Vina Concha y Toro S.A. · BCS:CONCHATORO

Vina Concha y Toro — Investor Presentation (May 2014)

46 slides from Vina Concha y Toro's investor presentation, May 2014

  1. Slide 1: Corporate Presentation May 2014

    Corporate Presentation May 2014

  2. Slide 2: Concha y Toro: At a Glance

    1 Concha y Toro: At a Glance

  3. Slide 3: At a Glance

    Corporate Presentation At a Glance • 1883 Foundation of Concha y Toro in Pirque • 130 Years of History: Chile´s Leading Wine Producer • Public Company Since 1933:  Main ownership in two families with a long-term vision and passion for wine • 1994 First winery in the world to trade in the NYSE 1 3

  4. Slide 4: At a Glance

    Corporate Presentation At a Glance • 1996 Expansion to Argentina Trivento Winery • 1997 Joint Venture between Concha y Toro and Baron Philippe de Rothschild • 2000 Brand Building & Strengthening Global Reach • 2010 Manchester United Partnership • 2011 Acquisition in California of Fetzer Vineyards 1

  5. Slide 5: Holding Concha y Toro

    Corporate Presentation Holding Concha y Toro Shareholder Structure (Dec 2013) Stock Information Date 12.05.2014 Stock Price (Ch$) 1,150 N° Stocks in Market 747,005,982 Market Cap (Th. Ch$) 859,056,879 1 5

  6. Slide 6: Holding Concha y Toro

    Corporate Presentation Holding Concha y Toro Consolidated Sales (million Ch$) Consolidated Volume Currency Mix (million 9 liter cases) 2013 2012 CLP 20.5% 21.2% USD 35.7% 37.4% GBP 17.4% 16.9% EUR 9.9% 9.7% CAD 2.8% 3.2% ARG 1.3% 1.7% SEK 2.7% 2.6% 1 NOK BRL 0.9% 6.0% 0.9% 5.0% 6 MXN 2.8% 1.3%

  7. Slide 7: Holding Concha y Toro

    Corporate Presentation Holding Concha y Toro Consolidated EBITDA Consolidated Mg. EBITDA (million Ch$) CAGR: 6.6% (% of Sales) Consolidated Net Profit TC (million Ch$) CAGR: 10.8% Wine Cost 1 7

  8. Slide 8: Concha y Toro: Performace

    Corporate Presentation Concha y Toro: Performace Income Statement 2006 2013 CAGR 2013 Sales (Ch$ million) $ 215,843 $ 475,622 11.9% Exports * (Ch$ million) $ 157,620 $ 323,509 10.8% Exports * (US$ million) $ 295 $ 650 12.0% % Exports 73.0% 68.0% Export volume * ('000 cases) 12,924 21,157 7.3% Operat

  9. Slide 9: Concha y Toro: Leading Position

    Corporate Presentation Concha y Toro: Leading Position Domestic Market Share 2005 2006 2007 2008 2009 2010 2011 2012 2013 Concha y Toro 27.1 28.6 30.0 29.7 31.5 30.7 30.4 29.6 28.5 Santa Rita 24.4 25.5 27.9 28.7 28.9 29.4 29.1 28.0 29.5 San Pedro - Tarapacá 21.7 21.9 21.8 23.0 22.5 24.4 24.6 26.7 27

  10. Slide 10: Global Wine Industry

    2 Global Wine Industry

  11. Slide 11: Wine Industry: Top wine producers

    Corporate Presentation Wine Industry: Top 10 wine producers • Global Production Decreasing 0.9% per year • 5.6% decrease in 2012 2 11

  12. Slide 12: Wine Industry: Top wine consumers

    Corporate Presentation Wine Industry: Top 10 wine consumers • Global Consumption Increasing 0.6% per year • Potential markets: Asia, US and Latin America 2 12

  13. Slide 13: Wine Industry: Global Exports

    Corporate Presentation Wine Industry: Global Exports Global Export Value (€) Increasing 5.2% per year (millon liters) Global Export Volume Increasing 4.2% per year (millon liters) 2 13

  14. Slide 14: Wine Industry: Global Situation

    Corporate Presentation Wine Industry: Global Situation • World Wine Consumption Increasing 0.6% per year from 2000 to 2012 • World Wine Production Decreasing 0.9% per year from 2000 to 2012 30,000 29,000 28,000 27,000 million liters 26,000 25,000 24,000 23,000 22,000 21,000 20,000 2013E 2014E 2015E

  15. Slide 15: Wine Industry: Main Wineries per Volume

    Corporate Presentation Wine Industry: Main Wineries per Volume The top ten players reached 12.4% of total bottled volume sold in 2012 Volume Market Ranking Company Share 2012 1° E & J Gallo Winery Inc 2.60% 2° Constellation Brands Inc 2.00% 3° The Wine Group 1.70% 4° Pernod Ricard Groupe 1.00% 5° Tr

  16. Slide 16: Business Model

    3s Business Model

  17. Slide 17: Key Factors & Growth Drivers

    Corporate Presentation Key Factors & Growth Drivers Quality Global Brand Presence Building 3 17

  18. Slide 18: Quality

    Corporate Presentation Quality Exclusive focus on wine Quality Quality Assurance Investments: supports and Consistency growth and innovation 3 18

  19. Slide 19: Exclusive Focus on Wine

    Corporate Presentation Exclusive Focus on Wine Global Export Value (€) Increasing 5.2% per year (millon liters) CASILLERO DEL DIABLO CABERNET SAUVIGNON 2010 SALES 2003: 1.0M cases Finest Value Cabernet on the planet SALES 2013: 3.8M cases Matthew Jukes, Daily Mail, UK CHANGE: +3.8 times February 201

  20. Slide 20: Quality Assurance and Consistency

    Corporate Presentation Quality Assurance and Consistency 9 VALLEYS 9,086 Hectares Planted 51 VINEYARDS 24 VARIETY 3 20

  21. Slide 21: Quality Assurance and Consistency

    Corporate Presentation Quality Assurance and Consistency 3 VALLEYS 8 VINEYARDS 1,154 Hectares Planted 3 21

  22. Slide 22: Quality Assurance and Consistency

    Corporate Presentation Quality Assurance and Consistency 3 VALLEYS 15 VINEYARDS 464 3 Hectares Planted 22

  23. Slide 23: Quality Assurance and Consistency

    Corporate Presentation Quality Assurance and Consistency Hectares Planted TWE (AUS/USA/NZ/IT) 11.000 Concha y Toro (CHI/ARG/USA) 10.705 E&J Gallo (USA) 8.100 Pernod Ricard (FR/AUS/ARG) 8.000 Constellation (USA/AUS/NZ/CAD) 7.247 0 2.000 4.000 6.000 8.000 10.000 12.000 3 23

  24. Slide 24: CAPEX

    Corporate Presentation CAPEX Sustained Investment Over Time Estimated Capex Disclosure (**) Inorganic growth: Fetzer (216.0) + Kross (2.7) 3 24

  25. Slide 25: Production Capacity Through Years

    Corporate Presentation Production Capacity Through Years Planted Hectares Wine Storage & Ageing Capacity (million liters) 3 25

  26. Slide 26: Brand Building

    Corporate Presentation Brand Building Strong Portfolio of Wines Brand Building Strong Brand Recognition 3 26

  27. Slide 27: Strong Portfolio of Wines

    Corporate Presentation Strong Portfolio of Wines Multi Origin Brands Chile Argentina USA 3 27

  28. Slide 28: Strong Portfolio of Wines

    Corporate Presentation Strong Portfolio of Wines 3 28

  29. Slide 29: Strong Brand Recognition

    Corporate Presentation Strong Brand Recognition For the third consecutive year, Concha y Toro is recognized as the “World's Most Admired Wine Brand” (2011 – 2013) 3 29

  30. Slide 30: Strong Brand Recognition

    Corporate Presentation Strong Brand Recognition 90+ BRAND 3 30

  31. Slide 31: Global Presence

    Corporate Presentation Global Presence Strong Distribution Network Global Presence Market Diversification 3 31

  32. Slide 32: Strong Distribution Network

    Corporate Presentation Strong Distribution Network Global 145 Destination Presence Countries 3 32

  33. Slide 33: Strong Distribution Network

    Corporate Presentation Strong Distribution Network Export Sales Export Volume (million Ch$) (thousand cases) Average Export Price Premium Wines Export Volume (US$ / 9 liter Case) (thousand cases) 3 33

  34. Slide 34: Strong Distribution Network

    Corporate Presentation Strong Distribution Network UK Concha y Toro UK (Since 2001) - 5.6 million cases to Dec 2013 Brazil VCT Brazil (Since 2008) – 811 thousand cases to Dec 2013 Nordics Concha y Toro Nordics (Since 2009) – 1.1 million cases to Dec 2013 Asia VCT Asia (Since 2010) – 2.5 million case

  35. Slide 35: Our Distribution Subsidiaries

    Corporate Presentation Strong Distribution Network Distribution Subsidiaries: Driving the growth Volume Volume Volume Volume Volume 2009 2010 2011 2012 2013 Total Volume Holding 28,108 29,203 29,658 30,196 30,266 Total Volume through our 15,630 15,883 17,332 19,925 19,839 Distribution Subsidairies %

  36. Slide 36: Market Diversification

    Corporate Presentation Market Diversification The Chilean Bottled Export Industry – Concha y Toro Leading Position Share over % Part of CyT in Rank Growth Rank 2012 Country chilean bottled total Chilean Rank 2013 2013/2012 export (volume) bottled Exports st st 1 1 st # United Kingdom 15.7% -13.7% 45

  37. Slide 37: Market Diversification

    Corporate Presentation Market Diversification Domestic Market – Premium Wine Growth (Thousand Liters) % Premium/ % Total Premium/ Year Volume Total Value 2006 3.1% 13.0% 2007 2.7% 13.2% 2008 3.1% 15.2% 2009 3.5% 16.3% 2010 4.1% 17.5% 2011 5.2% 20.2% 2012 6.2% 22.9% 2013 6.3% 24.3% 3 37

  38. Slide 38: We are ready to continue growing…

     We have the brands.  We have the portfolio.  We have the distribution.  We have the land.  We have the investments.  We have the experience. We are ready to continue growing… 38

  39. Slide 39: Corporate Presentation Concha y Toro

    Corporate Presentation Concha y Toro May 2014

  40. Slide 40: Exhibits

    4 Exhibits

  41. Slide 41: Bottled Sales 4Q2013 & 12M2013

    Corporate Presentation Bottled Sales 4Q2013 & 12M2013 Change Change 4Q13 4Q12 12M 2013 12M 2012 (%) (%) Sales (in Ch$ million) Chile Domestic Market - wine 14,935 15,905 -6.1% 57,144 61,573 -7.2% Chile Domestic Market - new business 9,546 9,684 -1.4% 31,955 28,420 12.4% Export markets⁽¹⁾ 92,981 84,7

  42. Slide 42: Income Statement 4Q2013 & 12M2013

    Corporate Presentation Income Statement 4Q2013 & 12M2013 4Q2013 4Q2012 Change 12M 2013 12M 2012 Change Million. Ch Million. Ch % Million. Ch Million. Ch % Operating Results Sales revenues 139,333 132,519 5.1% 475,622 448,250 6.1% Cost of sales (90,017) (91,048) -1.1% (311,387) (302,963) 2.8% % of sa

  43. Slide 43: Exchange Rate Main Producers

    Corporate Presentation Exchange Rate Main Producers Currencies against US$ CLP against US$ 4 43

  44. Slide 44: Financial Debt

    Corporate Presentation Financial Debt Financial Debt* as of: Dec-13 Dec-12 Ch$ MM Av. Interest rate Ch$ MM Av. Interest rate USD 134,679 3.10% 148,644 2.96% EUR 2,049 1.32% GBP 2,859 1.49% 2,715 2.36% CLP 20,853 5.98% UF 80,898 3.74% 81,958 3.74% ARS 6,884 16.39% 7,331 14.58% BRL 7,907 11.63% 3,643

  45. Slide 45: Concha y Toro's Stock

    Corporate Presentation Concha y Toro’s Stock US$ 1.5 million of Average Daily Value Traded in 2014 4 45

  46. Slide 46: Costs: Significant shift in Chilean bulk wine price curve

    Corporate Presentation Costs: Significant shift in Chilean bulk wine price curve Average Bulk Wine price to producer (Ch$/Liter) 4 46

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