Investor Update and 1H26 Outlook

• Category dynamics have weakened in recent months, particularly in the US and China
• TWE will take strategic action to reduce customer inventory holdings and restrict shipments contributing to parallel import activity in China
• 1H26 EBITS expected to be in the range of $225m to $235m

Treasury Wine Estates Limited (ASX:TWE) has provided an update on performance expectations, reflecting recent market conditions and incorporating actions the Board and new CEO have decided upon to ensure TWE remains positioned for sustainable, profitable growth. The key messages include: Category dynamics have weakened in recent months, particularly in the US and China, with near-term improvement now expected to be unlikely, resulting in depletion growth expectations being moderated. These dynamics have led to 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 reduce customer inventory holdings in the US and China, and significantly restrict shipments that are contributing to parallel import activity in China, to protect the strength of the Penfolds brand. 1H26 EBITS is expected to be in the range of $225m to $235m, with 2H26 EBITS expected to be higher than 1H26. Leverage is expected to be above the 1.5-2.0x target range for approximately two years, with a range of operational and strategic initiatives to be considered to ensure the strength and flexibility of TWE's capital structure. TWE is implementing an organisation-wide transformation program, TWE Ascent, designed to position the business for long-term success and to realise material cost benefits, targeting $100m per annum in cost improvement.

1H26 EBITS expected to be in the range of $225m to $235m. 2H26 EBITS expected to be higher than 1H26. Leverage expected to be approximately 2.5x at 1H26 and above the 1.5-2.0x target range for approximately two years.

TWE is implementing a transformation program, TWE Ascent, designed to position the business for long-term success and to realise material cost benefits, targeting $100m per annum in cost improvement.