Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — Q4 2020 Earnings Presentation
31 slides from Vina Concha Y Toro's earnings presentation, Mar 26, 2021
Slide 1: 4Q20 Results
4Q20 Results IN VESTO R PR ESEN TAT ION
Slide 2: Forward Looking Statements
I N V E S T O R R E L AT I O N S · 4 Q 2 0 2 1 2 Forward This presentation contains forward-looking statements, that should be considered as good faith estimates. Such Looking statements are subject to risks and uncertainties outside of Viña Concha y Toro’s control that could cause Viña Concha y Tor
Slide 3: Agenda
Agenda 01. Overview 02. 4Q20 Results 03. FY 2020 Results 04. Outlook
Slide 4: 01. Overview
4 Q 2 0 R E S U LT S 4 01. Overview
Slide 5: Accelerating progress in the path of our 2022 strategy
4 Q 2 0 R E S U LT S 5 Accelerating progress in the path of our 2022 strategy
Slide 6: 02. 4Q20 Results
4 Q 2 0 R E S U LT S 6 02. 4Q20 Results
Slide 7: 4Q20 Results Summary
4 Q 2 0 R E S U LT S 7 4Q20 Results Summary (Ch$ million) 4Q20 4Q19 Chg (%) Sales 214,504 196,717 9.0% EBIT 33,925 26,432 28.3% EBIT margin 15.8% 13.4% 240 bp Non-operating profit (3,106) (4,236) (26.7%) Profit before taxes 30,819 22,196 38.8% Tax expense (7,458) (5,426) 37.4% Net profit 22,671 16,1
Slide 8: 4Q20 Results: Key brands leading mix improvement
4 Q 2 0 R E S U LT S 8 4Q20 Results: Key brands leading mix improvement S A L E S G R O W T H B Y B R A N D C AT E G O RY S A L E S VA L U E B R E A K D O W N B Y B R A N D C AT E G O RY VA L U E VOLUME Yo Y Yo Y 24.6% 21.7% Principal 23.9% 17.7% Increased 18.5% Invest 34.6% 30.0% Principal & Invest
Slide 9: 4Q20 Sales: Value growth in all business units
4 Q 2 0 R E S U LT S 9 4Q20 Sales: Value growth in all business units Sales (Ch$ million) 4Q20 4Q19 Chg (%) Export Markets 141,333 137,974 2.4% Chile 21,832 16,746 30.4% USA 34,934 31,066 12.5% Argentina 1,256 1,246 0.8% Total Wine Sales 199,356 187,032 6.6% Non-Wine Sales 15,149 9,685 56.4% Total S
Slide 10: Demonstrating the advantages of our integrated distribution and close relation with clients
4 Q 2 0 R E S U LT S 10 Demonstrating the advantages of our integrated distribution and close Market Matrix relation with clients Sales by Market % of Sales Value YoY Volume YoY A MARKETS • Revenue growth was driven by distribution UK 23.9% 32.3% 21.5% offices of UK, Brazil, Mexico, Nordics, and USA
Slide 11: EBIT +28% in 4Q20
4 Q 2 0 R E S U LT S 11 EBIT +28% in 4Q20 • Gross profit driven by higher sales, mix (Ch$ million) 4Q20 4Q19 Chg (%) improvement, higher premium beer and Sales 214,504 196,717 9.0% efficiencies in the productive process, in a Gross profit 87,759 75,885 15.6% context of rising wine costs. Gross margi
Slide 12: Non-operating profit
4 Q 2 0 R E S U LT S 12 Non-operating profit (Ch$ million) 4Q20 4Q19 Chg (%) Var $ A lower non-operating loss in 4Q20 vs. 4Q19 is primarily explained by a higher income from Financial income 472 254 85.7% 218 associates and JV, mainly Almaviva and Corchera, and higher exchange differences. Financial
Slide 13: 4Q20 Results Summary
4 Q 2 0 R E S U LT S 13 4Q20 Results Summary 4Q (Ch$ million) 4Q20 4Q19 Chg (%) Sales 214,504 196,717 9.0% The increase of 40.1% in bottom line reflects a higher EBIT, lower non-operating profit, and higher EBIT 33,925 26,432 28.3% tax expenses. EBIT margin 15.8% 13.4% 240 bp Non-operating profit (3
Slide 14: 03. FY2020 Results
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 14 03. FY2020 Results
Slide 15: 2020 Results
4 Q 2 0 R E S U LT S 15 2020 Results (Ch$ million) 12M20 12M19 Chg (%) Highlights Sales 769,067 656,980 17.1% Sales growth driven by: EBIT 120,311 77,077 56.1% - Higher volume EBIT margin 15.6% 11.7% 390 bp - Mix improvement - Higher average price in sales currencies Non-operating profit (14,827) (6
Slide 16: Premium brands increasing their contribution to 45.5% of sales value
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 16 Premium brands SA LES VA LU E increasing their Principal + Invest: contribution to +590bp 45.5% of sales value 39.6% 45.5% 22.1% 25.1% 17.5% 20.4% 31.9% 31.2% 4.5% 3.8% 24.0% 19.5% 2019 2020 Other brands Watch Protect Invest Principal
Slide 17: Premium brands increasing their contribution to 30.1% of sales volume
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 17 Premium brands SA LES VOLU ME increasing their Principal + Invest: contribution to +410bp 30.1% of sales volume 26.0% 30.1% 16.0% 17.9% 10.0% 12.2% 43.4% 42.3% 8.1% 7.0% 22.5% 20.6% 2019 2020 Other brands Watch Protect Invest Principal
Slide 18: Casillero del Diablo: adding 1MM 9l-cases in 2020
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 18 Casillero del Diablo: adding 1MM 9l-cases in 2020 (Th. 9-l cases) 6.647 5.605 5.224 5.190 2017 2018 2019 2020 2020: +19% global growth
Slide 19: Trivento reserve: adding 560.000 9-l cases in 2020
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 19 Trivento reserve: adding 560.000 9-l cases in 2020 Th. 9-l cases 1.509 952 713 674 2017 2018 2019 2020 2020: +57% global growth
Slide 20: Cono Sur Bicicleta: Accelerated growth in 2020
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 20 Cono Sur Bicicleta: Accelerated growth in 2020 Th. 9-l cases 1.705 1.394 1.437 1.319 2017 2018 2019 2020 2020: +19% global growth
Slide 21: Diablo: Growing at triple-digit rates since its launch
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 21 Diablo: Growing at triple-digit rates since its launch Th. 9-l cases 255 117 50 2018 2019 2020
Slide 22: Bonterra: Strong growth in USA
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 22 Bonterra: Strong growth in USA GLOBAL USA +16% +20% Th. 9-l 561.731 cases 479.067 486.251 399.758 2019 2020 2019 2020
Slide 23: A Markets, B Markets, C Markets
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 23 • A Markets: Sales by Market % of Sales Value YoY Volume YoY - Greatest performance at distribution offices of UK, Brazil, Nordics, where we have been able to execute our strategy and respond promptly to A MARKETS changes in demand. UK 24.9% 43.1% 23.3% - Chile
Slide 24: EBIT +56% in 2020
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 24 EBIT +56% in 2020 (Ch$ million) 12M20 12M19 Chg (%) Sales 769,067 656,980 17.1% • Gross profit driven by higher volumes of key Gross profit 307,870 241,397 27.5% brands, translated into mix improvement. Also Gross margin 40.0% 36.7% 330 bp reflecting favorable f
Slide 25: A positive EBITDA margin evolution in 2020
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 25 A positive EBITDA EBITDA Margin* 1Q 2Q 3Q 4Q 12M margin evolution 2017 11.1% 15.1% 14.7% 16.2% 14.5% in 2020 2018 12.9% 14.9% 13.5% 15.9% 14.5% Sequential improvement of margins show the advances in our strategy 2019 12.1% 16.8% 17.3% 17.8% 16.4% 2020 14.8% 21.4
Slide 26: 04. Outlook
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 26 04.Outlook
Slide 27: In the right path to achieve our 2022 targets
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 27 In the right path to achieve our 2022 targets 2016: 2020: 2022 target: SALES 658,000 MM 769,067 MM 854,000 MM OPERATING PROFIT CLP 70,000 MM CLP 120,311 MM CLP 140,000 MM OPERATING MARGIN 10.7% 15.6% 16.4%
Slide 28: Outlook
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 28 Outlook • The Company ends 2020 with historical results, reflecting: • An increasingly focused commercial strategy in terms of brands and markets, which has allowed strong growth in key brands and the premiumization of the mix. • The benefits of having an integr
Slide 29: 4Q20 Results
4Q20 Results IN VESTO R PR ESEN TAT IO N • MARCH 2021
Slide 30: Market Matrix: focus on Principal and Invest brands
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 30 Market Matrix: focus on Principal and Invest brands 2020 FY HIGH INVEST PRINCIPAL • Don Melchor • Trivento Golden • Casillero del Diablo • Marques de Casa Concha • Trivento Reserve • Casillero Devils Collection 20.4% • Diablo • CdD Reserva Especial 25.1% • Casil
Slide 31: Market Matrix: Specialized commercial areas
4 Q 2 0 · F Y 2 0 2 0 R E S U LT S 31 Market Matrix: Specialized commercial areas A markets B markets C markets Presence & > Priority Next wave Others Priority Market Manager Commercial and Distribution Offices 11 MARKETS 9 MARKETS 115 MARKETS Markets > + 107 COUNTRIES % of 2020 Sales > 85% 9% 6% Co