Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — Q2 2017 Earnings Presentation
31 slides from Vina Concha Y Toro's earnings presentation, Sep 5, 2017
Slide 1: Investor Presentation 2Q17 Results
90) STORIES ™ TRIVENTO INVESTOR PRESENTATION 2017 RESULTS Sep 05,2017 VINA CONCHA Y TORO
Slide 2: 2Q17 Overview
2Q17 Overview • Price increases across all markets • Volume increase in Premium categories • Volume decline in Non-Premium categories • Negative f/x impact, lesser extent than in 1Q17 • Higher cost of wine impacting results • Restructuring process in place 2
Slide 3: I. Chile Domestic Market - Wine Sales & Mix
I. Chile Domestic Market - Wine Sales & Mix 3
Slide 4: I. Chile Domestic Market - 2Q trends
I. Chile Domestic Market - 2Q trends 4
Slide 5: I. Chile Domestic Market - Volume
I. Chile Domestic Market - Volume 5
Slide 6: I. Chile Domestic Market - Market Share
I. Chile Domestic Market - Market Share 6
Slide 7: II. Export Markets - Sales & Mix
II. Export Markets - Sales & Mix 7
Slide 8: II. Export Markets - Avg. Price/Liter
II. Export Markets - Avg. Price/Liter 8
Slide 9: II. Export Markets - Volume
II. Export Markets - Volume Total Exports volume: -4.1% 9
Slide 10: II. Export Markets - FX Impact
II. Export Markets - FX Impact Sales Currency Mix 2Q17 2Q16 CLP 19,4% 18,7% USD 34,2% 35,6% GBP 18,9% 18,0% EUR 9,6% 9,7% BRL 7,4% 7,5% CAD 3,4% 3,7% SEK 2,6% 2,5% MXN 2,2% 2,4% ARG 1,5% 1,3% NOK 0,9% 0,8% 10
Slide 11: II. Export Markets - FX Impact
II. Export Markets - FX Impact Quarterly average exchange rates, BCC. * Considers FX rate until August 31/2017 11
Slide 12: II. Export Markets - FX Impact
II. Export Markets - FX Impact Quarterly average exchange rates, BCC. * Considers FX rate until August 31/2017 12
Slide 13: II. Export Markets - FX Impact
II. Export Markets - FX Impact Quarterly average exchange rates, BCC. * Considers FX rate until August 28/2017 13
Slide 14: II. Export Markets - UK Sales
II. Export Markets - UK Sales 14
Slide 15: II. Export Markets - UK Volume & Avg. Price/lt
II. Export Markets - UK Volume & Avg. Price/lt 15
Slide 16: CyT UK remains ahead of the category
II. Export Markets - CyT UK remains ahead of the category IRI data ending 24, jun 2017 Latest 52 wks Total Off Trade Still Wine - Value +0.9% Total Off Trade Still Wine - Volume -0.9% Average Retail Price £5.38 Total Concha y Toro UK - Value +4.9% Total Concha yToro UK - Volume +5.5% Average Retail
Slide 17: II. Export Markets - UK
II. Export Markets - UK Market Leading Wine Brands: #1 Cabernet Sauvignon →Casillero del Diablo #1 Malbec → Trivento Reserve #1 Pinot Noir → Cono Sur Bicicleta #1 Merlot → Isla Negra #1 Sauvignon Blanc → Isla Negra #1 Viognier → Cono Sur 17
Slide 18: III. Argentina - Sales
III. Argentina - Sales* *Argentina sales in 2016 18
Slide 19: III. Argentina - Harvest
III. Argentina - Harvest Volume (million liters) 19
Slide 20: III. Argentina - Avg. Price/lt
III. Argentina - Avg. Price/lt 20
Slide 21: III. Argentina - Domestic
III. Argentina - Domestic • Domestic volume: -41.5% 21
Slide 22: III. Argentina - Exports
III. Argentina - Exports • Direct Exports: -21.2% • Exports through distrib. subsidiaries: +22.6% • CyT UK: +39% 22
Slide 23: IV. Fetzer - Domestic
IV. Fetzer - Domestic Key brands value: • 1000’ Stories: +31.2% • Bonterra: +10.0% 23
Slide 24: V. Restructuring Process
V. Restructuring Process Restructuring process was launched in 2H16 and is expected to finish in 1Q18: • Costs savings • Operational efficiency • Commercial strategy – focus Non-Recurring Expenses in 2Q17: Ch$1,130 mn (SG&A + COGS) (SG&A ex NRE)/ Sales = 25.7% (-30bp YoY) 24
Slide 25: VI. 2Q17 Results
VI. 2Q17 Results EBITDA and EBITDA margin (million Ch$) Results reflect: • Lower consolidated sales: • Higher Premium volume • Lower Non-Premium volume • Higher prices in local currencies • Appreciation of CLP against currencies of exports. Net Income (million Ch$) • Higher cost of wine 25
Slide 26: VII. Financial Position
VII. Financial Position Jun-17 Jun-16 Financial Debt* Avg. Avg. Ch$ MM Ch$ MM Interest rate Interest rate USD 141,113 2.38% 96,736 2.58% EUR GBP CLP 60,487 4.05% 59,298 4.80% UF 53,330 2.40% 49,065 3.41% ARS 6,468 22.43% 3,931 28.19% BRL 5,024 17.80% 6,196 16.67% MXN 2 6.00% SEK Total 266,422 3.54%
Slide 27: VII. Financial Position
VII. Financial Position 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 financial liabi. + Other
Slide 28: Investor Presentation 2Q17 Results
Investor Presentation 2Q17 Results Sep 05, 2017
Slide 29: Chile - Harvest
Chile - Harvest (million liters) 29
Slide 30: Total Sales and Volume by Segment
Change Change Total Sales⁽*⁾ (in Ch$ million) 2Q17 2Q16 6M17 6M16 (%) (%) Chile Domestic Market - wine 19,203 18,465 4.0% 33,484 32,176 4.1% Export markets⁽¹⁾ 111,005 116,463 -4.7% 192,027 200,818 -4.4% Argentina Domestic 2,425 2,178 11.4% 4,407 2,959 48.9% Argentina Exports⁽²⁾ 4,282 5,431 -21.2% 7,
Slide 31: Chile - Bulk Wine Price
Chile - Bulk Wine Price *Source: ODEPA; Price to producer. 31