Vina Concha y Toro S.A. · BCS:CONCHATORO
Vina Concha y Toro — Investor Presentation (October 2014)
48 slides from Vina Concha y Toro's investor presentation, October 2014
Slide 1: Corporate Presentation
Corporate Presentation October 2014
Slide 2: I. Concha y Toro: At a Glance
I. Concha y Toro: At a Glance
Slide 3: Concha y Toro's Timeline
Concha y Toro’s Timeline 1883 1966 Launch 1994 First 1997 Strategic 2010 Partnership 2013 World’s Foundation of of Casillero Winery to Alliance: Manchester Most Admired Concha y Toro del Diablo trade in NYSE Almaviva Winery United Wine Brand 1933 Listed in 1993 Launch of 1996 Launch of 2000 Brand 20
Slide 4: Holding Concha y Toro
Holding Concha y Toro Consolidated Sales (million Ch$) +27.8% Export Markets include exports to third parties and distribution subsidiaries US and ARG exports excludes shipments to the company’s distribution subsidiaries Consolidated Volume (million 9 liter cases, Wine) +12.6% 4
Slide 5: Holding Concha y Toro
Holding Concha y Toro Operating Income Consolidated EBITDA (million Ch$) (million Ch$) CAGR: 6.0% CAGR: 6.6% +175.8% +103.1% Consolidated Mg. EBITDA Consolidated Net Profit (% of Sales) (million Ch$) +106.2%
Slide 6: Concha y Toro: Performace
Concha y Toro: Performace * Export Sales considers total exports and the sales of our distribution subsidiaries. 6
Slide 7: Concha y Toro: Leading Position
Concha y Toro: Leading Position Domestic Market Share 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 24.6 26.7 27.3 28.
Slide 8: II. Global Wine Industry
II. Global Wine Industry
Slide 9: Wine Industry: Top wine producers
Wine Industry: Top 10 wine producers • Global Production decreasing 0.1% per year • 9.4% increase in 2013 7,000 CAGR: CAGR: -1.1% -2.4% CAGR: 6,000 +0.5% 5,000 million liters 4,000 2000 CAGR: 3,000 +0.2% 2006 CAGR: CAGR: +1.4% +5.1% CAGR: 2013 2,000 +3.4% CAGR: CAGR: CAGR: +0.8% +3.6% -1.3% 1,000 0
Slide 10: Wine Industry: Top wine consumers
Wine Industry: Top 10 wine consumers • Global Consumption Increasing 0.4% per year • Potential markets: Asia, US and Latin America 4,000 CAGR: -1.5% 3,500 CAGR: CAGR: -2.6% +2.5% 3,000 CAGR: 1.0% 2,500 million liters CAGR: +3.5% CAGR: 2,000 CAGR: 2000 +2.1% CAGR: CAGR: +6.3% -3.3% 2006 -1.4% 1,500 2
Slide 11: Wine Industry: Global Situation
Wine Industry: Global Situation • World Wine Consumption Increasing 0.4% per year from 2000 to 2013 • World Wine Production Decreasing 0.1% per year from 2000 to 2013 Source: OIV, Concha y Toro Estimates 11
Slide 12: Wine Industry: Global Situation
Wine Industry: Global Situation • World Wine Consumption Increasing 0.4% per year from 2000 to 2013 • World Wine Consumption (excl. FR, IT, ES) Increasing 1.4% per year from 2000 to 2013 Source: OIV, Concha y Toro Estimates 12
Slide 13: Wine Industry: Global Exports
Wine Industry: Global Exports • Global Export Value (€) Increasing 4.9% per year • Global Export Volume Increasing 3.8% per year Source: OIV 13
Slide 14: Wine Industry: Main Wineries per Volume
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° Treasury Wine Estates Ltd
Slide 15: III. Business Model
III. Business Model
Slide 16: Key Factors & Growth Drivers
Key Factors & Growth Drivers Strong Portfolio of Wines Quality Brand Building VERTICAL INTEGRATION Controlling since the vineyard Brand Strong Distribution Network Building Market Diversification Strong Global Brand Recognition Global Presence VERTICAL INTEGRATION 16
Slide 17: Quality
Quality Exclusive focus on wine Quality Quality Assurance Investments: supports and Consistency growth and innovation 17
Slide 18: Exclusive Focus on Wine
Exclusive Focus on Wine CASILLERO DEL DIABLO SALES 2003: 1.0M cases SALES 2013: 3.8M cases CHANGE: +3.8 times CABERNET SAUVIGNON 2010 Finest Value Cabernet on the planet Matthew Jukes, Daily Mail, UK February 2012 18
Slide 19: Quality Assurance and Consistency
Quality Assurance and Consistency As of June 30, 2014 9,129 Hectares Planted 19
Slide 20: Quality Assurance and Consistency
Quality Assurance and Consistency Hectares Planted As of June 30, 2014 TWE (AUS/USA/NZ/IT) 11,000 Concha y Toro (CHI/ARG/USA) 10,751 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 Source: Companies Fact Sheet, Web S
Slide 21: CAPEX
CAPEX Sustained Investment Over Time (US$ million) 2013 Capex Disclosure ** Inorganic Growth: Fetzer (216.0) + Kross (2.7) 21
Slide 22: Production Capacity Through Years
Production Capacity Through Years Planted Hectares Wine Storage & Ageing Capacity (million liters) 22
Slide 23: Brand Building
Brand Building Strong Portfolio of Wines Brand Building Strong Brand Recognition 23
Slide 24: Strong Portfolio of Wines
Strong Portfolio of Wines Multi Origin Brands Chile Argentina USA 24
Slide 25: Strong Portfolio of Wines
Strong Portfolio of Wines VARIETALS PREMIUM SUPER ULTRA ICON PREMIUM PREMIUM £5,99 / £4,99 - 5,49 £7,49 - 9,99 / £8,99 £11,99 / £12,99 £12,99 - 15,99 / £18,99 £40 / £65 / £65 USD 7 / USD 5- 6 USD 10 / USD 13 USD 14.99 / USD 19.99 USD 20 – 25 / USD 40 USD 95 / USD 120 / USD135 % of sales by value 62.
Slide 26: Strong Brand Recognition
Strong Brand Recognition “World’s Most Admired Wine Brand” “World’s Most Powerful Wine Brand” (Drinks International, 2011 – 2013) (Intangible Business, 2014) 26
Slide 27: Strong Brand Recognition
CONCHA Y TORO Strong Brand Recognition Wine Spectator eke vintages among the vintages above points Vintage Score 2005 96 pts + Top100 N° 12 2007 96 pts 2003 96 pts + Top100 N° 4 2006 96 pts 200195 pts Top100 N° 4 2004 94 pts 2000 94pts Top100 N° 26 2001 95pts 1993 91 pts Top 100 N° 12 1997 91 pts 20
Slide 28: Strong Brand Recognition
CONCHA Y TORO Strong Brand Recognition Wine Spectator Wine Spirits .First Chilean Carmenere to appear on vintages of Carmenere above the list. pts. -Cabernet Sauvignon 2011, pts. + Carmenere 2011 pts. Carmenere 2011, pts. » Sauvignon Blanc 2013, 9 pts Year's Best New World Sauvignon Blanc. Riesling
Slide 29: Global Presence
Global Presence Strong Distribution Network Global Presence Market Diversification 29
Slide 30: Global Presence: 145 Destination Countries
Global 145 Destination Presence Countries 30
Slide 31: Strong Distribution Network
Strong Distribution Network Export Sales Export Volume (million Ch$, Wine) (thousand cases, Wine) +41.4% +18.8% Average Export Price Premium Wines Export Volume (US$ / 9 liter Case, Wine) (thousand cases) +2.6% +29.1%
Slide 32: Strong Distribution Network
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 cases to Dec 2013 USA Excel
Slide 33: Strong Distribution Network
Strong Distribution Network Distribution Subsidiaries: Driving the growth 33
Slide 34: Market Diversification – Chilean Exports
Market Diversification – Chilean Exports Chilean Destination of Bottled Exports Source: Vinos de Chile 34
Slide 35: Market Diversification
Market Diversification The Chilean Bottled Export Industry – Concha y Toro Leading Position 35
Slide 36: Market Diversification
Market Diversification Domestic Market – Premium Wine Growth (Thousand Liters) +10.5% 36
Slide 37: 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 expertise. We are ready to continue growing… 37
Slide 38: Corporate Presentation
Corporate Presentation October 2014
Slide 39: IV. Exhibits
IV. Exhibits
Slide 40: Holding Concha y Toro
Holding Concha y Toro Board of Directors Shareholder Structure (June 30, 2014) 7 2 6 4 1 3 5 1. Alfonso Larraín Santa María (Chaiman) 4. Francisco Marín Estévez Stock Information 2. Rafael Guilisasti Gana 5. Sergio de la Cuadra Fabres 3. Mariano Fontecilla de Santiago 6. Pablo Guilisasti Gana (June
Slide 41: Bottled Sales 2Q2014 & 6M2014
Bottled 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
Slide 42: Exchange Rate Main Producers
Exchange Rate Main Producers Chilean Peso against USD 42
Slide 43: Costs: Significant shift in Chilean bulk wine price curve
Costs: Significant shift in Chilean bulk wine price curve Average bulk wine price to producer (Ch$/Liter) Source: ODEPA 43
Slide 44: Chilean Harvest through the years
Chilean Harvest through the years Historical Harvest Volume (Million Liters) Source: SAG 44
Slide 45: Conservative Capital Structure
Conservative Capital Structure Financial Debt / Equity Total Liabilities / Equity 1,4(*) Net Financial Debt / EBITDA (1) EBITDA (1)/ Financial Expenses(1) 2,5(**) Liabilities: Current Liabilities + Non Current Liabilities Financial Debt: Other current financial liabilities + Other non current financ
Slide 46: Financial Debt
Financial Debt Financial Debt* as of: Jun-14 Jun-13 Ch$ 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 47: 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 47
Slide 48: 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) 48
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