Corporate Presentation 2020 VF Eng · 2020-07-21 · Corporate Presentation 2020 2019 HIGHLIGHTS 1. Trivento Reserve became one of the top 15 most sold wines in the UK. 2. In its

2020

C O R P O R AT E P R E S E N T AT I O N

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Corporate Presentation 2020

We are a leading global company in the wine industry with more than135 years of history. Our productive origins in Chile, Argentina and theUnited States give our wines character and identity, giving rise to a greatfamily of unique global brands, recognized worldwide for their quality,innovation and sustainability.

01VIÑA CONCHA Y TORO FAMILY OF WINERIES

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S TRATEG I C V I S I O N

TO BE A LEADING GLOBAL COMPANY,

CENTERED ON THE CONSUMER, WITH A FOCUS

ON THE DEVELOPMENT OF PREMIUM WINE BRANDS.

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Millions of consumers all over the world placetheir trust in the quality of our brands. Theirpreference defines our excellence. Each personwho works at Viña Concha y Toro aims to achieveexcellence in everything we do, and we understandthat this is a continuous and collaborative process.

CORPORATEVALUES

At Viña Concha y Toro, we encourage anentrepreneurial spirit and constantly challengeourselves. We aim to transcend with solutions thatadd value to our consumers. We believe in thepower of systematic research, development andinnovation for a connected and sustainable future.

We understand the value of growing in harmonywith our natural and social environment. Weincorporate sustainability into each step of ourbusiness, generating a virtuous cycle. We aim togive back what the earth has given to us in eachbottle.

We consider our employees to be strategic partnersand true change agents. Our systemic and inclusiveperspective establishes collaboration as the mainvalue of a culture which enables us to accomplisheach challenge that we set ourselves.

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I N TERN ATI O N A L P RES EN CE

PRODUCTIVE ORIGINS

COMMERCIAL AND DISTRIBUTION OFFICES

130 DESTINATION COUNTRIES

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CHILE

ARGENTINA

USA

ARGENTINA

USA

CHILE

BRAZIL

MEXICO

CANADAUK

NORWAYSWEDEN FINLAND

JAPANCHINA

SINGAPORE

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3ORIGINS

Chile Argentina United States

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OUR VINEYARDS ARE LOCATEDIN 3 NEW WORLD ORIGINS

56 vineyards 10,248 hectares10 valleys 14 vineyards 448 hectares2 valleys10 vineyards 1,411 hectares3 valleys

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SUBSIDIARIES

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BU S I N ES SM O D EL

Vertical integration model.

V I N E YA R D P R O D U C T I O NS U P P LYC H A I N D I S T R I B U T I O N

From the vineyard to our brands

Our operations cover the entire production and supply chain, guaranteeing the production of high-quality wines.

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S ECO N D LA RG ES T WI N ERY I N TH E WO RLDI N TERM S O F P LA N TED V I N EYA RD A REA

E. & J. Gallo (USA)

Viña Concha y Toro (CHI / ARG / USA)

Treasury Wine Estates(AUS / USA / NZ/IT)

Constellation(USA / CAD / NZ / IT)

0 2.000 4.000 6.000 8.000 10.000 12.000 14.000 (Hectares)

12,107

13,025

Pernod Ricard (FR / AUS / ARG)

5,913

9,312

7,976

Peñaflor(ARG)

3,400

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S U P P LYCH A I N

Efficient and profitable operation to deliverworld-class products with the highest quality standards to our customers.

ARGENTINA

USA

CHILE

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K EY M A RK ETS F O R D EV ELO P M EN TH I G H - P ERF O RM I N G BRA N D S

17.0%

3.4%

3.8%

5.0%

2.5%

5.0%

19.8%

5.3%

19.7%% of totalsales

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Top 5 in global sales> sales ~ $656,980 million

> 35 million cases

Highly renowned wine brand> Top 5

The World’s Most Admired Wine Brand 2020

RESULTSAT A GLANCE

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W I N E B R A N D S W I TH O U T S T A N D I N G R E P U T A T I O N S

1. Among the top 5World’s Most Admired Wine BrandsDrinks International.

2. Selected among the world’s Top 100 Winerieson 25 occasions(company with the second highest number of appearances in theranking)Wine & Spirits.

3. N°1 in corporate reputation for the wine industryMerco Chile.

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CO N S O LI D ATEDS A LES

(Millions of Chilean pesos)

*The figures for 2019, 2018 and 2017 are presented according to the IFRS 15 accounting standard, which generated a reduction in recognition of sales. As such, these figures are not comparable to those from previous years.

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WI N ES A LES V O LU M E

(Millions of 9-liter cases)

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S A LESBY O RI G I N

VOLUMENCHILE

ARGENTINA

USA

87.4%

6.2%

6.4%

VALUE

80.9%

7.3%

11.8%

CHILE

ARGENTINA

USA

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BREAKDOWNOF SALES BY REGION

*Chile includes sales of “Products other than wine”

% of total sales

35.2%Europe

12.0

11.3%Asia &

Oceania

3.8 0.3

0.9%Africa & M. East

7.2 5.0

16.0%Latin

America

5.1

19.9%USA & Canada

Wine: 11.8%Non-wine: 4.9%

(Volume of wine sold in millions of cases)

16.7%Chile

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EBI TD A & N ET IN CO M E

(Millions of Chilean pesos)

US$141 million

US$70 million

Exchange rate as of the end of 2019: Ch$/US$ 748,74

54,973

83,42593,432 92,701

86,267 86,025

105,644

2013 2014 2015 2016 2017 2018 2019

EBITDA

33,174

43,05149,797 47,931 49,575 49,111

52,500

2013 2014 2015 2016 2017 2018 2019

NET INCOME

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LEA D I N G CH I LEA NWI N E EX P O RTER

Top 10 Chilean wine markets

28.1% of Chilean exports in

terms of value

*Includes bulk exports by Viña Concha y Toro to the UK.

COUNTRY POSITION % OF BOTTLEDWINE EXPORTS

China No. 1 9.2%

USA No. 1 31.2 %

Japan No. 1 29.2%

UK* No. 1 53.5 %

Brazil No. 1 16.3 %

The Netherlands No. 1 22.4 %

Canada No. 1 35.5 %

Ireland No. 2 30.2 %

South Korea No. 1 24.3 %

Mexico No. 1 56.1 %

Total bottled wine No. 1 28.1%

* Source: Vinos de Chile, December, 2019.

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Focus on high-growth and high-margin segmentsin the wine industry. (>US$10 retail price).

SALES STRATEGY FOCUSED ON PREMIUM WINES

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S A LES S TRATEG Y F O CU S ED O N P REM IU M WIN ES

1. BRAND MATRIX: Identifies potential/relevance of brands, and aligns sales objectivesand marketing investments.

2. Especial focus on Casillero del Diablo: PRINCIPAL brand.

3. Investment in high-potential brands from our three countries of origin (INVEST)

4. MARKET MATRIX: Focus on the markets with the highest relevance and potential.

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BRA N D M ATRI X F O CU S ED O N P RIN CIPA L A N D IN V ES T BRA N D S

BRAND MATRIXAccounts for 78% of the holding’s sales.

1Includes Casillero Expert Series, Signature Series, Platinum Reserve, Legendary, Vintage and Leyenda.

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US$ 19 MM34% YOY

Accounts for 9% of Casillero del Diablo sales

CA S I LLERO D EL D I A BLOEX TEN S I O N S A N D N EW P RO D U CTS

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2019 Volume Growth

2019 TH. 9L-Cases

volume +15%

value +22%

CONO SUR ORGÁNICO

234

TRIVENTORESERVE

945

1000 STORIES

160

DIABLO

112

BONTERRA

485

9.1% 8.9% 38.5% 12.3%124% 3.8%

CONO SURBICICLETA

1,438

S O LI D G RO WTH O F I N V ES T CATEG O RY BRA N D S I N 2019

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2019 HIGHLIGHTS

1. Trivento Reserve became one of the top 15 most sold wines in the UK.

2. In its second year on the market, Diablo sold 112,000 cases, driven by sales in Chile, the UK, China, Denmark and the USA.

S O LI D G RO WTH O F I N V ES T CATEG O RY BRA N D S I N 2019


EXCELLENCE:BRAND RECOGNITIONS

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Wine Intelligence

#2 WORLD’S MOST POWERFUL WINE BRAND For a second consecutive year

BRA N DRECO G N I TI O N S

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Casillero del DiabloCabernet Sauvignon 2018James Suckling

Casillero del DiabloSauvignon Blanc 2018James Suckling

90Pts

90Pts


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Gran Reserva Serie Riberas Carmenere 2018Wine Spectator

91Pts

BRANDRECOGNITIONS

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MARQUES DE CASA CONCHA 3 OUT OF 4 MEDALS

International Wine Challenge


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Amelia Chardonnay 2018Descorchados

97Pts

BRANDRECOGNITIONS

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Don Melchor

2017James Suckling

99Pts


Don Melchor

2018James Suckling

100Pts

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Almaviva 2017James Suckling

Chile’s Best Wine

World's Wine of the Decade.

100Pts


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OcioPinot Noir 2015Tim Atkin

95Pts

Single Vineyard8 Grapes 2017 Decanter

95Pts

Reserva EspecialRiesling 2018Decanter

95Pts


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EoloMalbec 2016Tim Atkin

95Pts

GaudeoMalbec Paraje Altamira Tim Atkin

94Pts

Trivento Reserve Malbec 2018 Tim Atkin

91Pts

Top 100 Best Malbecs


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BonterraBiodynamicThe Butler 2016Wine & Spirits

92Pts

1000 StoriesZinfandel Batch 56Wine.com

92Pts


Corporate Presentation2020

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SUSTAINABILITY

We understand the value of growing in harmony with our natural and social environment. We incorporate sustainability into eachstep of our business, generating a virtuous cycle. We aim to giveback in every bottle, what the earth has given us.

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S U S TA I N A BI LI TYI N O U R S U BS I D I A RI ES

Concha y Toro recycles or reuses 98% of its waste, andis set to achhieve its goal of zero waste in 2020. In 2019,the company took the major step of signing up toBusiness Ambition for 1.5°C, a United Nationsinitiative, and became the first winery to certify itsnatural forests under FSC® standards for conservationpurposes. The use of water resources has been reducedthrough the implementation of mechanized irrigation in100% of its vineyards. With regard to carbon footprintmanagement, the company has set itself the goal ofachieving zero greenhouse gas emissions by 2050.

Since it was founded in 1968, Fetzer Vineyards has developed environmentally friendly, sociallyresponsible and regenerative practices. It was the firstwinery in the US to switch to green energy in 1999, thefirst North American winery to be certified as carbonneutral, and the first Californian winery to operate with100% renewable energy. It has been a Certified B Corporation since 2015.

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S U S TA I N A BI LI TYI N O U R S U BS I D I A RI ES

Cono Sur is focused on organic wine production, and has obtained organic production certificates for the majority of its vineyards (KIWA BCS Öko-Garantie GmbH). It currently has more than 300 hectares of vineyards certified by German company BCS Oeko-Garantie GmbH, and is a pioneer in sustainable agriculture, comprehensive vineyard management and several environmentally-friendly projects in Chile.

Bodega Trivento stands out as the first Argentineanwinery to adhere to the ten principles of the UN Global Compact. In 2018, it set specific objectives for threeSustainable Development Goals: SDG 4 – Qualityeducation, SDG 6 – Clean water and sanitation, and SDG 13 – Climate action.

Corporate Presentation2020

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CENTER FOR RESEARCHAND INNOVATION

Only wine R&D&I center in Latin America.

Scientific and technological innovation to address industry challenges.

Technological development and knowledge transfer for a more competitive industry.

More than 24 R&D projects ongoing.

49 extension activities during 2019.

1,500 m2 modular construction.

Cutting-edge equipment.

Ch$1,724 millionin R&D investment

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CEN TER F O R RES EA RCHA N D IN N O VATIO N

STRATEGIC R&D PROGRAMS

• Grapevine health in production.

• Grape and wine quality.

• Water resources and climate change.

• New product design.

• Smart wine industry.

STRATEGIC PARTNERSHIPS

C O R P O R AT E P R E S E N T AT I O N

2020

Documents

Corporate Presentation 2020 VF Eng · 2020-07-21 · Corporate Presentation 2020 2019 HIGHLIGHTS 1. Trivento Reserve became one of the top 15 most sold wines in the UK. 2. In its