Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — Q3 2020 Earnings Presentation
21 slides from Vina Concha Y Toro's earnings presentation, November 2020
Slide 1: Investor Presentation 3Q20 Results
Investor Presentation 3Q20 Results November 2020
Slide 2: Forward Looking Statements
2 Forward This presentation contains forward-looking statements, that should be considered as good faith estimates. Such statements are Looking subject to risks and uncertainties outside of Viña Concha y Toro’s control that could Statements cause Viña Concha y Toro’s actual results to differ materia
Slide 3: Historical results in 3Q20
3Q20 Results 3 Historical results in 3Q20 Demonstrating the strength of our business model and the consolidation of our 2022 strategy. Investor Presentation November, 2020
Slide 4: Strong top line (+28%) reflect growth across all markets
3Q20 Results 4 1. Strong top line (+28%) reflect growth across all markets Sales (Ch$ million) 3Q20 3Q19 Chg (%) 9M20 9M19 Chg (%) • Export Markets +38% yoy driven by all Export Markets 141,290 102,788 37.5% 369,579 296,524 24.6% regions and contributing 83% to the top line Chile 26,340 24,104 9.3%
Slide 5: Growth was driven by A & B markets of the Market Matrix
3Q20 Results 5 Growth was driven by A & B markets of the Market Matrix A Markets: • Greatest performance at distribution offices of UK, Brazil, Nordics, where we have been Sales by Volume able to execute our strategy and respond promptly to changes in demand. This is reflected % of Sales Value YoY i
Slide 6: Chile Domestic market – positive performance across the Brand Matrix
6 Chile Domestic market – positive performance across the Brand Matrix Wine Volume YoY + 11% Principal +5% Invest + 91% Top performing Invest Brands Protect +13% Watch + 2% +193% +69% +47% +6% Diablo Cono Sur Cono Sur Marques de Casa Concha • Premium share of the portfolio increased 180bp in value
Slide 7: Double-digit growth rates at Principal and Invest brands
3Q20 Results 7 Double-digit growth rates at Principal and Invest brands Sales growth by brand category Sales value breakdown by brand category Increased share 27,3% 21,4% Value Volume of P&I in the Brand Matrix Principal 64.5% 48.4% 17,7% 18,1% Invest 31.3% 29.0% 34,6% Protect 17.1% 6.4% 31,5% Watch
Slide 8: Principal brand Casillero del Diablo – Outstanding growth across markets
3Q20 Results 8 Principal brand Casillero del Diablo – Outstanding growth across markets Sales Value +65% , Volume +48% (665,000 9-liter cases). Growth across all key markets evidencing consumer preference for strong brands. Casillero del Diablo leads consumer awareness. Top performers • UK +83% • Br
Slide 9: Invest Brand Category: +29% volume and +31% value growth
3Q20 Results 9 Invest Brand Category: +29% volume and +31% value growth Volume growth driven by UK +65%, Nordics +62%, Netherlands +178%, Chile +91%. MARQUES CONO SUR CONO SUR DE TRIVENTO BICICLETA ORGANICO DIABLO CASA CONCHA RESERVE 1000 STORIES BONTERRA 2019 TH. 9L-CASES 1,438 112 130 945 160 485
Slide 10: EBITDA +53% in 3Q20
3Q20 Results 10 2. EBITDA +53% in 3Q20 (Ch$ million) 3Q20 3Q19 Chg (%) Sales 210,601 164,000 28.4% - Gross profit driven by higher sales, mix improvement, favorable f/x effect, partly offset by Gross profit 83,253 61,829 34.6% higher cost of wine. Gross margin 39.5% 37.7% 180 bp - SG&A: Increased ma
Slide 11: Positive EBITDA margin evolution
3Q20 Results 11 Positive EBITDA margin evolution In 3Q20, the 340bp expansion in EBITDA margin reflects the outcome of a new strategy. EBITDA Margin* 1Q 2Q 3Q 4Q 12M 2017 11.1% 15.1% 14.7% 16.2% 14.5% 2018 12.9% 14.9% 13.5% 15.9% 14.5% 2019 12.1% 16.8% 17.3% 17.8% 16.4% 2020 14.8% 21.4% 20.7% *Adjus
Slide 12: Non-operating profit
3Q20 Results 12 3. Non-operating profit (Ch$ million) 3Q20 3Q19 Chg (%) Var $ Financial income 192 130 48.4% 62 Financial costs (4,060) (3,315) 22.5% (745) Share of profit (loss) of associates and joint 3,374 3,117 8.2% 257 ventures using equity method Exchange differences (965) 1,541 (2,506) Adjust
Slide 13: Results summary
3Q20 Results 13 4. Results summary 3Q 9M (Ch$ million) 3Q20 3Q19 Chg (%) 9M20 9M19 Chg (%) Sales 210,601 164,000 28.4% 554,563 460,264 20.5% EBIT 36,171 21,452 68.6% 86,385 50,645 70.6% EBIT margin 17.2% 13.1% 410 bp 15.6% 11.0% 460 bp Non-operating profit (1,360) 1,262 (11,720) (2,359) 396.7% Profi
Slide 14: Final Remarks
14 5. Final Remarks • In midst of an unprecedented sanitary crisis at a global scale, the Company has achieved historical results, reflecting: • An increasingly focused commercial strategy in terms of brands and markets, which has allowed strong growth in key brands and the premiumization of the mix
Slide 15: Investor Presentation 3Q20 Results
Investor Presentation 3Q20 Results November 2020
Slide 16: Capital Expenditures
16 Capital Expenditures 90,5 67,1 58,2 42,5 35,0 2016 2017 2018 2019 2020E Capex corresponding to infrastructure and productive capacity. Does not include increase in property of Kross Beer in 2017 and Excelsior in 2018 and 2019 Investor Presentation November, 2020
Slide 17: Financial debt maturity structure
17 Financial debt maturity structure (1) (billion Ch$) 205,1 142,7 46,7 32,2 13,9 9,0 0,2 2020 2021 2022 2023 2024 2025-2044 Debt Maturity LTM EBITDA Source: The Company (1) Considers financial liabilities excluding derivatives and leases. * LTM EBITDA as of September 30, 2020. Investor Presentation
Slide 18: Brand matrix: focus on Principal and Invest brands
18 Brand matrix: focus on Principal and Invest brands 2019 FY High Invest Principal • Don Melchor % of sales • Marques de Casa Concha • Trivento Golden 19.0% • Trivento Reserve 20.8% value • Diablo • Casillero del Diablo • CdD Reserva Especial1 • Cono Sur Orgánico • 1,000 Stories • Bonterra Potentia
Slide 19: Brand matrix - Implications
19 Brand matrix - Implications Portfolio rationalization: Exit from 140 brand out of 304. Special focus on Casillero del Diablo brand (PRINCIPAL). Investments in brands with the highest potential from our 3 origins (INVEST). Commercial and marketing focus on new brands development to support a high
Slide 20: Market matrix: Specialized commercial areas
20 Market matrix: Specialized commercial areas A markets B markets C markets Presence & > Priority Next wave Others Priority Commercial and Distribution Market Manager Offices 11 markets 9 markets 115 markets Markets > + 107 countries % of Sales > 80% 10% 10% Commercial offices: 13 - Distributors: 3
Slide 21: Top line +28.4% in 3Q20
21 Top line +28.4% in 3Q20 Sales (Ch$ million) 3Q20 3Q19 Chg (%) 9M20 9M19 Chg (%) Export Markets⁽1⁾ 141.290 102.788 37,5% 369.579 296.524 24,6% Chile 26.340 24.104 9,3% 63.014 60.440 4,3% USA 32.103 28.224 13,7% 94.644 77.203 22,6% Argentina 1.100 1.233 (10,8%) 2.892 3.094 (6,5%) Total Wine Sales 2