Vina Concha y Toro : 31 /03/2017 – 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 leading winery and the principal wine producer and exporter of Chile, announced today its consolidated financial results, stated under IFRS, for the fourth quarter 2016 ended December 31th, 2016.

Principal Figures for the 4Q2016

• The commercialized volumes during the quarter, registering an increase of 1.4% reaching

  89.9 million of liters.

• The consolidate Sales totaling Ch$183,200 during the quarter, representing a decrease of 4.6%, affected by the negative impact of the XR fluctuation.

• The Operating Income plus Depreciation and Amortization registered a margin of 13.9% over sales, representing a drop of 212 bp in comparison to 4Q2015.

• The Net Income decreased a 23.3% totaling Ch$13,874 million during the quarter, impacted by a higher cost of the wine, higher expenses and FX fluctuations.

  Principal Figures for the 12M2016

• During 2016, the consolidate Sales reach Ch$658,448 million, registering an increase of 3.5% in comparison to 2015. The commercialized volume show an increase of 5.5%.

• The Operating Income plus Depreciation and Amortization decrease 0.8% reaching Ch$92,701 million, registered a margin of 14.1% over sale, 60 bp lower than 2015

• During 2016, the Net Income decreased a 3.7% totaling Ch$47,931 million, impacted by a higher cost of the wine, higher expenses and FX fluctuations.

An external scenario marked by high volatility of FX, with a depreciation of the main currencies in which the Company generates its sales, characterized the last quarter of the year.

Indeed, Europe was the area most affected by currency depreciation, showing a drop of 10.9% in volume. Particularly, in the United Kingdom the volume decreased 11.3%, reflecting the impact on price increases that was informed to the large retailers post Brexit.

In opposite direction, all the other regions shows important growths in volume, highlighting EE.UU. with 17.3% and Canada with 15.2%; Latin America and the Caribbean grew 8%, with a dynamic Mexico (+21.5%) and Asia (+4.8%) powered by Corea and Japan (+44% and +8.4% respectively).

In Chile, the volume of bottled wine increased 7.4%, highlighting the performance of the premium category with a growth of 9.9% in volume and 11.1% in value. Higher sales exhibited in Concha y Toro's premium portfolio were Casillero del Diablo and Sparkling wine category, which grew more than 20% in the quarter. Other business category shows a drop in volume, mainly because of the end of the distribution of Monster energy drink, however the rest of the portfolio shows positive performance.

The Operating Income plus Depreciation and Amortization decreased 17.3% totaling Ch$25,374 million, representing a margin of 13.9% over sales. The lower result is explained by the impact of exogenous variables, driven by the devaluation of the main currencies in which the Company commercialize its products (GBP -21.9%; EUR -6.1%; USD -4.6%), the higher cost of the wine (derived by a harvest affected by heavy rains in April), and the flattening of sales, product of the impact on price increases in the main export markets.

Finally, the Net Income attributable to owners of the company totaled Ch$13,874 million, registering a decrease of 23.3% in the quarter.

1. Consolidated Sales

   Consolidated sales during the fourth quarter registered a drop of 4.6%, totaling Ch$183,200 million. Flat commercialized volumes in main markets were offset by a negative impact derived from exchange rate fluctuations. Refer to Table N°1.

   Table 1 Total Sales

   Total Sales⁽ *⁾ (in Ch$ million)	4Q16	4Q15	Change (%)	12M 2016 12M 2015		Change (%)
   Chile Domestic Market - wine	18,905	17,423	8.5%	71,265	65,078	9.5%
   Export markets⁽¹⁾	120,920	131,136	-7.8%	432,953	426,188	1.6%
   Argentina Domestic	2,435	2,251	8.1%	7,562	6,748	12.1%
   Argentina Exports⁽²⁾	4,099	4,827	-15.1%	20,057	18,719	7.1%
   U.S.A. Domestic	19,043	18,556	2.6%	62,127	58,850	5.6%
   U.S.A. Exports⁽²⁾	1,573	1,578	-0.3%	5,832	5,295	10.2%
   Total Wine Operating Segment	166,974	175,770	-5.0%	599,796	580,878	3.3%
   Chile Domestic Market - new business	13,692	14,548	-5.9%	51,030	47,966	6.4%
   Other Revenues	2,534	1,748	45.0%	7,622	7,350	3.7%
   Total Other Operating Segment	16,227	16,296	-0.4%	58,652	55,316	6.0%
   Consolidated Sales	183,200	192,066	-4.6%	658,448	636,194	3.5%

   Total Volume⁽ *⁾ (thousand liters)	4Q16	4Q15	Change (%)	12M 2016 12M 2015		Change (%)
   Chile Domestic Market - wine	17,970	16,265	10.5%	70,680	65,780	7.4%
   Export markets⁽¹⁾	62,124	62,336	-0.3%	219,106	209,287	4.7%
   Argentina Domestic	2,101	1,961	7.1%	7,223	5,405	33.6%
   Argentina Exports⁽²⁾	2,009	2,344	-14.3%	10,065	9,583	5.0%
   U.S.A. Domestic	5,150	5,245	-1.8%	16,951	17,317	-2.1%
   U.S.A. Exports⁽²⁾	537	487	10.2%	1,925	1,602	20.1%
   Total Wine Operating Segment	89,890	88,637	1.4%	325,950	308,974	5.5%
   Chile Domestic Market - New Business	6,195	7,063	-12.3%	25,065	23,837	5.2%
   Total Other Operating Segment	6,195	7,063	-12.3%	25,065	23,837	5.2%
   Consolidated Volume	96,085	95,701	0.4%	351,015	332,811	5.5%

   A verage Price (per liter)	Currency	1,122.5	1,068.8	5.0%	1,024.0	988.7	3.6%
   Chile Domestic Market - wine	Ch$
   Export Markets	US$	2.97	3.05	-2.6%	2.99	3.15	-5.1%
   Argentina Domestic	US$	2.15	2.11	1.5%	1.90	2.15	-11.5%
   Argentina Exports	US$	3.19	3.22	-1.0%	3.12	3.20	-2.5%
   U.S.A. Domestic	US$	5.56	5.14	8.0%	5.46	5.35	2.1%
   U.S.A. Exports	US$	4.40	4.63	-5.0%	4.50	5.04	-10.8%
2. Consolidated Sales in Wine Operating Segment

   Consolidated Sales that come from Wine segment dropped 5.0% during the fourth quarter of 2016 driven by the effects of the increase prices process that began on the second half of the

   year, and a negative effect derived from exchange rate fluctuations, been partially offset by the good results on the domestic markets

3. Export Sales

Export sales from Chile and distribution subsidiaries decreased 7.8% to Ch$120,920 million as compared to Ch$131,136 million in 4Q2015. The result reflects the impact of the devaluations of the different currencies in which the Company commercialize its products in the export markets and flat volumes respect to 2015, which shows a strong impact of the European region, which decrease in volumes 11.2%, explained by the price increase, partially offset by increases in volumes in the rest of the markets, USA and Canada +16.7%, Asia and Oceania +11%, Latin America and the Caribbean +6.1% and Africa And the Middle East with a 7.7% increase in volume.

According to the Chilean Central Bank, the Chilean peso appreciated against the pund (21.9%), U.S. dollar (4.6%), Euro (6.1%), Swedish crown (10.3%), Norwegian crown (2.9%), Canadian dollar (4.6%), Mexican peso (19.4%) and Argentinean peso (37.6%). In the opposite, the Chilean peso just depreciated against the Brazilian Real (11.4%), depreciation that was not enough to offset the negative impact of the other currencies.

Graph 1 Total Export Bottled Volume by Region (Considers Exports from Chile, Argentina, Fetzer and Distribution Subsidiaries) Fourth Quarter 2016

In the fourth quarter, the Premium category is continuously showing an increase in rates over the average sales, highlighting the growth of Super and Ultra Premium categories, that registered a grow of 7% higher than 2015, driven by the sales of the main brands of the company: Don Melchor +9%, Marqués de Casa Concha +38% and Gran Serie Riberas

+24%.