Vina Concha y Toro S.A. · BCS:CONCHATORO
Vina Concha y Toro — Q2 2014 Earnings Presentation
27 slides from Vina Concha y Toro's earnings presentation, Sep 5, 2014
Slide 1: Investor Presentation – 2Q14 & 6M14 Results
Investor Presentation – 2Q14 & 6M14 Results September 5, 2014
Slide 2: 2Q & 6M 2014 Results
2Q & 6M 2014 Results
Slide 3: Performance 2Q & 6M 2014
Performance 2Q & 6M 2014 Income Statement 2Q14 2Q13 Change % 6M14 6M13 Change % Sales (Ch$ million) $ 142.857 $ 110.245 29,6% $ 257.201 $ 201.326 27,8% Exports * (Ch$ million) $ 104.855 $ 70.592 48,5% $ 183.852 $ 130.034 41,4% Exports * (US$ million) $ 189 $ 146 29,7% $ 331 $ 271 22,3% % Exports 73,
Slide 4: Performance 2Q & 6M 2014
Performance 2Q & 6M 2014 Consolidated Sales Operating Income (million Ch$) (million Ch$) Consolidated EBITDA Consolidated Net Profit (million Ch$) 4
Slide 5: Consolidated Sales
Consolidated Sales Consolidated Sales (million Ch$) Consolidated Volume (million 9 liter cases, Wine) 5
Slide 6: Export Sales
Export Sales Export Sales Export Volume (million Ch$) (thousand 9 liter cases) +41.4% +18,8% Average Export Price Premium Wines Export Volume (US$ / 9 liter Case) (thousand 9 liter cases) +2.6% +29.1% 6
Slide 7: Leading Position Over Chilean Exports
Leading Position Over Chilean Exports CyT Exports of Bottled Wine Chilean Destination of Bottled Exports Volume Value 2004 29.2% 25.8% 2005 32.2% 27.2% 2006 33.4% 28.3% 2007 34.9% 30.2% 2008 37.0% 31.4% 2009 38.3% 32.3% 2010 36.6% 31.5% 2011 33.7% 29.7% 2012 35.4% 31.3% 2013 33.9% 30.5% 3M 2014 32.0
Slide 8: Leading Position Over Chilean Exports
Leading Position Over Chilean Exports Share over chilean Rank Growth % Part of CyT in total Rank CyT over Country bottled exports 2014 2014/2013 chilean bottled exports Chilean Exports (volume) 1 USA 13.7% -9.6% 38.7% 1 2 United Kingdom 13.4% -20.2% 42.4% 1 3 Japan 9.8% 19.4% 29.4% 1 4 Brazil 7.7% 2
Slide 9: Concha y Toro Export Growth by Region
Concha y Toro Export Growth by Region Mix of Export Sales % Change Volume Region 2011 2012 2013 6M 2014 2011 2012 2013 6M 2014 U.K. 25.3% 26.8% 25.8% 28.8% -9.1% 8.5% -0.8% 36.2% Continental Europe 18.5% 18.2% 18.6% 16.2% -7.0% 1.0% 4.0% -0.1% Nordics (SWE, FIN, NOR) 4.8% 4.9% 5.1% 5.9% -5.2% 6.0% 5
Slide 10: Distribution Subsidiaries: Driving the Growth
Distribution Subsidiaries: Driving the Growth 10
Slide 11: Domestic Market - Chile
Domestic Market - Chile Domestic Market – Wine Sales Domestic Market – Wine Volume (million Ch$) (Thousand Liters) CAGR: -1.0% +4.5% +8.4% Premium Wine Growth % Premium/ % Premium/ (Thousand Liters) Year Total Volume Total Value 2006 3.1% 13.0% 2007 2.7% 13.2% 2008 3.1% 15.2% 2009 3.5% 16.3% +10.5%
Slide 12: Sales Disclosure
Sales Disclosure Sales Breakdown by Origin Sales Breakdown by Currency Currency Mix 6M14 6M13 CLP 19.0% 21.4% USD 33.7% 35.1% GBP 20.7% 15.8% EUR 10.8% 9.8% CAD 3.0% 2.7% ARG 0.6% 1.5% SEK 3.2% 3.1% NOK 0.9% 1.0% BRL 5.7% 6.8% • Export Markets include exports to third parties and distribution MXN 2.
Slide 13: Consolidated EBITDA
Consolidated EBITDA Consolidated EBITDA (million Ch$) CAGR: 6.6% +103.1% Consolidated Mg. EBITDA (% of Sales) 13
Slide 14: Key Factors over EBITDA Performance
Key Factors over EBITDA Performance 1- Increase in Commercialized Volume 2- Higher Exchange Rate 3- Lower Cost of Wine 14
Slide 15: Exchange Rate Main Producers
Exchange Rate Main Producers Currencies against USD TCR (base 100: 1986) – Tipo de Cambio Observado 15
Slide 16: Significant shift in Chilean bulk wine price curve
Significant shift in Chilean bulk wine price curve Chilean Bulk Wine Price (Cabernet Sauvignon, Maule Valley) Source: ODEPA 16
Slide 17: Chilean Harvest Through the Years
Chilean Harvest Through the Years Historical Harvest Volume (Million Liters) Source: SAG 17
Slide 18: Consolidated Net Profit
Consolidated Net Profit Consolidated Net Profit (million Ch$) CAGR: 10.8% +106.2% 18
Slide 19: Financial Position
Financial Position
Slide 20: Conservative Capital Structure
Conservative Capital Structure Financial Debt / Equity Total Liabilities / Equity 1,4(*) Net Financial Debt / EBITDA (1) EBITDA (1)/ Financial Expenses(1) 2,5(**) Liabilities: Current Liabilities + Non Current Liabilities Financial Debt: Other current financial liabilities + Other non current financ
Slide 21: Financial Debt
Financial Debt Financial Debt* as of: Jun-14 Jun-13 Ch$ MM Av. Interest rate Ch$ MM Av. Interest rate USD 133,881 3.02% 141,052 3.01% EUR 2,132 1.32% GBP 3,121 1.49% CLP 9,714 4.10% 2,500 5.58% UF 81,963 3.74% 80,656 3.74% ARS 5,296 17.98% 8,435 15.53% BRL 8,867 11.63% 8,074 10.00% MXN 1,290 6.34% S
Slide 22: Financial Debt
Financial Debt Financial Debt by Currency As of June 30, 2014 (1) Source: The Company (1) Considers current and non current financial liabilities excluding derivatives 22
Slide 23: Financial Debt
Financial Debt Expected Maturity Date(1), as of June 30, 2014 (Million Ch$) * Source: The Company (1) Considers current and non current financial liabilities excluding derivatives * EBITDA, Last 12 Months (as of june 2014) 23
Slide 24: Exhibits
Exhibits
Slide 25: Sales 2Q2014 & 6M2014
Sales 2Q2014 & 6M2014 Change Change Total Sales⁽*⁾ (in Ch$ million) 2Q14 2Q13 6M 2014 6M 2013 (%) (%) Chile Domestic Market - wine 15,692 14,338 9.4% 27,060 25,895 4.5% Chile Domestic Market - new business 9,259 8,548 8.3% 19,572 14,397 35.9% Export markets⁽¹⁾ 99,008 65,915 50.2% 172,909 121,297 42.
Slide 26: Chilean Domestic Market - Wine
Chilean Domestic Market - Wine Market Share – Domestic Market (Volume) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2Q2014 Concha y Toro 27.1 28.6 30.0 29.7 31.5 30.7 30.4 29.6 28.5 27.4 Santa Rita 24.4 25.5 27.9 28.7 28.9 29.4 29.1 28.0 29.5 30.1 San Pedro - Tarapacá 21.7 21.9 21.8 23.0 22.5 24.4 2
Slide 27: Investor Presentation – 2Q14 & 6M14 Results
Investor Presentation – 2Q14 & 6M14 Results September 5, 2014