Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — Investor Presentation (June 2014)
46 slides from Vina Concha Y Toro's investor presentation, June 2014
Slide 1: Corporate Presentation
Corporate Presentation June 2014
Slide 2: Concha y Toro: At a Glance
1 Concha y Toro: At a Glance
Slide 3: At a Glance
At a Glance • 1883 Foundation of Concha y Toro in Pirque • 130 Years of History: Chile´s Leading Wine Producer • Public Company Since 1933: Main ownership in two families with a long-term vision and passion for wine • 1994 First winery in the world to trade in the NYSE 1 3
Slide 4: At a Glance
At a Glance • 1996 Expansion to Argentina Trivento Winery • 1997 Joint Venture between Concha y Toro and Baron Philippe de Rothschild • 2000 Brand Building & Strengthening Global Reach • 2001 Concha y Toro UK started its operations in United Kingdom, first distribution subsidiary. • 2010 Manchester
Slide 5: Holding Concha y Toro
Holding Concha y Toro Shareholder Structure (March 31, 2014) Stock Information Date 31.03.2014 05.06.2014 Stock Price (Ch$) 1,130 1,140 N° Stocks in Market 747,005,982 747,005,982 1 Market Cap (Th. Ch$) 844,042,059 851,586,819 5
Slide 6: Concha y Toro: Leading Position
Concha y Toro: Leading Position Domestic Market Share 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q2014 Concha y Toro 27.1 28.6 30.0 29.7 31.5 30.7 30.4 29.6 28.5 27.5 Santa Rita 24.4 25.5 27.9 28.7 28.9 29.4 29.1 28.0 29.5 29.5 San Pedro - Tarapacá 21.7 21.9 21.8 23.0 22.5 24.4 24.6 26.7 27.3 29.
Slide 7: Holding Concha y Toro
Holding Concha y Toro Consolidated Sales (million Ch$) +25.5% Export Markets include exports to third parties and distribution subsidiaries US and ARG exports excludes shipments to the company’s distribution subsidiaries Consolidated Volume (million 9 liter cases, Wine) Currency Mix 3M14 3M13 CLP 20
Slide 8: Holding Concha y Toro
Holding Concha y Toro Consolidated EBITDA Consolidated Mg. EBITDA (million Ch$) (% of Sales) CAGR: 6.6% +63.1% Consolidated Net Profit (million Ch$) TC Wine Cost +67.4% 1 8
Slide 9: Concha y Toro: Performace
Concha y Toro: Performace Income Statement 1Q14 1Q13 Change % Sales (Ch$ million) $ 114,344 $ 91,081 25.5% Exports * (Ch$ million) $ 78,896 $ 59,274 33.1% Exports * (US$ million) $ 142 $ 125 13.5% % Exports 69.0% 65.1% Export volume * ('000 cases) 4,484 4,107 9.2% Operating Result (Ch$ million) $ 11
Slide 10: Global Wine Industry
2 Global Wine Industry
Slide 11: Wine Industry: Top wine producers
Wine Industry: Top 10 wine producers • Global Production decreasing 0.1% per year • 9.4% increase in 2013 Source: OIV 2 11
Slide 12: 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 Per capita 9 48 24 37 1 20 7 24 20 24 Consumption (Lts) 2 Source: OIV 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 2 Source: OIV 13
Slide 14: 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 2 14
Slide 15: 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 16: Business Model
3 Business Model — . 2 we a =
Slide 17: Key Factors & Growth Drivers
Key Factors & Growth Drivers Quality Global Brand Presence Building 3 17
Slide 18: Quality
Quality Exclusive focus on wine Quality Quality Assurance Investments: supports and Consistency growth and innovation 3 18
Slide 19: Exclusive Focus on Wine
Exclusive Focus on Wine Global Export Value (€) Increasing 5.2% per year (millon liters) CASILLERO DEL DIABLO CABERNET SAUVIGNON 2010 SALES 2003: 1.0M cases Finest Value Cabernet on the planet SALES 2013: 3.8M cases Matthew Jukes, Daily Mail, UK CHANGE: +3.7 times February 2012 3 19
Slide 20: Quality Assurance and Consistency
Quality Assurance and Consistency As of March 31, 2014 9 VALLEYS 9,086 Hectares Planted 51 VINEYARDS 24 VARIETY 3 20
Slide 21: Quality Assurance and Consistency
Quality Assurance and Consistency As of March 31, 2014 3 VALLEYS 8 VINEYARDS 1,154 Hectares Planted 3 21
Slide 22: Quality Assurance and Consistency
Quality Assurance and Consistency As of March 31, 2014 3 VALLEYS 15 VINEYARDS 464 3 Hectares Planted 22
Slide 23: Quality Assurance and Consistency
Quality Assurance and Consistency Hectares Planted As of March 31, 2014 TWE (AUS/USA/NZ/IT) 11,000 Concha y Toro (CHI/ARG/USA) 10,705 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 3 Source: Companies Fact Sheet, We
Slide 24: CAPEX
CAPEX Sustained Investment Over Time (US$ million) 2013 Capex Disclosure ** Inorganic Growth: Fetzer (216.0) + Kross (2.7) 3 24
Slide 25: Production Capacity Through Years
Production Capacity Through Years Planted Hectares Wine Storage & Ageing Capacity (million liters) 3 25
Slide 26: Brand Building
Brand Building Strong Portfolio of Wines Brand Building Strong Brand Recognition 3 26
Slide 27: Strong Portfolio of Wines
Strong Portfolio of Wines Multi Origin Brands Chile Argentina USA 3 27
Slide 28: Strong Portfolio of Wines
Strong Portfolio of Wines 3 28
Slide 29: Strong Brand Recognition
Strong Brand Recognition For the third consecutive year, Concha y Toro is recognized as the “World's Most Admired Wine Brand” (2011 – 2013) 3 29
Slide 30: Strong Brand Recognition
Strong Brand Recognition 90+ BRAND 3 30
Slide 31: Global Presence
Global Presence Strong Distribution Network Global Presence Market Diversification 3 31
Slide 32: Strong Distribution Network
Strong Distribution Network Global 145 Destination Presence Countries 3 32
Slide 33: Strong Distribution Network
Strong Distribution Network Export Sales Export Volume (million Ch$, Wine) (thousand cases, Wine) +32.1% +9.2% Average Export Price Premium Wines Export Volume (US$ / 9 liter Case, Wine) (thousand cases) +3.2% +23.6% 3 33
Slide 34: 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 35: Our Distribution Subsidiaries
Strong Distribution Network Distribution Subsidiaries: Driving the growth Volume Volume Volume Volume Volume Volume 2009 2010 2011 2012 2013 3M 2014 Total Volume Holding 28,108 29,203 29,658 30,196 30,266 6,299 Total Volume through our 15,630 15,883 17,332 19,925 19,839 4,403 Distribution Subsidairi
Slide 36: Market Diversification
Market Diversification The Chilean Bottled Export Industry – Concha y Toro Leading Position Share over % Part of CyT in Rank Growth Rank 2012 Country chilean bottled total Chilean Rank 2013 2013/2012 export (volume) bottled Exports st st 1 1 st # United Kingdom 15.7% -13.7% 45.3% 1 nd st 2 2 nd # US
Slide 37: Market Diversification
Market Diversification Domestic Market – Premium Wine Growth (Thousand Liters) +3.7% % Premium/ % Premium/ Year Total Volume Total Value 2006 3.1% 13.0% 2007 2.7% 13.2% 2008 3.1% 15.2% 2009 3.5% 16.3% 2010 4.1% 17.5% 3 2011 2012 2013 5.2% 6.2% 6.3% 20.2% 22.9% 24.3% 37 1Q14 6.7% 26.7%
Slide 38: 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… 38
Slide 39: Corporate Presentation
Corporate Presentation June 2014
Slide 40: Exhibits
4 Exhibits c = Sur TRIVENTO r ConcHA Y TORO mr? ile =, a. q z i \f ,
Slide 41: Bottled Sales 1Q2014 & 3M2014
Bottled Sales 1Q2014 & 3M2014 Change Total Sales⁽⁽ *⁾⁾ (in Ch$ million) 1Q14 1Q13 (%) Chile Domestic Market - wine 11,368 11,556 -1.6% Chile Domestic Market - new business 10,314 5,849 76.3% Export markets⁽¹⁾ 73,901 55,383 33.4% Argentina Domestic 910 1,215 -25.1% Argentina Exports⁽²⁾ 3,550 2,995 18
Slide 42: Income Statement 1Q2014 & 3M2014
Income Statement 1Q2014 & 3M2014 1Q2014 1Q2013 Change Million. Ch Million. Ch % Operating Results Sales revenues 114,344 91,081 25.5% Cost of sales (72,050) (60,526) 19.0% % of sales -63.0% -66.5% Gross Profit 42,295 30,555 38.4% % of sales 37.0% 33.5% Selling & Adm. Expenses (30,764) (24,855) 23.8%
Slide 43: Exchange Rate Main Producers
Exchange Rate Main Producers Currencies against USD CLP against USD 4 43
Slide 44: Financial Debt
Financial Debt Financial Debt* as of: Mar-14 Mar-13 Ch$ MM Av. Interest rate Ch$ MM Av. Interest rate USD 137,366 3.06% 148,417 2.93% EUR 1,955 1.32% GBP 3,034 1.49% 2,509 2.36% CLP 18,853 6.00% UF 81,930 3.74% 82,061 3.74% ARS 5,596 17.06% 7,350 14.58% BRL 8,678 11.63% 3,626 9.80% MXN SEK 1,013 2.1
Slide 45: Concha y Toro’s Stock
Concha y Toro’s Stock US$ 1.5 million of Average Daily Value Traded in 2014 4 45
Slide 46: 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) 4 Source: ODEPA 46
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