1.

Analysis of financial statements:

- Revenue: From FY2023 to FY2026, the company's revenue increased somewhat, although it
remained relatively consistent over the projected years.
- Gross Profit: A good trend in gross profit also indicates improvements in margins and
operational efficiency.
- EBITDA: The company's operating performance appears to be improving as EBITDA is also
rising.

2. Operating Expenses: SG&A and Other Operating Expenses appear to be consistent throughout
the anticipated time, suggesting consistent cost control.
- Amortization and depreciation: Both costs are consistent, which is normal for a business in the
wine sector.

3. Taxes and Income:

- Profit Before Tax: A consistent increase in the company's profit before tax indicates that
profitability is improving.
- Income Tax Expense: In keeping with the profit levels, the tax expense likewise looks
appropriate.

4. Interest and Additional Revenue or Expense:

- Interest Income/Expense: The company's interest expenses are rising, which could be a sign of
rising debt or higher borrowing rates.

5. Net Profit: - Overall growth and better financial performance are reflected in the net profit,
which is also trending upward.

Methods of Valuation:
1. DCF Analysis: Based on Treasury Wine Estates' anticipated cash flows and discount rate, a
DCF analysis would be appropriate to ascertain the company's intrinsic value.

2. Comparable Company Analysis (CCA): Evaluation of relative valuation measures through

comparison with comparable businesses in the industry.

3. Asset-Based Valuation: To calculate book value, evaluate the company's assets and liabilities.

Treasury Wine Estates seems to be functioning profitably and steadily, putting it in a healthy
financial position. A more thorough examination with the previously described methods of
valuation can yield an accurate assessment of the business.

Financial Ratios Calculation for Treasury Wine Estates

1. Sales Growth:
- FY2022: -3.62%
- FY2023: -2.17%
2. Gross Margin:
- FY2021: 35.43%
- FY2022: 39.90%
- FY2023: 41.65%

3. SG&A Expenses / Sales:

- FY2021: 34.08%
- FY2022: 34.85%
- FY2023: 39.55%

4. Depreciation Expense / PPE (Closing Balance):

- FY2021: 7.59%
- FY2022: 6.75%
- FY2023: 6.74%

5. Amortization Expense / Intangible Assets (Closing Balance):

- FY2021: 1.86%
- FY2022: 1.56%
- FY2023: 2.74%

6. Effective Interest Rate:

- FY2021: 7.00%
- FY2022: 7.34%
- FY2023: 7.86%

Analysis:

- Sales Growth: The company's sales growth decreased in FY2022 and FY2023, which could be
attributed to a difficult market environment or problems unique to the business.

- Gross Margin: The gross margin has been steadily rising, hitting 41.65% in FY2023; this could
indicate improved pricing power or better cost control.

- SG&A Expenses: Over the course of the predicted years, the SG&A expenses as a proportion
of sales have increased, which may be a sign that greater overhead costs are having an effect on
profitability.

- Amortization and Depreciation Expenses: Consistent asset management is demonstrated by the

relatively stable amortization and depreciation expenses for both intangible and property, plant,
and equipment (PPE).

- Effective Interest Rate: The company's debt structure may have changed or interest costs may
have increased as the effective interest rate has increased over time.
insights:

Positive signs for the business include its increasing gross margin and steady asset-related
expenses. Nonetheless, the company's financial stability and profitability may be impacted by
the rising SG&A costs and effective interest rate.
- Understanding the company's overall performance and financial prospects would require
further examination of the causes of the declining sales and rising expenses.

Recommendations:

- Determine the issues behind the sales fall and address them aggressively.
- Track and control SG&A spending to boost operational efficiency and profitability.
- Consider refinancing or modifying debt structure to reduce the impact of rising interest rates.

By thoroughly analyzing these financial parameters, you can acquire significant insights about
Treasury Wine Estates' operational success and financial health.

Further Analysis and Interpretation:

1. Sales Growth: The company had negative sales growth in all three anticipated years. The
diminishing trend could signal hurdles in market demand or internal operational issues that must
be addressed.

2. Gross Margin: In FY2023, the gross margin reached 41.65%, an improvement from the
previous three years. This suggests that the company is effectively managing its sales costs and
has the ability to increase its pricing power.

3. SG&A Expenses: - In FY2023, SG&A expenses reached 39.55% of sales, indicating a

growing trend. This tendency indicates that the organization may need to focus on cost-cutting
strategies in order to enhance efficiency.

4. Depreciation Expense: The depreciation expense for property, plant, and equipment (PPE) has
been stable over the anticipated years, demonstrating sustained capital spending and asset
management.

5. Amortization Expense: In FY2023, the amortization expense for intangible assets has
increased. This could be attributed to the acquisition of additional intangible assets or changes in
the amortization schedule.

6. Effective Interest Rate: - The company's overall debt has an increasing effective interest rate,
potentially leading to greater interest payments. This trend emphasizes the significance of good
debt management in order to control financing charges.

Recommendations:
1. Improve Sales Growth: - Analyze market conditions and client preferences to uncover chances
for increased sales.

2. Cost Management: Implement cost-cutting initiatives to reduce SG&A expenses and boost
operational efficiency.

3. Debt Management: - Consider refinancing or negotiating better terms with lenders to reduce
the impact of rising effective interest rates.

Treasury Wine Estates can improve its financial performance and achieve long-term success by
focusing on these important financial measures and executing the advice.

Relevant Items Used for Forecasting Income Statements and Balance Sheet

Balance Sheet Items:

1. Property, Plant, and Equipment (PPE) (Closing Balance):

- FY2020: $1,770.90
- FY2021: $1,956.80
- FY2022: $1,966.50
- FY2023: $XXXX.XX (Value not provided)

2. Intangible Assets (Closing Balance):

- FY2020: $878.00
- FY2021: $1,062.80
- FY2022: $1.06290
- FY2023: $XXXX.XX (Value not provided)

3. Total Debt (Closing Balance):

- FY2020: $1,925.60
- FY2021: $1,527.80
- FY2022: $1,673.70
- FY2023: $1,937.60

Sundry Items:

1. Effective Tax Rate:

- FY2020: 22.53%
- FY2021: 28.64%
- FY2022: XX.XX% (Value not provided)
- FY2023: XX.XX% (Value not provided)

2. Corporate Tax Rate:

 - FY2020: 30.00%
- FY2021: 30.00%
- FY2022: 30.00%
- FY2023: 30.00%

Analysis and Interpretation:

1. PPE: - The value of PPE has risen over time, signaling prospective investments in fixed assets
to support business operations and expansion.

2. Intangible Assets: - Growth in intangible assets can be attributed to acquisitions, intellectual

property development, and strategic efforts.

3. Total Debt: - Debt levels have fluctuated over the years. An increase in debt may imply
financial actions to support corporate growth or operations.

4. Effective Tax Rate: The effective tax rate has fluctuated, but is expected to rise significantly in
FY2021. Understanding the causes of these swings is critical for tax planning and compliance.

5. Corporate Tax Rate: The company's corporate tax rate remains consistent at 30%, which is the
standard statutory rate in many jurisdictions.

Recommendations:

1. Asset and Debt Management: - Monitor and manage property, plant, equipment, intangible
assets, and total debt to make informed funding and investment decisions.

2. Tax Planning: - Evaluate factors affecting effective tax rate variations and develop measures
to maximize tax liabilities and compliance.

Treasury Wine Estates may make educated decisions about investment, financing, tax
management, and overall financial success by factoring in these balance sheet components and
other variables during the forecasting process.

Overview:
Investors contemplating Treasury Wine Estates should do a thorough review of the company's
financial statistics and projections before making any investment decisions. Here are some
comprehensive recommendations based on the available data:

Monitor the company's efforts to increase sales growth rates, as recent negative growth trends
may present issues. Understand the initiatives in place to boost revenue and market expansion.

Evaluate the increasing gross margin trend and the effectiveness of cost-cutting methods.
Monitor the SG&A spending ratio to guarantee effective operational management and
profitability.

Analyze trends in property, plant, equipment, and intangible assets to make investment decisions.
Keep track of the company's overall debt and effective interest rates to better understand its
financial leverage and risk exposure.

Given the variations in effective tax rates, investors should analyze how tax planning tactics
affect the company's bottom line. Understanding corporate tax rates can shed light on the
company's tax responsibilities and compliance.

Assess the company's future growth potential, market position, and competitive landscape.
Consider industry trends, consumer preferences, and possible expansion opportunities when
assessing a company's long-term viability and development prospects.

Identify and evaluate important risks such as market volatility, regulatory changes, competitive
challenges, and macroeconomic conditions that may affect the company's performance. Develop
risk-mitigation techniques to protect investments.

Use financial measures, valuation tools, and market comparable to calculate the company's
intrinsic worth. Develop a well-defined investment thesis based on extensive financial analysis
and market research.

Investing in Treasury Wine Estates involves a comprehensive approach that includes financial
research, risk evaluation, and market forecast. By following the thorough suggestions and
remaining up to date on the company's financial performance and strategic direction, investors
may make well-informed selections that are consistent with their investment objectives and risk
tolerance. Due diligence and getting guidance from financial professionals can help improve
investment selections.