings

Unless otherwise stated, all balance sheet percentage or dollar movements from the previous period are on a reported currency basis and in respect of the six months from 30 June 2019. Prior year comparatives have been restated for the application of AASB16 Leases
Working capital balances may include items of payables and receivables which are not attributable to operating activities
Interest bearing debt has been increased by $13.2m (1H19: $7.4m decrease, F19: $12.1m increase ) to reflect fair value hedges on a portion of US Private Placement notes

P A G E 7

Inventory analysis

Inventory at book value split by segment1,2,3

Lower

volume, 4.7%

increase in

cost per case

Total inventory increased $49.5m to $2,011.9m
Current inventory declined $72.5m to $996.6m, reflecting:
- Updated forward twelve month sales volume expectations, most notably in the Americas
- Efficient inventory management across parts of the Masstige portfolio
Non current inventory increased $122.0m to $1,015.3m, driven by the high quality, high volume 2019 Australian vintage where Luxury intake was 10% up on prior year
- Efficient inventory management also benefitted non- current inventory, particularly in Masstige
Predominantly third-party sourcing model for Commercial inventory provides flexibility to efficiently respond to changes in demand; TWE is comfortable with the Commercial inventory position
TWE is also comfortable with its Luxury and Masstige inventory position, which will facilitate future growth
2020 Australian vintage expected to be impacted by recent heat and drought conditions

Inventory composition subject to rounding. Totals based on sum of Non-Current and Current Inventory
Prior year has been restated for application of AASB16 Leases
TWE participates in three segments: Luxury (A$20+), Masstige (A$10-A$20) and Commercial (A$5-A$10). Segment price points are retail shelf prices

P A G E 8

Cash flow and net debt1

Solid cash flow generation

Investing for growth2

85.1% cash conversion in 1H20; excluding the net change in non-current Luxury & Masstige inventory cash conversion was 77.5%
Leverage 1.7x, improved from 2.1x in pcp3

A$m	1H20	1H19
IT spend	8.4	7.1
Oak purchases	5.1	15.2
Vineyard redevelopments	17.2	22.3
Upgrades to wine making equipment and facilities	14.4	22.3
Other capital expenditure	6.1	15.1
Total maintenance and replacement capex	51.2	82.0
Vineyard acquisitions	26.8	3.9
Growth initiatives	13.0	7.7
Investment in French production assets	22.2	-
Total growth capex	62.0	11.6
Total capital expenditure	113.2	93.6
Lease Capex Additions	30.9	88.8

Capital expenditure (capex) $113.2m in 1H20, including:
- Maintenance & Replacement capex of $51.2m
- Growth initiatives include investments in South Australian Luxury winemaking assets, acquisition of French production assets and vineyard acquisitions
Lease additions $30.9m, driven by lease extension for South Australian distribution centre
F20 guidance for capex maintained:
- Maintenance & Replacement capex of $100m to $110m
- Growth capex up to $135m, including purchase of French production assets
- Lease additions in the range of $30m to $40m

All cash flow percentage or dollar movements from the previous corresponding period are on a reported currency basis
TWE intends to maintain leasing arrangements for the majority of oak requirements, however per AASB16 Leases, these are deemed low value assets and therefore not treated as a lease liability
Ratio of total net borrowings to last twelve month EBITDAS which includes the addition of depreciation expense incurred in the period; previously TWE was reporting this metric using S&P's lease capitalisation methodology

P A G E 9

Tim Ford Chief Operating Officer

Americas

Outperforming the market in Luxury & Masstige; loss of momentum against challenging conditions

Americas regional performance	Business headlines
	• Performance impacted by a loss of execution momentum,
	contributed to by unforeseen management changes, and the
	persistence of challenging conditions in the US wine market
	which accelerated in Q2 (including the growth of private label
	which grew approximately 15%2)
	• NSR declined 4.2%, driven by lower Commercial volumes
	(down 11%) and increased levels of promotional support to
Historical EBITS and margin performance1	compete with persistent competitor discounting
• Higher COGS per case reflects ongoing impact to US Luxury

A$m	COGS, notably across leased vineyards, and increased costs of
	Australian sourced Commercial inventory

- Strong momentum in premiumisation, with Luxury and Masstige depletions up 10% and 5% respectively versus pcp
- Healthy distribution channels maintained across the portfolio; shipments were in line with depletions in 1H20
- TWE remains confident about both the market and its long- term prospects in the US
- 25% medium-term EBITS margin target maintained
Presented on a reported currency basis, prior year comparatives have been restated for the application of AASB16 Leases
IRI Market Advantage, Multi-Outlet + Liquor, 26 and 52 weeks ending 29 December 2019

P A G E 1 1

Asia

Strong demand and outstanding execution continuing delivery of growth across the region

Asia regional performance

Business headlines

Historical EBITS and margin performance1

A$m

Continued earnings growth delivered across the region, with top-line growth driven by strong demand for TWE's portfolio
Short-termindustry tightening of working capital observed across distributors, wholesalers and retailers, which has impacted TWE's competitors
Volume temporarily impacted due to distribution reset with one large customer who restructured their business:
- Shipments of Rawson's Retreat and some lower Luxury brands were impacted, and have since normalised
- Excluding this, 1H20 region volume and NSR grew 14% and 22% respectively in 1H20
- Forward days inventory cover lower versus prior year as a result, healthy sales channels maintained across region
Strong momentum across premium focused portfolio, with China 1H20 Luxury and Masstige depletions up over 40% versus pcp
Higher CODB reflects ongoing investment in organisational capability and customer pull-through programs throughout the region to support future growth
35%+ EBITS margin guidance maintained

1. Presented on a reported currency basis, prior year comparatives have been restated for the application of AASB16 Leases and transition of the MEA business from Asia to EMEA

P A G E 1 2

Australia & New Zealand

Continued momentum in premiumisation driving margin accretive growth

ANZ regional performance

Historical EBITS and margin performance1

A$m

Business headlines

NSR declined 2.5%, reflecting:
- Reduced Commercial volumes (down 12%), driven primarily by growth in private label and electing to not participate in some lower margin volumes
- Temporary changes in buying patterns from key retailers across parts of the Luxury portfolio as they reshape their portfolio strategy with respect to liquor
COGS per case higher, reflecting mix improvement and higher COGS on Australian sourced Commercial wine
Lower CODB due to benefits realised from the Simplify for Growth program, and continued cost and investment discipline
TWE is growing well ahead of the market in both the Masstige and Luxury categories, with key focus brands including Penfolds, Wolf Blass, Squealing Pig, 19 Crimes and The Stag delivering top-line growth
Continue to focus on maintaining 25%+ EBITS margin in F20, along with 25% market share target in Australia (current value share 22%2)

Presented on a reported currency basis, prior year comparatives have been restated for the application of AASB16 Leases
Aztec sales value data, bottled and canned wine only, Australia Liquor Weighted, Scan 26 weeks to 22 December 2019

P A G E 1 3

Europe, Middle East & Africa

Masstige-led growth offset by high Australian Commercial COGS; mid-teens EBITS margin maintained

EMEA regional performance	Business headlines
	• NSR decline of 0.8% reflects reduced Commercial volumes
	particularly in MEA and Continental Europe, partly offset by
	Masstige-led portfolio premiumisation in UK and Nordics
	• COGS per case higher, reflecting mix shift and pricing
	pressure on Australian and US sourced commercial wine
	• Lower CODB due to continued cost and investment discipline
Historical EBITS and margin performance1	• Focus on maintaining mid-teen EBITS margin in F20 through
continued premiumisation and cost efficiency

A$m

1. Presented on a reported currency basis, prior year comparatives have been restated for the application of AASB16 Leases and transition of the MEA business from Asia to EMEA

P A G E 1 4

Michael Clarke Chief Executive Officer

Performance scorecard

Areas performing to expectation

TWE's global self-distribution business model and premiumisation strategy across all markets
Multi-regionalsourcing to de-risk supply
Multi-regionalselling to de-risk earnings
Luxury and Masstige growth delivering margin accretive growth in Asia
Luxury and Masstige growth delivering margin accretive growth in ANZ
Luxury and Masstige growth ahead of the market in the US
15% margin maintained in EMEA

Areas to be addressed

Re-buildmomentum in the US market, with full Americas leadership team now in place
Commercial trends and COGS pressures, globally
Manage our global Commercial wine business differently

P A G E 1 6

Summary and outlook

1H20 result reflects momentum behind premiumisation, across all regions, and the strength of TWE's diversified global model
Strong performances delivered across Asia, ANZ and EMEA, and in the Americas, within Luxury and Masstige - all areas where TWE is gaining momentum and delivering improving financial returns
TWE expects to re-gain momentum and return the Americas region to growth once challenging market conditions subside
Strategic review of operating model underway, focused on opportunities to accelerate returns from premiumisation and managing the Commercial wine business differently
TWE now expects reported EBITS growth of 5% to 10% in F201:
- EBITS growth expectations exclude any potential impacts of the recent coronavirus outbreak. TWE's primary focus is the safety and wellbeing of its people, all of whom are well, in good spirits and currently working from home pending their return to the office later in February. While at this stage it is too early to assess financial impacts, should there be a sustained material impact on consumption, this would impact F20 earnings
- TWE notes that Asia is a predominantly Luxury wine sales region, and that it has the flexibility to allocate Luxury wines to later fiscal periods and other geographies in order to deliver sustainable earnings growth. Importantly, TWE remains excited by the significant long-term opportunity in the Asia region. Through its proven strategy, advantaged business model and strong commitment to its partners, brands and people, TWE is well placed to capitalise on long-term opportunities, not only across the Asia region, but globally
For F21, TWE expects reported EBITS growth of approximately 10% to 15%2:
- Reflects continued premiumisation and availability of Luxury wine
- Balanced against risks associated with challenging US wine market conditions persisting into F21, and potential impacts from the 2020 Australian vintage
- Excludes any initiatives from strategic review to manage Commercial wine business differently, which TWE expects would deliver meaningful benefits in future

Assuming no material changes due to foreign exchange movements and does not include one-off charges of $35m associated with the expansion of Luxury winemaking infrastructure in South Australia. Base F19 comparative EBITS $681.4m, restated for the application of AASB16 Leases
Assuming no material changes due to vintage or foreign exchange movements

P A G E 1 7

Volume

Volume, m 9Le)	1H20	1H19	%
Americas	7.0	7.4	(6.4)%
Asia	2.0	2.2	(10.0)%
EMEA	4.6	4.7	(1.4)%
ANZ	4.1	4.3	(6.4)%
TWE EBITS	17.7	18.6	(5.6)%

Americas: Lower volume driven by a 10% decline in Commercial volumes, partly offset by higher Luxury volumes
Asia: Volume decline largely the result of lower shipments to one large customer for Rawson's
Retreat and some lower Luxury brands. TWE has re-set its customer partnership model to better balance the distribution of these brands, which has since normalised. Excluding the impact of this one customer, Asia regional volume grew 14%
ANZ: Volume decline due to reduced Commercial volumes and temporary changes in buying patterns from key retailers across parts of the Luxury portfolio
EMEA: Volume decline driven by reduced Commercial volumes, particularly in MEA and Continental Europe, and partly offset by Masstige-led growth in UK and the Nordics

P A G E 2 0

Capital Management

Disciplined approach to capital management

Investment grade credit metrics maintained:
Net debt / EBITDAS 1.7x at 1H201; reduction of 0.4x vs 1H19
Interest cover of 12.4x
Continued focus on delivering shareholder returns in a disciplined and sustainable manner:
- F20 interim dividend of 20.0 cents per share declared, fully franked, representing a 62.7% NPAT payout ratio2

Maintenance of flexible and efficient financing program

Refinanced US$ syndicated term loan via extension of
US$230m tranche, restoring the original seven year term along with reduction to facility margin
Reduction of existing Bilateral bank debt facilities $100m in line with review for requirement of debt funding capacity through a five-year plan horizon
Average duration of commitments rebalanced to 4.5 years
Available liquidity comprising cash of $335.6m and undrawn committed debt facilities of $721.8m

Maturity profile - committed debt facilities

Ratio of total Net Borrowings to last twelve-month EBITDAS, including the addition of depreciation expense attributable to leases incurred in the period; previously TWE was reporting this metric using S&P's lease capitalisation methodology
TWE targets an dividend payout ratio of 55-70% of NPAT (pre-material items and SGARA) over a fiscal year

P A G E 2 1

Impact of foreign exchange rate movements & hedging

1H20 constant currency impact

CFX Impact (A$m)

Currency	Underlying	Hedging1	Total
AUD/USD and AUD/GBP	14.6	(0.4)	14.2
Net other currencies	(4.9)	0.0	(4.9)
1H20	9.7	(0.4)	9.3
AUD/USD and AUD/GBP	15.4	(3.0)	12.4
Net other currencies	(7.9)	(0.6)	(8.5)
1H19	7.5	(3.6)	3.9

$9.3m constant currency foreign exchange benefit in 1H20 (comprising transaction and translation impacts)
TWE has a diversified portfolio of currency exposures where production cost currencies and revenue generating currencies are not matched
- $14.6m benefit from depreciation of the AUD relative to the main currency pairs (USD and GBP), offset by $4.9m adverse revenue impact largely reflecting movements in TWE's primary revenue currencies2
- $0.4m relative impact from hedging in 1H20 versus the prior year ($1.4m realised loss in 1H20 vs $1.0m loss in the prior year based on constant currency basis)

2H20 EBITS sensitivity and risk management

Currency	Primary	Movement	EBITS
Pair	Exposure	Sensitivity (A$m)


AUD/USD	COGS, EBITS	+1%	(1.7)

AUD/GBP	COGS, EBITS	+1%	(0.8)

CAD/USD	NSR	+1%	0.5

EUR/GBP	NSR	+1%	0.6

USD/GBP	COGS	+1%	(0.2)

The sensitivity of EBITS to a 1% change in primary cost and revenue currencies is shown in the accompanying table (excludes potential impact of currency hedging)
TWE maintains an active foreign exchange risk management strategy, focused on the transactional exposures associated with the Commercial and lower Masstige price segments:
- AUD/GBP: c.70% of 2H20 exposure protected against appreciation of the exchange rate above 0.54
- AUD/USD: c.62% of 2H20 exposure protected against appreciation of the exchange rate above 0.71

CFX hedging impact relative to the prior year
USD relative to the CAD in the Americas, GBP relative to the EUR, SEK and NOK in Europe, AUD relative to the CNY and SGD in Asia

P A G E 2 2

Disclaimer

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 with TWE's other announcements filed with the Australian Securities Exchange, which are available at www.asx.com.au.

No representation is made as to the accuracy, completeness or reliability of this presentation.

Exchange rates

Average exchange rates used for profit and loss purposes in the 1H20 results are: $A1 = $US 0.6844 (1H19: $A1 = $US 0.7245), $A1 = GBP

0.5436 (1H19 $A1 = GBP 0.5597). Period end exchange rates used for balance sheet items in 1H20 results are: $A1 = $US 0.6994 (1H19 $A1 = $US 0.7044), $A1 = GBP 0.5333 (1H19 $A1 = GBP 0.5547).

Forward looking statements

This presentation contains forward looking statements, which may be identified by the use of terminology including 'expects', 'believes', 'targets', 'likely', 'should', 'could', 'intends', 'aims' or similar expressions. Indicators of and guidance on future earnings and financial position

are also forward looking statements. These forward looking statements are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of TWE, and which may cause actual results to differ materially from those expressed or implied in such statements. Readers are cautioned not to place undue reliance on forward looking statements.

Except as required by applicable regulations or by law, TWE does not undertake any obligation to publicly update or review any forward looking statements, whether as a result of new information or future events.

Past performance

Past performance information included in this presentation is for illustrative purposes only and cannot be relied on as a guide to future performance.

No offer of securities

Nothing in this presentation should be construed as either an offer or a solicitation of an offer to buy or sell TWE securities, or be treated or relied upon as a recommendation or advice by TWE.

P A G E 2 3

Attachments

Original document
Permalink

Disclaimer

Treasury Wine Estates Limited published this content on 12 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 February 2020 08:18:02 UTC

Market Closed - Australian S.E. Other stock markets 01:59:59 2024-05-06 am EDT			5-day change	1st Jan Change
11.38 ^AUD	+0.71%		-5.01%	+5.57%

Apr. 19	Qantas Airways' New Chairman-Elect Assumes Role Ahead of Schedule	MT
Apr. 05	China's crowded wine market offers no lifeline for struggling global industry	RE

Qantas Airways' New Chairman-Elect Assumes Role Ahead of Schedule	Apr. 18	MT
China's crowded wine market offers no lifeline for struggling global industry	Apr. 04	RE
Treasury Wine Estates Limited agreed to acquire 2,799 megalitres of NSW high security water entitlements from Duxton Water Limited.	Apr. 04	CI
Jarden Adjusts Treasury Wine Estates Price Target to AU$14.50 from AU$12.90, Keeps at Overweight	Apr. 02	MT
Treasury Wine gains on plans to resume distribution in China after import tariffs end	Apr. 02	RE
Treasury Wine to resume distribution in China after import tariffs end	Mar. 28	RE
Treasury Wine to focus on China distribution after removal of wine import tariffs	Mar. 28	RE
Treasury Wine Estates Appoints Season Global Trading Pte. Ltd. as the Exclusive Agency for the Distribution of its Penfolds Champagneseries Across China	Mar. 22	CI
Chinese foreign minister to visit Australia next week, Guardian reports	Mar. 13	RE
Australian shares tick higher as banks gain	Mar. 12	RE
End of Chinese tariffs on Australian wine looms as key ministry proposes removal	Mar. 12	RE
China ambassador says Australia wine tariff review on track	Mar. 10	RE
Australian farmers rip out millions of vines amid wine glut	Mar. 09	RE
Australian farmers rip out millions of vines amid wine glut	Mar. 08	RE
Qantas Airways Appoints Chairman-Elect	Feb. 21	MT
Qantas names John Mullen new chairman as airline looks to restore reputation	Feb. 20	RE
Qantas Airways appoints John Mullen as new chairman	Feb. 20	RE
Qantas appoints John Mullen as chairman-elect	Feb. 20	RE
Australian wine makers bet on expected China reopening with big shipments to Hong Kong	Feb. 16	RE
Jarden Adjusts Treasury Wine Estates’ Price Target to AU$12.90 From AU$12.30, Keeps at Overweight	Feb. 15	MT
Treasury Wine Estates Reports Decline in Profit in H1 FY24	Feb. 15	MT
News Highlights : Top Company News of the Day - Wednesday at 11 PM ET	Feb. 14	DJ
News Highlights : Top Company News of the Day - Wednesday at 9 PM ET	Feb. 14	DJ
Australia's Treasury Wine jumps as profit meets view; China tariff review in focus	Feb. 14	RE
News Highlights : Top Company News of the Day - Wednesday at 7 PM ET	Feb. 14	DJ

	1st Jan change	Capi.
TREASURY WINE ESTATES LIMITED	+5.57%	6.06B
YANTAI CHANGYU PIONEER WINE COMPANY LIMITED	-0.08%	1.8B
THE DUCKHORN PORTFOLIO, INC.	-20.20%	1.15B
VIÑA CONCHA Y TORO S.A.	+24.70%	1.02B
CITIC NIYA WINE CO., LTD.	-21.88%	953M
C&C GROUP PLC	+9.17%	813M
LAURENT-PERRIER	0.00%	771M
SULA VINEYARDS LIMITED	+9.95%	555M
DELEGAT GROUP LIMITED	-7.69%	365M
LANSON-BCC	+8.54%	318M

Treasury Wine Estates Limited

Equities

TWE

AU000000TWE9

Distillers & Wineries

Treasury Wine Estates : F20 Interim Results Announcement and Investor and Analyst Presentation 12 February 2020

Latest news about Treasury Wine Estates Limited

Chart Treasury Wine Estates Limited

Company Profile

Income Statement Evolution

Ratings for Treasury Wine Estates Limited

Analysts' Consensus

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Wineries