Viña Concha y Toro S A : CONSOLIDATED RESULTS 3Q2022

Press Release:

3Q22

PRESS RELEASE

3Q22

INDEX

CHAPTER 01

Highlights

CHAPTER 02

CEO's Comments

CHAPTER 03

3Q22 Results

CHAPTER 04

9M22 Results

CHAPTER 05

Income Statement

CHAPTER 06

Statement of Financial Position

PRESS RELEASE

3Q22

Press Release (*)

Viña Concha y Toro

1. Consolidated figures of the following analysis are expressed in Chilean pesos, in accordance with reporting standards of the Financial Markets Commission of Chile. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. .

Investor Presentation

Monday, November 7, 11:00 hrs.

Contact:

Daniela Lama

Head of Investor Relations [e-mail]

About Viña Concha y Toro

Founded in 1883, Viña Concha y Toro is the leading Latin American wine maker, and one of the world's largest wine companies. It holds around 12,000 hectares of vineyards in Chile, Argentina, and United States, and its wine portfolio includes iconic brands, such as Don Melchor and Almaviva (Joint Venture 50% - 50% with Baron Philippe de Rothschild), its flagship brand Casillero del Diablo, Trivento from Argentina, and Bonterra brands from California.

Forward Looking Statements

This press release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Company and certain plans and objectives of the Company with respect to these items Forward-looking statements are declaration of intentions, beliefs or expectations of Viña Concha y Toro and its administration with respect to future results of the Company. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that occur in the future .

PRESS RELEASE

3Q22

CHAPTER 01

Highlights

3Q22

• Consolidated revenue up 9.4% to Ch$223,656 million.
• Principal + Invest mix represents 49.2% of total sales of the company, up 90 bp.
• Gross profit up 7.9% to Ch$89,479 million. Gross margin reached 40.0% (down 60 bp).
• EBITDA down 22.5% to Ch$33,851 million. EBITDA margin down 620 bp to 15.1%.
• Adjust EBITDA (which excludes other non-recurring extraordinary income in 3Q21) down 10.3%, with an EBITDA margin down 330 bp.
• Net profit down 16.8% to Ch$25,225 million. Net margin down 360 bp to 11.3%.

9M22

• Consolidated revenue up 7.9% to Ch$623,892 million.
• Principal + Invest mix represents 49.4% of total sales of the company, equaling to the same period last year.
• Gross profit up 8.7% to Ch$246,490 million. Gross margin up 30 bp to 39.5%.
• EBITDA down 15.2% to Ch$97,760 million. EBITDA margin down 430 bp to 15.7%.
• Adjust EBITDA (which excludes other non-recurring extraordinary income in 9M21 y 9M22) down 10.5%, with an EBITDA margin down 320 bp.
• Net profit down 2.9% to Ch$66,104 million. Net margin down 120 bp to 10.6%.

PRESS RELEASE

3Q22

CHAPTER 02

CEO's Comments

In the third quarter, we continued to face a highly complex global production and macroeconomic situation, marked by strong inflationary pressures that have resulted in significant adjustments in our main markets, with rises in costs and logistics expenses in an extraordinary way.

Despite this scenario, we have implemented price increases in the majority of our markets without losing share for priority products, demonstrating the strength of our brands. This is key to dealing with the new cost reality, and attaining sustainable and profitable growth for the company. Along the same lines, we can also highlight the improved sales mix; the performance of the Super and Ultra Premium wine segment, which continued to achieve solid double-digit growth; and the excellent results of our joint venture Almaviva, which was very well received again this year on the Place de Bordeaux.

In the third quarter of this year, we also observed a normalization of maritime shipments (without downward adjustments in rates), and a recovery of sales volumes in some key markets, especially in Asia, Central America, the Caribbean and Canada.

Consolidated sales grew by 9.4% in the quarter, reaching Ch$223,656 million, due to the price increase/average sales mix, a favorable exchange rate, and lower sales volumes. The 4.7% decrease in sales volumes is driven by the adjustment that has occurred in key markets, against a backdrop of price increases and high volumes sold in the previous year, together with a reduction in inventories (by key distributors) in a more restrictive financial environment with higher interest rates.

On an operational level, various initiatives implemented by the company and effective cost management have enabled us to increase our gross profit (+7.9%) and maintain a gross margin of around 40%. However, higher selling, general, and administrative expenses (SG&A) as a result of increases in personnel costs, logistics costs, and investment in our brands, together with lower sales volumes, have led to a decrease in the company's operating profit and operating margin.

In the 9 months of the year, consolidated sales grew 7.9% to Ch$623,892 million. This result explains the price increases that the company has made in the different markets (Export Markets, Chile and USA) during the year, and a favorable exchange rate effect, partially offset by an 8.0% decrease in the consolidated volume. We highlight in this period, the maintenance of the Principal and Invest mix, at 49.4% of sales.

Although 2022 has been a challenging year that has required us to adapt to the new global reality, we have not lost our long-term vision, and have continued to make significant investments in improving the efficiency of our processes, launching new products, and continuing to build our brands.