Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — Investor Presentation (September 2023)
40 slides from Vina Concha Y Toro's investor presentation, September 2023
Slide 1: Investor Presentation September 2023
Investor Presentation September 2023
Slide 2: Agenda
AGENDA Chapter 01 The Company at a Glance Chapter 02 Overview and 1H23 Results Chapter 03 2H23 Outlook and Highlights
Slide 3: Chapter 01 – The Company at a Glance
INVESTOR PRESENTATION - VIÑA CONCHA Y TORO CHAPTER 01 – THE COMPANY AT A GLANCE Chapter 01 a Glance The Company at 3
Slide 4: The Company at a Glance
CHAPTER 01 – THE COMPANY AT A GLANCE 4 THE COMPANY AT A GLANCE TOP 5 PRODUCTIVE MODEL STRONG PORTFOLIO PREMIU M FOCUS VIÑA CONCHA Y TORO LARGEST WINE PLANTED VINEYARDS OF MULTI ORIGIN BRANDS > 50% OF WINE SALES COMPANIES GLOBALLY Sales US$1 billion More than 12,000 hectares Chile in the premium + se
Slide 5: The Company at a Glance: strategy and position
CHAPTER 01 – THE COMPANY AT A GLANCE 5 THE COMPANY AT A GLANCE % $ SALES PRIORITY MARKETS FINANCIAL POSITION SUSTAINABILITY VIÑA CONCHA Y TORO AND MARKETING INTEGRATED STRONG FINANCIAL STRONG COMMITMENT STRATEGY POSITION with focus on priority brands distribution in priority support investment for w
Slide 6: The Company at a Glance: recognition and brands
CHAPTER 01 – THE COMPANY AT A GLANCE 6 THE COMPANY AT A GLANCE B CORP HIGH SCORES STRONG BRANDS CII VIÑA CONCHA Y TORO SINCE 2021 PREMIUM AND SUPERIOR STRONG RECOGNITION INNOVATING TO LEVEL BRANDS TRANSCEND and it has been included in In 2022, we obtained 160 of our brands globally Unique in Latin A
Slide 7: Brand Matrix
CHAPTER 01 – THE COMPANY AT A GLANCE 7 BRAND MATRIX This year the brand matrix was updated, where FOCUS ON PREMIUMIZATION the “Luxury Brands” category was created. 25% 25% of sales of sales Luxury Brands(2) P R I N C I PA L Casillero del Diablo INVEST Casillero Devils Collection MCC Trivento Golden
Slide 8: Market Matrix
CHAPTER 01 – THE COMPANY AT A GLANCE 8 MARKET MATRIX FOCUS ON PRIORITY MARKETS A MARKETS B MARKETS C MARKETS PRESENCE P R I O R I T Y N E X T W A V E O T H E R S & PRIORITY > COMMERCIAL AND DISTRIBUTION OFFICES MARKET MANAGER 11 MARKETS 09 MARKETS + 107 MARKETS > VIÑA CONCHA Y TORO MARKETS INVESTOR
Slide 9: Growing contribution of Principal + Invest brands to sales
CHAPTER 01 – THE COMPANY AT A GLANCE 9 GROWING CONTRIBUTION OF PRINCIPAL + INVEST BRANDS TO EBIT PREMIUMIZATION % PRINCIPAL + INVEST IN SALES 870.582 836.713 769.067 659.980 613.516 614.128 48,7% 49,3% 45,9% 40,7% 36,0% 37,8% VIÑA CONCHA Y TORO INVESTOR PRESENTATION - 2017 2018 2019 2020 2021 2022 O
Slide 10: % Principal + Invest in EBIT
CHAPTER 01 – THE COMPANY AT A GLANCE 10 THE COMPANY AT A GLANCE % PRINCIPAL + INVEST IN EBIT 132.912 120.311 104.873 66,5% 77.077 60,9% 61.912 60.007 77,4% VIÑA CONCHA Y TORO 54,8% 54,1% 56,9% INVESTOR PRESENTATION - 2017 2018 2019 2020 2021 2022 Others P+I
Slide 11: Chapter 02 – Overview and 1H23 Results
INVESTOR PRESENTATION - VIÑA CONCHA Y TORO CHAPTER 02 – OVERVIEW AND 1H23 RESULTS Chapter 02 1H23 Result Overview and 11
Slide 12: A challenging scenario that is already beginning to improve
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 12 A challenging scenario that is already beginning to improve The complex world situation marked by higher interest rates, inflationary VIÑA CONCHA Y TORO pressures, an overstock of inventories due to logistical disruptions, economic slowdown, increases in the
Slide 13: 1H23 Overview: exports from Chile and Argentina
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 13 1H23 OVERVIEW The global figures for exports from Chile and Argentina are a clear indicator of the situation our Industry is going through. VIÑA CONCHA Y TORO (24%) (27%) CHILE AR G E N T I N A INVESTOR PRESENTATION -
Slide 14: Drop in consumption in most markets
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 14 1H23 DROP IN CONSUMPTION OVERVIEW IN MOST MARKETS (latest information available) VAR (%) VOLUME UK (2.3%) CHILE (5.9%) US (5.6%) BRAZIL 14.3% CHINESE IMPORTS (32.2%) VIÑA CONCHA Y TORO MEXICO 2.9% SOUTH KOREA (56.0%) CANADA (8.0%) INVESTOR PRESENTATION - PER
Slide 15: High interest rates
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 15 1H23 OVERVIEW 1-YEAR AVERAGE 2009 AVERAGE 2023 BASE RATES TO MAY 2021 TO JUNE, 30 H I G H I N T E R E S T R AT E S UK 0.5% 4.8% High interest rates and their impact on seeking to sharply reduce inventories: COLOMBIA 4.5% 12.4% VIÑA CONCHA Y TORO • Get rid of
Slide 16: Mix change, new products, inventories
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 16 1H23 OVERVIEW M I X C H AN G E NEW PRODUCTS INVENTORIES Consumers buying lower Launch of new products with Excess of low-priced red wine in value products. alcohol by other categories. producing countries. In the UK, the segment under 5 pounds grows Ready to
Slide 17: 1H23 Operating Result
INVESTOR PRESENTATION - VIÑA CONCHA Y TORO CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 1H23 Operating Result 17
Slide 18: Sales Revenue
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 18 1H23 SALES REVENUE VALUE VO LUME VAR VAR 400,236 (8.8%) 16,068 (9.4%) VALUE VOL 364,820 14,559 VIÑA CONCHA Y TORO 1H22 1H23 1H22 1H23 (million of Ch$) (thousand of 9LC) INVESTOR PRESENTATION - (6.5%) (13.4%) 0.7% PREMIUM AND UP VARIETALS AND LOW NEW BUSINESS
Slide 19: Market Performance
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 19 MARKET 1H23 VAR (%) VALUE PERFORMANCE CANADA (31.6%) EUROPE (19.5%) 1H23 VAR (%) VALUE LATAM (55.0%) UK 1.3% CONO SUR (39.2%) CHILE 1.0% US (17.1%) CONCLUSIONS BRAZIL (6.0%) STRENGTH OF HAVING OUR OWN DISTRIBUTION CHAIN VIÑA CONCHA Y TORO MEXICO 6.3% • Good
Slide 20: Brand Performance
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 20 BRAND PERFORMANCE P E R F O R M AN C E B Y C AT E G O R I E S 1H23 VAR (%) VALUE VAR (%) VALUE DON MELCHOR 12.9% (7.8%) (3.5%) (10.3%) CASILLERO DEL DIABLO (7.0%) PRINCIPAL INVEST PROTECT DIABLO 23.9% CONCLUSIONS FRONTERA (15.7%) BRAND STRENGTH RESERVADO (9.
Slide 21: 1H23 EBIT
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 21 1H23 EBIT (million of Ch$) 1H23 1H22 VAR (%) % / SALES % / SALES % / SALES CONSOLIDATED SALES 364,820 400,236 (8.8%) GROSS PROFIT 132,818 36.4% 157,011 39.2% (15.4%) (280 bp) SG&A (112,705) (30.9%) (106,869) (26.7%) (5.5%) (420 bp) VIÑA CONCHA Y TORO OTHER I
Slide 22: Non-Operating Result
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 22 A CHALLENGING AND COMPLEX SEMESTER NON-OPERATING RESULT (million of Ch$) 1H23 1H22 VA R ( C h $ ) VA R ( %) NET FINANCIAL EXPENSE (*) (8,161) (4,467) (3,694) 82.7% EXCHANGE DIFFERENCES 828 1,408 (580) (41.2%) NON-OPERATING RESULT (**) (7,333) (3,059) (4,274)
Slide 23: Net Profit and Net Margin
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 23 NET PROFIT (million of Ch$) AND NET MARGIN (%) 11.8% 10.1% 10.2% 98,810 10.0% 87,213 8.1% 8.0% 8.0% 77,994 40,878 52,500 VIÑA CONCHA Y TORO 49,575 49,111 2.6% 9,492 INVESTOR PRESENTATION - 2017 2018 2019 2020 2021 2022 1H22 1H23 Net profit Net margin
Slide 24: CAPEX: Solid Investments Made
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 24 CAPEX SOLID INVESTMENTS MADE Una adecuada inversión en CAPEX nos permitirá seguir siendo líderes en el largo plazo. 80.000 75,548 2020 2021 2022 2022 2023 70.000 FY (REAL) 1H (REAL) 1H (REAL) 60.000 52,987 CAPEX 32,463 52,987 75,548 36,335 18,125 50.000 (50.
Slide 25: Net Financial Debt
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 25 NET FINANCIAL DEBT (million of Ch$) +59,297 375,335 321,915 316,038 266,898 250,413 240,573 221,101 201,374 VIÑA CONCHA Y TORO INVESTOR PRESENTATION - 2017 2018 2019 2020 2021 2022 1H22 1H23 Net Financial Debt: Gross Financial Debt including the effect of De
Slide 26: Net Financial Debt / EBITDA
CHAPTER 02 – OVERVIEW AND 1H23 RESULTS 26 NET FINANCIAL DEBT / EBITDA COMPANY OBJECTIVE NET FINANCIAL DEBT * / EBITDA 3.6 2.9 2.6 2.6 2.4 2,5 2.0 VIÑA CONCHA Y TORO 1.4 1.5 INVESTOR PRESENTATION - 2017 2018 2019 2020 2021 2022 1H22 1H23 Deuda financiera neta NET FINANCIAL DEBT/ EBITDA / EBITDA Objet
Slide 27: Chapter 03 – 2H23 Outlook and Highlights
INVESTOR PRESENTATION - VIÑA CONCHA Y TORO CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS Chapter 03 2H23 Outlook and Highlights 27
Slide 28: We expect an improvement in 2H23
INVESTOR PRESENTATION - VIÑA CONCHA Y TORO CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS We expect an improvement in 2H23 28
Slide 29: Reasons to believe in a solid growth in sales and results
CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS 29 REASONS TO BELIEVE IN A SOLID GROWTH IN SALES AND RESULTS O P E R AT I O N A L E F F I C I E N C Y ENCOURAGE THE COMERCIAL MODEL SOUTHERN HEMISPHERE HARVEST VIÑA CONCHA Y TORO PRODUCTIVE MODEL INVESTOR PRESENTATION - $ SG&A REDUCTION AND DILUTION E X C H A
Slide 30: Reasons to Believe: Operational Efficiency
CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS 3030 REASONS TO BELIEVE OPERATIONAL EFFICIENCY OF THE COMPANY This process began in September 2022, and will have an approximate impact of $5,000 thousand for the second semester. SEPTEMBER 2022 CH $5.000 m CH $20.000 m INICIO IMPACT AT 2H23 IMPACT TO THE TRI
Slide 31: Reasons to Believe: Encourage the Commercial Model
CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS 31 REASONS TO BELIEVE ENCOURAGE THE COMERCIAL MODEL Strengthen our commercial model to insert our Company in the new world scenario, always with an important emphasis on the PREMIUMIZATION AND NEW RELEASES VIÑA CONCHA Y TORO INVESTOR PRESENTATION - We are cur
Slide 32: Reasons to Believe: Southern Hemisphere Harvest
CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS 32 REASONS TO BELIEVE SOUTHERN HEMISPHERE HARVEST (24%) (24.5%) (14.4%) (11.4%) AUSTRALIA ARGENTINA SOUTH AFRICA CHILE THE LOWEST SINCE 2000 VIÑA CONCHA Y TORO (1,0%) VIÑA CONCHA Y TORO´S INVESTOR PRESENTATION - OWN PRODUCTION
Slide 33: Reasons to Believe: Productive Model
CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS 33 REASONS TO BELIEVE PRODUCTIVE MODEL Our production model, with a high level of own production, will give us a very significant competitive advantage. 178% PRICE GROW TH IN PREMIUM An example is our operation in Argentina, a market where MALBEC GRAPE the pr
Slide 34: Reasons to Believe: SG&A Reduction and Dilution
CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS 34 REASONS TO BELIEVE SG&A REDUCTION AND DILUTION A level of Administrative and Sales Expenses is expected for the 80% second semester of around 26%, much lower than the 30.9% of OF THE SG&A ARE FIXED the first semester. EXPENSES AND MARKETING EXPENSES VIÑA C
Slide 35: Reasons to Believe: Exchange Rate
CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS 35 REASONS TO BELIEVE EXCHANGE RATE MAIN AVERAGE EXCHANGE RATE SPOT EXCHANGE RATE VAR CURRENCIES 1H23 2ND JULY FORTNIGHT (%) 28.6% GBP: $993.6 $1,060.0 6.7% 5.9% EUR: $868.8 $913.0 5.1% 5.8% MXN: $44.2 $48.7 10.2% 7.6% BRL: $160.0 $171.6 7.3% VIÑA CONCHA Y TO
Slide 36: Highlights: ESG and Innovation
INVESTOR PRESENTATION - VIÑA CONCHA Y TORO CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS Highlights ESG and Innovation 36
Slide 37: ESG Progress
CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS 37 ESG PROGRESS ENERGY BIODIVERSITY C L I M AT E C H AN G E FOSSIL INDEPENDENCE AGRICULTURAL ECOSYSTEM In 2022 we reached the goal of reducing MANAGEMENT We are making progress towards carbon emissions, which was set for establishing a clean energy matrix fre
Slide 38: Innovation Progress
CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS 38 INNOVATION PROGRESS WATER SAVINGS PLANTS 2.0 VIÑA CONCHA Y TORO Savings of +18% with different efficient irrigation techniques. Today it is Virus-free vines and wood fungi without affecting their identity. INVESTOR PRESENTATION - in a pilot plan with 1.200
Slide 39: Outlook 2H23
CHAPTER 03 – 2H23 OUTLOOK AND HIGHLIGHTS 39 OUTLOOK 2H23 • The situation that the industry is facing will bring adjustments throughout the production and comercial chain. • Like any extreme situation, it will also bring great opportunities. • At Viña Concha y Toro we are very optimistic about our fu
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