Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — Q1 2017 Earnings Presentation
22 slides from Vina Concha Y Toro's earnings presentation, May 31, 2017
Slide 1: Investor Presentation 1Q2017 Results
Investor Presentation 1Q2017 Results May 31, 2017
Slide 2: I. 1Q17 Sales & Volume
I. 1Q17 Sales & Volume 2
Slide 3: Sales & Volume - 1Q17
I. Sales & Volume - 1Q17 MM$ YoY% MM$ YoY% Wine 115,126 -1.7% Wine 64.7 4.6% Others 12,348 -17.8% Others 5.5 -29.9% 3
Slide 4: Sales & Volume - 1Q17 Origin: Chile
I. Sales & Volume - 1Q17 Origin: Chile Chile Volume (Thousand Liters) • In export markets, volume grew 5.9% YoY, driven by Asia and South America. • The domestic market was 0.5% up YoY. This was combined with an increase in average price of 3.7% YoY. • New business was impacted by the end of the dis
Slide 5: Chile – Export Markets
I. Sales & Volume - 1Q17 Chile – Export Markets CyT Exports of Wine* • Volume increased 5.9% YoY: • Asia (+19%) • South America (+41% ) • Fastest growing countries: • China and Japan - Asia • Brazil - South America • North America volume increased 8%: • +46% in Canada • -4% in USA. * Include export
Slide 6: Chile – Domestic Market
I. Sales & Volume - 1Q17 Chile – Domestic Market Domestic Market – Wine Volume (Thousand Liters) • Wine volume: 13.7 mm liters +0.5% YoY • Average price: +3.7% YoY, driven by the premiumization of our portfolio. Premium Wine Growth • Premium wines: +10% YoY (Thousand Liters) • Weight of premium wine
Slide 7: Sales & Volume - 1Q17 Origin: Argentina
I. Sales & Volume - 1Q17 Origin: Argentina Argentina Volume (Thousand Liters) • Domestic volume: +54% YoY. • Domestic avg. price: +78% in USD terms. • Sales in Domestic Market: CLP$ 2 bn +154% YoY. • Export markets volume: -32% YoY • Export markets avg price: +14.4% (3.5 USD/liter in 1Q17) 7
Slide 8: Sales & Volume - 1Q17 Origin: Fetzer
I. Sales & Volume - 1Q17 Fetzer Sales Volume Origin: Fetzer (Thousand Liters) Export Markets • Domestic volume: +11% YoY, driven by Bonterra and Anthony’s Hill. • 1000 Stories volume: +30% YoY Fetzer Domestic Market • Export markets volume: +31% YoY, Bottled Wine Sales (US$th) driven by Canada and E
Slide 9: Volume Contribution by business
I. Sales & Volume - 1Q17 Volume Contribution by business (Thousand liters $) 9
Slide 10: II. FX Impact – 1Q17
II. FX Impact – 1Q17 10
Slide 11: FX Impact - Sales Breakdown by Currency
II. FX Impact - 1Q17 Sales Breakdown by Currency Currency Mix 3M17 3M16 CLP 20.9% 21.7% USD 34.9% 32.2% GBP 18.1% 21.9% EUR 10.7% 11.2% CAD 4.1% 3.1% BRL 3.1% 2.1% MXN 2.9% 2.9% SEK 2.7% 3.2% ARG 1.6% 0.6% NOK 1.0% 1.1% • Export Markets include exports to third parties and distribution subsidiaries
Slide 12: FX Impact - 1Q17 (GBP)
II. FX Impact - 1Q17 • GBP denominated sales as % of group sales: • 20% in 1Q16 • 18% in 1Q17 • Avg. CLP/GBP down 19% in 1Q17 YoY. • As of May 30, avg. CLP/GBP is down 13% in 2Q17 YoY Quarterly average exchange rates, BCC. * Considers FX rate until May 29/2017 12
Slide 13: FX Impact - 1Q17 (EUR and USD)
II. FX Impact - 1Q17 Variación Cambiaria 12M2016 • Avg. CLP/EURO down 10% in 1Q17 YoY. • As of May 30, avg. CLP/EURO is down 6% in 2Q17 YoY • Avg. CLP/USD down 7% in 1Q17 YoY. • As of May 30, avg. CLP/USD is down 2% in 2Q17 YoY Quarterly average exchange rates, BCC. * Considers FX rate until May 29/
Slide 14: III. 1Q17 Results
III. 1Q17 Results 14
Slide 15: 1Q17 Results: Consolidated EBITDA and Net Income
III. 1Q17 Results Consolidated EBITDA (million Ch$) and EBITDA margin • EBITDA: $12.8 bn -24% YoY • EBITDA margin: 10%, -270bp YoY • Net Income: $3.8 bn, -48% YoY (-) Lower consolidated sales: (+) Higher volume in wine segment (-) Lower volume in new business (+) Higher prices in local currencies Ne
Slide 16: IV. Financial Position
IV. Financial Position 16
Slide 17: Financial Position: Capital Structure
IV. Financial Position Capital Structure Financial Debt / Equity Total Liabilities / Equity Net Financial Debt / EBITDA (1) EBITDA (1) / Financial Expenses (1) Liabilities: Current liabilities + Non current liabilities Financial expenses exclude financial income Financial Debt: Other current financi
Slide 18: Financial Position: Financial Debt
IV. Financial Position Financial Debt Financial Debt* Mar-17 Mar-16 as of: Ch$ MM Av. Interest rate Ch$ MM Av. Interest rate USD 151,144 2.58% 104,954 2.86% EUR GBP CLP 34,166 5.12% 40,350 5.17% UF 52,944 2.40% 54,205 3.43% ARS 5,344 20.28% 3,860 27.66% BRL 5,300 17.80% 4,683 15.92% MXN 47 9.42% 2 5
Slide 19: Investor Presentation 1Q2017 Results
Investor Presentation 1Q2017 Results May 31, 2017
Slide 20: Total Sales and Total Volume by segment
Total Sales⁽*⁾ (in Ch$ million) 1Q17 1Q16 Change (%) Chile Domestic Market - wine 14,281 13,711 4.2% Export markets⁽¹⁾ 81,049 84,355 -3.9% Argentina Domestic 1,982 782 153.6% Argentina Exports⁽²⁾ 3,632 4,849 -25.1% U.S.A. Domestic 12,810 12,242 4.6% U.S.A. Exports⁽²⁾ 1,373 1,195 14.9% Total Wine Ope
Slide 21: Significant shift in the Chilean bulk wine price
Significant shift in the Chilean bulk wine price 21
Slide 22: Chilean Harvest through years
Chilean Harvest through years Historical Harvest Volume (million liters) 22