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Corporate Presentation June 2013 1 1 / 1 Wine Industry: Surface - PowerPoint PPT Presentation

Corporate Presentation June 2013 1 1 / 1 Wine Industry: Surface Area World Vineyards Surface Area Wine Fresh Grape Raisin 2011 2000 61% 69% 7% 8% 23% 32% million hectares 2000 2011 CAGR Wine 5.38 4.59 -1.4% Fresh Grape


  1. Corporate Presentation June 2013 1 1 / 1

  2. Wine Industry: Surface Area World Vineyards Surface Area • Wine Fresh Grape Raisin 2011 2000 61% 69% 7% 8% 23% 32% million hectares 2000 2011 CAGR Wine 5.38 4.59 -1.4% Fresh Grape 1.84 2.45 2.6% Raisin 0.62 0.55 -1.2% Total 7.85 7.59 -0.3% Source: OIV, Concha y Toro Estimates 2 2 / 2

  3. Wine Industry: Global decrease in wine vineyards hectares from 2000 to 2011 CAGR 2000-2011: -1.4% World : -1.4% • • France, Spain, Italy: -2.7% • • New world: -0.3% World Wine Vineyards * Chile : 1.3% • 5.40 5.40 • Argentina: -0.4% USA: -1.3% • 5.20 5.20 • Australia: 0.8% South Africa: -0.6% • 5.00 5.00 million hectares 4.80 4.80 4.60 4.60 4.40 4.40 4.20 4.20 4.00 4.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: OIV, Concha y Toro Estimates (*) Exclude fresh grape and raisins. 3 3 / 3

  4. Wine Industry: Top 10 wine producers Global Production Decreasing 0.5% per year • 7000 CAGR: CAGR: -1.3% 6000 -1.9% CAGR: 5000 -2.0% million liters 4000 2000 CAGR: -1.2% 2005 3000 CAGR: CAGR: 2011 +1.9% CAGR: +2.9% CAGR: CAGR: CAGR: 2000 +2.0% +4.2% -0.2% +3.0% 1000 0 France Italy Spain USA Argentina China Australia Chile South Germany Africa Source: OIV 4 4 / 4

  5. Wine Industry: Top 10 wine consumers Global Consumption Increasing 0.7% per year • Potential markets: Asia, Latin America and the US • 4,000 CAGR: -1.3% CAGR: 3,500 CAGR: -2.6% +2.7% 3,000 CAGR: 2,500 million liters -0.1% CAGR: +4.3% CAGR: 2000 2,000 CAGR: -2.9% CAGR: CAGR: +2.6% 2005 -2.2% +8.6% 1,500 2011 CAGR: 1,000 +0.2% 500 - France Italy Spain USA Germany China United Russia Argentina Romania Kingdom Main producers Source: OIV 5 5 / 5

  6. Wine Industry: Top 10 wine exporters Significant increase in exports of main producers. • 3000 CAGR: (includes bulk wine) 4.7% CAGR: 9.0% 2500 2000 CAGR: million liters -0.6% 2000 1500 CAGR: 2005 7.7% CAGR: CAGR: 2011 1000 +8.7% CAGR: +5.0% CAGR: CAGR: CAGR: +3.9% +8.8% +3.9% +12.6% 500 0 Italy Spain France Australia Chile USA Germany South Argentina Portugal Africa Source: OIV 6 6 / 6

  7. Wine Industry: Top wine exporters Significant increase in exports over total production. • (includes bulk wine) Exports/Total Production 80.0% 70.0% 60.0% 50.0% 40.0% % 30.0% 20.0% 10.0% 0.0% France Italy Spain USA Argentina Australia Chile South Africa Germany 2000 26.1% 28.4% 20.7% 12.9% 6.7% 38.6% 39.7% 20.3% 24.5% 2005 26.6% 31.1% 38.2% 15.1% 14.1% 49.1% 53.4% 33.4% 32.4% 2011 28.4% 58.4% 66.8% 22.5% 20.1% 63.2% 63.3% 37.0% 43.0% Source: OIV 7 7 / 7

  8. Wine Industry: Global situation World Wine Consumption Increasing 0.7% per year from 2000 to 2011. • World Wine Production Decreasing 0.5% per year from 2000 to 2011. • 30,000 29,000 28,000 27,000 million liters 26,000 25,000 World Wine Consumption 24,000 World Wine Production 23,000 22,000 21,000 20,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E Source: OIV, Concha y Toro Estimates 8 8 / 8

  9. Concha y Toro: Consolidated Sales Sales Breakdown 1Q13 Million Ch$ Average Annual Argentina Argentina Growth: 10.6% exports domestic U.S.A. 3% 1% (Fetzer) 450,545 domestic 422,735 11% 354,419 374,019 304,067 314,756 U.S.A. (Fetzer) 246,640 exports Chile 1% Domestic - +2.5% Export wine markets 13% 91,081 88,857 61% Chile Domestic 2006 2007 2008 2009 2010 2011 2012 … 1Q12 1Q13 sales - new (*) (*) (*) business Other 7% revenues 3% (*) For year 2008 and before, sales are expressed in Dec 2009 real terms. For 2009 onwards, sales are expressed in nominal terms and in IFRS. For years 2008 and before, sales are expressed in Chilean GAAP. Sales of distribution subsidiaries are included in Export Markets. First Half data don’t consider Bulk Wine 9 9 / 9

  10. Concha y Toro Performance Income Statement 2006 (*) 2012 CAGR Sales (Ch$ million) $ 246,640 $ 450,545 10.6% Exports ** (Ch$ million) $ 157,620 $ 294,362 11.0% Exports ** (US$ million) $ 295 $ 606 12.8% % Exports 63.9% 65.3% Export volume ** ('000 cases) 12,924 20,549 8.0% Operating Result (Ch$ million) 27,794 35,992 4.4% Op Results (Sales %) 11.3% 8.0% EBITDA (Ch$ million) $ 40,557 $ 53,680 4.8% EBITDA (% Sales) 16.4% 11.9% Net Income (Ch$ million) $ 18,466 $ 30,022 8.4% Net Income (% Sales) 7.5% 6.7% EPS (Ch$) $ 22.5 $ 40.2 10.2% Stock Value *** $ 799 $ 933 2.6% * Ch$ as December 2009 ** Export Sales & Volumes from Chile & Distr. Subsidiaries & Argentina *** Nominal Chilean Pesos at the end of each period 10 10 / 10

  11. Concha y Toro Business Model: Key Factors & Growth Drivers Exclusive focus on wine Strong Distribution Strong Portfolio Network: Global of Wines across Reach / Leading all market Position in Key segments Markets Strong Brand Market Recognition Diversification Quality Assurance Investment that and Consistency: supports growth and Own Vineyards and innovation Processes 11 11 / 11

  12. Concha y Toro Business Model: Key Factors & Growth Drivers Exclusive focus on Exclusive focus on wine wine Strong Distribution Strong Portfolio Network: Global of Wines across Reach / Leading all market Position in Key segments Markets Strong Brand Market Recognition Diversification Quality Assurance Investment that and Consistency: supports growth and Own Vineyards and innovation Processes 12 12 / 12

  13. Concha y Toro Export Sales (Bottled Wine) Million Ch$ Thousand US$ Average Annual Average Annual Growth: 12.8% Growth: 11.0% 294,362 266,566 277,068 279,371 576,559 606,109 246,683 543,942 218,592 453,287 483,405 403,531 157,620 294,666 +3.2% +6.8% 57,508 59,359 117,652 125,661 2006 (*) 2007 (*) 2008 (*) 2009 2010 2011 2012 … 1Q12 1Q13 2006 2007 2008 2009 2010 2011 2012 … 1Q12 1Q13 (*) For year 2008 and before, sales are expressed in Dec 2009 real terms. For 2009 onwards, sales are expressed in nominal terms and in IFRS. For years 2008 and before, sales are expressed in Chilean GAAP. It considers exports and the sales of our distribution subsidiaries (UK, Nordics, Brazil, Singapore and Mexico) 13 13 / 13

  14. Concha y Toro Export Sales - Total Bottled Volume (Volume Cases ´000) Average Annual Growth: 8.0% 20,514 20,549 20,046 18,955 17,642 16,279 12,924 +1.2% 4,058 4,107 2006 2007 2008 2009 2010 2011 2012 … 1Q12 1Q13 It considers exports from Chile and Argentina, and the sales of our distribution subsidiaries (UK, Nordics, Brazil, Singapore and Mexico) 14 14 / 14

  15. Concha y Toro Export Sales (Average Price US$/9lt Case) Average Annual +5.5% Growth: 4.4% 30.60 29.50 29.00 28.76 26.90 25.69 25.50 24.79 22.80 2006 2007 2008 2009 2010 2011 2012 1Q12 1Q13 15 15 / 15

  16. Concha y Toro Export Sales – Premium Wines (Volume Cases ´000) Average Annual Growth: 11.0% 4,545 4,155 4,022 3,692 3,620 3,542 2,433 +17.8% 882 749 2006 2007 2008 2009 2010 2011 2012 … 1Q12 1Q13 16 16 / 16

  17. Total Chilean exports by category Jan - Dec 2010 % Change 2010/2009 Liters Liters US$ Av. Price US$ Av. Price ('000) ('000) US$/Ltr $ 1,350,216 $ 2.94 Bottled 458,498 10.7% 11.8% 1.1% $ 201,799 $ 0.73 Bulk 274,754 -1.6% 15.9% 17.8% $ 1,552,015 $ 2.12 Total 733,252 5.7% 12.4% 6.3% Jan -Dec 2011 % Change 2011/2010 Liters Liters US$ Av. Price US$ Av. Price ('000) ('000) US$/Ltr $ 1,492,342 $ 3.16 Bottled 472,359 3.0% 10.5% 7.3% $ 198,332 $ 1.03 Bulk 191,646 -30.2% -1.7% 40.9% $ 1,690,674 $ 2.55 Total 664,005 -9.4% 8.9% 20.3% Source: Vinos de Chile 17 17 / 17

  18. Total Chilean exports by category Jan - Dic 2012 % Change 2012/2011 US$ Av. Price Liters Liters US$ Av. Price ('000) US$/Ltr ('000) Bottled 473,391 $ 1,498,518 $ 3.17 0.2% 0.4% 0.2% Bulk 275,634 $ 291,964 $ 1.06 43.8% 47.2% 2.4% Total 749,026 $ 1,790,481 $ 2.39 12.8% 5.9% -6.1% Source: Vinos de Chile Jan - Mar 2013 % Change 2012/2011 US$ Av. Price Liters Liters US$ Av. Price ('000) US$/Ltr ('000) Bottled 99,804 $ 320,988 $ 3.22 3.5% 4.5% 0.9% Bulk 127,633 $ 115,818 $ 0.91 79.9% 43.9% -20.0% Total 227,437 $ 436,806 $ 1.92 35.9% 12.7% -17.1% 18 18 / 18

  19. Export – New World Producers (Bottled wine exports by volume – million liters) % Change % Change % Change 2007 2008 2009 2010 2011 2012 2010/09 2011/10 2012/11 Australia 579 513 471 416 353 331 -11.8% -15.1% -6.2% Chile 375 386 414 458 472 473 10.7% 3.0% 0.2% USA 235 240 205 190 218 221 -7.1% 14.3% 1.7% South Africa 191 224 245 230 185 169 -6.1% -19.7% -8.6% Argentina 189 211 222 231 216 207 3.9% -6.2% -4.3% Source: Wine Australia, Vinos de Chile, The Gomberg Fredrikson Report, South African Wine Information and Systems, Caucasia Wine Thinking. 19 19 / 19

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