Wine industry survey Mediobanca Research Department Milan, 20 March 2015
Leading wine-makers: Italian sales and exports (index 2009=100) 148.4 152.6 136.1 124.4 109.1 114.6 117.8 117.8 100.0 101.9 107.4 2009 2010 2011 2012 2013 2014P Sales generated in Italy Exports 2
Leading wine-makers and manufacturing companies: net sales (index 2009=100) 131.4 133.3 124.1 108.0 115.9 115.0 113.7 112.2 113.3 100.0 105.1 2009 2010 2011 2012 2013 2014P Wine industry Manufacturing industry 3
Analysis by company and product type in pre-closing 2014P figures (% chg. in sales 2014P/2013) 6.2 4.2 4.1 2.9 2.3 0.9 0.8 0.0 Limited companies Co-operatives Spumanti Other wines Totale Export 4
Percentages of companies by class of change in turnover vs previous edition (2009-2015F) and changes in sales 9.4 8.8 26.1 39.6 8.0 41.3 35.2 13.2 16.7 23.5 8.2 11.0 5.1 35.9 26.5 5.9 23.4 13.7 42.5 50.0 20.2 12.7 23.4 19.5 24.1-20.4-16.0-13.4-4.7-7.2-9.1-7.3-1.0-5.8-0.4-2.7-14.3 1.4-14.5-13.2-1.5-9.3-6.9-3.0-6.2-3.4-24.2-3.7 =< -10% from -5 to -9.99% from -0.01 to -4.99% >= +10% from 5 to 9.99% from 0 to 4.99% % change in sales 2009 2010 2011 2012 2013 2014P 2015F 5
Exports by geographies in 2014P (% share of turnover and chg. vs 2014P/2013) 50.4 16.9 32.3 8.8 6.1 1.7 11.1 4.9 1.3-3.3 EU countries North America Asia and Australia Central and South America Rest of the world % division in 2014P % chg. 2014P/2013 6
Top 25 Italian wine-makers by turnover (2013-2014P) Total sales Export Net profit (loss) Registered office 2013 2014 % change Rank Rank 2014 as a % of % change as a % of m 2014/2013 2013 2014 m 2014 sales 2014/2013 2013 sales No. of bottles Ownership produced in 2014 structure CANTINE RIUNITE & CIV ( ) Campegine (Re) 535 536 0.3 1 1 338 62.9 1.1 0.7 0.8 207,038,760 Co-operative of which: GIV - GRUPPO ITALIANO VINI ( ) Bardolino (Vr) 348 348-254 73.1 0.7 0.7 0.8 82,400,000 of which: CANTINE RIUNITE & CIV (*) Campegine (Re) 202 202-0.2 83 41.2 2.6 0.2 0.7 124,638,760 CAVIRO ( ) Faenza (Ra) 321 314-2.0 2 2 93 29.6 1.9 1.5 1.5 44,560,181 (^) Co-operative Gruppo CAMPARI (wines division) ( ) Milan 228 209-8.3 3 3 n.a. n.a. n.a. n.a. n.a. n.a. Family-owned PALAZZO ANTINORI ( ) Florence 172 180 4.8 4 4 125 69.4 7.0 15.3 15.8 22,749,000 Family-owned MEZZACORONA ( ) (*) Mezzocorona (Tn) 163 171 5.0 5 5 99 57.6 3.4 0.3 0.7 49,000,000 Co-operative FRATELLI MARTINI SECONDO LUIGI Cossano Belbo (Cn) 157 160 1.8 6 6 144 89.5 0.5 2.4 2.6 n.a. Family-owned CASA VINICOLA ZONIN ( ) Gambellara (Vi) 154 160 4.0 7 7 126 78.9 7.7 2.5 2.3 43,000,000 Family-owned CAVIT CANTINA VITICOLTORI (*) Ravina (Tn) 153 158 3.7 8 8 125 78.8 4.7 2.7 3.6 n.a. Co-operative CASA VINICOLA BOTTER CARLO & C. Fossalta di Piave (Ve) 136 136 0.3 9 9 132 96.8 2.2 5.8 8.1 64,201,208 Family-owned ENOITALIA Calmasino di Bardolino (Vr) 128 128 0.1 10 10 95 74.6-1.4 2.9 n.a. 81,234,000 Family-owned GRUPPO CEVICO ( ) (*) Lugo (Ra) 117 107-8.3 11 12 20 19.1-17.5 0.4 1.7 65,369,812 Co-operative CANTINA SOCIALE COOPERATIVA DI SOAVE ( ) (*) Soave (Vr) 103 102-0.8 12 13 46 45.0-11.1 1.3 1.4 35,000,000 Co-operative Gruppo SANTA MARGHERITA ( ) Fossalta di Portogruaro (Ve) 102 110 7.8 13 11 69 62.3 9.2 14.9 15.1 18,545,620 Family-owned GIORDANO VINI Diano D'Alba (Cn) 101 101 0.2 14 14 51 50.0 5.0-41.5 2.0 n.a. Mixed CONTRI SPUMANTI Cazzano Di Tramigna (Vr) 92 82-10.4 15 17 34 41.4 13.1 1.1 n.a. 74,540,000 Family-owned CANTINE BRUSA (*) Dozza (Bo) 92 70-23.2 16 22 25 35.7-30.2 0.6 0.6 n.a. Family-owned CANTINE TURRINI VALDO & FIGLIO Riolo Terme (Ra) 85 n.a. n.a. 17 n.d. n.a. n.a. n.a. 3.5 n.a. n.a. Family-owned LA VIS ( ) (*) Lavis (Tn) 85 89 5.2 18 15 70 78.0 7.7-8.0 - n.a. Co-operative COMPAGNIA DE' FRESCOBALDI ( ) Florence 84 86 2.9 19 16 54 63.3 4.8 17.7 15.3 10,079,600 Family-owned SCHENK ITALIA Ora (Bz) 80 82 1.8 20 18 57 70.0-3.4 0.5 1.7 39,953,000 non-italian-owned COLLIS VENETO WINE GROUP (*) Monteforte D'Alpone (Vr) 78 75-4.1 21 20 7 9.3-41.4 1.2 1.2 n.a. Co-operative RUFFINO ( ) (*) Pontassieve (Fi) 75 81 8.4 22 19 75 92.9 10.2 11.6 15.6 23,101,650 non-italian-owned MGM MONDO DEL VINO Forlì 66 73 10.1 23 21 50 68.5 10.5 0.1 0.9 34,769,406 Mixed Gruppo BANFI ( ) Montalcino (Si) 66 68 3.3 24 23 41 59.2-1.2 0.8 1.5 14,400,000 non-italian-owned MASI AGRICOLA ( ) S. Ambrogio Di Valpolicella (Vr) 65 60-7.1 25 24 54 90.5-7.4 12.1 12.7 11,760,000 Family-owned Net profit (loss) as a % of 2014 sales ( ) Consolidated financial data. (*) The financial year ends on 31 July for Cantine Riunite & Civ, Gruppo Cevico, Collis Veneto Wine Group and Cantine Brusa, on 31 May for Cavit, on 31 August for Mezzacorona, on 30 June for Cantina Sociale Cooperativa di Soave and La Vis, on 28 February for Ruffino. (^) Excluding wine sold in cartons, boxes and barrels. ( ) Only part of the wine division's data are included in the aggregate. The Group produces and sells «Riccadonna», «Cinzano» (vermouth and spumanti) as well as spumanti under the «M ondoro» and «Odessa» brand names. The Group also produces and sells «Sella & Mosca», «Enrico Serafino», «Teruzzi & Puthod», «Château Lamargue» and «Liebfraumilch» branded products. Source: financial statements and individual companies. 7
Indicators of economic performance, financial solidity and production efficiency in 2013 1.0 1.0 0.9 0.8 0.8 0.8 0.7 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.3 - z-score 8
2015 estimates: estimated changes (as % of those interviewed) in total sales in exports from 0% to +4.99% 50.0% from -0.01% to -4.99% 13.2% from -5% to -9.99% 1.5% =<-10% 3.0% >=+10% 8.8% from 0% to +4.99% 52.2% from -0.01% to -4.99% 6.0% from -5% to -9.99% 3.0% =<-10% 1.5% >=+10% 13.4% from +5% to +9.99% 23.5% from +5% to +9.99% 23.9% 9
Profitability of wine (as %, 2009-2013) 29.9 26.7 28.2 26.9 23.6 4.3 2.7 5.6 5.0 5.5 5.1 6.0 4.1 3.9 2.9 2009 2010 2011 2012 2013 ROI ROE NOM/VA 10
Profitability of wine and beverages (as %, 2009-2013) 8.6 8.5 9.1 10.9 8.0 5.6 4.1 3.9 2.9 2.7 7.7 9.5 11.0 8.8 9.9 4.3 5.0 5.5 5.1 6.0 2009 2010 2011 2012 2013 ROE (beverages) ROE (wine) ROI (beverages) ROI (wine) 11
ROE by region (as %, 2013) 9.8 1.4 2.6 3.5 5.3-1.5-0.8-15.7 Piedmont Friuli V.G. Sicily Trentino-Alto Adige Lombardy Emilia- Romagna Tuscany Veneto 12
Shareholders' portfolios ( m based on 2013 net equity) Co-operatives 736 Non-Italian 299 Individuals: approx. 2.5bn families (directly or via companies): approx. 1.7bn Financial investors 385 Individuals 1,097 Others 72 Companies 645 13
Eight Italian companies with sales over 150m (turnover 2013) 3,530 1,951 1,161 965 656 535 489 321 315 314 287 228 223 221 210 203 172 168 163 157 154 153 * Champagne ** Wine Division 14
Exports (as % of 2013 sales; companies with sales of over 150m) 92.2 78.0 76.2 68.0 66.1 63.9 63.6 62.4 60.0 58.5 42.9 39.3 38.7 38.0 31.4 28.5 19.8 11.2 4.0 0 15
Industrial margins (EBIT/sales, as %; excluding co-operatives for Italy) 17.4 18.0 15.7 15.9 16.4 7.3 8.3 8.0 7.0 7.9 2009 2010 2011 2012 2013 Non-Italian Italian 16
End-markets (as % of 2013 sales) non-italian companies Italian companies North America 49.5% Europe 20.7% Central and South America 5.3% Rest of the world 11.0% Europe 51.1% Central and South America 1.3% Rest of the world 11.9% Asia and Australia 4.3% Asia and Australia 13.5% North America 31.4% 17
Vineyards owned by large producers (as % of total surface area, equal to 72,700 hectares) Chile 22.1% Europe 11.0% New Zealand 2.6% South Africa 7.2% Canada 1.5% Australia 12.5% United States 12.4% Argentina 3.2% China 27.5% 18
Largest vineyards worldwide (data in hectares) Constellation Brands (USA) 8,094 Viña Concha y Toro (CL) 10,703 Grupo Peñaflor (AR) 6,104 E. & J. Gallo Winery (US) 6,475 Treasury Wine Estates (AU) 12,778 Pernod Ricard (FR) 5,956 Yantai Changyu Pioneer Wine (CN) 20,000 19
Mediobanca index of listed wine companies (total return to 9 March 2015, Jan. 2001=100) 1426.8 1165.8 404.4 283.1 341.5 283.2 153.0 437.6 245.7 140.8 446.5 209.3 220.2 205.6 187.2 Australia Chile China France North America Spain Other countries World (local currency) MB wines index National stock market 20
Stock market multiples (at end-date for 2013 financial statements) 57.8 12.9 20.9 15.5 19.6 7.9 2.2 2.1 3.0 1.3 1.5 1.0 1.1 neg. China Other countries North America Chile Spain France Australia P/BV P/E 21
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