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PRESENTATION TUTORIAL

Three Differentiation Pillars

Viña Concha y Toro

July, 2015

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Viña Concha y Toro

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Today Concha y Toro has a leading position in the wine industry. It is a truly global wine player with productive operations in Chile, Argentina and the US.

With sales in 145 countries and 11 distribution subsidiaries, the company started creating fully owned distribution sales offices in 2001 in the UK. After 10 years, we have continued to be closer to our consumers.

o 4th largest wine company by volume with sales of US$ 1 billion and 33.2

million cases in 2014. o 2nd largest in terms of own vineyards planted o Strong recognitions to the brand and company:

World’s Most Powerful Wine Brand, And recently: International Drinks Company, nominated by The

Drinks Business.

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Viña Concha y Toro restates its commitment to excellence and presents its three Differentiation Pillars.

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1: Excellence in Production

Concha y Toro is the most vertically integrated wine company participating from

the production of plants, to the development of vineyard plantations to the

crushing, vinification, bottling and distribution of our wines.

This allows us to have quality control throughout all the production chain. We also

work with third party growers; we have an area in charge of this operation.

Through long-term and annual renewals, we know their vineyards and the grapes

we buy. Our professional teams give technical advice for their vineyard

management, assuring the quality we need. Same standards as the ones Concha y

Toro uses on its own vineyards.

We have international quality standards, being HACCP (Hazard Analysis and

Critical Control Points, a systematic control method for biological or chemical

contamination in the production process) IFS Food (German) and BRC (UK) the

most relevant for our clients. Recently we have also added Food Defense. Both IFS

and BRC are annual certifications and all of our plants: Pirque, Lo Espejo, Vespucio

and the Lontue Cellar are certified (all bulk wine is dispatched from this cellar). (IFS

and BRC, respond better to the needs of our clients)

Internally, the Corporate Quality Area does the internal audits: quality audits

throughout the company. Improvements, analysis to correct.

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Traceability is a regulatory requirement in most countries and for IFS and BRC. What marks the difference is how far you can go. And in Concha y Toro we can go to the beginning. With the lot number we can have information on the dry goods (labels, cork, bottle), base wine (harvest year, cellar, own or third party grapes, enological raw materials, vineyard), and information of related orders and shipments.

We are open to continuous improvement, totally obsessed with quality.

Traceability in the vineyard. We have all the information related to the management of our vineyards. Always looking for the optimum development of the vineyards and the health and quality of grapes, the company has established programs of soil fertilization. Pesticides and fungicides are also used in the context of our strategy for integrated management of pests and diseases, which seeks to exercise a more effective control, with the less environmental impact possible. We are certificated by the Sustainability Code of Wines of Chile (green area) and APL2.

If there is a claim, it is sent to the corresponding area, analyzed, correction actions taken, assuring the incident won’t happen again. Learning process for improvement.

The Claim index calculated as Claimed cases/ Dispatched cases is 0.38% our target is <0.3%.

In regards to the certification audits for BRC we have grade A (maximum for advised certification and IFS we have grade Higher.

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Viña Concha y Toro

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2. Sustainability Strategy

Sustainability is not new at Concha y Toro: Integrated vineyard management, the efficient use of natural resources and using dripping irrigation in our vineyards are practices long time adopted by the company.

Promoting well being and development of our people and their families and communities, while being a successful company in terms of business, is part of Concha y Toro’s long history.

However, the company as a global player acknowledges the changes in society. Consumers are more informed; our clients need more information and certifications of safety of products. Words such as global warming, carbon emissions, green products and sustainability are increasingly more important.

We understood the need to respond to the new times. And in 2008 the “Sustainable Development” department was created to lead the projects in this area, and to respond to the new requirement of the markets.

We see sustainability as an ongoing process in which we have already taken important steps.

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During 2012, the company developed its Strategic Plan for Sustainability, giving long-term projection to the topics the winery was already working in. We worked for more than one year with an external consultant Ernst & Young, with the participation of all areas of the company and also considering the opinions of different stakeholders.

All this opinions were brought together in the development of the strategic framework.

Our Sustainability Strategy is based on 6 pillars that we consider crucial to the future management: Product, Supply Chain, Customers, People, Society, and Environment. As you see, we have balanced the 3 fundamental aspects of a sustainable development: the economic aspect, society and environment.

The pillars Product, Supply Chain and Customers ensure continuous growth and global leadership. The pillars People and Society aim to create shared value for our stakeholders and environment, while turning the winery into a leader in environmental practices. We work in each one of these pillars, with objectives and goals.

To make sure that we see progress on our strategy, the company formed a Sustainability Executive Committee with the executives who lead the pillars and the CEO and the area of Sustainable Development acting as the general coordinator.

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Here I will comment on some achievements that are important - The company’s long term commitment is reflected in various initiatives to reduce its environmental impact.

Concha y Toro has been measuring its Carbon Footprint since 2007, including all 3 scopes. With the external auditor verification annually. (Reporting to Carbon Disclosure Project [CDP]).

Our main conclusion is that shipping and glass are the factors that contribute the most to the carbon footprint.

We saw the importance of reducing GHG emissions from transport (exports). These emissions are key in the wine sector and, in the case of Concha y Toro, it is an important variable to consider, due to the percentage of production that is exported.

We started working in the light weight bottle program with Cristalerías Chile and the first lightweight eco- glass bottles were shipped to the UK market in October 2009. (small shipment)

2010 marked the massive introduction of light weight bottles. Lightweight or eco glass bottles have 25% recycled glass and weight 13% less than a regular glass bottle.

In 2012, 96% of the total portfolio used light format. Concha y Toro has reduced the consumption of glass in 40,000 tons between 2010 and 2014.

Moving a step further, we started working with our packaging suppliers in order to support them and bring them closer to their sustainability indicators.

In 2011 began the program "Suppliers, Sustainability and Carbon Footprint" and in 2012 these suppliers were able to measure their carbon footprint.

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With these data we are creating a local database with the real emission factor for the Chilean wine industry. The company was able to include the real emission factors on our own carbon footprint measurement for 2012, contributing to a 28% reduction in 2012 as compared to 2011.

Together with our most important packaging suppliers we have committed to a 15% reduction of CO2 emissions for critical inputs to 2020.

Regarding Water footprint. Concha y Toro was the first winery to estimate the water footprint together with The Water Footprint Network, an international organization that promotes sustainable management in the use of water.

Results are very positive; to produce a glass of wine, the winery uses 53% less water than the theoretical estimate of the industry. This is mainly because the company is very efficient, as almost 100% of our own vineyards have drip irrigation. (Measurement considers water from rain, dwells, and surface).

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In terms of Conservation we have the Native Forest Conservation Program. Together with the large number of planted vineyards, the company also manages unplanted land and forests.

The company has a program with CONAF (National Forest Corporation) to protect and commit to the conservation of over 3,272 hectares of Chilean native forest planted in harmony with our vines. In addition to their live-giving capture of CO2 daily, these trees contribute to the diversity of ecosystems and soils.

To date, the winery has conducted biodiversity inventories in 100% of that land, allowing us to formulate special conservation plans for every area in order to recover sectors with signs of degradation.

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The company believes that its main asset is the people that work in Concha y Toro.

The winery values and trusts its employees being them a key factor in the growth and success of the company.

Concha y Toro values cultural integration, knowledge of the market and enriching experiences.

Our Human Resources department takes care of a close relationship with its employees, giving them space to grow, to innovate and develop. Three aspects are key:

1. Talent management: Here Training courses and programs are the bases for

professional development. Since 2013, training is complemented with a new Knowledge Center, which is an internal training school for employees, so they can develop their career in the company.

2. Occupational health and safety

3. And promoting well- being, better quality of life through numerous

programs and benefits.

Regarding labor unions, in Chile there are 10 labor unions representing 31% of total workforce in Chile. There is freedom of association and freedom to organize trade unions.

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Numerous certifications confirm our social and environmental commitment:

The Wines of Chile National Sustainability Code: certified in 3 areas green (agriculture vineyards), red (cellars) and orange (people, ethics and communities).

Also 22% of the vineyards of the third-party growers that supply grapes to Concha y Toro were also audited.

We also comply with BSCI, which verifies workers conditions and promotes social responsibility in the company culture

In 2014 we adhered to the Global Compact, committed with the 10 fundamental principles including Human rights, labor, Environment and anti-corruption.

In terms of transparency, we publish our Sustainability Report under the GRI (Global Reporting initiative). This methodology is used by most large corporations. With the same indicators, it is possible to compare, and manage the company’s strategy. Level 4, the most updated version, has improvements at corporate governance, and more indicators related to the environment.

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3. The Center for Research and Innovation

The new Center for Research and Innovation was created with a strong emphasis on the expansion and dissemination of knowledge from the perspective of Social Responsibility.

The objective of the Center is to do applied research responding to the real challenges our company and our industry is facing. The aim is to impact both productivity and quality within the industry.

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The CRI has brought together a team of professionals and academics to lead and execute our R&D and innovation program.

The Center has :

o An Experimental Wine Cellar, with all equipments tanks all on a small scale to do the vinifications of the projects.

o An Agriculture and Oenology Lab, with the analytical equipment for chemical analysis, molecular biology and sensory.

o A Nursery, with a production of 2 million plants per year.

We also count with local and international strategic partnerships for joint research, such as Mercier Group, with whom we are working since the beginning of the Nursery in 2001.

The purpose of this alliance is to have a reference for the technical production of grafted plants. This strategy has given us access to top quality clones, which are the base for Concha y Toro’s own production.

And the strategic partnership with UC Davis for joint research. This allows us to do research with international leading researchers.

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The Center has 5 lines of Research, which cover the whole production chain:

1. Genetic material: Example of research project: “Productive and qualitative evaluation of Cabernet Sauvignon clonal material in the Cauquenes area, for super premium and premium production”. We are are evaluating and analyzing the vinification of different clones (337, 169, 191 and massal selection), in order to determine which one has better results in that terroir.

2. Viticulture: “Leaf removal strategies and cluster sunlight protection techniques for

improving red wine (Cabernet-Sauvignon) quality”. “Fungus research and control of Grapevine Trunk Disease in Chile”

3. Enological processes: Instrumentation and automatic control in winemaking

process.

4. Product design: Sensory and consumer research applied for product development.

5. Market: Study of the ecosystem and the environment to identify and exploit business opportunities and positive externalities for society.

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Meeting point: growers, industry and academia. The company has taken a serious commitment to social responsibility and

community relations. Counting with an Extension Center, the big aim is to generate positive impacts in Chilean winemaking through the dissemination and transfer of results, practices and new technologies.

We have a space to held conferences, workshops and training. Our Extension Center should be a meeting point for growers, industry professionals and academics.

Through our network with universities and institutions we should promote internships and exchanges for the benefit of our internal people and also to bring talented students from abroad.

We aim to generate a positive impact on our business in our community and particularly grape growers.

There are already some initiatives in place that support small grape growers. In particular growers of País grape, who are more vulnerable. The company launched a “social innovation” with its new product Frontera Specialties, including País and Pedro Jimenez varieties, in order to preserve rural traditions and to create a commercial channel for these grapes.

Also among the projects already underway, the company has a three-year program that involves 18 small grape growers of País grape, from the area of San Javier and Cauquenes (Maule valley). This initiative offers professional advice seeking gains in productivity of their vineyards, among other benefits.

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