Vina Concha y Toro S.A. · BCS:CONCHATORO
Vina Concha y Toro — H1 2011 Earnings Presentation
31 slides from Vina Concha y Toro's earnings presentation, Sep 6, 2011
Slide 1: 1H 2011 Results Presentation
VIÑA 1H 2011 Results Presentation Sept 6, 2011 1 1/ 1
Slide 2: Income Statement (million Ch$)
Income Statement (million Ch$) 2Q 2011 2Q 2010 Change 1H 2011 1H 2010 Change Operating Results Sales revenues 103,643 98,805 4.9% 183,250 166,579 10.0% Cost of sales (66,736) (62,723) 6.4% (120,328) (105,973) 13.5% % of sales -64.4% -63.5% -65.7% -63.6% Gross Profit 36,908 36,082 2.3% 62,922 60,605
Slide 3: Consolidated Sales and Sales Breakdown
Consolidated Sales Sales Breakdown Million Ch$ 2010 Exports 69,9% Domestic Average Annual Market Wine Growth: 11.0% 15,9% Domestic Market 374.019 354.419 Other 314.756 products 304.067 5,4% 246.640 Argentina Annual Growth: 10.0 % 6,9% Others 1,8% 183.250 166.579 Domestic Market Wine 1H 2011 Domestic
Slide 4: Total Chilean exports by category
Total Chilean exports by category (2010, January – June 2011) Jan - Dec 2010 % Change 2010/2009 Liters US$ Av. Price Liters US$ Av. Price ('000) ('000) US$/Ltr Bottled 458,498 $ 1,350,216 $ 2.94 10.7% 11.8% 1.1% Bulk 274,754 $ 201,799 $ 0.73 -1.6% 15.9% 17.8% Total 733,252 $ 1,552,015 $ 2.12 5.7% 12
Slide 5: Concha y Toro Export Sales (Bottled Wine)
Concha y Toro Export Sales (Bottled Wine) Million Ch$ Thousand US$ Average Annual Average Annual Growth: 15.1% Growth: 16.6% 543.942 266.566 277.068 246.683 483.405 453.287 218.592 403.531 Annual Growth: 11.2% 157.620 Annual Growth: 0.4 % 294.666 264.205 125.019 125.540 237.519 2006 (*) 2007 (*) 200
Slide 6: Concha y Toro Export Sales (Chile + Argentina) – Total Volume
Concha y Toro Export Sales (Chile + Argentina) – Total Volume (Volume Cases ´000) Average Annual Growth: 12.2% 20.514 18.955 17.642 16.279 12.924 Annual Growth: 1.3% 9.166 9.284 2006 2007 2008 2009 2010 …. 1H 2010 1H 2011 6 6/ 6
Slide 7: Concha y Toro Export Sales – Average Price
Concha y Toro Export Sales (Average Price US$/9lt Case) Annual Growth: 9.8% Average Annual 28,46 Growth: 4.4% 26,90 25,69 25,91 25,50 24,79 22,80 21,73 2005 2006 2007 2008 2009 2010 …. 1H 2010 1H 2011 7 7/ 7
Slide 8: Concha y Toro Export Sales – Premium Wines
Concha y Toro Export Sales – Premium Wines (Volume Cases ´000) Average Annual Growth: 14.3% 4,155 3,692 3,620 3,542 Annual Growth: 3.1% 2,433 1,716 1,769 2006 2007 2008 2009 2010 .. 1H 2010 1H 2011 After the economic downturn of 2009, in which Concha y Toro experienced a trade down in their portfoli
Slide 9: Increasing market share over Chilean Exports
Increasing market share over Chilean Exports Exports of bottled wine* 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% Ac-jun 2011 32.9% 29.0% Source: Vinos de Chile (*) Includes bottled & Bag in Box 9 9/ 9
Slide 10: Concha y Toro export growth by Region – by Volume
Concha y Toro export growth by Region – by Volume Mix of Export Sales % Change Volume Region 2010 1H 2010 1H 2011 2008 2009 2010 1H 2011 Continental Europe 19.4% 21.5% 19.0% 11% -3% 4% -11% (1) Nordics (SWE, FIN, NOR) 4.9% 5.3% 5.0% 0% 0% 15% -4% U.K. 27.2% 22.4% 23.0% 7% 20% 6% 4% U.S.A. 16.2% 17.5
Slide 11: Export – New World Producers
Export – New World Producers (Bottled wine exports by volume – million liters) % Change % Change 2007 2008 2009 2010 Ac Jun 2011 2010/09 1H 2011/10 Australia 579 513 471 416 181 -11.8% -13.0% Chile 375 386 414 459 220 10.7% 7.5% USA 235 240 205 190 112 -7.1% 23.7% South Africa 191 224 245 230 90 -6.
Slide 12: UK Market – Consumption (Volume) Off Trade by Origin
UK Market – Consumption (Volume) Off Trade by Origin Off - Trade Wines by Country 1,000cs Negative - decrease in overall 25,000 consumption: -1% Chile decreasing volumes by 20,000 1% 15,000 10,000 5,000 - NEW Light AUSTR SOUTH GERMA ARGEN PORTU HUNGA BULGA ITALY USA FRANCE CHILE SPAIN ZEALAN Wines A
Slide 13: UK Market – Consumption (Value) Off Trade by Origin
UK Market – Consumption (Value) Off Trade by Origin Off - Trade Wines by Country £m 1,200 Positive - overall value of consumption growing 4% 1,000 Chile increasing 4% in terms of value. 800 600 400 200 - NEW Light AUSTRA SOUTH GERMA ARGENT PORTU HUNGA BULGA ITALY USA FRANCE CHILE SPAIN ZEALAN Wines
Slide 14: UK Market – Market Share by Origin Off Trade
UK Market – Market Share by Origin Off Trade Off - Trade Wine by Country % vol - 5.0 10.0 15.0 20.0 25.0 20.4 AUSTRALIA 21.3 14.4 ITALY 15.2 - Australia recovering mkt share after a 14.5 USA 14.4 weak year2010 FRANCE 12.1 - Chile mantains mkt share 12.4 - Italy, Spain & New Zeland post increases in
Slide 15: UK Market – Average Price per Origin Off Trade
UK Market – Average Price per Origin Off Trade Off - Trade Wine by Country £ per 75cl equiv. - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 4.37 Light Wines 4.58 Positive - Average price 4.55 AUSTRALIA 4.65 increasing 4.8% 4.08 ITALY 4.29 Chile: Increase in Average 4.33 price above overall trend: USA 4.55 5.3
Slide 16: US Market – Consumption
US Market – Consumption • Despite the economic dowturn, in the US, the wine market has continued increasing in volume. • Around 6% growth in Volume up to June 2011. • Imports: Bulk decreases a 20% on 2010 and Bottled increases a 7%. (million 9 liter cases) % Change % Change 2008 2009 2010 Ac Jun 201
Slide 17: US Market – Imported Wines by Country
US Market – Imported Wines by Country Volume Value +12.7% 700.000 14.000 +17.9% 13.000 12.000 Ac Jun 2010 600.000 Ac Jun 2010 11.000 Ac Jun 2011 Thousand 9 ltr Cases 10.000 500.000 Ac Jun 2011 Thousand US$ 9.000 -13.7% 8.000 400.000 +21.4% 7.000 6.000 300.000 -16.7% 5.000 +8.6% -4.9% 4.000 +4.9% 200
Slide 18: Domestic market Chile – Volume & Value
Domestic market Chile – Volume & Value Thousand Liters Million Ch$ Average Annual Average Annual Growth: 2.7% Growth: 4.0% 77,291 74,235 71,742 59,100 70,435 53,221 53,705 63,261 50,467 50,184 Annual Decrease: 4.0% Annual Growth: 9.8% 32,356 27,831 31,071 25,342 2006 2007 2008 2009 2010 …. 1H 2010 1
Slide 19: Domestic market Chile – Premium Wine growth
Domestic market Chile – Premium Wine growth Million Ch$ Average Annual Growth: 12.1% % Premium/Total % Premium/Total Year Volume Value 10,346 2006 3.1% 13.0% 2007 2.7% 13.2% 8,743 2008 3.1% 15.2% 7,638 7,004 2009 3.5% 16.3% 6,543 Annual Growth: 41.9% 2010 4.1% 17.5% 5,046 Ac Jun 2011 4.3% 18.1% 3,55
Slide 20: Domestic Market Share
Domestic Market Share (by volume) 2005 2006 2007 2008 2009 2010 Ac May 2011 Concha y Toro 27.1 28.6 30.0 29.7 31.5 30.7 30.9 Santa Rita 24.4 25.5 27.9 28.7 28.9 29.4 29.2 San Pedro - Tarapacá 21.7 21.9 21.8 23.0 22.5 24.4 24.1 Santa Carolina 3.2 3.1 2.3 2.0 1.8 1.8 1.6 Others 23.6 20.9 18.0 16.6 15.
Slide 21: Total Argentinean exports by category
Total Argentinean exports by category (2010, January – June 2011) Jan - Dec 2010 % Change 2010/2009 Liters US$ Av. Price Liters US$ Av. Price ('000) ('000) US$/Ltr Bottled 230,659 $ 699,088 $ 3.03 3.9% 17.0% 12.6% Bulk 44,580 $ 37,335 $ 0.84 -35.5% 2.9% 59.4% Concentrated Must 69,137 $ 128,087 $ 1.8
Slide 22: Trivento Export Sales: Argentina – Volume & Value
Trivento Export Sales : Argentina – Volume &Value Thousand Liters Thousand US$ Average Annual Growth: 5.0% Average Annual Growth: 11.9% 13,307 13,700 12,254 12,244 32,976 11,271 28,425 28,432 24,296 Annual Decrease: -0.6% Annual Decrease: -18.4% 20,996 6,452 14,844 14,752 5,268 2006 2007 2008 2009 2
Slide 23: Trivento Export Sales - Argentina
Trivento Export Sales - Argentina (Average Price US$/Case) Annual Growth: 21.7% Average Annual 25.20 Growth: 6.6% 21.66 20.90 20.71 19.23 17.84 16.77 2006 2007 2008 2009 2010 1H 2010 1H 2011 23 23/ 23
Slide 24: Trivento Domestic Sales: Argentina – Volume & Value
Trivento Domestic Sales : Argentina – Volume &Value Thousand Liters Thousand AR$ Average Annual Average Annual Growth: 4.9% Growth: 18.9% 66,898 8,492 8,313 60,008 7,780 7,768 51,798 6,409 42,316 Annual Decrease: -1.2% Annual Decrease: -22.7% 33,426 3,492 26,838 26,514 2,698 2006 2007 2008 2009 2010
Slide 25: Trivento Domestic Sales - Argentina
Trivento Domestic Sales - Argentina (Average Price AR$/Case) Annual Growth: 27.9% 88,45 Average Annual Growth: 13.4% 77,51 69,18 64,97 54,89 48,95 46,94 2006 2007 2008 2009 2010 1H2010 1H 2011 25 25/ 25
Slide 26: Exchange Rate Sensitivity
Exchange Rate Sensitivity As a % of Total Sales: Currency Mix Ac Jun 2010 Ac Jun 2011 Includes Fetzer since 04/15/2011 CLP 22.2% 22.9% USD 32.3% 37.3% GBP 17.6% 15.2% EUR 11.7% 10.3% CAD 3.9% 3.5% ARG 2.2% 1.8% SEK 3.4% 2.8% NOK 1.0% 0.8% BRL 5.7% 5.4% 26 26/ 26
Slide 27: Exchange Rate main producers
Exchange Rate main producers From From 12/30/2009 to 06/30/2011 12/30/2009 to 30/06/2011 Against USD Against GBP Against EUR 10% 20% 17% 8,1% 15% 5% 12% 9,4% 10% 7,9% 7% 0% 5% Euro Zone South Africa New Zeland Australia Argentina Chile 2% -5% -1% Euro Zone South Africa New Zeland Australia Argentina
Slide 28: Financial Debt
Financial Debt Jun-10 Jun-11 Financial Debt* Av. Interest Av. Interest Debt increase to as of: Ch$ MM Ch$ MM acquire Fetzer rate rate USD 31,972 2.57% 125,476 3.01% EUR 670 2.22% 3,874 2.28% GBP 2,904 2.37% 2,632 2.35% CLP 15,470 1.66% 5,000 5.83% UF 39,910 3.90% 38,629 3.90% ARS 5,013 13.29% 6,551
Slide 29: Sustained Investment over time
Sustained Investment over time • US$ 647 million between 2005 – 2011 - Vineyard expansion Chile - Increasing cellar and vinification capacity - Improvements in bottling capacity and efficiency - Supply Chain - 2011: Record year of investment for Viña Concha y Toro Investment US$ Million (*) 2011 Cap
Slide 30: Shareholder structure (June 2011)
Shareholder structure (June 2011) Other 15.2% ADR's Control Group 2.4% 39.7% Other Large Shareholders 17.1% Brokerage H, Mutual F & Insurance 13.2% Chilean AFP's 12.4% 30 30/ 30
Slide 31: 1H 2011 Results Presentation
VIÑA 1H 2011 Results Presentation Sept 6, 2011 31 31/ 31