Vina Concha y Toro S.A. · BCS:CONCHATORO
Vina Concha y Toro — FY2013 Earnings Presentation
43 slides from Vina Concha y Toro's earnings presentation, Apr 7, 2014
Slide 1: 4Q & 12M 2013 Results Presentation
4Q & 12M 2013 Results Presentation Apr 7, 2014 1 1/ 1
Slide 2: Wine Industry: Top 10 wine producers
Wine Industry: Top 10 wine producers • Global Production Decreasing 0.9% per year. • 5.6% decrease in 2012. Source: OIV 2 2/ 2
Slide 3: Wine Industry: Top 10 wine consumers
Wine Industry: Top 10 wine consumers • Global Consumption Increasing 0.6% per year • Potential markets: Asia, US and Latin America Per capita 47 9 37 24 1 20 7 24 20 23 Consumption (lts) Source: OIV 3 3/ 3
Slide 4: Wine Industry: Global Exports
Wine Industry: Global Exports • Global Export Volume Increasing 4.2% per year • Global Export Value (€) Increasing 5.2% per year 10,000 9,955 9,820 9,286 8,953 9,000 8,654 8,545 8,143 million liters 8,000 7,569 7,313 6,961 6,865 7,000 5,999 6,103 6,000 5,000 2000 2001 2002 2003 2004 2005 2006 2007 2
Slide 5: Wine Industry: Global situation
Wine Industry: Global situation • World Wine Consumption Increasing 0.6% per year from 2000 to 2012. • World Wine Production Decreasing 0.9% per year from 2000 to 2012. 30,000 29,000 28,000 27,000 million liters 26,000 25,000 World Wine Consumption 24,000 World Wine Production 23,000 22,000 21,000 2
Slide 6: Income Statement (million Ch$)
Income Statement (million Ch$) 4Q2013 4Q2012 Change 12M 2013 12M 2012 Change Million. Ch Million. Ch % Million. Ch Million. Ch % Operating Results Sales revenues 139,333 132,519 5.1% 475,622 448,250 6.1% Cost of sales (90,017) (91,048) -1.1% (311,387) (302,963) 2.8% % of sales -64.6% -68.7% -65.5% -
Slide 7: Bottled Sales for 4Q13
Bottled Sales for 4Q13 4Q13 4Q12 Change (%) 12M 2013 12M 2012 Change (%) Sales (in Ch$ million) Chile Domestic Market - wine 14,935 15,905 -6.1% 57,144 61,573 -7.2% Chile Domestic Market - new business 9,546 9,684 -1.4% 31,955 28,420 12.4% Export markets⁽¹⁾ 92,981 84,753 9.7% 305,373 277,889 9.9% Ar
Slide 8: Concha y Toro: Consolidated Sales
Concha y Toro: Consolidated Sales Sales Breakdown 2013 Million Ch$ (*) Nominal figures. For years 2008 and before, sales are expressed in Chilean GAAP. For 2009 onwards, sales are expressed in IFRS. First Half data don’t consider Bulk Wine Sales of distribution subsidiaries are included in Export Ma
Slide 9: EBIT
EBIT Million CLP 4Q 2013 4Q 2012 Change 12M 2013 12M 2012 Change Sales Revenues 139,333 132,519 5.1% 475,622 448,250 6.1% Cost of Sales (90,017) (91,048) -1.1% (311,387) (302,963) 2.8% % of sales -64.6% -68.7% 410 bp -65.5% -67.6% 212 bp Gross Profit 49,316 41,471 18.9% 164,235 145,287 13.0% Gross M
Slide 10: Costs: Significant shift in chilean bulk wine price curve
Costs: Significant shift in chilean bulk wine price curve Source: ODEPA 10 10/ 10
Slide 11: Chilean Bulk Wine Exports
Chilean Bulk Wine Exports 11 Source: Vinos de Chile 11/ 11
Slide 12: Total Chilean exports by category
Total Chilean exports by category Jan - Dec 2010 % Change 2010/2009 Liters US$ Av. Price Liters US$ Av. Price ('000) ('000) US$/Ltr Bottled 458,498 $ 1,350,216 $ 2.94 10.7% 11.8% 1.1% Bulk 274,754 $ 201,799 $ 0.73 -1.6% 15.9% 17.8% Total 733,252 $ 1,552,015 $ 2.12 5.7% 12.4% 6.3% Jan -Dec 2011 % Cha
Slide 13: Total Chilean exports by category
Total Chilean exports by category Jan - Dec 2012 % Change 2012/2011 Liters US$ Av. Price Liters US$ Av. Price ('000) ('000) US$/Ltr Bottled 473,391 $ 1,498,518 $ 3.17 0.2% 0.4% 0.2% Bulk 275,634 $ 291,964 $ 1.06 43.8% 47.2% 2.4% Total 749,026 $ 1,790,481 $ 2.39 12.8% 5.9% -6.1% Source: Vinos de Chil
Slide 14: Concha y Toro Export Sales (Bottled Wine)
Concha y Toro Export Sales (Bottled Wine) Million Ch$ Thousand US$ (*) (*) For years 2008 and before, sales are expressed in Chilean GAAP. For 2009 onwards, sales are expressed in IFRS. It considers total exports and the sales of our distribution subsidiaries (UK, Nordics, Brazil, Singapore and Mexi
Slide 15: Concha y Toro Export Sales - Total Bottled Volume
Concha y Toro Export Sales - Total Bottled Volume (Volume Cases ´000) It considers total exports and the sales of our distribution subsidiaries (UK, Nordics, Brazil, Singapore and Mexico) 15 15/ 15
Slide 16: Concha y Toro Export Sales
Concha y Toro Export Sales (Average Price US$/9lt Case) 16 16/ 16
Slide 17: Concha y Toro Export Sales – Premium Wines
Concha y Toro Export Sales – Premium Wines (Volume Cases ´000) 17 17/ 17
Slide 18: Leading market share over Chilean Exports
Leading market share over Chilean Exports Exports of bottled wine* Volume Value 2004 29.2% 25.8% 2005 32.2% 27.2% 2006 33.4% 28.3% 2007 34.9% 30.2% 2008 37.0% 31.4% 2009 38.3% 32.3% 2010 36.6% 31.5% 2011 33.7% 29.7% 2012 35.4% 31.3% 2013 33.9% 30.5% Source: Vinos de Chile (*) Includes bottled & Bag
Slide 19: The Chilean Bottled Industry – Concha y Toro Leading Position
The Chilean Bottled Industry – Concha y Toro Leading Position Year 2013 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 USA 14.1% 2.0% 36.8% 1 th
Slide 20: Concha y Toro export growth by Region – by Volume
Concha y Toro export growth by Region – by Volume Mix of Export Sales % Change Volume Region 2011 2012 2013 2011 2012 2013 U.K. 25.3% 26.8% 25.8% -9.1% 8.5% -0.8% Continental Europe 18.5% 18.2% 18.6% -7.0% 1.0% 4.0% Nordics (SWE, FIN, NOR) (1) 4.8% 4.9% 5.1% -5.2% 6.0% 5.7% U.S.A. 16.3% 15.0% 13.8%
Slide 21: Our Distribution Subsidiaries
Distribution Subsidiaries: Driving the growth Volume Volume Volume Volume Volume Thousand 9L cases 2009 2010 2011 2012 2013 Total Volume Holding 28,108 29,203 29,658 30,196 30,266 Total Volume through our 15,630 15,883 17,332 19,925 19,839 Distribution Subsidairies % of Tota l Vol ume 55.6% 54.4% 58
Slide 22: Export – New World Producers
Export – New World Producers (Bottled wine exports by volume – million liters) % Change % Change % Change % Change 2007 2008 2009 2010 2011 2012 2013 2010/09 2011/10 2012/11 2013/12 Australia 579 513 471 416 353 330 305 -11.8% -15.1% -6.2% -7.6% Chile 375 386 414 458 472 473 467 10.7% 3.0% 0.2% -1.3
Slide 23: UK Market – Consumption Off Trade by Origin
UK Market – Consumption Off Trade by Origin Source: Nielsen 23 23/ 23
Slide 24: US Market – Consumption
US Market – Consumption • Despite the economic downturn, in the US, the wine market has continued increasing in volume in the last years. • Imports: Bottled increased 9.6% up to December 2013. (million 9 liter cases) % Change % Change % Change % Change 2008 2009 2010 2011 2012 2013 2010/2009 2011/20
Slide 25: US Market – Imported Bottled Wines by Country
US Market – Imported Bottled Wines by Country Volume Value Source: The Gomberg Fredrikson Report 25 25/ 25
Slide 26: Domestic market Chile – Volume & Value
Domestic market Chile – Volume & Value Thousand Liters Million Ch$ CAGR -1.0% -4.5% 26 26/ 26
Slide 27: Domestic market Chile – Premium Wine growth
Domestic market Chile – Premium Wine growth Thousand Liters % Premium/Total % Premium/Total Year Volume 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% 2011 5.2% 20.2% 2012 6.2% 22.9% 2013 6.3% 24.3% 27 27/ 27
Slide 28: Domestic Market Share
Domestic Market Share (by volume) 2005 2006 2007 2008 2009 2010 2011 2012 2013 Concha y Toro 27.1 28.6 30.0 29.7 31.5 30.7 30.4 29.6 28.5 Santa Rita 24.4 25.5 27.9 28.7 28.9 29.4 29.1 28.0 29.5 San Pedro - Tarapacá 21.7 21.9 21.8 23.0 22.5 24.4 24.6 26.7 27.3 Santa Carolina 3.2 3.1 2.3 2.0 1.8 1.8 1
Slide 29: Total Argentinean exports by category
Total Argentinean exports by category Jan - Dec 2010 % Change 2010/2009 Liters US$ Av. Price Liters US$ Av. Price ('000) ('000) US$/Ltr Bottled 230,659 $ 699,088 $ 3.03 3.9% 17.0% 12.6% Bulk 44,580 $ 37,335 $ 0.84 -35.5% 2.9% 59.4% Concentrated Must 69,137 $ 128,087 $ 1.85 -14.7% -5.6% 10.6% Total 3
Slide 30: Total Argentinean exports by category
Total Argentinean exports by category Jan - Dec 2012 % Change 2012/2011 Liters US$ Av. Price Liters US$ Av. Price ('000) ('000) US$/Ltr Bottled 206,779 $ 783,809 $ 3.79 -4.3% 2.8% 7.4% Bulk 157,297 $ 134,060 $ 0.85 54.6% 58.0% 2.2% Concentrated Must 108,753 $ 238,255 $ 2.19 -1.4% 13.8% 15.4% Total 4
Slide 31: Trivento Export Sales: Argentina – Volume & Value
Trivento Export Sales : Argentina – Volume &Value Thousand Liters Thousand US$ 31 31/ 31
Slide 32: Trivento Export Sales - Argentina
Trivento Export Sales - Argentina (Average Price US$/Case) 32 32/ 32
Slide 33: Trivento Domestic Sales: Argentina – Volume & Value
Trivento Domestic Sales : Argentina – Volume &Value Thousand Liters Thousand AR$ 3.3% 33 33/ 33
Slide 34: Trivento Domestic Sales - Argentina
Trivento Domestic Sales - Argentina (Average Price AR$/Case) 34 34/ 34
Slide 35: Exchange Rate main producers
Exchange Rate main producers From 12/31/2009 to 31/03/2013 Against USD 35 35/ 35
Slide 36: Sales: Exchange Rate Sensitivity
Sales: Exchange Rate Sensitivity Currency Mix 2013 2012 CLP 20.5% 21.2% USD 35.7% 37.4% GBP 17.4% 16.9% EUR 9.9% 9.7% CAD 2.8% 3.2% ARG 1.3% 1.7% SEK 2.7% 2.6% NOK 0.9% 0.9% BRL 6.0% 5.0% MXN 2.8% 1.3% 36 36/ 36
Slide 37: Financial Debt
Financial Debt Financial Debt* as of: Dec-13 Dec-12 Ch$ MM Av. Interest rate Ch$ MM Av. Interest rate USD 134,679 3.10% 148,644 2.96% EUR 2,049 1.32% GBP 2,859 1.49% 2,715 2.36% CLP 20,853 5.98% UF 80,898 3.74% 81,958 3.74% ARS 6,884 16.39% 7,331 14.58% BRL 7,907 11.63% 3,643 9.80% MXN 2,725 5.69% S
Slide 38: Sustained Investment over time
Sustained Investment over time • US$ 679.4 million between 2005 – 2013 - Vineyard expansion Chile - Increasing cellar and vinification capacity - Improvements in bottling capacity and efficiency - 2011: Record year of investment for Viña Concha y Toro (**) Inorganic growth: Fetzer (216.0) + Kross (2
Slide 39: Concha y Toro vineyard: Geographical Diversification
Concha y Toro vineyard: Geographical Diversification CHILE Vineyards Hectares to Total (Hectares) Planted 2013 be planted Hectares Valley - Chile Limarí 1,061 192 1,253 Casablanca 416 10 426 Aconcagua 100 - 100 Leyda 130 - 130 Maipo 867 23 890 Cachapoal 1,415 173 1,588 Colchagua 2,067 143 2,210 Curi
Slide 40: Capacity Increase – Support Growth
Capacity Increase – Support Growth • Planted area growth of 141% in the last 10 years (CAGR = 9.2%) • 144% increase in Wine Storage & Ageing Capacity in the last 10 years (CAGR = 9.3%) 40 40/ 40
Slide 41: Concha y Toro portfolio
Concha y Toro portfolio Category Bi Varietal & Varietal Premium Super premium Ultra Premium Icon RRP USA US$4.99 US$6.99 US$7.99 US$9.99 US$13 US$16 US$20 US$30 US$45 US$95 US$120 US$135 RRP UK £4.99 £5.99 £6.99 £7.99 £9.99 £11.99 £12.99 £15.99 £18.99 £45 £65 £65 % Sales by 56% 39% 5% Volume % Sales
Slide 42: Shareholder structure (December 2013)
Shareholder structure (December 2013) 42 42/ 42
Slide 43: 4Q & 12M 2013 Results Presentation
4Q & 12M 2013 Results Presentation Apr 7, 2014 43 43/ 43