Viña Concha y Toro S A : CONSOLIDATED RESULTS 4Q2022

Press Release:

4Q22

PRESS RELEASE

4Q22

INDEX

CHAPTER 01

Highlights

CHAPTER 02

CEO's Comments

CHAPTER 03

4Q22 Results

CHAPTER 04

2022 Results

CHAPTER 05

Income Statement

CHAPTER 06

Statement of Financial Position

PRESS RELEASE

4Q22

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

Tuesday, March 14, 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

4Q22

CHAPTER 01

Highlights

4Q22

• Consolidated sales down 4.5% QoQ to Ch$246,690 million.
• Principal and Invest mix account for 49.2% of the company's total sales, down 60 bps QoQ.
• Gross profit down 11.9% QoQ to Ch$95,231 million. The gross margin was 38.6% (down 330 bps).
• EBITDA down 23.5% QoQ to Ch$37,467 million. The EBITDA margin was down 380 bps to 15.2%.
• Net income attributable to shareholders down 31.3% QoQ to Ch$21,109 million. The net margin was 8.6% (down 330 bps).

2022

• Consolidated sales up 4.0% to Ch$870,582 million YoY.
• Principal and Invest mix account for 48.7% of the company's total sales, down 60 bps compared to the previous year.
• Gross profit up 2.0% YoY to Ch$341,721 million. The gross margin was down 80 bps to 39.3%.
• EBITDA down 17.7% YoY to Ch$135,227 million. The EBITDA margin was down 410 bps to 15.5%.
• Adjusted EBITDA (which excludes other extraordinary revenue items in 2021 and 2022) down 14.9% YoY, adjusted EBITDA margin down 350 bps.
• Net income attributable to shareholders down 11.7% YoY to Ch$87,213 million. The net margin was 10.0% (down 180 bps).

PRESS RELEASE

4Q22

CHAPTER 02

CEO's Comments

During 2022, we faced a highly complex global business environment, marked by inflationary pressures and economic deceleration that resulted in significant cost increases and changes in buying patterns among our main markets.

This challenging scenario has required us to make swift adjustments in various business areas to adapt to the new production, commercial, logistics, and financial environment. On a commercial level, we have been able to increase prices in most of our markets. In terms of operations and logistics, we have strengthened cost management, and have taken steps to accelerate continuous improvement and achieve new efficiencies with a more streamlined operation. Meanwhile, the company's financial strength has enabled us to make investments in working capital in order to mitigate the impact of the logistics crisis, and ensure the availability of products and continuity of business with our customers. The higher exchange rate, reflecting the riskier global outlook, had a positive impact on our company's sales and profitability.

In 2022, consolidated sales grew by 4.0% as a result of price increases that the company has implemented in various markets during the year and a favorable exchange rate, partially offset by a 9.6% reduction in consolidated sales volumes. Operating profit reached Ch$104,873 million in the year, a decrease of 21.1% compared to 2021. This was primarily due to extraordinary market conditions impacting raw materials costs, logistics expenses, and shipping costs, which should not be repeated with the same intensity in 2023 in view of the trends that have emerged in recent months.

On a quarterly basis, in 4Q22 we continued to observe a challenging environment that impacted on consumption. Consolidated sales decreased by 4.5% in the quarter, with lower volumes sold in our main markets. The gross margin was 38.6%, a decrease of 330 bps. Although we reduced selling, general, and administrative expenses in the quarter, lower sales volumes together with higher costs and rates had an impact on the operating profit and operating margin.

2022 is the final year of the five-year strategy that we launched in 2018. This has been a period of profound transformation and premiumization of our brand portfolio, during which we have laid the foundations for future growth and competitiveness. Our main objective for the next three years is to guide the company toward resuming strong sales growth, both in terms of volume and value, without losing our clear focus on continuing the premiumization of our wine portfolio.