Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — FY2023 Earnings Presentation
43 slides from Vina Concha Y Toro's earnings presentation, Mar 19, 2024
Slide 1: Results Presentation 2023
Slide 2: Agenda
2 AGENDA Chapter 01 2023 Overview and Sales analysis EDUARDO GUILISASTI, CEO Chapter 02 4Q23 and 2023 Results OSVALDO SOLAR, CFO Chapter 03 Perspectives EDUARDO GUILISASTI, CEO
Slide 3: Chapter 01: 2023 Overview and Sales Analysis
2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS Chapter 01 Sales analysis EDUARDO GUILISASTI, CEO 2023 Overview and 3
Slide 4: The wine industry has changed
4 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS THE WINE INDUSTRY HAS CHANGED The same goes for all other alcohol categories. 01 Preference for lower alcohol products and lower-calorie products. 02 Climate change: Higher temperatures favor white strains. 03 Changes in consumption habits due to the
Slide 5: Structural changes compounded by interest rates and inflation
5 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS These structural changes were temporarily compounded by the effects of high-interest rates and inflation and their impacts on inventories and 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO consumer purchasing power.
Slide 6: Chilean wine exports
6 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS CHILEAN WINE EXPORTS in 2023 compared to 2022 01 02 03 21% decrease in bottled wine. A The top 11 markets recorded double Of the top 25 markets, only three show setback of 15 years. digit declines, except for Brazil, which single digit growth: Germany
Slide 7: Argentine wine exports
7 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS ARGENTINE WINE EXPORTS in 2023 compared to 2022 01 02 03 Shipments of bottled wine fell 22%, The 10 markets that makeup 80% Of the leading 23 markets, only falling back to 2007-2008 levels. of the volume fall by double digits, Switzerland grows by 12%
Slide 8: Wine trends
8 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS WINE TRENDS To t a l c a t e g o r y p e r f o r m a n c e This same reality occurs in other markets with greater or lesser intensity. VOLUME GROWTH 2023 VS 2022 UK -2.8% USA -5.0% CHILE -3.7% BRAZIL 15.1% 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO
Slide 9: Conclusion at industry level
9 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS CONCLUSION AT INDUSTRY LEVEL We f a c e t h e g r e a t e s t c r i s i s i n t h e g l o b a l wi n e i n d u s t r y s i n c e r e c o r d s b e g a n . 01 02 Decrease in traditional wine consumption. Significant vineyard clearances in major produci
Slide 10: Measures implemented September 2022 to January 2024
10 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS VIÑA CONCHA Y TORO M E A S U R E S I M P L E M E N T E D B E T W E E N S E P T E M B E R 2 0 2 2 T O J A N U A RY 2 0 2 4 INNOVATION AS A GROWTH CREATION OF CENTERS OF LEVER EXCELLENCE 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO RESTRUCTURING OF DEE
Slide 11: 2023 Sales analysis
2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS 2023 Sales analysis 11
Slide 12: Sales evolution per quarter
12 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS SALES EVOLUTION P E R Q U A RT E R 4Q23 (million of Ch$) FIRST QUARTER GROW TH vs 2022 259,381 246,690 222,180 223,656 5.1% vs 4Q22 213,012 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO VALUE 201,649 178,055 163,172 1Q 2Q 3Q 4Q Año 2022 Año 2023 5.6%
Slide 13: Volume evolution per quarter
13 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS VOLUME EVOLUTION P E R Q U A RT E R (1.1%) (thousand of C9L) vs 4Q22 VOL 9,196 8,795 9,099 8,697 8,370 3.4% 7,993 vs 4Q22 W INE 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO VOL 7,273 6,566 1Q 2Q 3Q 4Q 7.9% Año 2022 Año 2023 PREMIUM AND UP VOL
Slide 14: Market performance
14 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS MARKET PERFORMANCE VAR % VALUE 1Q23 2Q23 3Q23 4Q23 2023 UK 2.0% 0.7% 14.4% 34.0% 13.4% CHILE 1.7% 0.3% (2.7%) (2.4%) (1.0%) USA (15.6%) (18.5%) << (5.5%) (19.4%) (15.4%) BRAZIL 9.4% (12.5%) (0.7%) 0.8% (3.1%) MEXICO 4.3% 7.9% (3.1%) 4.6% 3.7% 2023 RE
Slide 15: Brand performance
15 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS BRAND PERFORMANCE VAR % VALUE 1Q23 2Q23 3Q23 4Q23 2023 CASILLERO DEL DIABLO (11.1%) (5.6%) (0.1%) 16.3% 0.5% DIABLO 12.4% 32.1% 14.0% 41.4% 25.8% FRONTERA (18.3%) (14.0%) (7.6%) (0.6%) (8.8%) << RESERVADO (2.3%) (12.4%) 8.5% (3.5%) (3.7%) ISLA NEGRA
Slide 16: 2023 premium mix
16 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS 2023 PREMIUM MIX + 1 9 0 B P S I N M I X P R I N C I PA L + I N V E S T VAR 25.8% +190 DIABLO BPS VALUE 50.0% 51.9% 15.0% TRIVENTO RESERVE 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO VALUE 0.5% CASILLERO DEL DIABLO VALUE 2022 2023 OTHERS PRINCIPAL +
Slide 17: Quarterly premium mix
17 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS Q U A RT E R LY P R E M I U M M I X + 2 3 0 B P S I N P R I N C I PA L + I N V E S T M I X PRINCIPAL + INVEST WINE MIX (million of Ch$) $434,866 $434,540 100% 55.3% 52.2% 53.1% 55.2% 53.9% 53,9% 56.2% 55.6% 54.5% 58.2% 56.2% 56,2% 2023 RESULTS PRESEN
Slide 18: EBIT evolution per quarter
18 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS EBIT EVOLUTION P E R Q U A RT E R (million of Ch$) 34,780 W ITHOUT THE ONE TIME EXTRAORDINARY EXPENSE (DUE TO 29,757 JUDICIAL CONTINGENCY IN THE US) 25,955 24,579 24,583 IN 4Q23, EBIT W OULD HAVE 27,860 REACHED CH$ 34,780 MILLION, A 16.9% 2023 RESULT
Slide 19: Margin EBIT evolution per quarter
19 CHAPT ER 01 – 2023 OVERVIEW AND SALES ANALYSIS MARGIN EBIT EVOLUTION P E R Q U A RT E R (million of Ch$) 13.8% 13.4% 11.6% 11.1% 12.1% THUS, THE EBIT MARGIN (OPERATING MARGIN) IN 4Q23 W OULD HAVE 10.7% REACHED 13.4% 8.7% 130 BPS 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO 6.0% vs 4Q22 VALUE 4.1%
Slide 20: Chapter 02: 4Q23 and 2023 Results
2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO CHAPT ER 02 – 4Q23 AND 2023 RESULTS Chapter 02 Results OSVALDO SOLAR, CFO 4Q23 and 2023
Slide 21: 4Q23 Results
2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO CHAPT ER 02 – 4Q23 AND 2023 RESULTS 4Q23 Results 21
Slide 22: Currency diversification 4Q23
22 CHAPT ER 02 – 4Q23 AND 2023 RESULTS CURRENCY DIVERSIFICATION 4Q23 1.4% CNY 1.0% 8.2% ARG MXN Diversification of currencies attenuates the 15.7% CLP variations of the dollar as a single currency 1.3% 4.4% BRL NOK 1.8% SEK EXCHANGE RATE VARIATION 2.3% CAD 4Q23 vs 4Q22 2023 RESULTS PRESENTATION VIÑA
Slide 23: Non-operational result 4Q23
23 CHAPT ER 02 – 4Q23 AND 2023 RESULTS N O N - O P E R AT I O N A L R E S U LT 4Q23 (million of CH$) 4Q23 4Q22 VAR (CH$) VAR (%) NET FINANCIAL EXPENSE (*) (4,656) (3,775) 880 23.3% << EXCHANGE DIFFERENCES (2,610) 167 2,777 (1659.8%) 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO NON-OPERATING RESULT (
Slide 24: 2023 Results
2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO CHAPT ER 02 – 4Q23 AND 2023 RESULTS 2023 Results 24
Slide 25: A challenging and complex year: non-operational result
25 CHAPT ER 02 – 4Q23 AND 2023 RESULTS A CHALLENGING AND COMPLEX YEAR N O N - O P E R AT I O N A L R E S U LT (million of CH$) 2023 2022 VAR (CH$) VAR (%) NET FINANCIAL EXPENSE (*) (17,994) (11,745) 6,249 53.2% << EXCHANGE DIFFERENCES (1,723) 1,660 3,383 203.8% 2023 RESULTS PRESENTATION VIÑA CONCHA
Slide 26: Associated companies: Almaviva and Industria Corchera
26 CHAPT ER 02 – 4Q23 AND 2023 RESULTS A S S O C I AT E D C O M PA N I E S A L M AV I VA A N D I N D U S T R I A C O R C H E R A ALMAVIVA (0.3%) INDUSTRIA CORCHERA VALUE 6,237 6,221 3,097 4,503 3,139 (12.8%) 2,804 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO VALUE 2,142 929 810 626 344 231 2018 2019
Slide 27: Net profit and net margin
27 CHAPT ER 02 – 4Q23 AND 2023 RESULTS NET PROFIT (million of CH$) AND NET MARGIN (%) 11.8% 98,810 10.1% 10.0% 87,213 8.1% 8.0% 8.0% 77,994 52,500 5.2% 49,575 49,111 43,126 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO 2017 2018 2019 2020 2021 2022 2023 Net profit Utilidad neta Net margin Margen neto
Slide 28: Capex
28 CHAPT ER 02 – 4Q23 AND 2023 RESULTS CAPEX C h $ 3 4 9 b i l l i o n i n v e s t e d b e t we e n 2 0 1 7 a n d 2 0 2 3 , e q u i v a l e n t t o U S $ 4 6 1 m i l l i o n . 75,669 9% (23%) 12% 59,839 55,649 52,986 20% 22% 46,000 17% 28% 43,303 9% 17% 23% 14% 18% 2023 RESULTS PRESENTATION VIÑA CON
Slide 29: Return on invested capital
29 CHAPT ER 02 – 4Q23 AND 2023 RESULTS R E T U R N O N I N V E S T E D C A P I TA L ROIC 11.3% 10.3% 9.1% 7.5% 7.4% 7.2% 5.3% 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO 4.8% 2017 2018 2019 2020 2021 2022 2023 2023* 2023*: Without the judicial contingency in the USA. ROIC: (Operating Margin – Taxes
Slide 30: Net financial debt
30 CHAPT ER 02 – 4Q23 AND 2023 RESULTS NET FINANCIAL DEBT (million of CH$) +67,340 389,255 321,915 266,898 250,413 240,573 221,101 201,374 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO 2017 2018 2019 2020 2021 2022 2023 Net Financial Debt: Gross Financial Debt including the effect of Derivatives rela
Slide 31: Low level of indebtedness
31 CHAPT ER 02 – 4Q23 AND 2023 RESULTS LOW LEVEL OF INDEBTEDNESS R E L AT I V E T O T H E S I Z E O F E Q U I T Y FINANCIAL STRENGTH NET DEBT RATIO 1.2 0.60 0.55 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO 0.52 0.53 0.49 0.43 0.36 2017 2018 2019 2020 2021 2022 2023 Ratio endeudamiento Net debt rati
Slide 32: Financial cost coverage
32 CHAPT ER 02 – 4Q23 AND 2023 RESULTS FINANCIAL COST COVERAGE AS OF DECEMBER 2023 FINANCIAL STRENGTH FINANCIAL COST COVERAGE RATIO 12.3 9.8 8.8 8.5 8.2 7.0 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO 4.6 2.5 X 2017 2018 2019 2020 2021 2022 2023 Razón cobertura Financial decoverage cost costos fina
Slide 33: Net financial debt over EBITDA
33 CHAPT ER 02 – 4Q23 AND 2023 RESULTS N E T F I N A N C I A L D E B T (*) OVER EBITDA NET FINANCIAL DEBT * / EBITDA 4.1 2.9 2.6 2.6 2.4 2.5 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO 1.5 1.4 X 2017 2018 2019 2020 2021 2022 2023 Deuda financieradebt Net financial neta/ /EBITDA EBITDA Objetivo Comp
Slide 34: Chapter 03: Perspectives
2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO CHAPT ER 03 – PERSPECTIVES Chapter 03 Perspectives EDUARDO GUILISASTI, CEO
Slide 35: Perspectives 2024-2025
35 CHAPT ER 03 – PERSPECTIVES PERSPECTIVeS 2024 - 2025 2024 PROJECTION PRINCIPAL + INVEST MIX EBIT GOAL Double digit 60% Ch$ 140,000 million 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO GROWTH IN VALUE WINE M IX BY 2025 TO 2025 WITH AN EBIT M ARGIN BETWEEN 15% TO 16%
Slide 36: Reasons to believe in a solid recovery
36 CHAPT ER 03 – PERSPECTIVES REASONS TO BELIEVE IN A SOLID RECOVERY IN SALES AND RESULTS PRODUCTIVE MAXIMIZE DISTRIBUTION STRENGTH COMMERCIAL MODEL STRENGTH 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO OPERATIONAL BRANDS ESG EFFICIENCY STRENGTH ADVANCES
Slide 37: Growth fundamentals: productive strength
CHAPT ER 03 – PERSPECTIVES GROWTH FUNDAMENTALS PRODUCTIVE STRENGTH 10,629 CHILE +12,000 1,460 T O T AL PLANT ED 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO HECT ARES ARGENTINA 384 USA
Slide 38: Growth fundamentals: operational efficiency
38 CHAPT ER 03 – PERSPECTIVES GROWTH FUNDAMENTALS OPERATIONAL EFFICIENCY OF THE COMPANY This process began in September 2022, and will have an approximate impact of Ch$ $20,000 million for 2025. SEPTEMBER 2022 Ch$ 5,000 million Ch$ 20,000 million START IMPACT AT 2H23 IMPACT ON THE TRIENNIUM 2023-202
Slide 39: Maximize our commercial model
39 CHAPT ER 03 – PERSPECTIVES GROWTH FUNDAMENTALS MAXIMIZE OUR COMMERCIAL MODEL Strengthen our commercial model to insert our company into the new world scenario, always with an important emphasis on PREMIUNIZATION AND NEW RELEASES 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO We are currently in the
Slide 40: Strength of our brands
40 CHAPT ER 03 – PERSPECTIVES GROWTH FUNDAMENTALS STRENGTH OF OUR BRANDS N.1 IN ARGENTINA Bodega Trivento, symbol of high- end wines from Argentina, was recognized for the third consecutive year as the “N.1 Argentine wine brand in the world”, in value by the global consulting firm IWSR Drinks Market
Slide 41: Strength of our own distribution
CHAPT ER 03 – PERSPECTIVES GROWTH FUNDAMENTALS STRENGTH OF OUR OWN DISTRIBUTION 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO MARKET INTEGRATION % SALES FROM OWN OFFICES 81.1% O F T O T AL SALES
Slide 42: ESG advances
42 CHAPT ER 03 – PERSPECTIVES GROWTH FUNDAMENTALS ESG ADVANCES 100% electricity supply is renewable at holding level. 5,500 native trees were planted this 2023. 2023 RESULTS PRESENTATION VIÑA CONCHA Y TORO Viña Concha y Toro anticipated its goal of Zero Net Emissions by 10 years to 2040.
Slide 43: Viña Concha y Toro
VINA CONCHA Y TORO 1AC ANNIVERSARY