Vina Concha Y Toro S.a. · BCS:CONCHATORO
Vina Concha Y Toro — 4Q19 & FY2019 Earnings Presentation
23 slides from Vina Concha Y Toro's earnings presentation, Mar 24, 2020
Slide 1: Investor Presentation 4Q19 & 12M19 Results
Investor Presentation 4Q19 & 12M19 Results March 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: Top line reflecting our new commercial strategy
4Q19 & 12M19 Results 3 1. Top line reflecting our new commercial strategy (Ch$ million) 4Q19 4Q18 Var % Sales 196,717 184,572 6.6% • Wine sales: +6% in 4Q19 and +9% in 12M19, on higher volume of priority Wine 187,032 176,274 6.1% brands in the Brand Matrix, better mix, Others 9,685 8,298 16.7% and p
Slide 4: Brand matrix: focus on Principal and Invest brands
4Q19 & 12M19 Results 4 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
Slide 5: Brand matrix - Implications
4Q19 & 12M19 Results 5 Brand matrix - Implications Portfolio rationalization: Exit from 82 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
Slide 6: Market matrix: Specialized commercial areas
4Q19 & 12M19 Results 6 Market matrix: Specialized commercial areas A markets B markets C markets Presence & > Priority Next wave Others Priority Commercial and Distribution Offices Market Manager 9 markets 9 markets 115 markets Markets > + 107 countries % of Sales > 80% 10% 10% Commercial offices: 1
Slide 7: 2019: Top line growth driven by Principal and Invest brands
4Q19 & 12M19 Results 7 2019: Top line growth driven by Principal and Invest brands Sales growth by brand category Sales value breakdown by brand category Value Volume 20,8% 19,7% Principal 12.9% 10.0% 19,0% 16,7% Invest 21.5% 15.4% Protect 7.8% (0.3%) 32,1% 32,4% Watch (2.9%) (6.7%) 6,3% 5,7% Other
Slide 8: 2019: Top line growth driven by A&B markets
4Q19 & 12M19 Results 8 2019: Top line growth driven by A&B markets Sales growth by market Sales value breakdown by market 10,1% 15,2% 9,6% Value Volume 8,6% A 12.9% 4.3% B 19.0% 5.9% 80,3% 76,1% C (29.2%) (22.8%) Total 7.0% 0.7% 12M19 12M18 A B C Investor Presentation March, 2020
Slide 9: Casillero del Diablo: Continuous growth through years
4Q19 & 12M19 Results 9 Casillero del Diablo: Continuous growth through years Successful positioning Recognition for in the premium category outstanding quality Casillero del Diablo Cabernet Sauvignon 2017 & 2018 2019: 90 Sauvignon Blanc 2018 US$210 MM POINTS 5.7 MM cases James Suckling 2001: US$16 M
Slide 10: Casillero del Diablo Reserva – Single Principal brand in the Brand Matrix
4Q19 & 12M19 Results 10 Casillero del Diablo Reserva – Single Principal brand in the Brand Matrix 4Q19: 12M19: Volume + 11% Volume + 10% Value + 16% Value + 13% Volume growth led by priority markets: 4Q19: UK +24%, USA +33%, Brazil +83% 12M19: UK +10%, USA +16%, Brazil +47% Investor Presentation Mar
Slide 11: Casillero del Diablo – Strong growth of line extensions
4Q19 & 12M19 Results 11 Casillero del Diablo – Strong growth of line extensions Line extensions and Diablo represented 11% of Casillero del Diablo group sales in 2019 4Q19: Volume +12%, Value +21% Volumes led by UK +326%, China +135% South Korea +136%, Brazil +31% 12M19: Volume +21%, Value +27% Volu
Slide 12: Outstanding performance of Diablo in its second year in the market
4Q19 & 12M19 Results 12 Outstanding performance of Diablo in its second year in the market • Launched in 2018 • Sales: 112,000 9lc in 2019 4Q19: Volume +116%, Value 102% 12M19: Volume +124, Value 104% In 2019, volume was led by Chile, UK, China, Denmark, USA. Investor Presentation March, 2020
Slide 13: Cono Sur Bicicleta – Driven by UK and Asia
13 Cono Sur Bicicleta – Driven by UK and Asia 4Q19: Volume +7%, Value +16% Volumes led by UK +42%, Japan +10%, China + 81% 12M19: Volume +9%, Value +17% Volume growth led by UK +15%, Japan +26% South Korea +65% Investor Presentation March, 2020
Slide 14: Trivento Reserve – Remarkable performance led by Europe, USA, and Latin America
4Q19 & 12M19 Results 14 Trivento Reserve – Remarkable performance led by Europe, USA, and Latin America 4Q19: Volume +43%, Value +53% Volumes led by UK +36%, USA +60%, Denmark + 118% Mexico +64% 12M19: Volume +39%, Value +44% Volume growth led by UK +48%, USA +20%, Brazil +164% Investor Presentation
Slide 15: Bonterra & 1000 stories – a challenging USA market and Strong exports growth
15 Bonterra & 1000 stories – a challenging USA market and Strong exports growth 4Q19: Volume -16%, Value -8% Volume: USA -20%, Canada +12%, UK +50% Germany +196% 12M19: Volume 0%, Value +8% Volume: USA -4%, Denmark +57%, UK +58% Switzerland +199%, Germany +90% Investor Presentation March, 2020
Slide 16: Adj. EBITDA +19% in 4Q19
4Q19 & 12M19 Results 16 2. Adj. EBITDA +19% in 4Q19 (Ch$ million) 4Q19 4Q18 Var % Sales 196,717 184,572 6.6% - Gross margin driven by higher volume of priority brands, better mix, Gross profit 75,885 64,788 17.1% favorable f/x effect, lower cost of Gross margin 38.6% 35.1% 350 bp wine, partly offset
Slide 17: Adj. EBITDA +21% in 12M19
4Q19 & 12M19 Results 17 3. Adj. EBITDA +21% in 12M19 (Ch$ million) 12M19 12M18 Var % Sales 656,980 614,129 7.0% EBITDA growth driven by - Higher volume of priority brands Gross profit 241,397 204,586 18.0% Gross margin 36.7% 33.3% 340 bp - Favorable f/x effect and cost of wine - Higher SG&A on incre
Slide 18: Adj. EBITDA margin evolution through quarters
4Q19 & 12M19 Results 18 Adj. EBITDA margin evolution through quarters Adj. 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% 17.6% 17.8% 16.4% In 2019, operations results have improved progressively through the quarters, in line with
Slide 19: Non-operating profit
4Q19 & 12M19 Results 19 4. Non-operating profit (Ch$ million) 4Q19 4Q18 Var (%) Var $ Financial income 254 132 92.6% 122 Financial costs (3,350) (3,059) 9.5% (292) Share of profit (loss) of associates and joint ventures using equity method 215 29 636.6% 186 Exchange differences (1,190) 570 (1,760) A
Slide 20: Reported and adjusted results – 4Q19
4Q19 & 12M19 Results 20 5. Reported and adjusted results – 4Q19 Reported Adjusted (Ch$ million) 4Q19 4Q18 Var (%) 4Q19 4Q18 Var (%) Sales 196,717 184,572 6.6% 196,717 184,572 6.6% EBIT 26,432 18,203 45.2% 26,698 21,721 22.9% EBIT margin 13.4% 9.9% 360 bp 13.6% 11.8% 180 bp Non-operating profit (4,23
Slide 21: Reported and adjusted results - 12M19
4Q19 & 12M19 Results 21 6. Reported and adjusted results - 12M19 Reported Adjusted (Ch$ million) 12M19 12M18 Var (%) 12M19 12M18 Var (%) Sales 656,980 614,129 7.0% 656,980 614,129 7.0% EBIT 77,077 60,007 28.4% 78,919 62,816 25.6% EBIT margin 11.7% 9.8% 200 bp 12.0% 10.2% 180 bp Non-operating profit
Slide 22: Outlook - Capital Expenditures
4Q19 & 12M19 Results 22 7. Outlook - 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 March, 2020
Slide 23: Investor Presentation 4Q19 & 12M19 Results
Investor Presentation 4Q19 & 12M19 Results March 2020
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