06/04/2026 Transcripción Presentación de Resultados 4Q25 Download

Speakers

→ Eduardo Guilisasti - CEO

→ Osvaldo Solar - CFO

→ Daniela Lama - Head of IR

Moderator

Daniela Lama

→ Good morning, everyone. My name is Daniela the press release published on Monday, March 16th.

Lama, Head of Investor Relations of Viña Concha y If you have any additional questions, please feel free

Toro. Thank you for joining us for this presentation of to contact me directly. results corresponding to the year 2025.

At the end of today's presentation, we will open a

Before we begin, please note that on the right side of space to answer the questions you send us through your screen you may select the language in which you the platform's chat. wish to listen. The presentation we will review today is already available on our website in Spanish and I will now leave you with Eduardo Guilisasti.

English. (The presentation begins)

First, let me read a brief disclaimer. This presentation Speaker: Eduardo Guilisasti contains forward-looking statements based on → Good morning, everyone. It is a pleasure to have the information available at this time and should be this opportunity to share our 2025 results with you. considered as made in good faith. Such statements As you can see, in terms of sales, referring specifically are subject to risks and uncertainties beyond the to wine, we achieved value growth of 2.8%, and company’s control, which could cause the actual Viña consolidating the entire company's operation, a 1.7%

Concha y Toro results to differ materially from those growth. We continue to advance in premiumization, indicated in these statements. reaching 57.4% of the total wine portfolio. Regarding gross profit we also increased 0.9%. Our gross margin

Today, we will take a closer look at the results for the was 38.6%. EBITDA was 3.1% lower than last year, year 2025. We will begin with an analysis of the year's and the EBITDA margin is 15,7%. performance with Eduardo Guilisasti, CEO of Viña

Concha y Toro. Then we will conclude with the financial Looking at these numbers, I would like to share some results for the fourth quarter and the accumulated reflections, because to some extent, I believe that period with Osvaldo Solar, the company's CFO. either I have not been able to convey everything that

For a more detailed quarterly analysis, please refer to has happened in these recent years, or perhaps the noitatneserp stluser

5202 full picture of the entire process the company has year 2025, because back then we envisioned that undertaken has not been fully understood. I'm going by 2025, the industry would be recovering. What to take a little more time on this, and on the rest I will happened in 2023? We fell sharply as a result of all go faster, because I believe this needs to be very these adjustments, as a result of the brand reduction clearly understood by all of you, as you are crucial we made, etc., In 2024, we grew sharply. And in when informing our investors about the company's 2025, which we are discussing now, the industry did performance. not grow. On the contrary, the decline deepened. And this led us not to become complacent and to take

I'm taking us back to the year 2016. Back then, the measures. And, in the second half of the year 2025, company wasn't growing, and we decided to undergo the company began to make what I would venture to a very profound transformation, which we called call the most profound of all the transformations. We premiumization of the company. To be very clear, had the most profound transformations regarding the until 2016 we had opened doors to sell absolutely number of brands, our commercial strategy, adjusting all of our brands, meeting every requirement from our various production units, we had adjustments in supermarkets and the strategic clients we had. We both our oenology and agricultural areas, also in the had a very, very large portfolio of brands. I have no administrative area, in our centers of excellence, problem sharing with you that during the last decade, because we saw that the situation had deepened. Far specifically when starting 2016 we had a total of 290 from us believing that by 2025 the industry would brands. Just imagine what that means. From that be on its way to normalizing, that didn't happen. The moment, we began the process of premiumization, company always—and I want to insist on this—always as I mentioned, with a very clear goal: to leverage tries, sometimes we succeed, sometimes we don't, the potential of the company's higher-value brands but we always try to get ahead of what's coming and to abandon —and that is the exact word, to and take the necessary measures. That's why 2025 abandon—those brands and that specific segment we wasn't as powerful as it should have been. call 'others'. These are commercial brands, private labels for large retailers, etc., which are low-margin Along with that, there is another factor that allows us and inefficient for our company. We were willing to to look to the future with great optimism, and I believe lose or sacrifice volume, in order to grow in the other this is the key for you to truly understand our business areas. So, when you look at our sales growth, you also model, and I would be happy to elaborate on this on have to see it through that lens. Under that strategy, a further occasion, the key factor is that we continue the company had a truly spectacular performance doing agricultural investment, we keep investing, up until the year 2021, when we had an operating and why? Because we have strong belief in the wine result close to CLP$120,000 million because of the industry and we strongly believe in the positioning pandemic situation. Then in 2022 we began to notice that Concha y Toro has with its brands and the a decline, a deceleration. This is important because global distribution structure it has. And that is going due to the global reach of our company we have to weigh very positively in the upcoming complete significant market intelligence and we know exactly reconfiguration of the wine industry. So, 2025 was what is happening in the wine industry, probably also a year of very significant adjustment. better than most companies, precisely because of the level of penetration we have in different markets. I wanted to make this parenthesis before continuing with the presentation, to show you very clearly that

In September of 2022, we began a process—and I there are three major milestones for the company: one would venture to say we were the first wine company, in 2016, when something was detected, a process or perhaps the first in the alcoholic beverage begins in 2017 and is implemented starting 2018; world, to see this coming—and we started making one in 2022, in the last quarter of 2022, where we adjustments. And when I talk about adjustments, it's envisioned a difficult scenario and we began adjusting not just about reducing the amount of workers, it's the company again to that reality; and in 2025, in the also about adjusting our production facilities. It's also second half, when we did the same thing again, and about modifying the portfolio. It's also about changing with increasing depth. And we feel very confident the commercial strategy. I mean, it was a complete about what this will mean for the future. overhaul that the company began to undertake.

We carried this out with a clear goal

to grow by the Here we are going to focus on 2025’s performance, noitatneserp stluser

5202 and Osvaldo, as announced by Daniela, will discuss and 4.3% in Premium & Superior. Compare that to the 4Q results and the non-operational results. the figures we saw earlier of a total industry decline of 2.5%, and you'll see how significant this is. In the

In the performance analysis here’s a comment I Varietal & Lower segment, we grew 0.9%. Then made in the press release, which reads: the strength focusing on Premium & Superior, same as before, of our brand portfolio, the efficiency of our business 4.3% growth. model, and our extensive international distribution network allowed us to achieve a positive performance Regarding markets, we need to do a brief analysis. in sales value in a super challenging environment. To There were very important things happening in demonstrate this in a very graphic way, here is this three main markets. First, the United States. The US chart that shows what Concha y Toro was able to do suffered due to the tariff measures implemented by in 2024 thanks to the adjustments we began in 2022. the government, I would call it a convulsion, a major internal convulsion, because many of the large alcohol

We can see how Concha y Toro, compared to several producers in the US had Canada as their primary export competitors, achieved the highest figure, with 14.5% market. When that export market closed, they had to sales growth. Exchange rates and other factors are place a large part of their production in the domestic to be considered, but to some extent they affect market, lowering prices, completely distorting the everyone similarly. And then for 2025, compared market, and strongly impacting the distribution chain. to 2024, where we made that adjustment again to And also, there is a distributor practically exiting the prepare from 2026 to 2028, we see that Concha y market, RNDC, etc. It's a real revolution, a convulsion

Toro continues to grow despite all the negative figures that has occurred internally. And then there is the Japan you see in the industry. So, achieving 1.7% growth market, where you can analyze the figures yourselves when the average is a decline from 2.5% has to be to see how with the exchange rates situation in Japan valued in its full magnitude. all the lower segments have been strongly affected in recent years. This has led to certain brands practically

In terms of volume, for wines specifically, we were disappearing. Something similar is happening in the practically flat. For me, given the scenario we South Korea market, and in the China market, which experienced in 2025, which was worse than expected, are declining sharply. So, there are external factors

I'll say it openly, it is a success to have achieved this that one cannot control, like exchange rates, which flat volume, and especially considering what we will affect the destination market, and what happened mention later. In the fourth quarter we were down with tariffs, etc., causing very strong disruptions. But

2.6% for the reasons I already explained, combined we have to focus on the positive view: we have an with a very specific factor that was imposed by important 1.3% growth in UK in this scenario, in Chile the United States, the new tariffs, which were a 2.7%, in the US a decline of 1.2% (which was very revolution, so to speak, a very strong reconfiguration affected by what happened in the last quarter, which among distributors that disrupted the entire alcohol I have somewhat explained), Brazil has been doing industry, absolutely all of it. We could go deeper into excellently well with 15.2% growth, and Mexico 4.6%. that later. But what I want to emphasize with this flat growth—and this is the main message I want to convey Now we will address brand performance. This is very in this presentation—is that the Premium & Superior illustrative of what I was mentioning before. The main segments, meaning the company's premiumization, brands where Concha y Toro is betting on and started grew 2.3%. And where did we decline? 1.5% in the betting on in 2017. We've been at this for eight years,

Varietal & Lower segments, where we are trying to where Concha y Toro has bet on these brands. We abandon some brands and some small markets that officially launched the strategy in 2018, 2017 was are not contributing real value to the company. the year of adjustments. We see Casillero del Diablo

Then, if we look at the Premium & Superior category growing 4% in value terms, Trivento 4.1%, Bonterra specifically, it's the same as I mentioned earlier: a 3.7%, despite the bad performance of Bonterra in the growth of 2.3% compared to 2024. last semester for the reasons I just explained. Cono

Sur was also flat. Frontera, which is within the lower

Looking at the quarterly evolution in value sales category, but mainly due to the US and Japan—the for wine only, we see here growth of 2.8% in 2025, two markets where we were strongly affected—the brand declined. But the brand is very solid in all other markets. It declined 5.7%. And Reservado, thanks to the very good performance in Mexico and Brazil especially grew 11%.

For the premium segment it's as I mentioned before. We have increased 90 basis points, reaching

57.4%. We consider this a great achievement for the company, and it's what gives us more confidence in the future projection.

Then moving on to overall results. The overall results, without considering extraordinary write-offs, are: revenues were up 1.7%, operating costs were down

2.3%, operating margin was up 0.9%. Administration and selling expenses (SG&A) are up 3.6%. And we ended up with an operating result down 6.7%. But what I want to emphasize here is that the top line— which for me is the most important, obviously without diminishing the others, but it's the most important because it gives a clear signal of where the company is going, how strong we are moving forward, we are growing at 1.7%, and I'm going to explain as much as I can why operating costs increased by 2.3%. You'll see that these are mostly external factors to the company, and all the internal adjustments the company has made have been tremendously positive.

I'll explain it here. Operating costs increased by

CLP$13,000 million. And this chart, prepared especially for you, is very clear. It clearly indicates everything I was talking about. In direct operating costs for the holding company—bringing everything together in one chart—direct wine costs, input costs and operational costs, we spend CLP$1,242 million less this year. The company was more efficient than last year. And this is an impressive achievement. On top of that, everything related to non-wine costs, and considering the growth in our beer products along with all the things being done, all the adjustments across all areas— we spend CLP$2,500 million less than 2024. So where did the problem come from?

The problem was in specific, very specific items. First, the freight costs. We faced a strike in Brazil. For us,

Brazil, as I showed, was the market with the highest growth. We faced a strike, and instead of being able to transport our products by sea, which is most efficient, we had to do it by land, significantly increasing costs.

There was a strike in what is the equivalent of our SAG there, called MAPA, which blocked a lot of orders.

And also, increased shipping costs for sea freight in the UK and Nordics. But this was foreign to us, and what happened in Brazil was extraordinary. The other noitatneserp stluser

5202 major item, which we will also see in SG&A, is taxes.

Obviously, when we made the business plan—when we spoke in March of 2025 about what we anticipated for 2025—a 10% tariff in the United States was not on our horizon, nor was the implementation of alcohol taxes in the UK with such force. We concentrate all these taxes in two major markets, the US and the UK, which are important markets for us, but we are taking measures to neutralize that effect.

If we look at SG&A, which increased by CLP$9,000 million, we see an effect in the UK, again due to those taxes, for recycling/collection costs. The higher volume in Brazil, which was very significant, led us to implement an aggressive plan, a plan we called "Boost" for Casillero del Diablo, Reserva and

Diablo. It's going excellently and this first quarter of

2026 continues to be going very well in Brazil, and this confirms that the decision we made was very significant, very powerful, and highly efficient. And then, as you know, we opened the Wine Center. With any opening of a project of this magnitude, there are initial expenses that obviously will be recouped

over the following years

we spend CLP$2,257 million, more than we originally anticipated, but we are already seeing a 15% increase compared to the previous year, with a very good operating result, and we are very optimistic that this, specifically the Wine

Center—for those who have had the opportunity to go, and if not, please ask Daniela to invite you—it really is an exceptional thing. We are receiving very good feedback, and it's going to be a very important source of revenue for the company.

So, moving to the operating result, if we compare

2024 with 2025, we see a difference of CLP$8,008 million. Where is that difference? In taxes, obviously, there was a portion that was recovered by pricing in the case of the UK. And that's why we ended up with a final figure of CLP$9,119 million in the UK.

Also, CLP$2,625 million in the US. The exchange rate did play in our favor; the sales effect amounts to CLP$1,707 million excluding exchange rates, and other factors amount to CLP$1,532 million.

And so, with this very simple chart with five major classifications, one perfectly understands where the causes lie. We hope the situation in the United States reverses, and that would be very positive for us, and that we manage things with increasing efficiency. And there is very strong pressure in the UK to reduce that tax.

Next, operating result. It's the same we discussed those vines. Second: we had inventory obsolescence before, 13.5% lower, reaching CLP$111,710 million due to all the cleanup we had to carry out because compared to the previous year, without extraordinary of what I mentioned before, about deepening the write-offs. management model and the commercial model. And

third

wine degradation, also part of a natural process,

Then we look at the EBIT margin, which follows the led to CLP$8,188 million. And we did it consciously, same trend, with 190 basis points declining, which knowing that with this, we are betting on the future.

I have already explained, ending at 11.5% versus

12.5%. And for me, the most interesting part of all This simplification obviously involves many points. this is how the company has demonstrated brutal Here we mention some: better planning, we are solidity. And that probably hasn't been fully grasped. counting on external advisors so the company can

A brutal solidity in the growth of the categories where make its production plants much more efficient; we needed to grow. We have been abandoning the expiration control for our products; more strategic categories we wanted to abandon, therefore losing purchasing; a different inventory policy; warehouse volume, but we are securing the long term. management; slow-movers management; reclassification of our inventories; financial

And then the EBITDA also decreased by 3.1%, management of obsolete inventory, etc. All of this will ending at a very interesting figure that you can follow allow us to share an important figure with you, just as throughout the different quarters, with a final year we did in the past with a figure, that if I'm not mistaken, figure of CLP$152,760 million. And the evolution of it was close to CLP$25,000 million, now the company the EBITDA margin, the same, down to 15.7% from is projecting, as a result of all these adjustments

16.4%. made in 2025, which impacted the 2025 results, it is projecting savings over two years, 2026 and 2027,

I wanted to add here, and it's very much in line with the and we will report them quarterly—of CLP$28,000 initial presentation, a transformation for the future. million. Of which CLP$5,000 million are from a deep

And here we return to the same previous chart that I adjustment we are making to our distribution network had before, comparing the CLP$111,710 million EBIT here in Chile: on the side of Cono Sur, our subsidiary in in 2025 with the CLP$119,718 million in 2024, with Chile, CLP$7,000 million, and on the side of Concha the positive data on revenues. And here we included y Toro Chile, CLP$16,000 million. So, all of this is

something I'd also like to explain

an extraordinary accompanied by concrete numbers we are aiming for write-off. The company made an extraordinary write- to deliver very solid benefits in the future, knowing off in the last quarter. So, when you look at the last that we assumed a cost in 2025. quarter's result, logically it's not good. But why did we do it? Because we are thinking about 2026, 2027 I want to give— as we are finishing with this- an and 2028. The company is thinking ahead. We had to analysis of the 2017-2025 period, so that one has the enter a process of—if you'll pardon the expression— perspective that time gives, and one can realize if the portfolio cleansing to achieve a better 2026, obviously Concha y Toro's strategy is working or not. within a difficult scenario, I don't deny that. But we are steering the company according to the reality of the market, deepening the things we need to deepen to For me, this chart is very significant. In 2017, when achieve results that provide consistency and security the strategy was not yet implemented—the strategy for our investors in the future. That is our big bet. began in 2018—we sold 37 million of 9-liter cases

And there you can see that this CLP$8,188 million (M9LC), to make it simple. And in 2025, we sold can be classified into three major chapters. First: the 33 M9LC. To make it simple 4 M9LC were lost. But exiting of a vineyard field in Chile and the termination where were those 4 M9LC lost? One may ask. And of field contracts in the United States with Bonterra, if you look at the figures, they were lost in "Others," contracts that we inherited when Fetzer was acquired, which is what the company wanted. Because it was where we reached agreements with the owners of not what the company was aiming for. In 2017, the those vineyards to exit those contracts because they company sold nearly 13 M9LC under that segment. were not economically efficient. All of this amounted In 2025, we sold 6.5 M9LC. We have lost 6.3 M9LC. to CLP$3,980 million, but with a very significant And it was a deliberate choice to lose those 6.3 M9LC. benefit starting in 2026: We will no longer have Obviously, I will not deny it, we would have liked that in noitatneserp stluser

5202 the Protect segment we had grown a little more so we highest level, with rootstocks with impressive yield wouldn't have had that loss of 1.3 M9LC. And now the and productivity, as we hope to communicate at the focus, along with making the top line grow—and this is end of this harvest. what I want to highlight, we grew in this difficult period

-a very good period at the beginning, yes, but very Afterwards, we move to the Wine Center, another new challenging afterwards, we grew 46.5% in Principal income generation center. A unit we had, but nothing

+ Invest, which is the company's focus. We added like what we have today. All of our expansion into new nearly 4 M9LC of very high value to the company, businesses with Kross and Odissea, which has been compared to the 6 M9LC we lost under the “Others" doing excellently well. The beer market is very large, segment. And this growth is what I just explained. I and we are growing our market share in this market, don't want to spend more time on this. The noise heavily dominated by two players. And the figures we that existed in "Others" was very significant from have are very spectacular. an operational point of view, from a cost point of view, sales management, efficiency, commercial And finally, the brand portfolio is also evolving. The management, and marketing. We wanted to lose latest acquisition the company made in the first that volume. And we focused on Principal + Invest, quarter of 2026 was Maison Mirabeau, a French and consistently across all years we have grown. And brand that was acquired with very light assets, so that is a very great achievement. And obviously, in to speak, but we invested mainly in the brand. And

Protect we have -because it's a very large base of the that will give us growth potential with that French company's scale—to address that category, and we brand, and it aligns with everything I explained: the are addressing it with great force, and there will be, premiumization, everything the company has done

I believe, very interesting results from here to 2028. from 2017 onwards. And also new products we continue to work on. Together with the research and

As we continue to see the company's run throughout innovation center and all areas, we hope to showcase this entire 2017-2025 period, the company had them this year and the next. an accumulated operating result of CLP$845,000 million. And notice that we have carried out I have nothing but optimism. I have nothing but investments and have not stopped investing, because congratulations to the entire Concha y Toro team we know the strategic investments we are making that has made this possible, and the unconditional for the future of the company. And we see how the support of the board of directors, and also of so many agricultural investment grew to be a 42% participation investors who have made this great performance of of our total investments. Oenology represents 27%, Concha y Toro possible. operations 12%, subsidiaries and others 8%, and new businesses 10%. Where the company had growth the Speaker: Osvaldo Solar most? In the first three areas. How are we preparing → Well, after all this explanation about what the the company? With automation, with an agricultural company has experienced during the year and also area that is going to be—and believe me—absolutely providing this perspective from 2017, because it key for the future of the company and for the future really justifies a lot of what Concha y Toro is achieving of the industry. And with what I'm seeing starting to in the context we find ourselves in, we are going to happen in the industry, this is going to be a determining review what we have defined as non-operational and factor in the development and profitability of Concha certain elements that play an important role when one y Toro in the future. And all of this investment amount analyzes the winery's results. represented practically 54% of the operating result achieved in the same period. A first aspect, which we have commented on other times and we want to insist on, particularly due to the

And here are the agricultural plantations. And if you volatility of it, is the currency diversification that the ask me, what is the main asset, along with the brands company has structured. During 2025, it allowed us and distribution? The main asset is the agricultural to have a basket that moved positively 1.3% against area. We have practically 13,000 hectares planted. a dollar that was only up 0.1%. Why is that relevant?

What winery in the world has this? With top-level Because ultimately it allowed the company to capture plantations, with a research and innovation center practically CLP$10,000 million in higher revenue. that has provided plants with developed clones at the noitatneserp stluser

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Now, when one analyzes that in a perspective like the price increases, like what could be experienced in oil current one, where the dollar is more appreciative, changes in the coming days. We have it contained, one sees that the basket also reduces practically by having sold inflation hedges at a value lower than the half the effect that could be generated today just by Central Bank's target. For the year 2025 specifically, the dollar, considering that there are currencies like this policy meant a profit of CLP$1,084 million. the Mexican peso or the Brazilian real that are today depreciated compared to what we had in 2025. So, On the other hand, speaking of the interest rates, there is a first factor here that it is always interesting although rates have flattened, we have a peso rate to keep in mind and that the company has played an that is substantially lower than the rate we had in essential role in, especially since we are a company 2022. We do not intend to reach the rates seen in massively oriented towards foreign markets. 2021, which were extraordinarily low, but rates have already eliminated those peaks we had, particularly in

That said, let's go directly into the non-operating 2023, which is also positive for the short-term debt result, which has three components, of which I will that the company manages. Specifically, debt during

refer in more detail to one

financial expense, because the year decreased practically by CLP$10,000 million

I think it's the most relevant to explain. And also explain compared to the debt we had at the end of 2024. particularly the exchange rate difference between the years 2024 and 2025, where one sees a decrease in An aspect we consider here is also a strength of revenue from CLP$1,990 million to CLP$168 million, the company is the Hedge policy between assets a 91% variation, which responds to an event that could and liabilities, which also allows facing with some be defined as extraordinary occurred in Argentina: the tranquility the short-term exchange rate variations, possibility of liquidating exports with a non-official maintaining a healthy and protective policy regarding exchange rate, but rather financial exchange rates variations.

(MEP and CCL), which in practice were 20% off the record, and 80% official, which allowed to generate Specifically, regarding net financial expenses, we see a profit of practically CLP$1,800 million in 2024. here how definitively the orange line, or 2025, which

That ceased to be like that, and we have a clean year as we commented was 17% lower than the previous of that factor. It played in favor, but we understood year, now diverges from the blue line, which would it as extraordinary. And our affiliated companies, be 2023 and 2024, and goes in search of levels more especially Almaviva and the cork industry, in Almaviva similar to 2022. There is still a gap, but the policy that we see a flat situation, the year 2025 being practically has been defined and the perspectives we have allow equivalent to 2024. We see that as a relatively us to walk towards numbers more like those of 2022 predictable result going forward. And then when we in the future. look at financial expenses, which had a decrease of With this, we move to net financial debt, the evolution

CLP$3,372 million in the year, which is 17% lower, it's it has had, the peak we had in 2023, how it has been interesting to look at what perspective we are having coming down substantially compared to that figure in total. and we are getting closer to the figures the company maintained in 2022. Today we are a larger company,

Here is the complete non-operational result. The and therefore we will also look at it in its capital context orange line, which corresponds to 2025, begins to and its context in terms of EBITDA generation. decline, moving away, or starting to move away from

2024, to seek and reach levels closer to 2022. Finally, speaking of the net profit, after what Eduardo has commented, we see that compared to 2024,

Why can we talk about positive perspectives? there was a decrease of CLP$10,000 million, which

Because on one hand, the company had a policy that includes these extraordinary write-offs of almost we have been explaining and that meant substantial CLP$8,200 million. If you look at it from a net profit revenues in the past. Today, the issue is flatter. But perspective, practically 80% of that decrease is we still have a rate that is fixed for the coming years at directly explained by this cleanup done to face the

2.82%, this is calculated in UF to account for inflation, future in a much more powerful way. so regarding financial debt it is capped at 2.8%, below the target of 3% recommended by the Central A topic we have always kept in mind is return on

Bank. And that also allows facing potential shocks of invested capital, where the write-off also plays a role, noitatneserp stluser

5202 and it is why we cleared this. For 2025 we are at 7.8%. at the same time very favorable, particularly for the

Let's remember that the cost of capital, which we, the company's shareholders. On one hand, considering board and general management have always put on the financial health we have already discussed, that the table for all projects is that the company targets a commitment we could define to profitability also minimum return of 8.5%, which is the cost of capital. for the shareholder, where we have seen a share

Therefore, this is an issue that is still evolving. price that has been very weak, not reflecting the perspectives that management has. And on the other

And when we talk about this CAPEX, that Eduardo hand, that today there is practically an opportunity, in mentioned before, it's interesting to see that all that the sense that there is a punished market with a price investment is part of what is allowing the company substantially lower than what the various analysts who to grow in very profitable terms going forward. follow the company suggest. We must remember

Everything that has been done, particularly in the that analysts today speak of an average consensus agricultural area, has very direct effects. On one of 1,380 pesos per share. And we find ourselves hand, direct efficiency in terms of annual expenses, with a share that today is at 905 pesos, more or but on the other hand, increased productivity. We less. So, in this context, the company has proposed have to remember that we have been tracking yields two plans. One is being executed and the other is a per hectare. And we see that the company, from proposal to the shareholders' meeting: to increase an average it had in 2017-2018 of 14,000 kilos per the dividend this year, up to 50% of profits versus the hectare, is moving towards approaching 20,000 40% that is customary, as you know. And on the other kilos, which we have commented on, and that has hand, a share buyback plan. Let's remember that the a very direct effect on cost per kilo, as a basis for company had authorization to buy back shares up to the company's efficiency and on the other hand, 5%. Of that 5% it was executed only 1.1% four years the sustainability of its quality. On the other hand, ago. But now, since we have made the decision, the oenology, which as we have already commented on, company already started a plan to buy back up to 3.9% will translate into a decrease in expenses, as Eduardo of the shares, which is what is currently permitted, mentioned, and on the other hand, will increase creating value that we believe is quite important productivity because of the asset usage in terms of for the shareholder. It becomes a kind of tax-free harvests, all of which minimizes future needs. dividend equivalent, where the shareholder comes to have that position of about 3,9% more if they stay in.

All this concentrates afterwards on financial solidity So this is a repurchase offer that opened on Tuesday that we want to highlight. All of this being undertaken the 17th and ends on Monday, April 6th, where the and the measures we will comment on at the end company has set a raised price of 925 pesos, raising have a basis in maintained financial health that allows the market value by almost 7% compared to what was us to grow and take opportunities as they present trading prior to this decision, in such a way as to offer

themselves. Here's the first covenant

the debt ratio shareholders the possibility to sell, for those who wish, is at 0,49. We have decreased from 0,54 last year, at this price. And for those who stay, the possibility of with a covenant ratio of 1,2 times. The figures speak having a superior price or superior profitability for the for themselves. shares they currently own.

On the other hand, on the financial expense coverage, We end the presentation with these two good we increased from 6,4 times to 7,1 times against the decisions: one that will be proposed to the meeting covenant that is 2,5 times. and the other already in execution. Thank you.

(End of the presentation)

And on the other hand, this index of financial debt over

EBITDA -not a covenant, but a long-term decision Speaker: Daniela Lama the company has made- set by us at 2,5, that is why → We have now reached the end of this earnings it is not in the same color. Today we are at 2,3, below presentation. We thank you for your attendance and that estimated value, as part of the financial solidity wish you a good afternoon. we are commenting on.

So, with this reality, we finally find ourselves with two decisions that we believe are very timely and