I N V E S T O R P R E S E N TAT I O N. October 2017

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Nathaniel Greene
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1 I N V E S T O R P R E S E N TAT I O N October 2017

2 Forward Looking Statements This presentation contains forward-looking statements, that should be considered as good faith estimates. Such statements are subject to risks and uncertainties outside of Viña Concha y Toro s control that could cause Viña Concha y Toro s actual results to differ materially from those set forth in the forward-looking statements. These risks factors include but are not limited to the risks factors in Item 3 Key Information Risk Factors in the 20-F Annual Report, and in those described in Viña Concha y Toro s Financial Statements, Note 5 ( Gestión de Riesgos Financieros ). Forward-looking statements speak only as of the date they are delivered, Viña Concha y Toro undertake no obligation to publicly update or revise them considering developments which differ from those anticipated. 2

3 Consolidated sales volume Wine sales -million 9 liter cases

4 Consolidated sales Ch$ million 583, , , , ,

5 Operating income Ch$ million 120, % 11.2% 10.7% 12% 100,000 80,000 60, % 7.6% 63,010 71,022 70,185 10% 8% 6% 40,000 36,164 36,213 4% 20,000 2% Operating income Operating margin 0% 5

6 EBITDA Ch$ million 120, ,000 80, % 11.6% 14.3% 83, % 14.1% 93,432 92,701 16% 14% 12% 10% 60,000 40,000 20,000 53,852 54,973 8% 6% 4% 2% EBITDA EBITDA margin 0% 6

7 Net Income Ch$ million 120,000 10% 100,000 80, % 7.0% 7.4% 7.8% 7.3% 8% 6% 60,000 40,000 30,022 33,174 43,051 49,797 47,931 4% 20,000 2% Net income Net margin 0% 7

8 Financial Results M 2016 MM Ch$ 12M 2015 MM Ch$ Change % Total volume (MM cases) % Sales 658, , % Cost of sales (412,382) (391,505) 5.3% Gross Profit 246, , % Gross margin 37.4% 38.5% SG&A (182,475) (172,453) 5.8% SG&A / sales -27.7% -27.1% Operating Income 70,185 71, % Operating margin 10.7% 11.2% Non-operating Income (4,113) (4,141) -0.7% Net income 47,931 49, % 8

9 Operating profit by country Country Sales Operating MM 9L Cases MM Ch$ margin Chile , % Trivento , % Fetzer , % Total Holding , % 9

10 Operating profit by country Country Exports Domestic market CHILE: Operating margin 16.0% 1.6% % of total sales 61.7% 19.4% ARGENTINA: Operating margin 13.6% -20.1% % of total sales 6.0% 1.0% 10

11 Company Targets for the next 5 years SALES INCREASE OF 5.5% IN AVERAGE PER YEAR EXPANSION IN OPERATING MARGIN TO A RANGE OF 15.5% % BY

12 Strategy to achieve our 5-year targets 1. RESTRUCTURING PROCESS AND COST SAVINGS 2. NEW COMMERCIAL STRATEGY 3. SPECIAL FOCUS ON CASILLERO DEL DIABLO BRAND 4. FOCUS ON OTHER HIGH PERFORMING BRANDS 5. FOCUS ON KEY MARKETS TO SEEK HIGHER GROWTH 6. SEGMENT INNOVATIONS IN NON WINE CATEGORY 12

13 1. Restructuring process and cost savings Expected to be finished in 1H18 Cost Savings Operational Efficiency Commercial strategy - focus on core brands Estimated annual savings: Ch$12,000 million, approx. 1.5% to 2.0% of sales 13

14 2. New commercial strategy for CyT group Prepared to take opportunities where industry is growing Premium wine is driving the growth USA Growth rate by price segment

15 2. New commercial strategy for CyT group Premium wines: Seek strong growth in sales, focused in price segments >US$10 Non-Premium wines: Low single digit growth for categories of price <US$10 Current mix Chile Argentina USA Total Premium 37.1% 44.8% 78.0% 42.5% Non-Premium 62.9% 55.2% 22.0% 57.5% 15

16 3. Special focus on Casillero del Diablo brand 16

17 3. Special focus on Casillero del Diablo brand CURRENT PORTFOLIO UTRA PREMIUM L E Y E N D A F O B U S D SUPER PREMIUM R E S E R V A P R I V A D A F O B 6 0 U S D ULTRA PLUS D E V I L S C O L L E C T I O N F O B 4 5 U S D PREMIUM R E S E R V A F O B 3 5 U S D P R E M I U M : 9 3 % U S $ P P, S P, U P : 7 % U S $ 17

18 3. Special focus on Casillero del Diablo brand STRONG SALES GROWTH +USD 200 mm

19 3. Special focus on Casillero del Diablo brand STRONG SALES GROWTH 2016 v/s % 22% 29% 8% 19

20 3. Special focus on Casillero del Diablo brand As a key Brand for the Company, Casillero del Diablo must be the driver for VOLUME and VALUE 20

21 3. Special focus on Casillero del Diablo brand INNOVATION = GROWTH Highly competitive and complementary product portfolio, adding innovation to the brand 21

22 3. Special focus on Casillero del Diablo brand CURRENT PORTFOLIO UTRA PREMIUM L E Y E N D A F O B U S D SUPER PREMIUM R E S E R V A P R I V A D A F O B 6 0 U S D ULTRA PLUS D E V I L S C O L L E C T I O N F O B 4 5 U S D PREMIUM R E S E R V A F O B 3 5 U S D 22

23 3. Special focus on Casillero del Diablo brand LARGEST PREMIUM WINE RANGE IN THE WORLD 23

24 3. Special focus on Casillero del Diablo brand Red Blend New addition to the Global Range in Reserva Line 24

25 3. Special focus on Casillero del Diablo brand PACKAGING Different from Reserva Modern look and more into the Red Blend mood 25

26 3. Special focus on Casillero del Diablo brand CURRENT PORTFOLIO UTRA PREMIUM L E Y E N D A F O B U S D SUPER PREMIUM R E S E R V A P R I V A D A F O B 6 0 U S D ULTRA PLUS D E V I L S C O L L E C T I O N F O B 4 5 U S D PREMIUM R E S E R V A F O B 3 5 U S D 26

27 3. Special focus on Casillero del Diablo brand RED WHITE BRUT 27

28 3. Special focus on Casillero del Diablo brand PRICE SEGMENT OPPORTUNITY 35 USD 45 USD 60 USD 28

29 3. Special focus on Casillero del Diablo brand CURRENT PORTFOLIO UTRA PREMIUM L E Y E N D A F O B U S D SUPER PREMIUM R E S E R V A P R I V A D A F O B 6 0 U S D ULTRA PLUS D E V I L S C O L L E C T I O N F O B 4 5 U S D PREMIUM R E S E R V A F O B 3 5 U S D 29

30 3. Special focus on Casillero del Diablo brand NEW RESERVA PRIVADA PORTFOLIO CABERNET SAUVIGNON CARMENERE SAUVIGNON BLANC CHARDONNAY 30

31 INNOVATIONS 3. Special focus on Casillero del Diablo brand NEW BRAND PORTFOLIO Incremental volume Show a fresh and modern brand Stand out from the competition UTRA PREMIUM SUPER PREMIUM ULTRA PLUS PREMIUM 31

32 3. Special focus on Casillero del Diablo brand 32

160 0.0 140 0.0 120 0.0 100 0.0 800.0 600.0 400.0 200.0-4.

33 Focus on high-performing brands - Cono Sur Bicicleta Th 9L cases CAGR: + 13% 1,116 1,263 1, H16 1H17 33

34 4. Focus on high-performing brands - Cono Sur Bicicleta Target: Price increase from US$26 to US$30 in 3 years. 34

35 Focus on high-performing brands - Trivento Reserve Th 9L cases 636 CAGR +64% H16 1H17 35

36 4. Focus on high-performing brands - Trivento Reserve KEY MARKETS UK: #1 Malbec Growing at 32% USA: Hot brand 36

37 4. Focus on high-performing brands - Bonterra GLOBAL LEADER IN ORGANIC WINE Th 9L cases CAGR +18% H16 1H17 37

900 00.0 800 00.0 700 00.0 600 00.0 500 00.

38 Focus on high-performing brands Stories SUCCESSFUL INNOVATION IN THE AMERICAN MARKET Th 9L cases 83,602 CAGR +549% 47,857 33,573 15,957 1, H16 1H17 38

39 5. Focus on key markets to seek higher growth CANADA USA UK MEXICO CHINA UAE (Arab Emirates) JAPAN BRAZIL 39

40 6. Segment innovations in non-wine category Looking for oportunities in non-wine categories Target: 5% of sales; operating margin of Ch$ 3,500 million 40

41 Strategy to achieve our 5-year targets We see in our vertically integrated business model, from the vineyards to the commercial network, a major competitive advantage in order to achieve our targets. 41

42 Real Estate business In addition, the company is entering in the Real Estate business, focused on maximizing the profitability of its non-core properties. 42

43 Real Estate business We have identified 400 hectares of non-core properties with high potential for real estate projects. In a first stage, we have targeted 74 hectares to develop in the next 10 to 15 years. 43

Real Estate business: Fundo Tocornal N Location: Puente Alto, RM Land area: 43.57 Ha.

44 Real Estate business: Fundo Tocornal N Location: Puente Alto, RM Land area: Ha. Current state: feasibility study (18 months) TOCORNAL Real Estate project: houses Project timing: 11 years Est. land market value w/feasibility: UF 1.8/m2 Estimated project market value*: UF 4.5 /m2 *Considers value gains UF + 2% annual 44

45 Real Estate business: Pirque Ross N Location: Pirque, RM Land area: 30 Ha. Current state: sanitary feasibility (24 months) Real Estate project: houses Project timing: 7 years URBANO Est. land market value w/feasibility: UF 1.8/m2 Estimated project market value*: UF 4.0 /m2 PIRQUE ROSS *Considers value gains UF + 2% annual 45

Real Estate business: Industria Corchera (50% owned) Location: La Cisterna, RM Land area: 10,070 m2 Current state: project draft approval (6 months) Real Estate

46 Real Estate business: Industria Corchera (50% owned) Location: La Cisterna, RM Land area: 10,070 m2 Current state: project draft approval (6 months) Real Estate project: apartments Project timing: 9 years Est. land market value w/feasibility: UF 19/m2 Estimated project market value*: UF 48.5/m2 *Considers value gains UF + 2% annual 46

47 Divestment of facilities in Chile In line with our restructuring program, regarding logistics optimization, we expect to divest certain distribution facilities in the next 12 to 24 months. 47

48 Divestment of facilities in Chile Sucursales Superficie Terreno Superficie Construccion Precio (UF/m2 terreno) Valorización (UF) Punta Arenas ,5 UF Curico ,0 UF Antofagasta ,0 UF Coquimbo ,0 UF Osorno ,0 UF Concepcion ,0 UF San Antonio ,0 UF TOTAL UF

49 Real Estate business and divestments - Summary Land area (hectares) Est. value UF/m2 Total value Tocornal: UF 1,957,500 Pirque Ross: UF 1,200,000 Corchera (50% CyT) UF 247,000 Divestments UF 200,000 Estimated total profit before tax USD equivalent (USD = CLP625) UF 3,604,500 MMUSD

50 I N V E S T O R P R E S E N TAT I O N October 2017

VIÑA CONCHA Y TORO ANNOUNCES ITS CONSOLIDATED FOURTH QUARTER 2016 RESULTS

VIÑA CONCHA Y TORO ANNOUNCES ITS CONSOLIDATED FOURTH QUARTER 2016 RESULTS Santiago, Chile, March 31th, 2017 - Viña Concha y Toro S.A. ( The Company or Concha y Toro ) (NYSE: VCO, IPSA: Conchatoro), global