18/05/2026 Transcripción Presentación de Resultados 1Q26 Download

Speakers

→ María José Undurraga, Moderator

→ Eduardo Guilisasti, CEO

→ Osvaldo Sola, CFO

→ Daniela Lama, Head of IR

Moderator

María José Undurraga

→ Good morning, everyone. My name is María José

Undurraga, and I will be moderating today’s call. Thank you For further analysis of the quarter, please refer to the press for joining us for our first-quarter 2026 results presentation. release published on Tuesday, May 5. If you have any additional questions, please contact Daniela Lama.

Before we begin, please note that you can select your preferred language for the webcast using the options on the I will now leave you with Eduardo Guilisasti. right side of your screen. The presentation we will review today is already available on our website in Spanish and Speaker: Eduardo Guilisasti

English.

→ Good morning, everyone, and thank you for joining the

Before we start, let me read a brief disclaimer. call.

This presentation contains forward-looking statements I’m making an exception by participating in this first-quarter based on information currently available to the company presentation, as I usually join only for the half-year and full- and made in good faith. These statements are subject to year results, but I wanted to provide additional context for risks and uncertainties beyond the company’s control that this first quarter, in face of results that are not good at all, could cause actual results for Viña Concha y Toro to differ with a decline on operating profit by almost 29%, and over materially from those expressed herein. 36% decline in terms of net profit.

Today, we will review the company’s performance during I would like to offer some insight to better understand these the first three months of the year 2026 in greater detail. results and the sales performance behind them, so that the situation we are currently facing may be better understood.

We will begin with a message from Eduardo Guilisasti, CEO of Viña Concha y Toro, who will discuss the key highlights For starters, the first quarter has traditionally been a slow of the quarter. We will then move on to an overview of the quarter for the wine industry. And to fully understand what quarter with Osvaldo Solar, the company’s CFO. After that, is going on within the markets, I would like to divide the

Daniela Lama, Head of Investor Relations, will review sales matter into three main groups. First, the export market, performance for the period, and we will conclude with a excluding the United States from that segment, and then, review of the quarter’s financial results with Osvaldo Solar. the domestic market in Chile.

If we look at the export market excluding the United States, recent weeks we have already started to see some recovery we see that the company’s strategy, which we have been in that brand. As for the rest of the company’s main brands, working on for some time now, remains very sound, and i.e. Bonterra, Casillero del Diablo, Trivento, 1000 Stories, we even had a growth in dollars by 5.8%, a very good figure, depletions are practically in line with last year. In terms of which reflects the consistency, the focus and the discipline volume, our sharp decline is due to Frontera. This explains we have had, despite the turbulent conditions affecting the significant drop that ultimately affected our overall the alcohol and wine industry, although volumes declined, results. which is something I will explain later on.

I would also like to highlight another trend that is currently

If we move to the second segment, the Chilean market, we taking place and that will naturally take time to fully play also see a slight decline in volume, but our average price is out. On the one hand, we have our Category 1, which approximately 4.1% higher, which is in line with the company includes all brands from Casillero del Diablo upward. Within premiumization strategy I mentioned earlier. that category, the company continues to deliver a robust performance. Casillero del Diablo, our flagship brand, has

And then, if we focus on the United States, the situation is remained highly resilient despite all these scenarios, and considerably more complex, not because of internal factors, we have not seen decline either in the Casillero del Diablo and I want to stress out this, but due to external ones, as Universe or in that category overall. our main distributor in the United States, under the three- tier system, was RNDC. And RNDC has gradually exited Where we have been indeed affected is in Category 2, several states and is now practically out of the business, as particularly with Frontera in the United States and in the it has been recently announced. It began in California, then more mass-market wine segment. There is strong pressure exited the East Coast, and a few weeks ago it has also left from mid-sized companies to put wine on the market

Texas and the central region; and now it is also seeking to because they have a lot of inventory, given the current exit some smaller states. market conditions. At the same time, retailers are carrying out a much more aggressive rationalization process.

When this happens, the transition of one distributor to another, there is naturally a significant adjustment process, As a result, there is a profound phenomenon taking place as you all know very well. We are currently in the middle of in Category 2 with significant implications, although in my that process. I hope that by July we will be fully integrated view the market should begin stabilizing toward the end with the new distributors, with whom we are already having of this year, when some players will likely exit the market, very constructive and optimistic discussions about what our leaving behind a more orderly and rational competitive performance could look like for the second half of this year. environment.

During this type of distributor transition, inventories are As I mentioned, Category 1 continues to perform very the main factor affecting results. There is a very clear well for Concha y Toro, while Category 2 is where we have destocking process. The distributor handling our brands experienced declines, and we expect to reverse that trend begins reducing their orders in order to have to transfer during the second half of the year. as little inventory as possible to the new distributor. This translates into shipments, as we were just seeing, or in sell- I would now like to move on to efficiency. Last year we had a in declines, with a very sharp drop in the United States, of very solid sales volume performance, broadly in line with the almost 30% during the first quarter, with some brands being prior year, with strong growth in our premium and superior more affected than others. categories. The area where we faced greater challenges was Category 2, which is in the middle of a rationalization

What is interesting is that if we look at the depletions or process. This is something I want to emphasize. Concha y the sell-outs, which we monitor very closely, sell-out Toro is fully aware that the industry can no longer operate performance held up much better than shipments, declining the way it did prior to 2022. The sector must go through a by only 10%. It is not a good decline, but it is significantly process of simplification and rationalization. better than the shipment decline, precisely because of this whole phenomenon. We are eliminating brands and intentionally reducing volume in several important markets in order to discontinue brands

Looking at the different brands, the most affected was where we no longer see future potential. We believe that

Frontera, where we implemented a price increase as a by the second half of 2026 and 2027 we will have a much result of the tariffs we are facing in that market. However, in stronger concentration around our core brands, which are the ones that will drive the company’s future growth and believe we have been able to anticipate the road ahead with where investment will continue to be focused. That is a very a high degree of certainty, and we are taking decisions with clear real fact for us. a medium and long-term perspective.

And to achieve that simplification, we have launched a Of course, can we suffer during a particular quarter? Yes, rationalization process across the entire commercial and we can. And we are prepared to absorb that impact because logistics chain. This has already begun to generate savings we believe it will ultimately lead to a stronger year ahead. and should deliver much more significant efficiencies over Thank you very much. the coming months. (The presentation begins)

Last year we faced elevated costs for the reasons explained Speaker: Osvaldo Solar at the time. This year, however, costs are already more controlled and below the levels seen in the first quarter of → Following the context Eduardo has provided, we will now

2025. review the quarter in greater detail, always from a medium

I can also anticipate that the harvest, which is now nearly and long-term perspective, which is consistent with the complete, with only about one week remaining, has been a measures Eduardo discussed and with the direction we very good one, both in terms of volume and costs for the have been communicating over time. company, and we believe this will have a favorable impact The first point is this summary of the quarter, which can during the second half of the year. essentially be described as a continuation of Concha y

Toro’s disciplined and programmed execution of its strategy

Overall, I wanted to focus these remarks mainly on sales focused on profitability and value. performance and on the most relevant factors affecting the This means continuing to prioritize premium and superior business. Then we continue to execute our premiumization brands, which during this quarter represented 53.7% of the strategy, which has delivered very strong results. At the company’s total sales, which is 1.4 points higher than the same time, costs are now much better under control, and same quarter of last year. we are moving forward with a rationalization process that will generate significant production efficiencies, although Together with this, and this is the reason for all the rationale with a loss in terms of volume. Eduardo mentioned earlier; these are brands that face market competition in much more powerful and resilient

We are fully aware of that trade-off. This was exactly the way, with more sustainable margins and results over time. case when we implemented these measures between 2018 Unlike, for instance, something like Category 2, which and 2022. There is an initial cost, but in the long term, this consists mainly of entry-level wines that are more exposed simplification process will generate substantial benefits. to cost fluctuations, exchange-rate volatility, and changes

Looking ahead, we remain optimistic that we can close in competitive pressure resulting from excess supply in the the year with single-digit growth, driven mainly by Latin market.

America, where performance in Brazil and Mexico has been very strong, while Chile is also recovering significantly. We At the same time, it is important to highlight the price are also seeing positive developments in Europe, Asia, and improvements we have achieved, which are partly the result

Canada. We have seen major changes with our distributor of the stronger sales mix we have been discussing, where in Canada as well as with the one in Germany, a very large the average price increased by 4.1% in the Chilean market, market where we have a very small presence, and we believe as Eduardo also mentioned earlier, while the revenue in this will produce encouraging results. dollar terms in export markets increased by 5.8%.

In the United States, as I mentioned earlier, we expect In parallel, we continue moving forward with our efficiency operations to be fully normalized during the second half plan focused on costs and expenses. As we will discuss in of the year, while recovering from the adjustment process more detail later, the most significant effects are not yet associated to any process of transition from one distributor fully visible, although some elements have already been to another. captured, while most of them will become more evident next year. But the company is already fully aligned in that

I encourage you to maintain confidence in Concha y Toro. direction.

The company is fully aware of the things that have happened, Going into more detail, these are figures that were published those currently taking place, and those still ahead of us. I yesterday, so I will not go through every line item individually.

However, this summary clearly shows the 7.9% decline factors, in particular, due to the decline in the United States. recorded in the wine business during the quarter. From the drop-in volume we had, of 6.8% specifically in the wine business, 74% of it was mainly driven by the United

One point worth noticing is the figure shown on the right, States, which is something we will discuss in more detail which highlights this difference. When looking exclusively shortly. at the wine business, the mix of premium and superior products reaches the figure of 58.1%. Previously, we Foreign exchange also had an impact, contributing to a referred to a figure of around 53.7% for the overall business decline in sales measured in CLP$2,620 million. However, mix, but it is 58.1% when focusing solely on wine. the primary effect came from the effects of volumes.

Another crucial point looking ahead is the evolution of gross If we look only at wine volumes, we can see that although margin, which has improved, if only by 0.2 percentage we indeed had 6.8% decline during the quarter, the premium points. This is relevant, though, because despite the and superior segments saw a volume growth of 0.2%. If we decline in terms of volume, gross margin remains at what break down that segment further, we see that performance

I would describe as a fairly reasonable level under the remains aligned with our strategy, and the objective is to circumstances. maintain that trend throughout the year.

It is important to remember that the company still carries a Looking at wine sales by value, we have a 7.9% decline, substantial fixed-costs, which are part of a structure that we although foreign exchange also played a role. As Eduardo aim to optimize with the initiatives we discussed during the mentioned earlier, export market sales in dollars went up by previous results presentation, and I will comment on them 5.8%, but they declined in Chilean pesos. So, in addition to in greater detail later. the volume effect, we can see there was also a exchange rate effect.

On the other hand, EBITDA margin declined by 2.4 points, reaching 12.3%, while the bottom line results throw a margin Unlike what we saw in volumes, here the premium and of 4.6%, which is, of course, a very low figure, that includes superior category did observe a decline of 5.1%. the decline of 36% in the US, as a result of what we have already discussed. We will now move into a regional sales performance breakdown. The business is organized into five major

We must understand that we are dealing with a first-quarter regions: Europe; America excluding the United States; the dynamic. The first quarter is the smallest quarter of the United States; Chile; and Asia, Africa and Others. Here, year, and therefore margins are weaker, given this being Europe remains the company’s largest region, representing a company with such a scale that the first quarter is not 46% of total wine sales. representative of a steady performance level throughout the year, which means that these kind of results end up appear Within Europe, the United Kingdom is the company’s largest as impaired in quantitative terms. market. Excluding the UK, Europe would have observed a growth of 4.7%, meaning that the rest of Europe manages to

So now the idea is to move into a more detailed sales slightly offset the decline in the UK market, which was 4.6%. analysis with Daniela and then return to a broader review In America excluding the United States, the main markets of results and the factors the company continues to view as are Brazil and Mexico, both of which show a double-digit key drivers of future growth. growth. As a result, the consolidated America region excluding the United States grew 4.8% during the quarter.

Speaker

Daniela Lama As already explained, the United States declined 32.2%, mainly due to timing sales effects between the first quarter

→ Turning now to the sales analysis, from now on, we will of 2025, which created a higher comparison base, and the start showing this waterfall chart, which shows how we first quarter of 2026; in addition to the distributor transition went from sales in this same quarter last year to sales in the process in the U.S. current quarter.

Chile declined 1.5%, where we also saw timing effects and a

As Eduardo mentioned earlier, we can see that the volume/ more competitive environment. Despite this, we continue to mix effect is the main factor impacting results. Here we can hold the number one market share position. see that the majority of the decline is explained by those While in Asia, Africa and Others we saw a declined of 34%, that region represents 5.4% of total wine sales. Here, the given the significant fixed-cost structure the company has. main factor was Japan, which also showed a decline. This dynamic will also be reflected in terms of operating margin performance.

Turning to brand groupings, this presentation format was introduced starting in the fourth quarter of 2025. We group Regarding the EBITDA, it declined by a smaller proportion, together the Casillero del Diablo universe, including all basically because it excludes depreciation, which is a fixed of its line extensions, along with Diablo; Trivento and its component the company has. In the same way, we are still at respective extensions. The same with Bonterra; Cono Sur, the lowest part of the curve. If we look at the first quarters of which includes all the brands of that origin; and we included 2024 and 2025, and further back as well, these are always

Frontera and Reservado, which are two large brands the weakest moments of the annual result, for the reasons within the mass-market segment. Together, these brand we have already discussed. groupings represent nearly 73% of total wine volume.

And, as previously mentioned, here the main impact came In margins we have the same. In the future it should return to from the decline in Frontera, by 25.5%. It is important to note more normal levels, of 15% or 16%. that this chart is now presented in volume terms for greater clarity, whereas previous presentations focused primarily There is a first aspect here that we have mentioned before on value. and that we believe is important to highlight, particularly when questions arise regarding exchange rates, where one

We can see that the Casillero del Diablo universe remained might expect the Chilean peso to be further appreciated essentially flat in volume terms, with 0.2% growth, which, against the dollar. Here I think the company’s diversification given current industry context, is a very positive result for policy is reflected quite clearly in what we have called us. This also contributed to the improvement in mix. The Concha y Toro’s “currency basket”, here on the chart at our main negative impact is still coming from Frontera, primarily left side. due to the United States.

What appears in this image corresponds to revenue.

In terms of mix, the wine-only mix improved by 160 basis These figures, as we mentioned, are substantially diluted points, reaching 58.1%. Let us not forget, our target is to downwards once costs and expenses in each of these reach 60% wine-only mix, and quarter after quarter we currencies are taken into account. But if we look at revenue continue to move toward that objective. And here, what alone, it is interesting to point out that although the 7% stands out is brands like Diablo, which grew close to 10% depreciation the Chilean peso had against the dollar when in value sales, Marques de Casa Concha, which also saw compared to the first quarter of last year, the impact on a double-digit growth, and Amelia, the new subsidiary Concha y Toro was only of around 1.7% decline. The real announced in recent weeks, which recorded growth over impact on revenue, those CLP$2,600 million we mentioned

40%. a moment ago in lower sales, would have been CLP$9,700 million, had all revenues been denominated in dollars.

Speaker

Osvaldo Solar

So, when one looks at it, as a typical exporter who is

→ Following this review of sales performance, let us return concerned about the dollar-peso exchange rate, in to some aspects of the company’s results and address some Concha y Toro’s case it is necessary to look at the full of these growth drivers that we believe remain central to basket of currencies, because that is the reality of the both quarterly and annual improvement for the company’s company’s revenue exposure. And there is a very strong operations. natural diversification there, which once again proved its effectiveness during this first quarter.

As we have already seen, we may see the orange bar in the chart, displaying the decline of 29%, but we are in the Now, regarding non-operating results, I am not going to weakest quarter of the year. This is important to keep in comment much on the subsidiaries because although mind in order to avoid extrapolating these results beyond there has been some improvement in those results, the what is appropriate. Looking ahead, results should rise relevant impact is really seen towards the third quarter, towards those higher levels rather than remaining at those since Almaviva is the main contributor and its revenues low levels we are currently seeing. This is particularly are booked in September. Until then, those operations are relevant considering the decline in sales volumes and the essentially recording expenses. significant impact it has when viewed over the short term,

What we define as the pure non-operating result, namely measured on a rolling twelve-month basis, considering the financial expenses and exchange rate differences, showed last four quarters, and it currently stands at 7.2%, which is an improvement of CLP$500 million. This improvement below the company’s cost of capital rate, which stands at even absorbed a negative effect of CLP$189 million caused 8.5%. The only element to take into account here for now, by the exchange rate on the March 31 closing, at CLP$937. considering the nature of this quarter that we have already

This forced the company to adjust all financial expenses discussed, is the amount of capex that are not yet generating accrued at the closing exchange rate. So, the year-end returns and that are therefore affecting the denominator. picture reflected here, had a last-minute effect, so to speak, We currently have an investment volume of approximately during the final week, of CLP$189 million. Otherwise, the CLP$71,000 million that has not yet begun contributing but improvement would have been much more substantial. And will do so in the future, and that naturally have a contractive this is relevant looking ahead, because the non-operating effect when one analyzes return on invested capital. This result has been showing a downward trend. We have is something we monitor continuously, will continue to illustrated it in this chart, with 2024 in light blue, 2025 in monitor, and evaluate directly with every investment the dark blue and this year in orange, where we can see that company makes. the non-operating result continues to decline consistently.

And this year we expect for that same trend we observe in We also wanted to refer to what we see as the company’s the first quarter to continue throughout the rest of the year, growth fundamentals, because this an issue that drives us notwithstanding the increase in debt that will naturally occur month after month and quarter after quarter, although it during the second quarter due to seasonality and ongoing sometimes go unnoticed when attention is focused only on investments. a specific result such as the one we have been discussing today. There are five elements here that we think are worth

A third aspect that I think is also important to remember, reviewing briefly so that you can have a closer understanding particularly considering the outlook for higher inflation, both of what management is focused on. the 1% March CPI figure, which affected the UF beginning on April 9, as the CPI expected for April ranging from 1.3% The first aspect is operational and productive strength, to 1.6%, is that the company has virtually all of that inflation which is reflected in planted hectares. And if you look hedged through a cap with an annual ceiling of 2.82%, which at those planted hectares, there is both the productive becomes extremely important when inflation begins to rise increase we have already discussed in terms of output per as we are seeing now, both in March and potentially in April. hectare, but it is also important to consider that of those

12,000 hectares, there is practically 20% that are still under

Now, during the first quarter, actual inflation came in below development and are not yet contributing, but will begin to that 2.82% cap. If we annualize first-quarter inflation, it was have a very significant impact over the coming years as they only around 1.2%, compared to the 2.82% ceiling. Therefore, progressively enter production, especially considering that the company’s results included recognition of approximately this is a very strong productive base and that the winery has

CLP$855 million in additional expenses. But what matters continued to premiumize its portfolio. looking ahead is that we have a significant strength here because this cap is fixed going forward, which protects us A second aspect is what we discussed in the previous against larger inflationary swings. meeting: the operational improvement plan, which comes as a consequence of the rationalization Eduardo mentioned earlier

As for interest rates, the relevant point here is the reduction in terms of portfolio and the decision to stop producing certain in debt of CLP$12,600 million vs December 2025, whose brands in order to focus more heavily on others. This is tied to impact we will discuss later in terms of the company’s an efficiency plan that emerges from eliminating what we have financial solidity. called a “tree of complexity.” And as this portfolio becomes more streamlined and concentrated, what we are seeing

Net financial debt declined CLP$5,800 million when is that by the end of 2027, we could be reflecting decrease compared to March of last year, and net income, as we were of CLP$28,000 million. That would translate into 2,8% of just saying, closed the quarter at CLP$8,779 million versus EBITDA margin improvement, which we believe is highly last year’s CLP$13,700 million, within the context shown in relevant considering everything we have been discussing. the chart.

This is in addition to those CLP$71,000 million we already

Regarding the return on invested capital, which is an issue mentioned, which a part of that is still not generating returns we monitor very closely and follow very carefully, this is despite already having been invested.

Another key factor is brand strength, which remains The first aspect is indebtedness. We may see there in extremely important, especially in terms of these market dark blue the covenant associated with the bonds issued changes, where innovation requires brands capable of by the winery, of 1.2, against reality’s 0.47; then we have supporting it. Anyone can attempt innovation because the financial expenses, which is 7x, versus the required they believe a certain trend goes this or that way, but a key threshold of 2.5x; and then we have this figure that fluctuates element to doing that, if we read the market correctly, as we over time, which is not a covenant, but a decision made by believe Concha y Toro is doing, is having brands that can the company with which the company feels comfortable support those changes. And in that regard, the potential of which varies in time, but serves as the framework around what we call the Casillero del Diablo universe is extremely which we model the business, and this is something that strong and is allowing us to keep innovating and launching matters, and should matter, to any investor in the company, products designed to complement evolving market realities because it shows that decisions are made with that level of such as the ones we are reading. discipline and attention.

On the Argentine side, for example, we have seen how Another fundamental element, especially in light of

Trivento became the number one Argentine wine brand in everything happening globally, is the company’s research the world, and we can see similar cases with Don Melchor, and innovation center. As you know, this research and

Bonterra, etc. This is something we wanted to highlight innovation center has now been operating for nearly twelve because the innovations shown here, for example the years, with an incredibly significant annual investment

Casillero del Diablo alcohol-free sparkling wine displayed that has generated major advances ranging from plant on the left, can only be released into the market because development to irrigation systems. All of this helps keep it has the Casillero del Diablo brand standing behind them. the company at the forefront of innovation and contributes

No matter how much one wants to enter the alcohol-free even to the creation of new products aligned with evolving segment to reach a market niche that is clearly growing, it is consumer preferences that we are observing in the market. the Casillero brand that makes it possible.

And for this, research and development are often essential,

The same applies to Diablo sparkling wines, and also the and this is not something the company has only begun doing fruit-based products and cocktails launched under the recently, but has been doing it consistently for almost twelve

Exportacion brand, and even Don Melchor expanding its years, with a team of researchers, PhDs, highly specialized own portfolio by leveraging the exceptional quality of the professionals, and partnerships with several universities, wines produced in its terroir. All of this is supported by brand which provides the solidity needed to support the changes strength, which is what allows the company to keep moving the company wants to implement and to pursue market forward. trends that we believe will prove sustainable over time.

And we have also added two additional elements that are And finally, there is the strength of the distribution network.

part of this strategy

the acquisition of Maison Mirabeau, Distribution is not something that can simply be improvised. which directly targets the premium rosé wine segment, It is built over many years, and it has allowed Concha y Toro given the distinctive characteristics of French rosé wines, to integrate nearly 85% of its sales operations. This creates which are global leaders in this category. And on the other a level of proximity to the market and a business capability hand, Viña Amelia, with all of its strength and its origin in the that is entirely different from what a standard or average northern region of Chile, where it produces truly spectacular exporter can achieve. And as I was saying, this is the result

Chardonnay. That gives us two additional elements that of many years of work, which today allows Concha y Toro to once again rest on the strength of the brands themselves, distinguish itself from the rest of the industry quarter after both in the case of Mirabeau and Viña Amelia. quarter by developing its own sales channels and its own commercial evolution.

And then we have another aspect that remains particularly

important

financial solidity. We have wanted to highlight And if you look here, we included this market-by-market this, as have done on previous occasions, because it is part breakdown because it highlights the opportunities that exist of what allows us to have these acquisitions, allows these across many markets where Concha y Toro holds either the investments, and allows the company to navigate potentially number one or number two position. All of this supports difficult periods, as well as having a confident and continued what Daniela mentioned earlier regarding the decline in development. sales, which was heavily affected by two very specific

markets

the United States on one hand, and Japan on the other, while we also have UK, which is a mature market where the company already holds the leading position and where there was a differential that had a meaningful impact in volume terms.

But the reality for Concha y Toro, with the strength of its brands and its ability to act across numerous markets, is a potential remains extremely strong.

Finally, we wanted to include these non-financial elements, but which nevertheless contribute and provide solidity regarding the company’s position in ESG terms, in terms of the brand, or how Concha y Toro contributes even to Marca

Chile, and also in terms of sustainability in general. In other words, these are elements that, while they are not measured in terms of numerical results, are still essential elements on which the company continues working in order to provide consistency not only to the economic results, but also to the company’s long-term permanence, where these elements also play in its favor.

Thank you.

(End of the presentation)

Speaker

María José Undurraga

→ Thank you very much, Osvaldo. We have reached the end of this results presentation. We thank you all for your participation and wish you a very good afternoon.