A WORLD-CLASS PLAYER CORPORATE PRESENTATION July 2013
VIÑA CONCHA Y TORO
1883 FOUNDATION OF VIÑA CONCHA Y TORO IN PIRQUE
130 YEARS OF HISTORY CHILE’S LEADING WINE PRODUCER
PUBLIC COMPANY SINCE 1933: MAIN OWNERSHIP IN TWO FAMILIES WITH A LONG-TERM VISION AND PASSION FOR WINE. 3
VIÑA CONCHA Y TORO
1994 FIRST WINERY IN THE WORLD TO TRADE IN THE NYSE
1996 EXPANSION TO ARGENTINA TRIVENTO WINERY
1997 JOINT VENTURE BETWEEN CONCHA Y TORO AND BARON PHILIPPE DE ROTHSCHILD
4
VIÑA CONCHA Y TORO
2000 BRAND BUILDING & STRENGTHENING GLOBAL REACH
2010 MANCHESTER UNITED PARTNERSHIP
2011 ACQUISITION IN CALIFORNIA OF FETZER VINEYARDS 5
HOLDING CONCHA Y TORO
HOLDING CONCHA Y TORO AT A GLANCE
HOLDING CyT
MARKET CAP. (US$MM) March 2013
CHILE
ARGENTINA
USA
1,524
2012 SALES (US$ MM)
928
765
53
110
2012 VOLUME (CASES MM)
30.2
26.0
1.8
2.5
HOLDING CONCHA Y TORO AT A GLANCE Sales 2012
VOLUME BREAKDOWN Domestic – Volume (cases MM) Rank Market Share
Export – Volume (cases MM) Rank Market Share
CHILE
ARGENTINA
USA
6.9
0.6
2.1
#1
-
#10
29.6%
-
1.1%
19.0
1.2
0.4
#1
#4
#6
35.4%
6%
2.0%
HOLDING STRUCTURE DEVELOPMENT OF A PORTFOLIO OF WINERIES – DIFFERENT PORTFOLIOS AND BRANDS TO ENHANCE THE HOLGING REACH. (In thousand cases)
13,641
4,546
2,106
1,813 Note: Does not include domestic generic brands.
321
118
2,460
13
VIÑA CONCHA Y TORO: LEADING THE GROWTH OF THE CHILEAN WINE INDUSTRY
CONCHA Y TORO: CONSOLIDATED SALES SUSTAINED GROWTH (US$ MILLION)
735 590
872
928
643
528 303 182
224
2002
2003
2004
354
2005
404
2006
2007
2008
2009
2010
2011
2012 11
CONCHA Y TORO: CONSOLIDATED SALES SUSTAINED GROWTH (VOLUME: IN MILLION 9-LITER CASES)
29.2 26.6
29.7
30.2
28.1
25.7
18.5 13.8
15.9
2002
2003
2004
19.1
2005
21.4
2006
2007
2008
2009
2010
2011
2012 12
TOTAL SALES BREAKDOWN BY REGION
VOLUMEN SALES BY REGION 2005-2012 IN THOUSAND CASES
2005
2012
% OF TOTAL
2005
2012
CHILE
6,770
6,882
35.4%
22.8%
LATINO AMÉRICA
2.580
4,221
13.5%
14.0%
EEUU
2,669
5,095
14.0%
16.9%
CANADÁ
540
979
2.8%
3.2%
EUROPA
5,918
10,295
31.0%
34.1%
573
2,207
3.0%
7.3%
ÁFRICA
54
512
0.3%
1.7%
TOTAL
19,106
30,190
100.0%
100.0%
ASIA
WHAT EXPLAINS THIS GROWTH?
» VIÑA CONCHA Y TORO HAS DEVELOPED A SUCCESSFUL BUSINESS MODEL WITH A STRATEGY FOCUSED ON: • QUALITY • BRAND BUILDING • EXPORT DRIVEN
14
QUALITY
VINEYARDS PLANTED IN CHILE THE GREATEST DIVERSITY OF INDUSTRY
Valleys
9
Vineyards
51
Varieties
25
16
TOTAL PLANTED AREA
(In hectares)
Chile
9,133
Argentina
1,154
USA Total
463 10,750 17
MAIN WINERIES: VINEYARD AREA PLANTED 2ND AMONG WINERIES WITH LARGEST VINEYARD AREA PLANTED
(HECTARES)
0
2,000
4,000
6,000
8,000
Treasury Wine Estates
CONCHA Y TORO
Pernod Ricard (FR/AUS/ARG)
Constellation (USA/AUS/NZ/CAD)
14,000
10,750
(CHI/ARG/USA)
(USA)
12,000
11,031
(AUS/USA/NZ/IT)
E&J Gallo
10,000
8,100 8,000
7,247 Source: Companies Fact Sheet, Web Page Information, Annual Reports, SEC Filings
18
PRODUCTIVE CAPACITY Own Vineyards & Capacity
CHILE
ARGENTINA
USA
Holding CyT
Planted hectares
9,133
1,154
463
10,750
Valleys
9
1
2
-
Number of Vineyards
51
8
15
-
Cellar Capacity (mm liters)
361
31
46
438
SUSTAINED INVESTMENT OVER TIME (US$ MILLION)
268
72 64
60
65 50
37
FETZER ACQUISITION US$ 238 MILLION
59
50
37
2005
2006
2007
2008
2009
2010
2011
2012
(Figures in pesos converted to US dollars with the year–end exchange rate) 20
BRAND BUILDING
STRONG PORTFOLIO OF WINES BROAD PORTFOLIO OF PRODUCTS WITH THE CONCHA Y TORO ENDORSEMENT. UNIQUE IN THE INDUSTRY.
ICON £65 / £65 / £40 USD135 / USD 120 / USD 95
% of sales by value
ULTRA PREMIUM £18,99 / £12,99 - 15,99 USD 40 / USD 45 - 25
6.4%
SUPER PREMIUM £12,99 / £11,99 USD 19.99 / USD 14.99
PREMIUM
VARIETALS
£8,99 / £7,49 - 9,99 USD 13 / USD 10
£5,99 / £4,99 - 5,49
31.3%
62.3%
USD 7 / USD 5- 6
22
BRAND BUILDING
SUCCESSFUL POSITIONING OF A GLOBAL BRAND IN THE PREMIUM CATEGORY 23
GLOBAL WINE BRAND
SALES 2001:
619,000 cases
SALES 2012:
3,400,000 cases
CHANGE:
+5 times
24 24
GLOBAL WINE BRAND
25 25
GLOBAL WINE BRAND
26 26
QUALITY AND CONSISTENCY
Cabernet Sauvignon 2010 Finest Value Cabernet on the planet Matthew Jukes, Daily Mail, UK February 2012
Malbec 2009 90 pts. Robert Parker’s Wine Advocate May 2010
Chardonnay 2009 Gold Medal Decanter May 2011 27 27
BRAND BUILDING GROWING IN IMAGE AND INCREASING INTERNATIONAL RECOGNITION OF THE CONCHA Y TORO PORTFOLIO
ICONOS USD135 / USD 120 / USD 85 £65 / £65 / £40
ULTRA PREMIUM USD 40 / USD 45 - 25 £18,99 / £12,99 - 15,99
SUPER PREMIUM USD 19.99 / USD 14.99 £12,99 / £11,99
% de ventas por valor
6.4%
PREMIUM
VARIETALS
USD 13 / USD 10 £8,99 / £7,49 - 9,99
USD 7 / USD 5- 6 £5,99 / £4,99 - 5,49
31.3%
62,3%
28
OUTSTANDING CONSISTENCY
91 pts CABERNET SAUVIGNON 2009 Editors’ Choice “Chile, The best wines for every occasion” Wine Enthusiast February 2012
91 pts CARMENERE 2009 Robert Parker The Wine Advocate February 2012
29
ICON CARMENERE - LAUNCHED IN 2006
THE HIGHEST RATINGS EVER FOR A CHILEAN WINE
97 pts VINTAGE 2003 & 2005
96 pts VINTAGE 2007
95 pts VINTAGE 2008
ROBERT PARKER THE WINE ADVOCATE 30
DON MELCHOR: ICON WINE
BEST EXPRESSION OF THE CABERNET SAUVIGNON FROM PUENTE ALTO
94+ pts VINTAGE 2007 ROBERT PARKER’S WINE ADVOCATE FEBRUARY 2012
94 pts VINTAGE 2008 & 2009 WINE SPECTATOR OCTOBER 2012 & MARCH 2013 31 31
RECOGNIZED BY THE INDUSTRY
For the third consecutive year, Concha y Toro voted “World's Most Admired Wine Brand” BRAND
COUNTRY
1.
CONCHA Y TORO
CHILE
2.
Torres
Spain
3.
Penfolds
Australia
4.
Michel Chapoutier
France
5.
Cloudy Bay
New Zealand
6.
Ridge
US
7.
Brancott Estate
New Zealand
8.
Guigal
France
9.
Duboeuf
France
10.
Domaine de la Romanée-Conti
France
2010 - 2011 - 2012
32
EXPORT DRIVEN
TOTAL EXPORTS – CHILE & ARGENTINA INCLUDE EXPORTS FROM CHILE & ARGENTINA (IN US$ MILLION)
606 577 544 404
453
483
295
2006
2007
2008
2009
2010
2011
2012 34
TOTAL EXPORTS – CHILE & ARGENTINA INCLUDE EXPORTS FROM CHILE & ARGENTINA (IN MILLION 9-LITER CASES)
16.3
17.6
18.9
20.5
20.0
2010
2011
20.5
12.9
2006
2007
2008
2009
2012 35
AVERAGE EXPORT PRICE AVERAGE EXPORT PRICE (US$ / CASE)
36
EXPORTS BY GEOGRAPHIC AREA VOLUMEN GROWTH BY REGION 2005-2012
IN THOUSAND CASES
2005
AS % OF TOTAL
2012
2005
2012
EUROPE
5,918
10,269
50.2%
49,9%
USA
2,669
3,080
22.6%
15%
540
873
4.6%
4,2%
2,035
3,661
17.3%
17,8%
573
2,198
4.9%
10,7%
54
510
0.5%
2,5%
11,790
20,592
100.0%
100%
CANADA LATIN AMERICA ASIA AFRICA TOTAL
37
STRONG DISTRIBUTION NETWORK - EXTENSIVE NETWORK OF INDEPENDENT DISTRIBUTORS - DEVELOPMENT OF OWN DISTRIBUTION OFFICES UK NORDICS BRAZIL
Concha y Toro UK (Since 2001) Concha y Toro Nordics (Sweden, Finland & Norway – Since 2009)
VCT Brasil (Since 2008)
ASIA
VCT Group of Wineries Asia PTE (Since March 2010)
USA
Excelsior Wine Company (Since august 2011)
MEXICO
VCT & DG México (Operating in first quarter 2012)
AFRICA
VCT Africa & Middle East (Operating in first quarter 2012)
CANADA
Concha y Toro Canada (Operating in first quarter 2012)
CHINA
VCT China (Operating in first quarter 2013) 38
STRONG DISTRIBUTION NETWORK
137 COUNTRIES
39
COMMERCIAL INTEGRATION SALES VOLUME UNDER OWN DISTRIBUTION
Chile Argentina United Kingdom Nordics Brazil USA
Asia (VCT SINGAPORE) Mexico Total
Cases
% over total holding sales
6,881,594
22.8%
590,132
2.0%
5,505,990
18.2%
1,015,540
3.4%
643,128
2.1%
5,142,652
17.0%
46,220
0.2%
259,554
0.9%
20,084,810
66.5% 40
DOMESTIC MARKET
DOMESTIC MARKET MARKET SHARE IN VOLUME (%)
2006
2007
2008
2009
2010
2011
2012
28.6
30.0
29.7
31.5
30.7
30.4
29.6
Santa Rita
25.5
27.9
28.7
28.9
29.4
29.1
28.0
San Pedro Tarapacรก
21.9
21.8
23.0
22.5
24.4
24.6
26.7
Santa Carolina
3.1
2.3
2.0
1.8
1.8
1.7
1.5
Others
20.9
18.0
16.6
15.3
13.7
14.2
14.2
Concha y Toro
Source: Nielsen
42
DOMESTIC MARKET – SALES
IN VOLUME
IN VALUE
(In thousands liters)
(Ch$ Million)
71,742 74,235
70,435
65,119 61,934
50,184
2008
2009
2010
2011
2012
2008
53,705
2009
59,100
2010
61,998 61,573
2011
2012
43
DOMESTIC MARKET – PREMIUM GROWTH PREMIUM SEGMENT SALES (Ch$ millions) 14,125 12,508 10,346 8,743 7,638 Year
2008
2009
2010
2011
% Premium/ Total vol.
% Premium/ Total Value
2008
3.1%
15.2%
2009
3.5%
16.3%
2010
4.1%
17.5%
2011
5.2%
20.2%
2012
6.2%
22.9%
2012 44
NEW ORIGINS: NEW GROWTH DRIVER
ACQUISITION OF FETZER VINEYARDS GROWTH OPPORTUNITIES FOR CONCHA Y TORO: • Adds a new origin and opens the doors to the productive market in California. • Strengthens the commercial footprint
in the North American market. • Where Concha y Toro has a leadership among the imported brands (#3). • With the acquisition we add a relevant presence in the domestic market (Fetzer #10)
• Opportunity to develop Fetzer & Bonterra in export markets where Concha y Toro has a proven expertise. 46
TWO ATTRACTIVE BRANDS: FETZER & BONTERRA
• Among the top 10 best selling brands in the US market. • Broad portfolio of varieties. • Volume 2012: 1,600,000 cases. • Off trade distribution focus. • Recognized California wine brand. • Leader in the development of sustainable practices over 20 years. • Sustainable positioning :
“Earth-Friendly Winery”. 47
TWO ATTRACTIVE BRANDS: FETZER & BONTERRA
•
#1 in sales in the organic category
•
Pioneer in organic vineyard plantation since 1987.
•
Volume 2012: 310,000 cases
•
Price point: USD 15.99 / $13.99
48
CONCHA Y TORO
WELL POSITIONED FOR FUTURE GROWTH • STRONG MARKET POSITION AND BRAND AWARENESS • DRIVEN BY PREMIUM WINES • DRIVEN BY FOCUS BRANDS • ENHANCING THE PORTFOLIO WITH NEW ORIGINS
• CONSOLIDATION OF OWN DISTRIBUTION NETWORK