Concha y Toro

November 21, 2013

Presented by:JG Denise

Pablo MoralesDiana Peng

Margaret Siebert

Founded by Don Melchor de Santiago Concha y Toro

and his wife in 1883 Located in Chile Grapes from the Bordeaux region in France Incorporated as a stock company in 1923 Started exporting wine in 1933 Present in over 130 countries today 1994-1st winery in the world to trade in the NYSE Partnered with U.S. Importer Banfi Vintners

Incorporated advanced technology Started using the French oak barriques

Company History

Chosen as the most admired wine brand in the

world 8% average annual growth rate since 2002 Concha y Toro bought the Brown-Forman

Californian portfolio of wines in 2011 Current ownership -Chilean nobility and

aristocracy

More Facts

Total Chile Argentina USA

Market Cap (US$MM) March 2013

1524

2012 sales (US$MM)

928 765 53 110

2012 Volume (Cases MM)

30.2 26.0 1.8 2.5

Concha Y Toro

Volume Breakdown

Chile Argentina USA

Domestic-Volume (cases MM)

6.9 0.6 2.1

Rank #1 - #10

Market Share 29.6% - 1.1%

Export-Volume (cases MM)

19.0 1.2 0.4

Rank #1 #4 #6

Market Share 35.4% 6% 2.0%

Sales 2012

Wine Portfolio – 13 Brands

Single Variety Brands Don Melchor (Cabernet Sauvignon) Gravas del Maipo (Syrah) Carmin de Peumo, Terrunyo (Carmenere) Amelia – Chardonnay

Complete Wine Lines Gran Reserva Serie Riberias Trio Casillero del Diablo Sunrise Sendero Frontera

Product Mix

Valleys

3-5 Vineyards Climate conditions Soil characteristics

Cellars Vinification Aging Bottling

Location

Concha Y Toro

Concha Y Toro

Concha Y Toro

Income statement 2006 2012 growthSales (US$ million) 468.6 856.0 83%Exports (US$ million) 299.5 559.3 87%% exports 63.9% 65.3% Export volume (1000 cases) 12,927 20,549 59%EBITDA (US$ million) 77.1 102.0 32%EBITDA as % sales 16.4% 11.9% -28%Net income (US$ million) 35.1 57.0 63%EPS (US$) 0.04 0.08 79%stock value (US$) 1.52 1.77 17% assume exchange rate of 1 Chilean peso = .0019 UDS 0.0019

Broad portfolio of wines to participate in all price segments

and respond to consumer trends. Promote the growth of winery subsidiaries: growing

participation, new distribution and new consumers through innovation.

Acquisition of Fetzer Vineyards in the United States in 2011. Solid domestic and international distribution with long-term

relationships. Taken large steps towards the integration of distribution with

the creation of own offices in many countries. Investment plan that has been sustained over time focused

largely on strengthening the company’s production capacity.

Strategy: Grow Market Share

Expanded the number of own vineyards to ensure the

production of the highest-quality grapes (second largest winery in the world in terms of planted hectares) Joint venture with Baron Philippe de Rothschild which has enabled Chilean wine to reach the highest international circuits.

Investments in cellars have been directed to locate them strategically in all the vine-growing valleys and have the suitable technology for winemaking and keeping of the grape in its domain of origin.

Sustainable development like the estimate of the carbon footprint, soon to be followed by the water footprint, the development of light bottles to mitigate the impact of transportation, and energy audits of its cellars.

Strategy: Grow Brand Equity