Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — 9M 2024 Earnings Presentation
40 slides from Vina Concha Y Toro's earnings presentation, Nov 7, 2024
Slide 1: Investor Presentation – Family of New World Wineries
-- VESTOR PRESENTATION — — FAMILY OF NEW WORLD WINERIES —
Slide 2: Index
INDEX 01. 9M24 Highlights OSVALDO SOLAR, CFO 02. 9M24 Sales Analysis DANIELA LAMA, HEAD OF IR 03. 3Q24 and 9M24 Results OSVALDO SOLAR, CFO 04. 2024 Perspective OSVALDO SOLAR, CFO
Slide 3: 9M24 Highlights
3 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 01: 9M24 HIGHLIGHTS OSVALDO SOL AR, CFO 9M24 Highlights 01
Slide 4: Chapter 01: 9M24 Highlights
CHAPTER 01: 9M24 HIGHLIGHTS Viña Concha y Toro added a new quarter of growth in sales, consolidating its recovery by completing four consecutive periods of increases, which allows us to ratify our projections of a low double- digit increase in sales in value for this year. 9 M 2 4 RES U LT S P RES E
Slide 5: Highlights 9M24 vs 9M23
Highlights 9M24 vs 9M23 CHAPTER 01: 9M24 HIGHLIGHTS CONSOLIDATED SALES PREMIUMIZATION +16.9% 51.8% P + I to CLP$ 675,718 m OTHERS MIX PORTFOLIO P+I (+70 bps) GROSS PROFIT GROSS MARGIN EBITDA EBITDA MARGIN 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O +24.3% 38.9% +74.1% 15.2% CLP$ 262
Slide 6: 9M24 Sales Analysis
6 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 02: 9M24 SALES ANALISYS DANIEL A L AMA, HEAD OF IR 9M24 Sales Analysis 02
Slide 7: Sales per Value – Only Wine
Sales per Value – Only Wine CHAPTER 02: 9M24 SALES ANALISYS QUARTERLY EVOLUTION (MILLION OF CLP$) 631,030 VAR 533,501 8.7% VS 3Q23 VALUE 224,512 239,190 214,964 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 208,881 191,553 226,537 209,193 197,835 161,935 189,050 VAR 18.3% 146,616 1Q 2
Slide 8: Sales per Volume – Only Wine
Sales per Volume – Only Wine CHAPTER 02: 9M24 SALES ANALISYS QUARTERLY EVOLUTION (THOUSANDS OF 9LC) 21,745 VAR (1.1%) 20,884 VS 3Q23 VOL 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 8,293 8,290 7,688 7,581 7,944 8,016 6,476 7,667 6,504 7,459 VAR 5,758 1Q 2Q 3Q 4Q 9M23 9M24 4.1% VS 9M
Slide 9: Main Markets Performance – Only Wine
Main Markets Performance – Only Wine CHAPTER 02: 9M24 SALES ANALISYS PER QUARTER VAR % VALUE 3Q23 4Q23 1Q24 2Q24 3Q24 UK 14.4% 34.0% 34.6% 17.5% 16.1% THE TOP 5 COUNTRIES REPRESENT 70.1% CHILE (2.3%) 12.2% 5.8% 8.8% 5.7% 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O USA (5.5%) (19.4%)
Slide 10: Main Markets Performance – Only Wine
Main Markets Performance – Only Wine CHAPTER 02: 9M24 SALES ANALISYS 9M24 9M24 VAR % VALUE UK 21.9% THE TOP 5 COUNTRIES REPRESENT 72.1% CHILE 6.7% 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O USA 21.1% OF WINE SALES BRAZIL 27.4% AS OF 9M24 MEXICO 15.9% CONCLUSIONS: • Of the twenty ma
Slide 11: Main Brands Performance – Only Wine
Main Brands Performance – Only Wine CHAPTER 02: 9M24 SALES ANALISYS PER QUARTER VAR % VALUE 3Q23 4Q23 1Q24 2Q24 3Q24 CASILLERO DEL DIABLO (0.1%) 16.3% 32.8% 22.3% 8.2% THE TOP 7 BRANDS FRONTERA (7.6%) (0.6%) 91.6% 20.3% (7.7%) REPRESENT 63.0% TRIVENTO RESERVE 12.9% 21.4% 36.7% 21.1% 16.7% 9 M 2 4 RE
Slide 12: Main Brands Performance – Only Wine
Main Brands Performance – Only Wine CHAPTER 02: 9M24 SALES ANALISYS 9M24 9M24 VAR % VALOR CASILLERO DEL DIABLO 19.8% FRONTERA 25.7% THE TOP 7 BRANDS REPRESENT TRIVENTO RESERVE 24.2% RESERVADO 22.0% 64.2% 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O ISLA NEGRA SEASHORE 22.9% DIABLO 25
Slide 13: 9M24 Premium Mix
9M24 Premium Mix CHAPTER 02: 9M24 SALES ANALISYS +10 BP IN PRINCIPAL + INVEST MIX – ONLY WINE VAR VAR 19.8% 10 CASILLERO DEL DIABLO VALUE BPS VAR 24.2% 55.3% 55.5% 9 M 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 9M23 9M24 25.6% DIABLO PRINCIPAL + INVEST OTHERS
Slide 14: New Business
New Business CHAPTER 02: 9M24 SALES ANALISYS SALES IN VOLUME AND VALUE AT 9M24 VAR (11.8%) VALUE 32,538 28,703 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O VAR (12.6%) VOL 2,045 1,788 9M23 9M24 9M23 9M24 (THOUSANDS OF 9LC) (MILLION OF CLP$) 14
Slide 15: 3Q24 and 9M24 Results
15 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 03: 3Q24 AND 9M24 RESULTS OSVALDO SOL AR, CFO 3Q24 and 9M24 Results 03
Slide 16: EBIT
EBIT CHAPTER 02: 9M24 SALES ANALISYS QUARTERLY EVOLUTION (MILLION OF CLP$) 80,406 VAR 37.8% vs 3Q23 37,409 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 33,241 34,780 29,757 24,579 24,583 25,955 25,654 21,511 18,622 12,154 VAR 6,632 1Q 2Q 3Q 4Q 9M23 9M24 114.9% vs 9M23 2022 2023* 2024
Slide 17: EBIT Margin
EBIT Margin CHAPTER 02: 9M24 SALES ANALISYS QUARTERLY EVOLUTION 13.8% 14.0% VAR 13.4% 10.4% 11.1% 11.6% 11.0% 12.1% 11.9% 230 bps 8.7% vs 3Q23 6.5% 6.0% 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 4.1% VAR 1Q 2Q 3Q 4Q 9M23 9M24 540 bps vs 9M23 2022 2023* 2024 4Q 2023* includes 2.7%
Slide 18: EBITDA Margin
EBITDA Margin CHAPTER 02: 9M24 SALES ANALISYS QUARTERLY EVOLUTION 18.0% VAR 17.4% 16.7% 13.8% 14.3% 15.1% 14.3% 15.2% 15.2% 190 bps 12.4% vs 3Q23 10.2% 9.8% 8.0% 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O VAR 1Q 2Q 3Q 4Q 9M23 9M24 500 bps vs 9M23 2022 2023* 2024 4Q 2023* includes 2
Slide 19: Net Profit
Net Profit CHAPTER 02: 9M24 SALES ANALISYS QUARTERLY EVOLUTION (MILLION OF CLP$) 52,348 VAR 6.8% vs 3Q23 26,214 25,225 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 23,201 21,751 21,10921,965 17,677 17,857 16,722 12,740 6,340 VAR 99.7% 3,152 1Q 2Q 3Q 4Q 9M23 9M24 vs 9M23 2022 2023* 20
Slide 20: Currency Diversification
Currency Diversification CHAPTER 03: 3Q24 AND 9M24 RESULTS 3Q24 1.2% CNY 0.8% ARG 5.0% EXCHANGE RATE VARIATION MXN 18.5% 3Q24 vs 3Q23 6.9% CLP 1.5% BRL NOK 2.1% SEK 2.2% CAD 9.5% USD: 7.6% EUR: 9.9% 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O LIBRA: 12.8% CYT PORTF OLIO INDEX 23.8%
Slide 21: Operational Efficiency
Operational Efficiency CHAPTER 03: 3Q24 AND 9M24 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$ 16,280 m 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O START REAL NET SAVINGS AT 9M
Slide 22: Non-Operating Result
Non-Operating Result CHAPTER 03: 3Q24 AND 9M24 RESULTS 3Q24 (MILLION OF CLP$) 3Q24 3Q23 VAR ($) VAR (%) NET FINANCIAL EXPENSE (*) (4,994) (5,178) (234) (4.5%) EXCHANGE DIFFERENCES 935 58 876 1498.9% NON-OPERATING RESULT (**) (4,009) (5,119) (1,110) (21.7%) 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA
Slide 23: Non-Operating Result
Non-Operating Result ** CHAPTER 03: 3Q24 AND 9M24 RESULTS QUARTERLY EVOLUTION – BREAK IN TREND (MILLION OF CLP$) -13,320 -12,452 -7,265 -4,903 -5,119 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O -4,407 -4,009 -4,269 -3,063 -3,608 -3,419 -1,902 -1,156 1Q 2Q 3Q 4Q 9M23 9M24 2022 2023 2
Slide 24: Positive prospects for the Non-Operating Result
Positive prospects for the CHAPTER 03: 3Q24 AND 9M24 RESULTS NON-OPERATING RESULT * The Central Bank converges to the inflation target only in the first half of 2026. CUMULATIVE Inflación INFLATION Acumulada 2024 v/s 2024 vs 2023 2023 107,0% 105,0% 103.1% 103,0% 103.0% 101,0% 102.1% 99,0% 9 M 2 4 RE
Slide 25: Positive prospects for the Non-Operating Result
Positive prospects for the CHAPTER 03: 3Q24 AND 9M24 RESULTS NON-OPERATING RESULT 01. INTEREST RATE 02. DEBT AMOUNT Reduction in absolute terms of 14,0% CLP$ 23,900 m, without 12,0% considering the exchange rate 10,0% effect. 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 8,0% 5.44% 6,
Slide 26: Associated Companies
26 Associated Companies CHAPTER 03: 3Q24 AND 9M24 RESULTS ALMAVIVA AND INDUSTRIA CORCHERA ALMAVIVA (64.6%) INDUSTRIA CORCHERA VALUE 6,535 3,097 6,237 6,221 4,503 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 3,139 2,804 2,314 929 6.7% 810 VALUE 626 344 233 249 2019 2020 2021 2022 2023
Slide 27: Net Profit and Net Margin
Net Profit (Million of CLP$) and Net Margin (%) CHAPTER 03: 3Q24 AND 9M24 RESULTS 11.8% 98,810 10.1% 10.0% 87,213 8.0% 77,994 7.7% 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 52,500 5.2% 52,348 4.5% 43,126 26,214 2019 2020 2021 2022 2023 9M23 9M24 NET PROFIT NET MARGIN 27
Slide 28: Return on Invested Capital
Return on Invested Capital CHAPTER 03: 3Q24 AND 9M24 RESULTS ROIC (%) 11.3% 10.3% 9.1% 7.8% 7.8% 7.2% 0.5% 0.5% 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 5.3% 5.0% 0.5% 2019 2020 2021 2022 2023 9M24 SEP-24 9M23 SEP-23 9M24 SEP-24 2023* y 2024* +0.5%: WITHOUT THE JUDICIAL CONTINGEN
Slide 29: Net Financial Debt
Net Financial Debt (Million of CLP$) CHAPTER 03: 3Q24 AND 9M24 RESULTS • The exchange rate variation vs September 2023 was CLP$ 7,300 million. (31,857) 403,631 389,255 371,774 321,915 266,898 240,573 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 201,374 2019 2020 2021 2022 2023 9M23 S
Slide 30: Low Level of Indebtedness
Low Level of Indebtedness CHAPTER 03: 3Q24 AND 9M24 RESULTS RELATIVE TO THE SIZE OF EQUITY FINANCIAL STRENGTH 1.2 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 0.64 0.61 0.55 0.56 0.52 0.53 0.36 2019 2020 2021 2022 2023 9M23 SEP-23 JUN-23 9M24 SEP-24 JUN-24 NET DEBT RATIO COVENANTS Ne
Slide 31: Coverage of Financial Expenses
Coverage of Financial Expenses CHAPTER 03: 3Q24 AND 9M24 RESULTS SEPTEMBER 2024 FINANCIAL STRENGTH 12.3 9.8 8.8 8.5 6.1 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O 4.6 4.8 2.5 2019 2020 2021 2022 2023 9M23 SEP-23 9M24 SEP-24 FINANCIAL COST COVERAGE RATIO COVENANTS Financial Costs Co
Slide 32: Net Financial Debt over EBITDA
Net Financial Debt (*) over EBITDA CHAPTER 03: 3Q24 AND 9M24 RESULTS COMPANY OBJECTIVE 4.2 4.1 2.7 2.6 2.4 2.5 9 M 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 9M23 SEP-23 9M24 SEP-24 NET FINANCIAL DEBT / EBITDA COMPANY OBJECTIVE (*) Net Financial Debt: D
Slide 33: Non-Financial Results
33 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 03: 3Q24 AND 9M24 RESULTS RESULTS Non-Financial
Slide 34: Strength of Our Brands and ESG Performance
34 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O CHAPTER 03: 3Q24 AND 9M24 RESULTS BRANDS 01 STRENGTH OF OUR ESG PERFORMANCE 02
Slide 35: Strength of Our Brands
Strength of Our Brands CHAPTER 03: 3Q24 AND 9M24 RESULTS THE BEST IN CHILE Don Melchor 2022, chosen among the Top 100 Wines of the CARMÍN DE PEUMO 2021 Year 2024. It is the best ranked Chilean Cabernet Sauvignon of Carmín de Peumo 2021 the 2022 harvest. becomes the best-ranked Chilean Carmenere of t
Slide 36: Strength of Our Brands
Strength of Our Brands CHAPTER 03: 3Q24 AND 9M24 RESULTS In August, Marques de Casa Concha introduced the new Ultra Premium MCC Gold and Blue line, which 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA Y T O R O performed well in Chile. MARQUES DE CASA CONCHA TACTICAL LAUNCH Exportación Terremoto
Slide 37: ESG Performance
ESG Performance CAP 03: RESULTADOS 1Q24 01. It allows us to maintain the cutting edge in ESG matters, since each 02. Every year the levels of demand increase, incorporating best 03. The Beverage industry is characterized by having high levels of year it incorporates trends and practices and emerging
Slide 38: 2024 Perspective
38 9 M 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 OSVALDO SOL AR, CFO 2024 Perspective 04
Slide 39: Looking toward the future
CHAPTER 04: 2024 PERSPECTIVE Looking toward the future After four quarters of growth in a particularly challenging environment for the industry, we confirm that the path selected by the company has been the correct one and allows us to reiterate our 9 M 2 4 RES U LT S P RES ENT A TI ON V IÑA CO NCHA
Slide 40: Investor Presentation – Family of New World Wineries
-- VESTOR PRESENTATION — — FAMILY OF NEW WORLD WINERIES —