Vina Concha y Toro S.A. · BCS:CONCHATORO
Vina Concha y Toro — Investor Presentation (January 2015)
50 slides from Vina Concha y Toro's investor presentation, January 2015
Slide 1: Corporate Presentation
Corporate Presentation January 2015
Slide 2: I. Concha y Toro: At a Glance
I. Concha y Toro: At a Glance
Slide 3: Concha y Toro today
Concha y Toro today Largest Chilean and Latin American Winery. #5 world’s winery in volume commercialized. #2 world’s vineyards owner. Production facilities in 3 countries: CL, US & AR. Distribution subsidiaries in 9 countries and 4 commercial offices. Global Presence in 145 countries. 3
Slide 4: Solid financial position
Solid financial position Net Sales (million US$) 2006: $404 2013: $957 CAGR: 13.1% Volume (million 9 liter cases, wine) 2006: 21.4 2013: 30.3 CAGR: 5.5% EBITDA* (million US$) 2006: $66.9 2013: $111.9 CAGR: 7.6% Net Income (million US$) 2006: $30.5 2013: $67.0 CAGR: 11.9% 4
Slide 5: II. Global Wine Industry
II. Global Wine Industry
Slide 6: Wine Industry: Top wine producers
Wine Industry: Top 10 wine producers • Global Production decreasing 0.1% per year • 9.4% increase in 2013 7,000 CAGR: CAGR: -1.1% -2.4% CAGR: 6,000 +0.5% 5,000 million liters 4,000 2000 CAGR: 3,000 +0.2% 2006 CAGR: CAGR: +1.4% +5.1% CAGR: 2013 2,000 +3.4% CAGR: CAGR: CAGR: +0.8% +3.6% -1.3% 1,000 0
Slide 7: Wine Industry: Top wine consumers
Wine Industry: Top 10 wine consumers • Global Consumption Increasing 0.4% per year • Potential markets: Asia, US and Latin America 4,000 CAGR: -1.5% 3,500 CAGR: CAGR: -2.6% +2.5% 3,000 CAGR: 1.0% 2,500 million liters CAGR: +3.5% CAGR: 2,000 CAGR: 2000 +2.1% CAGR: CAGR: +6.3% -3.3% 2006 -1.4% 1,500 2
Slide 8: Wine Industry: Global Situation
Wine Industry: Global Situation • World Wine Consumption Increasing 0.4% per year from 2000 to 2013 • World Wine Production Decreasing 0.1% per year from 2000 to 2013 Source: OIV, Concha y Toro Estimates 8
Slide 9: Wine Industry: Global Exports
Wine Industry: Global Exports • Global Export Value (€) Increasing 4.9% per year • Global Export Volume Increasing 3.8% per year Source: OIV 9
Slide 10: Wine Industry: Main Wine Importer Markets
Wine Industry: Main Wine Importer Markets 4.0% 0.5% 3.4% 6.4% 5.9% 32.0% 1.8% 0.6% 7.1% 0.3% 3.3% 22.7% 10 Source: OIV
Slide 11: Wine Industry: Main Wineries per Volume
Wine Industry: Main Wineries per Volume The top ten players reached 12.8% of total bottled volume sold in 2013 Volume Market Ranking Company Share 2013 1° E & J Gallo Winery Inc. 2.74% 2° Constellations Brands Inc. 2.08% 3° The Wine Group 1.61% 4° Treasury Wine Estates Ltd. 1.02% 5° Viña Concha y To
Slide 12: III. Investment Attractiveness
III. Investment Attractiveness
Slide 13: Investment Attractiveness
Investment Attractiveness 1. Lead by an experienced controlling group 2. Successful track record through years 3. A business model which has supported the growth 4. Market diversification 5. Growth that improves profitability 6. Export Markets Leading the Growth 7. Leading Position 13
Slide 14: 1. Lead by an experienced controlling group
1. Lead by an experienced controlling group Current Controlling Group is part of CyT since the 50’s. Three families integrate the controlling group. Exclusive focus on wine Leading the growth and expansion through years. Passion for wines Experienced Management Management in the Company fo
Slide 15: 2. Successful track record through years
2. Successful track record through years 1883 1966 Launch 1994 First 1997 Strategic 2010 Partnership 2013 World’s Foundation of of Casillero Winery to Alliance: Manchester Most Admired Concha y Toro del Diablo trade in NYSE Almaviva Winery United Wine Brand 1933 Listed in 1993 Launch of 1996 Launch
Slide 16: 3. A business model which has supported the growth
3. A business model which has supported the growth Strong Portfolio of Wines a. Quality Brand Building VERTICAL INTEGRATION Controlling since the vineyard b. Brand Strong Distribution Network Building Market Diversification Strong Global Brand Recognition c. Global Presence VERTICAL INTEGRATION 16
Slide 17: a. The importance of Quality Assurance and Consistency
a. The importance of Quality Assurance and Consistency 17
Slide 18: Leading Company in hectares planted
...Leading Company in hectares planted Hectares Planted As of June 30, 2014 TWE (AUS/USA/NZ/IT) 11,000 Concha y Toro (CHI/ARG/USA) 10,751 E&J Gallo (USA) 8,100 Pernod Ricard (FR/AUS/ARG) 8,000 Constellation (USA/AUS/NZ/CAD) 7,247 0 2,000 4,000 6,000 8,000 10,000 12,000 Source: Companies Fact Sheet,
Slide 19: Investments supporting the growth
…Investments supporting the growth Sustained Investment Over Time (US$ million) 2013 Capex Disclosure (*) Inorganic Growth: Fetzer (216.0) + Kross (2.7) (**) Estimated Capex for 2014 19
Slide 20: Investments supporting the growth
…Investments supporting the growth Planted Hectares Wine Storage & Ageing Capacity (million liters) 20
Slide 21: b. Brand Building… built on a strong portfolio
b. Brand Building… built on a strong portfolio… Multi Origin Brands Chile Argentina USA 21
Slide 22: Development of brands & history
… development of brands & history… CASILLERO DEL DIABLO SALES 2003: 1.0M cases SALES 2013: 3.8M cases CHANGE: +3.8 times 22
Slide 23: Innovation & passion for wine
… innovation & passion for wine… 23
Slide 24: Independent strong brands
…Independent strong brands … … with the endorsement of Concha yToro VARIETALS PREMIUM SUPER ULTRA ICON PREMIUM PREMIUM £5,99 / £4,99 - 5,49 £7,49 - 9,99 / £8,99 £11,99 / £12,99 £12,99 - 15,99 / £18,99 £40 / £65 / £65 USD 7 / USD 5- 6 USD 10 / USD 13 USD 14.99 / USD 19.99 USD 20 – 25 / USD 40 USD 95
Slide 25: A recognized winery obtaining global awards
… a recognized winery obtaining global awards “World’s Most Admired Wine Brand” “World’s Most Powerful Wine Brand” (Drinks International, 2011 – 2013) (Intangible Business, 2014) 25
Slide 26: The highest accolades for our Portfolio
… and the highest accolades for our Portfolio… 26
Slide 27: The highest accolades for our Portfolio
… and the highest accolades for our Portfolio… Concha y Toro and its subsidiary vineyards have focused on a producing wines of superior quality and that reflect the diversity of their origins. This has made the company to be recognized today as the benchmark of quality worldwide, and its wines worth
Slide 28: c. Global Presence… getting closer to markets
c. Global Presence… getting closer to markets 28
Slide 29: Sales that build brand equity
… sales that build brand equity… Distribution Subsidiaries: Driving the growth 29
Slide 30: 4. Market diversification
4. Market diversification… Chilean Destination of Bottled Exports Concha y Toro’s – Currencies and Markets Currency Mix 9M14 9M13 CLP 19.6% 21.2% USD 33.4% 35.9% GBP 20.0% 16.2% EUR 10.8% 10.1% CAD 3.1% 2.9% ARG 0.7% 1.4% SEK 3.1% 2.8% NOK 0.8% 0.9% BRL 6.3% 6.3% MXN 2.2% 2.4% Export Markets include
Slide 31: Leading the Chilean export categories
… leading the chilean export categories… The Chilean Bottled Export Industry – Concha y Toro Leading Position Share over chilean Rank Growth % Part of CyT in total Rank CyT over Country bottled exports 2014 2014/2013 chilean bottled exports Chilean Exports (volume) 1 USA 13.5% -3.6% 40.4% 1 2 United
Slide 32: 5. Growth that improves profitability
5. Growth that improves profitability Export Volume Domestic Volume (thousand cases, Wine) (thousand Liters) +7.0% +7.3% Premium Wines Export Volume Premium Wine Domestic Sales (thousand cases) (thousand Liters) +16.1% +23.0% 32
Slide 33: 6. Export Markets Leading the Growth
6. Export Markets Leading the Growth Consolidated Sales Export Sales (million Ch$) (million Ch$, Wine) +20.6% Average Export Price (US$ / 9 liter Case, Wine) +3.6% 33
Slide 34: 7. Leading Position
7. Leading Position Concha y Toro Exports of Chilean 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% 2011 33.7% 29.7% 2012 35.4% 31.3% 2013** 33.9% 30.5% 3M 2014** 32.0% 30.0% 6M 2014** 32.2% 30.0% 9M 20
Slide 35: 7. Leading Position
7. Leading Position Market Share – Domestic Market (Volume) 2005 2006 2007 2008 2009 2010 2011 2012 2013 9M14 Concha y Toro 27.1 28.6 30.0 29.7 31.5 30.7 30.4 29.6 28.5 27.0 Santa Rita 24.4 25.5 27.9 28.7 28.9 29.4 29.1 28.0 29.5 30.7 San Pedro 21.7 21.9 21.8 23.0 22.5 24.4 24.6 26.7 27.3 28.8 Santa
Slide 36: IV. Financial Position
IV. Financial Position
Slide 37: Recovering volume Growth
Recovering volume Growth Consolidated Volume (million 9 liter cases, Wine) Net Sales (billion Ch.$) +5.5% 2006: $215.8 2013: $475.6 CAGR: +11.9% YTD (Sep-14): +20.6% Consolidated Volume, 9M 2014 (thousand liters) 37
Slide 38: 2010-2013, a perfect storm
… 2010-2013, a perfect storm… Consolidated EBITDA Consolidated Mg. EBITDA (million Ch$) (% of Sales) CAGR: 6.6% 38
Slide 39: Remaining profitable through years
… remaining profitable through years… Consolidated Net Profit (million Ch$) * +33.8% (*) Includes the extraordinary effect of the insurance’s payments regarding the earthquake of 2010 (Ch$ 19,555 million before taxes)
Slide 40: Conservative Capital Structure (As of Sep-14)
Conservative Capital Structure (As of Sep-14) Financial Debt / Equity Total Liabilities / Equity 1,4(*) Net Financial Debt / EBITDA (1) EBITDA (1)/ Financial Expenses(1) 2,5(**) Liabilities: Current Liabilities + Non Current Liabilities Financial Debt: Other current financial liabilities + Other non
Slide 41: Financial Debt
Financial Debt Financial Debt* as of: Sep-14 Sep-13 Ch$ MM Av. Interest rate Ch$ MM Av. Interest rate USD 129,864 3.03% 130,901 3.04% EUR 0 0.00% GBP 0 0.00% CLP 18,012 4.68% 4,494 5.57% UF 130,792 3.43% 81,498 3.74% ARS 5,782 22.99% 8,056 15.72% BRL 8,658 11.63% 6,911 9.97% MXN 878 6.22% SEK 0 0.00
Slide 42: Financial Debt
Financial Debt Financial Debt by Currency As of September 30, 2014 (1) Source: The Company (1) Considers current and non current financial liabilities excluding derivatives 42
Slide 43: Financial Debt
Financial Debt Expected Maturity Date(1), as of September 30, 2014 (Million Ch$) * Source: The Company (1) Considers current and non current financial liabilities excluding derivatives * EBITDA, Last 12 Months (as of june 2014) 43
Slide 44: We are ready to continue growing
We have the brands. We have the portfolio. We have the distribution. We have the land. We have the investments. We have the expertise. We are ready to continue growing… 44
Slide 45: Corporate Presentation
Corporate Presentation January 2015
Slide 46: V. Exhibits
V. Exhibits
Slide 47: Holding Concha y Toro
Holding Concha y Toro Board of Directors Shareholder Structure (September 30, 2014) 7 2 6 4 1 3 5 1. Alfonso Larraín Santa María (Chaiman) 4. Francisco Marín Estévez 2. Rafael Guilisasti Gana 5. Sergio de la Cuadra Fabres 3. Mariano Fontecilla de Santiago 6. Pablo Guilisasti Gana Concha 7. Jorge Des
Slide 48: Bottled Sales 3Q2014 & 9M2014
Bottled Sales 3Q2014 & 9M2014 Change Change Total Sales⁽*⁾ (in Ch$ million) 3Q14 3Q13 9M 2014 9M 2013 (%) (%) Chile Domestic Market - wine 17,711 16,314 8.6% 44,771 42,209 6.1% Chile Domestic Market - new business 10,303 8,012 28.6% 29,875 22,410 33.3% Export markets⁽¹⁾ 98,164 89,521 9.7% 271,074 21
Slide 49: Performance 3Q & 9M 2014
Performance 3Q & 9M 2014 Income Statement 3Q14 3Q13 Change % 9M14 9M13 Change % Sales (Ch$ million) $ 148,412 $ 134,964 10.0% $ 405,613 $ 336,289 20.6% Exports * (Ch$ million) $ 103,382 $ 94,655 9.2% $ 287,234 $ 224,688 27.8% Exports * (US$ million) $ 179 $ 186 -4.2% $ 510 $ 457 11.5% % Exports 69.7
Slide 50: Chilean Harvest through the years
Chilean Harvest through the years Historical Harvest Volume (Million Liters) Source: SAG 50
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