A"WORLD(CLASS"PLAYER" CORPORATE"PRESENTATION" MAY"2012"
VIÑA&CONCHA&Y&TORO&
1883!FOUNDATION" OF"VIÑA"CONCHA"Y"TORO"IN"PIRQUE"
129"YEARS&OF&HISTORY! CHILE’S"LEADING"WINE"PRODUCER"
PUBLIC&COMPANY&SINCE& 1933:& MAIN&OWNERSHIP&IN&TWO&FAMILIES&WITH& A&LONG9TERM&VISION&AND&PASSION&FOR& WINE.& 3"
VIÑA&CONCHA&Y&TORO&
"
1994" FIRST"WINERY"IN"THE"WORLD" " TO"TRADE"IN"THE"NYSE"
1997" JOINT"VENTURE"BETWEEN" CONCHA"Y"TORO"AND"BARON" PHILIPPE"DE"ROTHSCHILD"
2000" BRAND"BUILDING"&" STRENGTHENING"GLOBAL"REACH" 4"
VIÑA&CONCHA&Y&TORO&
2010" MANCHESTER&UNITED&& PARTNERSHIP&
2011"
&ACQUISITION&IN&CALIFORNIA&OF& FETZER&VINEYARDS& 5"
VIÑA"CONCHA"Y"TORO:" LEADING"THE"GROWTH" OF"THE"CHILEAN"WINE" INDUSTRY"
CONCHA&Y&TORO:&CONSOLIDATED&SALES& SUSTAINED"GROWTH" (US$"MILLION)" "
& % 18
AVE
"GRO L A NU N A " E RAG
303& 172& 182&
224&
2001&
2003&
2002&
2004&
354&
2005&
TE" A R " WTH
735& 590&
872&
643&
528&
404&
2006&
2007&
2008&
2009&
2010&
2011& 7"
CONCHA&Y&TORO:&CONSOLIDATED&SALES& SUSTAINED"GROWTH"
(VOLUME:"IN"MILLION"9(LITER"CASES)" "
& E" T A % R 10 OWTH" AVE
E RAG
"GR L A U "ANN
18.5& 11.9& 13.8&
2001&
19.1&
29.2& 26.6&
29.7&
28.1&
25.7&
21.4&
15.9&
2002& 2003& 2004& 2005& 2006& 2007&
2008&
2009&
2010&
2011& 8"
WHAT"EXPLAINS"THIS"GROWTH?"
»" VIÑA&CONCHA&Y&TORO&HAS&DEVELOPED&A&SUCCESSFUL& BUSINESS&MODEL&WITH&A&STRATEGY&FOCUSED&ON:& • "QUALITY" • "BRAND"BUILDING" • "EXPORT"DRIVEN"
9"
QUALITY"
VINEYARDS&PLANTED&IN&CHILE& THE"GREATEST"DIVERSITY"OF"INDUSTRY"
Valleys"""
9"
Vineyards"
50"
Varieties"
25"
11"
TOTAL&PLANTED&AREA&
"
(In$hectares)$
"
Chile
8,802
Argentina
1,134
USA Total
453 10,389 12"
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&&
10,389"
(CHI/ARG/USA)"
(USA)"
Pernod&Ricard&& (FR/AUS/ARG)"
Constellation"" (USA/AUS/NZ/CAD)"
"
11,031"
(AUS/USA/NZ/IT)"
E&J&Gallo&&
10,000" 12,000" 14,000"
8,100" 8,000" 7,247" Source:$Companies$Fact$Sheet,$Web$Page$Information,$Annual$Reports,$SEC$Filings$$
13"
&PRODUCTIVE&CAPACITY&&(CHILE)& Productive"cellars"""""""
15"
Vini[ication"and"cellar"capacity"
357"mm"liters"
Barrels"
43,000"
Bottling"plants"
4"
14"
SUSTAINED&INVESTMENT&OVER&TIME& 2011"RECORD"INVESTMENT:"US$"268"MILLION" "(US$"MILLION)"
268&
72& 64&
60& 37&
FETZER&ACQUISITION&&&&&&&& US$&238&MILLION&
65& 50&
60&
50&
37&
2005"
2006"
2007"
2008"
2009"
2010"
2011"
2012"E"
(Figures$in$pesos$converted$to$US$dollars$with$the$year–end$exchange$rate)$ 15"
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"85"
%""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"
17"
BRAND&BUILDING& • DEVELOPMENT"OF"A"STRONG"BASE""AT"THE"PREMIUM"LEVEL:" CASILLERO"DEL"DIABLO" " • " BRAND"BUILDING"WITH"PRIORITY"ON"FOCUS"BRANDS:" CASILLERO"DEL"DIABLO" " MARQUES"DE"CASA"CONCHA" DON"MELCHOR" " • ENHANCEMENT"OF"THE"PREMIUM"LEVEL""
"
18"
BRAND&BUILDING&
SUCCESSFUL"POSITIONING" OF"A"GLOBAL"BRAND"IN" THE"PREMIUM"CATEGORY" 19"
GLOBAL&WINE&BRAND& SALES"2001:&" "
619,000&cases&
SALES"2011:""" " CHANGE:""""""
3,114,000&cases&&
+5&times"
20" 20"
GLOBAL&WINE&BRAND&
21" 21"
GLOBAL&WINE&BRAND&
22" 22"
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"
23" 23"
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%&
24"
ICON&CARMENERE&9&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$ 25"
DON&MELCHOR:&ICON&WINE&
BEST&EXPRESSION&OF&THE&CABERNET& SAUVIGNON&FROM&PUENTE&ALTO&
200592011& SALES&VALUE&GROWTH&:&&&&& & & &" +27%
94+pts" VINTAGE"2007" ROBERT$PARKER$$THE$WINE$ADVOCATE$ $ FEBRUARY$2012 $ 26" 26"
OUTSTANDING&CONSISTENCY&
200592011& SALES&VALUE&GROWTH&:&&&&&
+95%
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"
27"
PREMIUM&SEGMENT&GROWTH& EXPORTS""BREAKDOWN"BY"MARKET"SEGMENT""
VOLUME&& (000&CASES)& 2005& ULTRA"&"SUPER" PREMIUM"
2011&
%&OF&SEGMENT&& OVER&TOTAL&SALES& 2005&
2011&
131&
320&
1.1%&
1.7%&
PREMIUM"
1,948&
3,985&
16.5%&
20.7%&
PREMIUM"AND"ABOVE"
2,079&
4,305&
17.6%&
22.3%&
VARIETAL"&"ENTRY" LEVEL"
9,711&
14,973&
82.4%&
77.7%& 28"
EXPORT" DRIVEN"
TOTAL&EXPORTS&–&CHILE&&&ARGENTINA& INCLUDE"EXPORTS"FROM"CHILE"&"ARGENTINA" (IN"US$"MILLION)"
& % 15 404&
250&
2005"
453&
577& 544& 483&
295&
2006"
2007"
2008"
2009"
2010"
2011" 30"
TOTAL&EXPORTS&–&CHILE&&&ARGENTINA& INCLUDE"EXPORTS"FROM"CHILE"&"ARGENTINA" (IN"MILLION"9(LITER"CASES)"
9%&
AGE AVER
"GR L A U "ANN
16.3& 11.8&
2005"
ATE" R " H OW T
17.6&
18.9&
20.5&
20.0&
2010"
2011"
12.9&
2006"
2007"
2008"
2009"
31"
AVERAGE&EXPORT&PRICE& AVERAGE"EXPORT"PRICE" (US$"/"CASE)"
32"
EXPORTS&BY&GEOGRAPHIC&AREA& VOLUMEN"GROWTH"BY"REGION"2005(2011" " " IN&THOUSAND&CASES&
2005&
2011&
AS&%&OF&TOTAL&
2005&
2011&
EUROPE"
5,918&
9,732&
50.2%&
48.5%&
USA"
2,669&
3,258&
22.6%&
16.3%&
540&
875&
4.6%&
4.4%&
2,035&
3,857&
17.3%&
19.2%&
573&
1,832&
4.9%&
9.1%&
AFRICA"
54&
493&
0.5%&
2.5%&
TOTAL"
11,790&
20,046&
100.0%&
100.0%&
CANADA" LATIN"AMERICA" ASIA"
33"
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"Asia"(Since$March$2010)$
USA$
Excelsior"Wine"Company"(Since$august"2011)"
MEXICO$
VCT"&"DG"México"(Operating$in$Wirst$quarter$2012)$
AFRICA$
VCT"Africa"&"Middle"East"(Operating$in$Wirst$quarter$2012)$
CANADA$
Concha"y"Toro"Canada"(Operating$in$Wirst$quarter$2012)$ 34"
STRONG&DISTRIBUTION&NETWORK&
135"COUNTRIES" " "
Productive"Operation" Distribution"Subsidiary" Commercial"of[ices"
35"
COMMERCIAL&INTEGRATION& SALES"VOLUME"UNDER"OWN"DISTRIBUTION" Cases&
%&over&total&holding&sales&
Chile"
7,235,479"""
24.4%"
Argentina"
"""678,503"
""2.3%"
United"Kingdom"
5,073,222"
17.1"%"
""""""958,010""
""3.2"%"
Brazil"
""""603,561"
"2.0"%"
USA"
4,819,941"
16.3%"
Asia"(VCT"SINGAPORE)"
""""""31,518"
""0.1%"
19,400,235&
65.4%&
Nordics"
Total&
36"
DOMESTIC" MARKET"
DOMESTIC&MARKET& MARKET"SHARE"IN"VOLUME"(%)"
&
2005&
2006&
2007&
2008&
2009&
2010&
2011&
Concha"y"Toro" "
27.1"
28.6"
30.0"
29.7"
31.5"
30.7"
30.4"
Santa"Rita"
24.4"
25.5"
27.9"
28.7"
28.9"
29.4"
29.1"
San"Pedro"(" Tarapacรก"
21.7"
21.9"
21.8"
23.0"
22.5"
24.4"
24.6"
Santa"Carolina"
3.2"
3.1"
2.3"
2.0"
1.8"
1.8"
1.7"
Others"
23.6"
20.9"
18.0"
16.6"
15.3"
13.7"
14.2" Source:$Nielsen$
38"
DOMESTIC&MARKET&–&SALES&&
IN"VOLUME""
IN"VALUE""
(In"thousands"liters)" 77,291
71,742 74,235
70,435
63,261
(Ch$"Million)"
65,119 50,467
2006
2007
2008
2009
2010
2011
2006
53,221 50,184 53,705
2007
2008
2009
59,100
2010
61,998
2011
39"
DOMESTIC&MARKET&–&PREMIUM&GROWTH& PREMIUM"SEGMENT"SALES"IN"MILLIONS"OF"PESOS"
12,508& 10,346& 8,743& 7,638& 6,543&
2006"
7,004&
&
Year&
2007"
2008"
2009"
2010"
2011"
%& Premium/& Total&&vol.&
%& Premium/& Total&Value&
2006"
3.1%"
13.0%"
2007"
2.7%"
13.2%"
2008"
3.1%"
15.2%"
2009"
3.5%"
16.3%"
2010"
4.1%"
17.5%"
2011"
5.2%"
20.2%" 40"
WORLD(CLASS" COMPANY"
VINEXPO"2011,"FRANCE."
RECOGNIZED&BY&THE&INDUSTRY& FOR"THE"SECOND"CONSECUTIVE"YEAR:"
#1&WORLD’S&MOST& ADMIRED&WINE&BRAND&
(April$2012)$
BRAND"
COUNTRY"
1.&
CONCHA&Y&TORO&
CHILE&
2."
Torres"
Spain"
3."
Antinori"
Italy"
4."
Penfolds"
Australia"
5."
Jacob’s"Creek"
Australia"
6."
Kendall"Jackson"
USA"
7."
Michel"Chapoutier"
France"
8."
Guigal"
France"
9."
Vega"Sicilia"
Spain"
10."
Château"Margaux"
France" 42"
GLOBAL&REACH&STRATEGIC&PARTNERSHIP&
PARTNERSHIP"WITH"THE" ENGLISH"CLUB"MANCHESTER" UNITED"
43"
GLOBAL&REACH&STRATEGIC&PARTNERSHIP&
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"2011:"1,700,000""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"2011:"340,000"cases"
•
Attractive"growth:"13%"on"average"for"" 2006(2011."
•
Price"point:"USD"15.99""/"$13.99"
48"
STRENGTHENING&THE&PREMIUM&SEGMENT&
&&FETZER’S&SALES&MIX&
"
Mix"By"Volume"
SUPER"&"ULTRA""""""""""""""""""""""""""""""""""""""""""""""""""" PREMIUM" 15%" " &&PREMIUM& 78%" & ""BLEND"&"GENERIC" 8%" " &&&TOTAL&&
"Case"9L"(000)"
"US$"(000)"
Price"USD/Case"
254""
20,368""
80.1""
1,346""
58,723""
43.6"
130""
2,836""
21.8""
100%" ""1,730"" 81,928"" $ Fetzer$volume$considers$the$9]month$period$since$the$April$15,$acquisition.$$$
47.4""
49"
2011&FINANCIAL&RESULT&& (US$"MILLION)" 2010
2011
Var.&%
720
814
13%
Volume"(million"cases)
30
30
1%
Revenue"per"case"(us$)
24
27
12%
466
540
16%
Gross"Margin
35.4%
33.7%
1.8"pts.
SG"&"A"/"Sales
23.3%
24.0%
0.7"pts.
115
114
(1%
16.0%
14.0%
2.0pts.
Other"income"by"function
13
43
243%
Income"Taxes
19
25
34%
Net"Income
81
97
20%
147
421
186%
Avg."Interest"Rate
3.97%
3.62%
35bp
Debt/Equity
21.8%
57.9%
Revenue
Cost"of"Sales
EBITDA EBITDA"margin
Financial"Debt
(Figures$in$Chilean$pesos,$presented$in$US$$with$year]end$exchange$rate:$Ch$/US$:$519.2)$
50"
2011&RESULT& MAIN&EFFECTS&IMPACTING&RESULTS:& 1.&EXCHANGE&RATE&IMPACT&(Average"exchange"rates)"
2010&
2011&
VAR.&%&
Ch$/US$"
510.4"
483.4"
(5.3%"
Ch$/EURO"
676.6"
672.4"
(0.6%"
Ch$/GBP"
788.0"
774.8"
(1.7%"
51"
$"0" Mar(12"
Jan(12"
Nov(11"
Sep(11"
Jul(11"
May(11"
Mar(11"
Jan(11"
Nov(10"
Sep(10"
Jul(10"
May(10"
Mar(10"
Jan(10"
Nov(09"
Sep(09"
Jul(09"
May(09"
Mar(09"
Jan(09"
Nov(08"
Sep(08"
Jul(08"
May(08"
Mar(08"
Jan(08"
Nov(07"
Sep(07"
Jul(07"
May(07"
Mar(07"
Jan(07"
Ch&$&/&Liter&
2011&RESULT& MAIN&EFFECTS&IMPACTING&RESULTS:& 2.&HIGHER&WINE&COST&
Average&Bulk&Wine&price&(&Ch$/Liter)&
$"600"
$"500"
$"400"
$"300"
$"200"
$"100" Trend"Price"
Bulk"Cabernet"Industry"
52"
2011&RESULT& MAIN&EFFECTS&IMPACTING&RESULTS:& 3.&PRICE&EFFECT"
HIGHER"AVERAGE"PRICE:" AVERAGE"EXPORT"PRICE"
US$28.8/case"""»"""+8,6%" DOMESTIC"PRICE"
Ch$952/liter"""»"""+13,5%" 53"
A"WORLD(CLASS"PLAYER"" CORPORATE"PRESENTATION" MAY"2012"