CORPORATE PRESENTATION 2016
HISTORY 1883 Viña Concha y Toro founded in Pirque CHILE S LEADING WINE PRODUCER 133 Years of history Public company since 1933. Main ownership in two families with a long-term vision and passion for wine.
LEADER IN THE WINE INDUSTRY GLOBAL WINE COMPANY #1 CHILEAN WINE EXPORTER #5 LARGEST WINE COMPANY BY VOLUME #2 LARGEST VINEYARD HOLDING Chile Argentina USA 147 countries 32% volume share MKT. CAP: US$ 1,270 millions (April 2016) 10,804 hectares 12 distribution subsidiaries 2 commercial offices Sales 2014: US$1,000 millions 34.3 millions cases
HISTORY 1994 Concha y Toro becomes the first winery in the world to trade its shares on the New York stock exchange. 1996 Expands its business into Argentina Trivento Winery. 1997 Joint-Venture agreement with Baron Philippe de Rothschild. 2000 Brand building & strengthening the global reach.
HISTORY 2010 Strategic partnership Manchester United. 2011 Acquisition of Fecer Vineyards. 2014 Concha y Toro s Center for Research and Innovation.
2015 HIGHLIGHTS World s Most Powerful Wine Brand 2014 2015 (Intangible Business). 2015 International Best Drinks Company of the Year 2015 (The Drinks Business). The company is part of Dow Jones Sustainability Chile Index, DJSI Chile the first sustainability index of the Santiago stock exchange.
2015 CONSOLIDATED SALES (US$ MILLION) 2015 2014 2013 2012 928 957 1,018 SALES 2015 US$967 millions 2011 872 2010 735 2009 643 2008 590 2007 528 2006 404 2005 354
2015 CONSOLIDATED SALES (VOLUME: IN 9 LITER MILLION CASES) 2015 2014 33.2 VOLUME 2015 34.3 million cases 2013 2012 2011 2010 2009 2008 2007 30.7 30.6 30.1 29.7 28.8 27.5 26.3 2006 21.7 2005 19.2
SALES VOLUME BREAKDOWN BY REGION - 2015 (VOLUME: THOUSAND 9 LITER CASES)* *Sales percentage over the total bogled wine volume.
SUSBIDIARIES Development of wineries different portfolios and brands to enhance the holding reach. (THOUSAND CASES) 15,100 4,820 2,100 545 184 25.7 2,617 2,488
VIÑA CONCHA Y TORO HAS DEVELOPED A SUCCESSFUL BUSINESS MODEL. PERSISTENCE IN INNOVATION AND SUSTAINABLE DEVELOPMENT, HAVE ALLOWED IT TO GROW AND BE PRESENT IN 147 COUNTRIES, BECOMING A GLOBAL COMPANY KNOWN AND ADMIRED AS ONE OF THE MOST IMPORTANT WINERIES IN THE WORLD.
BUSINESS MODEL Business model pillars: QUALITY BRAND BUILDING GLOBAL PRESENCE - Involvement over all the productive process and supply chain. - Broad portfolio of wines. - Strong brand. - Growth in image / accolades. - Strong distribution network. - Market diversification.
OWN VINEYARDS CHILE 9 valleys 52 vineyards ARGENTINA 3 valleys 8 vineyards CALIFORNIA 3 valleys 15 vineyards 9,194 HECTARES 1,142 HECTARES 468 HECTARES
MAIN WINERIES: VINEYARD AREA PLANTED Treasury Wine Estates (AUS/USA/NZ/IT) VIÑA CONCHA Y TORO (CHI/ARG/USA) 10,804 12,117 Constellation (USA/AUS/NZ/CAD) 8,400 E&J Gallo (USA) Pernod Ricard (FR/AUS/ARG) 7,247 6,500 8,100 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 (HECTARES) Source: Companies Fact Sheet, Web Page, Information, Annual Reports.
PORTFOLIO OF WINES BROAD PORTFOLIO OF PRODUCTS WITH THE CONCHA Y TORO ENDORSMENT, UNIQUE IN THE INDUSTRY. ICON ULTRA PREMIUM SUPER PREMIUM PREMIUM VARIETALS USD102/ USD135 / USD 95 71 / 97 / 68 USD 65 / USD 40 / USD 45-25 47 / 29 / 32-18 USD 19.99 / USD 14.99 14 / 11 USD 13 / USD 10 9 / 7 USD 7-8 / USD 5-6 5-6 / 4-5
RECOGNITIONS: ALMAVIVA 2011 2013 2013 2013 2013 18 points Jancis Robinson 97 points James Suckling 96 points Descorchados 2016 94 points Robert Parker s Wine Advocate 94 points Wine Spectator
RECOGNITIONS: DON MELCHOR 2011 2011 2011 2011 2011 94 points Wine Spectator 95 points James Suckling 94 points Robert Parker s Wine Advocate 18 points Jancis Robinson Among the 10 best wines of 2015 FORBES
RECOGNITIONS: CARMÍN DE PEUMO 2010 2011 2012 2013 2013 96 points Best Chilean Carmenere Wine & Spirits 95 points Anthony Gismondi "Top Wine Wine Spectator 95 points Descorchados 2016 95 points Robert Parker s Wine Advocate
RECOGNITIONS: TERRUNYO Carmenere 2013 95 points Descorchados 2016 Carmenere Lot N 1 2014 96 points Best Chilean Carmenere Descorchados 2016 Sauvignon Blanc 2015 91 points Robert Parker s Wine Advocate Cabernet Sauvignon 2013 92 points Robert Parker s Wine Advocate Cabernet Sauvignon 2011 96 points Decanter
RECOGNITIONS: MARQUES DE CASA CONCHA Cabernet Sauvignon Limited Edition 2013 93 points James Suckling Cabernet Sauvignon Limited Edition 2013 94 points Descorchados 2016 Carmenere 2013 94 points Wine & Spirits
CASILLERO DEL DIABLO GLOBAL SALES 2001: 619,000 cases 2015: 5,000,000 cases CHANGE: 8 X SUCCESSFUL POSITIONING OF A GLOBAL BRAND IN THE PREMIUM CATEGORY UK: - Main market, Top 10 in sales. - #1 sales Cabernet Sauvignon Casillero del Diablo Reserva.
CASILLERO DEL DIABLO - Diversification and Innovation: Devil s Collection, Reserva Privada and the ultra premium, Leyenda. - Casillero del Diablo Leyenda 2013: 91 points, Robert Parker s Wine Advocate / Best Cabernet Sauvignon, AWOCA 2015.
GLOBAL PRESENCE 147 COUNTRIES 2 COMMERCIAL OFFICES 12 DISTRIBUTION SUBSIDIARIES
GLOBAL PRESENCE STRONG DISTRIBUTION NETWORK - Opening new distribution and commercial subsidiaries. - Sales force control. - Marketing strategies control. - Best route to market.
ARGENTINA: TRIVENTO SALES 2015 - US$ 55 million (+22% var.) - 2,600,000 cases (+19% var.) TRIVENTO RESERVE - In UK sales grew 200% and reached 265 thousand cases. - Trivento Malbec #1 in sales in UK.
CALIFORNIA: FETZER VINEYARDS SALES 2015 - US$ 108 millions (-2% var.) - 2,488,000 cases (-1,2% var.) BONTERRA - Leader in the organic wine category in USA. 445,600 cases sold and 20% growth. - 2015 Hot Brand by Impact magazine.
SUSTAINABILITY AND CSR Balances approach to economic growth, commitment to people and society and environmental respect and care. 6 fundamental pillars, each one contributing to achieve Viña Concha y Toro s vision: The Sustainability Strategy embedded in the business model gives a long-term projection to the various initiatives, defining clear and measurable objectives over time. ECONOMIC SOCIAL ENVIRONMENT
SUSTAINABILITY AND CSR - Carbon footprint measured since 2007. - Light weight boqles - 99% of total portfolio. - Water footprint measured since 2010. - Forest conservation program, 3,372 hectares certified. - Working with suppliers. - Responsible marketing eco-friendly labelling. - Carbon neutral subsidiaries in Sweden, Finland, Norway and Brazil: 2012. - Sunrise first carbon neutral product. - Geqing involved with communities. - Scholarships - The Eduardo Guilisasti Table Educational Foundation. - Wine Research Center: supporting exchange and technology transfer to help the wine sector grow. - Productive Alliances with small grape growers. - Strong employment growth - Seeking employees highly commited, training and career development. - Benefits & well-being. - Risk prevention.
SUSTAINABILITY AND CSR Certification by the Wines of Chile National Sustainability Code In 2014, we joined The Global Compact Compliance with the BSCI Standard Sustainability Report Reporting GRI-G4 Part of Dow Jones Sustainability Index Chile
CUTTING EDGE WINE RESEARCH AT THE SERVICE OF THE INDUSTRY OBJECTIVES To promote technology development, applied research in the areas of agriculture and enology, looking to impact both productivity and quality. Commitment in terms of corporate social responsibility. Seeking to generate positive impacts in terms of dissemination of knowledge and transfer of results and good practices.
RESEARCH OF EXCELLENCE - Experimental Wine Cellar: Industrial-scale experimental enological equipment. - Agricultural and Enological Laboratory: Analytical equipment including greater capacity in chemical, molecular biology and sensory areas. - Nursery: Annual production of 2 million plants. - Strategic alliances promoting joint research: Mercier Groupe and UC Davis. - Strategic Research Program across all the productive chain.
CORPORATE PRESENTATION 2016