Vina Concha y Toro S.A. · BCS:CONCHATORO
Vina Concha y Toro — Investor Presentation (November 2011)
49 slides from Vina Concha y Toro's investor presentation, November 2011
Slide 1: Investor Presentation November 2011
Investor Presentation November 2011 1 1/ 1
Slide 2: Most admired wine brand in the world
Most admired wine brand in the world. (“World's Most Admired Wine Brands ”, Drinks International, September 2011) Ranking Brand Country Wine Brands Concha y Toro Chile 1 Torres Spain 2 Jacob’s Creek Australia 3 Antinori Italy 4 Penfolds Australia 5 Cloudy Bay Australia 6 Chateau Lafite France 7 Vega
Slide 3: Company key facts: sales, volume, EBITDA 2010
• Operating plants in 3 countries • 9 Distribution Subsidiaries • 135 countries reached • 268 independent distributors Total Sales 2010: US$ 735 million Volume 2010: 29.2 million cases * Announced on November 2011, Operating in 1Q12 EBITDA 2010: US$ 119 million 3 3/ 3
Slide 4: Concha y Toro Performance
Concha y Toro Performance Income Statement 2003 (*) 2010 CAGR Sales (Ch$ million) $ 190,303 $ 374,019 10% Exports ** (Ch$ million) $ 133,472 $ 278,414 11% Exports ** (US$ million) $ 151 $ 547 20% % Exports 70.1% 74.4% Export volume ** ('000 cases) 7,802 20,514 15% Operating Result (Ch$ million) 27,3
Slide 5: Consolidated Sales and Sales Breakdown
Consolidated Sales Sales Breakdown Million Ch$ 2010 Exports Average Annual 69.9% Domestic Growth: 11.0% Market Wine 15.9% Dom. Mkt - Other Products 374,019 Annual Growth: 8.3 % 5.4% 354,419 314,756 304,067 Argentina 296,898 6.9% 246,640 274,224 Others 1.8% Domestic 9M 2011 Market Wine 15.4% Dom. Mkt
Slide 6: Business Model: Key Factors & Growth Drivers
Concha y Toro Business Model: Key Factors & Growth Drivers Exclusive focus on wine Strong Distribution Strong Portfolio of Network: Global Reach / Wines across all Leading Position in Key market segments Markets Quality Assurance and Consistency: Market Own Vineyards Diversification and Processes In
Slide 7: Business Model: Key Factors & Growth Drivers
Concha y Toro Business Model: Key Factors & Growth Drivers Exclusive focus on wine Strong Distribution Strong Portfolio of Network: Global Reach / Wines across all Leading Position in Key market segments Markets Quality Assurance and Consistency: Market Own Vineyards Diversification and Processes In
Slide 8: Export Sales (Bottled Wine)
Concha y Toro Export Sales (Bottled Wine) Million Ch$ Thousand US$ Average Annual Average Annual Growth: 15.1% Growth: 16.6% Annual Growth: 5.7% 266,566 277,068 Annual Decrease: 3.6% 543,942 246,683 483,405 453,287 218,592 416,239 403,531 393,652 204,741 197,306 157,620 294,666 2006 (*) 2007 (*) 200
Slide 9: Export Sales (Chile + Argentina) – Total Volume
Concha y Toro Export Sales (Chile + Argentina) – Total Volume (Volume Cases ´000) Average Annual Growth: 12.2% 20,514 18,955 Annual Decrease: 3.6% 17,642 16,279 15,165 14,619 12,924 2006 2007 2008 2009 2010 …. 9M 2010 9M 2011 9 9/ 9
Slide 10: Export Sales (Average Price US$/9lt Case)
Concha y Toro Export Sales (Average Price US$/9lt Case) Average Annual Annual Growth: 9.7% Growth: 4.4% 28.47 26.90 25.69 25.96 25.50 24.79 22.80 21.73 2005 2006 2007 2008 2009 2010 …. 9M 2010 9M 2011 10 10/ 10
Slide 11: Export Sales – Premium Wines
Concha y Toro Export Sales – Premium Wines (Volume Cases ´000) Average Annual Growth: 14.3% 4,155 3,692 3,620 Annual Decrease: 4.1% 3,542 3,048 2,922 2,433 2006 2007 2008 2009 2010 … 9M 2010 9M 2011 11 11/ 11
Slide 12: Business Model: Key Factors & Growth Drivers
Concha y Toro Business Model: Key Factors & Growth Drivers Exclusive focus on wine Strong Distribution Strong Distribution Strong Portfolio of Network: Global Reach / Wines across all Leading Position in Key market segments Markets Quality Assurance and Consistency: Market Market Own Vineyards Diver
Slide 13: Increasing market share over Chilean Exports
Increasing market share over Chilean Exports Exports of bottled wine* Volume Value 2004 29.2% 25.8% 2005 32.2% 27.2% 2006 33.4% 28.3% 2007 34.9% 30.2% 2008 37.0% 31.4% 2009 38.3% 32.3% 2010 36.6% 31.5% Ac-Sep 2011 33.8% 29.7% Source: Vinos de Chile (*) Includes bottled & Bag in Box 13 13/ 13
Slide 14: The Chilean Bottled Industry – Leading Position
The Chilean Bottled Industry – Concha y Toro Leading Position: Share over chilean % Part of CyT in total Country bottled export Growth 2010/2009 Chilean bottled Exports Rank (volume) (volume) United Kingdom 21.8% 2.9% 49.5% 1° USA 16.0% 1.8% 38.9% 1° Canada 4.5% 15.6% 36.6% 1° Netherland 5.8% 15.6%
Slide 15: Strong Distribution Network
Strong Distribution Network • Direct Distribution: • Concha y Toro UK (Since 2001) UK • 5.6 million cases to Dec 2010, 27.2% of total export volume • Concha y Toro Nordics (Sweden, Finland & Norway – Since 2009) Nordics • 1.0 million cases to Dec 2010, 4.9% of export volume • VCT Brasil (Since 2008)
Slide 16: Distribution Subsidiaries: Driving the growth
Distribution Subsidiaries: Driving the growth Volume in Thousand 9 liter cases Value in Thousand US$ 2009 2010 % Change 2010/2009 Volume Value Volume Value Volume Value Total Exports & Sales of our Distribution Subsidiaries to 18.955 $ 483.405 20.514 $ 543.942 8.2% 12.5% third parties Export to Thir
Slide 17: Export growth by Region – by Volume
Concha y Toro export growth by Region – by Volume Mix of Export Sales % Change Volume Region 2010 9M 2010 9M 2011 2008 2009 2010 9M 2011 Continental Europe 19.4% 20.8% 18.5% 11.5% -2.6% 3.7% -13.9% Nordics (SWE, FIN, NOR) (1) 4.9% 4.8% 4.7% 0.0% 0.0% 15.4% -5.8% U.K. 27.2% 25.7% 23.7% 7.0% 19.6% 6.3
Slide 18: Total Chilean exports by category
Total Chilean exports by category (2010, January – September 2011) Jan - Dec 2010 % Change 2010/2009 Liters US$ Av. Price Liters US$ Av. Price ('000) ('000) US$/Ltr Bottled 458,498 $ 1,350,216 $ 2.94 10.7% 11.8% 1.1% Bulk 274,754 $ 201,799 $ 0.73 -1.6% 15.9% 17.8% Total 733,252 $ 1,552,015 $ 2.12 5.
Slide 19: Significant shift in Chilean bulk wine price curve
Significant shift in chilean bulk wine price curve Average Bulk wine price (Ch$/Liter) $600 $500 $400 $300 Average Price Trend Price Lineal (Average Price) $200 $100 $- abr-07 abr-08 abr-09 abr-10 abr-11 oct-07 ene-08 oct-08 ene-09 oct-09 ene-10 oct-10 ene-11 oct-11 ene-07 jul-07 jul-08 jul-09 jul-1
Slide 20: Export – New World Producers
Export – New World Producers (Bottled wine exports by volume – million liters) % Change % Change 2007 2008 2009 2010 Ac Aug 2011 2010/09 8M 2011/10 Australia 579 513 471 416 244 -11.8% -15.0% Chile 375 386 414 459 298 10.7% 0.9% USA 235 240 205 190 145 -7.1% 18.7% South Africa 191 224 245 230 122 -6
Slide 21: UK Market – Consumption (Volume) Off Trade by Origin
UK Market – Consumption (Volume) Off Trade by Origin Off - Trade Wines by Country 1,000cs 25,000 Negative - decrease in overall consumption: -2%. Chile increasing volumes by 20,000 1%. Chile passes South Africa in 15,000 the 5th place in volume. 10,000 5,000 - NEW Light AUSTR SOUTH GERMA ARGEN PORTU
Slide 22: UK Market – Consumption (Value) Off Trade by Origin
UK Market – Consumption (Value) Off Trade by Origin Off - Trade Wines by Country £m 1,200 Positive - overall value of consumption growing 3% 1,000 Chile increasing 6% in terms of value. 800 Chile passes South Africa in the 5th place in value. 600 400 200 - NEW Light AUSTRA SOUTH GERMA ARGENT PORTU H
Slide 23: UK Market – Market Share by Origin Off Trade
UK Market – Market Share by Origin Off Trade Off - Trade Wine by Country % vol - 5.0 10.0 15.0 20.0 25.0 21.1 AUSTRALIA 20.3 14.9 ITALY 16.6 14.4 - Chile increases mkt share USA 13.6 - Italy and Spain increase mkt share 12.2 FRANCE 12.5 -S.Africa loses more than 2.0% of mkt share 8.9 CHILE 9.1 10.9
Slide 24: UK Market – Average Price per Origin Off Trade
UK Market – Average Price per Origin Off Trade Off - Trade Wine by Country £ per 75cl equiv. - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 4.46 Light Wines 4.70 Positive - Average price 4.59 increasing 5.4% AUSTRALIA 4.81 4.14 Chile: Increase in Average ITALY 4.33 price 4.9% 4.42 USA 4.74 5.12 FRANCE 5.29 4.
Slide 25: US Market – Consumption
US Market – Consumption • Despite the economic dowturn, in the US, the wine market has continued increasing in volume. • 6.6% growth in Volume up to August 2011. • Imports: Bottled increases 4.7% up to August. (million 9 liter cases) % Change % Change 2008 2009 2010 Ac Aug 2011 2010/2009 2011/2010 W
Slide 26: US Market – Imported Wines by Country
US Market – Imported Wines by Country Volume Value +10.6% 18,000 900,000 +16.9% 16,000 800,000 Ac Aug 10 Ac Aug 10 14,000 Ac Aug 11 700,000 Thousand 9 ltr Cases Ac Aug 11 12,000 -10.3% 600,000 Thousand US$ 10,000 500,000 +27.3% -11.6% 8,000 400,000 +10.7% -8.1% 6,000 +0.6% 300,000 4,000 +8.5% +9.9%
Slide 27: Business Model: Key Factors & Growth Drivers
Concha y Toro Business Model: Key Factors & Growth Drivers Exclusive focus on wine Strong Portfolio of Strong Distribution Network: Global Reach / Wines across all market segments Leading Position in Key Markets Quality Assurance and Consistency: Market Own Vineyards Diversification and Processes In
Slide 28: Concha y Toro portfolio
Concha y Toro portfolio Category Bi Varietal & Varietal Premium Super Premium Ultra Premium Icon RRP USA US$ 4.99 US$ 6.99 US$ 7.99 US$ 9.99 US$ 13 US$ 16 US$ 20 US$ 30 US$ 35 US$ 70 US$ 110 US$ 125 RRP UK £ 4.99 £ 5.99 £ 6.99 £ 7.99 £ 8.99 £ 11.99 £ 11.99 £ 15.99 £ 18.99 £ 45 £ 60 £ 65 % sales 78.6
Slide 29: Cono Sur portfolio
Cono Sur portfolio £12.99 £30 | | Sug. retail £9.99 price 29
Slide 30: Domestic market Chile – Volume & Value
Domestic market Chile – Volume & Value Thousand Liters Million Ch$ Average Annual Average Annual Growth: 2.7% Growth: 4.0% 59,100 Annual Growth: 6.2% 77,291 74,235 Annual 71,742 53,221 53,705 70,435 50,467 Decrease: 6.6% 50,184 63,261 45,512 42,855 52,671 49,173 2006 2007 2008 2009 2010 …. 9M 2010 9
Slide 31: Domestic market Chile – Premium Wine growth
Domestic market Chile – Premium Wine growth Million Ch$ Average Annual % Premium/Total % Premium/Total Growth: 12.1% Year Volume Value 2006 3.1% 13.0% Annual Growth: 25.3% 2007 2.7% 13.2% 10,346 2008 3.1% 15.2% 8,743 2009 3.5% 16.3% 8,404 7,638 2010 4.1% 17.5% 7,004 6,708 Ac Sep 2011 4.5% 18.5% 6,54
Slide 32: Domestic Market Share
Domestic Market Share (by volume) 2005 2006 2007 2008 2009 2010 Ac Sep 2011 Concha y Toro 27.1 28.6 30.0 29.7 31.5 30.7 30.3 Santa Rita 24.4 25.5 27.9 28.7 28.9 29.4 29.3 San Pedro - Tarapacá 21.7 21.9 21.8 23.0 22.5 24.4 24.4 Others 26.8 24.0 20.3 18.6 17.1 15.5 16.0 Source: Nielsen 32 32/ 32
Slide 33: Trivento Export Sales: Argentina – Volume & Value
Trivento Export Sales : Argentina – Volume &Value Thousand Liters Thousand US$ Average Annual Growth: 5.0% Average Annual Annual Growth: 11.9% Annual Decrease: 23.1% Decrease: 7% 13,307 13,700 12,254 12,244 32,976 11,271 28,425 28,432 10,609 24,296 25,184 23,423 8,162 20,996 2006 2007 2008 2009 2010
Slide 34: Trivento Export Sales – Argentina Average Price
Trivento Export Sales - Argentina (Average Price US$/Case) Annual Growth: 20.9% Average Annual 25.83 Growth: 6.6% 21.66 21.37 20.90 19.23 17.84 16.77 2006 2007 2008 2009 2010 9M 2010 9M 2011 34 34/ 34
Slide 35: Total Argentinean exports by category
Total Argentinean exports by category Jan - Dec 2010 % Change 2010/2009 Liters US$ Av. Price Liters US$ Av. Price ('000) ('000) US$/Ltr Bottled 230,659 $ 699,088 $ 3.03 3.9% 17.0% 12.6% Bulk 44,580 $ 37,335 $ 0.84 -35.5% 2.9% 59.4% Concentrated Must 69,137 $ 128,087 $ 1.85 -14.7% -5.6% 10.6% Total 3
Slide 36: Trivento Domestic Sales: Argentina – Volume & Value
Trivento Domestic Sales : Argentina – Volume &Value Thousand Liters Thousand AR$ Average Annual Average Annual Growth: 4.9% Growth: 18.9% Annual Decrease: 1.3% Annual Decrease: 18.5% 66,898 8,492 8,313 7,780 7,768 60,008 51,798 6,409 46,611 46,008 5,663 42,316 4,613 33,426 2006 2007 2008 2009 2010 …
Slide 37: Trivento – portfolio
Trivento – portfolio Sug. Retail price USA USD 10 USD 15 USD 20 USD 79 Bi-varietal Tribu Reserve Amado Sur Golden Reserve Eolo Category Bi-varietal Varietal Premium Super Ultra Icon Premium Premium Price per case FOB USD18.5 USD 24 USD 34 USD 50 USD 75 USD 300 37 37/ 37
Slide 38: Business Model: Key Factors & Growth Drivers
Concha y Toro Business Model: Key Factors & Growth Drivers Exclusive focus on wine Strong Distribution Strong Portfolio of Network: Global Reach / Wines across all Leading Position in Key market segments Markets Quality Quality Assurance Assurance and Consistency: Market Own Vineyards Diversificatio
Slide 39: Sustained Investment over time
Sustained Investment over time • US$ 647 million between 2005 – 2011 - Vineyard expansion Chile - Increasing cellar and vinification capacity - Improvements in bottling capacity and efficiency - 2011: Record year of investment for Viña Concha y Toro Investment US$ Million (*) 2011 Capital Investment
Slide 40: Capacity Increase – Support Growth
Capacity Increase – Support Growth • Planted area growth of 114% in the last 7 years (CAGR = 11.5%) • 93% increase in Wine Storage & Ageing Capacity in the last 7 years (CAGR = 9.8%) 40 40/ 40
Slide 41: Vineyard holdings
Concha y Toro vineyard holdings (hectares) Vineyards Hectares to Total Planted 2010 be planted Hectares Valley - Chile Limarí 896 322 1,218 Casablanca 415 11 426 San Antonio 130 - 130 Aconcagua - 129 129 Maipo 974 22 997 Cachapoal - Rapel 1,306 525 1,831 Colchagua - Rapel 1,757 13 1,770 Curicó 666 4
Slide 42: The Chilean Wine Industry: An overview
The Chilean Wine Industry: An overview Total Hectares 2010: 118,000 Total bottled wine exports 2010: 458,498 thousand liters Concha y Toro: 36.6% Mkt Share Volume Exported bottled wine 2010 30.7% Mkt Share Vol Domestic Market (Dec 2010) 8,445 Hectares Planted (2010) 355.5 Storage capacity (million l
Slide 43: Area planted – largest wineries
Area planted – largest wineries (hectares planted) TWE (AUS/USA/NZ/IT) 11,031 Concha y Toro (CHI/ARG/USA) 9,513 + 429 E&J Gallo (USA) 8,100 Pernod Ricard (FR/AUS/ARG) 8,000 7,244 Constellation (USA/AUS/NZ/CAD) Grupo Peñaflor (ARG) 5,215 0 2,000 4,000 6,000 8,000 10,000 12,000 Source: Companies Fact
Slide 44: Exchange Rate Sensitivity
Exchange Rate Sensitivity Currency Mix Ac Sep 2010 Ac Sep 2011 Includes Fetzer CLP 22.4% 23.1% since 04/15/2011 USD 31.6% 36.0% GBP 19.3% 15.9% EUR 11.0% 10.4% CAD 4.0% 3.6% ARG 2.3% 1.9% SEK 3.0% 2.7% NOK 0.9% 0.8% BRL 5.5% 5.6% 44 44/ 44
Slide 45: Exchange Rate main producers
Exchange Rate main producers From 12/30/2009 to 11/09/2011 CLP 110 110 105 105 100 100 95 95 Against USD Against GBP 90 90 Against EUR 85 85 80 80 From 12/30/2009 to 09/30/2011 Against USD Against GBP Against EUR 12% 20% 17% 9.6% 10.6% 10% 15% 12% 7.1% 8% 6% 10% 7.5% 7% 6.2% 3.8% 4% 3.8% 2.3% 2.4% 5
Slide 46: Income Statement (million Ch$)
Income Statement (million Ch$) 3Q 2011 3Q 2010 Change 9M 2011 9M 2010 Change Operating Results Sales revenues 113,648 107,646 5.6% 296,898 274,224 8.3% Cost of sales (75,874) (70,190) 8.1% (196,202) (176,163) 11.4% % of sales -66.8% -65.2% -66.1% -64.2% Gross Profit 37,775 37,456 0.9% 100,696 98,061
Slide 47: Shareholder structure (September 2011)
Shareholder structure (September 2011) Other 15.0% ADR's Control Group 2.5% 39.9% Other Large Shareholders 18.1% Brokerage H, Mutual F & Insurance 12.7% Chilean AFP's 11.8% 47 47/ 47
Slide 48: Company Stock
Company Stock • US$ 1.5 million of Average Daily Value Traded 3M (85% Local, 15% ADR) $ 3.00 $ 2.50 $ 2.00 Local Price in US$ $ 1.50 $ 1.00 $ 0.50 $- Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 48 48/ 48
Slide 49: Investor Presentation November 2011
Investor Presentation November 2011 49 49/ 49
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