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    TWE   AU000000TWE9

TREASURY WINE ESTATES LIMITED

(TWE)
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Treasury Wine Estates : Acquisition of Frank Family Vineyards Investor Presentation

11/17/2021 | 04:42pm EST

For personal use only

18 November 2021

ASX ANNOUNCEMENT

Acquisition of Frank Family Vineyards Investor

Presentation

Enclosed are the presentation materials for the investor and analyst webcast and conference call to be hosted by Treasury Wine Estates commencing at 10:00am (AEDT) on 18 November 2021. Links to register for the conference are provided in the announcement titled 'TWE Announces Acquisition of Frank Family Vineyards' also lodged with the ASX today.

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

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

onlyuse Acquisition of Frank ersonalFamily Vineyards

18 NOVEMBER 2021

Important information

The acquisition of Frank Family Vineyards ('FFV') by Treasury Wine Estates Limited ('TWE') as outlined in this presentation ('Transaction') is subject to the satisfaction or waiver of conditions precedent. Details of the key terms of the Transaction are outlined in the ASX announcement 'TWE announces the acquisition of Frank Family Vineyards' released on 18 November 2021.

Information

The material in this presentation is summary information about the Transaction, 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

onlyreliability of this presentation. This presentation should not be relied upon as a recommendation or forecast by TWE.

This presentation has been prepared by TWE and includes information provided by FFV ("FFV Information"). Additionally, TWE has undertaken a due diligence process in respect of the Transaction, which relies in part on the review of FFV Information. Although TWE has taken steps to confirm the FFV Information, it has not independently verified it and expressly disclaims any responsibility for it, to the maximum extent permitted by law. No representation or warranty, express or implied, is made as to the fairness, currency, accuracy, adequacy, reliability or completeness of the FFV Information. If any

i formation provided to, and relied upon by, TWE in its due diligence and its preparation of this presentation proves to be incorrect, incomplete, absent or misleading, there is a risk that the actual financial position and performance of FFV's business (and TWE following acquisition) may be materially different to the expectations reflected in this presentation.

Certain market and industry data used in this presentation may have been obtained from research, surveys or studies conducted by third parties, including industry or general publications. Neither TWE nor its representatives or advisers have independently verified any market or industry data provided by third parties or industry or general publications.

useTo the maximum extent permitted by law, TWE and its related bodies corporate and affiliates (and each of their respective directors, officers, employees, partners, consultants, contractors, agents, advisers and representatives) exclude and expressly disclaim all duty and liability (including for fault or negligence) for any expenses, losses, damages or costs incurred by you as a result of the information in this pr s ntation being inaccurate or incomplete in any way for any reason.

Forward looking statements

This presentation contains certain forward looking statements, which may be identified by the use of terminology including but not limited to, 'intend', 'target', 'likely', 'could', 'aim', 'project', 'see', 'anticipate', 'estimate', 'plan', 'objective', 'believe', 'expect', 'may', 'should', 'will', 'would', 'continue' or similar words. Indicators of and guidance on future earnings and financial position, performance, illustrations of projected revenue contributions, internal management estimates, TWE's future developments and the market outlook are also forward-looking statements.

These forward looking statements are based on the information available as at the date of this presentation and are not guarantees or predictions of future performance and involve known and unknown ersonalrisks, 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.

Re ders are cautioned against reliance on any forward-looking statements or guidance, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption arising in connection with COVID-19. Except as required by applicable regulations or by law, TWE does not undertake to publicly update or review any forward-looking statements, whether as a result of new

i formation or future.

No guarantee, representation or warranty, express or implied, is made as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in this presentation. Past performance and pro forma historical information is given for illustrative purposes only. It should not be relied on and is not indicative of future perf rmance.

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. You should seek independent investment, legal, tax, accounting or such other advice as you consider appropriate before making any financial or investment decisions.

2

Transaction highlights

Treasury Wine Estates has reached an agreement to acquire

Frank Family Vineyards ("FFV")

An iconic and highly acclaimed luxury wine business based in

the Napa Valley, California

A strong track record of growth with a compelling 35-40% EBITS

margin

Highly complementary to the Treasury Americas portfolio, filling

onlyan existing gap for luxury chardonnay

Treasury Americas is well-placed to enhance FFV's growth

given its leading luxury sales credentials, national distribution

network and Californian asset base and sourcing model

Transaction value US$315m (A$432m1), implying an EV / F21

useEBITDAS acquisition multiple of 13.2x

EPS accretive from the acquisition date2, with EBITS growth

expected for FFV from F23, the first full year of ownership

To be funded via a combination of debt and cash, including the

proceeds of recent US asset divestments

Acquisition expected to complete in December 2021, with a

commitment to genuine ongoing involvement in the Treasury

Americas business by FFV's founders

3

1

At 0.73 AUD/USD exchange rate 2 Before material items and SGARA

ersonal

US wine market opportunity

The world's largest wine market, where growth is being led by the luxuryprice points

Ten year US wine market evolution (2015-2025F)1

Key Luxury market varietals by size2

only

1.8

10yr CAGR

Other varietals

Luxury

+6.3%

20%

20%

1.6

Cabernet

Premium

Sauvignon

37%

Sauvignon

use2015=1.0Index:

58%

1.4

+5.6%

Blanc

6%

1%

1.2

Pinot Noir

10%

4%

ersonal

1.0

11%

16%

(1.5)%

Red Blends

Chardonnay

Commercial

0.8

9%

8%

Actual

Forecast

Key TWE

0.6

portfolio gap

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Contribution to Treasury Americas F21 Luxury NSR

4

1 IWSR 2021. Still, sparkling and fortified wine

2 IRI Market Advantage, MULO+Convenience, Still wine, 52 weeks ending 3 October 2021 (US$20+ retail price)

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Treasury Wine Estates Limited published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 21:40:39 UTC.


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Tim Ford Chief Executive Officer, Director & MD
Matthew Young Chief Financial Officer
Paul Ashley Rayner Chairman
Warwick Lynton Every-Burns Independent Non-Executive Director
Garry Arthur Hounsell Independent Non-Executive Director