Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — Q2 2021 Earnings Presentation
68 slides from Vina Concha Y Toro's earnings presentation, August 2021
Slide 1: 2Q21 Results
EARNINGS 2Q21 · INVESTOR PRESENTATION 1 PRESENTATION FOR INVESTORS 2Q21 Results
Slide 2: Agenda
EARNINGS 2Q21 · INVESTOR PRESENTATION 2 AGENDA 01. HIGHLIGHTS / Eduardo Guilisasti, CEO 02. MAIN BUSINESS TRENDS/ Blanca Bustamante, Directora IR 03. FINANCIAL RESULTS/ Osvaldo Solar, CFO 04. SUSTAINABILITY / Valentina Lira, Gerente Sustentabilidad 05. SHARE ANALYSIS / Claudia Cavada, Head of IR
Slide 3: Highlights
EARNINGS 2Q21 · INVESTOR PRESENTATION 3 01. Highlights Eduardo Guilisasti, CEO
Slide 4: First half organic sales growth of 20% in dollars
EARNINGS 2Q21 · INVESTOR PRESENTATION 4 Concha y Toro in the first half of the year had an organic sales growth of 20% in dollars, and 32% sales growth in the domestic market, measured in pesos.
Slide 5: Reported sales in pesos increased 9%
EARNINGS 2Q21 · INVESTOR PRESENTATION 5 Reported sales in pesos increased 9% to a total of Ch$ 210 billion, as strong organic growth was partially offset by the exchange rate impact. In dollar terms, the Company reported sales of USD 520 million, up 23% from the previous year. We added US$100 millio
Slide 6: 2Q21 operating margin of 16.1%
EARNINGS 2Q21 · INVESTOR PRESENTATION 6 In 2Q21, Concha y Toro winery had an operating margin of 16.1%, in line with the objective of doubling the 2016 operating result to Ch$ 140 billion by 2022.
Slide 7: Factors with a negative impact in 2Q21
EARNINGS 2Q21 · INVESTOR PRESENTATION 7 FACTORS WITH A NEGATIVE IMPACT IN 2Q21 01 02 03 Exchange rate Difficulties in the global Increase in some dry fluctuations, with a -8% shipping industry, goods costs, principally of drop in our sales revenue delaying our shipments cases, as well as higher curr
Slide 8: Factors with a positive impact in 2Q21
EARNINGS 2Q21 · INVESTOR PRESENTATION 8 FACTORS WITH A POSITIVE IMPACT IN 2Q21 01 02 03 As expected, the strong In line with our strategy, Significant and sustained recovery of markets most interesting sales revenue growth in margins in both affected by Covid-19 in growth of Principal and the Chilea
Slide 9: Sales volume 2Q21
EARNINGS 2Q21 · INVESTOR PRESENTATION 9 SALES VOLUME 2Q21 VO LUM E (T HO USANDS O F 9 - LT CASES) +4.8% 9,861 9,407 2Q20 2Q21
Slide 10: Principal & Invest brands drive premiumization
EARNINGS 2Q21 · INVESTOR PRESENTATION 10 PRINCIPAL & INVEST BRANDS DRIVE PREMIUMIZATION % OF TOTAL VOLUME +13.3% +19.5% 26.8% 29.4% 33.5% 2Q21 vs. 2Q19 Better sales volume mix -0.3% +670bp 73.2% 70.6% -1.3% 66.5% From 26.8% to 33.5% 2Q19 2Q20 2Q21 Principal+Invest Other
Slide 11: Consolidated revenue 2Q21
EARNINGS 2Q21 · INVESTOR PRESENTATION 11 CONSOLIDATED REVENUE 2Q21 NET SALE S (Ch$ BILLIO N) +9.1% 210.4 192.9 2Q20 2Q21
Slide 12: Principal & Invest brands drive premiumization
EARNINGS 2Q21 · INVESTOR PRESENTATION 12 PRINCIPAL & INVEST BRANDS DRIVE PREMIUMIZATION % OF SALES REVENUE +29.7% +18.6% 40.6% 45.3% 49.2% 2Q21 vs. 2Q19 Better sales revenue mix +7.4% +1.3% +860bp 59.4% 54.7% 50.8% From 40.6% to 49.2% 2Q19 2Q20 2Q21 Principal+Invest Other
Slide 13: Operating margin in line with 2022 goal
EARNINGS 2Q21 · INVESTOR PRESENTATION 13 OPERATING MARGIN IN LINE WITH 2022 GOAL: (Ch$ MILLION) 2Q20 2Q21 % YOY CONSOLIDATED REVENUE 192,850 210,395 +9.1% COST OF SALES 114,362 129,214 +13.0% SG & A 43,820 47,546 +8.5% OPERATING PROFIT 33,759 33,882 +0.4% OPERATING MARGIN 17.5% 16.1%
Slide 14: Harvest 2021: Chile
EARNINGS 2Q21 · INVESTOR PRESENTATION 14 HARVEST 2021: CHILE Total volume (SAG): Highest ever, at 1,340 million liters. • Estimated growth for Concha y Toro vs. previous year: 15% to 20% Final result vs. previous year: +27.4% • Estimated growth in own production vs. previous year: 20% Final result v
Slide 15: Harvest 2021: Argentina
EARNINGS 2Q21 · INVESTOR PRESENTATION 15 HARVEST 2021: ARGENTINA • 2021e industry volume compared to 2020 harvest: +7% • Trivento 2021 volume: +29% CONCLUSION: Declining costs
Slide 16: Growth in super premium and ultra premium wines
EARNINGS 2Q21 · INVESTOR PRESENTATION 16 REMARKABLE GROWTH RATES IN SUPER PREMIUM Y ULTRA PREMIUM WINES (SALES VALUE) Q2 2021/2020 Q2 2021/2019 DON MELCHOR +332.8% +117.2% MARQUES DE CASA CONCHA +83.4% +34.1%
Slide 17: Sales revenue growth in the three major markets
EARNINGS 2Q21 · INVESTOR PRESENTATION 17 SALES REVENUE GROWTH IN THE THREE MAJOR MARKETS SALES REVENUE Q2 2021/2020 Q2 2021/2019 IN RESPECTIVE CURRENCY UK (GBP) 1.8% 29.5% USA (USD) 11.2% 11.6% CHILE (Ch$) 31.7% 33.6%
Slide 18: Strategic plan and targets for 2023-2025
EARNINGS 2Q21 · INVESTOR PRESENTATION 18 We have begun our strategic plan and setting targets for 2023-2025
Slide 19: Investment for future growth
EARNINGS 2Q21 · INVESTOR PRESENTATION 19 INVESTMENT FOR FUTURE GROWTH (USD MILLION) 3.0 9.1 4.6 4.1 4.6 5.5 87.5 69.6 53.2 52.6 37.9 35.6 2017 2018 2019 2020 2021E 2022E Viña Concha y Toro (S/ Trivento) Trivento Investment in infrastructure and production capacity. Does not include the increase in o
Slide 20: CAPEX 2021-2022E
EARNINGS 2Q21 · INVESTOR PRESENTATION 20 CAPEX 2021- 2022E
Slide 21: Main Business Trends
EARNINGS 2Q21 · INVESTOR PRESENTATION 21 02. Main Business Trends Blanca Bustamante, Director of IR
Slide 22: Sales volume
EARNINGS 2Q21 · INVESTOR PRESENTATION 22 SALES VOLUME VOLUME 2Q21 2Q20 Chg. 2Q21/2Q20 2Q19 Chg. 2Q21/2Q19 (TH. LITERS) Export Markets 56,132 52,572 6.8% 50,681 10.8% Chile 22,186 21,587 2.8% 20,750 6.9% -Wine 17,280 18,972 (8.9%) 18,276 (5.4%) -Beer & Spirits 4,906 2,615 87.6% 2,474 98.3% USA 9,658
Slide 23: Sales value
EARNINGS 2Q21 · INVESTOR PRESENTATION 23 SALES VALUE SALES (Ch$million) 2Q21 2Q20 Chg. 2Q21/2Q20 2Q19 Chg. 2Q21/2Q19 Export Markets 140,655 129,929 8.3% 109,194 28.8% Chile 34,200 25,336 35.0% 24,622 38.9% -Wine 25,014 21,520 16.2% 20,158 24.1% -Beer & Spirits 9,186 3,816 140.7% 4,464 105.8% USA 32,
Slide 24: Strong growth of premium brands
EARNINGS 2Q21 · INVESTOR PRESENTATION 24 STRONG GROWTH OF PREMIUM BRANDS S A L E S GR OW TH B Y B R A N D C A T E GOR Y Value YoY Volume YoY ~19% Principal 13.4% 19.1% Growth in volume Invest 25.5% 20.0% and value for Protect (4.2%) (2.4%) Watch (14.6%) (10.4%) Principal & Invest Other brands 15.3%
Slide 25: Principal brands: Casillero del Diablo & line extensions
EARNINGS 2Q21 · INVESTOR PRESENTATION 25 PRINCIPAL BRANDS: CASILLERO DEL DIABLO & LINE EXTENSIONS Strong growth from a diversified number of markets: UK, Ireland, Chile, Brazil, US and S.Korea. 1.902 12.3% +19% Growth in value In 2Q21 1.606 Line extension: Devil’s Collection (+50%) , Reserva Privada
Slide 26: Global campaign
EARNINGS 2Q21 · INVESTOR PRESENTATION 26 GLOBAL CAMPAIGN VALUE CREATION – INNOVATIVE – INCREASING BRAND AWARENESS
Slide 27: Invest brand category: +20% volume and +26% value growth
EARNINGS 2Q21 · INVESTOR PRESENTATION 27 INVEST BRAND CATEGORY: +20% VOLUME AND +26% VALUE GROWTH DIABLO MARQUES DE DON CONO SUR CONO SUR TRIVENTO 1000 BONTERRA CASA CONCHA MELCHOR BICICLETA ORGANICO RESERVE STORIES 2Q21 VOLUME GROWTH 174% 79% 306% 4% 58% 20% 29% 23%
Slide 28: Market diversification allows sustained sales growth
EARNINGS 2Q21 · INVESTOR PRESENTATION 28 2Q21: Market diversification allows a sustained sales growth SALES BY MARKET % OF SALES VALUE vs 2Q20 VOLUME vs 2Q20 VALUE vs 2Q19 VOLUME vs 2Q19 A MARKETS UK 24.6% (0.4%) (4.7%) 47.4% 17.6% Chile 17.2% 35.0% 2.8% 38.9% 6.9% USA 15.5% (6.9%) 5.4% 15.5% 3.6% N
Slide 29: Financial Results
EARNINGS 2Q21 · INVESTOR PRESENTATION 29 03. Financial Results Osvaldo Solar, CFO
Slide 30: Financial Results agenda
EARNINGS 2Q21 · INVESTOR PRESENTATION 30 Financial Results I. Operating Margin and EBITDA Margin II. Non-Operating Profit A GE N D A 1. Financial Costs and Exchange Differences 2. Currency Diversification 3. Associated Companies III. Net Income IV. Financial Ratios 1. Return on Invested Capital 2. N
Slide 31: Financial Results agenda
EARNINGS 2Q21 · INVESTOR PRESENTATION 31 Financial Results I. Operating Margin and EBITDA Margin II. Non-Operating Profit A GE N D A 1. Financial Costs and Exchange Differences 2. Currency Diversification 3. Associated Companies III. Net Income IV. Financial Ratios 1. Return on Invested Capital 2. N
Slide 32: In 2Q21, EBIT generated a margin of 16.1%
EARNINGS 2Q21 · INVESTOR PRESENTATION 32 In 2Q21, EBIT Ch$ million 2Q21 2Q20 Var (%) generated a margin of GROSS INCOME 81,182 78,488 3.4% 16.1% GROSS MARGIN 38.6% 40.7% (210 bp) • Results and margins were driven by SG & A 47,546 43,820 8.5% higher sales, an improved mix and costs and expenses contr
Slide 33: Sales mix, exchange rate: EBIT margin 16.1%
EARNINGS 2Q21 · INVESTOR PRESENTATION 33 Sales Mix, Exchange Rate: EBIT Margin 16.1% 132,1 129,9 130 128,0 32% 120 117,8 116,7 115,9 111,4 27% 115,9 110 105,7 112,8 112,1 103,7 112,5 109,2 100,0 106,8 100 107,0 22% 100,0 101,6 96,6 17,5% 90 17,2% 15,8% 16,1% 17% 13,6% 14,1% 80 13,3% 15,6% 12,1% 10,9
Slide 34: In 2Q21, EBITDA grew 2.5% with a 20.1% margin
EARNINGS 2Q21 · INVESTOR PRESENTATION 34 EBITDA MARGIN (*) 1Q 2Q 3Q 4Q 12M In 2Q21, EBITDA grew 2017 11.1% 15.1% 14.7% 16.2% 14.5% 2.5% with a 20.1% 2018 12,9% 14,9% 13,5% 15,9% 14.5% margin 2019 12.1% 16.8% 17.3% 17.8% 16,4% Continuous improvement in 2020 14.8% 21.4% 20.7% 19.3% 19.3% margins refle
Slide 35: Financial Results agenda
EARNINGS 2Q21 · INVESTOR PRESENTATION 35 Financial Results I. Operating Margin and EBITDA Margin II. Non-Operating Profit A GE N D A 1. Financial Costs and Exchange Differences 2. Currency Diversification 3. Associated Companies III. Net Income IV. Financial Ratios 1. Return on Invested Capital 2. N
Slide 36: Non-operating profit
EARNINGS 2Q21 · INVESTOR PRESENTATION 36 NON-OPERATING PROFIT (Ch$ Million) 2Q21 2Q20 Var (%) Var (Ch$) Net Financial Expenses (*) (2,234) (3,613) (38.2%) 1,379 Exchange Differences (275) (1,589) (82.7%) 1,314 Associated Companies (**) (163) (54) 200.6% (109) Non-Operating Profit (2,672) (5,256) (49
Slide 37: Financial expenses and exchange differences
EARNINGS 2Q21 · INVESTOR PRESENTATION 37 2.1 FINANCIAL EXPENSES AND EXCHANGE DIFFERENCES Financial Expenses decreasing in line with debt reduction Non-operating income improved by Ch$ 2,584 million, as a result of: • Lower financial expense of Ch$ 1,410 million • Lower loss due to exchange differenc
Slide 38: Currency diversification
EARNINGS 2Q21 · INVESTOR PRESENTATION 38 2.2 CURRENCY DIVERSIFICATION SALES INVOICES CURRENCY DIVERSIFICATION FIRST HALF 2021 ARG MXN CNY BRL 0,5% 3,7% 1,0% CLP • Currency diversification mitigates exchange 7,0% 16,1% NOK variations compared to use of the USD as a SEK 1,7% 2,5% single currency. CAD
Slide 39: Results of associated companies
EARNINGS 2Q21 · INVESTOR PRESENTATION 39 2.3 RESULTS OF ASSOCIATED COMPANIES: Almaviva Ch$ -229 million and Corchera Ch$ 112 million ALMAVIVA INDUSTRIA CORCHERA 3,139 626 2,804 2,107 2,142 344 269 231 112 55 2017 2018 2019 2020 2T20 2T21 2017 2018 2019 2020 2T20 2T21 2Q20 2Q21 -134 -229
Slide 40: Financial Results agenda
EARNINGS 2Q21 · INVESTOR PRESENTATION 40 Financial Results I. Operating Margin and EBITDA Margin II. Non-Operating Profit A GE N D A 1. Financial Costs and Exchange Differences 2. Currency Diversification 3. Associated Companies III. Net Income IV. Financial Ratios 1. Return on Invested Capital 2. N
Slide 41: Results 2Q21: Net income
EARNINGS 2Q21 · INVESTOR PRESENTATION 41 RESULTS 2Q21 : NET INCOME (Ch$ million) 2Q21 2Q20 Var (%) Var $ Income 210,395 192,850 9.1% 17,546 Gross Profit 81,182 78,488 3.4% 2,694 SG & A 47,546 43,820 8.5% 3,727 Operating Profit 33,882 33,759 0.4% 123 Non-Operating Profit (2,672) (5,256) (49.2%) 2,584
Slide 42: In 1H21, net income increased 29.9%
EARNINGS 2Q21 · INVESTOR PRESENTATION 42 In 1H21, net income increased +29.9% and net margin rose by 160bp NET INCOME 90.000 12,0% 80.000 77,994 10,0% 70.000 10.1% 10.1% 60.000 8.4% 8,0% 52,500 49,575 49,111 50.000 8.0% 6,0% 8.1% 8.0% 37,746 40.000 29,060 30.000 4,0% 20.000 2,0% 10.000 - 0,0% 2017 2
Slide 43: Financial Results agenda
EARNINGS 2Q21 · INVESTOR PRESENTATION 43 Financial Results I. Operating Margin and EBITDA Margin II. Non-Operating Profit A GE N D A 1. Financial Costs and Exchange Differences 2. Currency Diversification 3. Associated Companies III. Net Income IV. Financial Ratios 1. Return on Invested Capital 2. N
Slide 44: Return on invested capital
EARNINGS 2Q21 · INVESTOR PRESENTATION 44 4.1 RETURN ON INVESTED CAPITAL RETURN ON INVESTED CAPITAL 12,0% 10.4% 10.5% 10,0% 8.5% 8,0% 7.3% 7.2% 7.1% 6,0% 4,0% 2,0% 0,0% 2017 2018 2019 2020 jun-20 jun-21 ROIC: (Operating margin – Taxes + Exchange differences) / (Equity – Other financial liabilities –
Slide 45: Reduction in net financial debt
EARNINGS 2Q21 · INVESTOR PRESENTATION 45 4.2 REDUCTION IN NET FINANCIAL DEBT: FINANCIAL STRENGTH -9.5% NET FINANCIAL DEBT (*) Ch$ MILLION 266,898 265,935 250,413 240,632 221,101 201,374 Decreased: Ch$ 25,304 mill. vs Jun-20 Increased: Ch$ 39,258 mill. vs Dec-20 2017 2018 2019 2020 jun-20 jun-21 (*)
Slide 46: Decline in debt level relative to equity
EARNINGS 2Q21 · INVESTOR PRESENTATION 46 4.2 DECLINE IN DEBT LEVEL RELATIVE TO EQUITY: FINANCIAL STRENGTH NET DEBT RATIO (NET FINANCIAL DEBT(*) / EQUITY) 1,40 1,20 1.2 1.2 1.2 1,00 0,80 0.59 0,60 0.52 0.49 0.43 0.42 0,40 0.36 0,20 - 2017 2018 2019 2020 jun-20 jun-21 Net Debt Ratio Ratio Endeudamient
Slide 47: Improvement in debt vs. cash generation
EARNINGS 2Q21 · INVESTOR PRESENTATION 47 4.3 SUBSTANTIAL IMPROVEMENT IN DEBT VS. CASH GENERATION: FINANCIAL STRENGTH EBITDA / FINANCIAL EXPENSES NET FINANCIAL DEBT / EBITDA 3.3 11.0 3.0 9.7 2.7 2.7 8.9 8.6 8.4 2.5 7.4 1.8 1.6 2.5 2017 2018 2019 2020 jun-20 jun-21 2017 2018 2019 2020 jun-20 jun-21 EB
Slide 48: Sustainability
EARNINGS 2Q21 · INVESTOR PRESENTATION 48 04. Sustainability Valentina Lira, Gerente Sustentabilidad
Slide 49: Corporate Sustainability Report 2020
EARNINGS 2Q21 · INVESTOR PRESENTATION 49 CORPORATE SUSTAINABILITY REPORT 2020 Concha y Toro winery issues its Sustainability Report annually, evaluating this area’s management in its three production origins: Chile, Argentina and the United States. • 8 consecutive Reports. • Methodology used is the
Slide 50: Sustainability strategy based on six key pillars
EARNINGS 2Q21 · INVESTOR PRESENTATION 50 The Sustainability Strategy is based on six key pillars and structured with a stakeholders’ vision. It is monitored annually for fulfillment of its objectives and targets. Generate a positive impact with every bottle of wine we put in your hands.
Slide 51: Our environment
EARNINGS 2Q21 · INVESTOR PRESENTATION 51 CLIMATE CHANGE Strategic Pillar Carbon Footprint - 14% OUR ENVIRONMENT CyT Group’s reduction in emissions since 2017 We use our resources responsibly and incorporate a regenerative approach to maintain and improve our environment’s condition. WATER Water Foot
Slide 52: Climate change
EARNINGS 2Q21 · INVESTOR PRESENTATION 52 CLIMATE CHANGE 15 YEARS OF CLIMATE MANAGEMENT Concha y Toro measures its Carbon Footprint annually since 2007. Results are verified by an independent third party (Deloitte). Methodology: GhG Protocol • Emissions consider 100% of Scopes 1 and 2 and 88% of Scop
Slide 53: CO2 emissions
EARNINGS 2Q21 · INVESTOR PRESENTATION 53 305-1 305-2 305-3 305-4 2017 2018 2019 2020 % CO2 EMISSIONS EMISIONES GLOBALES (Miles de tCO2e) Scope 1 y 2 71,9 56,6 54,2 46,9 KEY CLIMATE CHANGE INDICATOR Scope 3 * 241,0 219,1 226,6 223,2 *Cobertura 86% 88% 87% 88% TOTAL 312,9 275,6 280,8 270,1 -14% • Whil
Slide 54: Water
EARNINGS 2Q21 · INVESTOR PRESENTATION 54 WATER Concha y Toro measures its Water Footprint annually since 2010. Results are verified by an independent third party. Methodology: Water Footprint Network. In addition, the Company reports its Water Consumption for 100% of its productive operations (from
Slide 55: Water footprint 2020
EARNINGS 2Q21 · INVESTOR PRESENTATION 55 WATER FOOTPRINT 2020 48% Lower Water 56.7 Footprint than the Liters per global wine ECOLOGICAL WATER FOOTPRINT 125 cc industry average glass Water Footprint The amount of water needed to produce a good, considering all possible sources of water: • Blue Footpr
Slide 56: Water consumption 2020
EARNINGS 2Q21 · INVESTOR PRESENTATION 56 WATER CONSUMPTION 2020 DIRECT USE OF EXTRACTED WATER 44.4 Millions of cubic meters consumed during 2020 in the 3 production County Water origins 0.3% is used in facilities and the majority for human consumption. Surface Water 40% Is entirely used to irrigate
Slide 57: Water consumption
EARNINGS 2Q21 · INVESTOR PRESENTATION 57 303-3 303-5 2019 2020 % WATER CONSUMPTION CONSUMO DE AGUA (Mill m 3 ) KEY WATER EFFICIENCY INDICATOR Riego Viñedos 42,3 43,3 98% Operacional + C.Hum ano 0,9 1,1 2% • While the holding’s sales volume increased 4.6% TOTAL 43,3 44,4 2,6% between 2019 and 2020, w
Slide 58: 2020 Sustainability Report addresses standardized GRI indicators
EARNINGS 2Q21 · INVESTOR PRESENTATION 58 The 2020 Sustainability Report addresses 140 Standardized Indicators using the GRI methodology: 1. General Contents(56) • Company Profile and Strategy (15) • Ethics and Governance (24) • Reporting Practices (13) • Stakeholders (4) 2. Specific Contents (82) •
Slide 59: Performance of the Company's share
EARNINGS 2Q21 · INVESTOR PRESENTATION 59 05. Performance of the Company’s share Claudia Cavada, Investor Relations
Slide 60: Company valuation multiples (2018-2021): P/E
EARNINGS 2Q21 · INVESTOR PRESENTATION 60 COMPANY VALUATION MULTIPLES (2018 - 2021) The share price does not match its performance at the earnings level (P/E ratio)... PRICE / EARNINGS VIÑA CONCHA Y TORO 26,0x 24,0x 22,0x 20,0x 18,0x 17.3x 16,0x 14,0x 12,0x 11.5x 10,0x jul-18 oct-18 jul-19 oct-19 ene
Slide 61: Company valuation multiples: EV/EBITDA
EARNINGS 2Q21 · INVESTOR PRESENTATION 61 COMPANY VALUATION MULTIPLES (2018 - 2021) ... nor with its best operational performance (EV/EBITDA ratio) EV / EBITDA VIÑA CONCHA Y TORO 16,0x 13,0x 11.6 x 10,0x 7.7 x 7,0x jul-18 oct-18 ene-19 abr-19 jul-19 oct-19 ene-20 abr-20 jul-20 oct-20 ene-21 abr-21 ju
Slide 62: Multiples premium vs IPSA has been lost
EARNINGS 2Q21 · INVESTOR PRESENTATION 62 The award that CyT had on the IPSA in its multiples has been lost since March 2020, coinciding with the best results of the Company. EV/EBITDA Trailing CyT vs IPSA 16,0x 14,7x 14,0x 12,0x 9,8x 10,0x 9,8x 8,0x 7,8x 6,0x 4,0x IPSA Index CONCHA CI Equity 2,0x 07
Slide 63: Concha y Toro among the most punished IPSA stocks
EARNINGS 2Q21 · INVESTOR PRESENTATION 63 Ratio EV/EBITDA Trailing Concha y Toro is among Valor actual vs inicial 1 ECL CI Equity 3Y 0,3 Valor actual vs inicial 1 CAP CI Equity 2Y 0,3 Valor actual vs inicial 1 CAP CI Equity 1Y 0,2 the most punished 2 CONCHA CI Equity 3 CAP CI Equity 0,5 0,6 2 CENCOSH
Slide 64: Valuation vs. international peers
EARNINGS 2Q21 · INVESTOR PRESENTATION 64 VALUATION VS. INTERNATIONAL PEERS RATIO EV/EBITDA U12M New US industry pairs (EV/EBITDA FWD) VINTAGE WINE ESTATES 10,9x DUCKHORN 23,7x SOURCE: BLOOMBERG, DATA AS OF JULY 22, 2021
Slide 65: Comparison with the peer group
EARNINGS 2Q21 · INVESTOR PRESENTATION 65 COMPARISON WITH THE PEER GROUP VIÑA CONCHA Y TORO TREASURY WINE ESTATES VINTAGE WINE ESTATES PREMIUM WINE PORTOLFIO 50% 71% 99% (US$10 PRINCE POINT) REVENUE GROWTH 8,6% -0,5% 11,0% (2018-2022E) EBITDA GROWTH 18,6% 2,5% 24,4% (2018-2022E) EBITDA MARGIN 2021E 1
Slide 66: Company vision
EARNINGS 2Q21 · INVESTOR PRESENTATION 66 COMPANY VISION 01. A misalignment of the valuation of its results is observed. The share price does not reflect a better performance at the operational level (EV/EBITDA ratio) or at the profit level (P/E ratio). 02. When comparing with its international peers
Slide 67: Slide 67
Slide 68: Potential: focus on premium brands with high growth potential
EARNINGS 2Q21 · INVESTOR PRESENTATION 68 Focus on premium brands with high growth potential • Brand Matrix is the reference framework for defining sales targets and marketing investment. • In 2020, 25 brands accounted for 80.5% of sales. • Continuous revision seeking greater focus. HIGH INVEST PRINC