• Category dynamics have weakened in recent months, particularly in the US and China
• TWE to take deliberate strategic action to ensure the strength of its brands and health of its sales channels
• 1H26 EBITS expected to be in the range of $225-235m; 2H26 EBITS expected to be higher

TWE announces an investor update and 1H26 outlook presentation, noting that category dynamics have weakened in recent months, particularly in the US and China. This has resulted in customer inventory holdings in China and the US being above optimal levels, while parallel import activity is causing ongoing disruption to Penfolds pricing in China. TWE will take deliberate strategic action to ensure the strength of its brands and health of its sales channels, including reducing customer inventory holdings in the US and China, and significantly restricting shipments contributing to parallel import activity in China. 1H26 EBITS is expected to be in the range of $225-235m, with 2H26 EBITS expected to be higher than 1H26, excluding the benefit of any potential settlement with RNDC. Leverage is expected to be above the 1.5-2.0x target range for approximately two years, with TWE pursuing a range of operational and strategic initiatives to ensure the strength and flexibility of its capital structure. TWE is also implementing an organization-wide transformation program, TWE Ascent, to position the business for long-term success, targeting $100m per annum cost improvement with initial benefits commencing in F27.

1H26 EBITS expected to be in the range of $225-235m; 2H26 EBITS expected to be higher than 1H26, excluding the benefit of any potential settlement with RNDC.

TWE is confident that it will be well-positioned to deliver sustainable, profitable growth, supported by strong business foundations and the implementation of its TWE Ascent transformation program.