Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — H1 2024 Earnings Presentation
48 slides from Vina Concha Y Toro's earnings presentation, Jul 31, 2024
Slide 1: Viña Concha y Toro
VINA CONCHA Y TORO
Slide 2: Index
INDEX 01. 1H24 Highlights and Context EDUARDO GUILISASTI, CEO 02. 1H24 Sales Analysis EDUARDO GUILISASTI, CEO 03. 2Q24 and 1H24 Results OSVALDO SOLAR, CFO 04. 2024 Perspective EDUARDO GUILISASTI, CEO
Slide 3: 1H24 Highlights and Context
3 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT EDUARDO GUILISASTI, CEO 1H24 Highlights and Context 01
Slide 4: Chapter 01: 1H24 Highlights and Context
CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT Despite the ongoing challenges in the global industry, we have witnessed a substantial improvement in sales and margins during the first part of the year. This can be attributed to the strength of our competitive advantages and the measures adopted by the comp
Slide 5: Highlights 1H24 vs 1H23
Highlights 1H24 vs 1H23 CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT CONSOLIDATED SALES PREMIUMIZATION +21.6% 51.4% P + I to CLP$ 443,517 m OTHERS M I X P O RT F O L I O P + I (0 bp) GROSS PROFIT GROSS MARGIN EBITDA EBITDA MARGIN 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O +30.4% 39.1% +
Slide 6: Wine Industry
6 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT CONTEXT Wine Industry
Slide 7: Overview of the wine industry as of 1H24
CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT DELIVERED AT THE PRESENTATION OF 4Q23 RESULTS (*) Overview 01. • Decrease in traditional wine consumption. of the wine industry The diagnosis shared in previous • Significant grubbing up of vineyards in the main as of 1H24 meetings has been confirmed. producin
Slide 8: Medium-term vision
CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT Medium-term vision 01. 02. 03. The industry is heading The dynamism that the Chinese The weakness of the exchange rate towards a new configuration: market will experience in the has strongly affected Japan, fewer relevant players and less medium term, the most
Slide 9: Medium-term vision
CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT Medium-term vision 04. 05. The need to adjust grape Sharp drop in prices on the Place production levels in all countries de Bordeaux, in this year's to the new reality of demand. releases. 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O Grubbing u
Slide 10: Great opportunities for our company
CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT Great opportunities for our company, which anticipated this new scenario. 01. 02. In August 2022, the Company began a All the Company’s areas adjusted to a profound transformation process of the new scenario, which turned out to be Concha y Toro Holding. worse
Slide 11: Viña Concha y Toro's Business Model
CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT Viña Concha y Toro’s Business Model AGRICULTURAL PRODUCTIONS WINEMAKING CAPACITY PRODUCTION PL ANTS 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CENTER OF EXCELLENCE COMMERCIAL AREA 11
Slide 12: Business Model: Agricultural Productions
CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT Viña Concha y Toro’s Business Model AGRICULTURAL PRODUCTIONS Yield per hectare – 3 year average (Base 100 year 2017) Productive hectares: 140 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 130 CHILE: 10,849 ARGENTINA: 1,500 120 USA: 379 110 Devel
Slide 13: Business Model: Winemaking Capacity
CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT Viña Concha y Toro’s Business Model WINEMAKING Vinification Cost in Chile (CLP$/L) CAPACITY (Base 100 year 2019) 160 • Smart Winery software 150 • Warehouse automation 140 • Warehouse Rationalization 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O
Slide 14: Business Model: Production Plants
CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT Viña Concha y Toro’s Business Model PRODUCTION Operational Cost in Chile (CLP$/L) PLANTS (Base 100 year 2019) 160 150 140 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O VAR 130 (11.3%) 120 110 100 2023 vs 2022 90 80 70 60 2019 2020 2021 2022 2023
Slide 15: Business Model: Center of Excellence and Commercial Area
CHAPTER 01: 1H24 HIGHLIGHTS AND CONTEXT Viña Concha y Toro’s Business Model CENTER OF COMMERCIAL EXCELLENCE AREA Service centralization in Chile at a lower cost than in Concentrating the different markets in other countries. five large areas, depending on their own characteristics. 1 H 2 4 RES U LT
Slide 16: 1H24 Sales Analysis
16 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 02: 1H24 SALES ANALISYS EDUARDO GUILISASTI, CEO 1H24 Sales Analysis 02
Slide 17: Sales per Value – Only Wine
Sales per Value – Only Wine CHAPTER 02: 1H24 SALES ANALISYS QUARTERLY EVOLUTION (MILLION OF CLP$) 416,065 VAR 335,666 18.8% VS 2Q23 VALUE 224,512 239,190 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 209,193 208,881 191,553 226,537 197,835 161,935 189,050 VAR 24.0% 146,616 1Q 2Q 3Q 4Q
Slide 18: Sales per Volume – Only Wine
Sales per Volume – Only Wine CHAPTER 02: 1H24 SALES ANALISYS QUARTERLY EVOLUTION (THOUSANDS OF 9LC) 14,164 VAR 13,217 3.1% VS 2Q23 VOL 8,293 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 7,944 8,016 7,688 8,290 6,504 7,667 7,459 6,476 VAR 7.2% 5,758 1Q 2Q 3Q 4Q 1H23 1H24 VS 1H23 2022
Slide 19: Main Markets Performance – Only Wine
Main Markets Performance – Only Wine CHAPTER 02: 1H24 SALES ANALISYS PER QUARTER VAR % VALOR 2Q23 3Q23 4Q23 1Q24 2Q24 UK 0.7% 14.4% 34.0% 34.6% 17.5% THE TOP 5 COUNTRIES REPRESENT 72.0% CHILE (0.5%) (2.3%) 12.2% 5.8% 8.8% 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O USA (18.5%) (5.5%
Slide 20: Main Markets Performance – Only Wine
Main Markets Performance – Only Wine CHAPTER 02: 1H24 SALES ANALISYS 1H24 1H24 VAR % VALUE UK 25.2% THE TOP 5 COUNTRIES REPRESENT 71.7% CHILE 7.4% 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O USA 32.5% FROM WINE SALES BRAZIL 35.9% AS OF 1H24 MEXICO 16.8% CONCLUSIONS: • Of the twenty
Slide 21: Main Brands Performance – Only Wine
Main Brands Performance – Only Wine CHAPTER 02: 1H24 SALES ANALISYS PER QUARTER VAR % VALUE 2Q23 3Q23 4Q23 1Q24 2Q24 CASILLERO DEL DIABLO (5.6%) (0.1%) 16.3% 32.7% 22.2% THE TOP 7 BRANDS DIABLO 32.1% 14.0% 41.4% 28.5% 18.3% REPRESENT 65.6% FRONTERA (14.0%) (7.6%) (0.6%) 91.5% 19.1% 1 H 2 4 RES U LT
Slide 22: Main Brands Performance – Only Wine
Main Brands Performance – Only Wine CHAPTER 02: 1H24 SALES ANALISYS 1H24 1H24 VAR % VALUE CASILLERO DEL DIABLO 26.6% DIABLO 22.2% THE TOP 7 BRANDS REPRESENT FRONTERA 47.3% RESERVADO 25.6% 64.8% 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O ISLA NEGRA SEASHORE 32.8% TRIVENTO RESERVE 28
Slide 23: 1H24 Premium Mix
1H24 Premium Mix CHAPTER 02: 1H24 SALES ANALISYS -100 BP IN PRINCIPAL + INVEST MIX – ONLY WINE VAR VAR 26.6% (100) CASILLERO DEL DIABLO VALUE BP VAR 28.3% 55.9% 54.8% 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O TRIVENTO RESERVE VALUE VAR 1H23 1H23 1H24 1H24 47.3% FRONTERA PRINCIPAL
Slide 24: New Business
New Business CHAPTER 02: 1H24 SALES ANALISYS SALES IN VOLUME AND VALUE AT 1H24 VAR (15.3%) VALUE 21,630 18,319 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O VAR (14.9%) VOL 1,342 1,142 1H23 1H24 1H23 1H24 (THOUSANDS OF 9LC) (MILLION OF CLP$) 24
Slide 25: EBIT
EBIT CHAPTER 02: 1H24 SALES ANALISYS QUARTERLY EVOLUTION (MILLION OF CLP$) VAR 54,753 173.5% 33,241 34,780 vs 2Q23 29,757 25,955 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 24,579 24,583 27,860 18,786 21,511 18,622 VAR 191.4% 12,154 6,632 1Q 2Q 3Q 4Q 2023 1H23 2024 1H24 vs 1H23 2022
Slide 26: EBIT Margin
EBIT Margin CHAPTER 02: 1H24 SALES ANALISYS QUARTERLY EVOLUTION 14.0% VAR 13.8% 10.4% 11.1% 11.6% 12.1% 13.4% 12.3% 800 bp 10.7% vs 2Q23 8.7% 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 5.1% 6.0% 4.1% VAR 1Q 2Q 3Q 4Q 2023 1H23 2024 1H24 720 bp vs 1H23 2022 2023 2023* 2024 2023* 13.4
Slide 27: Net Profit
Net Profit CHAPTER 02: 1H24 SALES ANALISYS QUARTERLY EVOLUTION (MILLION OF CLP$) 34,491 VAR 243.1% 25,225 23,201 21,965 vs 2Q23 17,677 21,109 21,751 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 16,722 16,913 9,492 12,740 VAR 6,340 3,154 1Q 2Q 3Q 4Q 2023 2024 263.4% vs 1H23 2022 2023
Slide 28: 2Q24 and 1H24 Results
28 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 03: 2Q24 AND 1H24 RESULTS OSVALDO SOL AR, CFO 2Q24 and 1H24 Results 03
Slide 29: EBIT + EBITDA
EBIT + EBITDA CHAPTER 03: 2Q24 AND 1H24 RESULTS PER QUARTER VAR 2Q24 EBIT 1Q 2Q 3Q 4Q 1H 173.5% CLP$M 6,632 12,154 18,622 27,860 18,786 800 bp 2023 Mg % 4.1% 6.0% 8.7% 10.7% 5.1% VAR 1H24 2024 CLP$M 21,511 33,241 54,753 191.4% Mg % 10.4% 14.0% 12.3% 720 bp 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA
Slide 30: Currency Diversification
Currency Diversification CHAPTER 03: 2Q24 AND 1H24 RESULTS 2Q24 1.6% CNY 0.6% 5.2% EXCHANGE RATE VARIATION ARG MXN 14.2% 2Q24 vs 2Q23 CLP 9.4% BRL 1.5% NOK 1.8% 17.3% SEK USD: 16.7% 2.7% EUR: 15.3% 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CAD LIBRA: 17.6% CYT PORTF OLIO 27.5% IND
Slide 31: Operational Efficiency
Operational Efficiency CHAPTER 03: 2Q24 AND 1H24 RESULTS OF THE COMPANY This process began in September 2022 and will have an approximate impact of CLP$20,000 m at the end of 2025. SEPTEMBER 2022 CLP$ 11,060 m CLP$ 16,000 m 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O START REAL NET
Slide 32: Non-Operating Result
Non-Operating Result CHAPTER 03: 2Q24 AND 1H24 RESULTS 2Q24 (MILLION OF CLP$) 2Q24 2Q23 VAR (CLP$) VAR (%) NET FINANCIAL EXPENSE (*) (4,777) (4,450) 323 7.3% EXCHANGE DIFFERENCES 370 185 185 100.1% NON-OPERATING RESULT (**) (4,407) (4,269) 138 3.2% 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA
Slide 33: Non-Operating Result
Non-Operating Result ** CHAPTER 03: 2Q24 AND 1H24 RESULTS QUARTERLY EVOLUTION – BREAK IN TREND -9,311 -7,265 -7,333 -4,903 -4,407 -5,119 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O -4,269 -3,608 -3,419 -3,063 -1,902 -1,156 1Q 2Q 3Q 4Q 1H23 1H24 2022 2023 2024 (**) Does not consider
Slide 34: Positive prospects for the Non-Operating Result
Positive prospects for the CHAPTER 03: 2Q24 AND 1H24 RESULTS NON-OPERATING RESULT * The Central Bank converges to the inflation target only in the first half of 2026. CUMULATIVE INFLATION 2024 vs 2023 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 2Q24 BENEFITS: NEXT MONTHS: Inflation
Slide 35: Positive prospects for the Non-Operating Result
Positive prospects for the CHAPTER 03: 2Q24 AND 1H24 RESULTS NON-OPERATING RESULT 01. INTEREST RATE 02. DEBT AMOUNT Reduction in absolute terms. 14,0% 12,0% 10,0% 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 8,0% 6.06% 6,07% 6,0% 03. EXCHANGE RATE 4,0% 5,06% 5.05% 2,0% 0,0% Liabiliti
Slide 36: Net Profit and Net Margin
Net Profit (Million of CLP$) and Net Margin (%) CHAPTER 03: 2Q24 AND 1H24 RESULTS 11.8% 9.2% NET MARGIN 2Q24 10.1% 98,810 10.0% 6.2% 87,213 NET MARGIN 1Q24 8.0% 77,994 7.8% 52,500 5.2% 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 43,126 34,491 2.6% 9,492 2019 2020 2021 2022 2023 1H23
Slide 37: Return on Invested Capital
Return on Invested Capital CHAPTER 03: 2Q24 AND 1H24 RESULTS ROIC (%) 7.4% ROIC AS OF JUNE 2024 10.3% 11.3% 6.1% ROIC AS OF MARCH 2024 9.1% 7.2% 7.4% 0.5% 5.8% 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 5.3% 0.5% 2019 2020 2021 2022 2023 1H23 JUN-23 1H24 JUN-24 2023* y 2024* +0.5%:
Slide 38: Net Financial Debt
Net Financial Debt (Million of CLP$) CHAPTER 03: 2Q24 AND 1H24 RESULTS • June is the seasonal pick of the NFD. • The exchange rate variation vs June 2023 was CLP$ 39,000 million. +30,771 406,106 389,255 375,335 321,915 266,898 240,573 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 201,
Slide 39: Low Level of Indebtedness
Low Level of Indebtedness CHAPTER 03: 2Q24 AND 1H24 RESULTS RELATIVE TO THE SIZE OF EQUITY FINANCIAL STRENGTH 1.2 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 0.61 0.63 0.55 0.58 0.52 0.53 0.36 2019 2020 2021 2022 2023 1H23 JUN-23 1H24 JUN-24 NET DEBT RATIO COVENANTS Net Debt Ratio:
Slide 40: Coverage of Financial Expenses
Coverage of Financial Expenses CHAPTER 03: 2Q24 AND 1H24 RESULTS JUNE 2024 FINANCIAL STRENGTH 12.3 9.8 8.8 8.5 5.8 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 5.6 4.6 2.5 2019 2020 2021 2022 2023 1H23 JUN-23 1H24 JUN-24 FINANCIAL COST COVERAGE RATIO COVENANTS Financial Costs Coverag
Slide 41: Net Financial Debt over EBITDA
Net Financial Debt (*) over EBITDA CHAPTER 03: 2Q24 AND 1H24 RESULTS COMPANY OBJECTIVE 4.1 3.6 3.1 2.6 2.4 2.5 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 1.5 1.4 2019 2020 2021 2022 2023 1H23 JUN-23 1H24 JUN-24 NET FINANCIAL DEBT / EBITDA COMPANY OBJECTIVE (*) Net Financial Debt: D
Slide 42: Non-Financial Results
42 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 03: 2Q24 AND 1H24 RESULTS RESULTS Non-Financial
Slide 43: Strength of Our Brands and ESG Performance
43 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 03: 2Q24 AND 1H24 RESULTS BRANDS 01 STRENGTH OF OUR ESG PERFORMANCE 02
Slide 44: Strength of our brands
Strength of our brands CHAPTER 03: 2Q24 AND 1H24 RESULTS For the fourth consecutive year, Trivento became the best- selling Argentine wine brand in the world, according to IWSR Drinks Market Analysis. 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O ANNIVERSARY OF DON MELCHOR Don Melchor
Slide 45: ESG Performance
ESG Performance E HE2R4SRPEESCUTLI VT S CONCHA Y TORO REAL CARBON F OOTPRINT V /S SBTi 2025 goals 2017 – 2025 2 41 P (thousand s of CO2e tons) R A0P3T: E2RQ024 : A2N0D 01. The company has been measuring its carbon footprint since 2007. C H A P TCEH 02. The reduction in emissions in 2023 shows a 42%
Slide 46: 2024 Perspective
46 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 04: 2024 PERSPECTIVE EDUARDO GUILISASTI, CEO 2024 Perspective 04
Slide 47: Looking toward the future
CHAPTER 04: 2024 PERSPECTIVE Looking toward the future 01. 02. We believe that the Company is The new organizational structure prepared to continue growing in has demonstrated, in these first 1 H 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O sales and profitability. We ratify months of it
Slide 48: Viña Concha y Toro
VINA CONCHA Y TORO