Embotelladora Andina S.A. Annual Report 2019

FY2019 Annual Report · Embotelladora Andina S.A.

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Integrated Annual Report

8EXHIBITS7CORPORATEINFORMATIONchapter.one |

ANDINA AT
A GLANCE

102-6, 102-7, 102-8

3 A

t Coca-Cola Andina we are present in four South American
countries (Argentina, Brazil, Chile and Paraguay) and we have 17,586
collaborators to cover a population of approximately 54 million
inhabitants. This allows us to reach 267 thousand customers.

We are a Company committed to the production and
distribution of soft drinks, water, juices and other products and
our concern is to generate value to all our stakeholders.

We want to be present at every moment or occasion of
hydration of our consumers, generating close relationships and
providing options to each according to their lifestyle.

Our success is sustained on having a great team, which is
committed to providing value and delivering quality products.

INDICATOR

Volume

Sales M US$

Ebitda M US$

Ebitda Margin (%)

Net income (Income attributable to the owners of the controller ) MM US$

Liters of water per liter of produced beverage (2)

Percentage of sales returnable formats (3)

Percentage of sales reduced or zero sugar (4)

Percentage recycled residue (5)

Used energy ratio (6)

Internal environment favorability (7)

(1) UC: Unit Cases 5.678 liters per each unit case.
(2) Liters used / liters of produced beverage
(3) Volume sold in returnable formats / total volume.
(4) portfolio % reduced or zero sugar contents.

2018

2019

UC 751 million (1)

UC 746 million

2,569

502

19.52%

149

2.01

31.3%

18.5%

84.5%

0.33

69%

2,495

491

19.68%

247

1.96

31.7%

20.8% (8)

88.7%

0.32

72%

(5) Tons recycled residue / tons total residue generated.
(6) MJ/liters of produced beverage.
(7) Biannual climate survey.
(8) In 2019 mid-cal sale (less than 5 gr of sugar per each 100 ml)
plus the sale of zero sugar was 28.5%

4,238

M liters sold

17,586

collaborators

million consumers

267

thousand clients

HOME1 ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS2019 INTEGRATED ANNUAL REPORT8EXHIBITS7CORPORATEINFORMATION

SUSTAINABLE VALUE CREATION MODEL ALONG THE VALUE CHAIN
102-9

We create long term sustainable value for all involved in our value
chain. We are actively responsible for delivering quality service to our
customers and consumers, for which we have a committed team.

UPSTREAM

The Coca-Cola Company (TCCC).
At Coca-Cola Andina we produce and
distribute The Coca-Cola Company
(TCCC) licensed products in Argentina,
Brazil, Chile and Paraguay.

Suppliers of raw materials and services
We are responsible for promoting a chain of suppliers
that is environmentally responsible and has respect
for their employees. These include suppliers of raw
materials, such as water, energy, sugar, among others.

Coca-Cola Andina:
bottling and packaging
Process that includes bottling,
packaging, all administrative and
logistics tasks.

M
A
E
R
T
S
N
W
O
D

OPERATION AND
LOGISTICS

Consumers, recycling and recovery
At Coca-Cola Andina we take care of
the complete cycle of our packaging,
it is part of our value creation model.

Clients
we generate shared value with the
fundamental links of the chain, service
models and the delivery of a differentiated
service according to the requirements and
needs of our customers.

Distribution
Process that includes distribution to
customers and distribution centers,
optimizing routes with efficient truck fleets
(own and third party).

2019 generated and distributed value chart:
*All figures expressed in Ch$ millions

"Materiality goes far beyond
economics. It involves the impacts
the Company generates on
stakeholders, regardless of the
economic relevance that this implies."

GONZALO SAID
Vice Chairman of the Board of Directors

102-1

rom Coca-Cola brand soft drinks to
organic teas and plant-based
beverages, we offer some of the
world's most popular beverages.
Our portfolio is evolving to have
beverages for all tastes and
occasions, with or without sugar.

Beer and spirits

Juices and others

Water

2.6%

9.9%

11.1%

Soft drinks

76.5%

Note: Percentages correspond to sales
volume distribution for Coca-Cola
Andina as of 12.31.2019.

102-6, 102-7

24%

22%

12%

16%

32%

Volume

34%

Revenues

Ebitda

38%

34%

35%

Argentina

Brazil

Chile

Paraguay

Extension (in kilometers):

ARGENTINA

CHILE

• Territory: Córdoba, Mendoza, San Juan, San Luis, Neuquén,
almost all of the province of Santa Fe, Entre Ríos, Western
province of Buenos Aires, La Pampa, Chubut, Río Negro, Santa
Cruz and Tierra del Fuego.

• Territory: Antofagasta, Atacama, Coquimbo, Metropolitan
Region, San Antonio, Cachapoal, Aysén and Magallanes.

• Population: 9.9 million.

• Population: 13.9 million.

• Total volume 2019: 239.6 million UC.

• Total volume 2019: 178.2 million UC.

BRAZIL

PARAGUAY

• Territory: Majority of the state of Rio de Janeiro, Espírito

• Territory: All of the Paraguayan territory.

Santo, part of São Paulo and part of Minas Gerais.

• Population: 23.1 million.

• Total volume 2019: 259.3 million UC.

• Population: 7.2 million.

• Total volume 2019: 69.3 million UC.

102-53, 102-3; 102-4;

SCOPE OF THE INTEGRATED ANNUAL REPORT

102-45, 102-46

Corporate office
Av. Miraflores 9153, Piso 7, Renca, Santiago de Chile Tel. (56
2) 2338 0520 | www.koandina.com

ABOUT OUR INTEGRATED ANNUAL REPORT
102-49

PREPARATION CRITERIA
102-46; 102-52, 102-54;102-12

Investor relations contact information
Paula Vicuña | Investor Relations Manager |
andina.ir@koandina.com
Miraflores 9153, Piso 7, Renca, Santiago de Chile
Telephone: (56 2) 2338 0520

Sustainability contact information
Consuelo Barrera | informesanuales@koandina.com
Ruta Nacional 19, Km. 3,7, Córdoba, Argentina
Telephone: (54) 351 496 8304

In 2019 we present our Second Integrated Annual Report, which
reflects the advances in integrating sustainability into our business
model and how it is present in each of the decisions we make

• It follows the guidelines developed by the GRI (Global Reporting

Initiative – GRI) standard, under the comprehensive compliance option.

"Being a multinational company
raises the standard, as well as being
part of the Coca-Cola System"

• Guidelines of the International Integrated Reporting Council (IIRC)

Integrated Reporting Framework.

• The mandatory requirements of General Standard No. 30 of Chile’s

Financial Market Commission have been considered.

• Principles set out in AA1000-APS 2008 Accountability Standard of

inclusiveness, relevance and response to stakeholders.

GONZALO SAID
Vice Chairman of the Board of Directors

• In addition, this Report is a communication on how Coca-Cola Andina

links its performance with the Sustainable Development Goals (SDGs) of
the United Nations Global Compact.

#GOPAPERLESS

Our 2019 Integrated Annual Report will be available in digital version
on our market communication channels: the website and investor
relations app, which you can install on your phones through the App
Store and Google Play. This is part of our commitment to reduce paper
consumption and, as we understand it is in everyone's interest, we
want you to join us in this decision.

DESIGN

PREPARATION PROCESS
102-46

The design of the Coca-Cola contour bottle, elements of Coca-Cola
marketing campaigns, logos and every reference to the brands of The
Coca-Cola Company contained in this Report are registered property by The
Coca-Cola Company. All artistic compositions and photographs contained in
this Integrated Report are the property of Embotelladora Andina S.A.

For the preparation of our second Integrated Report we formed a team
composed of multiple areas, both from our Corporate office and each
of the operations. Once the Report was prepared, it was reviewed and
approved by the Chief Executive Officer and the Board of Directors.

102-14, 102-16, 102-7, 102-23; 102-102-15

9 A

fter being part of the Coca-Cola
system for more than 70 years, at
Coca Cola Andina we continue
offering sources of pride and
satisfaction to our shareholders,
directors and collaborators who
belong to this great Company. And
so, I am pleased to share with you our
Second Integrated Annual Report.

JUAN CLARO GONZÁLEZ
Chairman of the

Board of Directors

2019 has been another year of consistent operating achievements and
outstanding financial results given the execution of a solid strategy
and thanks to our collaborators. We faced huge challenges in the
territories where we operate: political, social and economic instability
in Chile and political changes and its consequent economic volatility
in Argentina. Our business was no stranger to this situation and,
thanks to a robust market position, vast distribution network and the
determination of a great work team, we managed to accompany
our customers and the community, meeting corporate goals and
generating shared value.

I am very proud of the Company we are building and the ties we are
building with all our stakeholders to accomplish the positive impact
we set out to achieve.

I invite you to review our pillars of sustainable value creation and most
recent achievements.

LEADERSHIP IN ORGANIC
AND INORGANIC GROWTH
During 2019 we continued to promote growth through a unique and
diversified product portfolio that allows us to participate in a wide
range of beverage categories and thus continue developing as a "Total
Beverage Company".

In this sense, we launched 36 new products and added the brands of
"Cooperativa Capel", leaders in the pisco market. This agreement,
together with the one reached with Diageo in 2018, allows us to optimize
our extensive commercial, logistics and distribution network in Chile.

We are a Company that is constantly expanding and transforming to
offer suitable options for every consumption occasion and lifestyle,
which is reflected in our 2019 results: sales volume of 746 million
unit cases with a 6.3% increase in sales (Ch$1,779,025 million). These
results place us as the third bottler of Coca-Cola brand soft drinks in
Latin America and the ninth largest in the world in terms of volume,
consolidating as the largest Coca-Cola bottler in Chile,
Argentina and Paraguay and the third in Brazil.

LEADERSHIP IN COSTS & MARKET POSITION
The continuous cost leadership in our operations, an efficient and
integrated supply chain and an extensive distribution network allowed
us to serve with excellence more than 267 thousand customers
distributed in 2.9 million square kilometers and achieve a strong
competitive position in all markets in which we operate.

• In Chile, our leadership in the category of soft drinks continues and
we have a strong position in waters and juices and others, growing in
both categories compared to the previous year. In 2019 we became
leaders in the plain water segment during the second half of the year
and we continue to grow consistently in Monster compared to the
previous year.

• In Brazil, we lead the sector in soft drinks and juices and others. In
2019 we started marketing mineral water produced at our Duque
de Caxias plant, achieving significant growth in that category. On
the production side, for the third consecutive year we received the
Supply Chain Award, which recognizes best practices in the supply
chain among Coca-Cola bottlers in Brazil.

• In Argentina, we lead the category of soft drinks, juices and others.
In addition, we were recognized with the first place in the Global
Customer and Commercial Leadership Awards 2018 in the Route
to Market category, for the digitization and innovation program
developed and that has allowed us to gain market share in most
categories in a country facing a strong economic downturn.

• Finally, in Paraguay we lead all categories and in 2019 we achieved
important growth in each of them. For the eighth consecutive year
we won the Top of Mind recognition, for being the most remembered
and preferred brand by consumers.

HOME1 ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS2019 INTEGRATED ANNUAL REPORT8EXHIBITS7CORPORATEINFORMATION ECONOMIC VALUE CREATION
The EBITDA of Ch$348,869 million in 2019 involved an
increase of 7.4% compared to 2018 and the EBITDA Margin
of 19.6%, meant an expansion of 19 basis points. Income
attributable to Coca-Cola Andina’s controllers was Ch$173,722
million, 79.8% higher than in the previous period, and net
margin reached 9.8%.

SOCIAL COMMITMENT
AND SUSTAINABLE DEVELOPMENT
Another key pillar of the strategy is our strong commitment to
sustainable development. At Coca-Cola Andina we adhere
to the Global Compact, support the principles of the Global
Compact and develop the Sustainable Development Goals
(SDGs). This Integrated Annual Report reflects the progress in
each of them:

Our ambitious goal of consolidating ourselves as a total
beverage company, diversifying the product portfolio, urges
us to be agile and flexible to actively respond to the needs
and trends of our consumers. In this sense, we have a reduced
or sugar-free version for each of our products and this has
been our growth engine in 2019, with increases in the mix of
sales of light, mid-cal and sugar-free products and the
reduction of the calorie indicator per liter of beverage sold in
all our operations.

As water stewards, in the continuous search for more efficient
and sustainable processes to reduce consumption, in 2019
and for the second year in a row, we have managed to lower
the water ratio used for each liter produced from 2.01 to 1.96 at
the aggregate level of our four operations, mainly due to the
investment in the Duque de Caxias' effluent treatment plant.
We also continue boosting projects in communities where we
operate, such as Water Conservation at the Mbaracayú Reserve
in Paraguay, the Safe Water program at rural schools in the
territory of Coca-Cola Andina Argentina and the Reforestation
project of the Renca hills Metropolitan Park in Chile.

At Coca Cola Andina we have an important role and a great
responsibility in achieving a World Without Waste. For this reason:

• We are strengthening our returnable bottle strategy

throughout all operations, making it the best performing
packaging in a circular economy. In 2019 its relevance grew
in most of our franchises, driven by the launch of the single
bottle for all flavors and by the capitalization of investments
made at the Duque de Caxias plant in Brazil, with an increase
of more than 2 points in the returnables mix in that country
and with huge opportunities to continue growing in 2020.

• In addition, we continue promoting initiatives to collect single-
use bottles. We founded, together with 20 companies, the
First Integrated Management System in Chile that has already
launched three packaging collection pilots in municipalities
of Santiago. We continue with the "Coca Cola Andina -Kyklos
Environmental Education Program”, "Recycling for Brazil" and
the sponsorship of cooperatives in Argentina. In four years,
we managed to almost triple the amount of tons collected
(6,234 tons) and increase the amount of recycled material
incorporated in the bottles in our operations in Argentina
and Brazil (5.7% average). Also, in our plants and distribution
centers we carried out extensive work of awareness of waste
segregation at source achieving highly positive results, such
as Coca-Cola Andina Chile where five distribution centers
obtained the "zero waste" certification.

• The sustainable management of our packaging is a

commitment that inspires us to be protagonists for many
years; constantly redesigning our packaging to be 100%
recyclable achieving our goals set year by year in this area.

We continue to make great efforts to reduce the energy we use.
In 2019, with a more complex and diverse product portfolio,
we achieved a 3% reduction in the energy we use (Mj/liters
produced). In addition, we lowered the weight of the bottles,
which meant a lower emission of 1,015 Tn CO2 equivalent.

In 2019 and for the fourth consecutive year, we were ratified as
part of the Dow Jones Sustainability Index Chile and, for the third
consecutive year, as part of the Latin American Integrated Market
Sustainability Index. This demonstrates the importance of shared
value in our Company, for our investors and for all our stakeholders.

PASSIONATE ABOUT WHAT WE DO
All this is possible thanks to the efforts of a team of people who work every
day with experience, talent, discipline and passion with the objective of
positioning our Company as a beverage market leader.

We firmly believe that our team is the cornerstone of business sustainability
to promote an agile and dynamic culture that supports growth goals. At
Coca-Cola Andina, we make sure their voices are heard and, in 2019, the
organizational climate survey reflected this deep commitment given its
satisfaction level, with a historical adhesion figure of 93% and growing the
overall favorability from 58% to 72% since it was implemented in 2012.

These results encourage us to remain focused on promoting a culture that
supports a safe, innovative and inclusive work environment, which promotes
empowered and motivated collaborators to capitalize on opportunities.

INCLUSION AND DIVERSITY
Inclusion and diversity are core values of our Company. In 2019 we made
progress in this area by creating the Policy of Respect for the Person,
Diversity and Inclusion, achieving the goal in Chile of 1% of people with
disabilities in our payroll and boosting female presence in different areas
and positions, as is the case of truck drivers in Brazil and plant operators
in Chile. In this line, in Paraguay we empowered more than 2,500 women
in our value chain through the "Start-Up Together" program.

2020 CHALLENGES AND OPPORTUNITIES
Our strategy continues alive and dynamic, with positive results for
more than 70 years. During 2020 we will renew our commitment to
growth, setting challenging financial, market, social, environmental
and corporate governance objectives, within a framework of ethics
and transparency.

Latin America is the fastest growing region worldwide in terms of
consumption of Coca-Cola products and second in terms of size.
Our franchises present great opportunities to continue developing,
especially in Brazil, Argentina and Paraguay where per capita
consumption rate has the most potential.

I wish to continue building together a strong Company, with a culture
of efficiency and ready to capture opportunities. There is much to be
done and we are aware of the social, economic and environmental
volatility and complexity in which we are immersed. However, we will
continue focused on building a sustainable future, creating long-term
value for all stakeholders and the communities where we operate.

I invite you to renew together
this commitment for this year.
that is beginning.

OUR
HISTORY

1946:
Embotelladora Andina S.A. is
established with the license
to produce and distribute
Coca-Cola products in Chile.

1955:
Andina is listed on
the Santiago Stock
Exchange.

1985:
Current controlling shareholders
acquire 50% of the Company.

1994:
Andina listed on NYSE.
Acquisition of Rio de Janeiro
Refrescos in Brazil.

1995-96:
Acquisition of
Coca-Cola bottler in
Rosario and
Mendoza, and
packaging business
in Buenos Aires.

1996:
TCCC acquires 11% of Andina.

2000:
Acquisition of Niteroi, Vitoria
and Governador Valadares
(NVG) Coca-Cola bottler.

2007-08:
Joint venture (50/50) with
the Coca-Cola System for the
water and juice business in
Brazil and Chile.

2019

2008:
Andina incorporates
Benedictino to its water
portfolio.

2011:
New Plant in Chile
begins operations.

2012:
Merger with Coca-ColaPolar
(new territories in Argentina,
Chile and Paraguay).
Andina acquires 40% ownership
in Sorocaba Refrescos in Brazil.

2013:
Andina acquires
Ipiranga, a
Coca-Cola bottler
in Brazil.

2017:
Andina begins distributing
Ades products, reinforcing the
growth of new categories.

2018:
Acquisition of Guallarauco.
New agreement with
Diageo for the distribution of
alcoholic beverages, The new
Duque de Caxias plant begins
operating in Brazil.

2019:
New agreement for the
distribution of Pisco Capel
in Chile.

2016:
Creation of the Coca-Cola del
Valle Ventures S.A. joint venture
along with Coca-Cola de
Chile S.A. and Embonor for the
production and distribution of non-
carbonated and still beverages.

For more information on
the company's timeline
visit our website.

SUSTAINABLE
VALUE CREATION
STRATEGY

he Labeling Act is a clear
example that we should be
part of something bigger and
that all industries have a shared
responsibility to make this world
a better place.

The third stage of Law No. 20,606 (1) entered into
force on June 7, 2019, increasing demands for the
reduction of critical nutrients in food.
417-1

(1) : Law No. 20,606 on Labelling, is applicable to the operation in Chile.

Significant and rapid changes in consumer preferences are being observed
in the food industry. This is a challenge to which we must anticipate in an
agile and flexible way, incorporating consumer knowledge into decision-
making processes in order to adapt to the different scenarios.

EXPANDING THE MIX OF SUGAR-FREE PRODUCTS

At Coca-Coca Andina we have been preparing for this change for many
years and an example of this was the Master Brand transformation, so
that the consumer would dare to drink Coca-Cola without sugar with no
impact on the label. With this, we began increasing product availability
and coverage. Then, in all the countries where we operate we launched
a strong campaign to boost the consumption of sugar-free products and
reduced the composition of sugar across the entire product mix. Flavors
of soft drinks and juices were reformulated, which led to changes in the
product mix, growing consumption of sugar-free products.

Increased Relevance of Stills(1)
Our portfolio has grown significantly in recent years and Chile has
led this progress. Currently, per capita consumption of regular soft
drinks is very high; however, there is a transfer of consumers from soft
drinks to other beverage categories. On the other hand, the previously
mentioned situation is accentuated by the entry of new consumers who
are migrating mostly to the water market, where there is a double-digit
increase. What is happening with higher value-added products, such
as juices is also relevant. We have observed stagnation in the juice
segment containing 5% or less of fruit, a situation that is repeated in
most of the countries in which we operate.

Mainstream juices show strong growth, mainly in the premium segment,
which has expanded by approximately 25% per year.

In addition to the migration to the water market, there is an increase in other
plant based products, tea and mate in the markets in which we operate.

MIX SUGAR FREE SSD´S

2010

2019

MIX STILLS

Argentina

Brazil

Chile

Paraguay

10%

18%

17%

14%

31%

18%

Argentina

Brazil

Chile

Paraguay

2010

13%

2019

15%

13%

29%

19%

(1) Stills: this segment encompasses all non-soft drink beverages.

Limits on liquid foods
Chile

1ST STAGE

2ND STAGE

3RD STAGE

CALORIES

100 (kcal/100ml)

80 (kcal/100ml)

70 (kcal/100ml)

30%

SODIUM

100 (mg/100ml)

SUGAR

6 (g/100ml)

5 (g/100ml)

16,7%

SATURATED FATS

3 (g/100ml)

% corresponds to the variation between the first and third stage

Sustainability awareness in
consumption is a clear trend.

Milestones of the REP (1) Act
GRI: 417-1

The REP Act is an economic instrument for waste management,
requiring all producers to organize and finance waste management
derived from the products they commercialize.

In a recent Nielsen research (FMCG
and Retail Insights, 2019), 73% of people
globally acknowledged being willing
to change their consumption habits to
reduce impact on the environment.

Today, sustainability considerations determine consumers’
choices, especially among younger and price-sensitive
consumers. This is accentuated in a context where
globalization and the media provide greater awareness of
environmental and socioeconomic crises around the world.

Sustainable practices can develop greater consumer confidence
towards businesses, increasing brand and customer loyalty and
strengthening their competitive advantage.

REP Bill
is presented

Act 20,920
is officially
published

2015

Executive enters the
bill and it is approved
by legislators

Regulating rules
are issued

First product
declaration

The Supreme Decree
draft for packaging
and containers
is issued in June

June – August
draft public
consultation
process

Public
consultation for
Ecodesign plan

2018

At Coca-Cola Andina our responsibility in the care of the
environment is also clear. We have taken on this
responsibility with more strength since January 2018, when
The Coca-Cola Company’s CEO James Quincy spoke of
the importance of recycling and collecting packaging
within the framework of the World Economic Forum. As a
bottler, this keeps us working hard to meet commitments
to achieve a waste-free world.

Supreme Decree for
packaging and containers
expected for March 2020

2022

Obligation to
meet goals

Global goals:
Sub-categories:
Plastic: 3%
Glass: 11%
Soft drinks cardboard: 5%

(1): Law No. 20,929. Sets the Framework for Waste Management, Extended Producer
Responsibility and Promotion of Recycling. This regulation applies to Chile.

GROWTH OF DIGITAL CHANNELS

A pace of life with less time availability and a change in
consumption habits have meant significant growth in digital
channels. To a greater or lesser extent, this has also occurred
in the countries in which we operate and that has led us to
pay attention to the actors that have become relevant in that
business, such as Rappi, Pedidosya, etc.

The digital channel is very relevant since brands play a key
role. This is mainly because when consumers use this route
they do not do so with a generic product, such as a soft
drink or coffee in mind, but they go after a specific brand.

With the increase of e-commerce and remote channels
allowing people more time, consumers take advantage
of these new leisure instances to be outside home more
often. This, in turn, leads to an increase in consumption in
restaurants, cafes and hotels.

In this context, we are activating the use of several digital
channels, using a cooperative approach with our customers
and investing in new training for operating teams.

micoca-cola.cl users grew by9,300

clients compared with the
previous year.

GRI: 102-14; 102-15, 102-16-102-17

To achieve our mission, at Coca-Cola Andina
we developed the following strategy:

Beverage benefits

Energy management
and climate protection

MISSION
102-14; 102-15, 102-16-102-17

Add value by growing in a
sustainable way, refreshing our
consumers and sharing moments
of optimism with our clients.

VISION
102-14; 102-15, 102-16-102-17

Lead the beverage market
by being recognized for our
management of excellence,
people and welcoming culture.

VALUES
102-14; 102-15, 102-16-102-17

• Integrity

• Teamwork

• Attitude

• Austerity

• Results-oriented

• Customer Focus

Sustainable
packaging

Water stewardship

Community

Work environment

Corporate Governance

SUSTAINABLE GROWTH
We care about giving our shareholders a long term
profitable and sustainable growth opportunity. At
Coca-Cola Andina we create sustainable value for our
shareholders and stakeholders:

• Increasing productivity in asset utilization and cost
structure optimization.

• Growing in a sustainable, organic and inorganic way, in an

environment of ethics and transparency.

• Leading the beverage market, refreshing our consumers

and sharing moments of optimism with them.

• Gaining their preference with high quality products to

diversify consumption habits and occasions, offering high
level of availability, accessibility and service.

• Creating shared value with our stakeholders.

• Constantly developing processes of excellence and
efficiency in the use of resources, driving permanent
innovation in new and better ways to build economic, social
and environmental value.

To achieve it, our strategy is based on five pillars:

AGILITY
Is a key element to get ahead of the changing requirements of
consumers in the markets where we operate. This requires listening and
adapting quickly. We are aware of the role our stakeholders play in the
value chain. They are a key link in growing the business and continuing to
be positive leaders for those around us.

PEOPLE LEADERSHIP
Cola-Cola Andina has defined a strategic agenda that seeks to attract,
develop and retain the best talent in order to respond to business
challenges. The work environment management and human capital
development agenda involves a balanced offer of work well-being,
which we consider key to ensuring that the best people want to
develop their career at Coca-Cola Andina.

• Promoting high levels of human capital management
performance, knowledge and information systems.

• Fostering well-being and development in the workplace.

As change makers, we recognize that it is key to give opportunities
by making inclusive hires, offering conditions so that they can be
professionally productive and being part of this more diverse and
valuable great team.

OPERATING EFFICIENCY
The Company aims to continue the search for efficiencies in all its
processes, particularly in production and logistics. With the addition of
new technologies, together with the correct investment assessment,
we can focus on cost reduction, resource use and risk mitigation.

MANAGE FUTURE PORTFOLIO
It aims to capture the multiple opportunities and challenges in each of
the markets in which Coca-Cola Andina operates. The Company has
focused on continuing to expand its portfolio, in order to accompany
the needs of our consumers.

OPTIMIZE COST MANAGEMENT
Within the framework of ability development and knowledge
management process, we plan and manage to coordinate the work
of our four operations in an orderly and synergist manner. With the
development of multi-operating work teams, we carry out simultaneous
deployments. In this way, the most experienced countries support and
share this knowledge with the rest of the organization, standardizing
the practices of excellence in all the territories where Coca-Cola Andina
operates, capturing value and knowledge and reducing the time to
implement improvements and innovations.

At Coca-Cola Andina we understand that managing our environmental and social performance is fundamental to our long-term success. We
network with the sustainability committees of each of our operations to identify and interact with their different stakeholders: The Coca-Cola
Company, collaborators, clients, investors and shareholders, community and governments. Thus, our Company will be sustainable in the long
term, making them participate and creating shared value with its stakeholders.

MATERIALITY
AND RISKS

MATERIALITY
102-44

18 A

ccording to the Global Reporting
Initiative (GRI), materiality refers
to "those aspects that reflect the
significant, social, environmental and
economic impacts of the organization
or those that could exert substantial
influence on the assessments and
decisions of stakeholders".

The topics we identify as our material topics are those that
matter to our stakeholders and those that subsequently affect
the creation of value for all of them.

This year we made a cross between the material issues and our
risk matrix, to highlight those subjects that are being addressed
from risk management.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS8EXHIBITS7CORPORATEINFORMATION2019 INTEGRATED ANNUAL REPORTPERIODICITY
A materiality study update is carried out every two years at
Coca-Cola Andina. The last was made in 2018 and
each result is submitted to the Ethics and Sustainability
Committee for validation.

Beverage benefits
• Product quality and excellence
• Product well-being
• Responsible marketing

Community
• Client development
• Supplier development
• Economic and social development of local communities
• Human rights

Corporate Governance
• Transparency in business management
• Relationship with stakeholders
• Risk management

Energy management and climate protection
• Efficient product distribution
• Energy management

Sustainable packaging
• Sustainable packaging and waste management

Work environment
• Management of internal work environment, life

quality and people development

Water stewards
• Water management

RISK MATRIX COMPARISON
102-44, 102-40; 102-15

Material topics were crossed with the risk matrix of
Coca-Cola Andina. This matrix is defined for each of the
countries in which the Company operates.

The risk matrix contains the specific individual risks
identified. For the purposes of the current comparison,
several similar risks or risks with very small differences
between them were consolidated, resulting in a list of 30
global risks, which were related to each material topic.

s
r
e
d
l
o
h
e
k
a
t
s
r
o
f
e
c
n
a
v
e
l
e
R

Corporate Governance

Water management

Beverage benefits

Sustainable
packaging

Energy management
and climate protection

Work environment

Community

Importance in Coca-Cola Andina's strategy

The above chart shows that both the stakeholders and the management of Coca-Cola Andina place greater importance
on the issues of water management, sustainable packaging, corporate governance and beverage benefits.

SUMMARIZED MATERIALITY MATRIX
102-44, 102-40

While the prioritization of topics has evolved, they remain
the most relevant and important to our stakeholders and our
business. This year we have consolidated the material topics
into seven large groups, with subtopics in each of them.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS8EXHIBITS7CORPORATEINFORMATION2019 INTEGRATED ANNUAL REPORT

COMMITMENTS
OF MATERIAL
ISSUES

GRI: 102-44, 102-40; 102-15

his year we have reviewed the risk matrix
and linked it to the materiality matrix. We
grouped key topics into seven groups that
the Company must prioritize and manage.

As part of the Global Compact and our commitment to furthering the
Sustainable Development Goals (SDGs), we have linked the
management of our material issues with the latter. Consequently,
each chapter identifies the SDG to which it is contributing in the
management of our material issues.

MATERIAL ISSUE

SDG

OUR VIEW

HOW WE MANAGE IT

WHY IT IS MATERIAL

RELATIONSHIP WITH OUR RISKS

Beverage Benefits
103-1, 103-2, 103-3

Material subtopics

• Quality, product

excellence.

• Product well-being

• Responsible marketing

3
12

Our commitment is to provide options
to be and feel good in the categories
of energy, hydration, nutrition and
relaxation.

We are a total beverage Company
and we have a wide and diverse
portfolio that allows us to connect
with all our consumers, in their
changing consumption habits, at
different times of the day.

• Kilocalories sold over total liters sold.

• Light and zero sales over total

beverages sold.

• Calories sold compared to the total

number of liters sold.

We understand that one of the
concerns of our stakeholders is
the amount of calories and sugar
in our beverages, the quality of
our products, as well as that our
marketing practices are responsible.
It is an important issue for consumers
and for business sustainability.

• Portfolio diversity.

• Failure to supply raw materials.

• Product production and distribution

failures.

• Sales and advertising restrictions.

• Perception of health harmful products.

Sustainable packaging
103-1, 103-2, 103-3;
310-1, 301-2

• Sustainable packaging

and waste management

11
12
13
14

We focus our packaging on reducing,
recycling and reusing materials.

• Solid waste generation: grams of

waste per liter of beverage produced.

Our commitment, along with The
Coca-Cola Company is to help collect
and recycle one bottle or one can per
each one we sell by the year 2030
(“World Without Waste” commitment).

• Solid waste recycling: percentage of
recycled waste to waste generated.

• Mix of returnables.

• Collection: tons of PET bottles

collected.

• Recycled resin: tons of resin
recycled from the total used.

Government and community
concerns about caring for the
environment and reducing the effects
of climate change.

• Supply of returnable bottles.

• Claims for non-collection/ recycling

of packaging.

They are key aspects to manage for
business sustainability.

• Failures or non-compliances in

waste treatment.

• Pollution.

SDG

OUR VIEW

HOW WE MANAGE IT

WHY IT IS MATERIAL

RELATIONSHIP WITH OUR RISKS

6
13
15

7
11

5
8
15

Water management
103-1, 103-2, 103-3;
303-1,303-2, 303-3,
303-4, 303-5

Energy management and
environmental protection
103-1, 103-2, 103-3;
302-1,302-2, 302-3, 302-
4, 302-5

• Efficient distribution of

our products.

• Energy management

Work environment
GRI: 103-1, 103-2, 103-3;
102-7, 102-8,

Management of the
internal work climate,
quality of life and
development of people

Water is a fundamental resource for life
and, aware of it, we seek responsible use,
develop processes that allow greater
efficiency in its consumption and
replenish this vital resource to nature.
Coverage is total, because it reaches
each of our operations and also all the
communities with which we interact. We
have a strategy that has four strategic
focuses: Reduce, Reuse, Recycle and
Replenish. Each country has a different
reality of both quality and quantity, which
offers us different challenges.

• Water consumption efficiency: the

amount of liters needed to produce
one liter of beverage.

Water is an essential resource for
life and access to this resource is a
human right.

• Water availability

• Claims/community opposition

• Water replenishment: each project

has a third party that audits.

• Access to water: number of

beneficiaries.

• Pollution

At Coca-Cola Andina we understand
that it is key to identify and manage
the environmental impacts of our
operations throughout the value
chain. We work continuously to
optimize our processes, through
a more efficient use of our
resources and incorporation of new
technologies that allow us to reduce
greenhouse gas (GHG) emissions in
our operations.

• Efficiency in energy consumption:

Energy used (megajoules) per each
liter of beverage produced.

• Equivalent carbon dioxide emissions.

Scope 1; Scope 2 and Scope 3.

• Emissions per packaging lifecycle.

The efficient use of energy not only
generates economic benefits for the
Company, but also for the community
at large, as it makes available a scarce
resource and public good. Therefore,
all our stakeholders have conveyed
to us their concerns about this, the
responsible use of this resource and
the active protection of climate change.

• Energy efficiency

• Availability of raw materials and

supplies

• Sales and advertising restrictions

• Thefts (facilities and on route)

• Production and distribution failures

We promote a safe and welcoming
work environment. We believe that
motivated people form the basis of
business sustainability, which allows
to build a better company.

• Occupational safety.

• LTIR (number of accidents).

• LTISR (accident severity).

• Turnover.

• Internal work climate: biannual

survey

• A succession plan is monitored to
ensure the sustainability of work
environments.

• Relationships with collaborators

• Accidents

• Non-compliance with rules /

regulations

• Strikes

• Claims / community opposition

• Relationship with contractors

Nothing big has been done in the
world without great passion and
teamwork, where the whole is more
than the sum of the parts. That is the
synergy that characterizes us and the
one that we continue to strengthen,
confident that when we surround
ourselves with people passionate to
pursue a common purpose, anything
is possible. We are 17,586 employees
throughout the four operations.

We seek to provide our employees
with the best place to work,
convinced that happiness in the
workplace is fundamental to the
development of our activities, the
well-being of our people, economic
growth and, ultimately, the success of
organization.

SDG

OUR VIEW

HOW WE MANAGE IT

WHY IT IS MATERIAL

RELATIONSHIP WITH OUR RISKS

Community
103-1, 103-2, 103-3;

• Client development

• Supplier development

• Economic and social
development of local
communities

• Respect for Human

Rights

Corporate Governance
103-1, 103-2, 103-3

• Transparency in business

management.

• Relationship with its

stakeholders (Coca-Cola,
customers, community,
etc.).

• Risk management

11
8

We seek to contribute to the
progress of the communities where
we develop our activities, through
programs to foster local economies,
generate opportunities and improve
people's quality of life.

• Customer satisfaction.

• Percentage of domestic suppliers

compared to the total.

• Percentage of human rights

evaluated suppliers.

• Number of people impacted by the
benefits of developed programs.

At Coca-Cola Andina we have
taken on the role to provide for
the development of communities,
contributing to public goods, which
improve the quality of life of people.

• Political-social conflicts

• Reputation

• Complaints/opposition from the

community

• Relationships with contractors

• Price discrimination

• Strikes

• Taxes (selective consumption and

municipal)

5
8
10
12
16

It is essential for us to safeguard ethical
and responsible action in all the places
where we operate. We have a strong
Corporate Governance structure.

• Audit approvals

• Investor relations metrics.

• Percentage of risk tolerance.

Our Corporate Governance system
and management become an
essential part of creating value not
only for shareholders, but for all our
stakeholders.

• Collusion / Corruption / Bribery.

• Abuse of dominant position.

• Price discrimination.

• Taxes (selective consumption and

municipal).

• Rules/regulatory violations.

Risk management:

• Natural disasters.

• Fires and explosions.

• Emanations.

• Raw material supply failures.

• Non-compliance. Rules/regulation.

• Relationships with contractors.

• Strikes.

GRI: 102-44, 102-40; 102-15

e are convinced of the value of
transparency and therefore we will
continue to take on the challenge
of improving the quality and
scope of our reports, increasing
the corporate, environmental and
social governance aspects, as
stakeholders require it.

We continue adhering to GRI (Global Reporting
Initiative) guidelines in a Comprehensive manner
and developing our Integrated Annual Report.

From the seven groups of material topics and with
the aim of continuing to grow sustainably, we
propose challenging next steps:

FINANCIAL MARKET
We will expand the development of policies and procedures to provide information on the evolution
of our businesses, our current and future view of the Company.

We will strengthen the Investor Relations Area, which does this work under the principles of equality,
transparency and fluency, adding investor communication channels, as well as online tools to
respond to the needs of public information. We will actively participate in discussions with regulatory
bodies to develop ESG management indicators and reports, which allow benchmarking and
dissemination of good practices to the financial market.

CONSUMERS
We will investigate and conduct different surveys and inquiries that allow us to anticipate needs
and changes in consumer tastes, as well as new requirements, in addition to always ensure the
supply of high quality products and services in the market, making constant investments that allow
us to maintain and improve our standards.

ENERGY AND CLIMATE
The new regulations and concerns of our stakeholders drive us to continue furthering work on an
environmentally friendly business model. In this sense, we will assume the leadership to make an
efficient implementation of the REP Law in Chile, in pursuit of the objectives of regulation and responding
to the demands of society in general. We believe that is what corresponds to our role in the industry.

We will expand the measurement of our carbon footprint and implement projects that positively
impact those most critical processes.

We will develop actions and processes to expand the implementation of clean energy for all our
operations

We will make investments to increase distribution fleets efficiently in the use of fuels and we will
place cold equipment in customer facilities that reduce their energy consumption.

SUSTAINABLE PACKAGING
We will increase the supply of quality packaging with the environment in mind and the ease of
recycling and implement greater scope in the collection models, with the aim of strengthening the
circular economy and the value of such packaging.

We will increase the use of recycled resin (Bottle to Bottle) in our PET bottles, extending the reach to
all operations.

Recycling projects will be monitored in the community to achieve sustainability and autonomy for
recyclers. The objective is to understand the chain and improve the operating conditions of these
key links, not only from an environmental point of view, but because of the role it has in improving
the social, economic and family conditions of collectors, working together with other social actors,
NGOs and public bodies.

WATER
We will update the diagnosis of risks and opportunities to optimize and redesign water use
according to the current and future water quality and conditions of the territories where we operate.
We will increase the demands and objectives in the control of water use management, incorporating
measurements at each stage of the process: entry, use and disposal.

We will invest in innovative technologies to use less water in the production of our products, with
the challenge of maintaining the incorporation of new categories into the portfolio and returning the
water used in our operations to the environment with a quality fit for animal life.

We will train key teams in water resource management, deepening awareness of the responsibility
of the water resource.

We will activate projects to reuse treated water as a raw material, seeking the synergy of our efforts
with other initiatives.

VALUE
CREATION

102-16; 102-17; 205-1; 205-2

t Coca-Cola Andina we are
committed to building a culture
of integrity, focused on doing
things right, where the dignity
of people, the orientation
towards the common good, the
values and the sense of mission
of the Company, are our way of
doing things.

We take care of measuring and detecting our opportunities and
threats. It is essential for us to safeguard ethical and responsible action
in each of our activities and in all the places where we operate.

In accordance with the previous, the Company is constantly
concerned with training all its employees in the knowledge of
this Prevention Model and of disseminating internal policies and
processes, to generate an ethical and transparency culture.

Every day we strongly encourage those actions that allow us to return
to society what it has given us. In this sense, we are responsible for
supporting the development and improvement of the communities
where we are present.

With this is mind, our corporate governance system and corporate
governance management become an essential piece to create value
not only for shareholders, but for all our stakeholders.

Commitment to sustainable value creation within a framework
of transparency, ethics and corporate responsibility is a strategic
objective of our Corporate Governance. For this we have a structure
that allows us to integrate our policies and procedures in all
our operations, which is achieved, among other things, through
the mitigation of risks, with reliable information and adequately
safeguarding assets.

Consequently, at Coca-Cola Andina we have of Crime Prevention
Model according to the provisions of Law No. 20,393, which was
certified by the company MC Compliance S.A.

Training hours per collaborator on compliance issues
205-2

1.06 hrs
91%

Percentage of collaborators that consider work
conditions to be ethical, honest and transparent.

102-14, 102.-16, 102-18; 102-19; 102-20, 102-21;102-22;102-23; 102-24;
102-26; 102-33; 102-34; 102-36; 102-36;

(1)

OBJECTIVES OF OUR CORPORATE
GOVERNANCE MODEL INCLUDE:
102-20, 102-33

• Ensure the generation of sustainable value of the

Company, both economically and financially, socially
and environmentally.

• To foster a culture of business ethics that helps the

Board and management prevent potential irregularities.

• Provide an effective framework for transparency, control
and responsible management, establishing policies and
rules for decision-making.

• Take care of corporate reputation to contribute to long

term value creation.

• To enhance the transparency and reliability of the

Company's financial information.

• Control management efficiency, process improvement

and regulatory compliance.

COMPANY OWNERSHIP
102-5; 102-19

Total

% Ownership

Controlling Group (1)

406,505,843

43.0%

Others

340,283,287

35.9%

Coca-Cola

69,348,241

7.3%

AFP-Chilean Pension Funds

108,019,189

11.4%

ADR

Total

22,414,044

2.4%

946,570,604

100.0%

1 See description of Controlling Group in chapter 7, page: 93.

TWELVE MAIN SHAREHOLDERS

Series A

Series B

Total Shares

Ownership (%)

Coca-Cola de Chile S. A.

67,938,179

Inversiones Cabildo SpA*

52,987,375

49,650,863

102,638,238

Inversiones SH Seis Limitada*

52,989,375

37,864,863

Banco de Chile on account of third parties

26,109,840

33,172,846

Banco Santander - JP Morgan

9,439,722

42,056,015

Inversiones El Olivillo Limitada*

Inversiones Nueva Delta S.A.*

46,426,645

90,854,238

59,282,686

51,495,737

46,426,645

Banco Itaú on account of Investors

13,955,137

32,449,429

46,404,566

Inversiones Nueva Sofía Ltda.*

2,985,731

25,678,583

Inversiones Playa Amarilla SpA*

13,513,594

8,513,594

The Bank Of New York Mellon

2,461,146

19,952,898

Inversiones Los Robles Limitada*

9,788,363

6,638,363

28,664,314

22,027,188

22,414,044

16,426,726

7.2

10.8

9.6

6.3

5.4

4.9

3.0

2.3

2.4

1.7

Total

345,021,752

255,977,454

600,999,206

63.4

*Company related to Controlling Group

RIGHT TO VOTE AND ELECTION OF DIRECTORS
102-19

Directors may or may not be shareholders, they will last three years in their
position and may be reelected for an indefinite number of periods.

Our social capital is divided in Series A and Series B shares, both
preferred and without nominal value, with the following
characteristics, rights and privileges:

Holders of the Series A have the right to choose 12 of the 14 directors.

Holders of the Series B shares have the right to choose two
directors. The preference of Series B consists only of the right to
receive all and any dividends that the Company distributes per
share whether interim, final, mandatory minimum, additional or
eventual, increased by 10%.

The preference of Series A and Series B shares will last for the term
that expires on December 31, 2130. Upon expiration of this term,
Series A and B will be deleted and the shares which form them will
be transformed into common stock without any preference

NOMINATION AND ELECTION PROCESS
102-18; 102-24

At Coca-Cola Andina we do not have a policy other than the one
established by Chilean law regarding the proposal by a shareholder
of any candidate to be director of the Company. Accordingly, any
interested shareholder may attend the Shareholders ‘ Meeting and
express their proposal for a particular candidate for director, when an
election takes place.

COMPOSITION OF THE BOARD
OF DIRECTORS AND DIVERSITY
102-18; 405-1

Our management is exercised by a Board of Directors composed
of 14 members, elected every three years by shareholders at the
General Shareholders' Meeting. The last election of directors took
place at the General Shareholders' Meeting held April 19, 2019.
They are elected to the Board by separate votes of Series A and
Series B shareholders, as follows: Series A shareholders elect 12
directors and Series B shareholders elect 2 directors. Directors
may or may not be shareholders of the Company, shall last three
years in their duties and may be re-elected indefinitely.

The Company's Board of Directors meets monthly, according to a
previously established agenda. The topics to be addressed in each
session are determined according to the interests and needs of
the Company, and in order to cover all those matters that are
relevant to the development of the business.

GEORGES DE BOURGUIGNON ARNDT
Director / Economist
Year of entry: 2016
RUT: 7.269.147-4

JOSÉ ANTONIO GARCÉS SILVA
Director / Business Administrator
Year of entry: 1992
RUT: 8.745.864-4

COMPOSITION OF THE BOARD OF DIRECTORS(1)
102-8; 102-18; 102-22; 102-23; 102-27; 405-1

GONZALO SAID HANDAL
Vice Chairman of the Board /
Business Administrator
Year of entry: 1993
RUT: 6.555.478-K

JUAN CLARO GONZÁLEZ
Chairman of the Board / Entrepreneur
Year of entry: 2004
RUT: 5.663.828-8

G
J
F
P
E
28 M

FELIPE JOANNON VERGARA
Director / Economist
Year of entry: 2018
RUT: 6.558.360-7

ENRIQUE RAPETTI
Director / Accountant
Year of entry: 2016
Foreign Citizen

E
A
S

PILAR LAMANA GAETE*
Director / Business Administrator
Year of entry: 2017
RUT: 8.538.550-K
*Independent director of the Company.

ARTURO MAJLIS ALBALA
Director / Attorney at Law
Year of entry: 1997
RUT: 6.998.727-3

G
R
R

ROBERTO MERCADÉ
Director / Economist
Year of entry: 2019
Foreign Citizen

J
G

GONZALO PAROT PALMA*
Director / Civil Industrial Engineer
Year of entry: 2009
RUT: 6.703.799-5
*Independent director of the Company

MARIANO ROSSI
Director / Business Administrator
Year of entry: 2012
Foreign Citizen

SALVADOR SAID SOMAVÍA
Director / Business Administrator
Year of entry: 1992
RUT : 6.379.626-3

RODRIGO VERGARA MONTES
Director / Business Administrator
Year of entry: 2018
RUT: 7.980.977-2

(1) :The date of appointment of this Board of Directors
was April 19, 2019 and Mr. Roberto Mercadé was
appointed on April 24, 2019.

Note: The Board of Directors incurred in expenses
totaling Ch$ 566,259,838, for training, consultancy
and audit expenses, among others.

RUT: Chilean tax ID

Following we identify those
people who are not currently
directors of the Company, but
who were directors within the
last two years:

SUSANA TONDA MITRI
Business administrator-Argentinean
RUT: 5.500.244-4
Elected on April 21, 2016 as director.
Date of termination in office: March 13, 2018.

JUAN ANDRÉS FONTAINE TALAVERA
Business Administrator-Chilean
RUT: 6.068.568-1
Elected on April 26, 2013 as director.
Date of termination in office: February 27, 2018.

KARIM YAHI
Auditor-French-Foreign citizen
Elected on April 26, 2017 as director.
Date of termination in office: April 19, 2018.

MANUEL ARROYO
Business administration and law degree.. Spanish -
Foreign Citizen
Elected on April 19, 2018 as director.
Date of termination in office: April 24, 2019.

The Directors Messrs. Eduardo Chadwick Claro, José
Antonio Garcés Silva, Gonzalo Said Handal and Salvador
Said Somavía hold an ownership interest in the
Company, a detail of which is presented on page 94
of this document. The Director Mr. Arturo Majlis Albala
holds an indirect ownership of 0.00045% of the
Series A shares and a direct and indirect interest of
0.0011% and 0.00045%, respectively of the Series B
shares of the Company. None of the other directors of
the Company hold Company shares.

Executive committee

he Company has an Executive Committee, which was
created by unanimous agreement of the Company’s
Board of Directors during session held April 22, 1986.
This Committee is in charge of permanently supervising
the general operation and control of the Company’s
business holding periodic sessions and is also in charge
of proposing guidelines regarding the management of
the Company’s business. The Executive Committee of
the Board of Directors of Embotelladora Andina S.A. is
currently comprised by the following Directors: Messrs.
Eduardo Chadwick Claro, Arturo Majlis Albala, José
Antonio Garcés Silva (junior), Gonzalo Said Handal,
and Salvador Said Somavía, who were elected during
general Board Session held April 26, 2018. The Executive
Committee is also comprised by the Chairman of the
Board, Mr. Juan Claro González and the Company’s
Chief Executive Officer, Mr. Miguel Ángel Peirano, who
participate by their own rights. This Committee meets
monthly throughout the year and during 2019 did not
incur any expenses.

Culture, Ethics and Sustainability Committee
102-20; 205-2; 102-32

Directors' Committee
102-22

The Company has a Culture, Ethics and Sustainability Committee,
which was established by the Company’s Board of Directors at its
session held January 28, 2014. The following are within its duties and
responsibilities: receive, know and investigate the reports of
irregularities referred to in Law No. 20,393 on crime prevention and
recommend actions to follow in each of the cases; establish and
develop procedures aimed at fostering the ethical conduct of the
Company’s collaborators; monitor compliance with the Code of Ethics
and resolve the queries and conflicts that its application may
generate; and establish mechanisms for the dissemination of the
Code of Ethics and general matters of an ethical nature.

The Culture, Ethics and Sustainability Committee of Embotelladora
Andina S.A. meets monthly with guests of the various operations, who
expose what is done in the field. The current members of the Culture,
Ethics and Sustainability Committee are Messrs. José Antonio Garcés
Silva, Gonzalo Said Handal and Felipe Joannon Vergara, in addition to
the Chairman of the Board, who integrates it by his own right. During
the year 2019, the Culture, Ethics and Sustainability Committee did
not incur any expenses.

Number of sessions held - Culture, Ethics and Sustainability
Committee (2019):

Percentage of average attendance
of the Culture, Ethics and Sustainability Committee

96.3%

Pursuant to Article 50 bis of Chilean Company Law No. 18,046 and in
accordance to the dispositions of Circular No. 1956 and Circular No.
560 of the Chilean Financial Market Commission a new Directors’
Committee was elected during Board Session held on April 26, 2018.

The directors Mrs. Pilar Lamana Gaete and Mr. Gonzalo Parot Palma
(both as Independent Directors), and Mr. Salvador Said Somavía
comprise the Committee. Mr. Gonzalo Parot Palma is the Chairman of
the Company’s Directors’ Committee.

Between April 30, 2013 and April 26, 2017, the Directors’ Committee
was comprised by Mr. Gonzalo Parot Palma (as Chairman and
independent Director), Arturo Majlis Albala and Salvador Said Somavia.
Between April 26, 2017 and April 26, 2018, it was composed by Pilar
Lamana, Gonzalo Parot (both as independent Directors, and the latter
in his capacity as Chairman) and Salvador Said Somavia.

Pursuant to article 50 bis of Chile´s Corporate Law No. 18,046, we
report on the duties performed by the Directors’ Committee of
Embotelladora Andina S.A., informing that during 2019 the Committee
developed, among others, the following activities:

• Review external auditors’ reports, the balance sheet and other

financial statements submitted by the directors of the Company,
ruling on them before submitting to shareholders for their approval.

• Analyze and prepare the proposal of external auditors and private

rating agencies to the Board of Directors, which were suggested to
the respective Shareholders’ Meeting.

• Examine information regarding the operations referred to by Title XVI

of Law No. 18,046 and issue a report on those operations.

• Examine salary systems and compensation plans of the Company’s

managers, principal officers and employees.

• Review anonymous reports.

• Review and approve the 20F annual report and compliance with Rule

404 of the Sarbanes-Oxley Act.

• Prepare the budget proposal for the Committee’s operation.

• Review Internal Audit Reports.

• Periodically interview the Company’s external auditors’ representatives.

• Review operating budget between Related Companies

(production Joint Ventures).

• Review Internal Control Model.

• Analyze and approve the Internal Audit certification processes.

• Review and approve press releases that refer to the Company’s

communications.

• Review the Company’s four Operations’ Internal Control

Standards, including Critical Risks in accounting processes,
compliance of corporate policies, tax contingencies, IT and
status of Internal and External Audit observations.

• Analyze Management and Risk Control Model.

• Analyze IAS 29.

• Review Crime Prevention Model Law No. 20,393.

• Review progress on implementation of IT systems.

• Review corporate insurances, including cyber-safety.

• Review Judicial Contingencies in the four Operations.

• Review Impairment Test Model.

• Review judicial procedures and contingency analysis.

• Review relevant tax risks.

• Analyze possible improvements to Corporate Governance.

• Prepare the Annual Management Report.

Finally, it is reported that during 2019, the Directors' Committee
incurred expenses totaling Ch$ 122,657,510 which related to
audits and legal counsel among other expenses.

Sarbanes-Oxley Audit Committee
102-22; 102-34

In accordance with NYSE and SEC requirements regarding compliance
with the Sarbanes-Oxley Act, the Board of Directors established an Audit
Committee on July 26, 2005. The current Audit Committee was elected
during Board Session held on April 26, 2018. The Committee is composed of
the directors Pilar Lamana Gaete, Gonzalo Parot Palma, and Salvador Said
Somavía determining that Mrs. Pilar Lamana Gaete and Mr. Gonzalo Parot
Palma fulfill the independence standards set forth in the Sarbanes-Oxley Act
and SEC and NYSE regulations. Also, Mr. Parot was appointed by the Board
of Directors as the financial expert in accordance with the definitions of the
listing standards of the NYSE and the Sarbanes-Oxley Act.

The resolutions, agreements and organization of the Sarbanes-Oxley
Audit Committee are governed by the rules relating to Board Meetings
and to the Company’s Directors’ Committee. Since its creation, the
sessions of the Sarbanes-Oxley Audit Committee have been held
together with the Directors’ Committee since some of the functions are
very similar and the members of both of these Committees are the same.

The Sarbanes-Oxley Audit Committee is responsible for analyzing the
Company’s financial statements; supporting the financial supervision and
rendering of accounts; ensuring that management develops reliable
internal controls; ensuring compliance by the Audit Department and
external auditors of their respective roles; and reviewing the Company’s
auditing practices.

The Sarbanes-Oxley Audit Committee Charter that is available on our
website: www.koandina.com, defines the duties and responsibilities of
this Committee. During 2019, the Sarbanes-Oxley Audit Committee
incurred expenses totaling Ch$ 46,904,316.

Percentage of average attendance of the Board of
Directors at the Audit Committee during the period

86.1%

Sessions held 2019:

Executive
Committee

Culture, Ethics and
Sustainability
Committee

Directors' Committee pursuant
to Article 50 bis of Chilean
Company Law No. 18,046

Sarbanes-Oxley
Audit Committee

Date created

Committee Chairman

Composition election

SERIES A

Juan Claro González

Chairman

Roberto Mercadé

Eduardo Chadwick Claro

José Antonio Garcés Silva

Felipe Joannon Vergara

Arturo Majlis Albala

María del Pilar Lamana Gaete

Gonzalo Parot Palma

Enrique Rapetti

Director

Gonzalo Said Handal

Vice Chairman

Salvador Said Somavía

Rodrigo Vergara Montes

SERIES B

Mariano Rossi

Georges de Bourguignon

OFFICER

Miguel Ángel Peirano

Director

Chief Executive
Officer

April 22, 1986

January 28, 2014

July 27, 2001

July 26, 2005

José Antonio Garcés Silva

Gonzalo Parot Palma

Board session held
04/26/2018

Board session held
05/29/2018

Board session held
04/26/2018

Activities of the Board of Directors
during the period
102-29

Our Board of Directors holds yearly
scheduled sessions, which are held at least
once a month, while special meetings are
agreed upon when they are convened by
the Chairman or requested by one or more
directors. The quorum for a Board session is
established by the presence of an absolute
majority of the Directors.

Resolutions are approved with the affirmative
vote of the absolute majority of those
Directors present in the session, except in
those cases in which the law or the by-laws
require a greater quorum, and the Chairman is
the one who settles a result against any tie.
The main duty of the Board of Directors is to
ensure, above all other considerations, the
interests of Company. The average
attendance for the 2019 period was 85.1%.

Number of Board sessions

12
85.1%

Average Board attendance percentage

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Meeting with external audit firm

The Board of Directors of Coca-Cola Andina has agreed to
meet quarterly with the external audit firm. To this end, the
external audit firm is invited to participate quarterly in the Board
sessions to discuss and report, among others, the audit plan;
possible differences identified in the audit with respect to
accounting practices, administrative and internal audit systems;
possible serious deficiencies that have been identified and
all those irregular situations that, due to their nature, must be
communicated to the competent auditing bodies; results; and
possible conflicts of interest that may exist in the relationship
with the audit firm or its staff, both for the provision of other
services to the Company or to the companies of its business
group, and for other situations. Audit reports were reviewed in
four Board sessions during the period.

BOARD INDUCTION AND EDUCATION
102-17; 102-27

Induction
At Coca-Cola Andina we have an induction procedure for
new Directors, in order to facilitate the process of
understanding and knowledge of their position and the
Company. This procedure consists of the Company's Chief
Executive Officer providing each new Director with an
Induction Folder within 15 days of becoming Company
director. It contains documents and information on the
following subjects: mission, vision, strategic objectives,
principles and values that guide the Company, policies of
inclusion, sustainability, diversity and risk management
approved by the Board, and the framework applicable to the
Company, the Board and its principal officers.

It also contains an explanation of the duties of care, reserve,
loyalty, diligence and information, which under the current
legislation rest with each member of the Board, indicating, by
way of example, failures, sanctions or pronouncements at the
local level with respect to these duties; and indicates what a
conflict of interest is for this Board of Directors under the
Company's Conflict of Interest Policy.

It also includes an explanation of business, subjects and
risks, including sustainability, and the reasons why the Board
of Directors considers that they have such a condition. In
addition, it points out the relevant stakeholders that the
Company has identified, and the main mechanisms that are
used to know their expectations and maintain a stable and
lasting relationship with them.

The induction procedure considers bring to the attention of the
new Director the main agreements adopted in the last two years,
and the reasons why such agreements were taken or other options
were ruled out, as well as the most relevant aspects of quarterly
and annual Financial Statements, together with their explanatory
notes and other accounting criteria. In addition to the
aforementioned Induction Folder, the induction procedure
includes a meeting of each new Director with Company officers
that depend on the Chief Executive Officer, Corporate Legal
Officer, Audit Unit and Chief Financial Officer, pursuant to the
request of each new Director.

Education
At Coca-Cola Andina we have a formal training mechanism for the
members of the Board of Directors, which includes lectures,
expositions and delivery of materials. During 2019 the Executive
Committee visited the four operations participating in lectures
with experts, economic analysts and political analysts.

Corporate Structure
102-18;

Administratively Embotelladora Andina S.A. is structured as a
holding company made up of a Corporate Office and an Operation
in each of the countries it is present.

Management Structure

FABIÁN CASTELLI
General Manager
Argentina

RENATO BARBOSA
General Manager
Brazil

JOSÉ LUIS SOLÓRZANO
General Manager
Chile

FRANCISCO SANFURGO
General Manager
Paraguay

1 Fernando Jaña replaced Tomás Vedoya, who was in office until January 31, 2019.

ANDRÉS WAINER
Chief Financial
Officer

FERNANDO JAÑA(1)
Chief Strategic Planning
Officer

MIGUEL ÁNGEL PEIRANO
CHIEF EXECUTIVE OFFICER

JAIME COHEN
Chief Legal Officer

MARTÍN IDÍGORAS
Chief Information
Technology Officer

GONZALO MUÑOZ
Chief Human
Resources Officer

MIGUEL ÁNGEL PEIRANO
• Chief Executive Officer
• RUT: 23.836.584-8
• Electrical Engineer
• In office since January 1, 2012.

JAIME COHEN
• Chief Legal Officer
• RUT: 10.550.141-2
• Attorney at Law
• In office since September 30, 2008.

ANDRÉS WAINER
• Chief Financial Officer
• RUT: 10.031.788-5
• Economist
• In office since November 1, 2010

MARTÍN IDÍGORAS
• Chief Information Technology Officer
• RUT: 22.526.397-7
• Systems Engineer
• In office since November 5, 2018.

FERNANDO JAÑA
• Chief Strategic Planning Officer
• RUT 12.167.257-K
• Civil Industrial Engineer
• In office since May 1, 2019

GONZALO MUÑOZ
• Chief Human Resources Officer
• RUT: 7.691.376-5
• Certified Public Accountant
• In office since January 5, 2015.

FABIÁN CASTELLI
• General Manager Embotelladora

JOSÉ LUIS SOLÓRZANO
• General Manager Embotelladora

RENATO BARBOSA
• General Manager Rio de Janeiro

Atlántico S.A.

• Argentinean Operation
• DNI 17.744.981
• Industrial Engineer
• Foreign Citizen
• In office since April 1, 2014.

Andina S.A.

• Chilean Operation
• RUT: 10.023.094-1
• Business Administrator
• In office since April 1, 2014.

Refrescos Ltda.
• Brazilian Operation
• Economist
• Foreign Citizen
• In office since January 1, 2012.

FRANCISCO SANFURGO
• General Manager Paresa
• Paraguayan Operation
• RUT: 7.053.083-K
• Mechanical Engineer
• In office since January 1, 2005.

Note: None of the principal officers holds ownership interest in Embotelladora Andina S.A. as of 12.31.2019.

MANAGEMENT DIVERSITY CHART
405-1

Nationality

Age

Seniority

Argentinean

Brazilian

Chilean

Between 41 and 50

Between 51 and 60

Less than 3 years

Between 3 and 5 years

Between 61 and 70

Between 6 and 8 years

Between 9 and 12 years

More than 12 years

ARGENTINA

BRAZIL

CHILE

PARAGUAY

General Manager
Fabián Castelli
DNI: 17.744.981
Industrial Engineer
In office since April 1, 2014

General Manager
Renato Barbosa
Foreign citizen
Economist
In office since January 1, 2012

General Manager
José Luis Solórzano
RUT: 10.023.094-1
Business Administrator
In office since April 1, 2014

Administration and Finance Manager
Fernando Ramos

Administration and Finance Manager
David Parkes

Administration and Finance Manager
Alejandro Zalaquett

Commercial Manager
Diego Garavaglia

Human Resources Manager
Paola Rolando(1)

Strategic Planning Manager(2)

Commercial Manager
Rui Barreto

Operations Manager
Pablo Bardin

Human Resources Manager
Max Ciarlini

Supply Chain and Logistics Manager
Santiago López Novotny

Legal Manager
Ariel Molina

General Manager Andina Empaques S.A.
Daniel Caridi

Legal and Institutional Relations
Manager
Fernando Fragata

Operations Manager
Rodrigo Klee

Growth, Strategic and Digital
Transformation Manager(3)
Rodrigo Ormaechea

People Manager
Rodrigo Marticorena

Legal Manager
Javier Urrutia

Operations Manager
Alejandro Vargas(4)

Market Manager(5)
Rodolfo Peña

General Manager
Francisco Sanfurgo
RUT: 7.053.083-K
Mechanical Engineer
In office since January 1, 2005

Finance, Administration, Information
Systems and Procurement Manager
Eduardo Yulita

Commercial Manager
Melina Bogado

Quality Manager
Leonardo Calvete

Human Resources Manager
María Teresa Llamosas

Industrial Manager
Carlos Stuardo

Logistics & Supply Chain Manager
Julio Fiandro

Public Affairs and Community
Manager
Ángel Almada

(1) Lilia Hidalgo leaves the company on 04/30/2019, the position is occupied by Paola Rolando. (2) Marcio Greco leaves the company 03/31/2019, without replacement. (3) In June 2019, the office of the Commercial Manager was transformed into the
office of the Growth, Strategy & Digital Transformation Manager in charge of Rodrigo Ormaechea. Alejandro Palma left the company in May 2019. (4) Cecilia Facetti, S&OP Manager, leaves the company in June 2019. The office of the S&OP Manager
becomes dependent on the office of the Operations Manager and the Customer Service area that belonged to this Management area is integrated to the office of the Growth, Strategy and Digital Transformation Manager. (5) In June 2019, the office of
the Regions Manager was eliminated and transformed into the office of the Market Manager, in charge of Rodolfo Peña.

Remuneration - Principal officers

With respect to principal officers, remuneration plans consist of a fixed
remuneration and a performance bonus, which try to adapt to the
reality and competitive conditions of each market, and the amounts of
which vary according to the position and/or responsibility exercised.
Such performance bonuses are payable only to the extent that the
personal goals of each principal officer and those of the Company are
met, which are previously defined for each particular case.

For the year ended December 31, 2019, the amount of fixed
remuneration paid to Coca-Cola Andina's principal officers amounted
to Ch$4,167 million (Ch$3,782 million in 2018). Similarly, the amount of
remuneration paid for performance bonuses amounted to Ch$2,407
million (Ch$2,517 million in 2018).

During the year ended December 31, 2019, the amount paid
for severance indemnities to managers and principal officers of
Embotelladora Andina S.A. was Ch$55 million.

During the year ended December 31, 2018, the amount paid
for severance indemnities to managers and principal officers of
Embotelladora Andina S.A. was Ch$52 million.

Note: we do not publicly communicate compensation of our principal officers on an individual
basis, as Chilean law does not require disclosure of such information.

Remuneration - Board of Directors
102-35; 102-36

2019

Board of Directors
Compensation ThCh$

Executive Committee
ThCh$

Directors´and Audit
Committee ThCh$

Juan Claro González (1)

144,000

72,000

Arturo Majlis Albala

Gonzalo Said Handal

José Antonio Garcés Silva

Salvador Said Somavía

Eduardo Chadwick Claro

Gonzalo Parot Palma (2)

Manuel Arroyo Prieto (3)

Rodrigo Vergara Montes

Roberto Mercadé Rovira(4)

Mariano Rossi

Georges de Bourguignon Arndt

Enrique Rapetti

María del Pilar Lamana (2)

Felipe Joannon Vergara

72,000

22,600

72,000

49,400

72,000

Total Gross

1,080,000

360,000

24,000

72,000

(1) Includes an additional Ch$72 million as Chairman of the Board of Directors. (2) Independent director of the Company, pursuant to current regulations.
(3) Left the Board of Directors in 2019. (4) Joins the Board of Directors in 2019.

2018

Board of Directors
Compensation ThCh$

Executive Committee
ThCh$

Directors´and Audit
Committee ThCh$

Juan Claro González (1)

144,000

72,000

Arturo Majlis Albala

Gonzalo Said Handal

José Antonio Garcés Silva

Salvador Said Somavía

Eduardo Chadwick Claro

Gonzalo Parot Palma (2)

Manuel Arroyo Prieto (4)

Rodrigo Vergara Montes (4)

Juan Andrés Fontaine Talavera (3)

Mariano Rossi

Susana Tonda Mitri (3)

Georges de Bourguignon Arndt

Enrique Rapetti

Karim Yahi (3)

María del Pilar Lamana Gaete (2)

Felipe Joannon Vergara (4)

72,000

60,000

54,000

12,000

72,000

18,000

72,000

24,000

72,000

54,000

Total Gross

1,086,000

360,000

24,000

72,000

Total
MCh$

144,000

168,000

144,000

96,000

22,600

72,000

49,400

72,000

96,000

72,000

1,512,000

Total
MCh$

144,000

168,000

144,000

96,000

60,000

54,000

12,000

72,000

18,000

72,000

24,000

96,000

54,000

1,518,000

(1) Includes an additional Ch$72 million as Chairman of the Board of Directors. (2) Independent director of the Company, pursuant to current regulations. (3) Left the Board of
Directors in 2018. (4) Joins the Board of Directors in 2018.

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SHAREHOLDERS' MEETINGS
102-18

General Shareholders' Meetings are held once a year, within the first
four months following the date of the annual balance sheet. Special
Shareholders' Meetings may be set at any time and in accordance with
corporate needs to discuss and decide any matter that is of its
competence, as long as indicated in the notice. The only condition to
participate in a Shareholders' Meeting is to hold shares in the Company.

Andina does not have a defined policy regarding the attendance of
directors to Shareholders' Meetings, but the custom is that they are
voluntarily present during the course of those Meetings. Likewise, the
Company does not maintain a policy other than that established by
Chilean law, regarding the proposal of any candidate to be director of
the Company by any shareholder. Accordingly, any interested
shareholder may attend the Meeting and manifest their proposal for a
particular director candidate, where an election is appropriate.

According to Chilean law, Andina does not require, as in other countries,
a permanent Directors’ Appointment Committee. We include more
information regarding Corporate Governance issues and the difference
with the standards of the United States of America (hereinafter and
interchangeably “U.S.”) on Form 20-F, which is filed with the Securities
and Exchange Commission (SEC) annually, which will be available
beginning April 30, 2020 on our website www.koandina.com.

Summary and Comments of Shareholders
and the Directors’ Committee

As prescribed in General Standard No. 30 of Chile’s Superintendence of
Securities and Insurance - now the Financial Market Commission - and
Article 74 of Law No. 18,046, it is reported that neither the Directors’
Committee, nor shareholders or groups of shareholders who represent
or own 10% or more of the shares issued with voting rights, have made
comments or propositions regarding the running of the Company's
business. Notwithstanding the foregoing, the minutes of the 2019
General Shareholders' Meeting recorded that the floor was offered to
the shareholders to respond to any concerns they had, but no motions,
inquiries or additional doubts were expressed.

Diversity in the Board of Directors
405-1

GENDER

NATIONALITY

AGE RANGE

SENIORITY

Male

Female

Chilean

Foreign

Less than 30

Between 30 and 40

Between 41 and 50

Between 51 and 60

Between 61 and 70

More than 70

Less than 3 years

Between 3 and 6 years

Between 6 and 9 years

Between 9 and 12 years

More than 12 years

hile the Company does not
have formal process in place
for shareholders to send
communications to Directors,
shareholders who so wish may
express their opinions, considerations
or recommendations before or during
the General Shareholders’ Meeting,
which will be heard and attended
by the Chairman of the Board or by
the Chief Executive Officer of the
Company, and shall be submitted for
consideration by the shareholders
present during the Meeting.

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RISK MANAGEMENT

102-11; 012-15, 201-2

Our risk management model is based on COSO, aiming to
continuously improve for the purpose of achieving a mature
management model within five years. It is a ongoing process
consisting of the following stages:

RISK MANAGEMENT

t Andina we understand that good Corporate Governance
practices required by the market and driven by the regulatory
bodies are key to risk management, since they directly contribute
to meeting our objectives and to the sustainability of our business.

In addition to financial risks, we have focused on those
nonobvious risks, prioritizing those that may affect the
Company’s operating continuity.

Ongoing collection and
oversight

Risk response
improvement
and
implementation
plans

Design risk
management
strategy

Design
structure,
policy and
methodology

Collection,
identification,
evaluation
and detailed
explanation of
mitigation plans.

Our risk identification considers possible events in each of the
countries in which the Company operates. In that regard, each
country's experience is critical in defining a standard in terms of
what risk is being specifically assessed and how it is being
measured; this is how the country with the greatest experience
or know-how in relation to each risk proposes the standard to
be applied at the corporate level, which is ratified by the risk
committee. Once the standard is defined, mitigation measures
are defined for each of the identified risks.

Approval risk
response plan

Critical analysis,
benchmarking and feedback

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Actions undertaken in risk management
are incorporated into the processes,
considered in strategies and budgets,
and permanently monitored in order to
ensure their continuity and effectiveness.

Design risk management strategy
The objective of this stage is to develop
a culture and risk management processes
relevant to the business, so that, if such
uncertain facts materialize, the impact is
manageable and there are plans for it.

Design structure, policy
and methodology
At this stage, the organizational structure
and regulatory body necessary to
achieve adequate process governance
was established, including the definition
of a common language and a standard
methodology for all operations, to
facilitate the preparation and monitoring
of risk maps.

Collection, identification,
evaluation and detailed explanation of
mitigation plans.
For each identified risk, the probability
and impact of their potential
materialization is estimated, allowing
them to be prioritized according to their
criticality and to establish preventive
and/or contingency actions that could
be taken.

Critical analysis, benchmarking
and feedback
This stage involves detailed analysis for
the incorporation of new risks and the
review of mitigation plans, stressing on
the benchmarking between operations,
seeking to standardize risk mitigation plans
and identify synergies, taking the best
practices from one operation to another.

Approval risk response plan
At this stage, high critical risks are
escalated to the Corporate Office and to
Board in order to obtain approval of
mitigation plans and residual risks and
evaluate the incorporation of new
corporate standards.

Improvement and implementation
of risk response plans.
Annually, Internal Audit verifies mitigation
plans and issues their finding reports. The
respective risk managers define
remediation action plans to close the
gaps, periodically monitoring their
progress status.

We are exposed to different risks
associated with economic,
political, social and competitive
conditions, as well as operating
risks linked to our production
processes.

The following table shows the
relationship between the main
risks managed by us and the
material issues identified by
management and our main
stakeholders.

PRINCIPAL RISKS

DESCRIPTION

IMPACT ON THE BUSINESS

MITIGATION ACTIONS

RELATED MATERIAL ISSUE

Supply of returnable bottles.

Failure in the supply of returnable
bottles.

Plant stoppage
Impact on sales

Fail to collect/recycle bottles.

Lack of efficiency in collecting/
recycling bottles

Pollution from waste.

Pollution from failure or noncompliance
of waste treatment.

Damage to corporate image
Negative exposure on
advertising/social media
Impact on sales

Sanctions, fines
Damage to corporate image
Negative exposure on
advertising/social media
Impact on sales

Sustainable packaging and waste
management.

Matrix of strategic suppliers, with
existing mitigation actions, such as:
stock policies, alternative suppliers,
maintaining a stock in suppliers,
analysis of new suppliers

Encourage consumption of Returnables.
Dissemination of good internal waste
management practices and support for
initiatives with stakeholders Communication
of actions carried out on own and third party
social networks, and Coca-Cola Journey.

Comprehensive Waste Management
Program, which ensures the correct
conditioning and final disposal of waste
generated in plants. Periodic external
audits of legal compliance of industrial
processes and internal audits of legal
compliance. Contractors Regulations
include environmental policies, supplier
audits and fines for non-compliance.

Portfolio diversity.

Changes in brand image and
product quality.

We depend on maintaining an
adequate diversity of products to meet
the preferences and demands of
customers

Perception that products are not of
good quality or are damaging to health,
affecting the brand's image

Damage to corporate image
Negative exposure on
advertising/social media
Impact on sales

Impact on sales.

Constant development of products in
line with changes in the consumption
habits of the population.

Quality, product excellence.

Instability in the supply of raw materials
and oil prices.

PET bottles are manufactured on the
basis of oil by-products.

Volatility in the costs of PET bottles.

Failures in the production and/or
distribution of products.

Our products are not
available to customers/
consumers.

Damage to corporate image
Negative exposure on
advertising/social media
Impact on sales

Scarcity, pollution and poor water
quality.

Water is one of the main
raw materials for our products.

Increased production costs to ensure
the quality of products offered.

Dependence on the relationship
with The Coca-Cola Company
(TCCC).

Andina purchases concentrate from
TCCC pursuant to a bottling
and distribution agreement.

Inability to access concentrate for
soft drinks and loss of TCCC
marketing support.

Detailed information regarding the risks we face can be found in Chapter 7.4 Exhibits/Risk Factors in this document and in our 20-F report on www.sec.gov.

Portfolio Development: strengthen
healthy, low or sugar-free proposals.
Delivery of the nutritional information
of our products. Assessments of brand
reputation, environmental and
community programs.
Communication of actions carried out
on own and third party social networks,
and Coca-Cola Journey.

Encourage the use of bottles with
rPET resin (recycled).

Preventive equipment maintenance
plans and critical spare parts
policies. Finished Product Stock
Policy. Third Party Management
Model: comprehensive evaluation of
transportation providers

Ensure stable sources of supply and
increase efficiency/reduce
production use.

Joint planning process with Coca-
Cola, coordination of campaigns and
launches, joint execution of projects.
Participation in the CEPG for the
planning and development of
purchases of critical supplies.

Quality, product excellence.

Water management.

Relationship with stakeholders.

WE OPERATE
WITH INTEGRITY

committed to developing
actions that contribute to the
management of Sustainable
Development Goals"
102-16, 102-14, 103-1, 102-13

Our vision inspires us to achieve sustainable
management, with a view to preparing for the
future, formalizing goals, objectives and indicators
with expected values in the medium and long term.

Aligned with The Coca-Cola Company, Coca-Cola
Andina bases its development on seven priority
axes that seamlessly converse with the United
Nations Sustainable Development Goals.

103-1, 103-2, 103-3

Ensure a healthy life style and promote
universal well-being. Being close to our
consumers offering them products that
contribute to their well-being.

Why is it important?
The good health of the population is directly related to
nutrition and in that sense, we want to offer products
of excellence, affordable throughout the territory we
operate. Ensuring healthy lifestyles and promoting well
being is important for building prosperous societies.

Ensure sustainable consumption
and production.

Why is it important?
This is positive for individual prosperity, but it will
increase demand for natural resources, which are
already limited. If we do not act to change our
consumption and production methods, we will cause
irreversible damage to the environment.

At Coca-Cola Andina we care about protecting and ensuring the
safety and quality of our products. Our commitment is permanent
and it is the most important responsibility we have with our
consumers, which we specify through different programs, such as:

• Safety assessments:

all our packaging components are subjected to safety assessments
and should be allowed for use by health authorities, in all countries
where our products are commercialized. The Coca-Cola Company
has its own audit body called GAO (Global Audit Organization), which
maintains a review structure.

• Certification of our plants:

100% of our production plants and major distribution centers in the four
countries in which we operate have certifications (see table for detail).

• Sensory analysis program:

this program seeks to make every partner a true brand ambassador
to ensure the quality of our products. The quality area of each
operation carries out all the management of Sensory Analysis. During
2019 we highlight the following results: 100% of SKUs analyzed and
390 trained panelists.

• KORE Management System:

is a demanding program developed by The Coca-Cola Company for
our activity, which incorporates standards and requirements that go
beyond the scope of ISO certifications and that is mandatory for any
own or franchised Coca-Cola operation in the world.

Number of trained panelists and SKUs analyzed:

COUNTRY

Argentina

Brazil

Chile

Paraguay

Number of trained
panelists

167

% of SKU analyzed

100%

SKU: Production Unit

2019 plant certifications

COUNTRY

Argentina

Brazil

Chile

Paraguay

Quality ISO 9001

Environment
ISO 14001

Health and Safety
OHSAS 18001

Food Safety
FSSC 22.000

GAO, The Coca-Cola
Company Corporate
Requirements

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS8EXHIBITS7CORPORATEINFORMATION2019 INTEGRATED ANNUAL REPORT

OUR PORTFOLIO

102-2; 102-6

SOFT DRINKS

JUICES AND OTHERS

WATER

BEER

Reduced or zero calories portfolio

48%
27%

Portfolio with added vitamins or nutrients

Ensure a healthy life style and promote
universal well-being. Being close to our
consumers offering them products that
contribute to their well-being.

Ensure sustainable consumption
and production.

We are a total beverage Company and we have a wide and diverse
portfolio that allows us to connect with all our consumers, in their
changing consumption habits, at different times of the day. Our
proposal is to provide options in the categories of energy, hydration,
nutrition and relaxation. We aim to adapt, being flexible to the needs
of our consumers, modifying recipes, incorporating sugar-free
beverages, providing a multiplicity of options and ensuring their
availability to all our customers.

In this line, in 2015 we took the first step with our global single brand
strategy and in 2018 the next step was to incorporate Coca-Cola without
sugar or with reduced sugar, advancing to be much more direct and
clear when communicating the sugar-free attribute. The aim was
to make available to our consumers an original version and another
without sugar matching the exquisite taste of Original Coca-Cola.

Today we have a democratized portfolio for any type of person, a
100% sustainable offer. Since there is a sugar-free version for each of
our products, we can reach 100% of our consumers with sugar-free or
reduced sugar versions, thus responding to the problems related to
calorie intake.

In Chile, five years ago we used 110
thousand tons of sugar. Today we are at
approximately 54 thousand.

% of sugar-free soft drinks compared to total soft drinks

Argentina

Brazil

Chile

15.7%

17.2%

10.3%

13.7%

2019 IMPROVEMENTS
417-1, 417-2, 417-3

Percentage of the portfolio sugar reduced/added nutrients

Paraguay

YEAR

% of the portfolio sugar free
or sugar reduced

2018

53,3%

2019

48,4%

% of the portfolio with vitamins
or added nutrients

16,3%

27,1%

For more detail, review chapter 6, our metrics

2018

2019

30.1%

31.1%

17.1%

18.2%

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS8EXHIBITS7CORPORATEINFORMATION2019 INTEGRATED ANNUAL REPORT

INITIATIVES
103-2, 203-2

Healthy Cooking Workshops
Argentina

During 2019 Healthy Cooking Workshops were
held, a project that result from the Fundación
Banco de Alimentos de Córdoba and which
counted with the contribution of the school of
gastronomy and hotel "Black Pepper" and was
sponsored by Coca-Cola Andina.

The Banco de Alimentos – whose fundamental mission is to contribute to
reducing hunger by recovering food, as well as educating about healthy eating
habits in and around the city of Cordoba - proposed this instance to train 135
food organizations with recipes and advice that would allow better nutrition for
children who come to these institutions. In addition, the Banco de Alimentos
receives inputs with high nutritional value that are not taken into account,
because it is unknown how to add them to the daily menus of the
organizations. Healthy Cooking workshops improved the nutrition quality of
1,892 children and young people from 70 social organizations.

During 2019 we became allies to the Banco de Alimentos with the "Family to
the Table" program, which aims to restore low-income families to the habit of
lunch/dinner as a family. We know that there are many family members who
attend picnic areas or community canteens and this does not allow them to be
present at any family's iconic times. Thus, the program provided tools and
knowledge to 51 mothers and 102 children, managing to revalue the time of
the meal as well as to give a nutritional follow-up.

Innovation and nutrition

Coca-Cola Andina, along with The Coca-
Cola Company, is always mindful of the
idea of improving the quality and variety
of its portfolio. That is why the innovation
team is made up of professionals from
different areas and works in synergy with
other sectors of the Company, bringing
collaboration, inspiration, information on
innovation and agility in the development
of new products.

Guallarauco Ice Cream
Chile

In October 2018, the agreement to make
the premium juices firm part of Coca-
Cola del Valle materialized, Coca-Cola
del Valle is a company composed of
Coca-Cola Chile, Coca-Cola Andina and
Embonor. This agreement allowed to
significantly extend the portfolio of the
Company, as Guallarauco is a leading
brand in frozen fruits, juices and bottled
nectars and fruit desserts. In 2019 we
made progress and multiplied our share
of Guallarauco ice cream.

Multiplied
our share of
Guallarauco
ice cream x5

Stills Growth
Brazil

Coca-Cola Andina Brazil set itself the
interesting challenge of growing in
categories that go beyond soft drinks.
This had excellent results, achieving
double-digit increases in juices, teas,
energy and water. And this is due to the
virtues of these products, since they
respond very well to consumer demand:
tea-related beverages are rich in vitamins
and antioxidants and provide options for
cold or hot drinks. Our Del Valle juices
were also protagonists of this growth,
transforming their packaging from
tetrapack presentations to PET bottles. In
addition, their formulation now has more
fruit juice and vitamin C and has no added
sugar or preservatives. Del Valle Frut is
synonymous with quality and trust with an
excellent price for all Brazilian families.

(1) Among the brands of products to be distributed are
Alto del Carmen®, Capel®, Artesanos del
Cochiguaz®, Monte Fraile®, Sensus®, Inca de Oro®
and Francisco de Aguirre®, among others.

We grew in
spirits through
a new alliance

Diageo - Capel Distribution
Chile

As part of our growth and diversification
strategy, we signed a distribution
agreement with Cooperativa Agrícola,
Pisquera Elqui Ltda. and Viña Francisco de
Aguirre S.A. This agreement will allow
us to incorporate new alternatives for
our consumers in the territories of the
Metropolitan Region of Santiago and the
provinces of Cachapoal and San Antonio,
as well as in the regions of Antofagasta,
Atacama, Coquimbo, Aysén and
Magallanes. (1)

Verde Campo, new member of the
Coca-Cola family
Brazil

Verde Campo, a company with great
innovative spirit, started becoming a
member of the Coca-Cola family hand in
hand with the operations ins Brazil. The
products stand out for their quality and
taste, as is the case, for example, of the
Lacfree line, the first lactose-free line in
that region. Another emblem of the brand
is Natural Whey Shake, with zero added
sugar, zero lactose and zero fats. It is
sweetened with stevia and has 14 grams of
protein, which helps the recovery of muscle
tissue after physical activities. The product
does not need refrigeration. Thanks to the
Company's efficient distribution system,
Verde Campo products can now reach all
regions of the country.

ustomers are a key link in our value chain,
because in addition to the social impact they
generate for the growth of local economies,
they are responsible for a significant
percentage of the Company's sales.

B2B Channel ( www.micoca-cola.cl)
We are proud to grow in the MiCoca-Cola business model, with
which we directly reach our consumers. It is a long-term bet that
Coca-Cola Andina Chile strategically proposed, with the aim of
positioning itself as an alternative for online shopping and direct
home delivery to consumers. Buying trends and behaviors show the
need to be present in all possible purchasing channels.

We know that we offer great added value with our sales force that
visits customers understanding their problems and offering
solutions / promotions that benefit them. But in recent years we have
been facilitating the channels so that each client chooses the option
that best suits their schedules and needs. In this context the web
channel was born and in the last year it grew by 150%, incorporating
9,300 customers. We are aware that much remains to be done and
we are preparing to respond quickly to market changes.

That is why we seek to accompany them with development
programs that enhance their results. Thus, in 2019 we imparted
more than 2,400 hours of training, with a 2.5% average growth of
the businesses benefiting from those training hours.

In Chile, our miCoca-Cola.cl channel grew by

150%

with 9,300 new clients

Sales by Channel

31%

32%

33%

17%

28%

15%

13%

Argentina

Brazil

Chile

Paraguay

32%

28%

24%

11%

46%

34%

On-premise

Mom & Pops

Wholesales

Supermarkets

25%

28%

SERVICE

Claims

Orders (sales)

Requests (services, visits, etc.)

Inquiries

Percentage

35%

21%

34%

RESPONSIBLE MARKETING
417-1

NUTRITIONAL LABELLING
417-1

We have a responsible marketing policy, which stipulates that no
advertising is directed to children under the age of 12 for any of the
Company's products, advertising is not done in media whose audience of
children under 12 is greater than 35% and to children under the age of 12
are not shown drinking any of the products without the presence of a
responsible adult.

We use the Daily Food Guides (DFA), which are a nutritional information
tool presented in tablet format in product labeling. According to the
global policy of The Coca-Cola Company, all labels (except glass and
water) must include DFA. In Latin America we present the amount of
calories, along with the percentage of the Daily Value (%VD) on the front
of the packaging, being consistent with the commitment to provide
consumers with transparent nutritional information in their products. In
addition, a panel of nutritional information provides additional data on
proteins, carbohydrates, fiber and, when the product contains them,
minerals and vitamins.

Non-caloric sweeteners used in the Company's light/zero soft drinks are
safe for the entire population, including children over the age of two,
pregnant and breastfeeding women.

Chile
Chile implemented Law No. 20,606 on Labelling, which requires
the labeling of the packaging with the warning seal "High in", which
indicates that this product contains high levels of sugars, sodium,
saturated fats and/or calories; and restricts advertising for these
foods to children under the age of 14, in addition to restricting sale,
promotion and free delivery in educational establishments.

It is key for Coca-Cola Andina to have an active and responsible role with
our community and for this reason we provide objective, meaningful and
understandable nutritional information about all our products. We know
the importance of informing consumers through our labels.

Kcal/liters sold

Argentina

345,1

Brazil

344,8

Chile

219,6

Paraguay

336,8

327,4

334,3

216,7

329,0

2018

2019

103-1, 103-2, 103-3; 301-1, 302-1

A RELATIONSHIP THAT IS CHANGING

Ensure sustainable consumption
and production

Adopt urgent measures
to combat climate change
and its effects

Why is it important?
Climate change is a consequence of human activity and
it is threatening our way of life and the future of our
planet. Tackling climate change will enable us to build
a sustainable world for all. But we must act now.

Conserve and sustainably use
the oceans, seas and marine resources
for sustainable development.

Why is it important?
Oceans provide critical natural resources such as food,
medicine, biofuels and other products. They contribute
to molecular decomposition and waste disposal and
contamination; in addition, their coastal ecosystems act
as buffers to reduce storm damage. Maintaining ocean
health helps in efforts to adapt to climate change and
mitigate its effects

Plastic has been fundamental in people's daily lives around the world.
However, this relationship has been changing in recent years given
the effects of its massive presence. In the current linear model, 78
million tons of plastic packaging are produced globally every year,
but after use 40% goes to landfills, 14% is burned to produce energy,
while 32% remains in the environment. Of the remaining percentage,
which corresponds to recycled plastic, only 2% is circularly used,
reused as raw material to make new products. (1)

(1) Source: https://www.cocacoladechile.cl/historias/medio-ambiente-los-cuatrocompromi-
sos-del-pacto-por-los-plasticos

Through the New Plastics Economy initiative, the Ellen MacArthur
Foundation has brought together businesses and governments
behind a positive vision of a circular economy for plastics. All business
and government signatories have signed a clear set of 2025 objectives
supported by shared definitions. They will report annually on their
progress to ensure transparency and will be reviewed every 18
months. The goal is to be increasingly ambitious in the coming years.

Commitment Nº1: Take action to remove single-use plastic packaging
that is problematic or unnecessary,

through redesign, innovation and alternative reuse models.

Commitment Nº2: Make 100% of the material used in plastic
packaging recyclable, reusable or compostable.

Commitment Nº3: Work to make one-third of plastic packaging -
both household and non-household- effectively recycled,
reused or composted.

Commitment Nº4: To ensure that, on average, a quarter of the
material contained in new plastic packaging is effectively
from recycled material.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS8EXHIBITS7CORPORATEINFORMATION2019 INTEGRATED ANNUAL REPORTThe Coca-Cola Company is firmly
committed to managing its goal
to drastically reduce the impact of
bottles and packaging waste in the
environment with a sense of focus
and energetically.
301-1, 301-2; 301-3

Its efforts for a world without waste began long before
the initiative was announced. Since its launch in January
2018, the Company has progressed with greater focus on
three pillars: design, recycle and partner, setting goals
for each one.

Design: make our packaging 100%
recyclable worldwide by 2025 and use at
least 50% recycled material in our
packaging by 2030.

Recycle: collect and recycle one bottle or
can for each one we sell by 2030.

Partner: work together to support a
healthy, waste-free environment.

Life cycle of bottles

PLASTIC PACKAGING DESIGN
The plastic containers we use today are much lighter than glass, this
is reflected in a smaller carbon footprint of the packaging,
comparatively analyzing the life cycles. But we want to reduce that
weight of the bottles even further, because every gram of plastic
saved means less energy expenses in our supply chain. Another key
initiative is the use of recycled resin. Replacing virgin resin with
recycled resin is an all-year challenge that, in turn, brings benefits in
greenhouse gas emissions.

Coca-Cola Andina adheres to the commitments proposed by The
Coca-Cola Company and works in partnership to meet these
challenges. A world without waste is one of the most cross-cutting
challenges we have faced as a Company, since it not only requires
the effort of different areas of the Company, but the community plays
an important role in achieving it. It is therefore key that we can
establish the appropriate partnerships and that all stakeholders see
the benefits of acting as soon as possible.

Solid waste generation
(gr/lt of beverage) 2019

20.2 19.2

14.7

7.4

Percentage of recycled waste

87.3%

91.4%

84.0%

89.1%

RETURNABLE CONTAINERS

Returnable packaging is very environmentally friendly because, in
terms of carbon emissions, water footprint and waste impact, it has a
better performance compared to disposable glass and plastic. This is
due to its lightweight material, its reuse and final destination, since it
can be 100% recycled.

The returnable Coca-Cola bottle is the most circular container that
exists and an example of application of the Reuse focus, since through
this system you can extend the life of a plastic or glass container. The
classic returnable glass bottle is used 35 times, emptying and filling
again before being recycled, while the PET plastic bottle circulates
between 12 and 16 times. The returnable bottle is generally chosen
by consumers who are aware of the care of the environment. This
initiative is part of The Coca-Cola Company's comprehensive strategy
of "A World Without Waste".

Percentage of sales in returnable packaging regarding
total volume (%)1

COUNTRY

2017

2018

2019

Argentina

40.6%

39.5%

40.9%

Brazil

Chile

18.0%

20.1%

37.0%

34.7%

Paraguay

n/d

37.4%

22.0%

33.8%

37.5%

1 Corresponds to percentage regarding total volume, not only soft drinks

Percentage of soft drinks sales in returnable packaging (%)2

In recent years, the Company has confirmed its intention to grow the
sale in returnable formats, so it is within that logic that it created the
Single Bottle. The initiative was born in Brazil and has been awarded
worldwide: it won the Global Innovation Awards 2018, which
recognizes the successes undertaken by Coca-Cola leaders and their
teams that challenge the status quo, create capabilities and help
drive sustainable growth.

COUNTRY

2017

2018

Argentina

48.0%

46.9%

Brazil

Chile

20.0%

22.6%

48.0%

45.3%

2019

48.1%

25.2%

44.7%

Paraguay

45.9%

45.4%

46.3%

2 Corresponds to percentage regarding only soft drinks, and what was reported until 2018 Annual Report

What sets the Single Bottle apart:
it is much more than a container, as it is a returnable bottle - from PET
or glass - that uses less plastic and whose design is the same for all
flavor varieties. In addition, it is 100% recyclable.

Investment:
during the last two years we have invested ThUS$ 26,442 million in the
unification of the design of plastic returnable bottles (REFPET) in the
expansion of the reuse infrastructure (washing machines and labelers) as
part of the aspiration to significantly increase reusable packaging by 2030.

Benefits:
the main benefits of the project are efficiency, savings and flexibility,
significantly reducing washing, filling and the cost of reverse logistics.
At the same time, it reduces carbon emissions, which is directly aligned
with our strategy.

Is a project that seeks to increase
the percentage of recycled resin in
our plastic packaging, subsequently
enhancing recovery for an adequate
transformation into food grade
recycled resin.

As members of the Coca-Cola system we encourage our
packaging to be recycled, either to reintegrate into our
own processes or in other industries.

In recent years there have been very competitive prices of
recycled resin in some of the operations, reducing one of
the main barriers to increase its use over virgin resin. In this
context, in 2018 we reached 5.4% recycled resin in our
bottles, while in 2019 it was 3.6%.

On the other hand, we can point out that we have had
a very good experience with the returnable packaging
cases, which are made with the same scrap of those that
end their useful life. We have also obtained great results
with glass bottles, since more than 70% of the glass they
contain is recycled.

Regarding the design, every year we have formats that still
have the possibility of reducing their weight according
to the line where they are being produced. During 2019,
efforts to relieve packaging led to:

resin savings

445

tons per year

This also meant saving

712,037

USD

Environmental education with Kyklos
Chile

Zero Waste
Chile

The "Coca-Cola Andina Kyklos Environmental Education Program" was
designed with an aim of delivering educational tools and raising
awareness of environmental care and, in particular, recycling. What we
seek is to generate and leave a culture of recycling installed in each of
the schools, empowering children, parents and employees,
transforming them into "environmental leaders of their community",
contributing to improve their personal and academic development as
well as the well-being of their community.

We have been in partnership with Kyklos for three years, impacting
more than 32,000 environmental leaders and we recovered more than
30,952 kilos (kg) of waste, of which 6,339 kg were PET. Thus, from the
school communities, reincorporating the material to the production
cycle has been enhanced to prevent their final destination to landfills.

During the last three years we trained more than:

32,000

environmental leaders.

After committing to do so, Coca-Cola Andina Chile managed to have
five zero waste distribution centers. This is a great work of awareness
and investment to classify waste at source in the best way, resulting in
none of them being aimed at landfills. This effort was made under the
Clean Production Agreement (CPA).

During 2019, Coca-Cola Andina recorded 241,611 kg of waste that was
properly allocated, managing to avoid sending waste from five
distribution centers to landfill. This also reduces our carbon footprint,
as all waste is used for reuse, composting or power generation

44%

Zero waste
distribution centers

54%

Reutilization

Composting

Alternative fuels

The Recycling for Brazil platform, created in October 2017 in an
alliance between competitors Coca-Cola Brasil and Cervejaria
Ambev, welcomed the new members. Nestlé Brasil and Vigor joined
beverage companies to expand the scope of the program's activities
and improve investments targeting the country's recycler
cooperatives, in partnership with the National Recyclers Association
(ANCAT).

Coca-Cola Andina Brasil participates as a member of the Coca-Cola
System: being an active partner of the initiative, which in this new
version supports 160 cooperatives in 17 states, directly impacting
3,000 recyclers. That means a 25% larger investment, which increases
the impact by 45%, making Recycling through Brazil the largest
inclusive recycling program in the country.

The main challenges facing the initiative are related to the
development of cooperatives and to providing them with greater
infrastructure, management and social assistance.

The results in the operation of Coca-Cola Andina Brasil show a
breakthrough in two main aspects to prevent bottles from ending up
in landfills: 10.31% recovery of single-use disposable packaging and
2.4% in the sale in returnable formats.

https://www.cocacolabrasil.com.br/imprensa/release/reciclar-pelo-brasil-criado-pelacerve-
jaria-ambev-e-coca-cola-brasil-ganha-adesao-de-nestle-e-vigor

Post-Consumption Recycling (tons)
> 301-3, 306-2

23.1

53.8
51.4

6,105

tons recovered by Coca-Cola Andina Brazil
in conjunction with the alliances of the
Recilar pelo Brasil program

In the four countries in which we are
present, and thanks to the initiatives
developed, 6,234 tons of post-consumption
waste were recovered.

Sponsorship of cooperatives
Argentina

We have been sponsoring the "Los Carreros" cooperative in Villa
Urquiza, in the city of Córdoba, for three years. It has a team of 15
people, who are key to locating material at the ecopoints, selecting
them and compacting them in the best way and then valuing them.
Today 12 ecopoints remain active in large areas (supermarkets,
hypermarkets, educational institutions and building complexes) to
make recyclable materials more efficient. We have continued to build
alliances with different organizations, clients and other companies, as
well as municipalities committed to recycling and social
development.
Since the beginning of the program, 44,131 kg of PET have been
collected in the ecopoint network available for the member of the
cooperative "Los Carreros". This resulted in a significant increase in
their annual income, from Ar$ 14,306 in 2016 to Ar$ 136,240 in 2019.
Beyond providing them with tools for job safety and training, we were
able to increase incomes and that has a direct.

103-1, 103-2, 103-3, 301-3,303-2,
303-3, 303-4, 303-5

Context
Water is the main ingredient of our products; we aim to permanently
improve our efficiency in the use of that resource and understand the
social context in which we operate. Future trends in terms of climate
variability and risks pose an increasing challenge to countries in
water management.

Any business that uses water as a raw material has a responsibility to
the environment around it. The strategy of Coca-Cola Andina is to be
present with plans that contribute throughout the chain of this
resource, take care of the sources of origin, be efficient in its use and
treat the effluents with the best technology available.

Goal
Ensure water availability, sustainable
management and sanitation for all.

Why is it important?
Access to water, sanitation and hygiene is a
human right. However, thousands of millions of
people continue facing tremendous difficulties
to access the most basic services every day.

Efficiency in the use of water
(Liters of water used per liter of beverage produced lt/lt)

Argentina

2.32

1.52

2.33

1.53

Brazil

Chile

As part of the Coca-Cola System we share a commitment to replenish
100% of the water used.

Paraguay

Regarding water efficiency, the 2019 target(1) was 1.92lt/lt. We did not
achieve it, but with a lot of effort we reached 1.96 lt/lt. At Coca-Cola
Andina we have worked consistently and have managed to progress
from 2.13 lt/lt to 1.96 lt/lt between 2014 and 2019 down more than 8%
throughout the entire operation. Chile's operations were leaders in
this progress, with a 20% reduction, followed by Paraguay with 15%;
and Brazil with 14%.

2.33

1.87

2.26

1.85

2018

2019

(1) Weighted target by individual goals of each country.

For further details, review chapter 6, our metrics

Water is the main raw material of our products. Therefore,
we focus on the need to ensure the sustainability of the
resource both in terms of availability and quality. It is also a
shared natural resource with all the communities where we
operate; and so, we have an obligation to promote care for
water not only inside our plants, but also within the groups in
which we interact. We are concerned that communities
know and develop cultural awareness regarding the
importance of care for water, so we do not become affected
by the pollution of this resource, the lack of it or its misuse.

We are proud that our effluent
treatment plant at Duque de Caxias
has ultrafiltration and osmosis
systems that allow to reuse 10,800
m3/month of water.

Consumption of water by origin by country 2019 (% of total)

Effluent treatment (% of total)

4.6%

95.4%

0.02%
17.5%

45.9%

36.6%

12.2%

0.1%

3.7%

87.8%

99.9%

96.3%

100%

82.8%

100%

17.2%

Underground water (wells)

Network water (municipal)

Surface water

Rainwater

Own plant

Public plant

Note: the wastewater we evacuate to municipal systems complies with local regulations and the “Coca-Cola Operational Requirements” (KORE).

Reduce
Chile

Duque de Caxias
Brazil

We are proud of the team's perseverance to seek new
solutions for reducing water use. This forces us to work
hard with rejections generated in the extraction and
treatment processes. The main actions focused on the
equipment of the Nano filtration and Ultra filtration
rooms. On the other hand, everything related to
measurement and management of key processes in real
time, which allows us to act quickly and minimize the
waste of water.

The Duque de Caxias plant began operating during 2018 and in 2019 it
began increasing production as well as efficiency. The fine tuning of
the entire facility takes a while, but always keeping in mind the
efficiency of all resources used.

The project gives great importance to the Taquara River, protecting
all the riverbank that is in our area. So much so, that we developed
stormwater dispensing containers to mitigate impacts on the riverbed.
In addition, we recovered 320 cubic meters of rainwater.

Lastly, we can comment that the change in the production
mix seriously affects water consumption. For this reason,
Chile’s team optimized production planning by avoiding
waste in CIP processes (taste change cleanings).

During 2020 we continue training key personnel, of
cleaning and maintenance areas, among others, which
allows us to grow in the culture of care and control of
this fundamental resource.

Coca-Cola Andina Chile achieved
a 2.15 l/l ratio, which means
a reduction of more than 20%
compared to 2014.

The effluent treatment station, which has a capacity of 48 cubic
meters per hour, ends with an osmosis process that allows the reuse
of water delivering 15 cubic meters per hour.

We are proud to have one of the best plants in Latin America and that
this is the horizon that shows us best practices, both in terms of
process as well as environmental care.

A project milestone was the
recovery of the dam located on the
property which has a capacity of
156,000 cubic meters of water.

2019 water reused (m3)

Brazil

125,848
2,002
158,638

Chile

Paraguay

REPLENISH

Reforestation Renca hills Metropolitan Park in Chile
Chile

While trees need water to live, the water cycle could not sustain itself
without soil vegetation. That is why some projects seek to keep certain
ecosystems green that are crucial to preserving freshwater sources,
both rural and urban.

In this context, an initiative was carried out that is not only important from
the environmental point, but also because of the increased access to green
areas that it provides to a part of the population. It is the reforestation of the
Renca Hills Metropolitan Park, one of the lungs of the city. The activity, took
place in December, had hundreds of volunteers, who planted 15 thousand
native species. It is the first part of a process that will culminate in mid-2020,
with another planting day reaching 30 thousand trees.

We joined Fundación Cultiva, Fundación Avina and the Municipality of
Renca to make this challenging project that implies a long-term
commitment. But in addition to Cerro Renca, a decade ago the Company
took on the challenge of replenishing 100% of the water used in the
production of its products. Therefore, we are constantly working on
other projects, some of which we describe ahead and which meant
meeting the goal by the end of 2018.

https://www.coca-colaafrica.com/videos/la-reforestacion-del-emblematico-cerro-renca-
ytwd24i6zyyxi

Water Tender Process
Argentina

Mbaracayú Reserve
Paraguay

Durante 2019: We continue working with rural and semi-urban schools
so they can access safe water. This year we reached 6,806 young
people from schools located within the territory of Coca-Cola Andina
Argentina which already count with water filtering technologies to
eliminate bacteria and parasites.

educational establishments participated in our workshops on healthy
hygiene habits and water care. The actions are part of the joint work carried
out by Coca-Cola de Argentina, its bottling partner Andina, in partnership
with the social enterprise Proyecto Agua Segura, and in alliance with the
ministries of Social Development, Education and Agroindustry of the Nation
and civil society associations across the country.

The pillars of this initiative are the promotion of proposals to take care
of water sources or ensure their access allowing to generate changes
in vulnerable communities in the country. The tender process is
managed through Fundación Vida Silvestre Argentina (FVS) and Coca-
Cola Argentina. Since its inception in 2006, the contest has financed 30
projects, which have directly and indirectly benefited:

641,601

people.

We continue to promote the Water Conservation project in the
Mbaracayú Reserve with the Moisés Bertoni Foundation and the Avina
Foundation. The objective of this project focuses on water
replenishment based on sustainable agriculture in the Mbaracayú
Forest Biosphere Reserve area, Canindeyú Department,
in eastern Paraguay. The core area of the reserve has 64,000 hectares
with lush vegetation. It promotes the infiltration of rainwater that
naturally recharges the aquifer. Man's mishandling of soil causes its
gradual impoverishment and erosion, preventing rainwater from
infiltrating and affecting the aquifer reservoir. In its third year of
implementation, the project benefited more than:

213

producers and their families in 240 hectares contributing to replenish
the water we use in our products to the ecosystems and communities.

Why is it important?
A well-established energy system
supports all sectors, from business,
medicine and education to agriculture,
infrastructure, communications and
high technology

Adopt urgent measures
to combat climate
change and its effects.

Why is it important?
Climate change is threatening the
future, which affects all people on
the planet. Companies are no
stranger to this threat that will affect
their results if they do not take
immediate action.

ENERGY MANAGEMENT

103-1, 103-2, 103-3; 302-1, 302-3, 302-4, 302-5

OUR COMMITMENT AND HOW WE MEASURE IT

We are committed to growing in our industrial and commercial
activities in harmony with the environment, being proactive and
innovative. Energy efficiency is a commitment that we have strongly
instilled in each of our decisions. That is why we must comply with the
0.35 megajoules(1) per liter of beverage produced by 2020.

We count with reports on environmental management indicators as
well as teams dedicated to identifying risks and, specifically, working
on mitigating the risks associated with climate change. The value
chain is key to articulate initiatives that reduce carbon emissions, and
for this reason we work together to achieve this.

Use of energy ratio (Mj/liters produced)- 2019

Argentina

In the last five years we have reduced
energy used in production by 7%, while
volume in that period only decreased by 1%
due to the portfolio growth complexity.

ENERGY ORIGIN

Coca-Cola Andina's commitment to the environment is tied to the
rational use of natural resources. For this reason, we strive to increase
the use of renewable sources, both by growing those sources that
we already have and by an incursion into new alternatives. Currently
we have access to boilers that run on biomass, others that use biogas
from our effluent, solar and wind treatment plants that began as
performance tests, but are already participating in our energy used.
On the other hand, we depend on the availability and energy matrix of
the country where the plants are operating.

That is why we aim for the growth of the industrial and commercial
activities of the plants to be carried out in harmony with the ecosystems of
the areas of operation, being innovative and proactive.

0.36

0.28

0.30

0.26

Brazil

Chile

Paraguay

72%

0.51

0.50

19%

Energy sources 2019

2018

2019

For more information review chapter 6, our metrics

Biogas

Wind

Hydroelectric

Biomass

Non-renewable
sources

100% renewable electric energy
Chile

During 2019 there was evidence of the clean energy contract both in
the energy matrix used as in emissions reduction. 58% of the energy
used by Coca-Cola Andina Chile's operation comes from renewable
origin. This is a milestone for our franchise and proof that decisions
are made with both economic, social and environmental variables.

The contract includes certified energy (international certification IREC)
and the plants involved are the operations of Embotelladora
Andina, Envases Central, Vital Jugos and Vital Aguas, which are
located in Santiago and Antofagasta.

Scope 2 carbon foot print emissions
reduced by 1,398 tons annual.

PACKAGING, THE PROTAGONISTS OF CHANGE
The great efforts the Company is making to mitigate the impact of
packaging brings obvious benefits in the battle to reduce the effects
of climate change. One of these initiatives is the light weighting of PET
bottles. It is a permanent challenge to reduce the weight of bottles
and maintain the quality as well as the shelf life of the products on the
market. However, validation teams are prepared and motivated for these
changes. In the last year, Argentina, Brazil and Paraguay have performed
exercises to introduce lighter preforms for the usual products.

Clearly, this decrease in raw material use has an impact on costs. For
2019, savings were US$712,037. 445 tons of virgin resin were saved,
directly benefitting a reduction of 1,356 CO2 eq Tn. in emissions.

Tons of resin saved445
1,356

CO₂ eq Tn saved through light weighting

Recycle and reuse for climate change in mind

Use of recycled resin

As part of the packaging strategy, the Company decided to gradually
replace virgin resin with recycled resin. This brings not only
challenges for the development of the supplier chain, but also to
achieve agreements with competitive prices between the two resins.
Currently, only two of the four operations of Coca-Cola Andina have
national regulations that allow us to move forward with the initiative.
In Chile and Paraguay, we are working to make the government
become part of the change the world needs. In Brazil and Argentina,
the percentages of recycled resin increased. We are very proud of
the progress that the quality areas achieve in synergy with the
suppliers of preforms and resin. During 2019 we increased the
volumes of recycled resin by 5%, which has a significantly lower
carbon footprint than virgin resin. Therefore, the emission reduction
for 2019 was 5,980 CO2 eq. tons.

Returnable options are an excellent alternative for taking care of the
planet. We seek to increase transactions in returnable bottles.
because these perform excellently, both in emissions, in water
footprint and waste generation. Each 2-liter bottle of returnable PET
can be used between 12 and 16 times. This means that each bottle
avoids marketing between 12 and 16 disposable PET 2-liter bottles. In
conclusion, each 2-liter returnable bottle saves 1.17 CO2 Eq. kg

Replacing virgin resin with recycled resin
saved 5,980 CO₂ eq tons

For more information review chapter 6, our metrics

2018

2019

In order to help prevent the greenhouse effect, at Coca-Cola
Andina we implemented initiatives to reduce the carbon
footprint, promote energy savings and promote good
practices, from the time the beverage is produced until it
reaches the family table.

The measurement of Scope 1 includes direct emissions from
fuel consumption in production processes and/or in equipment
owned or controlled by the Company. In the case of fleet vehicles,
only those owned by the Company are considered.

Scope 2 means indirect emissions from the consumption of
electricity in processes, commercial and logistics activities or
by equipment owned or controlled by the Company.

Scope 3 emissions are defined as other indirect sources
associated with waste treatment and fuel used by our distributors.

Total emissions - CO2 (Eq) tons - 2019

Total emissions CO2 (EQ)- 2019

Total

45,977

55,413

210,013

311,405

COMMITMENT TO OUR CLIENTS

Our business strategy involves investing and installing refrigerators
at our customers' locations. The decision to purchase energyefficient
equipment takes several years. Thanks to maintenance and
renovation management, the refrigerator pool that saves up to 49%
energy grows every year. Our customers are the direct beneficiaries
of savings, mainly the traditional channel, helping thousands of
entrepreneurs reduce their energy costs. However, it is important to
note that emissions savings are a contribution to the entire society.

2018

2019

Cold equipment with energy savings

61%

Cold equipment without energy savings

39%

79%

21%

Evolution measured in this chart is proof that we are strongly committed
to the environment, beyond any economic-commercial variable.

Cold equipment CO2 (EQ):

Tn CO2 eq 161,088

Evolution cold equipment installed. Argentina

2010

2011

2012

2013

2014

2015

2018

2019

20,911

27,478

32,167

39,940

48,618

50,140

50,666

2,000

24,949

26,949
Total

6,100

6,802

9,402

6,700

9,450

38,334

38,300

65,355
Total

72,614
Total

72,269
Total

37,800

84,542
Total

36,500

36,568

37,732

94,520
Total

93,408
Total

97,848
Total

Equipment without controller

Equipment with EMS 55+ controller

Equipment with Led illumin. EMS 55+ controller

103-1, 103-2, 103-3, 401-1, 401-2,401-3

Our team

2019

Achieve gender equality
and empower all
women and girls.

Why is it important?
We want to be an active part of the change the
world must make regarding gender equality, as
both women and men must achieve a work-life
balance. As a Company we work to adapt to
new social models, we propose to break down
judgments and standards so that each gender
can discover new roles. Coca-Cola Andina not
only gives employment and joy to millions of
people, but is also able to enter the home,
tables and environments of employees. Hence
the responsibility to care for our people and
their families.

Promote sustained, inclusive and
sustainable economic growth, full
and productive employment and
decent work for all.

Why is it important?
Social equality is very important
for the development of societies. Companies must
promote fair conditions for employees, with the aim
that they can play their social role as citizens. We
also believe that this ethical behavior with the
people we relate to is replicated as part of a healthy
product chain for its growth. We are thousands of
collaborators throughout the four operations, in
which we care about providing our employees with
the best place to work, convinced that the
realization of work is fundamental for the
development of our activities, the well-being of our
people, economic growth and, ultimately, the
success of the organization.

COUNTRY

MEN

WOMEN

TOTAL

Argentina

264

2,795

3,059

Brazil

1,083

6,949

8,032

Chile

575

4,233

4,808

Paraguay

181

1,465

1,646

Holding

Total

2,122

15,464

17,586

Citizenship

Seniority

Age

Argentinean

Brazilian

Chilean

Paraguayan

Other citizenships

Between
9 and 12
years

Between
3 and 6
years

More than 6
and less than
9 years

More
than 12
years

Less than
3 years

More than
70 years

Between
41 and 50
years

Between
61 and 70
years

Between
18 and 29
years

Between
51 and 60
years

Between
30 and 40
years

*citizens of their respective operations.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS8EXHIBITS7CORPORATEINFORMATION2019 INTEGRATED ANNUAL REPORT20%27%22%39%10%2%1%43%7%12%18%4%17%46%24%9%
INTERNAL WORK CLIMATE MANAGEMENT
103-1, 103-2, 103-3, 401-1, 401-2,401-3

Employment satisfaction is a strategic priority. Therefore,
since 2008 we have tools to get to know what is the
satisfaction and motivation levels, such as the climate
survey. The survey is performed every two years in all our
operations simultaneously,

In 2019 we reached a favorability
rate of 72%; also it is noteworthy to
mention that we reached a
historical regional participation
figure at Coca-Cola Andina of 93%.

% of favorability

Among the factors surveyed, there is a consistent growth with strategic HR
initiatives and consistent with business focus and sustainable growth. In
terms of responses, it points out that more than 85% of those surveyed would
like to remain in the Company for more than 5 years, 86% believe that the
Company engages with the community and protects the environment, while
76% estimate that their employment enables to balance work responsibilities
with their personal life.

Sustainability (2019) (1): % of favorability

Diversity and inclusion (2019) (2): % of favorability

88%

77%

75%

74%

87%

80%

74%

70%

2012

2015

2017

2019

For more information review chapter 6, our metrics

(1) In my position I have opportunities and alternatives to
take care of natural resources such as water and energy,
as well as use material resources efficiently.

(2) I believe the company is committed to diversity,
integrating people with different skills, different
religions, races and cultures, sexual identity, etc.

or Coca-Cola Andina, people
make up one of the basic pillars
of the business and a factor of
future success. Respecting
them by offering them a
development perspective
balanced on their professional
and personal aspects.

Comprehensive talent management and people
development is a relevant topic for our employees
and for the Company. That is why it is key to develop,
enhance and retain talent to ensure business
continuity through the excellence of its teams. Given
the above, the focus is on five strategic initiatives:

• Identify skill gaps and develop learning circuits

• Continue talent development management and supervision

• Implement a diversity and inclusion strategy

• Position Coca-Cola Andina as the best employer brand

• Implement a talent agenda for the entire HR team

During 2019, the most significant actions taken were related to
gender equality, disability and generations. At Coca-Cola Andina we
are convinced that having a diverse team and an inclusive culture
have great benefits for people and the business. Not only do we
accept diversity, but we actively value and promote it, prioritizing
respect for the dignity of each person, regardless of race, sex, origin,
age, religion, marital status, sexual orientation, gender identity and/or
expression, disability, veteran status, education, life experience,
opinions, ideas and beliefs.

DIVERSITY AND INCLUSION
404-1, 402-1, 403-1

2019 Improvements

Creation and dissemination of the Policy of Respect for Persons,
Diversity and Inclusion. The operation in Chile achieved the target by
mid-2019, reaching 1% of people with disabilities in its payroll.

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HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS8EXHIBITS7CORPORATEINFORMATION2019 INTEGRATED ANNUAL REPORT

GENDER EQUALITY
103-1, 103-2, 103-3, 401-1, 401-2,401-3

Program “X mí” ("For me")
Argentina

Program focused on the employment inclusion of
women, promoted by the Government of the Province of
Córdoba. Oriented to promote internships in the
company, which allows to train and gain experience to
face the formal labor market in the future. Aimed at
women over the age of 25 who serve as heads of
household. The experience was very positive, as it
allowed to assign tasks in different sectors of the
production process in which there is a very low female
presence, such as warehouses, engineering and
distribution. Since July 1, 2019, 13 women have entered.

Female leadership and empowerment
Brazil

A conversations program on female leadership and
empowerment took place with the participation of Renata
Abreu, author of the book "Female Happiness". This initiative
reached more than 180 women in middle management,
that participated in person as well as via streaming in all
units of Coca-Cola Andina Brazil.

Brazil's operation demonstrates its commitment to boosting
the female presence in the company's various units, giving
everyone the possibility to apply for existing vacancies,
regardless of gender. In this context, seven female drivers
were incorporated in 2019, who were excellently received
by the distribution team.

Let's start-up together
Paraguay

The vulnerability women's empowerment program through workshops
and training has enabled their economic independence to be boosted,
improving their quality of life and that of their family. The scope of this
initiative has enabled more than 3,500 women artisans, recyclers, traders
and homeowners to train. During 2019, it focused on digital-age strategies
for entrepreneurships supported by the Central Bank of Paraguay and
the office of the nation's First Lady. The program also geographically
expanded, reaching areas such as Itaguá, where small traders received
management, leadership and self-esteem tools. Throughout the project,
indicator management is performed, which responds to personal
finances as well as education and motivation aspects.

This initiative is part of the 5by20
commitment, which seeks to empower
five million women by 2020 worldwide.

Incorporating women to the production process
Chile

The entry of female operators to the plant is a new milestone of the
operation in Chile, as there were no female staff in those positions. In
2019, six women joined, who, while holding fixed-term positions to
this day, the experiences of both the women involved as well as
their peers and supervisors have been very positive.

Awareness-raising workshops
Chile, Paraguay

Since 2018, a series of workshops of this type have been held, in which
more than 600 collaborators have taken part. These have taken place
in Chile (Antofagasta, Coquimbo, Santiago and Punta Arenas) and
Paraguay (Asunción).

As part of the trainings, we provide support and accompaniment in
the accreditation process to people with current disabilities, improve
accessibility to our facilities and analyze each job to consider necessary
adequacy. At the end of 2019 we partnered with the Tacal Foundation
to develop an open course for people with disabilities on tools for job
insertion, thinking about those who have not had this opportunity.

Job reinsertion initiatives
Chile

The program has been operating for three years and seeks to generate
cooperation networks for recruitment and selection. To this end, work
was carried out in conjunction with the Support Centre for Social
Integration (CAIS), which promotes processes of individual, family,
sociolabor and community reinsertion, of those who have presented legal
problems and who are in a voluntary process of eliminating a criminal
record or on parole under the control of Chilean Gendarmerie. People
who go through CAIS manage to reduce their re-offense rate from 70% to
10%. Since 2017, 107 people have gone through the program and 13
remain currently working.

TRAINING HOURS 2019
404-1

Training hours imparted

Training hours imparted to women

288,897
48,229
16.4

Average training hours per employee

For more information review chapter 6, our metrics

They are aimed at health care and
prevention; development of a healthy
life style and the progress and
enjoyment of the family. The
compensations and benefits offered
by Coca-Cola Andina provide for the
requirements of labor legislation in
each of the countries in which we
have operations, but year after year
the areas strive to go further.

75% of operations

100% of operations

Health

Maternity and paternity leave (in addition to
legally mandatory)

Work gymnastics: Access to plans of physical
activities in own installations or by agreement,
for comprehensive care and recreation

Medical assistance and insurance.

Life insurance additional to legally mandatory.

Complete annual medical check-up for
managers, heads of areas and supervisors.

50% of operations

Health

Dental Plan.

Nutritionist at plant.

Conferences, workshops and speeches of the
interest of the collaborators and family groups.

Maternity leave and paid lactation time (six
months of decrease to half a day of work
without salary reduction for women reinstated
after maternity leave).

Extended paternity leave for 7 consecutive
days (including legal requirement).

Preventive vaccination programs (dengue,
influenza, yellow fever, hepatitis A, etc.).

Discount programs with health institutions and
pharmacies

25% of operations

Health

Health insurance or social work plan.
Includes the employee and family group,
being the Company who absorbs all the
differences that involve the value of the
plan versus legal contributions.

Food re-education Programs.

Discount programs with nutrition
companies and others.

Snack: Fruit and yogurt for administrative
positions.

Economic

Free Beverages.

Christmas care package.

Product availability for employee for
internal consumption

Supplementary annual salary.

Economic

Payment day (last business day of the month
or previous Friday).

Free soft drinks for birthdays of the children of
collaborators.

Hotel expense reimbursement to DCCT
workers with a cap.

Life insurance additional to legally mandatory.

School Kit, bonus for children under the age of 18.

Cafeteria service.

End of year gift

Discount in the purchase of company
products

University or tertiary degree for DCCT(1)
workers.

Special Entertainment (Labor Day, woman’s
day, child’s day, secretary’s day, etc.)

Special bonus for retirees

Shuttle service for all personnel

Discount club (vehicles, real estate, services, etc.)

Contest for children of collaborators with best
grades.

Extraordinary advance of salary

Gift for birth of a child.

Subsidy payment medical leaves for first three
days not covered by health plan.

Optional auto/home Insurance with the
Company’s insurance broker

Banco Galicia branch office at Montecristo plant

12 additional salaries to the collective life
insurance at a very low cost and/or
incorporate the spouse into the insurance
coverage

Education

Discounts on the rates of different
education programs for employees.

Social

Leave for marriage, death of close family
member, siblings and grandparents.

Special Entertainment (Labor Day, woman’s
day, child’s day, secretary’s day, etc.)

Casual Friday.

Social

Tickets to participate in events.

(1) In a collective bargaining agreement.
(2) Out of collective bargaining agreement.

Education

Leave for rendering exams.

Education

Academic excellence scholarships for children
of workers for University career.

Social

Flexible working hours for areas where the
operation is not affected.

Additional week of vacation for heads of areas
and above positions

Internal library

Accompaniment of retired employees

Summer and winter garments for supporting
personnel.

4 day leave of absence for spouse’s death.

1 day leave of absence for blood donation.

Enjoyment of holiday while on vacation period.

1 day leave of absence for moving into new
home

Christmas party for worker and family.

Half day off on birthday FCCT(2)

Paid holiday license with holiday bonus

Additional two-day holiday allowance for travel
over 1,000 km for a minimum of 10 days (DCCT)

One day leave extension for indirect family
death (mandatory law grants one day)

One day extended paternity leave (the law
mandates two days, we give three)

Breastfeeding room

Nursery

Christmas gift for children of workers

LTIR

LTISR

All of the operations of Coca-Cola Andina have a
Behavior Based Safety Management Program. Its main
objective is to implement Safety Culture through the
commitment and responsibility of senior management
and its managers, as well as the effective participation
of employees, third parties and service providers.
The program has three instances:

• Phase I consists of requirements 1 to 5: Commitment Letter,
Golden Rules, Integration, Communication Program and
Accident and Incident Management.

• Phase II is composed of requirements 6 to 13: Recognition
Program, Disciplinary Measures, Behavioral Observation,
Security Dialogues, Safety Academy, Training, Management
Analysis and Classification.

• Phase III is the last requisite for Certification and is

composed of requirements 14 to 16: Family Safety Program,
Third Party Safety Program and Quality of Life Program.

2.61

3.11

75.50

87.38

0.44

0.39

1.62

0.78

0.38

0.52

5.53

4.83

1.73

3.5

27.39

20.6

Incident rate, number of incidents
per each 200,000 hours worked

Incident severity rate, number of days lost
per each 200,000 hours worked

2018

2019

LTIR: Chile

4
1
0
2

5
1
0
2

6
1
0
2

7
1
0
2

8
1
0
2

9
1
0
2

"We reduced incidents
in the operation of
Coca-Cola Andina Chile"

At Coca-Cola Andina we
respect and encourgae
the right to freedom of
association in every
country we operate.

We maintain ongoing dialogue with trade unions to which
our collaborators belong. Wage updates are negotiated
with trade unions on the dates specified through
categories, and all collaborators, whether affiliated or not
with a trade union, are covered by the collective bargaining
agreements of activity branch to which they belong.
During the last years we worked not only on the economic
benefits, but also on the non-economic ones, seeking to
adapt to the new needs of our employees.

We hold regular meetings with trade union organizations to
prevent significant impacts on employees; so, if there is a
project that impacts them, changes and forms of
implementation are previously agreed upon. In the
following table you can review the adhesion of
collaborators by contract type.

Relationship between beginning minimum wage
(basic salary without additional items) and legal local minimum wage

% Unionized personnel (2019)

372%

329%

173%

118%

124%

120%

106%

2018

2019

Argentina

Brazil

Chile

Paraguay

66%

10%

44%

25%

% collaborators with performance evaluation (2019)

Argentina

Brazil

Chile

Paraguay

87%

100%

97%

58%

Why is it important?
We assume Sustainable Development Goal #11 supporting the
communities in which we operate. We pay special attention
to developing programs that support young people and
women, generating skills and opportunities so that they can
develop Because we seek to contribute to the progress of the
communities where we develop our activities, through programs
to foster local economies, generate opportunities and improve
the quality of life of people.

Ensure modalities of sustainable consumption
and production. Consumption and sustainable
production consist of promoting the efficient use of
resources and energy, building infrastructures that
do not harm the environment, improving access to
basic services and creating ecofriendly jobs, with
fair pay and good working conditions

Why is it important?
At Coca-Cola Andina we believe that our suppliers are
a key link in our value chain. For this reason, we work
together with those who share our values and operate
ethically to achieve excellence

COMMUNITY

103-1, 103-2, 103-3, 203-1, 203-2, 413-1, 413-2

Community investment
MUS$

142

136

265

264

t Coca-Cola Andina we understand our
responsibility to the communities in which we
operate, so we focus on establishing long
term trust-based relationships and contribute
value in the issues that are relevant to each
of them. Building these trust relationships
allows us to be increasingly ambitious in
addressing society's challenges.

We also encourage volunteer actions in our employees. During 2019 the
Company achieved 1,737 hours of support for community programs
thanks to the predisposition and passion of our employees. This not only
has a positive impact on our communities, but also generates bonds of
trust, learning opportunities, networking between different staff
members, motivation and pride of belonging to Coca-Cola Andina.
The focus on the community is primarily with our neighbors,
emphasizing the communities close to the operations we have. During
2019 community investment was MUS$ 1.7. The most prominent
initiatives are geared towards empowerment, education and nutrition.

586

474

441

418

2018

2019

Argentina
Healthy cooking workshop with Banco de Alimentos and
Pimienta Negra

Workshop Families at the table - Banco de Alimentos.

Brazil
Coletivo Jovem: Training and education to enter the labor
market, aimed at young people between 16 and 25 years old.
Project in partnership with NGOs of the communities of Rio de
Janeiro and Ribeirão Preto.

Ações do Kolabora (Volunteer Program) – The mission is to
graduate young people. The goal of making a celebration taking
the opportunity to give them an approach to the company.

23 collaborators participated to work voluntarily at a graduation
party. Serving approximately 100 young people
from the coletivo Cidade de Deus. 23 volunteers - 100 impacted.

Agua mais acesso Program: in 2019 we expanded our
performance to 29 communities in the states of: Amazonas (3),
Ceará (10), Espirito Santo (3), Minas Gerais (3), Pará (5),
Pernambuco (3) and Piauí (2).

Employability workshops.

Plant visits31.350

Installation of filters for access to water in vulnerable areas.

Solidarity Christmas Action to Different Institutions with
Employees: Cordoba, Rosario.

Solidarity Fairs Iconic dates (Friend's Day, Mother's Day,
Christmas): Inclusive Work.

Fonbec: Sponsoring children to accompany in their
schooling.

Junior Achievement: Women Entrepreneurs, Skills for
success, Learning to undertake in the environment,

Challenge and Innovation, Fie Scholarships.

Techo, Construction of three seed houses.

WWW- Association with Municipalities to increase PET
recovery:

Villa Allende, Unquillo, Rio Cuarto, Rosario, Junin, Godoy
Cruz

Argentina's Altas de bancos de alimentos

WWW- Unquillo Municipality Training Program PET
recovery. Ril

Donation of Water for places in environmental emergency

Scrap donations 400 cold equipment CONIN

Recuperando Ando School Competition. 8 Cordoba Schools

Corporate volunteering at Inclúyeme Food Bank, inclusion
program in the company's activities. Inclusive supplier-
Omas scraps of fabrics.

Summer action recovering PET at bus stops: Monte
Hermoso, Santa Fe, Cordoba.

Chateau Park cleaning and afforestation with Greentech

Sponsoring women's empowerment events

Kiosquera Women Empowerment Program

Beverage donation to NGOs and public good institutions

PET recovery actions in marathons and public events

Awareness Media Campaign for Municipalities

Chile
"Renca, Play and Learn in Community" Program, in
partnership with Fútbol más and the Municipality of Renca

Environmental education in Schools in alliance with Kyklos
and the Municipalities of Renca, Maipú, Puente Alto
and San Joaquín.

Open door programs: Coca-Cola Andina Cinema;
Happiness factory

First place in Urban Municipal Initiatives Award (PIMU) in the
category "Public-Private Alliance"

Finalists in "Zero Garbage Awards" in the educational
establishment category

We have four years of partnership with the Food Network
Annual perception measurement of the Renca community
with ClioDinamica

Contribution to Renca's community recycling network with
PET containers.

We have served for two years in the Clean Production
Agreement "Zero Waste to Disposal"

We adhere as the Coca-Cola System to "Pact for Plastics"

We adhere as a Coca-Cola System to the Clean Production
Agreement "Eco-labeling of Containers and Packaging".

Paraguay
Encourage community participation for protection of the Arroyo
Pa'I Ñu basin through the environmental awareness campaign
led by the H2O Orchestra of Ñemby. This project was integrated
into the internal recycling campaign implemented at PARESA
for collaborators of the company with the aim of boosting PET
waste recycling to subsequently materialize what was raised in
the donation of musical instruments for the Ñemby Orchestra.

http://https/www.coca-coladeparaguay.com.py/historias/comunidad-
vecinos-se-suman-a-la-limpieza-del-arroyo-pai-nu-para-recuperar-

Raise awareness of the preservation of forests and country
native species of trees, implement national reforestation
campaigns in wildlife depopulated areas driven by the NGO
A Todo Pulmon Paraguay Respira

Link

Boost the EcoPoints network (waste recovery zones) in
conjunction with the company Soluciones Ecológicas
through the ASU Recicla project, Competition in 10 Asunción
neighborhoods with the aim of incentivizing separation
in source of waste through awareness-raising days and
accompaniment in participating neighborhoods.

link

Installation of containers for PET waste recovery in
brandsponsored events, such as: runs, intercollegiate sport
events, etc.

https://www.solucionesecologicas.com.py/#servicios

Collection of PET bottle caps for donation to the NGO
LUCHA, which leads initiatives for children with cancer.

https://es-la.facebook.com LuchaLuchandoUnidosContraElCancer/

Finance and Management Trainings to more than 2,500
vulnerable women to strengthen their economic independence,
through the Emprendemos Juntas program, promoted together
with Fundación Paraguaya.

link

Water replenishment based on sustainable agriculture with
149 producers in the Mbaracayú Reserve (Canindeyú) to
achieve greater water infiltration to groundwater, in conjunction
with Fundación Moisés Bertoni and Fundación Avina
http://https://www.coca-coladeparaguay.com.py/historias/
comunidad-un-viaje-al-corazon-de-la-reserva-mbaracayu

Improved access to safe water and generation of change in
people's behavior for adopting good practices related to
water, sanitation and hygiene in 56 communities and 9 cities
through the Ykuaá project, implemented by Fundación
Moisés Bertoni in collaboration with SENASA, with the
following strategic allies: One Drop, BID, Fundación Coca-
Cola and Fundación FEMSA.

https://www.lazosdeagua.org/y-kuaa

Argentina

IARSE

http://www.iarse.org/

FONBEC

http://fonbec.org/

Banco de alimentos Córdoba

Banco de alimentos Rosario

https://bancodealimentoscba.org.ar/

Banco de alimentos Bahía Blanca

Banco de alimentos Santo Tomé

Banco de alimentos Mendoza

Banco de alimentos San Rafael

CONIN

https://bancodealimentoscba.org.ar/

Junior Achievement
https://junior.org.ar/

Techo

Agua Segura

Cooperativa Los Carreros

Empate FC

Asociación Hospital Infantil

OMAS

Entre Costuras

Hospital San Roque

Hospital de Niños

Fundadoras

Greentech

7 Reinas

Manos Abiertas

Brazil

Instituto Coca-Cola Brasil

Chile

AB Chile,

https//www.cocacolabrasil.com.br/institutococacolabrasil )

http://abchile.cl/

Instituto Coca-Cola Brasil

https//www.cocacolabrasil.com.br/institutococacolabrasil )

AFBCC - Associação Fabricantes Brasileiros de Coca Cola

http://www.afbcc.com.br/

ACRJ- Associação Comercial do Rio de Janeiro

ABIR - Associação Brasileira das Indústrias de Refrigerante

https://abir.org.br/

CIESP - Centro de Indústria do Estado de São Paulo

CIRJ - Confederação das Industrias do Rio de Janeiro

https://www.firjan.com.br/cirj/

ARBERISA – Associação Recreativa e Beneficiente dos
Empregados de Companhia de Bebidas Ipiranga

SOFOFA,

https://web.sofofa.cl/

Fundación Fútbol Más,
http://futbolmas.org/

Empresa B Kyklos,

https://www.kyklos.cl/

Red de alimentos,

http://www.redalimentos.cl/

Empresa B Triciclos,

http://www.triciclos.net/es/

AGIP,

https://www.agipchile.cl/

AIA,

https://www.aia.cl/

Cámara de Comercio de Santiago,

https://www.ccs.cl/

ANDA,

https://www.anda.cl/

Confederación Gremial de Comercio Detallista
y Turismo de Chile

Fundación Volando en V
https://dos.volandoenv.cl/

Fundación Dulzura para el Alma,

http://dulzuraparaelalma.cl/

Fundación Huella Local,
http://www.huellalocal.cl/

Empresas Sumando Valor,
https://sumandovalor.cl/

Fundación Las Rosas,

http://www.fundacionlasrosas.cl

Paraguay

A Todo Pulmón

https://atodopulmon.org/

ADEC: Asociación de Empresarios Cristianos

https://www.adec.org.py/

Asociación Tierranuestra

ASOFAM: Asociación de familias del BID

Banco de Alimentos

https://bancodealimentos.org.py/

BID: Banco Interamericano de Desarrollo
Bomberos Voluntarios

CAP: Cámara de Anunciantes del Paraguay

https://cap.org.py/

Club de Ejecutivos del Paraguay
https://www.clubdeejecutivos.org.py/

Cruz Roja Paraguaya

Defensores del Chaco: water and youth forum

Doctores de la Risa: assistance in public hospitals

Enseña Paraguay: strengthening education in public schools

Fundación Gabriela Duarte: to promote music

Fundación Dequeni: actions to promote education

Fundación Pa'i Puku: foundation that runs the school
in el Chaco

Fundación Paraguaya/Programa de

Empoderamiento de la Mujer

Fundación Saraki

Fundación SONICA Paraguay: empowering young people
through music

FUPADI: Paraguayan Diabetes Foundation

ONG GOOD NEIGHBORS: NGO working with people in
poverty situation

Habitat para la Humanidad

Sistema B Paraguay: NGO that certifies companies with
environmental impact

Techo Paraguay

Teleton Paraguay

Education support program
Argentina

Coletivo Joven Project
Brazil

Las Omas Organizations
Argentina

The bottling plant located in Córdoba is neighbor to the
Chacras de la Merced neighborhood, whom we met three
years ago providing infrastructure for sanitation and
construction of toilets for some families in need. From that
moment we started a relationship that benefited the
community, being part of the safe water project through
which they received water purifying filters. We also work
with the women of the neighborhood, through trainings
imparted by Junior Achievement, introducing
entrepreneurs to management tools.

During 2019 this relationship yielded one of the best results,
starting a commercial link with the Company. Work was
performed on developing a program that allowed to
support the women, to giving them fabric scraps from the
plant, representing more than 1,710 kilos of fabric. With
them, ten families organized an entrepreneurship, through
which they managed to earn revenues of Ar$126,500,
allowing them to find new opportunities for each of them.
They are now still suppliers with great growth potential.

In 2019, Coca-Cola Andina and Junior Achievement developed five
educational programs in seven municipalities of the country, their
main focus being entrepreneurship as a motivation tool for the
challenges of life. All the trainings – attended by 150 people – seek to
generate the entrepreneurial spirit among the participants, providing
them with management and innovation tools.

Another educational initiative carried out in Argentina was together
with the Municipality of Córdoba, Urbacor and Universidad Siglo 21:
the competition "Recuperando Ando" was held, in six institutions
(schools and clubs). The aim is to educate and train institutions as
responsible waste generators. In the three months of the competition,
2,243 kg of PET bottles were recovered.

For the third year in a row, we have grown the sponsorship initiative
for children and young people so that they can continue their
academic studies; generating a bond between sponsor and sponsee.
In the economic contexts that the country lives, the help of the
sponsor is a great contribution to families and an incentive to continue
studying. In 2019 there were 91 sponsees and 102 collaborators, four
more than the previous year.

In 2019 Coca-Cola Brazil Institute turned 20 years old and its contribution
is undisputed, so we are proud to belong to the Coca- Cola System and
be part of the work achieved. Promoting and expanding social impact
is the organization's main mission and achieves its goal using one of the
strengths of Coca-Cola, the network of alliances. In these years it was
successfully impacted more than 294 thousand people from all over
Brazil, mainly with the following programs:

• Coletivo Jovem, generating work opportunities and increase the

income of young people.

• Safe water access in rural areas

30%

of young people get their first job

Achieve to increase by

40%

family income

Volunteering
Brazil

Andina Brazil joined the initiative proposed by The Coca-Cola
Company, hand in hand with the Coca-Cola Brazil Institute, seeking the
challenge of the cultural change of our collaborators as well as of
approaching communities with purposeful actions. The volunteer
program connects the social action platform with bottler contributors
to generate shared value. We were present in the trainings imparted
under the Coletivo Jovem program in Cidade de Deus, where 84
company employees supported the training of 134 young people.

The program focuses on developing a culture of energy efficiency in
children, true change makers, with an eye on the future. It is carried
out in collaboration with Ineergias, the program of the Universidad de
La Serena that embarked on the training of teachers of schools of the
Fourth Region, to spread example in their educational communities.

Ineergias also provided support for schools to develop their own
energy efficiency projects, an instance where the Coca-Cola Andina
plant in Coquimbo has been a strategic ally. The Company made
recyclable material available to schools - between PET packaging,
caps and pallets - to collaborate with the creative ideas of students
and teachers.

Another emblematic program of Chile's operation is Kyklos, which has
been running since 2016 and through which we seek the
transformation of the community by educating children and leading
to a change in the curriculum mesh of schools. Students are change
makers of their community as they incorporate recycling and material
reduction practices; new skills that contribute to improving the quality
of life and well-being of society.

Beneficiaries

28schools
16,746
816training hours
28.3
5.8

tons of waste recovered

tons of plastic PET

Also noteworthy is the Fútbol Más alliance, which is part of the
program "Renca, plays and learns in community". It seeks to improve
coexistence within the municipal schools in the area, through the
methodology of five values of Fútbol Más: joy, responsibility,
teamwork, respect and creativity. The success of the initiative
achieves that children want to continue the project in their schools, as
it generates a great integration between boys and girls and a healthy
coexistence and interaction between the schools and the
neighborhoods to which they belong.

794 children participated in the initiative and
69% attended the socio-sporting workshops.

Emprendemos Juntas (We start-up together)
Paraguay

At Coca-Cola Andina we are aware that women's empowerment has
a lot to do with the success of the community in which you live.
When women are skilled and treated fairly, society and the economy
immediately benefit and a more sustainable future is created for all.

In line with the global initiative - 5 million empowered women by 2020:
the ambitious goal of our 5by20 program - Coca-Cola Paresa and
Fundación Paraguaya promote "Emprendemos Juntas", a program,
which in 2017 trained a total of 750 women, and that during 2018
benefited 2,500 Paraguayan women from our value chain, including
customers, suppliers, recyclers and artisans. During 2019, the number
exceeded 5,000 women, extending the initiative to 25 municipalities
across the country. A milestone of the year was the signing of a
cooperation agreement with the First Lady of the Nation to continue
empowering more women.

The training they received in management and administration allowed
them to project an entrepreneurship or improve the one they already
had in place. This program is focused on providing training and tooling
opportunities to vulnerable women, so that they can have a more
active role in the development of their entrepreneurship. Our goal is
for women to earn income, diversify them, save and access credit, to
be development agents in their communities.

In three years we trained

5.000

women.

Recovering public space
Paraguay

The Pa’i Ñu stream, which flows into the Paraguay River, no longer
looks the same. Authorities are concerned about its contamination,
who are working on the recovery of the stream. In order to assist in this
task, the “Sonidos de la Tierra” program organized the environmental
marathon "Somos H2O" to collaborate with the cleaning of the stream.
Students, volunteers of Fundación Tierranuestra, musicians of the H2O
Sonidos de Ñemby Orchestra and collaborators of Coca-Cola Andina
Paraguay toured the Pa’i Ñu neighborhood inviting neighbors to join
this great environmental crusade. Participants of the initiative formed
working groups to perform riverside cleanup actions, visit the homes of
neighbors, distribute decals, and plant native trees.

At the end of the day, the participants collected 1,000 kilos of waste,
which was collected by the Municipality of Ñemby to be recycled.

https://www.coca-coladeparaguay.com.py/historias/comunidad-
vecinos-se-suman-a-la-limpieza-del-arroyo-pai-nu-para-recuperar-

Ensure sustainable consumption and
production.Sustainable consumption and
production consist of promoting the efficient use
of resources and energy, building infrastructures
that do not harm the environment, improving
access to basic services and creating green
jobs, paid and with good working conditions.

Why is it important?
At Coca-Cola Andina we believe that our
suppliers are a key link in our value chain.
Consequently, we work together with those
who share our values and operate ethically to
achieve excellence

Our commitment to suppliers and how we manage it
For Coca-Cola Andina, our suppliers are a key part of the value chain.
Therefore, we focus on establishing trusting and long-term
relationships with those who share our values and principles, in order
to achieve excellence ethically and responsibly with our
stakeholders. We also take care of having a safe and sustainable
supply of raw materials required in the process.

Supplier Guiding Principles (SGP)
The Coca-Cola Company has developed a set of Supplier Guiding
Principles (SGP), a vital pillar of The Coca-Cola Company’s human
rights and workplace accountability programs. These programs are
driven by the belief that good corporate citizenship is essential to our
long-term business success and must be reflected in our
relationships and actions and of those who are authorized to directly
supply our business. Recognizing that there are differences in laws,
customs, and economic conditions that affect the different
operations, we believe that shared values must serve as the
foundation for relationships us and our suppliers, starting with the
commitment to respect all human rights.

At Coca-Cola Andina we are committed to defending the
fundamental principles of international human rights in the workplace,
wherever we operate. Our commitment to human rights is formalized
by respecting the United Nations Declaration of Human Rights, the
Declaration of Fundamental Principles and Rights in the Workplace of
the International Labor Organization and the principles of the United
Nations Global Compact. The Company's policy on this topic is
reflected in the "Supplier Guiding Principles".

The Supplier Guiding Principles communicate our values and
expectations and emphasize the importance of responsible
workplace practices that comply, at a minimum, with applicable laws.
The main suppliers of Coca-Cola Andina must comply with the
requirements provided for in the document and then undergo regular
evaluations carried out by accredited and independent firms.

Our suppliers must comply with following requirements

Freedom of association and collective bargaining

Prohibit child labor

Prohibit forced labor and abuse of labor

Eliminate discrimination

Work hours and wages

Provide a safe and healthy workplace

Protect the environment

Business integrity

Grievance procedure and remedy

Management systems for ensuring lawful
compliance and respect for all human rights

Human rights self-assessment
The Coca-Cola Company has developed self-assessment checklists
on human rights. The self-assessment checklists assist with awareness
and due diligence to address impacts that, experience has shown, may
be present in the value chain. By conducting such assessments at the
outset, with periodic follow-ups, human rights risks are identified and
mitigated. If an issue is identified, community engagement is expected
to be at the heart of any mitigation strategy. These self-assessment
tools are only one piece of the Company’s ongoing Human Rights
due diligence process. Coca-Cola Andina, as part of The Coca-Cola
Company system, collaborates with the follow up.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS8EXHIBITS7CORPORATEINFORMATION2019 INTEGRATED ANNUAL REPORTWe prioritize hiring local suppliers
We seek to make acquisitions and purchases from local suppliers
based in the cities where we have the production plants and the
main distribution centers. Essentially, this decision seeks to promote
the local development of supply companies, generate integration
with the supply chain, reduce delivery time and the risk of exposure
to variations in foreign currency rates. The added value that the
Coca-Cola System generates, together with its entire value chain, is
significant, accounting for 0.3% of the GDP of the countries where it
operates. The joint task with suppliers favors greater economic and
social and environmental benefits.

Argentina Brazil

Chile

Paraguay

Supplier assessment
We care about building a Win-Win relationship with our suppliers, supporting their activities and giving way to key partnerships with those who
are critical to the operation. Our policy is to encourage their growth, betting on their continuous improvement and those who achieve greater
development in quality, social responsibility and care of the environment are the ones who prevail at the time of choosing our suppliers.

Suppliers assessed

ARGENTINA

BRAZIL

CHILE

2018

238

2019

278

146

2,325

4,160

1,850

1,186

Note: The scope of this information covers the operations of Argentina, Brazil and Chile. We do not have metrics in Paraguay yet.
For more details review chapter 6, our metrics

Coca-Cola Andina Argentina held a new workshop for suppliers
The Company is actively and responsibly involved with the actors
that are part of its value chain, focusing on well-being, the
environment and communities.

Supply Chain Committees
We participate in the bottler sourcing committees of The Coca-
Cola Company, where we work on joint initiatives to enhance
business volumes and good business practices. Reaching
agreements for the development of suppliers of strategic raw
materials and adaptation to our quality standards.

Number of
suppliers

% national
suppliers

% expense on
national
suppliers

96.3%

99.7%

96.8%

89.0%

94.9%

98.4%

98.9%

62.0%

SUPPLIER CLASSIFICATION
103-1, 103-2, 103-3, 308-1, 308-2

At Coca-Cola Andina we classify suppliers as critical and noncritical.

Critical suppliers
Suppliers of raw materials directly related to our beverages.

Percentage of spend evaluated suppliers:

40%

21%

Thus, in September, the second workshop for suppliers was held at
the Coca-Cola plant, located on the way to Monte Cristo. This
activity, organized by the procurement area, aims to encourage
companies that work with the Company to innovate and grow
sustainably, sharing information and trends that help generate new
and better business. More than 70 local, national and international
suppliers from different areas participated, addressing topics related
to the Company, on purchasing, marketing and sustainability, posing
the challenges that the future demands.

70%

During the workshop, dynamics were generated among the
attendees in order to create links, share good practices and
detect opportunities that can translate into contributions of value.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS8EXHIBITS7CORPORATEINFORMATION2019 INTEGRATED ANNUAL REPORT

DIALOGUE WITH
STAKEHOLDERS

102-40, 102-42, 102-43, 102-44

RELEVANT TOPICS FOR STAKEHOLDERS

Identification
We followed AA1000 Accountability standards regarding
dialogue with these groups, in addition to GRI, to identify
stakeholders, i.e. those individuals or groups who are directly
or indirectly affected by the Company's activity.

To achieve this purpose, the first thing was to separate them
according to their specific interests and then prioritize their
participation in the preparation of this report. Then, we
validated whether sustainability standards and internal
policies meet the expectations of the different stakeholders,
as well as emerging issues and/or concerns that have been
identified through communication channels. Permanently,
through the sustainability committees and the network they
form, the identified audiences are reviewed to ensure their
representativeness year after year, validating whether there
were variations in their expectations. The following table
reflects the seven stakeholders we engage with that have
the ability to influence our strategy, management and
dialogue channels. We seek to know their expectations and
identify opportunities to generate shared value.

Prioritization of relevant topics
During 2018, a process of both internal and external
interviews and meetings was conducted with some
stakeholders, updating their materiality study.

Validation
The most prominent subjects with the greatest potential for
influence in the activities and strategy of the group, were
subjected to a validation process by stakeholders - through
interviews and work meetings - with the aim of knowing
their position on those subjects and the importance they
assign to them.

Review
Materiality analysis results are periodically reviewed and
updated as part of the process of preparing the Integrated
Annual Report. Material topics that are relevant to
management are monitored with more than 40 indicators
that apply to the entire Company and the responsibility for
this lies with the Management Control area. On a quarterly
basis, improvements are reviewed and proposed.

STAKEHOLDERS

COMMUNICATION CHANNELS

WHY IT IS IMPORTANT

Shareholders
and Investors

General Shareholders' Meeting

Special Shareholders' Meeting

Conference calls

Meetings

Visits

Integrated Annual Report

20F Annual Report

Quarterly Press Releases

Website - Investor section

Coca-Cola Andina's IR Application

Emailing

Internal emails reporting on relevant news.

We periodically perform Organizational Climate

Collaborators

measurements, which allow us to recognize our main
strengths and improvement opportunities.

Internal magazine

Face-to-face meetings

Anonymous reporting channel

Regular communication

Meetings

Participation in joint initiatives

Direct relationship with specific areas

Building joint plans

Audits

Anonymous reporting channel

Corporate website

Integrated Annual Report

The Coca Cola
Company

It is essential for us to provide information about
the evolution of our businesses, our current and
future view of the Company. It is a key function
of the Investor Relations area to perform this
task under the principles of equality,
transparency and fluency.

At Coca-Cola Andina, our partners form the
basis of business sustainability and allow
us to build a better company. We take care
of managing industrial relations, we care
that people feel valued and can develop
their skills.

The partner that develops the beverage
brands we bottle and sell. A supplier and a
shareholder. There is ongoing interaction to
develop joint initiatives, planning and
participation of other groups that have a
direct focus on certain subjects.

Regular communication through channels established by
regulation standards in each country

Meetings with different government levels

Government and
Regulating Entity

Integrated Annual Report

Anonymous reporting channel

Through the web platform of the CMF (Financial Market Commission)

At Coca-Cola Andina we want and seek
to accompany the trends of government
regulations. We have teams dedicated to
proactively participating in public
consultations as well as responding to
the inquiries we receive.

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COMMUNICATION CHANNELS

WHY IT IS IMPORTANT

STAKEHOLDERS
102-40, 102-42, 102-
43, 102-44

Suppliers

Regular communication channels

Digital channels

Periodic meetings

Interviews

Corporate website

Biddings

Training

Integrated Annual Report

Anonymous reporting channel

Regular communication channels

Digital channels

Training

Interviews

Corporate website

Biddings

Clients

Integrated Annual Report

Reporting line

meetings with commercial and sales teams

Satisfaction surveys and analysis

Client development and service centers, call centers

Plant visits

Anonymous reporting channel

Digital channels

Corporate website

Integrated Annual Report

Satisfaction surveys and analysis

Consumers

Client development and service centers, call centers

Plant visits

Anonymous reporting channel Perception and assessment

surveys and analysis

Relationship activities

One of the most relevant stakeholders for
Coca-Cola Andina, in terms of Generated
Economic Value, are our suppliers.

It is important for us to be able to share
knowledge and experience and find ways to
use all our resources as efficiently as
possible, reducing costs. But also giving
the opportunity to suppliers who are part of
our neighboring community. This is part of
the way we understand the integration of
sustainability into our business model.

Coca-Cola Andina has a wide range of sales
points which include supermarkets,
wholesalers, hotels, restaurants, cafes,
cinemas, e-commerce and retailers, among
others, which sell our products to
consumers.

All the people who consume our
products in the countries where
we operate.

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chapter.six |

OUR MAIN
METRICS

t Coca-Cola Andina we have been reporting
our metrics for seven consecutive years
and reviewing industry trends, a period in
which we have advanced to empathize with
stakeholders who read this Integrated Annual
Report and to demonstrate, through
it, our vocation for management transparency.

This year we have developed a special chapter dedicated to metrics
and trends, because they allow us to monitor and manage in the
most agile way possible the impact of our activity in the financial field
and in ESG aspects (Environmental, Social and Corporate Governance).
This is an essential part of the financial sustainability of our supply
chain and business.

"We have developed KPIs of all topics, which we
periodically monitor. In addition, in recent years we have
been incorporating those key indicators into the incentives
of the Company's principal officers."

ANDRÉS WAINER
Chief Financial Officer

2016

2017

2018

2019

2016

2017

2018

2019

2016

2017

2018

2019

2016

2017

2018

2019

Clients ('000)

Argentina

Brazil

Chile

Paraguay

Sales volume (M UC)

218.8

211.4

201.9

178.2

266.1

248.9

249.2

259.3

232.2

231.0

231.4

239.6

62.0

65.0

68.2

69.3

% soft drinks market share

61.6%

62.3%

63.0%

62.9%

63.4%

63.2%

63.3%

61.7%

68.2%

67.5%

66.8%

66.7%

67.7%

68.9%

71.6%

73.4%

% juices market share

46.2%

47.6%

45.3%

31.4%

27.7%

25.1%

48.7%

34.6%

35.4%

36.6%

37.8%

39.5%

37.0%

59.0%

% water market share

14.5%

16.3%

17.4%

8.2%

10.7%

13.8%

18.3%

42.9%

41.2%

41.3%

42.2%

44.5%

33.4%

30.9%

47.6%

Number of bottling plants

Number of other plants

Number of distribution centers

Quality and excellence of our products

Countries

Quality ISO
9001

Environment ISO
ISO 14001

Health
and Safety
OHSAS 9001

Food Safety
FSSC22

GAO The
Coca Cola Company
corporate
requirements

Quality and excellence of products

2018

2019

Number
of trained
panelists

Argentina

Brazil

Chile

Paraguay

SKUs analyzed

Argentina

Brazil

Chile

140

179

138

85.0%

95.0%

88.0%

167

100.0%

Paraguay

100.0%

2016

371.8

382.7

276.2

367.4

9.7%

7.7%

32.0%

2.9%

2017

354.7

370.3

253.9

355.4

12.5%

6.5%

27.4%

13.4%

2018

345.1

344.8

219.6

336.8

15.7%

10.3%

30.1%

17.1%

2019

327.4

334.3

216.7

329.0

17.2%

13.7%

31.1%

18.2%

Argentina

Brazil

Chile

Paraguay

Product wellness

Kcal/liters sold

Argentina

Brazil

Chile

Paraguay

Percentage of sugar-free soft drinks sold

Argentina

Brazil

Chile

Paraguay

% of portfolio (brands) reduced or without sugar

Total Coca-Cola Andina

36%

35%

53%

48%

% of portfolio (brands) with vitamins or added nutrients

Total Coca-Cola Andina

28%

30%

16%

27%

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Client development

Number of clients (´000)

2015

2016

2017

2018

2019

Argentina

Brazil

Chile

Paraguay

Total Coca-Cola Andina

281

259

277

268

267

Client satisfaction (%)

2017

2018

2019

Argentina

86.7%

90.4%

90.8%

Brazil*

Chile

Paraguay
(biannual starting 2019)

* Without information for Brazil

61.0%

52.0%

85.5%

83.0%

Percentage client service through Call-Center

Claims

Orders (sales)

Requests (services, visits, etc.)

Inquiries

Total calls

2015

13.6%

14.4%

25.6%

46.4%

2016

11.4%

18.2%

22.3%

48.1%

2017

9.9%

32.7%

25.9%

31.5%

2018

9.7%

35.9%

20.8%

33.6%

2019

9.1%

35.4%

21.0%

34.5%

675,309

745,046

987,149

993,561

1,061,212

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SUSTAINABLE
PACKAGING

Generation of solid waste (gr/L of beverage)

Argentina

Brazil

Chile

Paraguay

Recycling of solid waste (% over total)

Argentina

Brazil

Chile

Paraguay

Recycled resin (tons)

Argentina

Brazil

Total recycled resin

Pet savings

Total tons saved

Total US$ saved

*2018 includes APET aseptic line project

Recycled postconsumption (tons)

Argentina

Brazil

Chile

Paraguay

2015

2016

2017

2018

2019

13.0

10.9

14.8

26.0

92.2%

90.1%

83.3%

75.3%

14.0

6.5

19.1

25.3

89.7%

88.7%

80.2%

71.9%

2018

1,023

328

1,351

15.7

6.3

18.8

22.4

89.6%

88.2%

80.6%

73.1%

14.7

7.4

20.2

19.2

91.4%

87.3%

89.1%

84.0%

14.3

6.8

17.5

19.6

90.8%

83.1%

83.5%

74.3%

2019

1,129

884

2,013

2017

236

2018

1.345

406,346

1,737,476

2019

445

712,037

2016

2,428

2017

3,070

2018

5,511

2019

6,106

Total Coca-Cola Andina

2,431

3,131

5,587

6,234

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Raw materials used (tons)

Virgin plastic PET

Recycled plastic PET

Virgin glass

Recycled glass

Aluminum

Tetrabrik

Virgin plastic caps

Recycled plastic caps

Virgin plastic cases

Recycled plastic cases

Plastic stretch film + shrink film

Wood pallets

Sugar

Fructose

CO2 (raw material)

Chapadur (hardboard)

Generation of solid waste (tons)

Paper / Carboard

Glass

Caps

Metal (all except aluminum)

Aluminum

PET

Plastic (all except PET and PP caps)

Wood

Organic

Other recyclables

Other non-recyclables

Hazardous waste (tons)

ARGENTINA

BRAZIL

2017

2018

2019

2017

2018

2019

2017

17,604

17,026

14,097

14,077

15,670

21,335

13,540

1,240

3,492

2,875

2,009

353

824

1,907

3,288

1,023

8,823

3,911

487

1,309

599

986

2,313

115,573

1,129

3,013

1,313

658

392

5,426

1,420

1,525

2,200

348

296

1,791

3,353

569

2,696

2,958

328

283

6,946

901

1,995

356

2,777

1,840

884

2,650

8,167

3,694

814

2,749

774

2,882

3,394

1,529

1,755

1,819

313

399

285

1,315

CHILE

2018

11,158

4,163

1,784

PARAGUAY

2019

12,070

2017

5,592

2018

6,196

10,281

102,471

102,233

1,629

2,086

94,596

88,716

77,713

111,571

107,139

111,267

73,619

60,503

53,823

9,484

8,685

289

7,394

1,480

7,134

9,812

9,514

3,939

1,215,328

3,087

9,677

3,746

7,808

7,399

7,085

2,814

810

19,606

6,535

906

23,709

33,156

976

717

304

101

152

24,884

29,595

4,056

2,868

411

ARGENTINA

BRAZIL

2017

2018

2019

2017

897

4,555

278

140

2,828

1,415

950

4,287

2,247

2018

1,049

3,406

264

278

2,774

1,493

2,263

3,151

2,539

2019

1,016

2,884

316

292

2,811

1,532

2,395

2,446

149

880

423

213

448

1,114

631

2,889

154

920

951

545

229

379

1,288

666

2,716

253

966

790

263

390

1,421

774

3,371

587

2017

747

5,954

395

1,837

816

3,096

364

CHILE

2018

544

2019

785

6,460

10,527

410

1,374

707

3,189

255

403

112

1,582

831

2,182

354

PARAGUAY

2017

454

3,149

259

327

400

893

2018

546

2,742

452

294

444

950

1,455

1,274

2,988

2,357

1,850

2,181

1,905

2019

6,076

3,498

2,351

411

813

185

962

662

23,872

11,752

2,817

830

2019

581

2,820

572

450

490

987

311

971

Treated by local third parties

100% of hazardous waste is treated nationally in each operation

ARGENTINA

2017

1,039

2018

795

2019

878

2017

BRAZIL

2018

2019

2017

216

CHILE

2018

218

PARAGUAY

2019

207

2017

2018

2019

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WATER STEWARDS

Total water consumption (m3)

2014

2015

2016

2017

2018

2019

Argentina

2,661,572

2,692,833

2,752,281

2,831,418

2,661,129

2,327,439

Brazil

Chile

1,906,945

2,422,473

2,197,955

2,028,498

1,934,800

2,058,065

2,570,379

2,454,498

2,360,736

2,162,181

2,075,851

2,106,349

Paraguay

768,418

772,119

746,510

707,882

707,098

722,056

Total Coca-Cola Andina

7,907,314

8,341,923

8,057,482

7,729,979

7,378,878

7,213,909

Liters of beverage produced (m3)

2014

2015

2016

2017

2018

2019

Argentina

1,311,119

1,335,959

1,241,385

1,189,129

1,141,747

1,003,119

Brazil

Chile

1,083,492

1,402,407

1,289,843

1,235,574

1,261,005

1,354,318

951,992

940,421

940,269

877,766

890,193

931,476

Paraguay

359,074

352,902

355,665

362,496

377,328

389,699

Total Coca-Cola Andina

3,705,677

4,031,689

3,827,162

3,664,965

3,670,273

3,678,612

Liters of water / liter of beverage produced

Argentina

Brazil

Chile

Paraguay

Total Coca-Cola Andina

2014

2015

2016

2017

2018

2019

2.03

1.76

2.70

2.19

2,13

2.02

1.73

2.61

2.19

2,07

2.22

1.70

2.51

2.10

2.11

2.38

1.64

2.46

1.95

2.11

2.33

1.53

2.33

1.87

2.01

2.32

1.52

2.26

1.85

1.96

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Water source (m3)

Underground

Network

Surface

Rain

Internally treated effluent

2016

6,251,284

1,806,198

2017

6,164,458

1,564,021

1,499

2018

5,815,873

1,413,471

147,865

1,668

2019

5,545,021

1,307,319

360,527

999

Total water used

8,057,482

7,729,978

7,378,877

7,213,910

Reused water (m3)

Argentina

Brazil

Chile

2018

2019

163,089

125,848

2,343

2,002

Water used in production process (m3)

Beverages

Auxiliary services

Total water used

Effluent disposal (m3)

Own treatment

Third-party treatment

Total effluent disposal

2016

3,827,162

4,230,320

8,057,482

2016

2,026,306

1,579,916

3,606,222

2017

3,664,965

4,065,013

7,729,979

2017

2,775,067

1,150,113

3,925,181

Wastewater discharge into own treatment plants by country (m3)

Argentina

Brazil

Chile

Paraguay

Total Coca-Cola Andina

2016

1,093,905

542,863

389,538

2,026,306

2017

1,581,459

655,179

195,132

343,298

2,775,068

2,647,029

Wastewater discharge into third party treatment plants by country (m3)

Argentina

Brazil

Chile

Paraguay

2016

67,070

199,486

1,313,360

2017

60,830

1,089,283

2018

53,666

967,606

Total Coca-Cola Andina

1,579,916

1,150,113

1,021,272

1,016,768

2018

3,670,273

3,708,604

7,378,877

2018

2,647,028

1,021,272

3,668,300

2018

1,464,347

655,503

197,409

329,770

Paraguay

55,910

158,638

Total water reused

221,342

286,488

2019

3,678,612

3,535,297

7,213,910

2019

2,547,336

1,016,768

3,564,104

2019

1,297,443

716,166

201,370

332,357

2,547,336

2019

50,079

966,689

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ENERGY MANAGEMENT

Energy consumption (MJ)

Argentina

Brazil

Chile

Paraguay

2015

2016

2017

2018

2019

436,258,051

415,967,650

417,306,969

409,235,774

361,853,002

532,914,688

300,542,078

344,041,575

351,777,338

384,559,873

263,317,813

270,778,919

231,575,870

271,475,113

246,493,622

210,805,200

192,605,335

193,164,293

192,404,299

193,682,342

Total Coca-Cola Andina

1,443,295,751

1,289,852,382

1,186,088,706

1,224,892,525

1,186,588,839

Energy consumption from renewable sources (MJ)

Biomass

Hydroelectric

Solar

Wind

Biogas

2015

2016

2017

2018

2019

153,580,443

65,478,287

64,704,645

64,156,777

62,670,042

128,975,580

109,958,400

111,280,320

149,584,111

224,277,140

1,059

600

605

202

32,491,559

12,636,824

1,365,725

11,399,241

17,114,813

13,059,101

Total Coca-Cola Andina

295,193,906

176,803,012

187,384,811

230,855,903

332,497,842

Energy use ratio (MJ/L produced)

Argentina

Brazil

Chile

Paraguay

2015

2016

2017

2018

2019

0.33

0.38

0.28

0.60

0.34

0.23

0.29

0.54

0.35

0.28

0.53

0.36

0.28

0.30

0.51

0.36

0.28

0.26

0.50

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EMISSIONS

TRANSPORTATION

Emissions (kg CO2 equivalent)

Number of trucks

2017

2018

2019

Total scope 1

53,155,332

74,307,183

45,977,832

Own trucks

Total scope 2

61,189,906

37,073,614

55,413,868

Third party trucks

Total scope 3*

107,159,092

203,339,429

210,013,782

Total trucks

2018

999

1,735

2,734

2019

1.123

1,706

2,829

Total kg CO2 equivalent emitted

221,504,331

314,720,226

311,405,482

*Scope 3 includes cold equipment, third-party fleet, recycled waste and waste destined to landfills.

Emissions (gr CO2 / liter produced)*

Scopes 1 + 2 + 3*

Scopes 1 + 2

* does not include cold equipment

Cold equipment

2017

60.52

31.20

Cold equipment with energy savings (%)

2018

47.41

30.35

2018

61%

2019

40.86

27.56

2019

79%

43%

of trucks used
are low carbon
(5 euro or similar)

Kilometers travelled

2018

2019

Own trucks

12,863,964

13,592,446

Total kg CO2eq emitted per cold equipment

140,716,949

223,592,450

Third party trucks

69,728,243

70,550,198

Total kilometers travelled

82,592,207

84,142,644

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WORKING ENVIRONMENT

Internal Climate Evaluation (% favorability)

Collaborators by operation and gender
These figures are FTEs

2015

2016

2017

2018

2019

2017

2018

2019

Argentina

64%

69%

Mujeres

Hombres

Total

Mujeres

Hombres

Total

Mujeres

Hombres

Total

66%

72%

76%

Argentina

279

2,967

3,246

272

2,904

3.176

264

2.795

3.059

Brazil

Chile

60%

66%

67%

Paraguay

66%

64%

70%

Brazil

Chile

Paraguay

Holding

826

6,954

7,780

1,000

6,895

7.895

1.083

6.949

8.032

413

151

3,006

3.419

436

2,919

3.355

575

4.233

4.808

1,430

1,581

167

1,433

1.600

181

1.465

1.646

Total collaborators

1,686

14,379

16,065

1,892

14,173

16.065

2.122

15.464

17.586

Wage Gap
The proportion of the average base gross salary of female executives to
male executives is 77.2%, while the proportion of average base gross
salary of female workers to male workers is 87.8%.

Note: The position group used is based on the "Hay Grading" methodology that considers the
equivalent accountability in each position

Of the Company's total employees, 15,464 are men and 2,122
women. Of these, 4,246 are Chileans and 13,340 foreign
citizens. Of the foreign citizens, 3,024 are Argentines, 8,012
are Brazilian, 1,627 are Paraguayans and 677 of other
nationalities. Of the Company's total employees, 4,712 are
under the age of 30, 6,906 are between 30 and 40 years
old, 3,821 between 41 and 50 years old, 1,732 between
51 and 60 years old, 286 between 61 and 70 years
old, and 130 over 70 years old. Of total employees,
7,496 have held their position for less than three
years, 3,552 between three and six years, 2,103
for more than six and less than nine years, 1,290
between nine and 12 years and 3,145 for over
12 years.

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Collaborators by gender and category, 2019

Argentina

Brazil

Chile

Paraguay

Women

Men

Women

Men

Women

Men

Women

Men

Managers and principal officers (N; N-1; N-2)

Professionals and technicians in charge of staff (N-3)

Professionals and technicians not in charge of staff (N-3)

101

Other workers

Seasonal

412

180

1,817

301

313

702

201

409

6,296

Total collaborators

264

2,795

1,083

6,949

140

313

575

219

258

3,045

649

146

1,055

155

4,232

181

1,466

Collaborators by gender and age, 2019

Argentina

Brazil

Chile

Paraguay

Women

Men

Women

Younger than 18

Between 18 and 29

Between 30 and 40

Between 41 and 50

Between 51 and 60

Between 61 and 70

Older than 70

Total collaborators

145

264

New hirings by age and gender, 2019

426

1,294

842

213

435

392

157

Men

1,928

2,769

1,436

618

104

Women

170

225

121

Men

895

1,468

1,007

672

176

Women

Men

688

534

160

2,795

1,083

6,949

575

4,232

181

1,466

Argentina

Brazil

Chile

Paraguay

Women

Men

Women

Men

Women

Men

Women

Men

30 years old and younger

Between 30 and 50

Older than 50

Total collaborators

163

146

317

778

835

1,674

113

131

268

Distribution by seniority, 2019

Less than 3 years

Between 3 and 6 years

Between 6 and 9 years

Between 9 and 12 years

More than 12 years

Total collaborators

Argentina

572

365

527

263

1,332

3,059

Brazil

3,966

1,897

982

402

785

8,032

Chile

2,297

874

469

407

761

4,808

Paraguay

650

409

115

215

257

1,646

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PEOPLE DEVELOPMENT

Training and education

Training hours women

Training hours men

Total training hours

Average training hours women

Average training hours men

Average training hours per employee

Education distribution by topic

Development of work skills

Development of abilities and employability

Work safety

Sustainability and environment

Ethics and code of conduct

2017

35,466

194,769

230,235

20.8

13.5

14.3

2017

48.0%

28.0%

17.0%

4.0%

3.0%

2018

34,828

294,563

329,391

18.4

19.0

2018

44.0%

25.0%

23.0%

3.0%

5.0%

2019

48,229

240,668

288,897

15.6

22.7

16.4

2019

41.6%

19.7%

26.7%

5.9%

6.2%

Education hours by gender and category, 2019

Argentina

Brazil

Chile

Paraguay

Women

Men Women

Managers and principal officers (N; N-1; N-2)

Professionals and technicians in charge of staff (N-3)

969

779

6,723

490

1,348

470

737

9,748

2,353

8,939

2,000

6,297

1,222

4,542

Professionals and technicians not in charge of staff (N-3)

4,393

7,431

6,527

8,595

4,135

4,019

820

956

Other workers

Seasonal

1,471

31,815

13,861

105,431

6,246

21,908

1,468

16,191

504

3,664

1,313

Total collaborators

8,115

59,381

23,232

124,313

12,469

32,734

4,247

24,119

Men

1.117

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Percentage of collaborators with performance evaluation

Base salary1 / legal minimum wage ratio

2017

2018

2019

Argentina

65.7%

88.5%

87.0%

Argentina

Brazil

Chile

100.0%

96.0%

100.0%

97.3%

Brazil

Chile

Paraguay

61.0%

57.9%

58.0%

Paraguay

1. Base salary without additional

Unionization rate

Turnover rate

2017

2018

2019

Argentina

67.4%

66.0%

Argentina

Brazil

Chile

9.7%

12.2%

52.5%

50.9%

Paraguay

35.0%

35.5%

9.6%

44.0%

24.9%

Brazil

Chile

Paraguay

2015

297.0%

112.0%

100.0%

2015

0.49

2.84

2.04

0.50

2016

2017

281.0%

361.0%

108.0%

106.0%

100.0%

117.0%

116.0%

2018

372.0%

106.0%

120.0%

118.0%

2019

329.2%

106.4%

173.3%

124.1%

2016

2017

2018

2019

0.38

2.71

2.60

0.45

0.51

2.14

1.50

0.37

0.40

2.29

1.23

0.43

0.44

1.90

1.28

0.26

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DIVERSITY AND INCLUSION

HEALTH AND SAFETY

People with disabilities and social minorities*

Absenteeism rate

Brazil

Chile

Total Coca-Cola Andina

* Chile is recorded beginning 2018

2015

2016

2017

2018

2019

2015

2016

2017

147

173

220

356

370

348

379

Argentina

3.21%

3.09%

2.85%

Brazil

Chile

2.27%

3.19%

1.78%

1.50%

3.30%

4.00%

Paraguay

1.57%

1.62%

1.30%

2018

2.46%

1.35%

4.03%

1.76%

2019

2.37%

1.56%

3.35%

1.69%

Number of collaborators who took leave of absence (maternity and paternity)

Accident rate (LTIR)

2015

2016

2017

2018

2019

2018

2019

Women

Men

Women

Men

Argentina

Brazil

Chile

Paraguay

Total Coca-Cola Andina

100

118

192

456

104

220

109

498

Argentina

6.14

Brazil

Chile

0.53

4.19

Paraguay

0.59

5.07

0.58

2.60

0.46

4.03

0.60

2.43

0.61

Number of collaborators that continue working after leave of absence (maternity and paternity)

2018

2019

Women

Men

Women

Men

118

173

n/d

345

101

198

n/d

360

Argentina

Brazil

Chile

Paraguay

Total Coca-Cola Andina

LTISR Days of leave due to accident rate

2015

2016

2017

Argentina

202.10

143.08

124.00

Brazil

Chile

6.94

52.99

Paraguay

3.84

6.61

47.95

3.73

6.60

53.32

6.85

2.61

0.44

1.62

0.38

2018

75.50

5.53

27.39

1.73

3.11

0.39

0.78

0.52

2019

87.38

4.83

20.60

3.50

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COMMUNITY
SUPPLIER DEVELOPMENT

Number of suppliers

Argentina

Brazil

Chile

Paraguay

2015

2,444

4,383

1,666

2016

2,749

4,831

1,861

2017

2,369

4,130

2,249

1,192

Total Coca-Cola Andina

8,493

9,441

9,940

Percentage national suppliers

Argentina

Brazil

Chile

Paraguay

2015

97.1%

99.8%

95.6%

87.0%

Percentage spent on national suppliers

Argentina

Brazil

Chile

Paraguay

2015

98.9%

99.9%

97.5%

54.0%

2016

97.0%

99.7%

95.1%

85.9%

2016

99.9%

99.8%

97.5%

40.0%

2017

97.0%

99.7%

95.4%

87.8%

2017

98.6%

99.3%

98.9%

64.5%

2018

2,409

4,011

1,764

1,197

9,381

2018

96.8%

99.8%

95.5%

90.2%

2018

95.9%

98.5%

97.0%

60.4%

2019

2,325

4,160

1,850

,186

9,521

2019

96.3%

99.7%

96.8%

89.0%

2019

94.9%

98.4%

98.9%

62.0%

Number of suppliers evaluated

Argentina

Brazil

Chile

Paraguay*

2018

238

Total Coca-Cola Andina

297

* Without information for Paraguay

2019

278

146

460

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Number of beneficiaries in the community

2016

2017

2018

2019

Argentina

140,294

422,245

224,991

228,283

Brazil

Chile

6,526

7,000

4,956

8,364

99,100

480,425

1,325,795

353,038

Paraguay

13,573

824

28,638

11,864

Total Coca-Cola Andina

252,967

910,494

1,584,380

601,549

Hours of volunteer work

Argentina

Brazil

Chile

Paraguay

2016

2017

407

1,045

324

974

2018

2,496

1,525

2019

1,111

322

180

124

Total Coca-Cola Andina

1,452

1,310

4,033

1,737

Liters of beverage donated

2016

2017

2018

2019

Argentina

282,909

210,376

663,304

407,851

Brazil

Chile

4,713

3,279

281,650

360,221

985,433

610,710

Paraguay

10,870

4,178

12,189

27,510

Total Coca-Cola Andina

575,429

574,775

1,665,639

1,049,350

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chapter.seven |

CORPORATE
INFORMATION

Corporate Name:
Embotelladora Andina S.A.

COMPANY BACKGROUND

Company Incorporation
102-5

Fictitious Name:
Not Applicable

Company Description
102-5; 102-18

Type of Corporation:
Open Stock Corporation

Legal Address:
Miraflores 9153, comuna de Renca, Santiago

Embotelladora Andina S.A. (hereinafter “Coca-Cola Andina” or the
“Company”) is the largest Coca-Cola bottler Argentina, Chile and Paraguay
and the third Coca-Cola bottler in Brazil. It serves franchised territories with
almost 54 million people, delivering 4,238 million liters of soft drinks, juices,
and bottled waters during 2019.

Chilean Tax ID:
91.144.000-8

ADDRESSES

Argentina:
Ruta Nacional 19, Km 3,7, Córdoba
Tel: (54 351) 496 8800

Brazil:
Rua André Rocha 2299, Tanquara,
Jacarepaguá, Rio de Janeiro
Tel: (55 21) 2429 1530

Mira􆙬

Chile:
􆙬es 9153, comuna de Renca, Santiago
Tel: (56 2) 2611 5838

Paraguay:
Acceso Sur, Km 3,5, San Lorenzo, Asunción
Tel: (596 21) 959 1000

Coca-Cola Andina has the franchise to produce and commercialize
Coca-Cola products in certain territories of Argentina (through the
company Embotelladora del Atlántico S.A., hereinafter “EDASA” or
“Coca-Cola Andina Argentina”), Brazil (through the company Rio de
Janeiro Refrescos Ltda., hereinafter “Coca-Cola Andina Brazil”),
Chile (through the company Embotelladora Andina S.A.,
hereinafter “Coca-Cola Andina Chile”) and in the entire Paraguayan
territory (through the company Paraguay Refrescos S.A.,
hereinafter “Coca-Cola Paresa”). The Company is controlled in
equal parts by the Chadwick Claro, Garcés Silva, Hurtado Berger,
Said Handal and Said Somavía families. The company's value
generation proposal is to be a leader in the non-alcoholic
beverage market, developing a relationship of excellence with
consumers of its products, as well as with its workers, customers,
suppliers, the community in which it operates and with its strategic
partner The Coca-Cola Company.

For additional Company corporate information visit the website:
www.koandina.com

Embotelladora Andina S.A. is an open stock corporation, incorporated by
means of a public deed dated February 7, 1946, before the Notary Public
of Santiago, Mr. Luciano Hiriart Corvalán. An abstract of this deed is
registered on page 768, N° 581 of the Santiago Registry of Commerce of
1946, and was published in the Official Daily Newspaper issue N° 20,413
dated March 25, 1946.

The Company’s bylaws were approved by Supreme Decree N°1,364
of March 13, 1946, which is registered on page 770 N°582 of the
Santiago Registry of Commerce of 1946.

The latest amendment to the Company’s bylaws was approved at the
Special Shareholders’ Meeting held June 25, 2012. The minutes
thereof were brought into a public deed dated July 12, 2012 before
the Notary Public of San Miguel, Ms. Patricia Donoso Gomien. An
abstract thereof is registered on page 49,151 N°34,479 of the Santiago
Registry of Commerce of 2012, and was published in the Official Daily
Newspaper dated August 1, 2012.

Subsequently, by public deed dated October 14, 2013, granted by the
notary public of Santiago, Mr. Eduardo Avello Concha, evidence was
noted of a full-fledged equity decrease according to the provisions of
article 27 of Chilean Company Law N° 18,046 . An abstract of this deed
is scored aside from the company’s social inscription on the Santiago
Registry of Commerce, dated October 16 of the same year. In accordance
with the above, the share capital decreased by Ch $21,724,544, and was
divided into 473,289,301 Series A shares and 473,281,303 Series B shares.

For additional Company corporate information visit the website:
www.koandina.com

102-34, 102-44, 103-2

STOCK INFORMATION
Chile

150

140

130

120

110

100

7
1
0
2

CHILE

2019

Santiago
Stock
Exchange1

Chile
Electronic
Exchange1

8
1
0
2

Andina A

Andina B

IPSA

ANDINA A

Total traded
(ThCh$)

Average price
(Ch$)

3,949

4,984

2,220

6,470

330

613

2,230

2,074

2,055

1,804

2,200

2,057

Shares
traded
(million)

1.8

2.4

1.1

3.7

0.2

0.3

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

1st Quarter

2nd Quarter

he Company's shares have been traded on the
Santiago Stock Exchange since December 19,
1955. In addition, the Company's shares have
been traded on Chile's Electronic Exchange
since November 2, 1989. The registration
number in the Securities Register is 00124,
in the Securities Register of the Financial
Market Commission (CMF). In 1997 Coca-Cola
Andina held a stock split into Series A and
Series B shares. Mnemonic codes both for the
Santiago Stock Exchange and for the Electronic
Exchange, are Andina-A and Andina-B, each
corresponding to the respective series of shares.

The Stock Department in Chile is managed by
SerCor (www.sercor.cl).

The following chart shows the evolution of the
Company's Series A and B share prices and
IPSA for a two-year period ended December
31, 2019 (base 100).

3rd Quarter

without transactions

4th Quarter

0.0

1,590

Source: Certificates issued by the respective Stock Exchanges

CHILE

2018

Santiago
Stock
Exchange1

Chile
Electronic
Exchange1

Shares
traded
(million)

11.46

7.93

7.30

11.45

0.04

0.13

0.05

0.04

ANDINA A

Total traded
(ThCh$)

Average price
(Ch$)

30,885

20,393

16,502

24,945

103

334

113

2,695

2,572

2,260

2,178

2,758

2,664

2,273

2,183

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Source: Certificates issued by the respective Stock Exchanges

9
1
0
2

ANDINA B

Total traded
(ThCh$)

Average price
(Ch$)

113.564

42.214

33.332

37.216

10.496

4.473

1.279

1.822

ANDINA B

Total traded
(ThCh$)

311,838

149,922

60,324

129,444

6,829

3,014

3,878

6,691

2.507

2.430

2.350

2.160

2.494

2.430

2.370

2.100

Average price
(Ch$)

2,960

2.,837

2,586

2,499

2,958

2,793

2,587

2,480

Shares
traded
(million)

45,4

17,4

14,2

17,3

4,2

1,8

0,5

0,9

Shares
traded
(million)

105.45

52.83

33.61

51.80

2.31

1.08

1.50

2.70

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150

140

130

120

110

100

7
1
0
2

U.S.A.

2019

THE NEW YORK
STOCK EXCHANGE (NYSE)

The Company's ADRs have been traded on
the New York Stock Exchange since 1994. An
ADR is equivalent to six common shares. The
mnemonic codes for the NYSE are AKO/A
and AKO/B. The depositary bank for ADRs is
The Bank of New York Mellon
(www.bnymellon.com). This chart shows the
daily price behavior of Series A and Series B
ADRs compared to the Dow Jones index for a
two-year period ended December 31, 2019
(base 100).

New York Stock
Exchange

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

(1) Total Traded calculated as the average price times volume of ADRs traded (Source: Bloomberg).

U.S.A.

2018

New York Stock
Exchange

ADR traded
(million)

0.32

0.19

0.10

0.17

AKO A

Total
traded(1)
(ThUS$)

8.33

4.70

1.99

3.20

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

(1) Total Traded calculated as the average price times volume of ADRs traded (Source: Bloomberg).

8
1
0
2

9
1
0
2

AKO/A

AKO/B

Dow Jones

ADR traded
(million)

0.02

0.04

0.26

AKO A

Total
traded(1)
(ThUS$)

0.35

0.44

0.69

3.79

Average
price
(US$)

19.89

18.45

17.36

14.78

Average
price
(US$)

26.31

24.13

20.28

19.24

ADR traded
(million)

0.54

0.59

0.68

0.62

ADR traded
(million)

1.51

1.14

1.74

1.80

AKO B

Total
traded(1)
(MUS$)

12.05

12.46

13.47

10.66

AKO B

Total
traded(1)
(ThUS$)

44.44

31.51

40.60

39.32

Average
price
(US$)

22.41

21.16

19.78

17.24

Average
price
(US$)

29.36

27.66

23.27

21.81

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DIVIDEND POLICY AND DIVIDENDS PAID

The dividend distribution policy has consisted of distributing
a percentage of at least 30% of net earnings of the period.
Historically, the Company has paid dividends through interim
dividends and a final dividend, after its approval during the
month of April by the General Shareholders’ Meeting
following the end of the year. Since the year 2000, the
Company has paid additional dividends annually, as
approved by the General Shareholders’ Meeting.

During 2019, Distributable Earnings
equaled Earnings for the fiscal year.

Series A and Series B are mainly
differentiated by their political and
economic rights.

DIVIDENDS
(nominal Ch$)

January 2019

May 2019

August 2019

Octobre 2019

Total 2019

Total 2018

Total 2017

Total 2016

Total 2015

Interim

Final

Additional

Interim

Series A (Ch$ per share)

Series B (Ch$ per share)

Total paid (MCh$)

21.50

86.00

76.00

68.00

54.00

23.65

94.60

83.60

74.80

59.40

21,369

85,475

75,536

67,584

53,670

While series A shares have the right to elect 12 of the
14 directors, Series B shares have the right to receive all
and any dividends per share that are distributed by the
Company, whether interim, final, mandatory minimums,
additional or eventual, increased by 10%. The
preferences of the Series A and Series B shares will last
for the period expiring on December 31, 2130. Once this
period has expired, the Series A and B will be eliminated,
and the shares that form them automatically will be
transformed into common stock without any preference.

INDEXES

Dow Jones Sustainability Index Score

ANDINA-A is part of Chile’s General Stock Price Index (S&P/CLX IGPA) of
the Santiago Stock Exchange. Meanwhile, ANDINA-B, integrates Chile’s
Selective Stock Price Index (S&P/CLX IPSA), the Inter-10 Index (S&P/CLX
INTER-10), the General Mid Cap Stock Price Index (S&P/CLX IGPA MID)
and the General Stock Price Index (S&P/CLX IGPA), all of these indexes of
the Santiago Stock Exchange.

In 2019 we were ratified in the Sustainability Index of the Santiago Stock
Exchange (Dow Jones Sustainability Index Chile) for the fourth
consecutive year. Also, for the third consecutive year we were ratified in
the Latin American Integrated Market Sustainability Index (DJSI - MILA).

The score obtained in the evaluation has
been increasing steadily over the years. This
is a result and reflection of our conviction in
the generation of shared value and efforts
to lead new market trends in corporate
sustainability.

2016

2017

2018

2019

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External Auditors
EY Servicios Profesionales de Auditoría y
Asesorías SpA. (RUT:77.802.430-6) are the
external auditors of the company.

Rating agencies:
Bonds issued in the Chilean market on December
31, 2019 have the following rating:

AA: by ICR Clasificadora de Riesgo Ltda.

AA: by Fitch Chile Clasficadora de Riesgo
Limitada

Bonds issued in the international market on
December 31, 2019 have the following rating:

BBB: by Standard&Poors Global Ratings.

BBB+: by Fitch Ratings Inc.

SUMMARY AND COMMENTS
OF SHAREHOLDERS

Pursuant to General Rule No. 30 of Chile’s
Financial Market Commission (CMF) and article 74
of Law No. 18,046, it is reported that neither the
Directors’ Committee, nor shareholders or groups
of shareholders that represent or possess 10%
or more of the shares issued with voting rights,
have made comments or proposals regarding
the progress of the Company’s business.
Notwithstanding the foregoing, in the Minutes
of the General Shareholders’ Meeting of 2019,
recorded all observations made by shareholders
that expressed their opinion during that meeting.

COMPANY
OWNERSHIP

102-18

Series B shareholders.A

t December 31, 2019 there are 772
Series A shareholders and 1,138

CONTROLLING GROUP
102-5; 102-18

Embotelladora Andina S.A. (“Andina”) is controlled by the following
group of natural and legal persons:

Controlling Group
Inversiones SH Seis Limitada (“SH6”), Inversiones Cabildo SpA
(“Cabildo”), Inversiones Lleuque Limitada (“Lleuque”), Inversiones
Nueva Delta S.A. (“Nueva Delta”), Inversiones Nueva Delta Dos S.A.
(“Nueva Delta Dos”), Inversiones Playa Amarilla SpA (“Playa Amarilla”),
Inversiones Playa Negra SpA (“Playa Negra”), Inversiones Don Alfonso
Limitada (“Don Alfonso”), Inversiones El Campanario Limitada
(“Campanario”), Inversiones Los Robles Limitada (“Los Robles”) and
Inversiones Las Niñas Dos SpA (“Las Niñas Dos”).

The Controlling Groups acts pursuant to a joint acting agreement
entered into by the parties (the”Agreement”). Under the Agreeement,
SH6 holds 50,001,664 Andina Series A shares, Cabildo holds
50,001,664 Andina Series A shares, Lleuque holds 50,001,664 Andina
Series A shares, Nueva Delta holds 46,426,645 Andina Series A shares,
and Nueva Dela Dos holds 3,574,999 Andina Series A. Playa Amarillia
holds 13,513,594 Andina Series A shares, Playa Negra holds 515,939
Andina Series A shares and Don Alfonso, Campanario, Los Robles and
Las Niñas Dos each hold 9,788,363 Andina Series A shares.

The final controllers of the
aforementioned companies are the
persons and representatives for
management listed below.

SH6: Inversiones SH Seis Limitada, RUT 76.273.760-4.
Direct and indirect ownership of this company is held by:

Cabildo: Inversiones Cabildo SpA, RUT 76.062.133-1. Direct and
indirect ownership of this company is held by:

(a) Inmobiliaria e Inversiones Punta Larga Limitada, RUT
96.580.490-0, owner of 14.2069% of share capital. This company is
99.92% directly owned by Jaime Said Handal, C.N.I. 4.047.015-8;

(a) IInversiones Delfín Uno S.A., RUT 76.005.604-9, owner of 2.13%
of share capital. This company is 99.9999% owned by Mrs. Isabel
Margarita Somavía Dittborn, C.N.I. 3.221.015-5;

(b) Inversiones Bullish Limitada, RUT 76.167.252-5, owner of
14.2069% of share capital. This company is 97.2873% indirectly
owned by Gonzalo Said Handal, C.N.I. 6.555.478-K;

(b) Inversiones Delfín Dos S.A., RUT 76.005.591-3, owner of 2.13% of
share capital. This company is 99.9999% owned by Mr. José Said
Saffie, C.N.I. 2.305.902-9;

(c) Inversiones Berklee Limitada, RUT 77.077.030-0, owner of
14.2069% of share capital. This company is 99% directly owned by
Javier Said Handal, C.N.I. 6.384.873-5;

(c) Inversiones Delfín Tres S.A., RUT 76.005.585-9, owner of 38.30%
of share capital. This company is 99.0196% owned by Mr. Salvador
Said Somavía, C.N.I. 6.379.626-3;

(d) Inversiones Harvest Limitada, RUT 77.077.250-8, owner of
14.2069% of share capital. This company is 69.66% directly owned
by Bárbara Said Handal, C.N.I. 4.708.824-0;

(e) Inversiones Oberon Limitada, RUT 76.126.745-0, owner of
14.2069% of share capital. This company is 90.0885% indirectly
owned by Marisol Said Handal, C.N.I. 6.384.872-7;

(f) Inversiones Rinascente Limitada, RUT 77.077.070-K, owner of
14.2069% of share capital. This company is 94.0580% directly
owned by Cristina Said Handal; C.N.I. 5.522.896-5;

(g) Jaime, Gonzalo, Javier, Bárbara, Marisol and Cristina Said
Handal, each own 0.00006175% of share capital; and

(h) Inmobiliaria Pro Seis Limitada, RUT 76.268.900-6, owner of
14.7581% of share capital. This company is indirectly owned in
equal parts by Jaime, Gonzalo, Javier, Bárbara, Marisol and Cristina
Said Handal.

(d) Inversiones Delfín Cuatro S.A., RUT 76.005.582-4, owner of
19.15% of share capital. This company is 99.0196% owned by Mrs.
Isabel Said Somavía, C.N.I. 6.379.627-1;

(e) Inversiones Delfín Cinco S.A., RUT 76.005.503-4, owner of
19.15% of share capital. This company is 99.0196% owned by Mrs.
Constanza Said Somavía, C.N.I. 6.379.628-K; and,

(f) Inversiones Delfín Seis S.A., RUT 76.005.502-6, owner of 19.15%
of share capital. This company is 99.0196% owned by Mrs. Loreto
Said Somavía, C.N.I. 6.379.629-8.

Lleuque: Inversiones Chucao Limitada was dissolved through
the conveyance of all of its social rights in Inversiones
Lleuque Limitada pursuant to the transfer of rights and social
dissolution as evidenced by a public deed dated December
20, 2016, granted by the Notary Public of Santiago of Mr.
Eduardo Diez Morello, an abstract of which is registered on
page 12,282 No. 6.839 of the Public Registry of Commerce of
the City of Santiago of the year 2017. The management of this
company corresponds to its members acting jointly; and the
social rights of Inversiones Lleuque Limitada correspond
equally to Mrs. Pamela Hurtado Berger, C.N.I. 7.050.827-3 and
Mrs. Madeline Hurtado Berger, C.N.I. 7.050.867-2.

Nueva Delta: Inversiones Nueva Delta S.A., RUT 76.309.233-K,
80.05% owned by Inversiones Nueva Sofía S.A., today Nueva Sofía
Limitada, RUT 76.366.690-5. Direct and indirect ownership of this
company is held by:

(a) 7.01% of Mr. José Antonio Garcés Silva (senior), C.N.I.
3.984.154-1, who also maintains political rights pursuant to a
special series of shares in the parent company;

(b) 1.34% of Mrs. María Teresa Silva Silva, C.N.I. 3.717.514-5;

(d) 18.33% of Mrs. María Paz Garcés Silva, C.N.I. 7.032.689-2;

(e) 18.33% of Mr. José Antonio Garcés Silva (junior), C.N.I. 8.745.864-4;

(f) 18.33% of Mr. Matías Alberto Garcés Silva, C.N.I. 10.825.983-3; and

(g) 18.33% of Mr. Andrés Sergio Garcés Silva, C.N.I. 10.828.517-6.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTDirect or indirect ownership in Coca-Cola Andina held by members of
the Controlling Group or related persons(1)
102-18

Series A

Series B

Inversiones SH Seis Limitada

52,989,375

37,864,863

Sucesión de Jaime Said Demaría

49,600

Participación por Serie:

11.1960%

8.0109%

Inversiones Cabildo SpA

52,987,375

49,650,863

José Said Saffie

49,600

Participación por Serie:

11.1956%

10.5013%

Inversiones Lleuque Limitada(2)

50.001.644

Inversiones HB S.A.(3)

1.569.731

Alberto Hurtado Fuenzalida†

49.600

Participación por Serie:

10,8964%

0,0148 %

Inversiones Nueva Delta S.A.

46,426,645

Inversiones Nueva Delta Dos S.A.

3,574,999

Inversiones Nueva Sofía Limitada

2,985,731

25,678,583

José Antonio Garcés Silva

49,600

Participación por Serie:

11.1956%

5.4361%

Inversiones Playa Amarilla SpA

13,513,594

Inversiones Playa Negra SpA

515,939

Inversiones El Campanario Ltda

9,788,363

Inversiones Los Robles Limitada

9,788,363

Inversiones Las Niñas Dos SpA

9,788,363

Inversiones Don Alfonso Limitada

9,788,363

Ownership by Series:

11.20%

Los Robles: Inversiones Los Robles Limitada, RUT 76.273.886-4,
79.854746% owned by María Carolina Chadwick Claro,
0,107735% owned by Felipe Tomás Cruzat Chadwick, 0.107735%
owned by Carolina María Errázuriz Chadwick, 0.107735% owned
by Jacinta María Errázuriz Chadwick, 6.607349% owned by
Inversiones Bocaleón Limitada (99.9902% controlled by Felipe
Tomás Cruzat Chadwick), 6.607349% owned by Inversiones Las
Dalias Limitada (99.993% controlled by Carolina María Errázuriz
Chadwick) and 6.607349% owned by Inversiones Las Hortensias
Limitada (99.9903% controlled by Jacinta María Errázuriz
Chadwick), whose final controller (as manager) is Mrs. María
Carolina Chadwick Claro.

Las Niñas Dos: Inversiones Las Niñas Dos SpA, RUT
76.273.943-7, 100% owned by Inversiones Las Niñas Limitada
(96% controlled by María Eugenia Chadwick Braun, María José
Chadwick Braun, Alejandra María Chadwick Braun and
Magdalena María Chadwick Braun), whose final controller (as
management representative) is Eduardo Chadwick Claro.

1 Nominal ownership of 23 Andina Series A shares held by Inversiones Freire S.A. and 4 Andina
Series A shares held by Inversiones Freire Dos S.A. is excluded.
2 Inversiones Lleuque Limitada, RUT 76.312.209-3, legal continuator of the company Inversiones
Chucao Limitada under the merger agreed by public deed of December 20, 2016, granted in the
Notary of Santiago of Mr. Eduardo Diez Morello.
3 Inversiones HB S.A., RUT 96.842.220-0 is controlled (100% indirect ownership) by the following
people: Alberto Hurtado Fuenzalida, C.N.I. 2.593.323-0; Pamela Hurtado Berger, C.N.I. 7.050.827-3;
and Madeline Hurtado Berger, C.N.I. 7.050.867-2.

100

Nueva Delta Dos: Inversiones Nueva Delta Dos S.A., RUT
76.309.244-5, 99,95% owned by Inversiones Nueva Sofía S.A.,
today Nueva Sofía Limitada (Direct and indirect ownership of this
company is the same as the one described in the previous
paragraph for Nueva Delta).

10.

Playa Amarilla: Inversiones Playa Amarilla SpA, RUT
76.273.887-2,100% owned by Las Gaviotas SpA, whose final
controller (as management representative) is Mr. Andrés
Herrera Ramírez.

Playa Negra: Inversiones Playa Negra SpA, RUT 76.273.973-9,
100% owned by Patricia Claro Marchant.

Don Alfonso: Inversiones Don Alfonso Limitada, RUT
76.273.918-6, 73.40437% owned by María de la Luz Chadwick
Hurtado, 0.05062% owned by Carlos Eugenio Lavín García-
Huidobro and 26.54501% owned by Inversiones FLC Limitada
(99.5% controlled by Francisco José Lavín Chadwick), whose final
controller is Mrs. María de la Luz Chadwick Hurtado (as
management representative).

Campanario: Inversiones El Campanario Limitada, RUT
76.273.959-3, 86.225418% owned by María Soledad Chadwick
Claro, 6.888107% owned by Inversiones Melitta Limitada (99.99%
controlled by Josefina Dittborn Chadwick) and 6.886475% owned
by Inversiones DV Limitada (99.99% controlled by Julio Dittborn
Chadwick), whose final controller is (as manager) Mrs. María
Soledad Chadwick Claro.

11.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORT
101

Series A

Series B

Coca-Cola de Chile S.A.

69,348,241

Ownership by Series:

14.65%

Note: Corresponds to direct and indirect ownership held by The Coca Cola Company.

RELEVANT CHANGES IN THE COMPANY'S
OWNERSHIP
102-5

In 2019, Coca-Cola de Chile S.A. transferred its ownership interest of
the Company’s Series B shares.

According to the Agreement, the Controlling Group shall jointly exercise
Andina’s control to ensure the majority of votes at shareholder meetings and
Board sessions. The resolutions of the Controlling Group are approved by at
least four of the five parties, except for certain matters that require unanimity.

On the other hand, and subject to the fulfillment of the rules of the
Securities Market Law in Chile, the Agreement sets forth sale options of
each party with respect to the other at a market price plus a premium
of 9.9% and 25%, with 30-days window to exercise in June every year,
and in June of 2017 and 2027 respectively; and in the case that all but
one of the parties decide to sell, the Agreement regulates a right of first
option to purchase for a period of one year.

The Agreement is formalized through a private instrument signed
between the parties and has an indefinite duration.

In connection with The Coca-Cola Company’s investment in Andina,
The Coca-Cola Company and the Controlling Group entered into a
Shareholders’ Agreement dated September 5, 1996, providing for certain
restrictions on the transfer of Andina’s capital stock by the Controlling
Group. Specifically, the Controlling Group is restricted from transferring its
Series A shares without the prior authorization of The Coca-Cola Company.
The Shareholders’ Agreement also provides for certain corporate
governance matters, including The Coca-Cola Company’s right to elect
two members among our directors so long as The Coca-Cola Company
and its subsidiaries collectively own a certain percentage of Series A
shares. In addition, in related agreements, the Controlling Group granted
The Coca-Cola Company an option, exercisable upon the occurrence
of certain changes in the beneficial ownership of the Controlling Group,
to acquire 100% of the Series A shares held by them at a price and in
accordance with procedures established in such agreements.

102-2; 102-7

Annual percentage of EBITDA distribution:

2015

2016

2017

2018

2019

Argentina

Brazil

Chile

Paraguay

25%

32%

11%

23%

31%

35%

11%

23%

32%

34%

11%

19%

33%

38%

12%

16%

34%

38%

12%

Weight of subsidiary within total 2019

102

% of our assets

% of net sales

Argentina

Brazil

Chile

Paraguay

10%

40%

38%

12%

22%

35%

34%

PRINCIPAL PRODUCTS COMMERCIALIZED BY COUNTRY
102-2; 102-6; 102-7

Argentina:
Coca-Cola Andina Argentina produces and
commercializes the following products licensed by The
Coca-Cola Company: Coca-Cola, Coca-Cola Light,
Coca-Cola Zero, Fanta Naranja, Fanta Naranja Zero,
Fanta Limón, Fanta Pomelo, Sprite, Sprite Zero, Quatro
Liviana, Schweppes Citrus, Schweppes Tónica,
Schweppes Pomelo, Schweppes Zero, Crush Naranja,
Crush Pomelo Crush Lima Limón, Kin with and without
gas, Bonaqua with and without gas (mineral water),
Aquarius and Aquarius Cero. Additionally it produces
and commercializes Cepita juices, Powerade,
Powerade Zero and in certain provinces it
commercializes Amstel, Budweiser, Heineken, Sol,
Imperial, Palermo, Schneider, Bieckert, Kunstmann,
Isenbeck and Miller beer. Additionally it commercializes
AdeS products in its entire franchise territory. These
products are commercialized in returnable and
nonreturnable glass and PET containers, as post mix
syrup, in cans and Tetra Pak.

Chile:
Coca-Cola Andina Chile produces and distributes
the following products licensed by The Coca-Cola
Company: Coca-Cola, Coca-Cola Light, Coca-Cola
Zero, Fanta Naranja, Fanta Naranja Zero, Fanta Uva,
Fanta Guaraná, Fanta Piña, Inca Kola, Inca Kola Zero,
Nordic Mist Agua Tónica, Nordic Mist Ginger Ale, Nordic
Mist Zero, Quatro, Sprite, Sprite Zero, Cantarina, Limon
& Nada and Guallarauco Agua de Fruta. It distributes
VJ products : Andina del Valle, Andina del Valle Light,
Andina del Valle Nutridefensas, Kapo, LIMON & NADA
NARANJA, Quatro Pomelo Zero, Coca-Cola Plus Café,
Coca-Cola Energy; Vital Aguas products: Vital (with
and without gas), Smartwater, Benedictino, Aquarius,
Aquarius Cero, Café Blak. Through Koolife business unit
it commercializes GoldPeak, GoldPeak Diet, Core Power
and Zico among others. Additionally it distributes Monster
and commercializes AdeS products in its entire franchise
territory. It also commercializes Guinness beer, Tanqueray
gin, 􆙬
􆙬vodka,JohnnieWalkerwhisky, Don Julio tequila and
Baileys among others. These products are commercialized
in returnable and nonreturnable glass and PET containers,
as post mix syrup in cans and Tetra Pak.

Brazil:
Coca-Cola Andina Brasil commercializes The
Coca-Cola Company and Heineken products. Brands
of The Coca-Cola Company produced, sold and
distributed are: Coca-Cola, Coca-Cola Zero, Kuat, Kuat
Zero, Fanta Laranja, Fanta Laranja Zero, Fanta Uva, Fanta
Guaraná, Fanta Zero, Sprite, Sprite Zero, Schweppes
Tónica, Schweppes Citrus, Del Valle 100%, Del Valle
Frut, Del Valle Mais, Del Valle Mais Light, Kapo, Sabores
Caseros, Del Valle Nutri, Crystal (mineral water, with and
without gas), I9, Powerade, Powerade Zero, Fuze Ice
Tea, Fuze Ice Tea Zero, Fuze Mate Leão, Fuze Mate Leão
Zero, Guaraná Leão, Matte Leão, and Matte Leão Zero.
It also distributes the following beer brands: Amstel,
Bavaria, Heineken, Kaiser, Murphy´S, Sol and Xingu.
Additionally it commercializes AdeS products, Verde
Campo (Shake Whey, Lacfree y Minilac) and distributes
Monster and Burn in its entire franchise territory. These
products are commercialized in returnable and non-
returnable glass and PET containers, as post mix syrup
in cans and Tetra Pak.

Paraguay:
Coca-Cola Paresa produces and distributes the
following products licensed by The Coca-Cola
Company: Coca-Cola, Coca-Cola Zero, Fanta
Naranja, Fanta Naranja Zero, Fanta Naranja
Mandarina, Fanta Guaraná, Fanta Piña, Schweppes,
Schweppes Tónica, Schweppes Citrus, Schweppes
Pomelo, Sprite, Sprite Zero, Crush Naranja, Crush
Piña, Crush Pomelo, Frugos Manzana, Frugos
Durazno, Frugos Naranja, Frugos Naranja Light,
Frugos Pera, Frugos Naranja Casera, Aquarius,
Dasani (with and without gas), Powerade and Burn.
Additionally it commercializes AdeS products. These
products are commercialized in returnable and non-
returnable glass and PET containers, bag-in-box
syrup in cans and Tetra Pak.

LICENSE AGREEMENTS
BY COUNTRY
102-2, 102-9

ARGENTINA

BRAZIL

CHILE

PARAGUAY

General
Description

License Agreements are international standard
contracts that The Coca-Cola Company enters
into with bottlers outside the United States of
America for the sale of concentrates and
beverage basis for certain soft drinks and nonsoft
drink beverages. In accordance with these
contracts, we have the right to produce and
commercialize soft drinks bearing the
trademarks of The Coca-Cola Company in our
franchise territory. Although this is not an
exclusive right, The Coca-Cola Company has
never authorized any other entity to produce or
commercialize soft drinks or other beverages
bearing the trademarks of The Coca-Cola
Company in this territory.

Territories

This Agreement states as franchise territory the
provinces of Córdoba, Mendoza, San Juan, San
Luis , Entre Ríos, as well as part of the provinces of
Santa Fe and Buenos Aires, Chubut, Santa Cruz,
Neuquén, Río Negro, La Pampa, Tierra del Fuego,
Antartic and South Atlantic Islands.

This Agreement states as franchise territory, the
majority of the state of Rio de Janeiro, the entire
state of Espíritu Santo and part of the states of
São Paulo and Minas Gerais.

This agreement states as franchise territory
the entire country of Pargauay.

The License Agreement of Embotelladora
Andina S.A. states as franchise territory, the
Metropolitan Region (“Región Metropolitana”);
the province of San Antonio, in Region V; the
province of Cachapoal including the commune
of San Vicente de Tagua-Tagua, in Region VI;
Antofagasta Region II; Atacama Region III,
Coquimbo Region IV; Aysén del General Carlos
Ibáñez de Campo Region XI and Magallanes
and Chilean Antartic Region XII.

The term of the License Agreement with The
Coca-Cola Company has been extended until
September 30, 2022..

The term of the License Agreement with The
Coca-Cola Company has been extended
until October 4, 2022.

The term of the License Agreement with The
Coca-Cola Company has been extended
until January 1, 2023.

The term of the License Agreement with The
Coca-Cola Company has been extended
until September 1, 2020.

The Coca-Cola Company, Cervejarías Kaiser S.A.,
Molson Inc. and the Brazilian Association of
Coca-Cola Manufacturers entered into an
agreement of understanding and a convention
regarding the distribution of beer produced
or imported by Kaiser, through Coca-Cola’s
distribution system. Although the term of
these agreements are currently under judicial
discussion, Coca-Cola Andina understands that
the distribution agreements signed after May
30, 2003 have a duration of 20 years and are
renewable.

103

Term

Others

104

Argentina
Coca-Cola Andina Argentina operates three
production plants: (i) one located in Córdoba
with 15 lines ii) another in Bahía Blanca
(Province of Buenos Aires) with 4 lines, and
(iii) the third located in Trelew (Province of
Chubut) that has 3 lines.

Additionally, in June 2012 a plant was
launched for the treatment of raw sugar,
with a nominal processing capacity of
approximately 370 tons per day and,
since 2017, approval for the use of 100%
raw sugar, is maintained, reaching a plant
utilization of 57.0%.

The distribution of products is carried out
through 95 third-party transport
companies, with a fleet of 797 trucks.

Brazil
Coca-Cola Andina Brazil operates 3
production plants: (i) one plant in
Jacarepaguá, in the state of Rio de
Janeiro, that has 12 production lines (ii)
one plant in Ribeirão Preto, in the state of
São Paulo, that has 13 production lines.
Additionally, in December 2017 the
Duque de Caxias plant began operating
in December 2017 (iii), in the state of Rio
de Janeiro, that has 3 production lines.

The distribution of products is carried out
through own transport companies (889
trucks) and 4 third-party transport
companies (78 trucks).

Chile
Coca-Cola Andina Chile operates 4 plants
throughout Chile (i) one plant in Renca
that has 10 production lines (ii) one plant in
Coquimbo with 3 production lines (iii) one
plant in Antofagasta with 6 production
lines and (iv) one plant in Punta Arenas
with 3 production lines.

The distribution of products is carried out
through own transport companies (234
trucks) and 57 third-party transport
companies (491 trucks).

Paraguay
Coca-Cola Paresa operates one
production plant in the city of Asunción,
with 10 bottling lines , 6 for soft drinks, 4
lines are used for juices, and 1 line is
used for water.

The distribution of products is carried out
through an outsourced fleet (47
companies), which consists of 340 trucks
for the delivery of our products to
customers throughout Paraguay.

for more information see 20F

Argentina:
S.A. Imp. y Exp. de la Patagonia, Jumbo
Retail Argentina S.A., Inc Sociedad
Anónima, Wal-Mart Argentina S.R.L.,
Mistura S.A., Sita S.A., Pont Andrés Roberto,
Garzon S.R.L., Cooperativa Obrera Ltda
C y V, Cencosud S.A., Manzur Fortunato
Alberto, Lopéz Hnos. S.R.L ; Switch
Company S.A.. and Día Argentina S.A.

Brazil:
Companhia Brasileira De Distribuição
Cdb S.A., Assai, Atacadao S.A., Rede
Integra, Supermercados Mundial Ltda.,
Cencosud Brasil Comercial Ltda., Super
Market, Super Mercado Zona Sul S.A.,
Marko Atacadista S.A., Guanabara,
Savegnago Supermercados Ltda. and
Carrefour Comércio e Indústria Ltda.

None of the clients individually
concentrate more than 10% of total sales
carried out.

Chile:
Walmart Chile Comercial S.A., Cencosud
Retail S.A., Rendic Hermanos S.A., Alimentos
Fruna Ltda., Hipermercados Tottus S.A., Arcos
Dorados Restaurantes DE, Aramark Servicios
Mineros y Remotos, Alvi Supermercados
Mayoristas S.A., Supermercado y Dist.
Uno Market, Distrib. y Com. Tilicura S.A.,
Supermercados Montserrat S.A.C., Super 10
S.A. and Compras Catering S.A.

Walmart Chile Comercial S.A. individually
concentrates more than 10% of total sales
carried out.

Paraguay:
Cadena de Supermercados Super 6,
Cadena de Supermercados Stock,
Cadena de Supermercados Real, Tienda
de Conveniencia Petrobras, Cadena de
Tiendas de Cercanía City Market, Cadena
de Supermercados Gran Vía, Cadena de
Supermercado Salemma, Autoservice
Sonia, Cadena de Tiendas de Cercanía
Biggie, Mayorista Lekaja S.R.L, Mc Donald’s
and Cadena de Supermercados Luisito.

None of the clients individually concentrate
more than 10% of total sales carried out.

12 PRINCIPAL
SUPPLIERS BY COUNTRY
102-2, 102-6, 102-9

Argentina:
Concentrate: Servicios y Productos para
Bebidas Refrescantes S.R.L.(1) | Sweetner:
Complejo Azucarero Concepción
| Containers (resin): Dak Americas
Argentina S.A.| Packaging (preforms -
cases): Andina Empaques Argentina S.A.(2)
and Ball Beverage Can south americ
| Thermo-contractible: Río Chico S.A |
Electric energy: Compañía
Administradora del Mercado Mayorista
Eléctrico S.A., EPEC (Empresa Pcial
Energia Cba) and Termoandes S.A.
| Glass bottles: Cattorini Hnos S.A.C.I.F.E I.
| Carbonic gas: Praxair Argentina S.R.L.

Brazil:
Reselling of products: Cervejarias Kaiser
S.A., |Concentrate: Recofarma Industrias
do Amazonas Ltda.(1) | Sweetner: Usina
Alta Mogiana S.A. Açúcar e Alcool |
Containers (cans): Ball Embalagens LTDA
| Containers (preforms): Lorenpet
industria e comercio de plastico LTDA,
Riopet embalagens SA and Bericap do
Brasil LTDA. | Electric energy/gas:
Ecogen Rio solucoes energéticas S.A., |
Containers (paper): Tetra Pak LTDA |
Thermo-contractible: Patena Ind C R
Filmes Plastico Ldta. | Juices: Citrus Juice
LTDA.

Chile:
Concentrate: Coca-Cola de Chile S.A.(1) |
Containers (bottles): Envases CMF S.A.(2),
Cristalerías de Chile S.A. and Cristalerías
Toro S.A.C.I. | Caps: Sinea S.A. y Alucaps
Mexicana S.A. de C.V. | Sweetner: Iansa
Ingredientes S.A., Sucden Chile S.A. and
Comercializadora de Productos PANOR |
Carboni gas: Linde Gas Chile S.A.

Coca-Cola de Chile S.A.(1), and Envases
CMF S.A.(2) concentre at least 10% of total
purchases carried out.

(1) Shareholder
(2) Equity investee

105

Servicios y Productos para Bebidas
Refrescantes S.R.L.(1) individually
concentrates at least 10% of total
purchases carried out.

Cervejarias Kaiser S.A., Recofarma
Industrias do Amazonas Ltda.(1)
concentrate at least 10% of purchases
carried out.

(1) Shareholder
(2) Subsidiary

(1) : Related to shareholder Coca-Cola de Chile S.A.

Paraguay:
Concentrate: Servicios y Productos
Argentina(1) and Recofarma Industrias do
Amazonas Ltda.(2) | Sugar: Industria
Paraguaya de Alcoholes S.A. and
Azucarera Paraguaya S.A. | Preforms:
Industrias PET S.A. | Reselling of
products:
Alimentos de Soja SAU and
Embotelladora del Atlantico S.A (2) |
Containers (bottles): Cattorini Hnos.(glass)
| Tetra raw materials: Tetra Pak Ltda.
| Plastic caps: Andina Empaques
Argentina S.A.(2) and Sinea S.A. | Fructose:
Ingredion Argentina S.R.L. | Electric
Energy: ANDE Administración Nacional
de Electricidad.

Industria Paraguaya de Alcoholes S.A.,
Recofarma Industrias do Amazonas S.A.(2),
Servicios y Productos Argentina(1) and
Azucarera Paraguaya S.A. concentrate at
least 10% of total purchases carried out.

(1) Shareholder
(2) Related company

DETAIL OF OTHER OPERATIONS

ARGENTINA

BRAZIL

CHILE

PARAGUAY

Total Sales Volume M UC

178.2

259.3

239.6

Soft drinks

149.7

206.8

158.2

Juices and other non-alcoholic

Waters

Beer and other alcoholic

10.0

18.5

0.0

22.3

11.5

18.7

36.1

44.6

0.6

69.3

56.2

5.2

7.9

0.0

Total annual per capita consumption (8 oz bottles)

373.00

264,80

521,70

232,20

Soft drinks

257.0

214.7

371.8

188.1

Juices and other non-alcoholic

Waters

Beer and other alcoholic

Sales by format

17.0

29.0

70.0

19.0

11.7

19.4

53.0

95.3

1.6

18.0

26.1

0.0

% family size non-returnable

40.40%

57.75%

37.56%

41.21%

% family size returnable

46.80%

22.99%

40.93%

42.98%

% single-serve non-returnable

10.20%

14.46%

13.60%

11.30%

ANDINA EMPAQUES ARGENTINA S.A.
Andina Empaques Argentina S.A. (hereinafter also “AEA”), is a company
formed in 2011 from the division of Embotelladora del Atlántico S.A. for the
purpose of designing, manufacturing, and commercializing plastic products,
mainly bottles. In developing its activities in the packaging division and
aligned with our strategy to become the supplier of Coca-Cola Andina’s
group of companies, during 2019 AEA supplied Coca-Cola Andina Argentina
with non-returnable preforms, plastic caps, cases and returnable PET bottles.

Production and sales by format
Andina Empaques Argentina operates one plant for the production of
preforms, returnable PET bottles, plastic cases and caps located at Tigre
in the province Buenos Aires, Argentina. The plant has 13 injection lines,
three blowing lines, one line for cases and two lines for caps. Average
utilization capacity during 2019 was 67.3% for injection lines, 42.0% for
blowing lines, 67.6% for cases and 54.3% for plastic caps.

Sales by format during 2019 were 24.9 million Ref PET bottles and 598.8
million preforms for non-returnable bottles, 0.5 million cases and 588.6
million plastic caps.

Principal Clients

% single-serve returnable

1.30%

2.19%

3.72%

3.32%

• Embotelladora del Atlántico S.A. (Subsidiary)

% post mix

Sales by channel

% mom & pops

% wholesales

% supermarkets

% on-premise

Sales by flavor in soft drinks

% Coca-Cola

% other sugary

1.30%

2.61%

4.19%

1.19%

33.10%

23.69%

46.46%

28.40%

31.98%

27.78%

10.66%

33.90%

31.06%

31.76%

27.84%

13,20%

• Coca-Cola Femsa S.A.

• Paraguay Refrescos S.A. (Subsidiary)

• Reginald Lee S.A

• Grupo Arca

• Andina Chile (Associate)

• Montevideo Refrescos S.A.

Embotelladora del Atlántico S.A. (Subsidiary), Coca-Cola Femsa S.A.,

Paraguay Refrescos S.A. and Grupo Arca individually concentrate at

3.86%

16.77%

15.04%

24.50%

least 10% of total sales carried out .

61.42%

70.54%

51.02%

54.50%

Resin: DAK Americas Argentina S.A.

Principal suppliers

21.39%

15.74%

17.91%

27.40%

DAK Americas Argentina S.A. individually concentrates at least 10% of
total purchases carried out

% Coca-Cola without sugar

11.29%

7.15%

24.78%

3.30%

% other light

5.91%

6.57%

6.29%

14.90%

106

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORT

VJ S.A.

VITAL AGUAS S.A.

In agreement with The Minute Maid Co. and Coca-Cola de Chile S.A.,
VJ produces nectars, fruit juices, fantasy drinks and isotonics under the
brands: Andina del Valle (fruit juices and fruit nectars), Kapo (fantasy
drink) FUZE tea (ready-to-drink tea), Powerade (isotonic); and Glaceau
Vitamin Water (flavored water with added vitamins and). Andina del
Valle juice brands are commercialized in Tetra Pak packaging, glass
bottles (returnable and non-returnable). Kapo is commercialized in
sachets; FUZE Tea is commercialized in non-returnable glass bottles;
Glaceau Vitamin Water in non-returnable PET bottles and Powerade in
non-returnable PET bottles.

In January of 2011, the juice production business is restructured
allowing the incorporation of the other Coca-Cola bottlers in Chile
to the ownership of Vital S.A., which changes its corporate name to
Vital Jugos S.A. (currently denominated VJ S.A. and also identified
in this document as VJ). As a result of the merger by absorption
of Embotelladoras Coca-Cola Polar into Embotelladora Andina
materialized on October 1, 2012, the ownership structure of VJ S.A. was
amended beginning November 2012 as follows: Andina Inversiones
Societarias 50%, Embonor S.A. 35% and Embotelladora Andina S.A. 15%.

107

Juice bottler agreement
In 2005, VJ S.A. and The Coca-Cola Company entered into a Juice
Bottler Agreement to produce, prepare and bottle in packaging
previously approved by The Coca-Cola Company the abovementioned
brands. Andina and Embonor have the right to purchase products from
VJ S.A. Said agreement was renewed on January 1, 2019 and it expires
on December 31, 2020.

Additionally, Andina, VJ and Embonor have agreed with The Coca-Cola
Company the respective agreements and authorizations to produce,
package, and commercialize these products at their respective plants.

Production and distribution
VJ operates one production plant located in Santiago, where it has
eight lines for preparing Andina del Valle, FUZE tea, Powerade,
Aquarius and Glaceau Vitamin Water; and seven lines for the
production of Kapo. During 2019 average utilization capacity was
61.50%.In Chile VJ products are exclusively distributed by Coca-Cola
bottlers in the country, in each of their respective franchise territories.

Principal suppliers
Concentrate: Coca-Cola de Chile S.A.(1) | Sweetner: Embotelladora
Andina S.A.(2) | Fruit pulp: Sucocitrico Cutrale Ltda.-Brasil |
Comercializadora Tradecos Chile Ltda. | Aconcagua Foods S.A. |
Containers, Bottles and Cans: Tetra Pak de Chile Ltda. | International Paper
Cartones Ltda. | Envases CMF S.A.(3) | Caps: Sinea S.A. | Alucaps Mexica
de Occidente S .A. de C.V. | Portola Packaging Inc. (SILGAN) | Packaging
material: Plásticos Arpli Ltda., Plásticos Eroflex S.A., Plastyberg Industrial
Ltda. Labels: Multicor Chile S.A. ; Morgan Impresoras S.A., Codepack S.A.

Tetra Pak, Envases CMF S.A.(3) and Coca-Cola de Chile S.A.(1) each
individually concentrate at least 10% of total purchases of raw
materials carried out.

Principal clients
Embotelladora Andina S.A.1 and Coca-Cola Embonor S.A.

In agreement with The Coca-Cola Company, Vital Aguas S.A. prepares and
bottles Vital (mineral water) in the versions with gas and without gas. As a
result of the merger by absorption of Embotelladoras Coca-Cola Polar into
Embotelladora Andina which took place at the end of 2012, the ownership
structure of Vital Aguas was amended beginning November 2012 as follows:
Embotelladora Andina S.A. 66.5% and Embonor S.A. 33.5%.

Water Manufacturing and Packaging Agreement
In 2005, The Coca-Cola Company and Vital Aguas S.A. entered into a
Water Manufacturing and Packaging Agreement for the preparation and
packaging of beverages regarding the brands Vital, Chanqueahue, Vital
de Chanqueahue and Dasani; incorporating in early 2008 the Benedictino
brand to the product portfolio elaborated by Vital Aguas S.A. in accordance
to this agreement. The agreement was renewed on January 1, 2019 and it
expires on December 31, 2020.

Production and distribution
Vital Aguas operates three lines for the production of mineral water and
purified water at the Chanqueahue plant, located in the commune of Rengo
in Chile. In 2019 production lines operated at an average 58.2% of installed
capacity. In Chile, the products of Vital Aguas are distributed exclusively by
Andina and Embonor in each of their respective franchise territories.

Principal suppliers
Concentrate: Coca-Cola de Chile S.A. Carbonic gas: Linde Gas Chile S.A.
Labels: Resinplast S.A. /Empack Flexible S.A./Adhesol Ltda. Material
de empaque: Plastyveg Industrial Ltda. / Casala Industrial S.A. / AR
Pack SAC Caps: Envases CMF S.A. / Importadora y Exportadora de
Embajales SPA. IMPORTADORA and Alusud Embalajes Chile Ltda.
Containers (preforms)/ Envases CMF S.A.

Envases CMF S.A.(2) and Coca-Cola de Chile S.A.(1) individually
concentrate at least 10% of total purchases of raw materials carried out.

(1) Shareholder
(2) Parent company
(3) Associate

(1) Shareholder
(2) Associate

ENVASES CMF S.A

The Company is mainly focused on the production of the following
brands of soft drinks: Coca-Cola, Fanta and Sprite, Aquarius (pear,
apple, lemon, grape and peach) and the energy drink Burn. The
canning of these products is in 350 ml, 310 ml 250 ml and 220 ml cans,
and in plastic PET bottles of 250 ml, 500 ml, 580 ml, and 1.5 lt (only
Aquarius). The bottlers of the Coca-Cola System in Chile, along with
Coca-Cola de Chile, share the ownership of Envases Central. Andina
holds a 59.27% stake, Embonor holds a 34.31%, and Coca-Cola de Chile
holds a 6.42% stake.

License Agreement
License Agreements are international standard contracts that The
Coca-Cola Company enters into with bottlers outside the United States of
America for the sale of concentrates and beverage basis for certain soft
drinks and non-soft drink beverages. The term of the License Agreement
with The Coca-Cola Company is effective until March 31, 2021.

Envases CMF is mainly dedicated to the production of returnable and
non-returnable bottles, returnable and nonreturnable preforms and
caps. Since 2012, Envases CMF is owned by Andina Inversiones
Societarias S.A. (50%) and by Embonor Empaques S.A. (50%).

Production and sales by format
Envases CMF operates one plant for the manufacture of PET bottles located
in Santiago. The plant has 13 preform injection lines, 11 blowing lines, 16 lines
for conventional injection, seven injector blowing lines and four extraction-
blowing lines. During 2019, average utilization capacity of the production
lines was 65.00%, 53.00%, 84.00%, 63.00% and 92.00%, respectively.

Sales by format during 2019 were 163 million non-returnable PET bottles,
26 million returnable PET bottñes, 701 million preforms for nonretunrable
bottles and 899 million products by conventional injection.

Principal clients

Production and distribution
Envases Central operates one production plant in Santiago, with one
canning line and one line for bottling PET formats. In 2019, canning and
bottling lines operated at an average utilization capacity of 34%. In Chile
the products of Envases Central are distributed exclusively by the
Coca-Cola bottlers in the country in each of their respective
franchise territories.

• Embotelladora Andina S.A.1, Coca-Cola Embonor S.A., VJ S.A., Vital

Aguas S.A., Envases Central S.A., Embonor Empaques S.A., Nestlé Chile

S.A., Tres Montes S.A., Empresas Demaria S.A., Embotelladoras

Bolivianas Unidas S.A., Fábrica de Envases Plásticos Artel S.A.I.C.

Embotelladora Andina S.A.(1) and Coca-Cola Embonor S.A., individually
represent at least 10% of total sales carried out .

108

Principal clients

• Embotelladora Andina S.A.(1) and Coca-Cola Embonor S.A.

Embotelladora Andina S.A.(1) and Coca-Cola Embonor S.A. individually
represent at least 10% of total sales carried out.

Principal suppliers
Aluminum cans and caps: Ball Chile S.A. Concentrado: Coca-Cola
de Chile S.A. Fruit pulp: Vital Jugos S.A., Comercializadora Tradecos
Chile SPA. Sweetener: Embotelladora Andina S.A. Plastic bottles and
caps: Envases CMF S.A., BERICAP S.A. Labels: MULTI-COLOR CHILE S.A.
Packaging material: COPACK S.A., CORRUPAC S.A., PLASTYVERG
INDUSTRIAL LTDA.

Ball Chile S.A., Coca-Cola de Chile S.A.2, Vital Jugos S.A. individually
concentrate at least 10% of raw material purchases carried out.

(1) Parent Company
(2) Shareholder
(3) Associate

Principal suppliers
Resina: Jiangyin Xingyu New Material Co., Far Eastern Textile Ltd., Dak
Americas LLC USA, Dark Americas Argentinas S.A., Tricon Energy Ltda.
and China Resourses.

Jiangyn Xingyu New Material Co., Dak Americas LLC USA, China
Resources and Far Eastern Textile LTD., individually concentrate at least
10% of raw material purchases carried out.

Parent Company
Embotelladora Andina S.A.1 and Coca-Cola Embonor S.A., individually
reresent at least 10% of total sales carried out.
Jiangyn Xingyu New Material Co., Dak Americas LLC USA, China
Resourses y Far Eastern Textile LTD., individually represent at least 10%
of total raw material purchases carried out.

(1) Parent Company

35.00%
Coca-Cola
Del Valle New
Ventures S.A.

59.27%
Envases
Central S.A.

66.5%
Vital Aguas
S.A.

EMBOTELLADORA
ANDINA S.A.

99.9998%
Andina Inversiones
Societarias S.A.
0.00011%

0.01%

99.99%

99.99%
Transportes
Polar S.A.

0.00007%
Comercializadora
Novaverde S.A.

0.15%

99.9%
Red de
Transportes
Comerciales
Ltda.

0.0041%

99.9959%
Transportes
Andina Refrescos
Ltda.

0.10%

99.90%
Servicios
Multivending Ltda.

0.00005%

0.10%

50.0%

99.99995%
Embotelladora
Andina Chile S.A.

99.90%
Andina Bottling
Investments S.A.

15.0%
VJ S.A.

50.0%
Envases
CMF S.A.

0.10%

99.90%
Andina Bottling
Investments Dos S.A.

99.99%

0.1% Abisa Corp

99.07%

0.91%
Embotelladora
del Atlántico
S.A.

0.003%

99.98%

0.003%

Andina
Empaques
Argentina S.A.

109

14.3%
Alimentos de
SOJA S.A.

Argentina

Brazil

Chile

Paraguay

British Virgin Islands

Parent Company

Consolidating subsidiaries

Associates

Investments without significant influence

0.70%
Aconcagua
Investing Ltd.
99.30%

97.7533%

0.07697%
Paraguay
Refrescos S.A.

99.99%
Rio de Janeiro
Referescos Ltda.

Sorocaba Refrescos Ltda. 40.00%

Leão Alimentos e Bebidas Ltda. 10.26%

Trop Frutas do Brasil Ltda. 7.52%

Kaik Participações Ltda. 11.32%

SRSA Participações Ltda. 40.00%

UBI 3 Participações Ltda. 8.50%

Embotelladora del Atlántico S.A.(o)

Andina Empaques Argentina S.A.(o)

Alimentos de SOJA S.A.

Rio de Janeiro Refrescos Ltda.

Kaik Participações Ltda.

Address: Ruta Nacional 19, Km 3,7, Córdoba

Address: Austria 650 - General Pacheco –
Partido de Tigre

Address: Marcelo T. de Alvear 684, Piso 1°,
Ciudad Autónoma de Buenos Aires

Address: Rua André Rocha 2299, Taquara,
Jacarepaguá, Rio de Janeiro

Address: Av. Maria Coelho de Aguiar 215, bloco
A, 1° Andar, Jardim São Luis, São Paulo

CUIT: 30-71213488-3

CUIT: 33-715-23028-9

CNPJ: 00.074.569/0001-00

CNPJ: 40.441.792/0001-54

Telephone: (54-11) 4715 8000

Telephone: (54-11) 5196 8300

Telephone: (55-21) 2429 1779

Telephone: (55-11) 2102 5563

Paid-in and subscribed capital (at 12/31/19)
AR$ 2,533,613.

Paid-in and subscribed capital (at 12/31/19)
AR$ 136,749,248.

Paid-in and subscribed capital (at 12/31/19)
R$ 532,134,973.45

Paid-in and subscribed capital (at 12/31/19)
R$ 999.94.

% the investment represents in the Parent
Company's assets
0.48%

% the investment represents in the Parent
Company's assets
0.47%

% the investment represents in the Parent
Company's assets
14.42%

% the investment represents in
the Parent Company's assets
0.06%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0 %
Indirectly: 99.8830%.

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0 %
Indirectly: 14.305%.

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0 %
Indirectly: 9.99%.

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0 %
Indirectly: 11.32%.

CUIT: 30-52913594-3

Telephone: (54-351) 496 8888

Paid-in and subscribed capital (at 12/31/19)
AR$ 136,749,248.

% the investment represents in the Parent
Company's assets
6.8%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0.91%
Indirectly: 98.9739%.

Corporate purpose: Manufacture, bottle,
distribute and commercialize non-alcoholic
beverages. Manufacture, bottle and sell any
other beverage and derivatives.

Corporate purpose: Design, produce and
commercialize plastic products, mainly
packaging.

Commercial relationship: Coca-Cola bottler
in Argentina.

Commercial relationship: Supplier of plastic
bottles and preforms.

Board of Directors / Management Council:
Gonzalo Manuel Soto (3)
Fabián Castelli (2)
Jaime Cohen (1)
Laurence Paul Wiener (A)

110

General Manager:
Fabián Castelli (2)

General Manager:
Daniel Caridi

Notes Argentina:
o Corporation.
*No ownership variations during the last year
(1) Embotelladora Andina S.A. officer
(2) Embotelladora del Atlántico S.A. officer
(3) External counsel.
(A) Alternate.

Corporate purpose: Invest in other companies
with own resources.

Commercial relationship:

Board of Directors / Management Council:
Luiz Eduardo Tarquinio
Carlos Eduardo Correa
Ricardo Vontobel
Francisco Miguel Alarcón
Renato Barbosa (2)

Corporate purpose: Manufacture and
commercialize beverages in general, powdered
juices and other related semi processed
products.

Commercial relationship: Coca-Cola bottler
in Brazil.

Board of Directors / Management Council:
Renato Barbosa (2).
Fernando Fragata (2).
Rodrigo Klee (2).
David Parkes (2).
Antonio Rui de Lima Barreto Coelho (2) .
Max Fernandes Ciarlini (2)

General Manager:
Renato Barbosa (2).

Corporate purpose: On its account, or that of
third parties or associated with third parties, in
this Republic or abroad, perform the following
activities: manufacture, marketing, import,
export, processing, fractionation, packaging,
distribution of food products for human
consumption and beverages in general and
their raw materials and respective related
products and by-products, in their different
stages and processes.

Commercial relationship: produce soy-based
products for Coca-Cola bottlers in Argentina.

Board of Directors / Management Council:
Gerardo Beramendi
Paulo Dias
Luisa Ortega
Omar Carlos Kiriadre
Sergio Bernabé Giménez
Jorge Luis López
Fabián Castelli (2)
Javier Sanchez Carranza
David Lee
Mercedes Rodriguez Canedo (A)
Maria Sol Jares Canovas (A)
Francisco Jeldres (A)
Diana Rosas (A)
María Fernanda Causarano (A)
Ruben Sergio Coronel (A)
Fernando Ramos Meneghetti (A)
Teodoro Federico Kundig (A)
Esteban Eduardo Mele (A)

General Manager:
José Marquina

Sorocaba Refrescos Ltda.

Trop Frutas do Brasil Ltda.

SRSA Participações Ltda.

UBI 3 Participações Ltda.

Address: Rua Apes Leme, nº 524 - 10º andar,
São Paulo, São Paulo

Address: Rod.Raposo Tavares, Km 104, Jardim
Jaraguá, Sorocaba, São Paulo

Address: Avenida PRF Samuel Batista Cruz,
9853, 115.591.0060 M2, CEP 29909-900,
Linhares. Espirito Santo

Address: Rua Antonio Aparecido Ferraz, 795,
Sala 01, Jardim Itanguá, Sorocaba, São Paulo

Address: Rua Teonilio Niquine nº 30, Galpão B,
Jardim Piemonte, Betim, Minas Gerais

CNPJ: 72.114.994/0001-88

CNPJ:45.913.696/0001-85

CNPJ: 10.359.485/0001-68

CNPJ: 27.158.888/0001-41

CNPJ: 07.757.005/0001-02

Telephone: (55-27) 2103 8300

Paid-in and subscribed capital (at 12/31/19)
R$ 393,115,883.80.

% the investment represents in
the Parent Company's assets
0.27%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0 %
Indirectly: 7.52%.

Corporate purpose: Manufacture, commercialize
and export natural fruit pulp and coconut water.

Commercial relationship: Produces products
for Coca-Cola bottlers in Brazil.

Board of Directors / Management Council:
Dirk Schneider
Bruna Aronne Sekeff

General Manager:
Dirk Schneider

Telephone: (55-15) 3229 9906

Telephone: (55-21) 2559.1032

Paid-in and subscribed capital (at 12/31/19)
R$ 20,000

Paid-in and subscribed capital (at 12/31/19)
R$ 10,432.

% the investment represents in
the Parent Company's assets
0,00%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0 %
Indirectly: 40%.

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0 %
Indirectly: 8.50%.

Corporate purpose: Purchase and sale of real
estate investments and property management.

Commercial relationship: Business supporting
company

Board of Directors / Management Council:
Renato Barbosa (2)
Luiz Lacerda Biagi

General Manager:
Cristiano Biagi

Corporate purpose: Invest in other companies
with own resources. Purchase and sale of real
estate investments and property management

Commercial relationship: produces soy-based
products for Coca-Cola bottlers in Brazil.

Board of Directors / Management Council:
Fernanda Paula Ruiz
Lia Marques Oliveira
Neuri Amabile Firgotto Pereira

Telephone: (55-11) 3809 5000

Telephone: (55-15) 3229 9930

Paid-in and subscribed capital (at 12/31/19)
R$ 1,142,611,886.

Paid-in and subscribed capital (at 12/31/19)
R$ 71,808,495.66

% the investment represents in
the Parent Company's assets
0.79%

% the investment represents in
the Parent Company's assets
1.08%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0 %
Indirectly: 10.26%.

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0 %
Indirectly: 40%.

Corporate purpose: Manufacture and
commercialize food and beverages in general,
and beverage concentrate. Invest in other
companies.

Commercial relationship: Produces sensible
products for Coca-Cola bottlers in Brazil.

Commercial relationship: Coca-Cola bottler
in Brazil.

111

Board of Directors / Management Council:
Henrique Braun
Claudia Lorenzo
Alexandre Fernandes Delgado
Marcelo Gil
Renato Barbosa (2)
Neuri Pereira
Ian Craig
Emerson Vontobel
Mario Veronezi
Ruben Schneider
Sérgio Ferreira
Bruno Arrone Sekeff

General Manager:
Dirk Schneider

Board of Directors / Management Council:
Renato Barbosa (2)
Cristiano Biagi
Giordano Biagi
Miguel Ángel Peirano (1)
Cláudio Sergio Rodrigues
Luiz Lacerda Biagi

General Manager:
Cristiano Biagi

Notes Brazil:
(*) No ownership variations in the last year.
(Ω) This company was incorporated in 2018
(1) Embotelladora Andina S.A. officer
(2) Rio de Janeiro Refrescos Ltda. officer

VJ S.A.(°).

Vital Aguas S.A.(°)

Coca-Cola del Valle New Ventures S.A.(°)

Transportes Andina Refrescos Ltda.(°°°).

Address: Av. Miraflores 9153, Renca, Santiago

Address: Av. Américo Vespucio 1651, Renca,
Santiago

Address: Camino a la Vital 1001, Comuna de
Rengo

Address: Av. Miraflores 8755, Renca, Santiago

Address: Av. Miraflores 9153, piso 4, Renca,
Santiago

RUT: 76.070.406-7

Telephone: (56-2) 2611 5838

Paid-in and subscribed capital (at 12/31/19)
Th$ 27,208,276

% the investment represents in
the Parent Company's assets
1.68%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 99.99995%
Indirectly: 0.00005%.

Corporate purpose: Manufacture, bottle,
distribute and commercialize non-alcoholic
beverages.

Commercial relationship: leasing of
production infrastructure

Board of Directors / Management Council:
Miguel Ángel Peirano (2)
Andrés Wainer (2)
Jaime Cohen (2)

112

General Manager:
José Luis Solórzano (2)

RUT: 93.899.000-K

RUT: 76.389.720-6

Telephone: (56-2) 2620 4100

Telephone: (56-2) 2346 4245

Paid-in and subscribed capital (at 12/31/19)
Th$ 20,675,167

Paid-in and subscribed capital (at 12/31/19)
Th$ 4,331,154

% the investment represents in
the Parent Company's assets
0.99%

% the investment represents in
the Parent Company's assets
0.24%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 15.00%.
Indirectly: 49.9999%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 66.5%
Indirectly: 0%

Corporate purpose: Manufactures, distribute
and commercialize all kinds of food products,
juices and beverages.

Corporate purpose: manufactures, distributes
and commercializes all kinds of water and
beverages in general.

Commercial relationship: produces juices for
Coca-Cola bottlers in Chile.

Commercial relationship: produces mineral
water for Coca-Cola bottlers in Chile.

Board of Directors / Management Council:
José Luis Solórzano (2)
Alejandro Zalaquett (2)
Cristián Hohlberg
Jaime Cohen (2), (A)
José Domingo Jaramillo
Andrés Wainer (2)
Fernando Jaña (A)
Rodrigo Ormaechea (2), (A)

General Manager:
Alberto Moreno

Board of Directors / Management Council:
José Luis Solórzano (2)
Alejandro Zalaquett (2)
José Domingo Jaramillo
Jaime Cohen (2), (A)
Andrés Wainer (2),
Fernando Jaña (2), (A)
Rodrigo Ormaechea (2), (A)
Vacante hasta la próxima Junta Ordinaria de
Accionistas.

General Manager:
Alberto Moreno

RUT: 76.572.588-7

Paid-in and subscribed capital (at 12/31/19)
Th$ 84,442,243.

RUT: 78.861.790-9

Telephone: (56-2) 2611 5838

Paid-in and subscribed capital (at 12/31/19)
Th$ 12,620,628

% the investment represents in
the Parent Company's assets
0.54%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 99.9959%;
Indirectly: 0.00041%.

Corporate purpose: Provide administration
services and management of domestic and
foreign ground transportation.

Commercial relationship: provides
ground transportation services.

Board of Directors / Management Council:
No Aplica.

% the investment represents in
the Parent Company's assets
1.41%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 35%
Indirectly: 0%

Corporate purpose: manufactures, distributes
and commercializes all kinds of juices, water
and beverages in general.

Commercial relationship: produces water and
juices for Coca-Cola bottlers in Chile.

Board of Directors / Management Council:
Miguel Ángel Peirano (2)
José Luis Solórzano (2)
Alfredo Mahana (A)
Rodrigo Ormachea (2)
Cristián Hohlberg
Paulo Dias
José Jaramillo
Joao Santos
Roberta Cabral
Diana Rosas
Alejandro Zalaquett (2) (A)
Rodolfo Peña( 2)(A)
Juan Paulo Valdés (A)
Mercedes Rodríguez (A)
Maria Sol Jares (A)
Francisco Jeldres (A)
Omar Kiriadre (A)
Fernando Jaña (2)
Gerardo Beramendi

General Manager:
Alejandro Palma

Notes Chile:
(°) Closed stock corporation
* No ownership variations during the last year
(°°°) They are limited liability companies in which the management
of the company corresponds to Embotelladora Andina S.A. throu-
gh specially appointed agents or representatives.
(Ω) : This company was incorporated in 2018
(1): Director and member of the Controlling Group of
Embotelladora Andina S.A.
(2): Embotelladora Andina S.A. officer
(A) Alternate

Servicios Multivending Ltda.°°°

Envases CMF S.A.°

Envases Central S.A.°

Andina Bottling Investments S.A.°

Address: Av. Miraflores 9153, piso 4, Renca,
Santiago

Address: La Martina 0390, Pudahuel, Santiago

Address: Av. Miraflores 8755, Renca, Santiago

RUT: 96.928.520-7

RUT: 78.536.950-5

Telephone: (56-2) 2611 5838

Paid-in and subscribed capital (at 12/31/19)
Th$ 1,619,315

Paid-in and subscribed capital (at 12/31/19)
Th$ 862,248

% the investment represents in
the Parent Company's assets
0.15%

% the investment represents in
the Parent Company's assets
0.04%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 99.99%;
Indirectly: 0.01%.

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 99.90%;
Indirectly: 0.10%.

113

Corporate purpose: Freight transportation in
general in the beverage industry and other
processed goods.

Commercial relationship: provides
ground transportation services.

Board of Directors / Management Council:
José Luis Solórzano (2)
Rodolfo Peña (2)
Alejandro Zalaquett (2)

General Manager:
Alejandro Vargas (2)

Corporate purpose: Commercialize products
through equipment and vending machines.

Commercial relationship: Provides
commercialization of products through vending
machines.

Board of Directors / Management Council:
No Aplica.

Notes Chile:
(°) Closed stock corporation
* No ownership variations during the last year
(°°°) They are limited liability companies in which the management
of the company corresponds to Embotelladora Andina S.A. through
specially appointed agents or representatives.
(Ω) : This company was incorporated in 2018
(1): Director and member of the Controlling Group of
Embotelladora Andina S.A.
(2): Embotelladora Andina S.A. officer
(A) Alternate

RUT: 86.881.400-4

RUT: 96.705.990-0

Telephone: (56-2) 2544 8222

Telephone: (56-2) 2599 9300

Paid-in and subscribed capital (at 12/31/19)
Th$ 32,981,986

Paid-in and subscribed capital (at 12/31/19)
Th$ 7,562,354

% the investment represents in
the Parent Company's assets
0.84%

% the investment represents in
the Parent Company's assets
0.56%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0.0%;
Indirectly: 49.9999%.

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 59.27%
Indirectly: 0%.

Corporate purpose: Manufacture and sale of
plastic products and bottling services and
beverage containers.

Corporate purpose: Manufacture and packaging
of all kinds of beverages, and commercialize all
kinds of packaging.

Commercial relationship: supplier of plastic
bottles, preforms and caps.

Board of Directors / Management Council:
Salvador Said (1)
Andrés Vicuña
Cristián Hohlberg
Matías Mackenna
Andrés Wainer (2)

Commercial relationship: produces cans and
some small formats for the Coca-Cola
bottlers in Chile.

Board of Directors / Management Council:
José Luis Solórzano (2)
Alejandro Zalaquett (2)
Cecilia Facetti
José Jaramillo
Cristián Hohlberg
Roberta Cabral Valenca
Andrés Wainer (2) (A)
Jaime Cohen (2) (A)
Fernando Jaña (2) (A)
Juan Paulo Valdés (A)
Thiago Santos (A)
Vacante hasta prox. JOA

General Manager:
Isabel León

Address: Av. Miraflores 9153, piso 7, Renca,
Santiago

RUT: 96.842.970-1

Telephone: (56-2) 2338 0520

Paid-in and subscribed capital (at 12/31/19)
Th$ 311,727,581

% the investment represents in
the Parent Company's assets
99.9%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 99.90%
Indirectly: 0.10%.

Corporate purpose: Manufacture, bottle and
commercialize beverages and food in general
Invest in other companies

Commercial relationship: Investment vehicle

Board of Directors / Management Council:
Miguel Ángel Peirano (2)
Andrés Wainer (2)
Jaime Cohen (2)
Martín Idígoras (2) (A)
Fernando Jaña (2) (A)
Gonzalo Muñoz (2) (A)

General Manager:
Miguel Ángel Peirano (2)

Andina Inversiones Societarias S.A.(°)

Red de Transportes Comerciales Ltda.(°°°)

Comercializadora Novaverde S.A. (Ω)

Address: Av. Miraflores 9153, piso 7, Renca,
Santiago

Address: Av. Del Valle Norte 937, of. 554, Ciudad
Empresarial, Huechuraba

Address: Carretera General San Martín Km. 16.5,
Calle Simón Bolívar, Sitio 19, Colina, Santiago

RUT: 96.972.760-9

RUT: 96.836.750-1

RUT: 76.276.604-3

RUT: 77.526.480-2

Telephone: (56-2) 2338 0520

Telephone: (56-2) 2993 9704

Telephone: (56-2) 24110150

Paid-in and subscribed capital (at 12/31/19)
Th$ 665,000.

Paid-in and subscribed capital (at 12/31/19)
Th$ 30,082,325

Paid-in and subscribed capital (at 12/31/19)
Th$ 2,200,313.

Paid-in and subscribed capital (at 12/31/19)
Th$ 14,856,772

% the investment represents in
the Parent Company's assets
30.44%

% the investment represents in
the Parent Company's assets
1.39%

% the investment represents in
the Parent Company's assets
0.07%.

% the investment represents in
the Parent Company's assets
0.36%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 99.90%
Indirectly: 0.10%.

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 99.9998%;
Indirectly: 0.0001%.

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 99.85%.
Indirectly: 0.15%.

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0.00007%
Indirectly: 34.9965%.

Corporate purpose: Perform exclusively foreign
permanent or income investments
in all kinds of movable goods.

Corporate purpose: Invest in all kinds of
companies and commercialize foods
in general.

Corporate purpose: Freight transportation
in general in the beverage industry
and other processed goods.

Commercial relationship: Investment vehicle

Board of Directors / Management Council:
Miguel Ángel Peirano (2)
Andrés Wainer (2)
Jaime Cohen (2)
Martín Idígoras (2), (A)
Fernando Jaña (2), (A)
Gonzalo Muñoz (2) (A)

114

Board of Directors / Management Council:
Miguel Ángel Peirano (2)
Andrés Wainer (2)
Jaime Cohen (2)
Martín Idígoras (2) (A)
Fernando Jaña (2) (A)
Gonzalo Muñoz (2) (A)

General Manager:
Miguel Ángel Peirano (2)

Commercial relationship: Provides ground
transportation services and commercialization
of products.

Board of Directors / Management Council:
N/A

Corporate purpose: Company dedicated
to the processing and commercialization
of fruits, ice creams, vegetables and food in
general, under the Guallarauco brand.

Commercial relationship: Sales of juices,
flavored waters, among others, to the Coca-
Cola bottlers in Chile

Board of Directors / Management Council:
José Luis Solórzano (2)
Rodrigo Ormaechea (2)
Roberta Cabral Valenca
Paulo Dias
Francisco Jeldres
José Jaramillo (A)
Fernando Jaña (2) (A)
Alejandro Zalaquett (2) (A)
Maria Sol Jares (A)
Mercedes Rodríguez (A)
Gerardo Beramendi (A)

General Manager:
Juan Luis Piwonka

Notes Chile:
(°) Closed stock corporation
* No ownership variations during the last year
(°°°) They are limited liability companies in which the management
of the company corresponds to Embotelladora Andina S.A. through
specially appointed agents or representatives.
(Ω) : This company was incorporated in 2018
(1): Director and member of the Controlling Group of
Embotelladora Andina S.A.
(2): Embotelladora Andina S.A. officer
(A) Alternate

Abisa Corp.

Aconcagua Investing Ltd.

Address: Acceso Sur, Ruta Ñemby Km 3,5
-Barcequillo -San Lorenzo, Asunción

Address: Vanterpool Plaza, 2°Piso, Wickhams
Cay 1, Road Town Tortola, British Virgin Island |
N° de Registro 512410

Address: Vanterpool Plaza, Wickhams Cay 1, P.O.
Box 873 Road Town, Tortola, British Virgin Island
| N° de Registro 569101

RUT: 80.003.400-7

Telephone: (595) 21 959 1000

Paid-in and subscribed capital (at 12/31/19)
G. 94,284,000,000

% the investment represents in
the Parent Company's assets
10.88%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: 0.076%.
Indirectly: 97.6555%.

Corporate purpose: Manufacture, distribute and
commercialize carbonated and non-carbonated
non-alcoholic beverages

Commercial relationship: Coca-Cola bottler
in Paraguay.

Board of Directors / Management Council:
Andrés Wainer (1)
Francisco Sanfurgo (2)
Jaime Cohen (1)
Gonzalo Muñoz (1)

RUT: 59.144.140-K

Telephone: (1-284) 494 5959

Paid-in and subscribed capital (at 12/31/19)
Th$ 12,594,313

% the investment represents in
the Parent Company's assets
14.00%

% that the Parent Company holds in the capital
of the subsidiary or equity investee(*)
Directly: -.
Indirectly: 99.99%.

Corporate purpose: Invest in financial
instruments, for its own account or on behalf
of third parties.

Commercial relationship: Investment company

Board of Directors / Management Council:
Miguel Ángel Peirano (1)
Andrés Wainer (1)
Jaime Cohen (1)

Paid-in and subscribed capital (at 12/31/19)
Th$ 523,599

% the investment represents in
the Parent Company's assets
0.96%

% that the Parent Company holds in the capital of
the subsidiary or equity investee(*)
Directly: 0.70%
Indirectly: 99.2998%.

Corporate purpose: Invest in financial
instruments, for its own account or on behalf
of third parties.

Commercial relationship: Investment company

Board of Directors / Management Council:
Jaime Cohen (1)
Andrés Wainer (1)
Miguel Ángel Peirano (1)

115

General Manager:
Francisco Sanfurgo (2)

Notes Paraguay:
°Corporation
* No ownership variations during the last year
1 Embotelladora Andina S.A. officer
2 Paraguay Refrescos S.A. officer

Notes British Virgin Islands
* No ownership variations during the last year
1 Embotelladora Andina S.A. officer

INVE􀀈STMENTS

Additions to property, plant and equipment (nominal million US$)

Argentina

Embotelladora Atlántico S.A. (1)

Andina Empaques Argentina S.A. (1)

Brazil

Chile

Rio de Janeiro Refrescos S.A.

Embotelladora Andina S.A.

VJ S.A.

Vital Aguas S.A.

Envases Central S.A.

2015

35.0

1.9

41.1

69.3

3.2

1.3

1.8

2016

2017

2018

2019

57.8

3.7

51.5

44.4

7.3

2.6

1.0

47.1

1.9

112.1

45.0

1.1

0.3

4.4

40.8

1.8

74.0

56.8

1.6

22.3

25.9

1.1

28.1

54.2

0.6

0.8

1.2

20.8

Paraguay

Paraguay Refrescos S.A.

16.0

16.1

16.0

e own production plants in each of
the principal population centers that
comprise the franchise territories. In
addition, we own distribution centers
and administrative offices in each of
the franchise territories.

116

A detail of our properties and facilities can be reviewed in the
exhibits section.

Total

169.6

184.4

227.9

197.3

132.6

1) For Argentina, 2019 figures are expressed in Dec-2019 currency pursuant to criteria set by IAS 29. For previous periods there is no change in criteria.

INVESTMENT AND
FINANCING POLICY

The Bylaws of Coca-Cola Andina
do not define a particular financing
structure or the investments that
the Company can make. Within the
powers granted by the Shareholders'
Meeting, the Board defines financing
and investment policies. On the
other hand, as agreed at Board
session held December 20, 2011,
supplemented by the agreements
made at Board session held August
28, 2012, certain types of investments
and financing require the agreement
of the Board of Directors.

We have budgeted US$160-170
million for our capital investments
in 2020, which are expected to be
mainly spent on:

• Improving our information

technologies in Argentina, Brazil
and Paraguay,

• Improving our productive capacity

(mainly returnable labelling
projects and new lines in Brazil,
Chile and Paraguay),

• Improving infrastructure (mainly in

Paraguay and Chile)

• Returnable bottles and containers,

and

• Cold equipment.

INSURANCE

EQUIPMENT

Our main equipment consists
of bottling lines and auxiliary
equipment, market assets,
packaging and distribution assets. All
of these are in good condition and
are sufficient to sustain the normal
functioning of operations.

Coca-Cola Andina and its subsidiaries
maintain insurance policies with
first-class companies. The main
policies cover fire risks, earthquakes
and business interruption, including
resulting lost profits. In addition, there
are policies with specific coverages,
among others: transportation, motor
vehicles, terrorism, civil liability and
product liability. Coca-Cola Andina
periodically uses exchange rate
hedging insurance to back payment
commitments in currencies other
than the functional currency of our
business, either for obligations arising
from the acquisition of fixed assets or
by purchases of raw materials.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORT

chapter.eight |

EXHIBITS

RISK FACTORS

PROPERTIES
AND FACILITIES

EXPERIENCE BOARD OF
DIRECTORS AND
EXECUTIVE TEAM

FINANCIAL STATEMENTS

ANALYSIS OF THE
FINANCIAL STATEMENTS

MATERIAL EVENTS

CONSOLIDATED FINANCIAL
STATEMENTS AT
31.12.2019 y 2018

GRI

VERIFICATION LETTER

ACKNOWLEDGMENTS

The Comany is subject to various
economic, political, social and
competitive conditions. Any of the
following risks, if they materialize,
could materially and adversely affect
our business, results of operations,
prospects and financial condition.

RISKS RELATING TO OUR COMPANY

We rely heavily on our relationship with The Coca-Cola
Company, which has substantial influence over our business
and operations; and changes in this relationship may
adversely affect our business.

The Coca-Cola Company has substantial influence on the
conduct of our business. The interests of The Coca-Cola
Company may be different from the interests of our other
shareholders, which may result in us taking actions contrary
to the interests of our other shareholders. 68% and 70% of our
net sales for 2018 and 2019, respectively, were derived from
the distribution of soft drinks under The Coca-Cola Company
trademarks and an additional 22% and 23% of our net sales for
2018 and 2019, respectively, were derived from the distribution
of other beverages also bearing trademarks owned by The
Coca-Cola Company. In addition, The Coca-Cola Company
currently owns, directly or through its subsidiaries, 14.65% of
our Series A shares (representing 7.3% of our total shares) and
benefits from certain rights under a shareholders’ agreement.
We produce, market and distribute Coca-Cola products
through standard bottler agreements between our bottler
subsidiaries and The Coca-Cola Company. The Coca-Cola
Company has the ability to exert a substantial influence on
the business of the Company through its rights under the
bottler agreements. According to the bottler agreements, The
Coca-Cola Company unilaterally sets the prices for Coca-Cola
concentrate that they sell to us. The Coca-Cola Company may
in the future increase the price we pay for the concentrate,
increasing our costs. The Coca-Cola Company also monitors
our prices and has the right to review and approve our
marketing, operating and advertising plans. These factors may
impact our profit margins, which could adversely affect our net
income and results of operations.

Our marketing campaigns for Coca-Cola products are designed and
controlled by The Coca-Cola Company. The Coca-Cola Company also
makes significant contributions to our marketing expenses, although it is
not required to contribute a particular amount. Accordingly, The Coca-
Cola Company may discontinue or reduce such contribution at any time.
Pursuant to the bottler agreements, we are required to submit a business
plan to The Coca-Cola Company for prior approval on a yearly basis. In
accordance with our bottler agreements, The Coca-Cola Company may,
among other things, require that we demonstrate the financial ability
to meet our business plan, and if we are not able to demonstrate our
financial capacity, The Coca-Cola Company may terminate our rights to
produce, market and distribute Coca-Cola soft drinks or other Coca-Cola
beverages in territories where we have such approval. Under these bottler
agreements, we are prohibited from producing, bottling, distributing or
selling any products that could be substituted for, be confused with or be
considered an imitation of soft drinks or other beverages and products
under the trademarks of The Coca-Cola Company.

We depend on The Coca-Cola Company to renew our bottler agreements,
which are subject to termination by The Coca-Cola Company in the event
we default or upon expiration of their respective terms. We currently are
party to four bottler agreements: one agreement for Chile, which expires in
2023, one agreement for Brazil, which expires in 2022, one agreement for
Argentina, which expires in 2022, and one agreement for Paraguay, which
expires in September 2020. We cannot provide any assurance that our
bottler agreements will be maintained or renewed upon their termination.
Even if they are renewed, we cannot provide any assurance that renewal
will be granted on the same terms as those currently in effect. Termination,
non-extension or non-renewal of any of our bottler agreements would
prevent us from selling Coca-Cola trademark beverages in the affected
territory, which would have a material adverse effect on our business,
financial condition and results of operation.

In addition, any acquisition we make of bottlers of Coca-Cola products
in other territories may require, among other things, the consent of The
Coca-Cola Company under bottler agreements to which such other
bottlers are subject. We cannot assure you that The Coca-Cola Company
will consent to any future geographic expansion of our Coca-Cola
beverage business.

We cannot assure you that our relationship with The Coca-Cola Company
will not deteriorate or otherwise undergo significant changes in the
future. If such changes do occur, our operations and financial results and
condition could be materially affected.

The beverage business environment is changing rapidly, including as
a result of increased health and environmental concerns, and if we do
not address evolving consumer product and shopping preferences, our
business could suffer.

The beverage business environment in our territories is dynamic and
constantly evolving rapidly as a result of, among other things, changes
in consumer preferences, including changes based on health and
nutrition considerations and obesity concerns, shifting consumer
preferences and needs; changes in consumer lifestyles; concerns
regarding location of origin or source of ingredients and raw materials,
and the environmental and sustainability impact of the product
manufacturing process; consumer shopping patterns that are changing
with the digital revolution; consumer emphasis on transparency related
to our products and packaging; and competitive product and pricing
pressures. While we have reduced the amounts of sugar in multiple
beverages across our portfolio and increased availability of low or
no-calorie soft drinks, if we are unable to successfully adapt in this
environment, our participation in the sales of beverages and financial
results in general would be negatively affected.

Increased concern about the health effects of sugar and other sweeteners
in beverages could result in changes to the beverage business.

Consumers, public health officials and government agencies in the
majority of our markets, are increasingly concerned with public health
consequences associated with obesity, particularly among young people.
Additionally, some researchers, health advocates and dietary guidelines
are encouraging consumers to reduce consumption of sugar-sweetened
beverages and beverages sweetened with nutritive or alternative
sweeteners. Increasing public concern about these issues, the possibility
of taxes on sugar-sweetened beverages or other sweeteners, additional
governmental regulations concerning the marketing, labeling, packaging
or sale of our beverages and any negative publicity resulting from actual
or threatened legal actions against beverage companies relating to the
marketing, labeling or sale of beverages may reduce demand for our
products or increase the cost, which could adversely affect our profitability.

Our business is highly competitive, including with respect to price
competition, which may adversely affect our net profits and margins.

The beverage business is highly competitive in each of the territories in
which we operate. We compete with bottlers of local and regional brands,
including low cost beverages and Pepsi products. This competition in
each of the regions where we operate is likely to continue, and we cannot
assure you that it will not intensify in the future, which could materially
and adversely affect our financial condition and results of operations.
If we do not continuously strengthen our capabilities in marketing and
innovation to maintain our brand loyalty and market share, our business
and results of operations could be negatively affected.

If our raw material costs increase, including as a result of U.S. dollar/local
currency exchange risk and price volatility, our profitability may be affected.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTIn addition to water, our most significant raw materials are (1) concentrate,
which we acquire from affiliates of The Coca-Cola Company, (2)
sweeteners and (3) packaging materials. Our most significant packaging
raw material costs arise from the purchase of resin and plastic preforms
to make plastic bottles and from the purchase of finished plastic bottles,
the prices of which are related to crude oil prices and global resin supply.
Prices for concentrate are determined by The Coca-Cola Company and
The Coca-Cola Company has unilaterally increased concentrate prices
in the past and may do so again in the future. We cannot assure you that
The Coca-Cola Company will not increase the price of the concentrate for
Coca-Cola trademark beverages or change the manner in which these
prices will be calculated in the future. The prices for our remaining raw
materials are driven by market prices and local availability, the imposition
of import duties and restrictions and fluctuations in exchange rates.
We may not be successful in negotiating or implementing measures to
mitigate the negative effect that increased raw material costs may have in
the pricing of our products or our results.

We purchase our raw materials from both domestic and international
suppliers, some of which must be approved by The Coca-Cola Company,
which may limit the number of suppliers available to us. Because
the prices of our main raw materials –except for concentrate– are
denominated in U.S. dollars, we are subject to local currency risk with
respect to each of our operations. If any of the Chilean peso, Brazilian real,
Argentine peso, or Paraguayan Guaraní were to depreciate significantly
against the U.S. dollar, the cost of certain raw materials in our respective
territories could rise significantly, which could have an adverse effect
on our financial condition and results of operations. We cannot assure
you that these currencies will not lose value against the U.S. dollar in the
future. Additionally, some raw material prices are subject to high volatility,
which could also have a material adverse effect on our profitability. The
supply or cost of specific raw materials could be adversely affected by
domestic or global price changes, strikes, weather conditions, taxes,
governmental controls or other factors. Any sustained interruption in the
supply of these raw materials or any significant increase in their price
could have a material adverse effect on our financial performance.

Instability in the supply of utility services and oil prices may adversely impact
our results of operations.

Our operations depend on a stable supply of utilities and fuel in the countries
where we operate. Electrical power outages could lead to increased energy
prices and possible service interruptions. We cannot assure you that in the
future we will not experience energy interruptions that could materially and
adversely affect our business. In addition, a significant increase in energy
prices would raise our costs, which could materially impact our results of
operations. Fluctuations in oil prices have adversely affected our cost of
energy and transportation in the regions where we operate, and we expect
that they will continue to do so in the future. We cannot assure you that fuel
prices will not increase in the future, and that such an increase would not
have a significant effect on our financial performance.

Water scarcity and poor water quality could adversely impact our
production costs and capacity.

Water is the main ingredient in substantially all of our products. It is also
a limited resource in many parts of the world, facing unprecedented
challenges from overexploitation, increasing pollution and poor
management. As demand for water continues to increase around the
world, and as the quality of available water deteriorates, we may incur
increasing production costs or face capacity constraints that could
adversely affect our profitability. We obtain water from various sources
in our territories, including springs, wells, rivers and municipal and state
water companies pursuant to concessions granted by governments
in our various territories. We also anticipate future discussions on new
regulations in Chile and other countries where we operate relating to
future ownership of water resources, including possible nationalization,
and stricter controls on water usage. Water scarcity or changes in
governmental regulations aimed at rationing water in the regions where
we operate could affect our water supply and therefore our business.

We cannot assure you that water will be available in sufficient quantities
to meet our future production needs or will prove sufficient to meet our
current water supply needs.

Significant additional labeling or warning requirements may inhibit
sales of our products.

The countries in which we operate may adopt significant advertising
restrictions as well as additional product labeling or warning
requirements relating to the chemical content or perceived adverse
health consequences of certain of our Coca-Cola products or other
products. The Chilean Congress passed Law No. 20,606 with respect to
labeling of certain consumer products, including soft drinks and bottled
juices and waters such as ours. The law became effective in June 2016
and its implementation has been carried out in stages, with labeling
requirements becoming progressively stricter in June 2018 and June
2019. Given the uncertainty surrounding the interpretation of the law,
we may occasionally be subject to costs and penalties associated with
non-compliance, which are difficult to predict. These requirements may
adversely affect sales of our products and our results of operations.

Our business may be adversely affected if we are unable to maintain
brand image and product quality.

Our beverage business is highly dependent on maintaining the reputation
of our products in the countries where we operate. If we fail to maintain
high standards for product quality, our reputation and ability to remain a
distributor of The Coca-Cola Company beverages in the countries where
we operate could be jeopardized. Negative publicity or incidents related
to our products may reduce their demand and could have a material
adverse effect on our financial performance. If any of our products is
defective or found to contain contaminants, or causes injury or illness,
we may be subject to legal claims filed by consumers, product recalls,
business interruptions and/or other liabilities.

We take significant precautions in order to minimize any risk of defects
or contamination in our products. These precautions include quality-
control programs for raw materials, the production process and our final
products. We also have established procedures to correct as soon as
practicable any problems that are detected. However, the precautions
and procedures we implement may not be sufficient to protect us from
potential incidents.

Trademark infringement could adversely impact our beverage business.

A significant portion of our sales derives from sales of beverages branded
with trademarks of The Coca-Cola Company, as well as other trademarks.
If other parties attempt to misappropriate trademarks we use, we may
be unable to protect these trademarks. Maintaining the reputation of
these brands is essential for the future success of our beverage business.
Misappropriation of trademarks we use, or challenges thereto, could have
a material adverse effect on our financial performance.

We may not be able to successfully implement our expansion strategies
or achieve the expected operational efficiencies or synergies from
potential acquisitions.

We have, and we may continue to, acquire businesses and pursue other
strategic transactions as part of our expansion strategies. We cannot
assure you that we will be successful in identifying opportunities and
consummating acquisitions and other strategic transactions on favorable
terms or at all. These types of transactions may involve additional risks to
our Company, including operating in geographic regions or with beverage
categories in which we have less or no operating history. Depending on the
size and timing of an acquisition or transaction, we may be required to raise
future financing to consummate the acquisition or transaction. Moreover,
even if we are able to consummate a transaction, acquisitions and other
strategic opportunities may involve significant risks and uncertainties.

Key elements to achieving the benefits and expected synergies of our
acquisitions are the integration of acquired businesses’ operations into
our own in a timely and effective manner and the retention of qualified
and experienced key personnel. We may incur in unforeseen liabilities
in connection with acquiring, taking control of, or managing beverage
operations and other businesses and may encounter difficulties and

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTunforeseen or additional costs in restructuring and integrating them
into our operating structure. These difficulties include distraction of
management from current operations, difficulties in integration with
our existing business and technology, greater than expected liabilities
and expenses, inadequate return on capital, and unidentified issues not
discovered in our pre-acquisition investigations and evaluations of those
strategies and acquisitions. We cannot assure you that these efforts
will be successful or completed as expected by us, and our business,
financial condition, results of operations could be adversely affected if we
are unable to do so.

Weather conditions or natural disasters may adversely affect our business.

Lower temperatures and higher rainfall may negatively impact consumer
patterns, which may result in lower per capita consumption of our
beverages. Additionally, adverse weather conditions or natural disasters
may affect road infrastructure in the countries in which we operate
and limit our ability to sell and distribute our products. For example, in
February of 2010 our business experienced a temporary interruption in
our production as a result of the 8.8 magnitude earthquake in central
Chile; and in March 2015, flash floods in the north of Chile interrupted our
production and distribution in such territory.

Our business is subject to risks arising from epidemic diseases, such as the
recent outbreak of the COVID-19 illness

The recent outbreak of the Coronavirus Disease 2019, or COVID-19,
which has been declared by the World Health Organization to be a
“public health emergency of international concern”, has spread across
the globe and is impacting worldwide economic activity. A public health
epidemic, including COVID-19, poses the risk that we or our employees,
contractors, suppliers, and other partners may be prevented from
conducting business activities for an indefinite period of time, including
due to shutdowns that may be requested or mandated by governmental
authorities. While it is not possible at this time to estimate the impact that
COVID-19 could have on our business, the continued spread of COVID-19
and the measures taken by the governments of countries affected
could disrupt the supply chain and the manufacture or shipment of our
products and adversely impact our business, financial condition or results
of operations. The COVID-19 outbreak and mitigation measures may also
have an adverse impact on global economic conditions which could have
an adverse effect on our business and financial condition. The extent
to which the COVID-19 outbreak impacts our results will depend on
future developments that are highly uncertain and cannot be predicted,
including new information that may emerge concerning the severity of
the virus and the actions to contain its impact.

Our insurance coverage may not adequately cover losses resulting from
the risks for which we are insured.

We maintain insurance for our principal facilities and other assets. Our
insurance coverage protects us in the event we suffer certain losses
resulting from fire, terrorism and natural disasters, such as earthquake
and floods, or from business interruptions caused by such events.
In addition, we maintain other insurance policies for general liability
and product contamination. We cannot assure you that our insurance
coverage will be sufficient or will provide adequate compensation for
losses that we may incur.

If we are unable to protect our information systems against data
corruption, cyber-based attacks or network security breaches, our
operations could be disrupted.

We are increasingly dependent on information technology networks
and systems, including over the Internet, to process, transmit and store
electronic information. In particular, we depend on our information
technology infrastructure for digital marketing activities and electronic
communications among us and our clients, suppliers and also among
our subsidiaries and facilities. Security breaches or infrastructure flaws
can create system disruptions, shutdowns or unauthorized disclosure
of confidential information. If we are unable to prevent such breaches
or flaws, our operations could be disrupted, or we may suffer financial
damage or loss because of lost or misappropriated information.

Cyber threats are rapidly evolving and the means for obtaining access to
information in digital and other storage media are becoming increasingly
sophisticated. Cyber threats and cyber-attackers can be sponsored by
countries or sophisticated criminal organizations or be the work of single
“hackers” or small groups of “hackers”.

We are in the process of analyzing the adequacy of our information
technology systems and installing new and upgrading existing
information technology systems in order to achieve industry standard
levels of protection for the Company’s data and business processes
against risk of data security breach and cyber-attack. We are working
to strengthen the integrity of our data network and expect this process
to continue over the coming years. Insider or employee cyber and
security threats are increasingly a concern for all companies, including
ours. Nevertheless, as cyber threats evolve, change and become more
difficult to detect and successfully defend against, one or more cyber-
attacks might defeat our or a third-party service provider’s security
measures in the future and obtain the personal information of customers
or employees. Employee error or other irregularities may also defeat
of security measures and result in a breach of information systems.
Moreover, hardware, software or applications we use may have inherent
defects of design, manufacture or operations or could be inadvertently or
intentionally implemented or used in a manner that could compromise
information security. A security breach and loss of information may not be

discovered for a significant period of time after it occurs. While we have
no knowledge of a material security breach to date, any compromise of
data security could result in a violation of applicable privacy and other
laws or standards, the loss of valuable business data, or a disruption of
our business. A security breach involving the misappropriation, loss or
other unauthorized disclosure of sensitive or confidential information
could give rise to unwanted media attention, materially damage our
customer relationships and reputation, and result in fines or liabilities,
which may not be covered by our insurance policies.

Perception of risk in emerging economies may impede our access to
international capital markets, hinder our ability to finance our operations
and adversely affect our financial performance.

International investors, as a general rule, consider the countries in which
we operate to be emerging market economies. Consequently, economic
conditions and the market for securities of emerging market countries
influence investors’ perceptions of Chile, Brazil, Argentina and Paraguay
and their evaluation of securities of companies located in these countries.

During periods of heightened investor concern regarding emerging
market economies, in particular in recent years Argentina, the countries
where we operate may experience significant outflows of U.S. dollars.

In addition, during these periods companies based in the countries where
we operate have faced higher costs for raising funds, both domestically
and abroad, as well as limited access to international capital markets,
which have negatively affected the prices of the aforementioned
countries’ securities. Although economic conditions are different in each
of the emerging-market countries, investors’ reactions to developments
in one of these countries may affect the securities of issuers in the others.
For example, adverse developments in emerging market countries may
lead to decreased investor interest in the securities of Chilean companies.

Our business may be adversely affected if we fail to renew collective
bargaining labor agreements on satisfactory terms or experience strikes or
other labor unrest.

A substantial portion of our employees is covered by collective bargaining
labor agreements. These agreements generally expire every year. Our
inability to renegotiate these agreements on satisfactory terms could
cause work stoppages and interruptions, which may adversely impact our
operations. Changes to the terms and conditions of existing agreements
could also increase our costs or otherwise have an adverse effect on our
operational efficiency. We experience periodic strikes and other forms of
labor unrest through the ordinary course of business. We cannot assure
you labor interruptions or other labor unrest will not occur in the future. If
we experience strikes, work stoppages or other forms of labor unrest at any
of our production facilities, our ability to supply beverages to customers
could be impaired, which would reduce our net operating revenues and
could expose us to customer claims.

We are subject to local regulations in each of the territories in which
we operate. The main areas of regulation are water, environment, labor,
taxation, health, consumer protection, advertising and antitrust. Regulation
could affect our ability to set prices for our products. The adoption of new
laws or regulations or a stricter interpretation or enforcement thereof in
the countries in which we operate may increase our operating costs or
impose restrictions on our operations which, in turn, may adversely affect
our financial condition, business and results. Further changes in current
regulations may result in increased compliance costs, which may have an
adverse effect on our results or financial condition.

In the past, voluntary price restraints or statutory price controls have been
imposed in several of the countries in which we operate. Currently there
are no restraints or price controls applicable to our products in any of the
territories in which we operate, except with respect to a limited number of
products in Argentina. However, we cannot assure you that government
authorities in any country in which we operate will not impose statutory price
controls, or that we will not be requested to impose voluntary price restraints
in the future. The potential imposition of restraints or price controls in the
future may have an adverse effect on our results and financial condition.

Our business is subject to increasing environmental regulation, which
may result in increases in our operating costs or adverse changes in
consumer demand.

We are subject to various environmental laws and regulations in the countries
where we operate, which apply to our products, containers and activities.
If these environmental laws and regulations are strengthened or newly
established in jurisdictions in which we conduct our businesses, we may be
required to incur considerable expenses in order to comply with such laws and
regulations. We are also subject to uncertainty regarding the interpretation of
the environmental laws and regulations of the countries in which we operate,
and any ambiguity or uncertainty regarding the interpretation or application
of regulations can result in increased production costs or penalties for non-
compliance, which are difficult to predict. Such increased expenses may have
a material adverse effect on our results of operations and financial position.
To the extent we determine that it is not financially sound for us to continue to
comply with such laws and regulations, we may have to curtail or discontinue
our activities in the affected business areas.

In addition, concerns over the environmental impact of plastic may
reduce the consumption of our products sold in plastic bottles or result
in additional taxes that could adversely affect consumer demand. In 2019
alone, three bills seeking to restrict the production and sale of single-
use plastics in Chile were introduced for consideration by the Chilean
Congress. Currently, we cannot predict whether these laws will pass.
While the legislative process is still in its early stages, if enacted, these
bills may have an adverse effect on our results of operations.

If we were to become subject to adverse judgments or determinations in
legal proceedings to which we are, or may become, a party, our future
profitability could suffer through significant liabilities, a reduction of sales,
increased costs or damage to our reputation.

In the ordinary course of our business, we become involved in various
claims, lawsuits, investigations and governmental and administrative
proceedings, some of which are or may be significant. We are currently a
party to certain legal proceedings. Adverse judgments or determinations
in one or more of these proceedings could require us to change the
way we do business or use substantial resources in adhering to the
settlements. These could have a material adverse effect on our business,
including, among other consequences, by significantly increasing the
costs required to operate our business. Ineffective communications
during or after these proceedings could amplify the negative effects, if
any, of these proceedings on our reputation and may result in a negative
market impact on the price of our securities. We evaluate these litigation
claims and legal proceedings to assess the likelihood of unfavorable
outcomes and to estimate, if possible, the amount of potential losses.
Based on these assessments and estimates, we establish reserves
and/or disclose the relevant litigation claims or legal proceedings,
as appropriate. These assessments and estimates are based on the
information available to management at the time and involve a significant
amount of management judgment. Actual outcomes or losses may differ
materially from our current assessments and estimates.

In addition, during recent years, the Company has been subject to
judicial proceedings and administrative investigations associated
with alleged monopolistic practices. In December 2019, the Chilean
Supreme Court overturned a dismissal by the Chilean Antitrust Court
of an antitrust complaint filed against us and remanded the case
to the Antitrust Court for a full decision on the merits. We believe
the likelihood of loss remains low. Although these proceedings
and investigations have not resulted in any convictions or penalties
for the Company, we cannot assure that this will not occur in the
future. Antitrust complaints may be submitted in Chile without any
prior admissibility test and, as a result, we cannot predict whether
unsubstantiated claims against us will be filed. Possible sanctions in
matters of competition could have an adverse effect on our business.

The countries in which we operate may adopt new tax laws or modify
existing laws to increase taxes applicable to our business or reduce
existing tax incentives.

We cannot assure you that any governmental authority in any country
where we operate will not impose new taxes or increase the taxes on our
products in the future. The imposition of new taxes, the increases in taxes
or the reduction of tax incentives may have a material adverse effect on
our business, financial condition and results.

For example, in Chile on September 29, 2014 Law No. 20,780 was enacted
which was subsequently amended by Law No. 20,899, on February 8,
2016 (the “Tax Reform”). The Tax Reform introduced a new tax regime for
corporations, the Semi-Integrated Regime established in article 14(B) of the
Chilean Income Law, increasing the tax burden, among other changes.

In Argentina in December 2017, a tax reform was passed, which came into
force in 2018. The most important consequence for the Company is the
reduction in the previous income tax rate from 35% to 30% for the fiscal
years 2018 and 2019 and from 2020 onwards the rate decreases to 25%.
However, this reduction is only available when profits are reinvested. In
addition, a tax of 7% must be paid at the time of distribution of dividends for
the first two years and 13% from 2020 onwards. However, as of the date of
this annual report, the Argentine government had suspended the corporate
income tax rate decrease previously contemplated for fiscal year 2020. As
a result, the corporate income tax rate will remain at 30% and the income
tax rate on dividends will remain at 7%. In relation to gross income tax, in
2019 there was a 0.5% average reduction in the gross income tax rate for
industry activity in provinces of Argentina where Andina has no productive
plants, while the 0.5% reduction planned for 2020 has been suspended.
Municipal rates in 2019 and as far as of the date of this annual report, remain
unchanged, with few insignificant exceptions.

Andina enjoys the benefit of a zero-tax rate on gross income in the
province of Córdoba, Argentina, until the year 2021 under an industrial
promotion. For further information, see also “Risks Relating to Brazil
– Changes in tax laws may increase our tax burden and reduce tax
incentives, and as a result negatively affect our profitability.”

Brazilian tax proceedings may result in a significant tax liability.

Our subsidiary Rio de Janeiro Refrescos Ltda. is party in several tax
proceedings in which the Brazilian federal tax authorities argue the
alleged existence of liabilities associated with value added tax on
industrialized products for an approximate total amount of R$ 2 billion
(equivalent to approximately US$488 million). These proceedings are
at different administrative as well as judicial procedural stages. We
disagree with the Brazilian tax authorities’ position and believe that Rio
de Janeiro Refrescos Ltda. is entitled to claim Imposto sobre Productos
Industrializados (IPI) tax credits in connection with its purchases of
certain exempt raw materials from suppliers located in the Manaus
Free Trade Zone. We believe that the Brazilian tax authorities’ claims
are without merit. Our external Brazilian counsel has advised us that it

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTother individuals of similar experience and skill. It is not certain that we will
be able to attract or retain key employees and successfully manage them,
which could disrupt our business and have an unfavorable material effect
on our financial position, income from operations and competitive position.

A devaluation of the currencies of the countries where we have our
operations, with regard to the Chilean peso, can negatively affect the
results reported by the Company in Chilean pesos.

The Company reports its results in Chilean pesos, while a large part
of its revenues and Adjusted EBITDA comes from countries that use
other currencies. During the year ended December 31, 2018 and the
year ended December 31, 2019, 32% and 35% of the Company’s net
sales were generated in Brazil, 25% and 22% in Argentina, and 9% and
9% in Paraguay, while 33% and 34% of Adjusted EBITDA was generated
in Brazil, 19% and 16% in Argentina, and 12% and 12% in Paraguay,
respectively. If the currencies of these countries depreciate against
the Chilean peso, this would have a negative effect on the results and
financial condition of the Company, which are reported in Chilean pesos.

The imposition of exchange controls could restrict the entry and exit
of funds to and from the countries in which we operate, which could
significantly limit our financial capacity.

The imposition of exchange controls in the countries in which we operate
could affect our ability to repatriate profits, which could significantly limit
our ability to pay dividends to our shareholders. Additionally, it may limit
the ability of our foreign subsidiaries to finance payments of U.S. dollar
denominated liabilities required by foreign creditors.

Negative information on social media and similar platforms could
adversely affect our reputation.

Negative or inaccurate information concerning us or The Coca-Cola
trademarks may be posted on social media and similar platforms of
Internet-based communications at any time. This information may affect our
reputation, and adversely impact our business and results of operations.

believes that Rio de Janeiro Refrescos Ltda.’s likelihood of loss in most of
these proceedings is classified as possible to remote (i.e., approximately
30%). Despite the foregoing, the outcome of these claims is subject to
uncertainty, and it is difficult to predict their final resolution or any other
negative repercussions from this dispute with the Brazilian tax authorities
to The Coca-Cola Company or its bottling companies in Brazil, including
our Brazilian subsidiaries.

The termination of the Heineken product distribution agreement in Brazil
and our potential inability to secure a substitute supplier could adversely
affect our profitability.

In July 2017 Heineken Brazil unilaterally notified us of the termination
of the agreement by virtue of which Rio de Janeiro Refrescos Ltda.
commercializes and distributes Heineken-branded beers in Brazil. Rio de
Janeiro Refrescos Ltda. understood that the expiration of the agreement
was scheduled for 2022 and we submitted the dispute to arbitration. In
October 2019, a non-appealable decision was rendered in our favor.

We continue distributing Heineken-branded products in Brazil and
expect to do so until the termination of the agreement in March 2022.
However, if following the termination of the agreement we are unable
to secure a substitute supplier of beer in Brazil, our business and results
of operations may be adversely affected. Heineken-branded products
represent 21.7% of our consolidated net sales in Brazil during 2019.

If we do not successfully comply with laws and regulations designed to
combat corruption in countries in which we sell our products, we could
become subject to fines, penalties or other regulatory sanctions, and our
sales and profitability could suffer.

Although we are committed to conducting business in a legal and ethical
manner in compliance with local and international statutory requirements
and standards applicable to our business, there is a risk that our
employees or representatives may take actions that violate applicable
laws and regulations that generally prohibit the making of improper
payments to foreign government officials for the purpose of obtaining or
keeping business, including laws relating to the 1997 OECD Convention
on Combating Bribery of Foreign Public Officials in International Business
Transactions or the U.S. Foreign Corrupt Practices Act.

We may not be able to recruit or retain key personnel.

The implementation of our strategic business plans could be undermined
by a failure to recruit or retain key personnel or the unexpected loss of
senior employees, including in acquired companies. We face various
challenges inherent in the management of a large number of employees
over diverse geographical regions. Key employees may choose to leave
their employment for a variety of reasons, including reasons beyond
our control. The impact of the departure of key employees cannot be
determined and may depend on, among other things, our ability to recruit

Our growth and profitability depend
to a significant degree on economic
conditions in Chile.

Our operations in Chile represented 39.4% and 37.7% of our assets as
of December 31, 2018 and December 31, 2019, respectively, and 34.1%
and 34.2% of our net sales for 2018 and 2019, respectively. Accordingly,
our business, financial condition, and results of operations depend, to
a considerable extent, upon economic conditions in Chile.

International and local economic conditions may adversely affect
the Chilean economy, and unfavorable general economic conditions
could negatively affect the affordability of and demand for some of our
products in the country. In difficult economic conditions, consumers
may seek to reduce discretionary spending by forgoing purchases of
our products or buying low cost brands offered by competitors. Any of
these events could have an adverse effect on our business, financial
condition and results of operations.

According to data published by the Central Bank, the Chilean
economy grew at a rate of 1.8% in 2014, 2.3% in 2015, 1.3% in 2016,
1.5% in 2017, 4.0% in 2018 and 1.1% in 2019. Our financial condition and
results of operations could also be adversely affected by changes over
which we have no control, including, without limitation:

• political or economic developments in or affecting Chile;

•

the economic or other policies of the Chilean government, which
has a substantial influence over many aspects of the private sector;

•

tax rates and policies;

• regulatory changes or administrative practices of Chilean

authorities;

•

inflation and governmental policies to combat inflation;

• currency exchange movements; and

• global and regional economic conditions.

We cannot assure you that the future development of the Chilean
economy will not impair our ability to successfully carry out our
business plan or materially adversely affect our business, financial
condition or results of operations.

Civil unrest in Chile could have a material adverse effect on general
economic conditions in Chile and our business, results of operations
and financial condition.

Beginning on October 18, 2019, widespread protests have taken place
in Chile. The protests began over the government’s announcement of
an increase in subway fares in Santiago and quickly grew into broader
unrest over economic inequality, including claims about transportation
costs, funding for education, health care costs and pension amounts,
among others. Demonstrations spread across the country and resulted
in violent, and sometimes deadly acts, causing significant damage
to subway stations in Santiago, shops, houses and other public and
private property. In March 2020, protests and civil unrest stopped as a
consequence of the COVID-19 outbreak, but civil unrest could continue
after COVID-19 outbreak is left behind.

In response, the Chilean government imposed a state of emergency and
nighttime curfews in Santiago and other cities, for a limited period. Also,
the Chilean government announced a reshuffling of the cabinet and a
series of social and economic reforms to tackle issues at the heart of the
unrest, including cancellation of the increased subway fares, increases
in government-subsidized pension, a guaranteed minimum monthly
income, affordable medical insurance, lowering the price of medicine and
a cancellation of energy price hikes. Chile’s Congress also reached an
agreement to reform the country’s constitution. Following an agreement
between Chilean political parties, a nationwide plebiscite will take place
to ask Chileans if they want a new constitution and, if so, how the new
constitution should be drafted.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTWe cannot predict the extent to which the Chilean economy will be
affected by the civil unrest, nor can we predict if government policies
enacted as a response to the civil unrest will have a negative impact
on the Chilean economy. Changes in government policies may include
higher tax rates and other changes in laws and policies that could result in
a less favorable environment for private businesses. Despite looting and
vandalism at our distribution center in Puente Alto, our operations have
not been affected in any material respect to date. We cannot assure you
that looting and vandalism will not continue after COVID-19 outbreak is
left behind, affecting our production and logistics infrastructure. Also, if
the protests continue or worsen, future government policies to preempt,
or in response to unrest, may materially affect the Chilean economy, and
thereby our business, financial condition and results of operation.

The Chilean peso is subject to depreciation and volatility, which could
adversely affect our business.

The Chilean peso has been subject to large nominal devaluations in
the past and may be subject to significant fluctuations in the future. The
main drivers of exchange rate volatility in past years were the significant
fluctuations of commodity prices, as well as general uncertainty and
trade imbalances in the global markets. As of December 31, of each
year, the Chilean peso depreciated 17% during 2015, appreciated 6%
and 8% during 2016 and 2017, respectively, and depreciated 13% and
8% during 2018 and 2019, respectively, compared with the closing
exchange rate for the U.S. dollar in nominal terms.

A significant part of the raw materials used by the Company are in U.S.
dollars, therefore a devaluation of the Chilean peso against the U.S.
dollar can affect our costs and margins in a significant way.

In addition, as we report our results of operations in Chilean pesos,
fluctuations in the value of the Chilean peso versus the Brazilian real,
the Argentine peso and the Paraguayan Guaraní could also impact our
reported performance in Chilean pesos.

Inflation in Chile and government measures to curb inflation may
disrupt our business and have an adverse effect on our financial
condition and results of operations.

Although Chilean inflation has decreased in recent years, Chile has experienced
significant levels of inflation in the past. The rates of inflation in Chile, which in, 2015,
2016, 2017, 2018 and 2019 were, 4.4%, 2.7%, 2.3%, 2.6% and 3.0%, respectively, as
measured by changes in the consumer price index and as reported by the National
Statistics Institute (Instituto Nacional de Estadísticas), could adversely affect the
Chilean economy and have a material adverse effect on our financial condition and
results of operations if we are unable to increase our prices in line with inflation. We
cannot assure you that Chilean inflation will not increase in the future.

The measures taken by the Central Bank in the past to control inflation have often
included maintaining a conservative monetary policy with high interest rates, thereby

restricting the availability of credit and economic growth. Inflation, measures to
combat inflation, and public speculation about possible additional actions by the
government have also contributed in the past to economic uncertainty in Chile and
to heightened volatility in its securities markets. Periods of higher inflation may also
slow the growth rate of the Chilean economy, which could lead to reduced demand
for our products and decreased sales. Inflation is also likely to increase some of our
costs and expenses, given that the majority of our supply contracts in Chile are UF-
denominated or are indexed to the Chilean consumer price index. We cannot assure
you that, under competitive pressure, we will be able to carry out price increases,
which could adversely impact our operating margins and operating income.
Additionally, an important part of our financial debt in Chile is UF-denominated, and
therefore the value of the debt reflects any increase of the inflation in Chile.

A severe earthquake or tsunami in Chile could adversely affect the
Chilean economy and our network infrastructure.

Chile lies on the Nazca tectonic plate, one of the world’s most seismically
active regions. Chile has been adversely affected by powerful earthquakes
in the past, including an 8.0 magnitude earthquake that struck Santiago
in 1985 and a 9.5 magnitude earthquake in 1960 which is the largest
earthquake ever recorded.

In February 2010, an 8.8 magnitude earthquake struck the central and
south-central regions of Chile. The quake epicenter was located 200
miles southwest of Santiago and 70 miles north of Concepción, Chile’s
second largest city. The regions of Bío Bío and Maule were the most
severely affected regions, especially the coastal area, which, shortly after
the earthquake, was hit by a tsunami that significantly damaged cities and
port facilities. The Valparaíso and Metropolitan regions were also severely
affected. At least 1.5 million homes were damaged, and more than 500
people were killed. As a result of these developments, economic activity in
Chile was adversely affected in March 2010. Legislation was passed to raise
the corporate income tax rate in order to pay for reconstruction following
the earthquake and tsunami, which had an adverse effect on our results.

RISKS RELATING TO BRAZIL

Our business operations in Brazil
are dependent on economic
conditions in Brazil.

Our operations in Brazil represented 36.8% and 40.1% of our assets as of
December 31, 2018 and December 31, 2019, respectively, and 32.3% and
34.8% of our net sales for 2018 and 2019, respectively. Because demand
for soft drinks and beverage products is usually correlated to economic
conditions prevailing in the relevant local market, developments in
economic conditions in Brazil, and measures taken by the Brazilian
government, have had and are expected to continue to have an impact
on our business, results of operations and financial condition.

The Brazilian economy has historically been characterized by unstable
economic cycles and interventions by the Brazilian government.
Brazilian GDP grew by 0.5% in 2014, contracted by 3.5% and 3.3% in 2015
and 2016, respectively, grew by 1.1%, 1.3% and 1.2% in 2017, 2018 and
2019, respectively, according to the Brazilian Institute of Geography and
Statistics (Instituto Brasileiro de Geografia e Estatistica). The Brazilian
government has often changed monetary, taxation and other policies
to influence the course of Brazil’s economy. Our business, results of
operations and financial condition may be adversely affected by, among
others, the following factors:

• expansion or contraction of the Brazilian economy;

• exchange rate fluctuations;

• high inflation rates;

• changes in fiscal or tax policies;

• changes in monetary policy, including an increase in interest rates;

• exchange control policies and restrictions on remittances abroad;

A severe earthquake and/or tsunami in Chile in the future could have
an adverse impact on the Chilean economy and on our business,
financial condition and results of operation, including our production
and logistics network.

•

investment levels;

•

liquidity of domestic capital and credit markets;

• energy or water shortages or rationalization;

• changes in environmental regulation;

• social and political instability; and

• other developments in or affecting Brazil.

The Brazilian economy is also affected by international economic
and market conditions in general, especially economic and market
conditions in the United States, the European Union and China.

Historically volatile political, social and economic conditions in Brazil
could adversely affect our business and results of operations.

Brazil’s political environment has historically influenced, and continues
to influence, the performance of the country’s economy. Political crisis
have affected and continue to affect the confidence of investors and the
general public, which have historically resulted in economic deceleration.

Economic instability in Brazil has contributed to a decline in market
confidence in the Brazilian economy as well as to a deteriorating
political environment. In addition, various ongoing investigations into
allegations of money laundering and corruption being conducted by
the Office of the Brazilian Federal Prosecutor, including the largest
such investigation, known as “Operação Lava Jato,” have negatively
impacted the Brazilian economy and political environment. The
potential outcome of these investigations is uncertain, but they
have already had an adverse impact on the image and reputation
of the implicated companies, and on the general market perception
of the Brazilian economy. We cannot predict whether the ongoing
investigations will result in further political and economic instability, or
if new allegations against government officials and/or executives of
private companies will arise in the future.

Jair Bolsonaro was elected as the President of Brazil in October
2018. His election led to a market recovery and the recovery of the
value of the local stock market. However, we cannot assure that this
confidence in the market will remain, nor that the policies promoted by
the new government will be beneficial to the economy or our business.
A failure by the Brazilian government to implement necessary reforms
may result in diminished confidence in the Brazilian government’s
fiscal condition and budget, which could result in downgrades of
Brazil’s sovereign foreign credit rating by credit rating agencies,
negatively impact Brazil’s economy, lead to further depreciation of the
real and an increase in inflation and interest rates, adversely affecting
our business, financial condition and results of operations.

Inflation and the Brazilian government’s measures to curb inflation,
including by increasing interest rates, may contribute to economic
uncertainty in Brazil.

Brazil has historically experienced high rates of inflation, including
periods of hyperinflation before 1995. Several measures have been
implemented by the Brazilian government in an effort to curb rising
inflation, but we cannot predict whether these policies will be
effective. According to the National Consumer Price Index (Índice
Nacional de Preços ao Consumidor Amplo, or “IPCA”), published by
the Brazilian Institute of Geography and Statistics (Instituto Brasileiro
de Geografia e Estatística, “IBGE”), Brazilian annual rates of inflation for
consumer prices were 6.4% in 2014, 10.7% in 2015, 6.3% in 2016, 2.9% in
2017, 3.7% in 2018 and 4.1% in 2019.

Inflationary pressures may result in governmental interventions in the
economy, including policies that could adversely affect the general
performance of the Brazilian economy, which, in turn, could adversely
affect our business operations in Brazil. Inflation may also increase
our costs and expenses, and we may be unable to transfer such
costs to our customers, reducing our profit margins and net income.
In addition, inflation could also affect us indirectly, as our customers
may also be affected and have their financial capacity reduced. Any
decrease in our net sales or net income, as well as any reduction in
our financial performance, may also result in a reduction in our net
operating margin. Our customers and suppliers may be affected by
high inflation rates and such effects on our customers and suppliers
may adversely affect us.

The Brazilian real is subject to depreciation and volatility, which could
adversely affect our business, financial condition and results of operations.

The Brazilian currency has been subject to significant fluctuations over
the past three decades. Throughout this period, the Brazilian government
has implemented various economic plans and exchange rate policies,
including sudden devaluations, periodic mini devaluations (during
which the frequency of adjustments has ranged from daily to monthly),
exchange controls, dual exchange market and floating exchange rate
systems. Although long-term devaluation of the real is generally related
to the rate of inflation in Brazil, the devaluation of the real over shorter
periods has resulted in significant fluctuations in the exchange rate
between the Brazilian currency, the U.S. dollar and other currencies. As of
December 31 of each year, the Brazilian real depreciated 47% during 2015,
appreciated 17% during 2016 and depreciated 2%, 17%, and 4% during
2017, 2018 and 2019, respectively, compared with the closing exchange
rate for the U.S. dollar in nominal terms.

A significant part of the raw materials we use in Brazil are priced in U.S.
dollars, so a depreciation of the Brazilian real against the U.S. dollar has
a significant adverse effect in our costs and margins.

Any depreciation of the real against the U.S. dollar could create
additional inflationary pressure, which might result in the Brazilian
government adopting restrictive policies to combat inflation. This could
lead to increases in interest rates, which might negatively affect the
Brazilian economy as a whole, as well as our results of operations, in
addition to restricting our access to international financial markets. It
also reduces the U.S. dollar value of our revenues. On the other hand,
future appreciation of the real against the U.S. dollar might result in
the deterioration of Brazil’s current and capital accounts, as well as a
weakening of Brazilian GDP growth derived from exports. We cannot
assure you that the real will not again fluctuate significantly against the
U.S. dollar in the future and, as a result, have an adverse effect on our
business, results of operations and financial condition.

Changes in tax laws may increase our tax burden and reduce tax
incentives and, as a result, negatively affect our profitability.

The Brazilian government regularly implements changes to tax
regimes that may increase our and our customers’ tax burdens. These
changes include modifications in the tax rates and, on occasion,
enactment of temporary taxes, the proceeds of which are earmarked
for designated governmental purposes. In the past, the Brazilian
government has presented certain tax reform proposals, which
have been mainly designed to simplify the Brazilian tax system,
to avoid internal disputes within and between the Brazilian states
and municipalities, and to redistribute tax revenues. The tax reform
proposals provide for changes in the rules governing the federal Social
Integration Program (Programa de Integração Social, or “PIS”) and
Social Security Contribution (Contribuição para o Financiamento da
Seguridade Social, or “COFINS”) taxes, the state Tax on the Circulation
of Goods and Services (Imposto Sobre a Circulação de Mercadorias e
Serviços, or “ICMS”) and some other taxes, such as increases in payroll
taxes. These proposals may not be approved and passed into law.
The effects of these proposed tax reform measures and any other
changes that result from enactment of additional tax reforms have not
been, and cannot be, quantified. However, some of these measures,
if enacted, may result in increases in our overall tax burden, which
could negatively affect our overall financial performance. In addition,
the Brazilian beverage industry experiences unfair competition arising
from tax evasion, which is primarily due to the high level of taxes
on beverage products in Brazil. An increase in taxes may lead to an
increase in tax evasion, which could result in unfair pricing practices in
the industry.

Since 2018, the Brazilian government has gradually altered the
value-added tax on industrialized products (Imposto sobre Produtos
Industrializados or “IPI”) applicable to soft drinks concentrate. This
measure has negatively affected our operations, since it significantly
reduced the tax credit derived from the purchases of concentrate
from the Manaus Free Trade Zone that currently benefits Rio de
Janeiro Refrescos, and the soft drinks industry as a whole. Such

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTalterations have been implemented gradually, as follows: (1) 20% IPI
rate until September 2018; (2) 4% IPI rate from October to December
2018; (3) 12% IPI rate in the first half of 2019; (4) 8% IPI rate from July 1,
2019 to September 30, 2019; (5) 10% IPI rate from October 1, 2019 to
December 31, 2019; (6) 4% IPI rate from January 1, 2020 to May 31, 2020;
(7) 8% IPI rate from June 1, 2020 to November 30, 2020; and (8) 4% IPI
rate from December 1, 2020 onwards. Any further reductions of the IPI
may adversely affect our financial condition and results of operations.

Given the high tax burden in Brazil, federal and state authorities of that
country offer a series of significant tax incentives to certain territories
and/or localities in order to attract investment, particularly for
manufacturers and other companies operating and investing in Brazil.
Coca-Cola Andina Brazil has received some of these tax incentives
and its results have been positively affected by these incentives.
Although these incentives have generally been renewed in the past,
we cannot assure that they will continue to be renewed in the future.
Current tax incentives from the State of Rio de Janeiro in connection
with the development and construction of the Duque de Caxias
production plant are due to expire in October 2020 and may not be
renewed. Termination, non-extension or non-renewal of tax incentives
could have a material adverse effect on our business, financial
condition and results of operation.

RISKS RELATING TO ARGENTINA

Our business operations in Argentina
are dependent on economic conditions
in Argentina

Our operations in Argentina represented 10.9% and 10.1% of our assets
as of December 31, 2018 and December 31, 2019, respectively, and
24.7% and 22.2% of our net sales for 2018 and 2019, respectively.
Developments in economic, political, regulatory and social conditions
in Argentina, and measures taken by the Argentine government, have
had and are expected to continue to have an impact on our business,
results of operations and financial condition.

Historically, the Argentine economy has experienced periods of high
levels of instability and volatility, low or negative economic growth and
high and variable inflation and devaluation levels. According to the
National Statistics and Census Institute (Instituto Nacional de Estadísticas
y Censos, or “INDEC”), Argentine GDP contracted in real terms by 2.5% in
2014, grew 2.6% in 2015, contracted by 2.1% in 2016, grew by 2.7% in 2017
and contracted by 2.5% and 2.2% in 2018 and 2019, respectively.

Argentine economic conditions are dependent on a variety of factors,
including the following:

• domestic production, international demand and prices for

Argentina’s principal commodity exports;

•

the competitiveness and efficiency of domestic industries and services;

•

the stability and competitiveness of the Argentine peso against
foreign currencies;

•

the rate of inflation;

•

the government’s fiscal deficits;

•

the government’s public debt levels;

•

foreign and domestic investment and financing; and

• governmental policies and the legal and regulatory environment.

Government policies and regulation—which at times have been
implemented through informal measures and have been subject to
radical shifts—that have had a significant impact on the Argentine
economy in the past have included, among others: monetary policy,
including exchange controls, capital controls, high interest rates and a
variety of measures to curb inflation, restrictions on exports and imports,
price controls, mandatory wage increases, taxation and government
intervention in the private sector.

We cannot assure you that the future development of the Argentine
economy will not impair our ability to successfully carry out our business
plan or materially adversely affect our business, financial condition or
results of operations.

Political and economic instability in Argentina may recur, which could
have a material adverse effect on our Argentine operations and on our
financial condition and results of operations.

Argentina has a history of political and economic instability that
often results in abrupt changes in government policies. Argentine
governments have pursued different, and often contradictory,
policies to those of preceding administrations. In recent decades,
succeeding administrations have implemented interventionist
policies, which included nationalization, debt renegotiation, price
controls, and exchange restrictions, as well as market-friendly policies,
such as export tax reductions, elimination of currency controls,
deregulation of utility prices, negotiation of free trade agreements and
implementation of pro-investor initiatives.

In October 2019, Argentine presidential, legislative and certain
provincial and municipal governments elections were held and Alberto
Fernández was elected president. The new administration took office
on December 10, 2019. Certain members of the current government

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTcoalition, including president Alberto Fernández and vice president
Cristina Fernández de Kirchner, were part of administrations which in
the past were characterized by high levels of government intervention
and policies at times disadvantageous to investors and the private
sector. As a result, there is uncertainty regarding the policies and
changes in regulation that the new Argentine government will
implement. On December 23, 2019, the new Argentine government
passed a law granting emergency powers to the executive branch,
among other measures. We cannot predict what policies the new
Argentine government will implement under these emergency powers

We cannot provide assurance that the Argentine government will not
adopt policies, over which we have no control, that adversely affect
the Argentine economy and impair our Argentine operations and our
business, financial condition or results of operations [170].

Inflation in Argentina may adversely affect our operations, which could
adversely impact our financial condition and results of operations.

Argentina has experienced high levels of inflation in recent decades.
Argentina’s historically high rates of inflation resulted mainly from
its lack of control over fisal policy and the money supply. Argentina
continues to face high inflationary pressures. The INDEC in 2017
reported that the consumer price index (índice de precios al
consumidor or “CPI”) increased 24.8%, while the wholesale price index
(índice de precios internos al por mayor or “WPI”) increased 18.8%.
In 2018, the INDEC registered a variation in the CPI of 47.6% and an
increase in WPI of 73.5%. In 2019, the INDEC registered an increase in
CPI of 53.7%, while the WPI increased 58.5%.

During 2018 and 2019, Argentina met the criteria to be considered a
hyperinflationary economy as provided by IAS 29 guidelines, which
include, among other characteristics, a cumulative inflation rate over
three years that approaches or exceeds 100%. Accordingly, IAS 29
must be applied for financial statements for fiscal years ending on or
after July 1, 2018. IAS 29 requires non-monetary assets and liabilities,
shareholders’ equity and comprehensive income to be restated in terms
of a measuring unit current at the period end. IAS 29 also requires the
use of a general price index to reflect changes in purchasing power. As
a result, since July 2018, we began to apply IAS 29 in the preparation
of our financial statements and report the results of our operations
in Argentina as if this economy was hyperinflationary from January 1,
2018. In addition, by application of IAS 29, we had to translate figures in
Argentine pesos to Chilean pesos using the period closing exchange
rate (and not the average exchange rate), thus reducing our results of
operations and net earnings. We cannot predict for how long Argentina
will be considered a hyperinflationary economy and we will have to
apply IAS 29 to the preparation of our financial statements.

In the past, inflation has materially undermined the Argentine
economy and the government’s ability to generate conditions that
foster economic growth. High inflation or a high level of price instability
may materially and adversely affect the business volume of the
financial system. This result, in turn, could adversely affect the level of
economic activity and employment in the country.

In 2015, 2016, 2017, 2018 and 2019, the Argentine peso depreciated
52%, 22%, 17%, 102% and 59%, respectively, compared with the closing
exchange rate for the U.S. dollar. A significant part of the raw materials
used by the company in Argentina are in U.S. dollars, so a devaluation
of the Argentine peso against the U.S. dollar can affect our costs and
margins in a significant way.

High inflation would also undermine Argentina’s foreign
competitiveness and adversely affect economic activity, employment,
real salaries, consumption and interest rates, thereby materially and
adversely affecting economic activity and consumers’ income and
their purchasing power, all of which could have a material adverse
effect on our financial condition and operating results.

Between 2007 and 2015, the INDEC, which is the only institution in
Argentina with the statutory authority to produce official national
statistics, experienced significant institutional and methodological
changes that gave rise to controversy regarding the reliability
of the information that it produces, including inflation, GDP and
unemployment data, resulting in allegations that the inflation rate
in Argentina and the other rates calculated by INDEC could be
substantially different than as indicated in official reports. While the
previous administration undertook reforms and the credibility of the
national statistics systems has since been restored, we cannot assure
you that the new or future administrations will not implement policies
that may affect the national statistics system undermining consumer
and investor confidence, which ultimately could affect our business,
results of operations and financial condition.

The Argentine peso is subject to depreciation and volatility, which could
adversely affect our financial condition and results of operations.

Fluctuations in the value of the peso continue to affect the Argentine
economy. Since January 2002, the peso has fluctuated significantly in
value, often following periods of high inflation and currency controls that
artificially appreciated the value of the currency. Frequent devaluations
have had an adverse effect on the ability of the Argentine government
and Argentine companies to make timely payments on their foreign
currency denominated obligations, have significantly reduced wages
in real terms, and have adversely impacted the stability of businesses
whose success depends on the domestic market demand.

In an effort to reduce downward pressure on the value of the Argentine
peso, the Argentine government has at times implemented policies aimed
at maintaining the level of reserves of the Banco Central de la República
Argentina (“BCRA”) that limit the purchase of foreign currency by private
companies and individuals. Currently, access to the foreign exchange
market is subject to several restrictions and governmental authorizations.

The depreciation of the Argentine peso may have a negative impact
on the ability of certain Argentine businesses to service their foreign
currency denominated debt, significantly reduce real wages and
jeopardize the stability of businesses whose success depends on
domestic market demand, and also adversely affect the Argentine
government’s ability to honor its foreign debt obligations. A significant
appreciation of the Argentine peso against the U.S. dollar also presents
risks for the Argentine economy, including the possibility of a reduction
in exports as a consequence of the loss of external competitiveness.
Any such appreciation could also have a negative effect on economic
growth and employment, and reduce tax revenues.

Given the economic and political conditions in Argentina, we cannot
predict whether, and to what extent, the value of the Argentine peso
may depreciate or appreciate against the U.S. dollar, the euro or other
foreign currencies. We cannot predict how these conditions will affect
the consumption of our products. Moreover, we cannot predict whether
the new Argentine government will continue its monetary, fiscal, and
exchange rate policy and, if so, what impact any of these changes
could have on the value of the Argentine peso and, accordingly, on our
financial condition, results of operations and cash flows, and on our
ability to transfer funds abroad in order to comply with commercial or
financial obligations.

The Argentine government could impose certain restrictions on
currency conversions and remittances abroad, which could affect the
timing and amount of any dividends or other payment we receive from
our Argentine subsidiary.

Beginning in December 2015, the Argentine government gradually
eased restrictions which significantly curtailed access to the foreign
exchange market by individuals and private sector entities and
affected our ability to declare and distribute dividends with respect
to our Argentine subsidiary. These measures included informal
restrictions, which consisted of de facto measures restricting local
residents and companies from purchasing foreign currency through
the foreign exchange market to make payments abroad, such as
dividends and payment for the importation of goods and services.

On September 1, 2019, in a response to the weakening of the Argentine
peso following the results of the primary elections, the Argentine
government temporarily reinstated certain exchange restrictions. The
new controls apply with respect to access to the foreign exchange
market by residents (both companies and natural persons) for savings

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORT
Future government policies to preempt, or in response to, social
unrest may include expropriation, nationalization, forced renegotiation
or modification of existing contracts, suspension of the enforcement
of creditors’ rights, new taxation policies and changes in laws and
policies affecting foreign trade and investment. Such policies could
destabilize the country and adversely and materially affect the
Argentine economy, and thereby our business, results of operations
and financial condition.

and investment purposes abroad, the payment of external financial
debts abroad, the payment of dividends in foreign currency abroad,
the payment of imports of goods and services, and the obligation to
repatriate and settle for Argentine pesos the proceeds from exports
of goods and services, among others. Under current Argentine law,
we are restricted from accessing the official foreign exchange market
to make dividend payments to us from our Argentine subsidiaries
without prior approval from the Argentine Central Bank.

It is not possible to anticipate whether these measures will be in
force after December 31, 2019 or if the new administration which
took office on December 10, 2019 will impose additional restrictions.
The Argentine government could maintain or impose new exchange
control regulations, restrictions and take other measures in response
to capital flight or a significant depreciation of the peso, which could
limit access to the international capital markets, adversely affect
Argentina’s economy, and further impair our ability to declare and
distribute dividends from our Argentine subsidiaries.

The Argentine government’s ability to obtain financing from
international capital markets may be limited or costly, which may
impair its ability to implement reforms and foster economic growth.

At the end of 2001, the Argentine government defaulted in part of its
sovereign debt. In 2005 and 2010, Argentina conducted exchange
offers to restructure part of its sovereign debt that had been in default
since the end of 2001. Through these exchange offers, Argentina
restructured over 92% of its eligible defaulted debt. In April 2016, after
a series of judicial actions by Argentina’s bondholders, the Argentine
government settled substantially all of the remaining defaulted debt.
Additionally, as a result partially of emergency measures undertaken
by the government in response to the crisis of 2001 and 2002, foreign
shareholders of several Argentine companies filed claims with the
International Centre for Settlement of Investment Disputes (“ICSID”),
alleging that those measures diverged from the just and equal
treatment standards set forth in bilateral investment treaties to which
Argentina is a party. The ICSID ruled against the Argentine government
in a number of these proceedings, and the Argentine government has
settled some but not all of these claims.

In December 2019, the Argentine government delayed payment on
roughly US$9 billion in U.S. dollar-denominated short-term debt,
postponing payment until August 2020 while announcing to its
creditors that it will seek to restructure the country’s debt obligations,
including loans from the International Monetary Fund (FMI), which
extended a US$57 billion bailout program. As a result, rating agency
Fitch downgraded Argentina to “restricted default” and Standard &
Poor’s changed its country rating to “selective default”.

While Argentina had regained access to the international capital
markets, actions by the Argentine government, or investor perceptions

of the country’s creditworthiness, could curtail access in the future or
could significantly increase borrowing costs, limiting the government’s
ability to foster economic growth. Limited or costly access to
international financing for the private sector could also affect our
business, financial condition and results of operations.

The government may order salary increases to be paid to employees in
the private sector, which could increase our operating costs and affect
our results of operations.

In the past, the Argentine government has passed laws, regulations
and decrees requiring companies in the private sector to increase
wages and provide specified benefits to employees. On December
23, 2019, the Argentine government passed a law granting emergency
powers to the executive branch which, among others, include the
ability to mandate increases to private sector wages. Due to persistent
high levels of inflation, labor organizations regularly demand
significant wage increases. In 2015, 2016, 2017, 2018 and 2019 the
increase in the federally-mandated minimum wage was 27%, 35%,
17%, 28% and 48%, respectively, and for these same years the market
average salary increase for workers was 32%, 33%, 26%, 32% and 48%,
respectively. In addition, the Argentine government has arranged
various measures to mitigate the impact of inflation and exchange rate
fluctuation in wages. Due to high levels of inflation, both public and
private sector employers continue to experience significant pressure
to further increase salaries.

Labor relations in Argentina are governed by specific legislation, such
as Labor Law No. 20,744 and Law No. 14,250 on Collective Bargaining
Agreements, which, among other things, dictate how salary and other
labor negotiations are to be conducted. In the future, the government
could take new measures requiring salary increases or additional
benefits for workers, and the labor force and labor unions may apply
pressure in support of such measures. Any such increase in wages
or worker benefit could result in added costs and reduced results of
operations for Argentine companies, including us.

Government measures to preempt or respond to social unrest may
adversely affect the Argentine economy and our business.

In recent decades, Argentina has experienced significant social
and political turmoil, including civil unrest, riots, looting, nationwide
protests, strikes and street demonstrations. Social and political
tension and high levels of poverty and unemployment continue.
Unions frequently stage nationwide strikes and protests, and riots and
lootings of shops and supermarkets in cities around the country have
taken place at times of social turmoil.

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTCentral Bank, actively participates in the exchange market in order to
reduce volatility. Since a portion of our total costs (30%) in Paraguay for
raw material and supplies are denominated in U.S. dollars, a significant
depreciation of the local currency could adversely affect our financial
situation and results.

The Paraguayan Guaraní depreciated by 26% in 2015, appreciated by
1% and 3% in 2016 and 2017, respectively, and depreciated by 7% and
8% in 2018 and 2019, respectively, in each case compared with the
closing exchange rate of the U.S. dollar.

The local currency follows regional and global trends. When the U.S.
dollar’s value increases, and raw materials lose value in Paraguay, this
directly impacts Paraguay’s generation of foreign exchange which
occurs mainly through the export of raw materials. A deterioration
in the economic growth of Paraguay as result of a significant
depreciation of the Guaraní could have an effect on our business,
financial condition and results of operations.

RISKS RELATING TO PARAGUAY

Our business operations in Paraguay
are dependent on economic
conditions in Paraguay.

Our operations in Paraguay represented 12.9% and 12.1% of our assets as
of December 31, 2018 and December 31, 2019, respectively, and 8.9% and
8.9% of our net sales for 2018 and 2019, respectively. Because demand for
soft drinks and beverage products is generally related to the economic
conditions prevailing in the local market which, in turn, depend on the
macroeconomic and political conditions of the country, our financial
situation and our results of operations could be adversely affected by
changes in these factors over which we have no control.

Paraguay has a history of economic and political instability, exchange
controls, frequent changes in regulatory policies, corruption and weak
judicial security. Paraguayan GDP grew by 3%, 4%, 5% and 3% in 2015,
2016, 2017 and 2018, respectively; it did not grow in 2019, according to
the Paraguayan Central Bank. Paraguayan GDP is closely tied to the
performance of Paraguay’s agricultural sector, which can be volatile.

The situation of the Paraguayan economy is also strongly influenced by the
economic situation in Argentina and Brazil. A deterioration in the economic
situation of these countries could adversely affect the Paraguayan
economy and, in turn, our financial condition and operating results.

Inflation in Paraguay may adversely affect our financial condition and
results of operations.

Although inflation in Paraguay has remained stable at around 4% over
the last five years, we cannot assure that inflation in Paraguay will
not increase significantly. An increase in inflation in Paraguay could
decrease the purchasing power of our consumers in the country, which
could adversely affect our volumes and impact our sales income.

The Paraguayan Guaraní is subject to depreciation and volatility, which could
adversely affect our financial condition and results of operations.

The exchange rate of Paraguay is free and floating and the Paraguay

Preemptive rights may be
unavailable to ADR holders.

According to the Ley de Sociedades Anónimas No. 18,046 and the
Reglamento de Sociedades Anónimas (collectively, the “Chilean
Companies Law”), whenever we issue new shares for cash, we are
required to grant preemptive rights to holders of our shares (including
shares represented by ADRs), giving them the right to purchase
a sufficient number of shares to maintain their existing ownership
percentage. However, we may not be able to offer shares to United
States holders of ADRs pursuant to preemptive rights granted to
our shareholders in connection with any future issuance of shares
unless a registration statement under the U.S. Securities Act of 1933,
as amended, is effective with respect to such rights and shares, or an
exemption from the registration requirements of the U.S. Securities Act
of 1933, as amended, is available.

Under the procedure established by the Central Bank of Chile, the
foreign investment agreement of a Chilean company with an existing
ADR program will become subject to an amendment (which will
also be deemed to incorporate all laws and regulations applicable
to international offerings in effect as of the date of the amendment)
that will extend the benefits of such contract to new shares issued
pursuant to a preemptive rights offering to existing ADR owners and
to other persons residing and domiciled outside of Chile that exercise
preemptive rights, upon request to the Central Bank of Chile. We intend
to evaluate at the time of any rights offering the costs and potential
liabilities associated with any such registration statement as well as the
indirect benefits to us of enabling United States ADR holders to exercise
preemptive rights and any other factors that we consider appropriate
at the time, and then make a decision as to whether to file such
registration statement.

We cannot assure you that any registration statement would be filed.
To the extent ADR holders are unable to exercise such rights because
a registration statement has not been filed, the depositary will attempt
to sell such holders’ preemptive rights and distribute the net proceeds
thereof if a secondary market for such rights exists and a premium can
be recognized over the cost of any such sale. If such rights cannot be
sold, they will expire, and ADR holders will not realize any value from the
grant of such preemptive rights. In any such case, such holder’s equity
interest in the Company would be diluted proportionately.

Shareholders’ rights are less well-defined in Chile than in other
jurisdictions, including the United States.

Under the United States federal securities laws, as a foreign private
issuer, we are exempt from certain rules that apply to domestic United
States issuers with equity securities registered under the United States
Securities Exchange Act of 1934, as amended, including the proxy
solicitation rules, the rules requiring disclosure of share ownership by
directors, officers and certain shareholders. We are also exempt from
certain of the corporate governance requirements of the Sarbanes-
Oxley Act of 2002 and the New York Stock Exchange, Inc., including
the requirements concerning independent directors.

Our corporate affairs are governed by the laws of Chile and our
estatutos or bylaws. Under such laws, our shareholders may have
fewer or less well-defined rights than they might have as shareholders
of a corporation incorporated in a U.S. jurisdiction.

Pursuant to Law No. 19,705, enacted in December 2000, the
controlling shareholders of an open stock corporation can only sell
their controlling shares through a tender offer to all shareholders in
which the bidder would have to buy all of the offered shares up to

the percentage determined by it, where the price paid is substantially
higher than the market price (i.e., when the price paid was higher
than the average market price for a period starting 90 days before
the proposed transaction and ending 30 days before such proposed
transaction, plus 10%).

The market for our shares may be volatile and illiquid.

The Chilean securities markets are substantially smaller, less liquid
and more volatile than major securities markets in the United States.
The Bolsa de Comercio de Santiago (the “Santiago Stock Exchange”),
which is Chile’s principal securities exchange, had a market
capitalization of approximately US$205,798 million as of December
31, 2019 and an average monthly trading volume of approximately
US$3,369 million for the year. The lack of liquidity is owed, in part, to
the relatively small size of the Chilean securities markets and may
have a material adverse effect on the trading prices of our shares.
Because the market for our ADRs depends, in part, on investors’
perception of the value of our underlying shares, this lack of liquidity
for our shares in Chile may have a significant effect on the trading
prices of our ADRs.

Distribution Centers / Warehouses

Offices / Production of Soft Drinks / Distribution Center / Warehouses

Square meters

Property

600

Third Parties

102,708

Own

PROPERTIES AND FACILITIES

Argentina

Embotelladora del Atlántico S.A.

Azul

Bahía Blanca

Bariloche

Bialet Masse

Bolívar

Bragado

Carlos Casares

Carlos Paz

Warehouses (Don Pedro)

Commercial Offices

Real Estate (parking lot)

Warehouses (M&F Palletizer -EDF deposit)

Offices / Distribution Centers / Warehouses

Real Estate**

Commercial Logistic Operations

Commercial Offices

Commercial Logistic Operations

Commercial Offices

Carmen de Patagones

Commercial Offices / Warehouses / Crossdocking

Chacabuco

Chivilcoy

Offices / Distribution Centers / Warehouses

Distribution Centers / Warehouses

Commercial Offices

Comodoro Rivadavia

Offices / Distribution Centers / Warehouses

Concepción del Uruguay

Crossdocking

Concepción del Uruguay

Commercial Offices

6,000

903

73,150

1,400

1,870

880

700

345

270

1,600

25,798

Leased

Own

Leased

Own

Third Parties

Leased

Third Parties

Leased

Own

1,350

Third Parties

7,500

n/a

118

Leased

Third Parties

Leased

Concordia

Córdoba

Commercial Offices / Third party Distribution Centers / Warehouses

1,289

Leased

Offices /Production of soft drinks and other still beverages / Distribution Centers / Warehouses / Real estate

959,585

Own

Córdoba (H. Primo)

Commercial Offices / parking lot / Deposit

Córdoba (San Isidro)

Deposit and Offices

Córdoba

Deposit (Cencosud)

Deposit (Rigar)

Deposit (Ricardo Balbín)

Deposit (Agnolon)

1,173

8,808

n/a

8,800

2,500

6,000

Leased

Own

Leased

Embotelladora del Atlántico S.A.

Coronel Pringles

Coronel Suárez

Embalse

General Pico

General Roca

Gualeguaychu

MAIN USE

Commercial Logistic Operations

Offices / Third party Distribution Centers / Warehouses / Deposit

Commercial Logistic Operations

Offices / Distribution Centers / Warehouses

Distribution Centers / Warehouses

Commercial Offices / Warehouses

Junín (Buenos Aires)

Cross Docking

Junín (Buenos Aires)

Commercial Offices

Junín (Mendoza)

Commercial Offices

Mendoza

Offices / Distribution Centers / Warehouses

Monte Hermoso

Real Estate**

Neuquén

Olavarría

Paraná

Pehuajo

Pergamino

Puerto Madryn

Rafaela

Rio Gallegos

Rio Grande

Río IV

Offices / Distribution Centers / Warehouses

Commercial Offices

Offices / Distribution Centers / Warehouses

Offices / Cross Docking

Commercial Offices

Commercial Logistic Operations

Distribution Centers / Warehouses

Offices / Distribution Centers / Warehouses

Housing

Private Passageway

Cross Docking

Commercial Offices

Río Tercero

Commercial Logistic Operations

Rivadavia (Mendoza)

Deposit**

Rosario

San Francisco

Offices / Distribution Centers / Warehouses / Parking Lot / Real Estate

Commercial Offices

Crossdocking

Square meters

Property

675

Third Parties

1,000

Leased

600

Third Parties

15,525

2,548

2,392

995

108

234

36,452

300

10,157

3,065

318

1,060

Own

Third Parties

Leased

Third Parties

Leased

Own

Leased

15,700

Own

115

Leased

1,000

Third Parties

2,491

2,460

1,914

5,170

7,482

600

800

27,814

800

Leased

Own

Leased

Third Parties

Own

Leased

Third Parties

Embotelladora del Atlántico S.A.

MAIN USE

Square meters

Property

San Juan

San Luis

Offices / Distribution Centers / Warehouses

Commercial Offices / Distribution Centers / Warehouses

San Martín de los Andes

Offices / Distribution Center / Warehouses

San Nicolás

San Rafael

Santa Fe

Santa Rosa

Santo Tomé

Trelew

Crossdocking

Commercial Offices

Distribution Centers / Warehouses

Administrative Offices / Distribution Centers / Warehouses

Offices / Production of Soft Drinks / Distribution Centers / Warehouses

Warehouses

Trenque Lauquen

Distribution Center / Warehouses / Commercial Offices

Tres Arroyos

Offices / Crossdocking / Warehouses

Ushuaia

Offices / Distribution Centers / Warehouses

Commercial Offices

Venado Tuerto

Commercial Offices / Distribution Centers / Warehouses

Villa María

Villa Mercedes

Andina Empaques Argentina S.A.

Buenos Aires

Commercial Offices

Crossdocking

Commercial Offices

Crossdocking

Production of bottles, PET Preforms, Plastic Caps and Cases

Deposit adjoining the production plant

48,036

5,205

1,500

1,320

238

Own

Third Parties

Leased

1,200

Third Parties

88,309

51,000

Own

1,500

Leased

1,185

Third Parties

1,548

1,360

2,449

125

Leased

1,200

Third Parties

600

Leased

Third Parties

27,043

Own

1,041

940

Leased

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTBrazil

Rio de Janeiro Refrescos Ltda.

MAIN USE

Square meters

Property

Jacarepaguá

Offices / Production of Soft Drinks / Distribution Center / Warehouses

Duque de Caxias

Offices / Production of Soft Drinks / Distribution Center / Warehouses

Nova Iguaçu

Distribution Centers / Warehouses

Bangu

Campos

Cabo Frio

Distribution Centers

Distribution Centers**

Sao Pedro da Aldeia 1

Distribution Centers

Itaperuna

Caju 1

Caju 2

Caju 3

Crossdocking

Distribution Centers

Parking Lot

Vitória (Cariacica)

Distribution Centers

Cachoeiro do Itapemirim

Crossdocking

Linhares

Ribeirão Preto

Franca

Mococa

Araraquara

São Paulo

Crossdocking

Offices / Production of Soft Drinks / Distribution Center / Warehouses

Real Estate

Distribution Centers

Apartment

Sao Joao da Boa Vista

Crossdocking

Sao Pedro da Aldeia 2

Parking Lot

Itaipu

Nova Friburgo

Commercial Offices

Commercial Offices / Crossdocking

249,470

2,243,953

82,618

44,389

36,083

1,985

Own

10,139

Concession

2,500

4,866

8,058

7,400

Leased

Own

Leased

93,320

Own

8,000

1,500

238,096

279,557

32,500

33,669

11,658

20,773

Leased

Own

Leased

Own

6,400

Concession

750

350

Leased

Square meters

Property

Chile

Embotelladora Andina S.A.

Renca

Offices / Production of Soft Drinks / Distribution Center / Warehouses

Warehouses

Carlos Valdovinos

Distribution Centers / Warehouses

Puente Alto

Maipú

Distribution Centers / Warehouses

Demetrop (Región Metropolitana)

Warehouses

Trailerlogistic (Región Metropolitana)

Warehouses

Monster (Región Metropolitana)

Warehouses

Rancagua

San Antonio

Antofagasta

Calama

Tocopilla

Coquimbo

Copiapó

Ovalle

Vallenar

Illapel

Distribution Centers / Warehouses

Offices / Production of Soft Drinks / Distribution Center / Warehouses

Distribution Centers / Warehouses

Offices / Production of Soft Drinks / Distribution Center / Warehouses

Distribution Centers / Warehouses

Punta Arenas

Offices / Production of Soft Drinks / Distribution Center / Warehouses

Coyhaique

Puerto Natales

Distribution Centers / Warehouses

380,833

55,562

11,211

46,965

106,820

68,682

45,833

n/a

25,920

19,809

34.729

8.028

10.700

562

31.383

26.800

6.223

5.000

Own

Leased

Own

s/d

Leased

109.517

5.093

850

Own

Leased

Square meters

Property

Chile

Embotelladora Andina S.A.

Vital Jugos S.A.

Renca

Vital Aguas S.A.

Rengo

Envases Central S.A.

Offices / Production of Juices

Offices / Production of Waters

Renca

Offices / Production of Soft Drinks

Paraguay

Paraguay Refrescos S.A.

San Lorenzo

Coronel Oviedo

Encarnación

Ciudad del Este

MAIN USE

Offices / Production of Soft Drinks / Warehouses

Offices / Warehouses

40,000

Own

573,620

Own

51,907

Own

Square meters

Property

275,292

32,911

12,744

14,620

Own

JUAN CLARO / Chairman
RUT: 5.663.828-8
Nationality: Chilean
Date of birth: November 7, 1950

EDUARDO CHADWICK / Director
RUT: 7.011.444-5
Nationality: Chilean
Date of birth: March 20, 1959

JOSÉ ANTONIO GARCÉS / Director
RUT: 8.745.864-4
Nationality: Chilean
Date of birth: March 1, 1966

ARTURO MAJLIS / Director
RUT: 6.998.727-3
Nationality: Chilean
Date of birth: April 7, 1962

GONZALO SAID / Vice Chairman
RUT: 6,555.478-K
Nationality: Chilean
Date of birth: October 16, 1964

Eduardo Chadwick has been Director of Coca-
Cola Andina since 2012. He is also member of the
board of directors of Penta, Maltexco and Ebema.
He is an Industrial Civil Engineer of the Pontificia
Universidad Católica de Chile.Universidad
Católica de Chile.

Juan Claro is an entrepreneur and since 2004 has
been a member of the board of directors of the
Company, chairing it since the same year. Currently, he
is also Director at Antofagasta PLC, Cementos Melón,
Agrosuper and Energía Llaima. He has developed an
outstanding activity of business representativeness,
having chaired the Sociedad de Fomento Fabril
(Sofofa) between 2001 and 2005 and also the
Confederación de Producción y Comercio (2002 to
2005). In addition, he is an honorary partner of the
Centro de Estudios Públicos and between 2005 and
2007 he was Chairman of the Chile-China Bilateral
Business Council. He has studies in civil engineering at
the Pontificia Universidad Católica de Chile.

José Antonio Garcés has been member of the
Company's Board of Directors since April 1992 and
currently serves as Director of Banco Consortium,
CN LIFE Compañía de Seguros, Consorcio Nacional
de Seguros, Banvida and Viña Montes. He
has previously been Chairman of the Board of
Directors of Banvida S.A., Past President of USEC
and Director of Fundación Paternitas, as well as
General Manager of Inversiones San Andrés (family
holding company) and former Director of Sofofa.
He is a Business Administrator of the Universidad
Gabriela Mistral specializing in finance and has
postgraduate studies with an Executive MBA and
PADE from ESE of the Universidad de Los Andes.

Arturo Majlis has been director of Coca-Cola
Andina since April 1997. An attorney at law of the
Universidad de Chile, he has specialized in the
areas of corporate governance, financial law,
litigation and arbitration. He is currently a senior
partner of the law firm Grasty, Quintana, Majlis y
Compañía. In addition, he is member of the board
of directors of Orión Seguros, Grupo Mathiesen,
Banchile, Inersa and Laboratorios Maver. In
addition, he is Director at Fundación Puerto de
Ideas and Fundación Convivir.

Gonzalo Said has been a member of the
Company's Board of Directors since 1992, as
well as being a Director at Scotiabank, Energía
Llaima and Holding Empresas Said Handal. In
parallel, he has an active participation in the
trade union field, through his position as Vice
President of Sofofa and as Director of Fundación
Generación Empresarial, from where he has
promoted his vision on corporate governance
and good business practices. He is a Business
Administrator of the Universidad Gabriela Mistral.
de la Universidad Gabriela Mistral.

SALVADOR SAID / Director
RUT: 6.379.626-3
Nationality: Chilean
Date of birth: September 16, 1964

GEORGES DE BOURGUIGNON / Director
RUT: 7.269.147-4
Nationality: Chilean
Date of birth: July 14, 1962

FELIPE JOANNON / Director
RUT: 6.558.360-7
Nationality: Chilean
Date of birth: December 17, 1959

PILAR LAMANA / Director
RUT: 8,538.550-K
Nationality: Chilean-Spanish
Date of birth: May 31, 1965

ROBERTO MERCADE / Director
DNI: 700.192.456-7 (Colombia)
Nationality: U.S.
Date of birth: September 18, 1968

Salvador Said joined the company's Board of
Directors on April 8, 1998. He is also Director
of Parque Arauco S.A., Scotiabank Chile S.A.,
Envases CMF S.A. and Energía Llaima SpA.
He is also Executive Director of the said Group
companies and Director of the Centro de Estudios
Públicos . In addition, he participates in non-profit
foundations oriented to entrepreneurship, such
as Endeavor Chile, an entity that he chaired for
six years. He is a Business Administrator from
Universidad Gabriela Mistral.

Georges de Bourguignon joined the Board of
Coca-Cola Andina in April 2016. He also currently
serves as Director at Asset Chile S.A., Asset AGF,
Soquimich S.A., and Tanica S.A. He was previously
Director of Latam Airlines Group and Empresas
La Polar. In academia, he has been Professor of
Economics at Universidad Católica and Director
of Harvard Business School Alumni Board
Boston. He has also been member of the Board
of Directors of Corporación de Amigos del Lago
Ranco. He is an Economist from the Pontificia
Universidad Católica de Chile.

Felipe Joannon has been Director of the Company
since April 2018, also serving in the Board of Directors
of Forestal O'Higgins (parent company Grupo Matte),
Quimetal Industrial S.A., Inmobiliaria Icom, Hotels
Plaza El Bosque and Maquinarias y Construcciones
Río Loa S.A. Previously he was director of the Luksic
Group companies and at the management level
he held the positions of Development Manager of
Quiñenco S.A., General Manager of Viña Santa Rita
and Deputy General Manager of Cristalerías de
Chile. In academia, he is a Professor of the Faculty
of Management and Economics at the Universidad
Católica de Chile and at ESE of the Universidad de Los
Andes. He is a Commercial Engineer specializing in
Economics from the Pontificia Universidad Católica
de Chile and MBA of The Wharton School.

Pilar Lamana, Commercial Engineer from the
Universidad de Chile, joined the Board of Coca-
Cola Andina in April 2017. She also serves as a
Director at Polpaico, Petrobras and Laboratorios
Petrizzio. She is a partner of the company Go
to Market.

Roberto Mercadé has been Director of the Company
since April 2019 and currently holds the position of
President of the Latin Center Business Unit of The
Coca-Cola Company.
Industrial Engineer of the Georgia Institute of
Technology, Atlanta, USA; he has formerly integrated
the ARCA-Lindley Boards in Peru, Campo Alegre
School in Venezuela and American International
School of Johannesburg in South Africa.

GONZALO PAROT / Director
RUT: 6.703,799-5
Nationality: Chilean
Date of birth: September 14, 1952

ENRIQUE RAPETTI / Director
Nationality: Argentine
Date of birth: October 22, 1976

MARIANO ROSSI / Director
Passport: 1,7761,559
Nationality: Argentine-Italian
Date of birth: January 22, 1966

RODRIGO VERGARA / Director
RUT: 7,980.977-2
Nationality: Chilean
Date of birth: June 5, 1962

Gonzalo Parot has been part of the Company's
Board of Directors since 2010, a position he currently
holds in parallel with that of Director at AES
Gener. Previously, he developed his professional
activity as Head of Research at CCU, Manager of
Research and Corporate Development at Empresas
CMPC, General Manager of Celulosa del Pacifico,
Corporate General Manager at CMPC Tissue and
Corporate General Manager at Copesa. In his career
he has excelled as Director, Executive Vice President
and Counselor of the Teatro Municipal de Santiago,
as Director of the National Press Association and
the Chilean-Argentine Chamber of Business and as
Professor and Director of the School of Economics
of Universidad de Chile. He is an Industrial Civil
Engineer from the Universidad de Chile and an
Economist from Chicago University, his areas of
specialization are Business, Economy and Finance.

Enrique Rapetti is Chief Financial Officer for
Coca-Cola Latin America and has served as
Director of Coca-Cola Andina since October 2016.
He is Certified Public Accountant; throughout his
professional career he has specialized in the area of
Corporate Finance. His higher education took place
at the Universidad Argentina de la Empresa (UADE)
and the Universidad Torcuato Di Tella (UTDT).

Mariano Rossi has been a Director at the
Company since July 2012 and is currently also
part of the Board of Directors of Novusfill.
As part of The Coca-Cola Company he has
been General Manager in Argentina and Chief
Financial Officer Latam. Between 1999 and
2008 he served as Director in public bottlers
of the Coca-Cola System in Latin America
(Chile, Peru and Uruguay). He holds a degree in
Management from the Universidad de Buenos
Aires, specializing in Finance.

Rodrigo Vergara has been a director of Coca-
Cola Andina since April 2018. He currently holds
the position of Senior Economist of the Centro
de Estudios Públicos and Associate Researcher
of the Mossavar-Rahmani Center of Harvard
University. He is also Director of Banco Santander
Chile and Besalco S.A. Previously president of the
Banco Central de Chile (2011-2016), Director of the
same monetary entity (2009-2011) and Director at
Moneda S.A., Moneda AGF, Entel S.A. and Banco
Internacional. He is a Business Administrator
with specializing in Economics of the Pontificia
Universidad Católica de Chile.

MIGUEL ANGEL PEIRANO
Chief Executive Officer

ANDRÉS WAINER
Chief Financial Officer

JAIME COHEN
Chief Legal Officer

GONZALO MUÑOZ
Chief Human Resources Officer

MARTIN IDIGORAS
Chief IT Officer

RUT: 23.836.584-8
Nationality: Argentine
Date of birth: March 22, 1959
Date of entry to the Company: August 2011
Appointment date of office: August 2011

RUT: 10.031.788-5
Nationality: Chilean
Date of birth: October 15, 1970
Date of entry to the Company: April 1996
Appointment date of office: December 2010

RUT: 10.550.141-2
Nationality: Chilean
Date of birth: October 14, 1967
Date of entry to the Company: September 2008
Appointment date of office: September 2008

RUT: 7.691.376-5
Nationality: Chilean
Date of birth: September 23, 1961
Date of entry to the Company: January 2015
Appointment date of office: January 2015

RUT: 22.526.397-3
Nationality: Argentine
Date of birth: February 6, 1975
Date of entry to the Company: November 2018
Appointment date of office: January 2019

Electronic Engineer of the Instituto Tecnológico
de Buenos Aires and with postgraduate studies
at Harvard Business School, Stanford University.
Prior to taking over as CEO, he served as a Senior
Engagement Manager at McKinsey & Company
and President of Coca-Cola Femsa Mercosur.

Business Administrator specializing in Economics
of the Pontificia Universidad Católica de Chile
and holds a Master's degree in Finance from The
London Business School. He joined the Company
in 1996 and before taking over as CFO he served
as Finance Manager of the operation in Chile
and as Corporate Manager of Research and
Development.

Lawyer of the Universidad de Chile and Virginia,
United States, who throughout his career has
specialized in Corporate and Financial Law.
Prior to his appointment as Chief Legal Officer of
the Company he was Legal Affairs Manager at
Socovesa S.A. (2004-2008); Corporate Banking
Attorney at Citibank N.A. (2000-2004); International
Associate at Milbank, Tweed, Hadley & McCloy,
New York (2001-2002); Associate Lawyer at Cruzat,
Ortuzar & Mackenna, Baker & McKenzie (1996-1999)
and Financial and Real Estate Attorney at Banco de
A. Edwards (1993-1996).

CPA of the Universidad de Chile who throughout his
professional career has specialized in the areas of
Finance, General Management, Trade Marketing
and Human Resources. Prior to his appointment
as Chief Human Resources Officer of Coca-Cola
Andina, he worked at British American Tobacco
serving as Director of Human Resources in Mexico
and Director of the Southern Human Resources
Cone. In the same company he also served as Chief
Financial Officer and General Manager in several
Latin American countries.

Bachelor of Systems of the John F. Kennedy
University specializing in Technologies. Prior to
joining Coca-Cola Andina, he worked for more
than 17 years at Cencosud. During that time he
served as CIO for the Home Improvement Division
(2015-2018), Regional Manager Center of Expertise
SAP (2014-2015) and Regional CTO (2010-June
2014). He also worked in different Technology
positions at Correo Argentino and Arcor.

FERNANDO JAÑA
Chief Strategic Planning Officer

JOSÉ LUIS SOLÓRZANO
General Manager Embotelladora Andina S.A.

FABIÁN CASTELLI
General Manager Embotelladora del Atlántico S.A.

FRANCISCO SANFURGO
General Manager Paraguay Refrescos S.A.

RENATO BARBOSA
General Manager Rio de Janeiro Refrescos Ltda.

RUT: 12.167.257-K
Nationality: Chilean
Date of birth: June 13, 1977
Date of entry to the Company: June 2014
Appointment date of office: May 2019

RUT: 10.023.094-1
Nationality: Chilean
Date of birth: October 9, 1970
Date of entry to the Company: April 2003
Appointment date of office: April 2014

DAYS: 17744981
Nationality: Argentine
Date of birth: October 27, 1965
Date of entry to the Company: May 1994
Appointment date of office: April 2014

RUT: 7.053.083-K
Nationality: Chilean
Date of birth: July 24, 1954
Date of entry to the Company: 1988
Appointment date of office: January 2005

DNI: 505.757 SSP/DF
Nationality: Brazilian
Date of birth: January 14, 1960
Date of entry to the Company: January 2012
Appointment date of office: January 2012

Industrial Civil Engineer of the Universidad Adolfo
Ibáñez has specialized in the areas of Mass
Consumption and Retail. He holds a Master's
degree in Logistics and Supply Chain Management
from The University of Sydney. Prior to the
position of Chief Strategic Planning Officer of the
Company he was General Manager of Coca-Cola
del Valle, Manager of Innovation and Projects at
Coca- Cola Andina Chile, e-Commerce Manager
at Supermercados Cencosud and Logistics and
Distribution Manager at CCU.

Business Administrator of the Universidad Adolfo
Ibáñez specializing in the areas of Marketing
and Finance. Prior to being appointed general
manager of Coca-Cola Andina Chile, he held
the positions of General Manager of Andina
Argentina and Commercial Manager of Andina.
Prior to this he was Commercial Manager of
Coca-Cola Polar.

Industrial Engineer of the Universidad Nacional
de Cuyo, specializing in the Management
Development Program at IAE, Argentina, and
Donald A. Keough System Leadership Academy.
Before being appointed General Manager of
Embotelladora del Atlántico S.A.. and after
joining the Company in 1994 he has held the
positions of Head of the Sales Department of
Mendoza, Manager of Commercial Development
and Planning, Marketing Manager, Commercial
Manager. He has also been AdeS Director and
Vice President of AFAC.

Mechanical Engineer of the Universidad de
Concepción, specializing in Project Management
at Universidad Adolfo Ibáñez. Prior to his
appointment as General Manager of Paresa,
he served as Commercial Manager at Dimetral
in Punta Arenas, Manager of the Punta Arenas
branch of Citicorp and General Manager of
Cervecería Austral in Punta Arenas.

Economist of the Universidad do Distrito Federal,
specializing in Business. Before taking over as
general manager of Rio de Janeiro Refrescos he
held the position of General Manager at Brasal
Refrigerantes, (Coca-Cola bottler of the eastern
central part of Brazil.)

Consolidated Statements
of Financial Position at
December 31, 2019 and 2018

Consolidated Income Statement by
Function for the periods between
January 1 and December 31,
2019 and 2018

Consolidated Statement of
Comprehensive Income for the
periods between January 1 and
December 31, 2019 and 2018

Consolidated Statement of
Changes in Equity for the periods
between January 1 and December
31, 2019 and 2018

Consolidated Statements
of Direct Cash Flows for the
periods between January 1 and
December 31, 2019 and 2018

Notes to the Consolidated
Financial Statements

External Auditor Report

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTCONSOLIDATED FINANCIAL
STATEMENTS AT DECEMBER 31, 2019 AND 2018
Embotelladora Andina S.A. and Subsidiaries

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES
Consolidated Statement of Financial Position

ASSETS

Current assets:

Cash and cash equivalents

Other financial assets

Other non-financial assets

Trade and other accounts receivable, net

NOTE

12.31.2019

12.31.2018

CLP (000’s)

157,567,986

137,538,613

347,278

683,567

16,188,965

5,948,923

191,077,588

174,113,323

Accounts receivable from related companies

12.1

10,835,768

9,450,263

Inventory

Current tax assets

Total Current Assets

Non-Current Assets:

Other financial assets

Other non-financial assets

Trade and other receivables

Accounts receivable from related parties

Investments accounted for under the equity method

Intangible assets other than goodwill

Goodwill

Property, plant and equipment

Deferred tax assets

Total Non-Current Assets

Total Assets

The accompanying notes form an integral part of these Consolidated Financial Statements

12.1

10.2

147,641,224

151,319,709

9,815,294

2,532,056

533,474,103

481,586,454

110,784,311

97,362,295

125,636,150

34,977,264

523,769

283,118

1,270,697

74,340

99,866,733

102,410,945

675,075,375

668,822,553

121,221,661

117,229,173

722,718,863

710,770,968

1,364,340

1,857,474,320

1,732,918,235

2,390,948,423

2,214,504,689

LIABILITIES AND EQUITY

ASSETS

Current Liabilities:

Other financial liabilities

Trade and other accounts payable

Accounts payable to related parties

Provisions

Income taxes payable

Employee benefits current provisions

Other non-financial liabilities

Total Current Liabilities

Non-Current Liabilities:

Other financial liabilities, non-current

Accounts payable, non-current

Accounts payable to related companies, non-current

Other provisions, non-current

Deferred tax liabilities

Employee benefits non-current provisions

Total Non-Current Liabilities:

Equity:

Issued capital

Retained earnings

Other reserves

Equity attributable to equity holders of the parent

Non-controlling interests

Total Equity

Total Liabilities and Equity

The accompanying notes form an integral part of these Consolidated Financial Statements

NOTE

12.31.2019

12.31.2018

CLP (000’s)

12.2

10.2

40,593,878

56,114,977

243,700,553

238,109,847

53,637,601

45,827,859

2,068,984

6,762,267

3,485,613

9,338,612

38,392,854

33,210,979

26,502,215

33,774,214

411,658,352

419,862,101

743,327,057

716,563,778

619,587

735,665

19,777,812

67,038,566

58,966,913

169,449,747

145,245,948

10,173,354

9,415,541

1,010,386,123

930,927,845

270,737,574

600,918,265

462,221,463

76,993,851

110,854,089

948.649.690

843,813,126

20,254,258

19,901,617

968,903,948

863,714,743

2,390,948,423

2,214,504,689

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTEMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES
Consolidated Income Statement by Function for the periods between January 1 and December 31, 2019 and 2018

Net sales

Cost of sales

Gross Profit

Other income

Distribution expenses

Administrative expenses

Other expenses

Other (loss) gains

Financial income

Financial expenses

01.01.2019

01.01.2018

12.31.2019

12.31.2018

NOTE

CLP (000’s)

1,779,025,115

1,672,915,799

(1,048,343,767)

(968,027,774)

730,681,348

704,888,025

40,947,158

2,609,168

(166,996,289)

(165,775,484)

(325,903,809)

(313,742,853)

(26,182,847)

(16,057,763)

2,876

(2,707,859)

45,155,791

3,940,244

(46,209,020)

(55,014,660)

Share of profit (loss) of investments in associates and joint ventures accounted for using the equity method

14.3

(3,415,083)

1,411,179

Foreign exchange differences

Income by indexation units

Net income before income taxes

Income tax expense

Net income

Net income attributable to

Owners of the controller

Non-controlling interests

Net income

Earnings per Share, basic and diluted

Earnings per Series A Share

Earnings per Series B Share

The accompanying notes form an integral part of these Consolidated Financial Statements

(4,130,543)

(1,449,256)

(7,536,466)

(5,085,140)

236,413,116

153,015,601

10.1

(61,166,891)

(55,564,855)

175,246,225

97,450,746

173,721,928

96,603,371

1,524,297

847,375

175,246,225

97,450,746

CLP

21.5

174.79

192.27

97.20

106.92

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTEMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES
Consolidated Statement of Comprehensive Income for the periods between January 1 and December 31, 2019 and 2018

Net income

Other Comprehensive Income:

01.01.2019

01.01.2018

12.31.2019

12.31.2018

CLP (000’s)

175,246,225

97,450,746

Components of other comprehensive income that will not be reclassified to net income for the period, before taxes

Actuarial losses from defined benefit plans

(379,007)

(63,463)

Components of other comprehensive income that will be reclassified to net income for the period, before taxes

Gain (losses) from exchange rate translation differences

Gain (losses) from cash flow hedges

(41,844,584)

(72,455,525)

(1,865,233)

(13,151,841)

Income tax related to components of other comprehensive income that will not be reclassified to net income for the period

Income tax benefit related to defined benefit plans

102,332

16,184

Income tax related to components of other comprehensive income that will be reclassified to net income for the period

Income tax related to exchange rate translation differences

Income tax related to cash flow hedges

Other comprehensive income, total

Total comprehensive income

Total comprehensive income attributable to:

Equity holders of the controller

Non-controlling interests

Total comprehensive income

The accompanying notes form an integral part of these Consolidated Financial Statements

9,295,545

2,476,204

683,483

2,554,551

(34,007,464)

(80,623,890)

141,238,761

16,826,856

139,861,690

16,370,635

1,377,071

456,221

141,238,761

16,826,856

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTEMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES
Consolidated Statement of Changes in Equity for the periods between January 1 and December 31, 2019 and 2018

Issued
capital

Reserves for
exchange rate
differences

Cash flow hedge
reserve

Other reserves

Actuarial gains
or losses in
employee
benefits

Other reserves

Total other
reserves

Retained
earnings

Controlling
Equity

Non-Controlling
interests

Total
Equity

Opening balance as of 01.01.2019

270,737,574

(306,674,528)

(13,668,932)

(1,954,077)

433,151,626

110,854,089

462,221,463

843,813,126

19,901,617

863,714,743

CLP (000’s)

Changes in Equity

Comprehensive Income

Earnings

Other comprehensive income

Comprehensive income

Dividends

Increase (decrease) from other changes

Total changes in equity

(32,401,812)

(1,181,751)

(276,675)

(32,401,812)

(1,181,751)

(276,675)

(32,401,812)

(1,181,751)

(276,675)

173,721,928

1,524,297

175,246,225

(33,860,238)

(147,226)

(34,007,464)

(33,860,238)

173,721,928

139,861,690

1,377,071

141,238,761

(86,568,579)

(1,024,430)

(87,593,009)

51,543,453

(33,860,238)

138,696,802

104,836,564

352,641

105,189,205

Ending balance as of 12.31.2019

270,737,574

(339,076,340)

(14,850,683)

(2,230,752)

433,151,626

76,993,851

600,918,265

948,649,690

20,254,258

968,903,948

Issued
capital

Reserves for
exchange rate
differences

Cash flow hedge
reserve

Other reserves

Actuarial gains
or losses in
employee
benefits

Other reserves

Total other
reserves

Retained
earnings

Controlling
Equity

Non-Controlling
interests

Total
Equity

CLP (000’s)

Opening balance as of 01.01.2018

270,737,574

(237,077,572)

(3,094,671)

(1,915,587)

427,137,058

185,049,228

335,523,254

791,310,056

21,923,293

813,233,349

Changes in accounting policies

79,499,736

Restated opening balance

270,737,574

(237,077,572)

(3,094,671)

(1,915,587)

427,137,058

185,049,228

415,022,990

870,809,792

21,923,293

892,733,085

Changes in Equity

Comprehensive Income

Earnings

Other comprehensive income

Comprehensive income, total

Dividends

Increase (decrease) from other changes

Total changes in equity

(69,596,956)

(10,597,290)

(69,596,956)

(10,597,290)

23,029

(38,490)

96,603,371

847,375

97,450,746

(80,232,736)

(391,154)

(80,623,890)

(80,232,736)

96,603,371

16,370,635

456,221

16,826,856

(85,475,291)

(2,477,897)

(87,953,188)

6,014,568

6,037,597

36,070,393

42,107,990

(69,596,956)

(10,574,261)

(38,490)

6,014,568

(74,195,139)

47,198,473

(26,996,666)

(2,021,676)

(29,018,342)

Ending balance as of 12.31.2018

270,737,574

(306,674,528)

(13,668,932)

(1,954,077)

433,151,626

110,854,089

462,221,463

843,813,126

19,901,617

863,714,743

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORT
EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES
Consolidated Statements of Direct Cash Flows for the periods between January 1 and December 31, 2019 and 2018

Cash flows provided by (used in) Operating Activities

Cash flows provided by Operating Activities

Receipts from the sale of goods and the rendering of services (including taxes)

Payments for Operating Activities

Payments to suppliers for goods and services (including taxes)

Payments to and on behalf of employees

Other payments for operating activities (value-added taxes on purchases, sales and others)

Dividends received

Interest payments

Interest received

Income tax payments

Other cash movements (tax on bank debits Argentina and others)

Cash flows provided by (used in) Operating Activities

Cash flows provided by (used in) Investing Activities

Contributions made in associates

Proceeds from sale of Property, plant and equipment

Purchase of Property, plant and equipment

Purchase of intangible assets

Proceeds from other long-term assets (redemption of term deposits over 90 days)

Payments on forward, term, option and financial exchange agreements

Collection on forward, term, option and financial exchange agreements

Other payments on the purchase of financial instruments

Net cash flows used in Investing Activities

Cash Flows generated from (used in) Financing Activities

Loan payments

Lease liability payments

Dividend payments by the reporting entity

Other inflows (outflows) of cash (Placement and payment of public obligations)

Net cash flows (used in) generated by Financing Activities

Net increase in cash and cash equivalents before exchange differences

Effects of exchange differences on cash and cash equivalents

Net decrease in cash and cash equivalents

Cash and cash equivalents – beginning of period

Cash and cash equivalents - end of period

The accompanying notes form
an integral part of these Con-
solidated Financial Statements

01.01.2019

01.01.2018

NOTE

12.31.2019

12.31.2018

CLP (000’s)

2,626,374,510

2,296,830,656

(1,802,751,639)

(1,526,444,730)

(203,681,853)

(199,460,816)

(292,958,045)

(267,827,342)

411,041

601,022

(36,141,477)

(41,353,013)

1,539,120

3,545,313

(34,198,767)

(29,904,176)

(3,444,416)

(707,552)

255,148,474

235,279,362

(15,615,466)

18,904

260,116

(110,683,258)

(121,063,273)

(448,307)

13,883,132

1,135,034

6,403,152

(70,373)

(1,953,309)

(110,048,000)

(118,085,648)

(24,035,552)

(14,384,131)

(2,989,457)

(2,395,966)

(86,265,896)

(87,535,698)

(13,821,732)

(10,319,483)

(127,112,637)

(114,635,278)

17,987,837

2,558,436

4,048,168

3,574,340

(2,006,632)

(4,836,279)

20,029,373

1,296,497

137,538,613

136,242,116

157,567,986

137,538,613

EMBOTELLADORA ANDINA CHILE S.A.

RUT: 76.070.406-7

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

ThCh$

2018

ThCh$

19,362

8,270

52,454,914

59,041,413

52,474,276

59,049,683

14,197,314

22,810,544

-570,806

36,239,123

34,287,329

2,037,839

1,951,810

52,474,276

59,049,683

2,898,833

-496,633

2,402,200

-364,361

2,037,839

3,026,715

-738,154

2,288,561

-336,751

1,951,810

-3,960,370

5,506,384

3,971,987

-5,504,110

2,631

14,248

357

2,631

RUT: 93.899.000-K

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

18,534,272

16,005,424

15,475,979

16,969,708

34,010,251

32,975,132

11,150,695

11,018,878

274,583

28,298

21,832,281

21,153,490

752,692

774,466

34,010,251

32,975,132

1,067,195

1,001,894

-133,240

933,955

-181,263

752,692

-45,393

956,501

-182,035

774,466

2,629,740

-1,801,136

-347,380

15,886

2,083,739

4,381,985

-4,466

-3,209

3,892,549

2,083,739

RUT: 76.389.720-6

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

5,266,575

8,527,624

13,794,199

5,794,282

2,615,188

4,616,490

5,287,639

9,904,129

3,803,117

171,184

5,068,698

5,820,289

316,031

109,539

13,794,199

9,904,129

589,243

-144,576

444,667

-128,636

316,031

185,324

-388,825

-2,757

243

931,592

725,577

176,171

-61,366

114,805

-5,266

109,539

208,638

88,674

-1,739

-1,036

637,055

931,592

RUT: 96.705.990-0

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

2019

2018

CLP (000’s)

16,265,862

13,737,336

20,903,184

12,239,333

37,169,046

25,976,669

18,732,369

13,063,735

5,796,119

1,041,400

11,343,718

11,983,836

1,296,840

-112,302

37,169,046

25,976,669

1,933,871

-284,777

1,649,094

-352,254

1,296,840

36,769

-283,128

-246,359

134,057

-112,302

2,208,142

2,666,065

-821,153

-751,783

-54,908

697,380

-1,239,219

-734,583

432

4,685

Balance cash and cash equivalents

1,277,678

697,380

RUT: 78.861.790-9

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

6,321,807

5,030,924

22,071,216

20,806,062

28,393,023

25,836,986

13,009,373

11,926,316

3,188,181

9,164,157

3,031,312

2,812,062

6,867,109

4,231,499

28,393,023

25,836,986

5,300,037

5,571,344

-375,510

4,924,527

147,986

5,719,330

-1,893,215

-1,487,831

3,031,312

4,231,499

10,222,386

9,946,817

-8,352,546

-7,231,059

-1,807,096

-2,684.,739

64,914

127,657

64,914

RUT: 78.536.950-5

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

1,507,507

502,480

2,009,987

931,376

59,234

902,012

117,365

1,531,192

660,967

2,192,159

1,254,621

35,364

839,417

62,757

2,009,987

2,192,159

148,173

5,609

153,782

-36,417

117,365

79,683

2,747

82,430

-19,673

62,757

-9,346,861

-4,989,861

-117,730

9,479,195

182,555

197,158

1,490,770

3,556,583

125,063

182,555

RUT: 96.842.970-1

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

(1) Inversiones Los Andes Ltda. (ILA) se fusionó en Andina Bottling Investments S.A. (ABISA)

2019

2018

CLP (000’s)

11,224,575

2,361

740,560,722

433,239,566

751,785,297

433,241,927

12,865,896

2,483

716,236,570

415,085,837

22,682,831

18,153,607

751,785,297

433,241,927

-495,792

-387,493

23,178,623

18,541,100

22,682,831

18,153,607

22,682,831

18,153,607

-13,733

-101,069

55,147

2,361

43,775

102,557

873

2,361

RUT: 96.972.760-9

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

363,579,906

255,925,557

328,827,154

267,098,850

692,407,060

523,024,407

894,817

-379,357

377,044,214

579,687,762

132,774,782

112,203,838

13,205,411

692,407,060

523,024,407

-408,056

-274,446

117,146,038

17,170,351

116,737,982

16,895,904

-4,534,145

-3,690,494

112,203,838

13,205,410

261,870

-303,535

-53,014

18,328

227,183

312,122

9,741

18,328

RUT: 96.836.750-1

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

347,305

313,828

31,290,917

30,576,986

31,638,221

30,890,814

10,003

10,568

30,244,033

30,013,931

1,384,185

866,315

31,638,221

30,890,814

-9,228

1,372,029

1,362,801

21,384

-93,584

959,906

866,322

-7

1,384,185

866,315

-19,481

-184,577

1,634

34,735

16,888

1,093

218,219

34,735

CNPJ: 00.074.569/0001-00

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

171,349,293

135,259,768

786,979,234

679,183,347

958,328,527

814,443,115

124,248,587

128,146,943

506,297,573

420,218,066

244,637,973

229,207,313

83,144,394

36,870,792

958,328,527

814,443,115

93,737,398

75,412,555

26,228,373

-28,452,775

119,965,771

46,959,780

-36,821,377

-10,088,988

83,144,394

36,870,792

63,392,475

44,949,860

-21,343,312

-32,536,213

-25,654,792

-5,099,823

1,754,638

-1,073,404

28,040,970

21,800,551

46,189,979

28,040,970

CUIT: 30-52913594-3

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

73,309,861

78,222,876

160,885,628

156,224,157

234,195,489

234,447,033

66,987,371

82,148,269

12,732,620

15,897,476

129,943,683

115,096,882

24,531,815

21,304,406

234,195,489

234,447,033

31,345,849

35,341,079

-176,488

3,460,256

31,169,361

38,801,335

-6,637,546

-17,496,929

24,531,815

21,304,406

29,642,160

28,560,174

-23,616,114

-27,428,696

-616,475

-467,414

-10,644,812

-3,494,326

6,691,037

19,698,698

11,633,194

6,691,037

CUIT: 30-71213488-3

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

4,350,074

9,433,294

4,329,932

9,251,800

13,783,368

13,581,732

2,212,255

618,031

8,999,058

1,954,024

2,309,810

1,169,270

9,643,672

458,980

13,783,368

13,581,732

2,932,310

-713,567

2,218,743

-264,719

1,954,024

3,017,688

-1,181,183

1,836,505

-1,377,525

458,980

798,601

339,283

-1,174,638

-1,272,037

560,700

98,963

283,626

38,141

993,576

98,963

N° DE REGISTRO: 512410 / RUT: 59.144.140-K

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

318,439,511

317,440,017

318,439,511

317,440,017

288,330

288,359

317,151,687

315,912,102

999,495

1,239,556

318,439,511

317,440,017

999,495

208,000

1,031,556

1,239,556

999,495

1,239,556

-961

2,272

1,406

-612

162

2,722

2,272

RUT: 96.928.520-7

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

808,327

7,074,398

7,882,725

3,114,075

1,298,051

2,365,549

1,105,050

7.882,725

406,520

7,249,659

7,656,179

2,992,765

1,299,350

2,397,534

966,530

7,656,179

1,518,307

1,329,724

-314

1,517,993

-412,943

1,105,050

1,512,634

-484,683

-998,514

7,037

36,474

10,463

1,340,187

-373,657

966,530

1,027,231

-327,465

-797,797

105,068

7,037

N° DE REGISTRO: 569101

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

21,856,527

8,906

8,908

21,847,621

21,847,619

21,856,527

RUT: 80.003.400-7

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

41,266,559

37,309,706

248,309,451

248,751,791

289,576,010

286,061,496

25,990,081

21,870,719

16,161,177

16,323,385

218,749,025

222,237,028

28,675,727

25,630,364

289,576,010

286,061,496

33,393,186

29,860,172

-112,728

371,066

33,280,459

30,231,238

-4,604,732

-4,600,874

28,675,727

25,630,364

16,010,813

11,394,620

-13,454,124

-9,684,466

-489,302

-53,673

-330,067

941,206

11,101,685

8,780,393

13,115,400

11,101,685

RUT: 76.276.604-3

Ended at December 31, 2019 and 2018

BALANCE SHEET

Assets

Current assets

Non-current assets

Total assets

Liabilities

Current liabilities

Non-current liabilities

Capital and reserves

Profit (loss) for the fiscal year

Total liabilities and equity

STATEMENT OF INCOME

Operating income

Non-operating income

Income (loss) before taxes

Income tax expenses

Profit (Loss))

STATEMENT OF CASH FLOWS

Operating cash flow

Investment cash flow

Financing cash flow

Effects of exchange rate variation on cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Balance cash and cash equivalents

2019

2018

CLP (000’s)

2,503,234

487,976

2,991,210

1,411,365

31,091

1,319,594

229,160

2,991,210

233,020

-114,038

118,982

110,178

229,160

80,769

29,723

-30,448

450,227

530,271

2,526,991

377,646

2,904,637

1,811,657

118,691

1,390,115

-415,826

2,904,637

-199,875

-61,123

-260,998

-154,828

-415,826

77,611

15,745

-32,767

389,637

450,227

HOME1ANDINA AT A GLANCE3SUSTAINABLE VALUECREATION STRATEGY4VALUE CREATION 5WE OPERATE WITHINTEGRITY2OUR HISTORY6OUR PRINCIPAL METRICS7CORPORATEINFORMATION8EXHIBITS2019 INTEGRATED ANNUAL REPORTHOME

ANALYSIS OF THE
FINANCIAL STATEMENTS

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ANDINA AT A GLANCE

OUR HISTORY

SUSTAINABLE VALUE
CREATION STRATEGY

VALUE CREATION

WE OPERATE WITH
INTEGRITY

OUR PRINCIPAL METRICS

CORPORATE
INFORMATION

EXHIBITS

ACCUMMULATED RESULTS: as of the 4th Quarter 2019 vs. accumulated results as of the 4th Quarter 2018
Figures of the following analysis are set according to IFRS, in nominal Chilean pesos, both for consolidated results and for the results of each
of our operations. All variations with respect to 2018 are nominal. It is worth mentioning that the devaluation of local currencies with respect
to the U.S. dollar has a negative impact on our dollarized costs and that the devaluation of local currencies with respect to the Chilean peso
has a negative impact on the consolidation of figures. In addition, according to IAS 29, for the Argentine case, the translation of figures from
the local currency to the reporting currency was carried out using closing exchange rates for the translation to Chilean pesos of 12.5 CLP/ARS,
which is compared to 18.4 CLP/ARS for the same period of the previous year, thus generating a negative impact on the consolidation of
figures. Argentina's figures in local currency referred to in this section, for both 2018 and 2019, are all expressed in December 2019 currency.
The following table shows the exchange rates used:

Exchange rates used

Local currency /USD
(Average Exchange rate)

CLP/local currency
(Average Exchange rate*)

Argentina
Brazil
Chile
Paraguay
*Except Argentina, where the closing exchange rate is used, pursuant to IAS 29

FY19
48.2
3.95
703
6,240

FY18
28.1
3.65
638
5,732

FY18
18.4
174.6
N.A.
0.11

FY19
12.5
178.1
N.A.
0.11

Consolidated Results
Consolidated Sales Volume reached 746.4 million unit cases, representing a 0.6% decrease with respect to the same period of 2018, mainly
explained by the volume decrease in the Argentine franchise, partly offset by volume increases in Brazil, Chile and Paraguay. On the other
hand, transactions reached 3,931.2 million, representing a 0.4% increase. Consolidated Net Sales reached CLP 1,779,025 million, an increase
of 6.3%.

Consolidated Cost of Sales increased by 8.3%, which is mainly explained by (i) the effect of greater volume sold in Brazil and Chile, (ii) the
devaluation of the Argentine Peso and Paraguayan Guarani on our dollarized costs, (iii) a greater cost of concentrate in Brazil, and (iv) a shift
in the mix towards products carrying a higher unit cost in Brazil and Chile. The foregoing was partially offset by the lower cost of sugar in the
four countries where we operate, and by lower Sales Volume in Argentina.

Consolidated Distribution Costs and Administrative Expenses increased by 2.8%, which is mainly explained by (i) greater freight costs in Brazil,
Chile and Paraguay, (ii) greater labor costs in Brazil, Chile and Paraguay, and (iii) greater advertising expenses in Brazil, Chile and Paraguay.
This was partially offset by (i) the effect of lower volumes on distribution expenses in Argentina, and (ii) lower labor expenses and services
provided by third parties, which grew below local inflation in Argentina.

The foregoing mentioned impacts, led to a Consolidated Operating Income of CLP 237,781 million, an increase of 5.5%. Operating Margin
was 13.4%.

Consolidated Adjusted EBITDA reached CLP 348,869 million, an increase of 7.4%. Adjusted EBITDA Margin was 19.6%, an expansion of 19
basis points.

Net Income attributable to the owners of the controller was CLP 173,722 million, a 79.8% growth and Net Margin reached 9.8%.

Argentina:
Sales Volume decreased by 11.7% reaching 178.2 million unit cases. On the other hand, transactions reached 842.3 million, which represents
an 8.5% decrease. Net Sales reached CLP 394,636 million, a 4.6% decrease while in local currency, Net Sales decreased by 9.2%, which was
mainly explained by the already mentioned decrease in sales volume, partially offset by price increases performed during the period.

Cost of Sales decreased 0.1%. In local currency it decreased by 4.9%, which is mainly explained by (i) lower sales volume, (ii) lower sugar
costs, and (iii) lower labor costs. This was partly offset by the effect of the devaluation of the Argentine peso on our dollarized costs.

Distribution Costs and Administrative Expenses decreased by 6.9% in the reporting currency. In local currency they decreased by 11.4% which
is mainly explained by (i) the effect of lower volumes over distribution expenses, (ii) lower labor expenses and services provided by third
parties, which grew below local inflation, and (iii) the reversal of a local tax-related provision.

The foregoing mentioned impacts, led to an Operating Income of CLP 32,039 million, a 19.4% decrease. Operating Margin was 8.1%. In local
currency Operating Income decreased by 23.3%.

Adjusted EBITDA reached CLP 57,408 million, a 4.7% decrease. Adjusted EBITDA Margin was 14.5%, a contraction of 2 basis points. On the
other hand, Adjusted EBITDA in local currency decreased by 9.3%.

Brazil
Sales Volume grew by 4.1%, reaching 259.3 million unit cases. The volume growth is explained by the volume growth in the soft drinks, water
and beer categories and partially offset by the volume decrease in the juice category. On the other hand, transactions reached 1,360.7
million, which represents a 6.2% increase. Net Sales reached CLP 619,321 million, a 14.6% increase, mainly explained by the increase in
average prices and greater sales volume. In local currency, Net Sales increased by 13.2% regarding the same period of the previous year,
mainly explained by an increase in average prices and greater sales volume.

Cost of Sales increased by 16.8%, while in local currency it increased by 15.4%, which is mainly explained by (i) greater concentrate costs due
to the decrease of Manaus IPI (lower tax credit) and the price increases we have performed, (ii) greater volume sold, and (iii) the shift in the
mix towards products carrying a greater unit price, such as beer.

Distribution Costs and Administrative Expenses increased by 9.7% in the reporting currency, and in local currency they increased by 8.2%.
This is mainly explained by (i) greater advertising expenses, (ii) greater distribution freight expenses, and (iii) greater labor expenses.

The foregoing mentioned impacts, led to an Operating Income of CLP 90,185 million, a 13.5% increase. Operating Margin was 14.5%. In local
currency, Operating Income increased by 12.3%.

Adjusted EBITDA reached CLP 120,131 million, a 13.0% increase regarding the previous year. Adjusted EBITDA Margin was 19.4%, a
contraction of 27 basis points. In local currency Adjusted EBITDA increased by 11.7%.

Chile
Sales Volume reached 239.6 million unit cases, representing a 3.5% increase, explained by the growth of all categories. On the other hand,
transactions reached 1,314.2 million, representing a 0.6% increase. Net Sales reached CLP 608,952 million, a 6.7% growth, explained by
greater sales volume and the increase in average prices.

Cost of Sales increased by 6.8%, which is mainly explained by greater volume sold and the shift in the mix towards products that carry a
higher unit cost. This was partially offset by a lower cost of sugar.

Distribution Costs and Administrative Expenses increased by 6.2% which is mainly explained by (i) greater labor expenses, (ii) greater
distribution expenses and (iii) greater advertising expenses.

The foregoing mentioned impacts, led to an Operating Income of CLP 87,978 million, 7.1% higher when compared to the previous year.
Operating Margin was 14.4%.

Adjusted EBITDA reached CLP 134,083 million, increasing by 7.7%. Adjusted EBITDA Margin was 22.0%, an expansion of 22 basis points.

Paraguay
Sales Volume reached 69.3 million unit cases, representing an increase of 1.7%, explained by the volume increase of all categories. On the
other hand, transactions reached 414.0 million, which represents a 1.4% increase. Net Sales reached CLP 158,892 million, an increase of
6.2%. In local currency Net Sales increased by 5.1%, which is explained by price increases performed during the period and the already
mentioned increase in Sales Volume.

Cost of Sales increased by 4.0% and in local currency it increased by 2.9%. This is mainly explained by the negative impact of the devaluation
of local currency on our dollarized costs, which was partially offset by the reduction in sweetener costs.

Distribution Costs and Administrative Expenses increased by 7.5% in the reporting currency. In local currency they increased by 6.5%, which
is mainly explained by (i) greater labor expenses, (ii) higher freight expenses, and (iii) greater advertising expenses.

The foregoing effects led to an Operating Income of CLP 32,451 million, 11.6% higher when compared to the previous year. Operating Margin
was 20.4%. In local currency Operating Income increased by 10.0%.

Adjusted EBITDA reached CLP 42,119 million, 7.9% higher when compared to the previous year and Adjusted EBITDA Margin was 26.5%, an
expansion of 42 basis points. In local currency Adjusted EBITDA increased by 6.6%.

NYSE: AKO/A; AKO/B
BOLSA DE COMERCIO DE SANTIAGO: ANDINA-A; ANDINA-B
www.koandina.com

-2-

CONSOLIDATED BALANCE SHEET

The balance of assets and liabilities as of the closing dates of these financial statements are:

Assets
Current assets
Non-current assets
Total Assets

Liabilities
Current liabilities
Non-current liabilities
Total Liabilities

Equity
Non-controlling interests
Equity attributable to the owners of the controller
Total Equity

12.31.2018
CLP million
481,587
1,732,919
2,214,505

12.31.2018
CLP million
419,862
930,928
1,350,790

12.31.2018
CLP million
19,902
843,813
863,715

12.31.2019
CLP million
533,474
1,857,474
2,390,948

12.31.2019
CLP million
411,658
1,010,386
1,422,044

12.31.2019
CLP million
20,254
948,650
968,904

Variation
CLP million
51,887
124,555
176,443

Variation
CLP million
-8,204
79,458
71,255

Variation
CLP million
353
104,836
105,189

At the closing of December 2019, regarding the closing of December 2018, the Argentine peso, and the Paraguayan guarani depreciated
against the Chilean peso, by 47.4% and 0.5%, respectively. This generated a decrease in assets, liabilities and equity accounts, due to the
effect of translation of figures. On the other hand, the Brazilian real appreciated by 3.5% against the Chilean peso, compared to the closing
of 2018, generating an increase in assets, liabilities and equity accounts.

Assets
Total assets increased by CLP 176,443 million, 8.0% compared to December 2018.
Current assets increased by CLP 51,887 million, 10.8% compared to December 2018, which is mainly explained by an increase in Cash and
Cash Equivalents (CLP 20,029 million) and an increase Accounts in Trade Accounts and Other Receivable, current (CLP 16,965 million) mainly
due to the recognition of tax credits in Brazil (short-term).
The mentioned increases are added to the increase in Other Current Non-Financial Assets (CLP 10,240 million) due to the reclassification of
advances to suppliers of Trade Accounts and Other Accounts Receivable, current to this account.

On the other hand, non-current assets increased by CLP 124,555 million, 7.2% compared to December 2018, which is mainly explained by
the increase in Other Non-Current Non-Financial Assets (CLP 90,659 million), mainly due to the recognition of tax credits in Brazil (long-term).
Added to the previous increase is the increase in Other Non-Current Financial Assets (CLP 13,422 million), mainly explained by the effect of
the depreciation of the Brazilian Real against the U.S. dollar during the period, which increased the mark to market of cross currency swaps,
and the increase in Property, Plant and Equipment (CLP 11,948 million). The increase in Property, plant and equipment is due to investments
made in the period (CLP 94,449 million), mainly investments in packaging and cases, market assets (coolers) and other production
investments, and the effect of adopting IAS 16 beginning January 1, 2019 on this item, which has meant recognizing rights-of-use. Property,
plant and equipment increases are partially offset by depreciation.

Liabilities and Equity
In total, liabilities increased by CLP 71,255 million, 5.3% compared to December 2018.
Current liabilities decreased by CLP 8,204 million, 2.0% regarding December 2018, which is explained by the decrease in Other Current
Financial Liabilities (-CLP 15,521 million) mainly due to the decline in net debt between banks and the public, and the decrease in Other
Current Non-Financial Liabilities (-CLP 7,272 million). The mentioned decreases are partially offset by the increase in Current Accounts
Payable to Related Entities (CLP 7,810 million) due to higher accounts payable of our Brazilian subsidiary, and by the increase in Trade
Accounts and Other Accounts Payable, current (CLP 5,591 million).
On the other hand, non-current liabilities increased by CLP 79,458 million, 8.5% compared to December 2018, mainly due to the increase in
Other Non-Current Financial Liabilities (CLP 26,763 million), mainly explained by the debt restatement in UFs and U.S. dollars, and by the
increase in liabilities for the recognition of rights-of-use given the adoption of IAS 16. Added to the previous increase is the increase in
Deferred Tax Liabilities (CLP 24,204 million), which is mainly explained by the recognition of tax credits in Brazil, and the increase in Non-

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-3-

Current Accounts payable to Related Companies (CLP 19,778 million) due to higher accounts payable between our subsidiary in Brazil with
the TCCC subsidiary in the same country, related to the recognition of tax credits in Brazil.
As for total equity, it increased by CLP 105,189 million, 12.2% compared to December 2018, explained by Retained Income (CLP 138,697
million), which are the result of the earnings obtained in the period (CLP 173,722 million), the increase given the application of IAS 29 in
Argentina associated with equity balances (CLP 51,543 million), which are partially offset by dividend payments (-CLP 86,568 million). The
increase in Retained Income was partially offset by the decrease in Other Reserves (-CLP 33,861 million), due to the effect of translating
figures from foreign subsidiaries upon consolidation, due to exchange rate differences.

FINANCIAL ASSETS AND LIABILITIES

Total financial assets amounted to USD 342 million. Excluding the market valuation effect of Cross Currency Swaps ("CCS"), financial assets
amounted to USD 210 million, which are invested in time deposits and short-term fixed income mutual funds. In terms of exposure to
currency, without considering derivatives, financial assets are 37.0% denominated in Chilean pesos, 29.3% in Brazilian real, 22.8% in U.S.
dollars, 8.3% in Paraguayan guarani and 2.6% in Argentine pesos.

Financial debt level reached USD 1,047 million, of which USD 364 million correspond to a bond in the international market, USD 625 million
to bonds in the local Chilean market, and USD 58 million to bank debt. Financial debt, including the CCS effect, is denominated 59.8% in UF,
36.7% in Brazilian real, 2.5% in Chilean pesos, 0.6% in U.S. dollars, 0.1% in Argentine pesos and 0.2% in Paraguayan guarani.

The Company's Net Debt, including the aforementioned CCS effect, reached USD 704 million.

CASH FLOW

Cash Flow
Operating
Investment
Financing
Net Cash Flow for the period

12.31.2018
CLP million
235,279
-118,086
-114,635
2,558

12.31.2019
CLP million
255,148
-110,048
-127,112
17,988

Variation

CLP million
19,869
8,038
-12,477
15,430

%
8.4%
-6.8%
10.9%
603.2%

During the present period, the Company generated a positive net cash flow of CLP 17,988 million, which is explained as follows:

Activo Corriente

Pasivo Corriente

Operating activities generated a positive net cash flow of CLP 255,148 million, higher than the CLP 235,279 million recorded in the same
period of 2018, which is mainly due to higher collections from clients partially offset by higher payments to suppliers.

Investment activities generated a negative cash flow of CLP 110,048 million, with a positive variation of CLP 8,038 million compared to the
previous year, which is mainly explained by lower purchases of property, plant and equipment.

Financing activities generated a negative cash flow of CLP 127,112 million, decreasing CLP 12,477 million regarding the previous year, which
is mainly explained by greater financial expenses in Chile for interest payments.

MAIN INDICATORS

INDICATOR

Definition

Unit

Dec 19

Dec 18

Dec 19 vs
Dec 18

LIQUIDITY

Current Liquidity

Acid Ratio

ACTIVITY

Investments

Current Asset

Current Liability

Times

Current Asset - Inventory

Times

Current Liability

1.3

0.9

1.1

0.8

13.0%

19.2%

CLP million

116,171

128,908

-9.9%

Inventory Turnover

Cost of Sales

Times

7.0

6.8

2.4%

Average Inventory

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-4-

INDEBTEDNESS

Indebtedness Ratio

Financial Expenses
Coverage

Total Liabilities

Times

1.5

1.6

-6.2%

Minority Interest + Equity

EBIT*

Times

225.5

4.0

5,542.4%

Net Debt/Adjusted EBITDA

Net Debt

Times

1.5

1.7

-10.6%

Fin. Expenses – Fin. Income

PROFITABILITY

On Equity

On Total Assets

Adjusted EBITDA*

Net Income for the fiscal year*

Average Equity

Net Income for the Fiscal year*

Average Assets

19.4%

11.8%

7.6 pp

7.5%

4.5%

3.1 pp

*Value corresponds to the sum of the last 12 moving months. Equity corresponds to equity attributable to the owners of the controller. EBIT is the result
before taxes and interest.

Liquidity
Current Liquidity recorded a positive variation of 13.0% regarding December 2018, explained by the 10.8% increase in current assets, which
is mainly explained by the increase in Cash and Cash Equivalents, Current Trade Accounts and Other Accounts Receivable and Other Current
Non-Financial Assets previously mentioned. Added to this is the 2.0% decrease in current liabilities.
Acid Ratio recorded a 19.2% increase regarding December 2018, due to the above-mentioned reasons in addition to a 2.4% decrease in
inventories. Thereby, current assets excluding inventories recorded a 16.8% increase when compared to December 2018.

Activity
At the closing of December 2019, investments reached CLP 116,171 million, representing a 9.9% decrease compared to the closing of 2018.
Of the total of 2019, CLP 21,722 million correspond to the effects of adopting IAS 16, since the standard implied the recognition of right-of-
use for that amount. Excluding the effects of IAS 16, investments decreased by 26.7%, which is mainly explained by lower investments in the
Duque de Caxias plant.
Inventory Turnover reached 7.0x, recording a 2.4% increase versus the closing of 2018, because cost of sales recorded a higher increase
(8.3%) than that of average inventory (5.8%).

Indebtedness
Indebtedness ratio reached 1.5x as of the closing of December 2019, representing a 6.2% decrease regarding the closing of December 2018.
This is due to the 12.2% increase in total equity compared to December 2018, which was partially offset by the 5.3% increase in total liabilities,
mainly because of the effects of recognizing tax credits in Brazil on our non-current liabilities, as previously mentioned.
The Financial Expenses Coverage indicator records an increase of 5,542.4 % when compared to December 2018, mainly due to higher financial
income which is mainly explained by the recognition of tax credit in Brazil, given that the restatement of said credit is accounted for as
financial income.

Net Debt/Adjusted EBITDA was 1.5x, which represents a 10.6% decrease versus December 2018. The foregoing is mainly due to the 7.4%
increase of Adjusted EBITDA added to the 4.1% decrease of Net Debt compared to December 2018, mainly explained by the increase in Cash
and Cash Equivalents and the decrease of Other Current Financial Liabilities.

Profitability
Profitability on Equity reached 19.4%, increasing 7.6 percentage points compared to December 2018. This result is due to the increase in Net
Income for the Fiscal Year was higher than that of Average Equity, showing variations of 79.8% and 9.6%, respectively. Meanwhile,
Profitability on Total Assets was 7.5%, 3.1 percentage points higher than the indicator measured in December 2018, mainly explained by the
increase in Net Income for the Fiscal Year.

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-5-

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ANDINA AT A GLANCE

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CORPORATE
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EXHIBITS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

March 2019
Date of Report (Date of Earliest Event Reported)

Embotelladora Andina S.A.
(Exact name of registrant as specified in its charter)

Andina Bottling Company, Inc.
(Translation of Registrant´s name into English)

Avda. Miraflores 9153
Renca
Santiago, Chile
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F (cid:95) Form 40-F (cid:134)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes (cid:134) No (cid:95)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes (cid:134) No (cid:95)

Indicate by check mark whether the registrant by furnishing the information contained in this Form 6-K is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934

Yes (cid:134) No (cid:95)

CORPORATE NAME
SECURITIES REGISTRY
TAXPAYER I.D.

: EMBOTELLADORA ANDINA S.A.
: 00124
: 91.144.000-8

MATERIAL EVENT

By virtue of the stipulations in Article 9 and subparagraph 2 of Article 10 of Law 18,045, and the provisions in General Rule No. 30,
Section II of the Chilean Superintendence of Securities and Insurance, and being duly empowered to this effect by the Board of
Directors, I hereby report the following regarding Embotelladora Andina S.A. (the “Company”), its business, its securities or tender
offer, as a material event:

The following was resolved, among other matters, at a Company’s Regular Board of Directors’ Meeting held February 28, 2019:

II.

To convene a Regular Shareholders Meeting (the “Meeting”) for April 17, 2019, at 10:00 a.m., at Company’s offices
located at Av. Miraflores Nº9153, Borough of Renca, Santiago.

The following matters will be discussed at the Regular Shareholders Meeting:

2)
3)
4)

5)
6)
7)

The Annual Report, Balance and Financial Statements for the year 2018; as well as the Report of Independent
Auditors with respect to the Financial Statements;
Earnings distribution and dividend payments;
Present Company dividend distribution policy and inform about the distribution and payment procedures utilized;
Determine the compensation for directors, Directors’ Committee members pursuant to article 50 bis of Chilean
Corporation’s Law and of the members of the Audit Committee required by Sarbanes & Oxley Act of the United
States; their annual reports and expenses incurred by both Committees;
Appoint the Company’s independent auditors for the year 2019;
Appoint the Company’s rating agencies for the year 2019;
Report on Board agreements which took place after the last Shareholders Meeting, relating to operations referred
to by article 146 and following of Chilean Corporation’s Law;
Determine the newspaper where regular and special shareholder meetings notices and invitations shall be
published; and
In general, to resolve every other matter under its competency and any other matter of Company interest.

III.

Propose to Shareholders the distribution of a Final Dividend charged against 2018 fiscal year, for the following
amounts:

a) Ch$21.50 (twenty one point fifty Chilean pesos) per each Series A Shares; and
b) Ch$23.65 (twenty-three point sixty five Chilean pesos) per each Series B Shares.

If the Shareholders’ Meeting approves payment of these dividends, they will be paid beginning on May 30, 2019. The
Shareholders’ Registry would close on the fifth business day prior to the payment date, for payment of these dividends.

Propose to Shareholders the distribution of an Additional Dividend on account of accumulated earnings, for the
following amounts:

a) Ch$21.50 (twenty one point fifty Chilean pesos) per each Series A Shares; and
b) Ch$23.65 (twenty-three point sixty five Chilean pesos) per each Series B Shares.

If the Shareholders’ Meeting approves payment of these additional dividends, they will be paid beginning on
August 29, 2019. The Shareholders’ Registry would close on the fifth business day prior to the payment date, for
payment of these dividends.

Santiago, March 1°, 2019.

Jaime Cohen Arancibia
Corporate Legal Officer
Embotelladora Andina S.A.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized, in the city of Santiago, Chile.

SIGNATURES

/s/ Jaime Cohen

EMBOTELLADORA ANDINA S.A.
By:
Name: Jaime Cohen
Title: Chief Legal Officer

Santiago, March 1°, 2019

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

April 2019
Date of Report (Date of Earliest Event Reported)

Embotelladora Andina S.A.
(Exact name of registrant as specified in its charter)

Andina Bottling Company, Inc.
(Translation of Registrant´s name into English)

Avda. Miraflores 9153
Renca
Santiago, Chile
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F (cid:95) Form 40-F (cid:134)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes (cid:134) No (cid:95)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes (cid:134) No (cid:95)

CORPORATE NAME
SECURITIES REGISTRY
TAXPAYER I.D.

:
:
:

EMBOTELLADORA ANDINA S.A.
00124
91.144.000-8

MATERIAL EVENT

By virtue of the stipulations in Article 9 and subparagraph 2 of Article 10 of Law 18,045, and the provisions in General Rule No. 30 of
the Chilean Superintendence of Securities and Insurance, (Comisión para el Mercado Financiero), and being duly empowered to this
effect by the Board of Directors, I hereby report the following regarding Embotelladora Andina S.A. (the “Company”), its business, its
securities or tender offer, as a material event:

The following resolutions were adopted at the General Shareholders’ Meeting held on April 17, 2019, among others:

1. The approval of the Annual Report, Statements of Financial Position and Financial Statements for the year 2019; as well as the

Report of Independent Auditors with respect to the previously mentioned Financial Statements;

2. The approval of earnings distribution and dividend payments;
3. The approval of Company dividend distribution policy and the distribution and payment procedures utilized;
4. The approval of compensation for Directors and members of the Directors’ Committee pursuant to Chilean Corporate Law and
members of the Audit Committee established pursuant to the Sarbanes-Oxley Act; their annual report and expenses incurred by
both Committees;

5. The appointment of Ernst & Young as the Company’s independent auditors for the year 2019;
6. The appointment of Fitch Chile Clasificadora de Riesgo Limitada and International Credit Rating Clasificadora de Riesgo

Limitada as the Company’s local rating agencies and Fitch Ratings, Inc. and Standard Poor’s Global Ratings as the Company’s
international rating agencies, for the year 2019;

7. The approval of the report on Board agreements in accordance with articles 146 and forward of Chilean Corporate Law, regarding

operations that took place after the last General Shareholders’ Meeting; and,

8. The appointment of Diario Financiero, as the newspaper where Company notices and shareholders’ meetings announcements

should be published.

Regarding number 2 above, the Shareholders’ Meeting approved payment of a Final Dividend on account of 2018 Fiscal Year and an
Additional dividend on account of retained earnings in the following amounts:

Final Dividend

Ch$21.50 (twenty one point fifty Chilean pesos) per each Series A Shares; and
Ch$23.65 (twenty-three point sixty five Chilean pesos) per each Series B Shares.

Payment of this final dividend will be available beginning May 30, 2019. The Shareholders’ Registry will close on the fifth business
day prior to payment date.

Additional Dividend

Ch$21.50 (twenty one point fifty Chilean pesos) per each Series A Shares; and
Ch$23.65 (twenty-three point sixty five Chilean pesos) per each Series B Shares.

Payment of this additional dividend will be available beginning August 29, 2019. The Shareholders’ Registry will close on the fifth
business day prior to payment date.

Santiago, April 18, 2019.

Jaime Cohen Arancibia
Corporate Legal Officer
Embotelladora Andina S.A.

SIGNATURES

Santiago, April 18, 2019

/s/ Jaime Cohen

EMBOTELLADORA ANDINA S.A.
By:
Name: Jaime Cohen
Title: Chief Legal Officer

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

April 2019
Date of Report (Date of Earliest Event Reported)

Embotelladora Andina S.A.
(Exact name of registrant as specified in its charter)

Andina Bottling Company, Inc.
(Translation of Registrant´s name into English)

Avda. Miraflores 9153
Renca
Santiago, Chile
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F (cid:95) Form 40-F (cid:134)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes (cid:134) No (cid:95)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes (cid:134) No (cid:95)

CORPORATE NAME
SECURITIES REGISTRY
TAXPAYER I.D.

MATERIAL EVENT

: EMBOTELLADORA ANDINA S.A.
: 00124
: 91.144.000-8

By virtue of the stipulations in Article 9 and subparagraph 2 of Article 10 of Law 18,045, and the provisions in General Rule No. 30 of
Chile’s Superintendence of Securities and Insurance, and being duly empowered to this effect, I hereby report the following regarding
Embotelladora Andina S.A. (the “Company”), its business, its securities or tender offer, as a material event:

On April 24, 2019, the Company´s Board of Directors was informed that Mr. Manuel Arroyo tendered his resignation as member of
the Board. Such resignation is due to personal reasons, and it will be effective immediately.

At the Board´s meeting held on the same date, and pursuant to article 71 of Corporations Law Regulations (Reglamento de Sociedades
Anónimas), the Board of Directors appointed Mr. Roberto Mercadé as his successor, who shall exercise his duties until the next
Ordinary Shareholders Meeting.

Santiago, April 25, 2019

Jaime Cohen Arancibia
Chief Legal Officer
Embotelladora Andina S.A.

SIGNATURES

Santiago, April 25, 2019

/s/ Jaime Cohen

EMBOTELLADORA ANDINA S.A.
By:
Name: Jaime Cohen
Title: Chief Legal Officer

MATERIAL EVENT

CORPORATE NAME
SECURITIES REGISTRY
TAXPAYER I.D.

:
:
:

EMBOTELLADORA ANDINA S.A.
00124
91.144.000-8

By virtue of Article 9 and subparagraph 2 of Article 10 of Law 18,045, and the provisions in General Rule
No. 30 of the Chilean Superintendence of Security and Insurance (Comisión para el Mercado Financiero),
and duly empowered, I hereby report the following information with respect to Embotelladora Andina
S.A. (“Andina” or the “Company”), its business, its securities and their offer, as material event:

I hereby inform that Andina, jointly with Coca-Cola Embonor S.A. (“Embonor”), are currently in
negotiations with Empresa Cooperativa Agrícola y Pisquera Elqui Ltda. and Viña Francisco de Aguirre S.A.
(together, the “Producers”), for purposes of settling the terms and conditions of a distribution agreement
for the distribution of the products of the Producers in the national territory (the “Agreement”). Among
the brands of products to be distributed are Alto del Carmen®, Capel®, Artesanos del Cochiguaz®, Monte
Fraile®, Sensus®, Inca de Oro® and Francisco de Aguirre®, among others.

The eventual execution of the Agreement is part of the Company´s growth and product portfolio
diversification strategy, initiated in 2018, by joining the commercialization and distribution of alcoholic
beverages market.

The eventual execution of the Agreement will be subject to the parties involved reaching an agreement,
and that all corporate and contractual authorizations required are obtained, which will be then duly
informed. Likewise, the financial effects that might be derived from the Agreement will be informed once
the Agreement is subscribed.

Santiago, July 20, 2019.

Jaime Cohen Arancibia
Corporate Legal Officer
Embotelladora Andina S.A.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

August 2019
Date of Report (Date of Earliest Event Reported)

Embotelladora Andina S.A.
(Exact name of registrant as specified in its charter)

Andina Bottling Company, Inc.
(Translation of Registrant´s name into English)

Avda. Miraflores 9153
Renca
Santiago, Chile
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F (cid:95) Form 40-F (cid:134)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes (cid:134) No (cid:95)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes (cid:134) No (cid:95)

CORPORATE NAME
SECURITIES REGISTRY
TAXPAYER I.D.

:
:
:

EMBOTELLADORA ANDINA S.A.
00124
91.144.000-8

MATERIAL EVENT

By virtue of Article 9 and subparagraph 2 of Article 10 of Law 18,045, and the provisions in General Rule No. 30 of the Comisión
para el Mercado Financiero, and duly empowered, I hereby report the following information with respect to Embotelladora Andina
S.A. (“Andina” or the “Company”), as a material event:

I hereby inform that today, Andina, on one side, and Empresa Cooperativa Agrícola y Pisquera Elqui Ltda. and Viña Francisco de
Aguirre S.A. (both together, the “Producers”), on the other, entered into a Distribution Agreement for the distribution of the products
of the Producers in the Chilean territories of the Metropolitan Region, the Province of San Antonio and the Province of Cachapoal, as
well as the Regions of Antofagasta, Atacama, Coquimbo, Aysén and Magallanes (the “Agreement”). Among the brands of products to
be distributed are Alto del Carmen , Capel , Artesanos del Cochiguaz , Monte Fraile , Sensus , Inca de Oro and Francisco de
Aguirre , among others.

The Agreement is part of the Company´s growth and product portfolio diversification strategy, initiated in 2018, by joining the
commercialization and distribution of alcoholic beverages market.

Considering that the incremental sales volume of this transaction and the selling price of the products to be distributed are still
unknown, it is not possible for us to determine the potential effect of the Agreement on the Company's financial statements.

Santiago, August 21, 2019.

Jaime Cohen Arancibia
Corporate Legal Officer
Embotelladora Andina S.A.

SIGNATURES

Santiago, August 21, 2019

EMBOTELLADORA ANDINA S.A.

/s/ Jaime Cohen

By:
Name: Jaime Cohen
Title: Chief Legal Officer

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

October 2019
Date of Report (Date of Earliest Event Reported)

Embotelladora Andina S.A.
(Exact name of registrant as specified in its charter)

Andina Bottling Company, Inc.
(Translation of Registrant´s name into English)

Avda. Miraflores 9153
Renca
Santiago, Chile
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F (cid:95) Form 40-F (cid:134)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes (cid:134) No (cid:95)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes (cid:134) No (cid:95)

CORPORATE NAME
SECURITIES REGISTRY
TAXPAYER I.D.

: EMBOTELLADORA ANDINA S.A.
:
:

00124
91.144.000-8

MATERIAL EVENT

INTERIM DIVIDEND

As authorized by the Regular Shareholders’ Meeting held April 17, 2019, the Board of Directors during session held September 24,
2019, agreed to distribute the following amounts as interim dividend:

a) Ch$21.50 (twenty one point fifty Chilean pesos) per each Series A Shares; and

b) Ch$23.65 (twenty-three point sixty five Chilean pesos) per each Series B Shares.

This dividend will be paid on account of income from the 2019 fiscal year and will be available to shareholders beginning October 24,
2019. The Shareholders’ Registry will close on the fifth business day prior to the payment date.

Santiago, October 1, 2019

Jaime Cohen Arancibia
Chief Legal Officer
Embotelladora Andina S.A.

SIGNATURES

Santiago, October 1, 2019

EMBOTELLADORA ANDINA S.A.

/s/ Jaime Cohen

By:
Name:Jaime Cohen
Title: Chief Legal Officer

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

December 2019
Date of Report (Date of Earliest Event Reported)

Embotelladora Andina S.A.
(Exact name of registrant as specified in its charter)

Andina Bottling Company, Inc.
(Translation of Registrant´s name into English)

Avda. Miraflores 9153
Renca
Santiago, Chile
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F (cid:95) Form 40-F (cid:134)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes (cid:134) No (cid:95)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes (cid:134) No (cid:95)

CORPORATE NAME
SECURITIES REGISTRY
TAXPAYER I.D.

:
:
:

EMBOTELLADORA ANDINA S.A.
00124
91.144.000-8

MATERIAL EVENT

INTERIM DIVIDEND

As authorized by the Regular Shareholders’ Meeting held April 17, 2019, the Board of Directors during session held December 20,
2019, agreed to distribute the following amounts as interim dividend:

a) Ch$22.60 (twenty two point sixty Chilean pesos) per each Series A Shares; and

b) Ch$24.86 (twenty-four point eighty six Chilean pesos) per each Series B Shares.

This dividend will be paid on account of income from the 2019 fiscal year and will be available to shareholders beginning January 23,
2019. The Shareholders’ Registry will close on the fifth business day prior to the payment date.

Santiago, December 20, 2019

Jaime Cohen Arancibia
Chief Legal Officer
Embotelladora Andina S.A.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized, in the city of Santiago, Chile.

SIGNATURES

EMBOTELLADORA ANDINA S.A.
/s/ Jaime Cohen
By:
Name: Jaime Cohen
Title: Chief Legal Officer

Santiago, December 20, 2019

HOME

CONSOLIDATED FINANCIAL
STATEMENTS AT
12.31.2019 AND 2018

Consolidated Statements
of Financial Position
at December 31, 2019 and 2018

Consolidated Statement of
Changes in Equity for the periods
between January 1 and
December 31, 2019 and 2018

Consolidated Income
Statement by Function for the
periods between January 1 and
December 31, 2019 and 2018

Consolidated Statements of
Direct Cash Flows for the
periods between January 1 and
December 31, 2019 and 2018

Consolidated Statement of
Comprehensive Income for the
periods between January 1 and
December 31, 2019 and 2018

Notes to the
Consolidated Financial
Statements

A
D
A

R
G
E

T
N

L
A
U
N
A

R
O
M
E
M

External Auditor Report

ANDINA AT A GLANCE

OUR HISTORY

SUSTAINABLE VALUE
CREATION STRATEGY

VALUE CREATION

WE OPERATE WITH
INTEGRITY

OUR PRINCIPAL METRICS

CORPORATE
INFORMATION

EXHIBITS

EY Chile
Avda. Presidente
Riesco 5435, piso 4,
Santiago

Tel: +56 (2) 2676 1000

www.eychile.cl

Assurance

Limited
Statement of Embotelladora Andina 2019 Integrated Report (free translation from the original in
Independent Spanish)

To the President and Directors of
Embotelladora Andina

Scope

Our Responsibility

We have performed an
engagement on
Embotelladora Andina 2019 Integrated Report.

independent

the

information and data presented

limited assurance
in

Preparation of the Integrated Report is the responsibility of the
Management of Embotelladora Andina. The Management of
Embotelladora Andina is also responsible for the data and
affirmations included in the Integrated Report, definition of the
scope and management and control of the information systems
that have provided the reported information.

Standards and Assurance Procedures

Our review has been performed in accordance with the
International Standard on Assurance Engagements ISAE 3000,
established by the International Auditing and Assurance Board of
the International Federation of Accountants and the version GRI
Standards of the guidelines for the preparation of sustainability
reports under the Global Reporting Initiative (GRI).

We conducted our assurance procedures in order to:

► Determine whether the information and data presented in
Integrated Report are duly supported by

the 2019
evidence.

► Verify the traceability of the information disclosed by
Embotelladora Andina in its 2019 Integrated Report.

► Determine whether Embotelladora Andina has prepared its
2019 Integrated Report in accordance with the Content and
Quality Principles of the GRI Standards.

► Confirm Embotelladora Andina self-declared “Core” option

of the GRI Standards to its report.

Work Performed

the
Our assurance procedures
Management of Embotelladora Andina
the
development of the Integrated Report process, in addition to
other analytical procedures and sampling methods as described
below:

included enquiries
involved

to
in

Our responsibility is limited to the procedures mentioned above,
corresponding to a limited assurance which is the basis for our
conclusions.

Conclusions

Subject to our limitations of scope noted previously and based
on our procedures for this limited assurance of Embotelladora
Andina Integrated Report, we conclude that nothing has come
to our attention that would cause us to believe that:

► The information and data disclosed in Embotelladora
Andina 2019 Integrated Report are not presented fairly.

► Embotelladora Andina 2019 Integrated Report has not
been prepared in accordance with the GRI Standards for
the preparation of sustainability reports under the Global
Reporting Initiative.

► The Embotelladora Andina self-declared option does not
meet the GRI Standards requirements for this option.

Improvement Recommendations

Without affecting our conclusions as set out above, we have
detected some improvement opportunities for Embotelladora
Andina 2019 Integrated Report, which are detailed in a
recommendations report presented to Embotelladora Andina
Administration.
.

Truly Yours,

EY Consulting SpA

►

Interviews with key Embotelladora Andina personnel to
assess the 2019 Integrated Report preparation process,
the definition of its content and its underlying information
systems.

Elanne Almeida

March 23th, 2020
I-00616/16

► Review

of
Embotelladora Andina.

supporting

documents

provided

► Review of formulas and calculations by recalculation.

► Review of the 2019 Integrated Report to ensure its
phrasing and format does not mislead the reader regarding
the information presented.

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

December 2019
Date of Report (Date of Earliest Event Reported)

Embotelladora Andina S.A.
(Exact name of registrant as specified in its charter)

Andina Bottling Company, Inc.
(Translation of Registrant´s name into English)

Avda. Miraflores 9153
Renca
Santiago, Chile
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F (cid:95)(cid:3)Form 40-F (cid:133)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes (cid:133)(cid:3)No (cid:95)

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes (cid:133)(cid:3)No (cid:95)

Indicate by check mark whether the registrant by furnishing the information contained in this Form 6-K is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes (cid:133)(cid:3)No (cid:95)

Consolidated Financial Statements
EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Santiago, Chile
as of December 31, 2019, and December 31, 2018

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Financial Statements

Independent auditor´s report

I.
II. Consolidated Statements of Financial Position as of December 31, 2019 and 2018
III. Consolidated Statements of Income by Function For the periods ended December 31, 2019 and 2018
IV. Consolidated Statements of Comprehensive Income For the periods ended December 31, 2019 and 2018
V. Consolidated Statements of Changes in Equity For the periods ended December 31, 2019 and 2018
VI. Consolidated Statements of Direct Cash Flows For the periods ended December 31, 2019 and 2018
VII.Notes to the Consolidated Financial Statements

Corporate information
Presentation bases of consolidated financial statements and applicable accounting criteria
Financial information by segment
Cash and cash equivalents
Other financial assets, current and non-current
Other non-financial assets, current and non-current
Trade debtors
Inventory
Tax assets and liabilities
Income tax and deferred taxes
Property, plant and equipment
Related parties
Employee benefits, current and non-current
Investments accounted for using the equity method
Intangible assets other than goodwill

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16. Goodwill
17. Other financial liabilities, current and non-current
18.
19. Other provisions, current and non-current
20. Other non-financial liabilities
21.
22. Assets and liabilities for derivative instruments
23.
24.
25.
26. Other income
27. Other expenses by function
28.
Income and financial costs
29. Other (loss) gains
30.
31.
32.

Litigations and contingencies
Financial risk management
Expenses by nature

Local and foreign currency
Environment
Subsequent events

Trade accounts payable and other accounts payable

Equity

1
3
4
5
6
7

7
8
28
31
31
32
33
34
35
35
38
41
43
45
47
49
49
61
61
62
62
66
68
72
76
76
76
77
77
78
82
82

Independent Auditor’s Report
(Translation of the report originally issued in Spanish)

To Shareholders and Directors
Embotelladora Andina S.A.

We have audited the accompanying consolidated financial statements of Embotelladora Andina S.A. and subsidiaries (“the
Company”), which comprise the consolidated statement of financial position as of December 31, 2019 and 2018, and the related
consolidated statements of comprehensive income, changes in shareholders’ equity, and cash flows for the years then ended, and
the related notes to the consolidated financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with
International Financial Reporting Standards; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due
to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits
in accordance with auditing standards generally accepted in Chile. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as
well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion on the Regulatory Basis of Accounting

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position
of Embotelladora Andina S.A. and subsidiaries as of December 31, 2019 and 2018, and the results of their operations and their cash
flows for the years then ended in accordance with International Financial Reporting Standards.

Tatiana Ramos S.
EY Audit SpA

Santiago February 25, 2020

Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

As of December 31, 2019, and 2018

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Financial Position

ASSETS

Current assets:

Cash and cash equivalents
Other financial assets
Other non-financial assets
Trade and other accounts receivable, net
Accounts receivable from related companies
Inventory
Current tax assets
Total Current Assets

Non-Current Assets:
Other financial assets
Other non-financial assets
Trade and other receivables
Accounts receivable from related parties
Investments accounted for under the equity method
Intangible assets other than goodwill
Goodwill
Property, plant and equipment
Deferred tax assets
Total Non-Current Assets
Total Assets

NOTE

12.31.2019
CLP (000’s)

12.31.2018
CLP (000’s)

4
5
6
7
12.1
8
9

5
6
7
12.1
14
15
16
11
10.2

157,567,986
347,278
16,188,965
191,077,588
10,835,768
147,641,224
9,815,294
533,474,103

137,538,613
683,567
5,948,923
174,113,323
9,450,263
151,319,709
2,532,056
481,586,454

110,784,311
125,636,150
523,769
283,118
99,866,733
675,075,375
121,221,661
722,718,863
1,364,340
1,857,474,320
2,390,948,423

97,362,295
34,977,264
1,270,697
74,340
102,410,945
668,822,553
117,229,173
710,770,968
-
1,732,918,235
2,214,504,689

The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Financial Position

LIABILITIES AND EQUITY

LIABILITIES
Current Liabilities:
Other financial liabilities
Trade and other accounts payable
Accounts payable to related parties
Provisions
Income taxes payable
Employee benefits current provisions
Other non-financial liabilities
Total Current Liabilities

Other financial liabilities, non-current
Accounts payable, non-current
Accounts payable to related companies, non-current
Other provisions, non-current
Deferred tax liabilities
Employee benefits non-current provisions
Non-Current Liabilities:

Equity:
Issued capital
Retained earnings
Other reserves
Equity attributable to equity holders of the parent
Non-controlling interests
Total Equity
Total Liabilities and Equity

NOTE

12.31.2019
CLP (000’s)

12.31.2018
CLP (000’s)

17
18
12.2
19
9
13
20

17
18
12.2
19
10.2
13

40,593,878
243,700,553
53,637,601
2,068,984
6,762,267
38,392,854
26,502,215
411,658,352

743,327,057
619,587
19,777,812
67,038,566
169,449,747
10,173,354
1,010,386,123

56,114,977
238,109,847
45,827,859
3,485,613
9,338,612
33,210,979
33,774,214
419,862,101

716,563,778
735,665
-
58,966,913
145,245,948
9,415,541
930,927,845

270,737,574
600,918,265
76,993,851
948.649.690
20,254,258
968,903,948
2,390,948,423

270,737,574
462,221,463
110,854,089
843,813,126
19,901,617
863,714,743
2,214,504,689

The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Income by Function
For the periods ended

Net sales
Cost of sales
Gross Profit
Other income
Distribution expenses
Administrative expenses
Other expenses
Other (loss) gains
Financial income
Financial expenses
Share of profit (loss) of investments in associates and joint ventures accounted
for using the equity method
Foreign exchange differences
Income by indexation units
Net income before income taxes
Income tax expense
Net income

Net income attributable to
Owners of the controller
Non-controlling interests
Net income

Earnings per Share, basic and diluted
Earnings per Series A Share
Earnings per Series B Share

NOTE

26
25
25
27
29
28
28

14.3

10.1

01.01.2019
12.31.2019
CLP (000’s)
1,779,025,115
(1,048,343,767)
730,681,348
40,947,158
(166,996,289)
(325,903,809)
(26,182,847)
2,876
45,155,791
(46,209,020)

01.01.2018
12.31.2018
CLP (000’s)
1,672,915,799
(968,027,774)
704,888,025
2,609,168
(165,775,484)
(313,742,853)
(16,057,763)
(2,707,859)
3,940,244
(55,014,660)

(3,415,083)
(4,130,543)
(7,536,466)
236,413,116
(61,166,891)
175,246,225

1,411,179
(1,449,256)
(5,085,140)
153,015,601
(55,564,855)
97,450,746

173,721,928
1,524,297
175,246,225

96,603,371
847,375
97,450,746

21.5
21.5

CLP

174.79
192.27

97.20
106.92

The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income
For the periods ended

Net income
Other Comprehensive Income:
Components of other comprehensive income that will not be reclassified to net income for
the period, before taxes
Actuarial losses from defined benefit plans
Components of other comprehensive income that will be reclassified to net income for the
period, before taxes
Gain (losses) from exchange rate translation differences
Gain (losses) from cash flow hedges
Income tax related to components of other comprehensive income that will not be
reclassified to net income for the period
Income tax benefit related to defined benefit plans

Income tax related to components of other comprehensive income that will be reclassified
to net income for the period
Income tax related to exchange rate translation differences
Income tax related to cash flow hedges
Other comprehensive income, total
Total comprehensive income
Total comprehensive income attributable to:
Equity holders of the controller
Non-controlling interests
Total comprehensive income

01.01.2019
12.31.2019
CLP (000’s)
175,246,225

01.01.2018
12.31.2018
CLP (000’s)
97,450,746

(379,007)

(63,463)

(41,844,584)
(1,865,233)

(72,455,525)
(13,151,841)

102,332

16,184

9,295,545
683,483
(34,007,464)
141,238,761

2,476,204
2,554,551
(80,623,890)
16,826,856

139,861,690
1,377,071
141,238,761

16,370,635
456,221
16,826,856

The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity
As of December 31, 2019, and 2018 as of December 31, 2019, and 2018

Other reserves
Actuarial
gains or
losses in
employee
benefits

Issued
capital

Reserves for
exchange rate
differences

Cash flow
hedge
reserve

Total Equity
CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)
863,714,743
270,737,574

(1,954,077) 433,151,626

(306,674,528)

(13,668,932)

110,854,089

462,221,463

843,813,126

19,901,617

Other
reserves

Total other
reserves

Retained
earnings

Controlling
Equity

Non-
Controlling
interests

-
-
-
-

-
(32,401,812)
(32,401,812)
-

(1,181,751)
(1,181,751)
-

-
(276,675)
(276,675)
-

-
-
-
-

173,721,928
-
(33,860,238)
-
(33,860,238) 173,721,928
(86,568,579)

173,721,928
(33,860,238)
139,861,690
(86,568,579)

1,524,297
(147,226)
1,377,071
(1,024,430)

175,246,225
(34,007,464)
141,238,761
(87,593,009)

-
-
270,737,574

-
(32,401,812)
(339,076,340)

-
(1,181,751)
(14,850,683)

-
(276,675)

-
-
(2,230,752) 433,151,626

51,543,453
(33,860,238) 138,696,802
600,918,265
76,993,851

51,543,453
104,836,564
948,649,690

-
352,641
20,254,258

51,543,453
105,189,205
968,903,948

Other reserves
Actuarial
gains or
losses in
employee
benefits

Cash flow
hedge
reserve

Reserves for
Total other
exchange rate
differences
Total Equity
reserves
CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)
813,233,349
(1,915,587) 427,137,058 185,049,228 335,523,254 791,310,056
(237,077,572)
79,499,736
79,499,736
-
(1,915,587) 427,137,058 185,049,228 415,022,990 870,809,792
(237,077,572)
892,733,085

(3,094,671)
-
(3,094,671)

Non-
Controlling
interests

21,923,293
-
21,923,293

Controlling
Equity

Retained
earnings

Other
reserves

79,499,736

Issued
capital
CLP (000’s)
270,737,574
-
270,737,574

-
-
-
-

-
(69,596,956)
(69,596,956)
-

-
(10,597,290)
(10,597,290)
-

-
(38,490)
(38,490)
-

-
-
-
-

-
(80,232,736)
(80,232,736)
-

96,603,371
-
96,603,371
(85,475,291)

96,603,371
(80,232,736)
16,370,635
(85,475,291)

847,375
(391,154)
456,221
(2,477,897)

97,450,746
(80,623,890)
16,826,856
(87,953,188)

-
-
270,737,574

-
(69,596,956)
(306,674,528)

23,029
(10,574,261)
(13,668,932)

-
(38,490)

42,107,990
6,037,597
(26,996,666)
(74,195,139)
(1,954,077) 433,151,626 110,854,089 462,221,463 843,813,126

36,070,393
47,198,473

6,014,568
6,014,568

-
(2,021,676)
19,901,617

42,107,990
(29,018,342)
863,714,743

Opening balance as of 01.01.2019
Changes in Equity
Comprehensive Income
Earnings
Other comprehensive income
Comprehensive income
Dividends
Increase (decrease) from other
changes
Total changes in equity
Ending balance as of 12.31.2019

Opening balance as of 01.01.2018
Changes in accounting policies
Restated opening balance
Changes in Equity
Comprehensive Income
Earnings
Other comprehensive income
Comprehensive income, total
Dividends
Increase (decrease) from other
changes
Total changes in equity
Ending balance as of 12.31.2018

The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Consolidated Statements of Direct Cash Flows
As of December 31, 2019, and 2018

Cash flows provided by (used in) Operating Activities

NOTE

Cash flows provided by Operating Activities
Receipts from the sale of goods and the rendering of services (including taxes)
Payments for Operating Activities
Payments to suppliers for goods and services (including taxes)
Payments to and on behalf of employees
Other payments for operating activities (value-added taxes on purchases, sales

and others)

Dividends received
Interest payments
Interest received
Income tax payments
Other cash movements (tax on bank debits Argentina and others)
Cash flows provided by (used in) Operating Activities

Cash flows provided by (used in) Investing Activities
Contributions made in associates
Proceeds from sale of Property, plant and equipment
Purchase of Property, plant and equipment
Purchase of intangible assets
Proceeds from other long-term assets (redemption of term deposits over 90

days)

Payments on forward, term, option and financial exchange agreements
Collection on forward, term, option and financial exchange agreements
Other payments on the purchase of financial instruments
Net cash flows used in Investing Activities

Cash Flows generated from (used in) Financing Activities
Loan payments
Lease liability payments
Dividend payments by the reporting entity
Other inflows (outflows) of cash (Placement and payment of public

obligations)

Net cash flows (used in) generated by Financing Activities
Net increase in cash and cash equivalents before exchange differences
Effects of exchange differences on cash and cash equivalents
Effects of exchange differences on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents – beginning of period
Cash and cash equivalents - end of period

4
4

01.01.2019
12.31.2019
CLP (000’s)

01.01.2018
12.31.2018
CLP (000’s)

2,626,374,510

2,296,830,656

(1,802,751,639) (1,526,444,730)
(199,460,816)

(203,681,853)

(292,958,045)
411,041
(36,141,477)
1,539,120
(34,198,767)
(3,444,416)
255,148,474

(267,827,342)
601,022
(41,353,013)
3,545,313
(29,904,176)
(707,552)
235,279,362

-
18,904
(110,683,258)
(448,307)

(15,615,466)
260,116
(121,063,273)
-

-
1,135,034

(70,373)
(110,048,000)

13,883,132
6,403,152
-
(1,953,309)
(118,085,648)

(24,035,552)
(2,989,457)
(86,265,896)

(14,384,131)
(2,395,966)
(87,535,698)

(13,821,732)
(127,112,637)
17,987,837
4,048,168
(2,006,632)
20,029,373
137,538,613
157,567,986

(10,319,483)
(114,635,278)
2,558,436
3,574,340
(4,836,279)
1,296,497
136,242,116
137,538,613

The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements

EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1 - CORPORATE INFORMATION

Embotelladora Andina S.A. RUT (Chilean Tax Id. N°) 91.144.000-8 (hereinafter “Andina,” and together with its subsidiaries, the
“Company”) is an open stock corporation, whose corporate address and principal offices are located at Miraflores 9153, borough of
Renca, Santiago, Chile. The Company is registered under No. 00124 of the Securities Registry and is regulated by Chile’s Financial
Market Commission (hereinafter “CMF”) and pursuant to Chile’s Law 18,046 is subject to the supervision of this entity. It is also
registered with the U.S. Securities and Exchange Commission (hereinafter “SEC”) and its stock is traded on the New York Stock
Exchange since 1994.

The principal activities of Embotelladora Andina S.A. are to manufacture, bottle, commercialize and/or distribute Coca-Cola
products and brands registered by The Coca-Cola Company (“TCCC”). The Company has operations and is licensed by The Coca-
Cola Company in its territories Chile, Brazil, Argentina and Paraguay. In Chile, the geographic areas in which the Company has
distribution franchises are the Metropolitan Region II Region of Antofagasta, III Region of Atacama, IV Region of Coquimbo, the
Province of San Antonio, V Region of Valparaiso, the province of Cachapoal, VI Region del Libertador General Bernardo
O’Higgins, XI Region de Aysén del General Carlos Ibáñez del Campo; and XII Region of Magallanes and Chilean Antartic.. In
Brazil, its territories include the city of Rio de Janeiro and the central and northern parts of the state of Rio de Janeiro, the city of
Vitória and the whole state of Espirito Santo and the city of Ribeirão Preto and part of the state of Sao Paulo and Minas Gerais. In
Argentina, the territories include Mendoza, Córdoba, San Luis, Entre Ríos, Santa Fe, Rosario, Santa Cruz, Neuquén, El Chubut,
Tierra del Fuego, Río Negro, La Pampa and the western zone of the Province of Buenos Aires. In Paraguay, the franchised territory
covers the whole country. License agreements for the territories in Chile expire in October 2023. In Argentina they expire in 2022;
in Brazil they expire in 2022 and in Paraguay they expire in 2020.

Said licenses are renewable upon the request of the licensee and at the sole discretion of The Coca-Cola Company.

As of the date of these consolidated financial statements, regarding Andina’s principal shareholders, the Controlling Group holds
55.72% of the outstanding shares with voting rights, corresponding to the Series A shares. The Controlling Group is composed of
the Chadwick Claro, Garcés Silva, Hurtado Berger, Said Handal and Said Somavía families, who control the Company in equal
parts.

These Consolidated Financial Statements reflect the consolidated financial position of Embotelladora Andina S.A. and its
subsidiaries, which were approved by the Board of Directors on February 25, 2020.

2 - BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND APPLICATION OF

ACCOUNTING CRITERIA

2.1 Accounting principles and basis of preparation

The Company’s Consolidated Financial Statements for the periods ended December 31, 2019 and 2018, have been prepared in
accordance with the International Financial Reporting Standards (hereinafter "IFRS") issued by the International Accounting
Standards Board (hereinafter "IASB").

These Consolidated Financial Statements have been prepared following the going concern principle by applying the historical cost
method, with the exception, according to IFRS, of those assets and liabilities that are recorded at fair value.

These Consolidated Statements reflect the consolidated financial position of Embotelladora Andina S.A. and its Subsidiaries as of
December 31, 2019 and 2018 and the results of operations for the periods between January 1 and December 31, 2019 and 2018,
together with the statements of changes in equity and cash flows for the periods between January 1 and December 31, 2019 and
2018.

These Consolidated Financial Statements have been prepared based on the accounting records maintained by the Parent Company
and by the other entities that are part of the Company and are presented in thousands of Chilean pesos (unless expressly stated) as
this is the functional and presentation currency of the Company. Foreign operations are included in accordance with the accounting
policies established in Notes 2.5.

2.2 Subsidiaries and consolidation

Subsidiary entities are those companies directly or indirectly controlled by Embotelladora Andina. Control is obtained when the
Company has power over the investee, when it has exposure or is entitled to variable returns from its involvement in the investee
and when it has the ability to use its power to influence the amount of investor returns. They include assets and liabilities, results of
operations, and cash flows for the periods reported. Income or losses from subsidiaries acquired or sold are included in the
Consolidated Financial Statements from the effective date of acquisition through the effective date of disposal, as applicable.

The acquisition method is used to account for the acquisition of subsidiaries. The consideration transferred for the acquisition of the
subsidiary is the fair value of assets transferred, equity securities issued, liabilities incurred or assumed on the date that control is
obtained. Identifiable assets acquired, and identifiable liabilities and contingencies assumed in a business combination are
accounted for initially at their fair values at the acquisition date. Goodwill is initially measured as the excess of the aggregate of the
consideration transferred and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities
assumed. If the consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized
directly in the income statement.

Intercompany transactions, balances and unrealized gains on transactions between Group entities are eliminated. Unrealized losses
are also eliminated. When necessary, the accounting policies of the subsidiaries are modified to ensure uniformity with the policies
adopted by the Group.

The interest of non-controlling shareholders is presented in the consolidated statement of changes in equity and the consolidated
statement of income by function under "Non-Controlling Interest" and “Earnings attributable to non-controlling interests",
respectively.

The consolidated financial statements include all assets, liabilities, income, expenses, and cash flows of the Company and its
subsidiaries after eliminating balances and transaction among the Group’s entities, the subsidiary companies included in the
consolidation are the following:

Company Name

Direct

12.31.2019
Indirect

Ownership interest

Total

Direct

12.31.2018
Indirect

Total

Taxpayer ID
59.144.140-K
Foreign
96.842.970-1
96.972.760-9
Foreign
96.836.750-1
76.070.406-7
Foreign
96.705.990-0
96.971.280-6
Foreign
76.276.604-3
Foreign
78.536.950-5
78.861.790-9
96.928.520-7
76.389.720-6
93.899.000-k

Abisa Corp S.A.
Aconcagua Investing Ltda.
Andina Bottling Investments S.A.
Andina Bottling Investments Dos S.A.
Andina Empaques Argentina S.A.
Andina Inversiones Societarias S.A.
Embotelladora Andina Chile S.A.
Embotelladora del Atlántico S.A.
Envases Central S.A.
Inversiones Los Andes Ltda. (1)
Paraguay Refrescos S.A.
Red de Transportes Comerciales Ltda.
Rio de Janeiro Refrescos Ltda.
Servicios Multivending Ltda.
Transportes Andina Refrescos Ltda.
Transportes Polar S.A.
Vital Aguas S.A.
Vital Jugos S.A.

(1) Company merged into Andina Bottling Investments SA.

99.99
99.28
0.09
0.09
99.98
0.01
-
99.07
-
-
97.75
0.09
99.99
0.09
0.09
-
-
50.00

99.99
99.99
99.99
99.99
99.98
99.99
99.99
99.99
59.27
-
97.83
99.99
99.99
99.99
99.99
99.99
66.50
65.00

-
0.71
99.90
99.90
-
99.98
99.99
0.92
59.27
99.9
0.08
99.90
-
99.90
99.90
99.99
66.50
15.00

99.99
99.28
0.09
0.09
99.98
0.01
-
99.07
-
-
97.75
0.09
99.99
0.09
0.09
-
-
50.00

99.99
99.99
99.99
99.99
99.98
99.99
99.99
99.99
59.27
99.9
97.83
99.99
99.99
99.99
99.99
99.99
66.50
65.00

-
0.70
99.90
99.90
-
99.98
99.99
0.92
59.27
-
0.08
99.90
-
99.90
99.90
99.99
66.50
15.00

2.3 Investments in associates and joint ventures

Ownership interest held by the Group in joint ventures and associates are recorded following the equity method. According to the
equity method, the investment in an associate or joint venture is initially recorded at cost. As of the date of acquisition, the
investment in the statement of financial position is recorded by the proportion of its total assets, which represents the Group's
participation in its capital, once adjusted, where appropriate, the effect of the transactions made with the Group, plus capital gains
that have been generated in the acquisition of the company.

Dividends received from these companies are recorded by reducing the value of the investment and the results obtained by them,
which correspond to the Group according to its ownership, are recorded under the item “Participation in profit (loss) of associates
accounted for by the equity method.”

2.3.1 Investments in Associates

Associates are all entities over which the Group exercises significant influence but does not have control, significant influence is
the power to intervene in the financial and operating policy decisions of the associate, without having control or joint control over
it. The results of these associates are accounted for using the equity method. Accounting policies of the associates are changed,
where necessary, to ensure conformity with the policies adopted by the Company and unrealized gains are eliminated.

2.3.2 Joint arrangements

Joint arrangements are those entities in which the Group exercises control through an agreement with other shareholders and jointly
with them, that is, when decisions on their relevant activities require the unanimous consent of the parties that share control.

Depending on the rights and obligations of the parties, joint arrangements are classified as:

Joint venture: agreement whereby the parties exercising joint control are entitled to the net assets of the entity. Joint
ventures are integrated into the consolidated financial statements by the equity method, as described above.

Joint operation: agreement whereby the parties exercising joint control are entitled to the assets and obligations with
respect to the liabilities related to the agreement. Joint operations are consolidated by proportionally integrating the
assets and liabilities affected by said operation.

To determine the type of joint agreement that derives from a contractual agreement, Group Management evaluates the structure and
legal form of the agreement, the terms agreed by the parties, as well as other relevant factors and circumstances.

Embotelladora Andina does not have joint arrangements that qualify as a joint operation business.

2.4 Financial reporting by operating segment

“IFRS 8 Operating Segments” requires that entities disclose information on the results of operating segments. In general, this is
information that Management and the Board of Directors use internally to assess performance of segments and allocate resources to
them. Therefore, the following operating segments have been determined based on geographic location:

(cid:120) Operation in Chile
(cid:120) Operation in Brazil
(cid:120) Operation in Argentina
(cid:120) Operation in Paraguay

2.5 Functional currency and presentation currency

2.5.1 Functional currency

Items included in the financial statements of each of the entities in the Company are measured using the currency of the primary
economic environment in which the entity operates (“functional currency”). The functional currency of each of the Operations is
the following:

Company

Functional currency

Embotelladora del Atlántico
Embotelladora Andina
Paraguay Refrescos
Rio de Janeiro Refrescos

Argentine Peso (ARS)
Chilean Peso (CLP)
Paraguayan Guaraní (PYG)
Brazil Real (BRL)

Foreign currency-denominated monetary assets and liabilities are converted to the functional currency at the spot exchange rate in
effect on the closing date.

All differences arising from the liquidation or conversion of monetary items are recorded in the income statement, with the
exception of the monetary items designated as part of the hedging of the Group's net investment in a business abroad. These
differences are recorded in another overall result until the disposal of the net investment, at which point they are reclassified to the
income statement. Tax adjustments attributable to exchange differences in these monetary items are also recognized in another
overall outcome.

Non-monetary items that are valued at historical cost in a foreign currency are converted using the exchange rate in effect at the
date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are converted using the exchange
rate in effect at the date on which fair value is determined. Losses or gains arising from the conversion of non-monetary items
measured at fair value are recorded in accordance with the recognition of losses or gains arising from the change in the fair value of
the respective item (e.g., exchange differences arising from items whose fair value gains or losses are recognized in another overall
result or in results are also recognized in another overall result or in results, respectively).

Functional currency in hyperinflationary economies

Beginning July 2018, Argentina's economy is considered as hyperinflationary, according to the criteria established in the
International Accounting Standard No. 29 “Financial information in hyperinflationary economies” (IAS 29). This determination
was carried out based on a series of qualitative and quantitative criteria, including an accumulated inflation rate of more than 100%
for three years. In accordance with IAS 29, the financial statements of companies in which Embotelladora Andina S.A. participates
in Argentina have been retrospectively restated by applying a general price index to the historical cost, in order to reflect the
changes in the purchasing power of the Argentine peso, as of the closing date of these financial statements.

Non-monetary assets and liabilities were restated since February 2003, the last date an inflation adjustment was applied for
accounting purposes in Argentina. In this context, it should be mentioned that the Group made its transition to IFRS on January 1,
2004, applying the attributed cost exemption for Property, plant and equipment.

For consolidation purposes in Embotelladora Andina S.A. and as a result of the adoption of IAS 29, the results and financial
situation of our Argentine subsidiaries were converted to the closing exchange rate (ARS/CLP) as December 31, 2019, in
accordance with IAS 21 "Effects of foreign currency exchange rate variations", when dealing with a hyperinflationary economy.

Whereas the functional and presentation currency of Embotelladora Andina S.A. does not correspond to that of a hyperinflationary
economy, according to the guidelines set out in IAS 29, the re-expression of periods is not required in the consolidated financial
statements of the Group.

Inflation for the periods January to December 2019 and 2018 amounted to 54.85% and 47.6%, respectively. The first-time adoption
of IAS 29 in 2018 resulted in a positive adjustment in the accumulated consolidated results of Embotelladora Andina S.A., for CLP
79,499,736 thousand (net of deferred taxes) as of January 1, 2018.

2.5.2

Presentation currency

The presentation currency is the Chilean peso, which is the functional currency of the parent company, for such purposes, the
financial statements of subsidiaries are translated from the functional currency to the presentation currency as indicated below:

a. Translation of financial statements whose functional currency does not correspond to hyperinflationary economies (Brazil

and Paraguay)

Financial statements measured as indicated are translated to the presentation currency as follows:

(cid:120) The statement of financial position is translated to the closing exchange rate at the financial statement date and the
income statement is translated at the average monthly exchange rates, the differences that result are recognized in
equity under other comprehensive income.

(cid:120) Cash flow income statement are also translated at average exchange rates for each transaction.
(cid:120)

In the case of the disposal of an investment abroad, the component of other comprehensive income (OCI) relating to
that investment is reclassified to the income statement.

b. Translation of financial statements whose functional currency corresponds to hyperinflationary economies (Argentina)

Financial statements of economies with a hyperinflationary economic environment, are recognized according to IAS 29
Financial Information in Hyperinflationary Economies, and subsequently converted to Chilean pesos as follows:

(cid:120) The statement of financial position sheet is translated at the closing exchange rate at the financial statements date;
(cid:120) The income statement is translated at the closing exchange rate at the financial statements date
(cid:120) The statement of cash flows is converted to the closing exchange rate at the date of the financial statements.
(cid:120)

In the case of the disposal of an investment abroad, the component of other comprehensive income (OCI) relating to
that investment is reclassified to the income statement.

2.5.3

Exchange rates

Exchange rates regarding the Chilean peso in effect at the end of each period are as follows:

Date
12.31.2019
12.31.2018

USD

748.74
694.77

BRL

185.76
179.30

ARS

PGY

12.50
18.43

0.116
0.117

2.6

Property, plant, and equipment

The elements of Property, plant and equipment, are valued for their acquisition cost, net of their corresponding accumulated
depreciation, and of the impairment losses they have experienced.

The cost of the items of Property, plant and equipment include in addition to the price paid for the acquisition: i) the financial
expenses accrued during the construction period that are directly attributable to the acquisition, construction or production of
qualified assets, which are those that require a substantial period of time before being ready for use, such as production facilities.
The Group defines a substantial period as one that exceeds twelve months. The interest rate used is that corresponding to specific
financing or, if it does not exist, the weighted average financing rate of the Company making the investment; and ii) personnel
expenses directly related to the construction in progress.

Construction in progress is transferred to operating assets after the end of the trial period when they are available for use, from
which moment depreciation begins.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset only when it is probable that future
economic benefits associated with the items of Property, plant and equipment will flow to the Company and the cost of the item can
be measured reliably. The carrying amount of the replaced part is derecognized. Repairs and maintenance are charged to the
income statement in the reporting period in which they are incurred.

Land is not depreciated since it has an indefinite useful life. Depreciation on other assets is calculated using the straight-line
method to allocate their cost or revalued amounts to their residual values over their estimated useful lives.

The estimated useful lives by asset category are:

Assets
Buildings
Plant and equipment
Warehouse installations and accessories
Furniture and supplies
Motor vehicles
Other Property, plant and equipment
Bottles and containers

Range in years
30-50
10-20
10-30
4-5
5-7
3-8
2-8

The residual value and useful lives of Property, plant and equipment are reviewed and adjusted at the end of each fiscal year, if
appropriate.

When the value of an asset is greater than its estimated recoverable amount, the value is written down immediately to its
recoverable amount.

Gains and losses on disposals of property, plant, and equipment are calculated by comparing the proceeds to the carrying amount
and are charged to other expenses by function or other gains, as appropriate in the statement of comprehensive income.

If there are items available for sale and comply with the conditions of IFRS 5 "Non-current assets held for sale and discontinued
operations" are separated from Property, plant and equipment and are presented within current assets at the lower value between the
book value and its fair value less selling costs.

2.7

Intangible assets and Goodwill

2.7.1

Goodwill

Goodwill represents the excess of the consideration transferred over the Company’s interest in the net fair value of the net
identifiable assets of the subsidiary and the fair value of the non-controlling interest in the subsidiary on the acquisition date. Since
goodwill is an intangible asset with indefinite useful life, it is recognized separately and tested annually for impairment. Goodwill
is carried at cost less accumulated impairment losses.

Gains and losses on the sale of an entity include the carrying amount of goodwill related to that entity.

Goodwill is assigned to each cash generating unit (CGU) or group of cash-generating units, from where it is expected to benefit
from the synergies arising from the business combination. Such CGUs or groups of CGUs represent the lowest level in the
organization at which goodwill is monitored for internal management purposes.

2.7.2

Distribution rights

Distribution rights are contractual rights to produce and/or distribute products under the Coca-Cola brand and other brands in
certain territories in Argentina, Brazil, Chile and Paraguay that were acquired during Business Combination. Distribution rights are
born from the process of valuation at fair value of the assets and liabilities of companies acquired in business combinations.
Distribution rights have an indefinite useful life and are not amortized, (as they are permanently renewed by The Coca-Cola
Company) and therefore are subject to impairment tests on an annual basis.

2.7.3

Software

Carrying amounts correspond to internal and external software development costs, which are capitalized once the recognition
criteria in IAS 38, Intangible Assets, have been met. Their accounting recognition is initially realized for their acquisition or
production cost and, subsequently, they are valued at their net cost of their corresponding accumulated amortization and of the
impairment losses that, if applicable, they have experienced. The aforementioned software is amortized within four years.

2.8

Impairment of non-financial assets

Assets that have an indefinite useful life, such as intangibles related to distribution rights and goodwill, are not amortized and are
tested annually for impairment or more frequently if events or changes in circumstances indicate a potential impairment. Assets that
are subject to amortization are tested for impairment whenever there is an event or change in circumstances indicating that the
carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying value of the asset
exceeds its recoverable amount. The recoverable amount is the greater of an asset’s fair value less costs to sell or its value in use.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
flows (cash generating units - CGU).

Regardless of what was stated in the previous paragraph, in the case of CGUs to which capital gains or intangible assets have been
assigned with an indefinite useful life, the analysis of their recoverability is carried out systematically at the end of each fiscal year.
These indications may include new legal provisions, change in the economic environment that affects business performance
indicators, competition movements, or the disposal of an important part of a CGU.

Management reviews business performance based on geographic segments. Goodwill is monitored at the operating segment level
that includes the different cash generating units in operations in Chile, Brazil, Argentina and Paraguay. The impairment of
distribution rights is monitored geographically in the CGU or group of cash generating units, which correspond to specific
territories for which Coca-Cola distribution rights have been acquired. These cash generating units or groups of cash generating
units are composed of the following segments:

-
-
-

Operation in Chile (excluding the Metropolitan Region, Rancagua Province and San Antonio Province);
Operation in Argentina (North and South region);
Operation in Brazil (State of Rio de Janeiro and Espirito Santo, Ipiranga territories, investment in the Sorocaba associate
and investment in the Leão Alimentos S.A. associate);
Operation in Paraguay

To check if goodwill has suffered a loss due to impairment of value, the Company compares the book value thereof with its
recoverable value, and recognizes an impairment loss, for the excess of the asset's carrying amount over its recoverable amount. To
determine the recoverable values of the CGU, management considers the discounted cash flow method as the most appropriate.

The main assumptions used in the annual test are:

a) Discount rate

The discount rate applied in the annual test carried out in December 2019 was estimated using the CAPM (Capital Asset
Pricing Model) methodology, which allows estimating a discount rate according to the level of risk of the CGU in the country
where it operates. A nominal discount rate before tax is used according to the following table:

Argentina
Chile
Brazil
Paraguay

Discount rates 2019 Discount rates 2018

35.3%
8.5%
11.4%
11.5%

21.2%
8.1%
10.9%
10.1%

Management carries out the process of annual goodwill impairment assessments as of December 31 of each year for each
CGU.

b) Other assumptions

The financial projections to determine the net present value of the future cash flows of the CGUs are modeled based on the
main historical variables and the respective budgets approved by the CGU. In this regard, a conservative growth rate is used,
which reaches 3% for the carbonated beverage category and up to 7% for less developed categories such as juices and waters.
Beyond the fifth year of projection, growth perpetuity rates are established per operation ranging from 1% to 2.5% depending
on the degree of maturity of the consumption of the products in each operation. In this sense, the variables with greatest
sensitivity in these projections are the discount rates applied in the determination of the net present value of projected cash
flows, growth perpetuities and EBITDA margins considered in each CGU.

In order to sensitize the impairment test, variations were made to the main variables used in the model. Ranges used for each of
the modified variables are:

Discount Rate: Increase / Decrease of up to 100 bps as a value in the rate at which future cash flows are discounted to
bring them to present value

Perpetuity: Increase / Decrease of up to 75 bps in the rate to calculate the perpetual growth of future cash flows

EBITDA margin: Increase / Decrease of 100bps of EBITDA margin of operations, which is applied per year for the
projected periods, that is, for the years 2020-2024

The Company conducts impairment analyses on an annual basis, as a result of tests conducted as of December 31, 2019 and 2018,
no signs of impairments in any of the CGUs were identified, assuming conservative EBITDA margin projections in line with
market history.

Despite the deterioration in macroeconomic conditions experienced by the economies of the countries where cash-generating units
operate, the impairment test resulted in recovery values higher than the book values including sensitivity calculations to which it
was submitted.

2.9

Financial instruments

A financial instrument is any contract that results in the recognition of a financial asset in one entity and a financial liability or
equity instrument in another entity.

2.9.1

Financial assets

Pursuant to IFRS 9 “Financial Instruments”, except for certain trade accounts receivable, the Group initially measures a financial
asset at its fair value plus transaction costs, in the case of a financial asset that is not at fair value, reflecting changes in P&L.

According to IFRS 9, financial assets are subsequently measured at (i) fair value with changes in P&L (FVPL), (ii) amortized cost
or (iii) fair value through other comprehensive income (FVOCI). The classification is based on two criteria: (a) the Group's
business model for the purpose of managing financial assets to obtain contractual cash flows; and (b) if the contractual cash flows
of financial instruments represent "solely payments of principal and interest” on the outstanding principal amount (the “SPPI
criterion”).

The subsequent classification and measurement of the Group's financial assets are as follows:

Financial asset at amortized cost for financial instruments that are maintained within a business model with the objective
of maintaining the financial assets to collect contractual cash flows that meet the SPPI criterion. This category includes the
Group’s trade and other accounts receivable.

Financial assets measured at fair value with changes in other comprehensive income (FVOCI), with gains or losses
recognized in P&L at the time of liquidation. Financial assets in this category correspond to the Group's instruments that
meet the SPPI criterion and are kept within a business model both to collect cash flows and to sell.

Other financial assets are classified and subsequently measures as follows:

Equity instruments at fair value with changes in other comprehensive income (FVOCI) without recognizing earnings or
losses in P&L at the time of liquidation. This category only includes equity instruments that the Group intends to keep in
the foreseeable future and that the Group has irrevocably chosen to classify in this category in the initial recognition or
transition.

Financial assets at fair value with changes in P&L (FVPL) include derivative instruments and equity instruments quoted
that the Group had not irrevocably chosen to classify at FVOCI in the initial recognition or transition. This category also
includes debt instruments whose cash flow characteristics do not comply with the SPPI criterion or are not kept within a
business model whose objective is to recognize contractual cash flows or sale.

A financial asset (or, where applicable, a portion of a financial asset or a portion of a group of similar financial assets) is initially
disposed (for example, canceled in the Group's consolidated financial statements) when:

The rights to receive cash flows from the asset have expired,

The Group has transferred the rights to receive the cash flows of the asset or has assumed the obligation to pay all cash
flows received without delay to a third party under a transfer agreement; and the Group (a) has substantially transferred all
risks and benefits of the asset, or (b) has not substantially transferred or retained all risks and benefits of the asset, but has
transferred control of the asset.

2.9.2

Financial Liabilities

Financial liabilities are classified as a fair value financial liability at the date of their initial recognition, as appropriate, with
changes in results, loans and credits, accounts payable or derivatives designated as hedging instruments in an effective coverage.

All financial liabilities are initially recognized at fair value and transaction costs directly attributable are netted from loans and
credits and accounts payable.

The Group's financial liabilities include trade and other accounts payable, loans and credits, including those discovered in current
accounts, and derivative financial instruments.

The classification and subsequent measurement of the Group's financial liabilities are as follows:

Fair value financial liabilities with changes in results include financial liabilities held for trading and financial liabilities
designated in their initial recognition at fair value with changes in results. The losses or gains of liabilities held for trading
are recognized in the income statement.

Loans and credits are valued at cost or amortized using the effective interest rate method. Gains and losses are recognized
in the income statement when liabilities are disposed, as well as interest accrued in accordance with the effective interest
rate method.

A financial liability is disposed of when the obligation is extinguished, cancelled or expires. Where an existing financial liability is
replaced by another of the same lender under substantially different conditions, or where the conditions of an existing liability are
substantially modified, such exchange or modification is treated as a disposal of the original liability and the recognition of the new
obligation. The difference in the values in the respective books is recognized in the statement of income.

2.9.3

Offsetting financial instruments

Financial assets and financial liabilities are offset with the corresponding net amount presenting the corresponding net amount in
the statement of financial position, if:

There is currently a legally enforceable right to offset the amounts recognized, and

It is intended to liquidate them for the net amount or to realize the assets and liquidate the liabilities simultaneously.

2.10

Derivatives financial instruments and hedging activities

The Company and its subsidiaries use derivative financial instruments to mitigate risks relating to changes in foreign currency and
exchange rates associated with raw materials, and loan obligations. Derivatives are initially recognized at fair value on the date a
derivative contract is entered into and are subsequently re-measured at their fair value at each closing date. Derivatives are
accounted as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The method

of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the
nature of the item being hedged.

2.10.1

Derivative financial instruments designated as cash flow hedges

At the inception of the transaction, the group documents the relationship between hedging instruments and hedged items, as well as
its risk management objectives and strategy for undertaking various hedging transactions. The group also documents its
assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are
highly effective in offsetting changes in cash flows of hedged items.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in
other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated
income statement within "other gains (losses)”

Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for
example, when foreign currency denominated financial liabilities are translated into their functional currencies). The gain or loss
relating to the effective portion of cross currency swaps hedging the effects of changes in foreign exchange rates are recognized in
the consolidated income statement within "foreign exchange differences.” When a hedging instrument expires or is sold, or when a
hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in
equity and is recognized when the forecast transaction is ultimately recognized in the consolidated income statement.

2.10.2

Derivative financial instruments not designated for hedging

The fair value of derivative financial instruments that do not qualify for hedge accounting pursuant to IFRS are immediately
recognized in the consolidated income statement under "Other income and losses". The fair value of these derivatives is recorded
under "other current financial assets" or "other current financial liabilities" in the statement of financial position.”

The Company does not use hedge accounting for its foreign investments.

The Company also evaluates the existence of derivatives implicitly in contracts and financial instruments as stipulated by IFRS 9
and classifies them pursuant to their contractual terms and the business model of the group. As of December 31, 2019, the
Company had no implicit derivatives.

2.10.3 Fair value hierarchy

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants on the date of the transaction. Fair value is based on the presumption that the transaction to sell the asset or
to transfer the liability takes place;

-
-

In the asset or liability main market, or
In the absence of a main market, in the most advantageous market for the transaction of those assets or liabilities.

The Company maintains assets related to foreign currency derivative contracts which were classified as Other current and non-
current financial assets and Other current and non-current financial liabilities, respectively, and are accounted at fair value within
the statement of financial position. The Company uses the following hierarchy to determine and disclose the fair value of financial
instruments with assessment techniques:

Level 1: Quote values (unadjusted) in active markets for identical assets or liabilities
Level 2: Valuation techniques for which the lowest level variable used, which is significant for the calculation, is directly or
indirectly observable
Level 3: Valuation techniques for which the lowest level variable used, which is significant for the calculation, is not observable.

During the reporting periods there were no transfers of items between fair value measurement categories. All of which were valued
during the period using Level 2.

2.11

Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. The
cost of finished goods and work in progress includes raw materials, direct labor, other direct costs and manufacturing overhead
(based on operating capacity) to bring the goods to marketable condition, but it excludes interest expense. Net realizable value is
the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Spare parts and production
materials are stated at the lower of cost or net realizable value.

The initial cost of inventories includes the transfer of losses and gains from cash flow hedges, recognized under other
comprehensive income, related to the purchase of raw materials.

Estimates are also made for obsolescence of raw materials and finished products based on turnover and age of the related goods.

2.12

Trade receivables

Trade accounts receivables and other accounts receivable are measured and recognized at the transaction price at the time they are
generated pursuant to IFRS 15, since they do not have a significant financial component, less provision for expected credit losses.
This provision is made applying a value impairment model based on expected credit losses for the following 12 months. The Group
applies a simplified focus for trade receivables, thereby impairment is always recorded referring to expected losses during the
whole life of the asset. The carrying amount of the asset is reduced by the provision of expected credit losses, and the loss is
recognized in administrative expenses in the consolidated income statement by function.

2.13

Cash and cash equivalents

Cash and cash equivalents include cash on hand, bank balances, time deposits and other short-term highly liquid and low risk of
change in value investments and mutual funds with original short-term maturities equal to or less than three months from the date
of acquisition.

2.14

Other financial liabilities

Resources obtained from financial institutions as well as the issuance of debt securities are initially recognized at fair value, net of
costs incurred during the transaction. Then, liabilities are valued by accruing interests in order to equal the current value with the
future value of liabilities payable, using the effective interest rate method.

General and specific borrowing costs directly attributable to the acquisition, construction or production of qualified assets,
considered as those that require a substantial period of time in order to get ready for their forecasted use or sale, are added to the
cost of those assets until the period in which the assets are substantially ready to be used or sold.

2.15

Income tax

The Company and its subsidiaries in Chile account for income tax according to the net taxable income calculated based on the rules
in the Income Tax Law. Subsidiaries in other countries account for income taxes according to the tax regulations of the country in
which they operate.

Deferred income taxes are calculated using the liability method on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the Consolidated Financial Statements, using the tax rates that have been enacted or
substantively enacted on the balance sheet date and are expected to apply when the deferred income tax asset is realized, or the
deferred income tax liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profits will be available against
which the temporary differences can be utilized.

The Company does not recognize deferred income taxes for temporary differences from investments in subsidiaries in which the
Company can control the timing of the reversal of the temporary differences and it is probable that they will not be reversed in the
near future.

2.16

Employee benefits

The Company records a liability regarding indemnities for years of service that will be paid to employees in accordance with
individual and collective agreements subscribed with employees, which is recorded at actuarial value in accordance with IAS 19
“Employee Benefits”.

Results from updated of actuarial variables are recorded within other comprehensive income in accordance with IAS 19.

Additionally, the Company has retention plans for some officers, which have a provision pursuant to the guidelines of each plan.
These plans grant the right to certain officers to receive a cash payment on a certain date once they have fulfilled with the required
years of service.

The Company and its subsidiaries have recorded a provision to account for the cost of vacations and other employee benefits on an
accrual basis. These liabilities are recorded under current non-financial liabilities.

2.17

Provisions

Provisions for litigation and other contingencies are recognized when the Company has a present legal or constructive obligation
as a result of past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be
reliably estimated.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

2.18 Leases

In accordance with IFRS 16 “Leases” Embotelladora Andina analyzes, at the beginning of the contract, the economic background
of the agreement, to determine if the contract is, or contains, a lease, evaluating whether the agreement transfers the right to control
the use of an identified asset for a period of time in exchange for a consideration. Control is considered to exist if the client has i)
the right to obtain substantially all the economic benefits from the use of an identified asset; and ii) the right to direct the use of the
asset.

The Company when operating as a lessee, at the beginning of the lease (on the date the underlying asset is available for use)
records an asset for the right-of-use in the statement of financial position (under Property, plant and equipment) and a lease liability
(under Other financial liabilities). This asset is initially recognized at cost, which includes: i) value of the initial measurement of the
lease liability; ii) lease payments made up to the start date less lease incentives received; iii) the initial direct costs incurred; and iv)
the estimation of costs for dismantling or restoration. Subsequently, the right-of-use asset is measured at cost, adjusted by any new
measurement of the lease liability, less accumulated depreciation and accumulated losses due to impairment of value. The right-of-
use asset is depreciated in the same terms as the rest of similar depreciable assets, if there is reasonable certainty that the lessee will
acquire ownership of the asset at the end of the lease. If such certainty does not exist, the asset depreciates at the shortest period
between the useful life of the asset or the lease term.

On the other hand, the lease liability is initially measured at the present value of the lease payments, discounted at the incremental
loan rate of the Company, if the interest rate implicit in the lease could not be easily determined. Lease payments included in the
measurement of the liability include: i) fixed payments, less any lease incentive receivable; ii) variable lease payments; iii) residual
value guarantees; iv) exercise price of a purchase option; and v) penalties for lease termination.

The lease liability is increased to reflect the accumulation of interest and is reduced by the lease payments made. In addition, the
carrying amount of the liability is measured again if there is a modification in the terms of the lease (changes in the term, in the
amount of payments or in the evaluation of an option to buy or change in the amounts to be paid). Interest expense is recognized as
an expense and is distributed among the periods that constitute the lease period, so that a constant interest rate is obtained in each
year on the outstanding balance of the lease liability.

Short-term leases, equal to or less than one year, or lease of low-value assets are excepted from the application of the recognition
criteria described above, recording the payments associated with the lease as an expense in a linear manner throughout the lease
term. The Company does not act as lessor.

2.19 Deposits for returnable containers

This liability comprises cash collateral, or deposit, received from customers for bottles and other returnable containers made
available to them.

This liability pertains to the deposit amount that is reimbursed when the customer or distributor returns the bottles and containers in
good condition, together with the original invoice. The liability is estimated based on the number of bottles given to clients and
distributors, the estimated number of bottles in circulation, and a historical average weighted value per bottle or containers.
Deposits for returnable containers are presented as a current liability in other financial liabilities because the Company does not
have legal rights to defer settlement for a period in excess of one year. However, the Company does not anticipate any material
cash settlements for such amounts during the upcoming year.

2.20 Revenue recognition

The Company recognizes revenue when control over a good or service is transferred to the client. Control refers to the ability of the
client to direct the use and obtain substantially all the benefits of the goods and services exchanged. Revenue is measured based on
the consideration to which it is expected to be entitled for such transfer of control, excluding amounts collected on behalf of third
parties.

Management has defined the following indicators for revenue recognition, applying the five-step model established by IFRS 15
“Revenue from contracts with customers”: 1) Identification of the contract with the customer; 2) Identification of performance
obligations; 3) Determination of the transaction price; 4) Assignment of the transaction price; and 5) Recognition of revenue.

All the above conditions are met at the time the products are delivered to the customer. Net sales reflect the units delivered at list
price, net of promotions, discounts and taxes.

The revenue recognition criteria of the good provided by Embotelladora Andina corresponds to a single performance obligation
that transfers the product to be received to the customer.

2.21 Contributions of The Coca-Cola Company

The Company receives certain discretionary contributions from The Coca-Cola Company (TCCC) mainly related to the financing
of advertising and promotional programs for its products in the territories where the Company has distribution licenses. The
contribution received from TCCC are recognized in net income after the conditions agreed with TCCC in order to become a
creditor to such incentive have been fulfilled, they are recorded as a reduction in the marketing expenses included in the
Administration Expenses account. Given its discretionary nature, the portion of contributions received in one period does not imply
it will be repeated in the following period.

2.22 Dividend payments

Dividend distribution to Company shareholders is recorded as a liability in the Company’s Consolidated Financial Statements,
considering the 30% minimum dividend of the period’s earnings established by Chilean Corporate Law, unless otherwise agreed in
the respective meeting, by the unanimity of the issued shares.

Interim and final dividends are recorded at the time of their approval by the competent body, which in the first case is normally the
Board of Directors of the Company, while in the second case it is the responsibility of General Shareholders’ Meeting.

2.23 Critical accounting estimates and judgments

The Company makes estimates and judgments concerning the future. Actual results may differ from previously estimated amounts.

In preparing the consolidated financial statements, the Company has used certain judgments and estimates made to quantify some
of the assets, liabilities, income, expenses and commitments.

Following is an explanation of the estimates and judgments that might have a material impact on future financial statements.

2.23.1 Impairment of goodwill and intangible assets with indefinite useful lives

The Company tests annually whether goodwill and intangible assets with indefinite useful life (such as distribution rights) have
suffered any impairment. The recoverable amounts of cash generating units are generating units are determined based on value in
use calculations. The key variables used in the calculations include sales volumes and prices, discount rates, marketing expenses
and other economic factors including inflation. The estimation of these variables requires a use of estimates and judgments as they
are subject to inherent uncertainties; however, the assumptions are consistent with the Company’s internal planning end past
results. Therefore, management evaluates, and updates estimates according to the conditions affecting the variables. If these assets
are considered to have been impaired, they will be written off at their estimated fair value or future recovery value according to the
discounted cash flows analysis. As of December 31, 2019, discounted cash flows in the Company's cash generating units in Chile,
Brazil, Argentina and Paraguay generated a higher value than the carrying values of the respective net assets, including goodwill of
the Brazilian, Argentinian and Paraguayan subsidiaries.

2.23.2 Fair Value of Assets and Liabilities

IFRS requires in certain cases that assets and liabilities be recorded at their fair value. Fair value is the price that would be received
for selling an asset or paid to transfer a liability in a transaction ordered between market participants at the date of measurement.

The basis for measuring assets and liabilities at fair value are their current prices in an active market. For those that are not traded
in an active market, the Company determines fair value based on the best information available by using valuation techniques.

In the case of the valuation of intangibles recognized as a result of acquisitions from business combinations, the Company
estimates the fair value based on the "multi-period excess earning method", which involves the estimation of future cash flows
generated by the intangible assets, adjusted by cash flows that do not come from these, but from other assets. The Company also
applies estimations over the period during which the intangible assets will generate cash flows, cash flows from other assets, and a
discount rate.

Other assets acquired, and liabilities assumed in a business combination are carried at fair value using valuation methods that are
considered appropriate under the circumstances. Assumptions include the depreciated cost of recovery and recent transaction
values for comparable assets, among others. These valuation techniques require certain inputs to be estimated, including the
estimation of future cash flows.

2.23.3 Allowances for doubtful accounts

The Group uses a provision matrix to calculate expected credit losses for trade receivables. Provisions are based on due days for
various groups of customer segments that have similar loss patterns (i.e. by geography region, product type, customer type and
rating, and credit letter coverage and other forms of credit insurance).

The provision matrix is initially based on the historically observed non-compliance rates for the Group. The Group will calibrate
the matrix to adjust the historical credit loss experience with forward-looking information. For example, if expected economic
conditions (i.e. gross domestic product) are expected to deteriorate over the next year, which can lead to more non-compliances in
the industry, historical default rates are adjusted. At each closing date, the observed historical default rates are updated and changes
in prospective estimates are analyzed. The assessment of the correlation between observed historical default rates, expected
economic conditions and expected credit losses are significant estimates.

2.23.4 Useful life, residual value and impairment of property, plant, and equipment

Property, plant, and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of
those assets. Changes in circumstances, such as technological advances, changes to the Company’s business model, or changes in
its capital strategy might modify the effective useful lives as compared to our estimates. Whenever the Company determines that
the useful life of Property, plant and equipment might be shortened, it depreciates the excess between the net book value and the
estimated recoverable amount according to the revised remaining useful life. Factors such as changes in the planned usage of
manufacturing equipment, dispensers, transportation equipment and computer software could make the useful lives of assets
shorter. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the
carrying value of any of those assets may not be recovered. The estimate of future cash flows is based, among other factors, on
certain assumptions about the expected operating profits in the future. The Company’s estimation of discounted cash flows may
differ from actual cash flows because of, among other reasons, technological changes, economic conditions, changes in the
business model, or changes in operating profit. If the sum of the projected discounted cash flows (excluding interest) is less than the
carrying amount of the asset, the asset shall be written-off to its estimated recoverable value.

2.23.5 Liabilities for deposits of returnable container

The Company records a liability for deposits received in exchange for bottles and containers provided to its customers and
distributors. This liability represents the amount of deposits that must be reimbursed if the customer or distributor returns the
bottles and containers in good condition, together with the original invoice. This liability is estimated based on the number of
bottles given on loan to customers and distributors, estimates of bottles in circulation and the weighted average historical cost per
bottle or container. Management uses professional judgment in order to estimate this liability, including the number of bottles in
circulation, the amount of deposit that must be reimbursed and the timing of disbursements.

2.24.1 New Standards, Interpretations and Amendments for annual periods beginning on or after January 1, 2019.

Standards and interpretations, as well as the improvements and amendments to IFRS, which have been issued, effective at the date
of these financial statements, are detailed below. The Company has applied these rules concluding that they will not significantly
affect the financial statements.

IFRS 16
IFRIC 23

Standards, Interpretations, Amendments
Leases
Uncertainty over Income Tax Treatments

Mandatory application date
January 1, 2019
January 1, 2019

IFRS 16 “Leases”

IFRS 16 replaces IAS17 “Leases”, IFRIC 4 “Determining Whether an Arrangement Contains a Lease”, SIC-15 “Operating Leases
Incentives” and SIC-27 “Evaluating the Substance of Transactions in the Legal Form of a Lease.” The standard establishes the
principles for the recognition, measurement, presentation and disclosure of leases and requires that lessees consider most leases in a
single balance sheet model.

The lessor's accounting under IFRS 16 remains substantially unchanged from IAS 17. Lessors will continue to classify leases as
operating or financial leases using principles similar to those in IAS 17.

The Group adopted IFRS 16 using the amended retrospective adoption method, with an initial application date of January 1, 2019.
The Group chose to use the transition practice to not re-evaluate whether a contract is, or contains, a lease as of January 1, 2019.
Instead, the Group applied the rule only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 on the
date of initial application. The Group also chose to use the recognition exemptions for leases that, on the start date, have a lease
term of 12 months or less and do not contain a purchase option (short-term leases), and leases for which the underlying asset is of
low value (low-value assets).

The effects of adopting IFRS 16 are as follows:

Consolidated Statement of Financial Position
Assets
Property, Plant & Equipment (several)
Right of use

Liabilities
Lease liabilities short-term
Lease liabilities long-term

12.31.2018

IFRS 16
Adjustments

01.01.2019

17,805,700
-

(17,805,700)
37,380,774

37,380,774

1,534,467
13,797,468

4,410,510
12,309,239

5,944,977
26,106,707

(i)
(i)

(ii)

i. Right-of-use assets consisting of CLP 17,805,700 from transfers of other Property, Plant and Equipment assets and CLP

19,575,074 for assets arising from operating leases.

ii. Lease Liabilities increase

Following the adoption of IFRS 16, the Group applied a single recognition and measurement approach for all leases for which it is
the tenant, except for short-term leases and low-value asset leases. The Group recognized lease liabilities for lease payments and
right-of-use assets that represent the right to use the underlying assets. In accordance with the amended retrospective adoption
method, the Group recognized assets and liabilities for the total future payments committed in the contracts.

IFRIC 23 “Uncertainty over Income Tax Treatments”

The Interpretation addresses the accounting of income taxes when tax treatments imply uncertainty that affects the application of
IAS 12 “Income taxes”. It does not apply to taxes or encumbrances that are outside the scope of IAS 12, nor does it specifically
include requirements related to interests and penalties associated with uncertain tax treatments. The Interpretation specifically
addresses the following:

•

If an entity considers the treatment of uncertain tax positions separately

The assumptions that an entity makes about the assessment of tax treatments by tax authorities

How an entity determines fiscal gain (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.

How an entity considers changes in facts and circumstances.

This interpretation began its effective application as of January 1, 2019. The application of IFRIC 23 has not generated impacts on
the consolidated financial statements of Embotelladora Andina and its subsidiaries.

Amendments to IFRS that have been issued effective as of the date of these financial statements, are detailed below.

Amendments

Application date
IFRS 3 Business combinations - interests previously held in a joint operation
January 1, 2019
January 1, 2019
IFRS 9 Financial instruments - payments with negative compensation
IFRS 11Joint agreements - interests previously held in a joint operation
January 1, 2019
IAS 12 Income taxes - tax consequences of payments related to financial instruments classified as equity January 1, 2019
January 1, 2019
IAS 23 Loan costs - eligible loan costs to be capitalized
January 1, 2019
IAS 28 Investments in associates - long-term investments in associates or joint ventures
January 1, 2019
IAS 19 Employee benefits - amendment, reduction or liquidation of the plan

Company Management evaluates the impact of the amendments listed above, once such transactions are carried out.

2.24.2 New Accounting Standards, Interpretations and Amendments with effective application for annual periods
beginning on or after January 1, 2020.

Standards and interpretations, as well as IFRS amendments, which have been issued, but have still not become effective as of the
date of these financial statements are set forth below. The Company has not made an early adoption of these standards.

Conceptual Framework
IFRS 17

Standards and Interpretations
Revised Conceptual Framework
Insurance Contracts

Mandator y application date
January 1, 2020
January 1, 2021

Revised Conceptual Framework

The IASB issued a Revised Conceptual Framework in March 2018, incorporating some new concepts, providing updated
definitions and recognition criterion for assets and liabilities and clarifying some important concepts. Changes in the Conceptual
Framework may affect the application of IFRS when no standard applies to a given transaction or event. The Revised Conceptual
Framework becomes effective for periods ending on or after January 1, 2020.

IFRS 17 Insurance Contracts

In May 2017, the IASB issued IFRS 17 Insurance Contracts, a new comprehensive accounting standard for insurance contracts that
covers recognition, measurement, presentation and disclosure. The new rule applies to all types of insurance contracts, regardless of
the type of entity that issues them, being effective for periods beginning on or after January 1, 2021, with required comparative
figures, early application is allowed, provided that the entity also applies IFRS 9 and IFRS 15.

Amendments to IFRS which have been issued and will become in effect on January 1, 2020 are detailed below:

IFRS 3
IAS 1 and IAS 8
IFRS 9, IAS 39 and IFRS 7
IFRS 10 and IAS 28

Definition of a business
Definition of material
Reference Interest Rate Reform
Consolidated Financial Statements - sale or contribution of assets
between an investor and its associate or joint venture

Amendments

Implementation date
January 1,2020
January 1,2020
January 1,2020
To be determined

IFRS 3 Business Combinations - Definition of Business

The IASB issued amendments to the definition of business in IFRS 3 Business Combinations, to help entities determine whether an
acquired set of activities and assets is a business or not. The IASB clarifies the minimum requirements for defining a business,
eliminates the assessment of whether market participants are able to replace any missing elements, includes guidance to help
entities assess whether a process acquired is substantial, reduces the definitions of a business and products and introduces an
optional fair value concentration test.

Amendments have to be applied to business combinations or asset acquisitions that occur on or after the start of the first annual
reporting period beginning on or after January 1, 2020. As a result, entities do not have to review transactions that occurred in
previous periods. Early application is permitted and must be disclosed. Because the amendments apply prospectively to
transactions or other events that occur on or after the date of the first application, most entities will probably not be affected by
these amendments in the transition. However, those entities that consider the acquisition of a set of activities and assets after
implementing the amendments must first update their accounting policies in a timely manner.

Amendments may also be relevant in other areas of IFRS (e.g. they may be relevant when a controller loses control of a subsidiary
and has anticipated the sale or contribution of assets between an investor and its associate or joint venture) (Amendments to IFRS
10 and IAS 28).

The Company will perform an impact assessment of the amendment once it takes effect.

IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors –
Definition of Material

In October 2018, the IASB issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies,
changes in accounting estimates and errors, to align the definition of "material" in all standards and to clarify certain aspects of the
definition. The new definition states that information is material if when omitted, misstated, or reasonably hidden could be
expected to influence decisions that primary users of general-purpose of the financial statements make based on those financial
statements, which provide financial information about a specific reporting entity.

Amendments should be applied prospectively. Early application is permitted and must be disclosed.

While amendments to the definition of material are not expected to have a significant impact on an entity's financial statements, the
introduction of the term "hide" in the definition could impact the way materiality judgments are made, increasing the importance of
how information is communicated and organized in the financial statements.

The Company will perform an impact assessment of the amendment once it takes effect.

IFRS 9, IAS 39 and IFRS 7 Reference Interest Rate Reform

In September 2019, the IASB issued amendments to IFRS 9, IAS 39 and IFRS 7, which concludes the first stage of its work to
respond to the effects of the reform of interbank offer rate (IBOR) in financial information. The amendments provide temporary
exceptions that allow hedge accounting to continue during the uncertain period, prior to replacing existing benchmark interest rates
with near-risk free alternative interest rates.

Amendments should be applied retrospectively. However, any hedge relationship that has previously been discontinued cannot be
reinstated with the application of these amendments, nor can a hedge relationship be designated using the retrospect reasoning
benefit. Early application is permitted and must be disclosed.

The Company will perform an impact assessment of the amendment once it takes effect.

IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures – sale or contribution
of assets between an investor and its associate or joint venture

Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures (2011)
address a recognized inconsistency between IFRS 10 requirements and IAS 28 (2011) requirements in the treatment of the sale or
contribution of assets between an investor and its associate or joint venture. The amendments, issued in September 2014, state that
when the transaction involves a business (whether it is in a subsidiary or not) all gains, or losses generated are recognized. A partial
gain or loss is recognized when the transaction involves assets that do not constitute a business, even when the assets are in a
subsidiary. The mandatory implementation date of these amendments is yet to be determined because the IASB is awaiting the
results of its research project on accounting according to the equity method of accounting. These amendments must be applied
retrospectively, and early adoption is allowed, which must be disclosed.

The Company will perform an impact assessment of the amendment once it takes effect.

3 – FINANCIAL REPORTING BY SEGMENT

The Company provides financial information by segments according to IFRS 8 “Operating Segments,” which establishes standards
for reporting by operating segment and related disclosures for products and services, and geographic areas.

The Company’s Board of Directors and Management measures and assesses performance of operating segments based on the
operating income of each of the countries where there are Coca-Cola franchises.

The operating segments are determined based on the presentation of internal reports to the Company´s chief strategic decision-
maker. The chief operating decision-maker has been identified as the Company´s Board of Directors who makes the Company’s
strategic decisions.

The following operating segments have been determined for strategic decision making based on geographic location:

(cid:120) Operation in Chile

(cid:120) Operation in Brazil

(cid:120) Operation in Argentina

(cid:120) Operation in Paraguay

The four operating segments conduct their businesses through the production and sale of soft drinks and other beverages, as well as
packaging materials.

Expenses and revenue associated with the Corporate Officer were assigned to the operation in Chile in the soft drinks segment
because Chile is the country that manages and pays the corporate expenses, which would also be substantially incurred, regardless
of the existence of subsidiaries abroad.

Total revenues by segment include sales to unrelated customers and inter-segments, as indicated in the consolidated statement of
income of the Company.

A summary of the Company’s operating segments in accordance to IFRS is as follows:

Chile

Brazil

For the period ended December 31, 2019

Net sales
Cost of sales
Distribution expenses
Administrative expenses
Finance income
Finance expense
Interest expense, net*
Share of the entity in income of associates
Income tax expense
Other income (loss)
Net income of the segment reported

CLP (000’s)

Operation Argentina Operation
CLP (000’s)
608,952,121
(359,465,664)
(59,076,433)
(114,250,801)
1,286,021
(13,151,176)
(11,865,155)
381,255
(12,838,517)
(15,109,823)
36,726,982

Operation Paraguay Operation
CLP (000’s)
619,321,284
394,635,840
(214,447,259) (384,838,875)
(42,673,570)
(56,421,024)
(98,071,441)
(89,276,114)
1,346,501
42,327,682
(34,057,214)
999,370
8,270,468
2,345,871
(3,796,338)
-
(36,821,377)
(6,902,265)
(3,235,926)
21,754,242
83,144,394
26,699,123

158,892,010
(92,368,109)
(8,825,262)
(24,305,453)
195,587
0
195,587
-
(4,604,732)
(308,315)
28,675,726

(2,776,140)
2,776,140

Intercompany
Eliminations Consolida
CLP (
CLP (000’s)
1,779
(1,048
(166
(325
45
(46
(
(3

-
-
-
-
-
-
-

Depreciation and amortization

46,105,063

25,369,034

29,945,887

9,667,300

Current assets
Non-current assets
Segment assets, total

244,504,165
657,069,423
901,573,588

76,354,086
165,116,212
241,470,298

171,349,293
786,979,234
958,328,527

41,266,559
248,309,451
289,576,010

Carrying amount in associates and joint
ventures accounted for using the equity
method, total

Segment disbursements of non-monetary
assets

49,703,673

50,163,060

51,542,820

24,343,002

21,343,312

13,454,124

Current liabilities
Non-current liabilities
Segment liabilities, total

193,298,799
474,576,722
667,875,521

68,120,885
13,350,651
81,471,536

124,248,587
506,297,573
630,546,160

25,990,081
16,161,177
42,151,258

Cash flows provided by in Operating
Activities
Cash flows (used in) provided by Investing
Activities
Cash flows (used in) provided by
Financing Activities

145,551,360

30,440,761

63,145,540

16,010,813

(50,706,748)

(24,790,752)

(21,096,376)

(13,454,124)

(100,352,068)

(616,475)

(25,654,792)

(489,302)

-
-
-

(*) Financial expenses associated with external financing for the acquisition of companies, are presented in this item

3
175

533
1,857
2,390

110

41
1,010
1,422

255

(110

(127

Chile

Brazil

For the period ended December 31, 2018

Net sales
Cost of sales
Distribution expenses
Administrative expenses
Finance income
Finance expense
Interest expense, net
Share of the entity in income of associates
Income tax expense
Other income (loss)
Net income of the segment reported

CLP (000’s)

Operation Argentina Operation
CLP (000’s)
570,939,102
(336,719,937)
(55,798,363)
(109,373,432)
1,744,821
(23,772,554)
(22,027,733)
298,359
(22,000,539)
(11,540,167)
13,777,290

Operation Paraguay Operation
CLP (000’s)
413,560,523
540,509,549
(214,647,052) (329,529,112)
(38,835,833)
(88,809,386)
2,019,489
(31,108,284)
(29,088,795)
1,112,820
(10,088,988)
(8,399,463)
36,870,792

149,588,252
(88,813,300)
(8,241,714)
(22,410,131)
219,964
-
219,964
-
(4,600,874)
(111,834)
25,630,363

(62,899,574)
(93,149,904)
(44,030)
(133,822)
(177,852)
-
(18,874,454)
(2,639,386)
21,172,301

(1,681,627)
1,681,627

Intercompany
Eliminations Consolida
CLP (
CLP (000’s)
1,672
(968
(165
(313
3
(55
(51

-
-
-
-
-
-
-

Depreciation and amortization

42,353,664

20,474,446

26,830,835

9,935,501

Current assets
Non-current assets
Segment assets, total

228,108,768
644,395,166
872,503,934

80,908,212
160,587,931
241,496,143

135,259,768
679,183,347
814,443,115

37,309,706
248,751,791
286,061,497

Carrying amount in associates and joint
ventures accounted for using the equity
method, total

Segment disbursements of non-monetary
assets

50,136,065

52,274,880

67,709,231

28,702,138

32,536,213

9,684,466

Current liabilities
Non-current liabilities
Segment liabilities, total

186,831,021
477,319,648
664,150,669

83,013,418
17,066,746
100,080,164

128,146,943
420,218,066
548,365,009

21,870,719
16,323,385
38,194,104

Cash flows provided by in Operating
Activities
Cash flows (used in) provided by Investing
Activities
Cash flows (used in) provided by
Financing Activities

150,035,425

28,899,457

44,949,860

11,394,620

(47,164,236)

(28,700,733)

(32,536,213)

(9,684,466)

(98,560,576)

(10,644,812)

(5,099,823)

(330,067)

-
-
-

(*) Financial expenses associated with external financing for the acquisition of companies, including capital contributions among

others, are presented in this item.

(55
(22
97

481
1,732
2,214

102

138

419
930
1,350

235

(118

(114

4 – CASH AND CASH EQUIVALENTS

The composition of Cash and cash equivalents is as follows:

By item

Cash
Bank balances
Time deposits
Other fixed rate instruments
Total cash and cash equivalents

12.31.2018
12.31.2019
CLP (000’s) CLP (000’s)
2,331,714
2,907,276
51,176,617
46,425,927
-
1,500,315
86,705,095
104,059,655
157,567,986 137,538,613

Time deposits expire in less than three months from their acquisition date and accrue market interest for this type of short-term
investment. Other fixed-income instruments mainly correspond to purchase transactions with the resale of debt instruments with a
maturity of less than 90 days, from the date of investment. There are no restrictions for significant amounts available to cash.

By currency

USD
EUR
ARS
CLP
PGY
BRL
Cash and cash equivalents

12.31.2018
12.31.2019
CLP (000’s) CLP (000’s)
5,917,041
16,733,249
51,401
9,722
6,726,906
3,830,199
86,121,695
78,420,966
10,680,600
12,383,873
28,040,970
46,189,977
157,567,986 137,538,613

5 – OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS

The composition of other financial assets is as follows:

Other financial assets

Financial assets measured at amortized cost (1)
Financial assets at fair value (2)
Other financial assets measured at amortized cost
(3)
Total

Balance

Current
12.31.2019 12.31.2018

CLP
(000’s)

30,073
317,205

CLP
(000’s)

14,040
669,527

Non-current

12.31.2019

CLP (000’s)
1,216,865
98,918,457

12.31.2018
CLP
(000’s)

-
87,446,662

-
347,278

-
683,567

10,648,989
110,784,311

9,915,663
97,362,295

(1) Financial instruments held by the Company other than cash and cash equivalents. They mainly consist of time deposits with
short-term maturities (more than 90 days).

(2) See detail in Note 22

(3) Correspond to the rights in the Argentinean company Alimentos de Soya S.A., which are framed in the purchase of the "AdeS"
brand managed by The Coca-Cola Company at the end of 2016.

6 – OTHER CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS

The composition of other non-financial assets is as follows:

Other non-financial assets

Prepaid expenses
Tax credit remainder (1)
Guaranty deposit
Deposit in courts
Others (2)
Total

Balance

Current

Non-current

12.31.2019
CLP (000’s)
11,242,456
180,695
422
-
4,765,392
16,188,965

12.31.2018
CLP (000’s)
4,967,255
18,022
3,013
-
960,633
5,948,923

12.31.2019
CLP (000’s)
595,045
103,540,639

19,226,030
2,274,436
125,636,150

12.31.2018
CLP (000’s)
810,662
13,322,720
-
18,590,597
2,253,285
34,977,264

(1) In November 2006, Rio de Janeiro Refrescos Ltda. ("RJR") filed a court order No. 0021799-23.2006.4.02.5101 seeking
recognition of the right to exclude ICMS (Tax on Commerce and Services) from the PIS (Program of Social Integration) and
COFINS (Contribution for the Financing of Social Security) calculation base, as well as recognition of the right to obtain
reimbursement of amounts unduly collected since November 14, 2001, duly restated using the Selic interest rate. On May 20, 2019,
the ruling favoring RJR became final, allowing the recovery of amounts overpaid from November 14, 2001 to August 2017. It is
worth noting that in September 2017, RJR had already obtained a Security Mandate, which granted it the right to exclude, from that
date, the ICMS from the PIS and COFINS calculation base.

The company took steps to assess the total amount of the credit at issue for the period of unduly collection of taxes from November
2001 to August 2017, totaling CLP 103,540 million (BRL 567 million, of which BRL 357 million corresponds to capital and BRL
210 million to interest and monetary restatement. These amounts were recorded as of December 31, 2019. In addition, the company
acknowledged the indirect costs (attorneys' fees, consulting, auditing, indirect taxes and other obligations) resulting from the
recognition of the right acquired in court, totaling BRL 161 million.

The payment of income tax occurs when liquidating the credit, thus the respective deferred tax liability recorded was CLP 25,200
million (BRL 138 million).

Compañía de Bebidas Ipiranga ("CBI") acquired in September 2013, also filed a court order No. 0014022-71.2000.4.03.6102 in
order to recognize the same issue as the one previously described for RJR. In September 2019, the ruling favoring CBI became
final, allowing the recovery of the amounts overpaid from September 12, 1990 to December 1, 2013 (date when CBI was
incorporated by RJR). CBI's credit will be generated in the name of RJR, however, pursuant to the contractual clause
("Subscription Agreement for Shares and Exhibits"), as soon as collected by RJR, this payment should be immediately paid to
former CBI shareholders (supervention favoring former CBI shareholders).

In addition, RJR has an associate called Sorocaba Refrescos SA ("Sorocaba"), where it has a 40% shareholding in the capital,
which also filed a court order seeking recognition of the right to the same issue as RJR's action. On June 13, 2019, the ruling
favoring Sorocaba became final, allowing the recovery of the amounts overpaid from July 5, 1992 until the date on which the
decision became final. The amount of this credit will be calculated and the respective impacts on RJR’s results derived from its
participation in Sorocaba will be recognized in the fiscal year ended December 31, 2020.

Based on the information available for the CBI and Sorocaba lawsuits, the Company concluded that there was not enough
documentary support to say that the credit is almost certain for the tax authorities and therefore, did not record the respective asset
in the booking accounts.

(2) Other non-financial assets are mainly composed of advances to suppliers

7 – TRADE AND OTHER RECEIVABLES

The composition of trade and other receivables is as follows:

Trade debtors and other accounts receivable, Net

Trade debtors
Other debtors
Other accounts receivable
Total

Trade debtors and other accounts receivable, Gross

Trade debtors
Other debtors
Other accounts receivable
Total

The stratification of the portfolio is as follows:

Current trade debtors without impairment impact

Less than one month
Between one and three months
Between three and six months
Between six and eight months
Older than eight months

Balance

Current

Non-current

12.31.2019
CLP (000’s)
150,509,528
39,620,246
947,814
191,077,588

12.31.2018
CLP (000’s)
147,728,216
16,722,240
9,662,867
174,113,323

12.31.2019
CLP (000’s)
-
466,007
57,762
523,769

12.31.2018
CLP (000’s)
66,510
1,204,187
-
1,270,697

Balance

Current

Non-current

12.31.2019
CLP (000’s)
153,654,549
42,719,679
1,196,347
197,570,575

12.31.2018
CLP (000’s)
150,933,965
19,552,539
9,925,027
180,411,531

12.31.2019
CLP (000’s)
-
466,007
57,762
523,769

12.31.2018
CLP (000’s)
66,510
1,204,187
-
1,270,697

Balance
12.31.2019 12.31.2018

CLP
(000’s)

148,150,717 144,172,500
2,066,514
601,042
851,009
3,309,410
Total 153,654,549 151,000,475

1,872,144
838,277
482,596
2,310,815

The Company has approximately 276,000 clients, which may have balances in the different sections of the stratification. The
number of clients is distributed geographically with 65,400 in Chile, 89,200 in Brazil, 64,400 in Argentina and 57,000 in Paraguay.

Debtors for current credit operations
Non-current credit operations
Total

12.31.2018
12.31.2019
CLP (000’s) CLP (000’s)
153,654,549 150,933,965
66,510
153,654,549 151,000,475

The movement in the allowance for expected credit losses is presented below:

Opening balance
Increase (decrease)
Provision reversal
Increases (decrease) for changes of foreign currency
Sub – total movements
Ending balance

8 – INVENTORIES

The composition of inventories is detailed as follows:

Details

Raw materials (1)
Finished goods
Spare parts and supplies
Work in progress
Other inventories
Obsolescence provision (2)
Total

12.31.2018
12.31.2019
CLP (000’s) CLP (000’s)
6,494,113
1,629,761
(1,257,591)
(568,075)
(195,905)
6,298,208

6,298,208
1,762,246
(1,184,953)
(382,514)
194,779
6,492,987

12.31.2019
CLP (000’s)
93,524,911
32,337,670
20,769,626
567,973
3,625,488
(3,184,444)
147,641,224

12.31.2018
CLP (000’s)
86,102,495
37,213,848
28,777,180
780,324
1,049,165
(2,603,303)
151,319,709

The cost of inventory recognized as cost of sales as of December 31, 2019 and 2018, is CLP 1,048,343,767 thousand and CLP
968,027,774 thousand, respectively.

(1) Approximately 80% is composed of concentrate and sweeteners used in the preparation of beverages, as well as caps

and PET supplies used in the packaging of the product.

(2) The obsolescence provision is related mainly with the obsolescence of spare parts classified as inventories and to a lesser
extent to finished products and raw materials. The general standard is to provision all those multi-functional spare parts
without utility in rotation in the last four years prior to the technical analysis technical to adjust the provision. In the case
of raw materials and finished products, the obsolescence provision is determined according to maturity.

9 – TAX ASSETS AND LIABILITIES

The composition of current tax accounts receivable is the following:

Tax assets

Tax credits (1)
Total

12.31.2019 12.31.2018

CLP
(000’s)
9,815,294
9,815,294

CLP
(000’s)
2,532,056
2,532,056

(1) Tax credits correspond to income tax credits on training expenses, purchase of Property, plant and equipment, and donations.

The composition of current tax accounts payable is the following:

Tax liabilities

Income tax expense
Total

12.31.2019 12.31.2018

CLP
(000’s)
6,762,267
6,762,267

CLP
(000’s)
9,338,612
9,338,612

10 – INCOME TAX EXPENSE AND DEFERRED TAXES

10.1 Income tax expense

The current and deferred income tax expenses are detailed as follows:

Details

Current income tax expense
Current tax adjustment previous period
Withholding tax expense foreign subsidiaries
Other current tax expense (income)
Current income tax expense
Expense (income) for the creation and reversal of temporary differences of deferred tax and
others
Expense (income) for deferred taxes
Total income tax expense

12.31.2019
CLP (000’s)
35,439,707
713,992
4,534,145
(425,958)
40,261,886

12.31.2018
CLP (000’s)
38,313,980
312,403
7,364,213
474,105
46,464,701

20,905,005
20,905,005
61,166,891

9,100,154
9,100,154
55,564,855

The distribution of national and foreign tax expenditure is as follows:

Income taxes

Current taxes
Foreign
National
Current tax expense
Deferred taxes
Foreign
National
Deferred tax expense
Income tax expense

12.31.2019
12.31.2018
CLP (000’s) CLP (000’s)

(24,315,576) (24,442,984)
(15,946,310) (22,021,717)
(40,261,886) (46,464,701)

(9,121,332)
(24,012,798)
21,178
3,107,793
(20,905,005)
(9,100,154)
(61,166,891) (55,564,855)

The reconciliation of the tax expense using the statutory rate with the tax expense using the effective rate is as follows:

Reconciliation of effective rate

Net income before taxes
Tax expense at legal rate (27.0%)
Effect of a different tax rate in other jurisdictions
Permanent differences:
Non-taxable revenues
Non-deductible expenses
Tax effect of excess tax provisioned in previous periods
Effect of monetary tax restatement Chilean companies
Foreign subsidiaries tax withholding expense and other legal tax debits and credits
Adjustments to tax expense
Tax expense at effective rate
Effective rate

12.31.2019
12.31.2018
CLP (000’s) CLP (000’s)
153,015,601
236,413,116
(41,314,212)
(63,831,541)
(3,741,569)
967,671

9,507,807
(4,664,045)
(3,316,278)
5,199,589
(590,718)
6,136,355
(61,166,891)

12,522,541
(11,141,237)
(295,632)
2,566,163
(18,870,149)
(15,218,314)
(55,564,855)

25.9%

36.3%

The applicable income tax rates in each of the jurisdictions where the Company operates are the following:

Country
Chile
Brazil
Argentina
Paraguay

Rate

2019

2018

27.0%
34.0%
30.0%
10.0%

10.2 Deferred income taxes

The net cumulative balances of temporary differences that give rise to deferred tax assets and liabilities are detailed as follows:

12.31.2019

12.31.2018

Temporary differences

Property, plant and equipment
Obsolescence provision
ICMS exclusion credit
Employee benefits
Post-employment benefits
Tax loss carry forwards (1)
Tax goodwill Brazil
Contingency provision
Foreign Exchange differences (2)
Allowance for doubtful accounts
Coca-Cola incentives (Argentina)
Assets and liabilities for placement of bonds
Lease liabilities
Inventories
Distribution rights
Others
Subtotal
Total assets and liabilities net

Assets

Liabilities

5,445,810
1,588,563
-
5,418,561
148,853
7,607,813
10,341,033
34,109,458
9,284,450
756,895
-
390,163
2,242,439
447,192
-

Liabilities
CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)
46,181,359
112,359
-
131,829
1,014,354
-
-
-
-
-
-
1,327,727
-
-
173,273,994
5,940,224
227,981,846
145,245,948

51,414,971
-
25,651,794
12,157
787,576
-
-
-
-
-
-
1,187,649
-
-
163,107,412
3,705,078
245,866,637
169,449,747

5,420,447
910,076
-
5,169,161
90,941
9,137,392
18,836,838
26,796,262
13,083,953
1,262,977
352,061
-
1,328,320
347,470
-
-
82,735,898
-

77,781,230
1,364,340

(1) Tax losses mainly associated with the subsidiary Embotelladora Andina Chile S.A. In Chile tax losses have no expiration

date

(2) Corresponds to differed taxes for exchange rate differences generated on the translation of debt expressed in foreign currency

in the subsidiary Rio de Janeiro Refrescos Ltda. and which for tax purposes are recognized in Brazil when incurred.

The movement in deferred income tax accounts is as follows:

Movement

Opening Balance
Increase (decrease) in deferred tax
Increase (decrease) due to foreign currency translation (*)
Total movements
Ending balance

(*) Includes IAS 29 effect, due to inflation in Argentina

12.31.2018
12.31.2019
CLP (000’s) CLP (000’s)
145,245,948 121,991,585
11,303,016
11,951,347
23,254,363
168,085,407 145,245,948

20,905,005
1,934,454
22,839,459

11 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are detailed below at the end of each period:

Property, plant and equipment, gross

Construction in progress
Land
Buildings
Plant and equipment
Information technology equipment
Fixed installations and accessories
Vehicles
Leasehold improvements
Rights of use (1)
Other properties, plant and equipment (2)
Total Property, plant and equipment, gross

Accumulated depreciation of
Property, plant and equipment

Buildings
Plant and equipment
Information technology equipment
Fixed installations and accessories
Vehicles
Leasehold improvements
Rights of use (1)
Other properties, plant and equipment (2)
Total accumulated depreciation

Total Property, plant and equipment, net

(1) For adoption of IFRS 16. See details of underlying assets in Note 11.1

(2) The net balance of each of these categories is presented below:

Other Property, plant and equipment, net

Bottles
Marketing and promotional assets
Other Property, plant and equipment

Total

12.31.2018
12.31.2019
CLP (000’s) CLP (000’s)
51,522,834
44,071,742
45,739,948
57,442,154
13,270,507
17,343,316
114,784,403 114,606,098

12.31.2019
CLP (000’s)

27,290,581
104,196,754
299,282,674
571,154,695
23,912,963
46,062,659
55,128,493
214,886
40,498,400
452,600,945
1,620,343,050

12.31.2018
CLP (000’s)

26,048,670
100,479,196
371,279,937
623,568,795
22,752,205
43,717,907
53,682,179
144,914
-
438,350,022
1,680,023,825

12.31.2019
CLP (000’s)

(87,308,899)
(385,801,471)
(18,911,118)
(26,219,378)
(33,167,346)
(144,865)
(8,254,568)
(337,816,542)
(897,624,187)

12.31.2018
CLP (000’s)
(157,119,586)
(416,164,810)
(17,567,484)
(22,660,738)
(31,883,578)
(112,737)
-
(323,743,924)
(969,252,857)

722,718,863

710,770,968

11.1 Movements

Movements in Property, plant and equipment are detailed as follows:

Construction
in progress
Rights-of-use
CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)

Buildings, net

Vehicles, net

Others

Land

Plant and
equipment,
net

IT
equipment
net

Fixed
facilities and
accessories,
net

Leasehold
improvements,
net

Property, plant
& equipment,
net
CLP (000’s)

26,048,670 100,479,196
-
49,134,461

214,160,351 207,403,985
11,582,259

749,800

5,184,721
675,974

21,057,169
7,271

21,798,601
(342,001)

32,177 114,606,098
32,640,210

1,309

-
-

710,770,968
94,449,283

-
(8,761)

-
-

-
(5,902)

-
(352,204)

-
(977)

-
(8,911)

-
(52,095)

-
(155)

-
(1,135,304)

21,721,728
-

21,721,728
(1,564,309)

(48,358,902)

2,268,316

430,971

20,735,065

1,019,048

1,379,012

7,650,847

65,250

14,810,393

(25,991)

-
-

(266,007)

(13,788,120)

(23,712)

(1,181,465)

(2,520,405)

17,805,700

(7,681,481)
-

(37,572,910)
-

(1,949,851)
-

(2,977,512)
-

(6,267,039)
-

(30,737) (42,410,016)
-

(8,254,568)

(98,889,546)
(8,254,568)

688,063

1,529,526

4,685,319

3,228,519

83,757

386,253

464,563

2,177

2,216,555

1,024,539

14,309,271

(186,959)

(80,284)

(99,276)

(5,883,370)

12,885

(1)

(110,264)

(3,423,128)

(53,567)

(9,823,964)

1,241,911

3,717,558

(2,186,576)

(22,050,761)

(182,876)

(1,213,888)

162,546

37,844

178,305

32,243,832

11,947,895

27,290,581 104,196,754

211,973,775 185,353,224

5,001,845

19,843,281

21,961,147

70,021 114,784,403

32,243,832

722,718,863

Opening balance
at January 1,
2019
Additions
Right-of
use additions (3)
Disposals
Transfers
between items of
Property, plant
and equipment
Right-of-use
transfers
Depreciation
expense
Amortization (2)
Increase
(decrease) due to
foreign currency
translation
differences
Other increase
(decrease) (1)
Total
movements
Ending balance
at December 31,
2019

(1) Mainly correspond to effects of adopting IAS 29 in Argentina.

(2) Of the total of CLP 8,254,468 thousand recorded as amortization for the current period, CLP 5,994,037 thousand correspond to right-of-use amortization arising from the adoption of
the IFRS, effective beginning on January 1, 2019. The remaining CLP 2,260,531 thousand correspond to depreciation (today amortization) of goods acquired under the financial
lease method, which until December 31, 2018 were classified and valued pursuant to the accounting criteria of property, plant and equipment.

(3)

For IFRS 16 adoption

Construction
in progress

Land

Buildings, net

Plant and
equipment,
net

CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)

IT
Equipment,
net
CLP
(000’s)

Fixed facilities
and

accessories, net Vehicles, net

Leasehold
improvements,
net

Other,
net

Property, plant
and equipment,
net

CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)

84,118,716
65,284,334
-

96,990,155
-
(5,465)

162,385,848 155,833,080
17,924,606
(1,002,133)

504,675
(209,713)

4,627,325
783,299
-

19,589,877
165,226
-

29,263,265
1,451,462
(203,036)

7,415 106,934,818
42,793,277
1,430
(1,588,050)
-

659,750,499
128,908,309
(3,008,397)

(109,893,610)
-

-
-

45,032,440
(7,001,828)

54,460,571
(39,182,401)

622,222
(1,830,295)

1,481,081
(2,668,535)

(2,218,354)
(5,201,263)

22,000
(11,112)

10,493,650
(41,727,195)

-
(97,622,629)

(6,880,059)
(6,580,711)
(58,070,046)

(4,615,830)
8,110,336
3,489,041

(14,485,709)
27,934,638
51,774,503

(17,048,903)
36,419,165
51,570,905

(414,850)
1,397,020
557,396

(4,048,135)
6,537,655
1,467,292

(1,722,767)
429,294
(7,464,664)

169 (16,954,922)
14,654,520
7,671,280

12,275
24,762

(66,171,006)
88,914,192
51,020,469

26,048,670 100,479,196

214,160,351 207,403,985

5,184,721

21,057,169

21,798,601

32,177 114,606,098

710,770,968

Opening balance at
January 1, 2018
Additions
Disposals
Transfers between items of
Property, plant and equipment
Depreciation expense
Increase (decrease) due to
foreign currency translation
differences
Other increase (decrease) (1)
Total movements
Ending balance at
December 31, 2018

(1) Mainly correspond to the effects of adopting IAS 29 in Argentina.

Right-of-use asset as of December 31, 2019 is composed as follows:

Rights of use

Buildings
Plant and equipment
IT Equipment
Motor vehicles
Others
Total

Gross asset
CLP (000’s)
1,454,555
28,109,470
283,473
5,198,413
5,452,489
40,498,400

Depreciation
CLP (000’s)

(294,791)
(4,856,397)
(69,209)
(1,776,055)
(1,258,116)
(8,254,568)

Interest expense for lease liabilities for the period ended December 31, 2019 amounts to CLP 2,282,221 thousand.

12 – RELATED PARTIES

Balances and main transactions with related parties are detailed as follows:

12.1 Accounts receivable:

Taxpayer ID

Company

Relationship

Country Currency

96.891.720-K

96.714.870-9

Foreign
Foreign

Foreign

96.517.210-2
86.881.400-4

96.919.980-7

77.755.610-K
78.826.410-9
76.140.057-6
Total

Embonor S.A.
Coca-Cola de Chile
S.A.
Coca Cola de
Argentina
UBI 3 (AdeS)
Alimentos de Soja
S.A.U.
Embotelladora Iquique
S.A.
Envases CMF S.A.
Cervecería Austral
S.A.
Comercial Patagona
Ltda.
Guallarauco
Monster

Shareholder related Chile

Shareholder

Chile

CLP

Director related
Argentina ARS
Shareholder related Argentina ARS

Shareholder related Argentina ARS

Shareholder related Chile
Chile
Associate

Director related

Chile

Director related
Associate
Associate

Chile
Chile
Chile

CLP
CLP

USD

CLP
CLP
CLP

12.2 Accounts payable:

12.31.2019

12.31.2018

Current
CLP (000’s)
6,589,539

Non-current
CLP (000’s)

Current
CLP (000’s)
4,344,082

Non-current
CLP (000’s)

14,839

283,118

2,175,934

74,340

1,203,389
-

428,802

278,176
217,510

45,644

3,872
2,003,203
50,794
10,835,768

-
-

-
-
-
283,118

1,684,357
455,823

371,712

228,387
161,460

26,557

1,951
-
-
9,450,263

-
-

-
-
-
74,340

Taxpayer ID

Company

Relationship

Country Currency

12.31.2019

12.31.2018

Current
M$

Non-current
M$

Current
M$

Non-current
M$

96.714.870-9

Foreign
86.881.400-4

Foreign

76.572.588-7

89.996.200-1
96.891.720-K

Foreign
Foreign
Foreign

Foreign
Total

Argentina ARS

Chile

Associate

Shareholder

Shareholder related Brazil
Chile
Associate

Coca-Cola de Chile
S.A.
Recofarma do
Indústrias Amazonas
Ltda.
Envases CMF S.A.
Ser. y Prod. para
Bebidas Refrescantes
S.R.L.
Leão Alimentos e
Bebidas Ltda.
Monster Energy Brasil
Com de Bebidas Ltda. Shareholder related Brazil
Coca-Cola del Valle
New Ventures S.A.
Envases del Pacífico
S.A.
Embonor S.A.
Alimentos de Soja
S.A.U.
Verde Campo
Coca-Cola Panama
Sorocaba Refrescos
S.A.

Director related
Chile
Shareholder related Chile

Associate

Brazil

Chile

Shareholder related Argentina ARS
BRL
Shareholder related Brazil
USD
Shareholder related Panama

BRL

CLP

CLP
CLP

BRL

CLP

20,555,135

21,286,933

BRL
CLP

14,888,934
6,359,797

19,777,812
-

8,681,099
5,702,194

5,887,070

1,841,377

827,300

1,247,961

25,202
275,565

929,986
765,521
7,739

-
-

-
-
-

5,479,714

3,132,515

664,565

649,046

139,468
92,325

-
-
-

26,014
53,637,601

-
19,777,812

-
45,827,859

-
-

-
-
-

-
-

12.3 Transactions:

Taxpayer ID

Company

Relationship

Country

Transaction
Description

Currency

96.714.870-9 Coca-Cola de Chile S.A.
96.714.870-9 Coca-Cola de Chile S.A.
96.714.870-9 Coca-Cola de Chile S.A.
96.714.870-9 Coca-Cola de Chile S.A.
86.881.400-4 Envases CMF S.A.
86.881.400-4 Envases CMF S.A.
86.881.400-4 Envases CMF S.A.
86.881.400-4 Envases CMF S.A.
86.881.400-4 Envases CMF S.A.
86.881.400-4 Envases CMF S.A.
96.891.720-K Embonor S.A.
96.891.720-K Embonor S.A.
96.891.720-K Embonor S.A.
96.517.310-2 Embotelladora Iquique S.A.
89.996.200-1 Envases del Pacífico S.A.
94.627.000-8 Parque Arauco S.A
Foreign
Foreign
Foreign
Foreign
Foreign
Foreign
Foreign
76.572.588-7 Coca Cola Del Valle New Ventures SA
Alimentos de Soja S.A.U.
Foreign
Alimentos de Soja S.A.U.
Foreign
Trop Frutas do Brasil Ltda.
Foreign

Chile
Shareholders
Chile
Shareholders
Chile
Shareholders
Chile
Shareholders
Chile
Associate
Chile
Associate
Chile
Associate
Chile
Associate
Chile
Associate
Chile
Associate
Shareholder related Chile
Shareholder related Chile
Shareholder related Chile
Shareholder related Chile
Chile
Director related
Director related
Chile
Shareholder related Brazil
Shareholder related Brazil

CLP
Concentrate purchase
CLP
Purchase of advertising services
CLP
Water source lease
CLP
Sale of raw materials and others
CLP
Purchase of bottles
CLP
Purchase of raw materials
CLP
Purchase of caps
CLP
Purchase of services and others
CLP
Purchase of containers
CLP
Sale of containers /raw materials
CLP
Sale of finished products
CLP
Sale of services and others
CLP
Minimum dividend
Sale of finished products
CLP
Purchase of raw materials and materials CLP
CLP
Space lease
BRL
Concentrate purchase
BRL
Reimbursement and other purchases
ARS
ARS
BRL
BRL
BRL
CLP
ARS
ARS
BRL

Recofarma do Indústrias Amazonas Ltda.
Recofarma do Indústrias Amazonas Ltda.
Serv. y Prod. para Bebidas Refrescantes S.R.L. Shareholder related Argentina Concentrate purchase
Serv. y Prod. para Bebidas Refrescantes S.R.L. Shareholder related Argentina Advertising participation
Associate
KAIK Participações
Associate
Sorocaba Refrescos S.A.
Associate
Leão Alimentos e Bebidas Ltda.
Associate
Shareholder related Argentina Payment of commissions and services
Shareholder related Argentina Purchase of products
Purchase of products
Associate

Reimbursement and other purchases
Purchase of products
Purchase of products
Sale of services and others

Brazil
Brazil
Brazil
Chile

Brazil

12.4

Salaries and benefits received by key management

Salaries and benefits paid to the Company’s key management personnel including directors and managers are detailed as follows:

Description

Executive wages, salaries and benefits
Director allowances
Benefit accrued in the last five years and paid during the fiscal year
Benefit for contract termination
Total

13 – CURRENT AND NON-CURRENT EMPLOYEE BENEFITS

Employee benefits are detailed as follows:

Description

Accrued vacation
Participation in profits and bonuses
Indemnities for years of service
Total

Current
Non-current
Total

13.1 Indemnities for years of service

The movements of employee benefits, valued pursuant to Note 2 are detailed as follows:

12.31.2018

12.31.2019
CLP (000’s) CLP (000’s)
6,056,337
1,495,123
242,907
51,534
7,845,901

6,267,936
1,512,000
305,674
54,819
8,140,429

12.31.2019
CLP (000’s)
17,584,587
20,896,357
10,085,264
48,566,208

12.31.2018
CLP (000’s)
19,536,809
13,674,170
9,415,541
42,626,520

CLP (000’s)
38,392,854
10,173,354
48,566,208

CLP (000’s)
33,210,979
9,415,541
42,626,520

Movements

Opening balance
Service costs
Interest costs
Actuarial losses
Benefits paid
Total

12.31.2019
12.31.2018
CLP (000’s) CLP (000’s)
8,286,355
957,593
565,167
271,045
(664,619)
9,415,541

9,415,541
784,984
354,471
(210,956)
(258,776)
10,085,264

13.1.1 Assumptions

The actuarial assumptions used are detailed as follows:

Assumptions
Discount rate
Expected salary increase rate
Turnover rate
Mortality rate
Retirement age of women
Retirement age of men

13.2 Personnel expenses

Personnel expenses included in the consolidated statement of income are as follows:

Wages and salaries
Employee benefits
Severance benefits
Other personnel expenses
Total

13.3 Number of employees

Number of employees
Average number of employees

Description

12.31.2019
2.7%
2.0%
5.4%
RV-2014
60 years
65 years

12.31.2018
2.7%
2.0%
5.4%
RV-2009
60 years
65 years

12.31.2019
CLP (000’s)
194,740,646
58,005,213
6,987,184
13,389,967
273,123,010

12.31.2018
CLP (000’s)
195,162,903
50,254,164
5,535,410
16,014,364
266,966,841

12.31.2019

12.31.2018

16,167
15,444

16,098
15,364

14 – INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD

Investments in associates using equity method of accounting are detailed as follows:

Taxpayer ID

Company

Functional
Country Currency

86.881.400-4 Envases CMF S.A. (1)

Chile

CLP

Leão Alimentos e Bebidas Ltda.
(2)
Kaik Participações Ltda. (2)
SRSA Participações Ltda.
Sorocaba Refrescos S.A.
Trop Frutas do Brasil Ltda. (2)
Coca-Cola del Valle New
Ventures S.A.

Brazil
Brazil
Brazil
Brazil
Brazil

BRL
BRL
BRL
BRL
BRL

Chile

CLP

Foreign
Foreign
Foreign
Foreign
Foreign

76.572.588.7
Total

12.31.2019
CLP
(000’s)
18,561,835

17,896,839
1,313,498
65,301
24,636,945
6,250,481

CLP (000’s)
18,743,604

21,727,894
1,228,256
94,706
22,979,029
6,244,839

31,141,834
99,866,733

31,392,617
102,410,945

50.00%

10.26%
11.32%
40.00%
40.00%
7.52%

35.00%

Investment value

Ownership interest

12.31.2018

12.31.2019

12.31.2018

(1)

In Envases CMF S.A., regardless of the percentage of ownership interest, it was determined that no controlling interest was
held, only a significant influence, given that there was not a majority vote of the Board of Directors to make strategic
business decisions.

(2)

In these companies, regardless of the percentage of ownership interest held, the Company has significant influence, given that
it has a representative on each entity’s Board of Directors.

14.1 Movement

The movement of investments in other entities accounted for using the equity method is shown below:

Description

Opening balance
Other investment increases in associates (Capital contributions to Leão Alimentos e Bebidas
Ltda. and Coca-Cola del Valle New Ventures S.A.)
Dividends received
Share in operating income
Amortization unrealized income in associates
Increase (decrease) in foreign currency translation, investments in associates
Ending balance

The main movements are explained below:

12.31.2019
CLP (000’s)
102,410,945

12.31.2018
CLP (000’s)
86,809,069

-
(1,076,491)
(2,495,621)
(919,462)
1,947,362
99,866,733

15,615,466
(403,414)
2,194,144
85,268
(1,889,588)
102,410,945

(cid:120)

(cid:120)
(cid:120)

In December 2019, Leão Alimentos e Bebidas Ltda. performed an impairment provision at its Linhares Plant for BRL 256
million. Andina recognized as results for the 2019 fiscal year, a loss of CLP 4,671 million.
In 2019 Sorocaba Refrescos S.A., Coca-Cola del Valle and CMF distributed dividends.
During 2018, Embotelladora Andina S.A. made a capital contribution in Coca-Cola del Valle New Ventures S.A. for CLP
15,615,466 thousand.

14.2 Reconciliation of share of profit in investments in associates:

Description

Equity value on income of associates

12.31.2019
CLP (000’s)
(2,495,621)

12.31.2018
CLP (000’s)
2,194,144

Unrealized earnings from product inventory acquired from associates and not sold at the end of

the period, which is presented as a discount in the respective asset account (containers and / or
inventory)

Amortization goodwill in the sale of fixed assets of Envases CMF S.A.
Amortization goodwill preferred rights CCDV S.A.
Income statement balance

(394,490)
85,266
(610,238)
(3,415,083)

(868,233)
85,268
-
1,411,179

14.3 Summary financial information of associates:

The following table presents summarized information regarding the Company’s equity investees:

Sorocaba
Refrescos
Envases
CMF S.A.
S.A.
CLP (000’s) CLP (000’s) CLP (000’s)
11,661,828

Kaik
Participações
Ltda.

77,994,582 116,551,131

Leão
Alimentos e
Bebidas
Ltda.

Trop Frutas
do Brasil
Ltda.
CLP (000’s) CLP (000’s) CLP (000’s)
393,856 248,493,994 104,778,397 107,388,847

Coca-Cola
del Valle
New
Ventures
S.A.

SRSA Participações Ltda.
CLP (000’s)

39,826,283

54,650,105

229,780

38,137,061

27,158,470

18,693,717

58,640,058

69,343,990

337,450

160,342 139,769,189

47,252,571

31,914,825

1,449,997

3,948,798

337,450

160,342

2,320,841

(1,177,262)

4,297,003

12.31.2019

11.30.2019

Total assets
Total
liabilities
Total
revenue
Net income
(loss) of
associate
Reporting
date

15 - INTANGIBLE ASSETS OTHER THAN GOODWILL

Intangible assets other than goodwill are detailed as follows:

Description

Distribution rights (1)
Software
Others
Total

Gross
Value
CLP (000’s)
667,148,383
34,347,843
750,309
702,246,535

December 31, 2019
Accumulated
Amortization
CLP (000’s)
(393,187)
(26,484,427)
(293,546)
(27,171,160)

Net
Value
CLP (000’s)
666,755,196
7,863,416
456,763
675,075,375

Gross
Value
CLP (000’s)
661,285,834
31,526,159
728,198
639,540,191

December 31, 2018
Accumulated
Amortization
CLP (000’s)
(259,434)
(24,160,202)
(298,002)
(24,717,638)

Net
Value
CLP (000’s)
661,026,400
7,365,957
430,196
668,822,553

(1) Correspond to the contractual rights to produce and distribute Coca-Cola products in certain parts of Argentina, Brazil, Chile
and Paraguay. Distribution rights result from the valuation process at fair value of the assets and liabilities of the companies
acquired in business combinations. Production and distribution contracts are renewable for periods of 5 years with Coca-Cola.
The nature of the business and renewals that Coca-Cola has permanently done on these rights, allow qualifying them as
indefinite contracts.

The distribution rights together with the assets that are part of the cash-generating units, are annually subjected to the impairment
test. Such distribution rights have an indefinite useful life and are not subject to amortization: except for the Monster rights that are
amortized in the term of the agreement which is 4 years.

Distribution rights

Chile (excluding Metropolitan Region, Rancagua and San Antonio)
Brazil (Rio de Janeiro, Espirito Santo, Ribeirão Preto and investments in Sorocaba y Leão
Alimentos e Bebidas Ltda.)
Paraguay
Argentina (North and South)
Total

The movement and balances of identifiable intangible assets are detailed as follows:

12.31.2019
CLP (000’s)
305,235,247

12.31.2018
CLP (000’s)
304,888,183

187,616,890
171,841,663
2,061,396
666,755,196

181,583,404
172,594,328
1,960,485
661,026,400

Description

Opening balance
Additions
Amortization
Other increases
(decreases) (1)
Ending balance

January 1 to December 31, 2019

January 1 to December 31, 2018

Distribution
Rights
CLP (000’S)
661,026,400
-
(133,753)

Others
CLP (000’S)
430,196
-
-

Software
CLP (000’S)
7,365,957
3,296,558
(2,324,225)

Total
CLP (000’S)
668,822,553
3,296,558
(2,457,978)

Distribution
Rights
CLP (000’S)
656,294,617
-
(112,601)

Others
CLP (000’S)
470,918
-
(40,722)

Software
CLP (000’S)
6,507,343
3,718,038
(1,971,417)

Total
CLP (000’S)
663,272,878
3,718,038
(2,124,740)

5.862.549
666,755,196

26,567
456,763

(474,874)
7,863,416

5,414,242
675,075,375

4,844,384
661,026,400

-
430,196

(888,007)
7,365,957

3,956,377
668,822,553

(1) Mainly corresponds to restatement due to the effects of translation of distribution rights of foreign subsidiaries.

16 - GOODWILL

Movement in Goodwill is detailed as follows:

Operating segment

Chilean operation
Brazilian operation
Argentine operation
Paraguayan operation
Total

Operating segment

Chilean operation
Brazilian operation
Argentine operation
Paraguayan operation
Total

01.01.2019
CLP (000’s)
8,503,023
73,080,100
28,319,129
7,327,921
117,229,173

01.01.2018
CLP (000’s)
8,503,023
73,509,080
4,672,971
6,913,143
93,598,217

Foreign currency
translation differences
where functional currency
is different from
presentation currency and
hyperinflation
CLP (000’s)

12.31.2019
CLP (000’s)
8,503,023
75,674,072
29,750,238
7,294,328
3,992,488 121,221,661

-
2,593,972
1,432,109
(33,593)

Foreign currency
translation differences
where functional currency
is different from
presentation currency and
hyperinflation
CLP (000’s)

12.31.2018
CLP (000’s)
8,503,023
73,080,100
28,319,129
7,327,921
23,630,956 117,229,173

-
(428,980)
23,645,158
414,778

17 – OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES

Liabilities are detailed as follows:

Bank loans (17.1.1 – 2)
Bonds payable, net1 (17.2)
Deposits in guarantee
Derivative contract liabilities (see note 22)
Leasing agreements (17.4.1 – 2)
Total

Balance

Current

Non-current

12.31.2019
CLP (000’s)
1,438,161
21,604,601
11,163,005
374,576
6,013,535
40,593,878

12.31.2018
CLP (000’s)
21,542,736
20,664,481
12,242,464
130,829
1,534,467
56,114,977

12.31.2019
CLP (000’s)
909,486
718,962,871
-
-
23,454,700
743,327,057

12.31.2018
CLP (000’s)
2,439,253
700,327,057
-
-
13,797,468
716,563,778

1 Amounts net of placement expenses and discounts related to placement

The fair value of financial assets and liabilities is presented below:

Current

Cash and cash equivalent (2)
Other financial assets (1)
Trade debtors and other accounts receivable (2)
Accounts receivable related companies (2)
Bank loans (2)
Bonds payable (2)
Bottle guaranty deposits (2)
Derivative contracts liabilities (see note 20) (1)
Leasing agreements (2)
Accounts payable (2)
Accounts payable related companies (2)

Non-current

Other financial assets (1)
Accounts receivable, non-current (2)
Accounts receivable related companies (2)
Bank loans (2)
Bonds payable (2)
Leasing agreements (2)
Accounts payable, non-current (2)

Book Value
12.31.2019
CLP (000’s)
157,567,986
317,205
191,077,588
10,619,740
1,438,161
21,604,601
11,163,005
374,576
6,013,535
243,700,553
53,637,601

12.31.2019
CLP (000’s)
98,918,457
523,769
283,118
909,486
718,962,871
23,454,700
619,587

Fair Value
12.31.2019
CLP (000’s)
157,567,986
317,205
191,077,588
10,619,740
1,434,255
24,188,060
11,163,005
374,576
6,013,535
243,700,553
53,637,601

12.31.2019
CLP (000’s)
98,918,457
523,769
283,118
867,025
803,017,145
23,454,700
619,587

Book Value
12.31.2018
CLP (000’s)
137,538,613
669,527
174,113,323
9,450,263
21,542,736
20,664,481
12,242,464
130,829
1,534,467
238,109,847
45,827,859

12.31.2018
CLP (000’s)
97,362,295
1,270,697
74,340
2,439,253
700,327,057
13,797,468
735,665

Fair Value
12.31.2018
CLP (000’s)
137,538,613
669,527
174,113,323
9,450,263
21,542,736
20,664,481
12,242,464
130,829
1,534,467
238,109,847
45,827,859

12.31.2018
CLP (000’s)
97,362,295
1,270,697
74,340
2,439,253
700,327,057
13,797,468
735,665

(1)

(2)

Fair values are based on discounted cash flows using market discount rates at the close of the six-month and one-year
period and are classified as Level 2 of the fair value measurement hierarchies.

Financial instruments such as: Cash and Cash Equivalents, Trade and Other Accounts Receivable, Accounts
Receivable, Bottle Guarantee Deposits and Trade Accounts Payable, and Other Accounts Payable present a fair value
that approximates their carrying value, considering the nature and term of the obligation. The business model is to
maintain the financial instrument in order to collect/pay contractual cash flows, in accordance with the terms of the
contract, where cash flows are received/cancelled on specific dates that exclusively constitute payments of principal
plus interest on that principal. These instruments are revalued at amortized cost.

17.1.1 Bank obligations, current

Tax ID

Indebted entity
Name

Country

Tax ID

Creditor entity
Name

Type of

Effective Nominal Up to 90 days to

Maturity

Country Currency Amortization Rate

Rate

96.705.990-0 Envases Central S.A.
Foreign

Embotelladora del Atlántico S.A. Argentina Foreign

Banco de la Nación Argentina

Chile

97.006.000-6 Banco BCI

Chile
Argentina ARS

Foreign
Foreign
Foreign
Foreign
Foreign
Total

Embotelladora del Atlántico S.A. Argentina Foreign
Foreign
Rio de Janeiro Refrescos Ltda. Brazil
Foreign
Rio de Janeiro Refrescos Ltda. Brazil
Foreign
Rio de Janeiro Refrescos Ltda. Brazil
Foreign
Rio de Janeiro Refrescos Ltda. Brazil

Banco Galicia y Buenos Aires S.A. Argentina ARS
BRL
Banco Itaú
BRL
Banco Santander
BRL
Banco Itaú
BRL
Banco Santander

Brazil
Brazil
Brazil
Brazil

17.1.2 Bank obligations, non-current

Semiannually
Monthly
Upon
maturity
Monthly
Monthly
Quarterly
Quarterly

90 days
CLP
(000’S)
2.13% 374,419
-

(

1 year
CLP
(000’S)
374,419
-

2.13%

20.00% 20.00%

82.00% 82.00% 8,453
6.63% 635,727
6.63%
7.15%
7.15%
-
4.50% 11,678
4.50%
-
6.24%
6.24%

-
-
-
33,465
-

Indebted Entity

Creditor Entity

Type

Effective Nominal

Tax ID

Name

Country

Tax ID

Name Country Currency Amortization Rate

96.705.990-0 Envases Central S.A.
Foreign
TOTAL

Chile
Rio de Janeiro Refrescos Ltda. Brazil

97.006.000-6 Banco BCI Chile
Banco Itaú Brazil
Foreign

UF
BRL

Semiannually
Monthly

2.13%
6.63%

More
than
4
years
Up to
5

Maturity
More
than
3
years
Up to
4
years
CLP
(000’s)
-

More
than
2
years
Up to
3
years
CLP
(000’s)
-

Rate

More
1 year
than 5
a
up to
years Years 12.31.
2 years
CL
CLP
CLP
CLP
(000
(000’s)
(000’s)
(000’s)
2.13% 736,033
736
-
-
6.63% 44,621 44,621 44,621 39,590
173
-
909

17.1.2 Bank obligations, non-current previous

Maturity

Indebted Entity

Creditor Entity

Type of

Effective Nominal

Tax ID

Name

Country

Tax ID

Name Country Currency Amortization Rate

Rate

1 year to
2 years

CLP (000’S)

More
than

More
than 2

More
than 5
Up to 3 years Up to 4 years Up to 5 years years
CLP
(000’S

CLP
(000’S)

More
than 4

Envases
Central
S.A.
Rio de
Janeiro
Refrescos
Ltda.
Rio de
Janeiro
Refrescos
Ltda.
Rio de
Janeiro
Refrescos
Ltda.
Rio de
Janeiro
Refrescos
Ltda.

96.705.990-0

Foreign

Total

Chile

97.006.000-6

Brazil

Foreign

Banco
BCI

Banco
Itaú

Chile

Semiannually

2.1%

2.1% 1,434,786

Brazil

BRL

Monthly

6.6%

72,439

43,033

81,225

Brazil

Foreign

Banco
Santander Brazil

BRL

Monthly

7.2%

151,873

Brazil

Foreign

Banco
Santander Brazil

BRL

Quarterly

6.2%

Brazil

Foreign

Banco
Itaú

Brazil

BRL

Quarterly

4.5%

612,864

17.1.3 Current and non-current bank obligations “Restrictions”

Bank obligations are not subject to restrictions for the reported periods.

17.2 Bonds payable

During 2018, Andina carried out a debt restructuring process that consisted of a partial repurchase in the amount of USD 210
million of the 144A/RegS Senior Notes and refinancing it with the placement of Series F bonds in the local market in the amount of
UF 5.7 million due 2039 and accruing an annual interest rate of 2.83%. The costs corresponding to the repurchase of bonds,
associated with premium payments, overpricing and proportional amortization of placement costs and discounts in bonds in
original U.S. Dollars amounting to CLP 9,583,000 thousand, were recorded in results under the item financial costs.

Current

Non-current

Total

Composition of bonds payable

Bonds (face value) 2

12.31.2019
CLP
(000’s)

12.31.2018
CLP
(000’s)

CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)
22,189,595, 21,038,064 721,950,553 704,048,747 744,140,148 725,086,811

12.31.2019

12.31.2018

12.31.2019

12.31.2018

17.2.1 Current and non-current balances

Bonds payable correspond to bonds in UF issued by the parent company on the Chilean market and bonds in U.S. dollars issued by
the Parent Company on the international market. A detail of these instruments is presented below:

Bonds

Series

CMF Registration N°254 06.13.2001

CMF Registration N°641 08.23.2010

CMF Registration N°759 08.20.2013

CMF Registration N°760 08.20.2013

CMF Registration N°760 04.02.2014

CMF Registration N°912 10.10.2018

Bonds USA
Total

Current
Nominal
amount

1,891,186

1,500,000

250,000

4,000,000

3,000,000

5,700,000

365,000,000

USD

Adjustment
Unit

Interest
Rate

Final
Maturity

Interest
payment

Current

Non-current

12.31.2019

12.31.2018

12.31.2019

12.31.2018

6.5%

4.0%

3.5%

3.8%

3.75%

2.83%

5.0%

06-01-
2026
08-15-
2031
08-16-
2020
08-16-
2034
03-01-
2035
09-25-
2039
10-01-
2023

Semi-
annually
Semi-
annually
Semi-
annually
Semi-
annually
Semi-
annually
Semi-
annually
Semi-
annually

CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)

7,160,809

6,598,389

46,659,296

52,132,023

630,731

614,152

42,464,910

41,348,685

7,168,907

7,069,487

6,891,448

1,587,051

1,545,334

113,239,760

110,263,160

1,048,938

1,027,009

84,929,828

82,697,378

1,195,700

1,013,805

161,366,658

157,125,003

3,397,459
22,189,595

3,169,888
21,038,064

273,290,101
721,950,553

253,591,050
704,048,747

Accrued interest included in the current portion of bonds payable as of December 31, 2019 and 2018 amounts to CLP 7,983,770
thousand and CLP 7,856,274 thousand, respectively.

2 Amounts gross, not consider placement expenses and discounts related to placement

17.2.3 Non-current maturities

CMF Registration N°254 06.13.2001
CMF Registration N°641 08.23.2010
CMF Registration N°760 08.20.2013
CMF Registration N°760 04.02.2014
CMF Registration N°912 10.10.2018
Bonds USA
Total

17.2.4 Market rating

Year of maturity

Total non-
current

CLP (000’s)

Series more than 1 to 2 more than 2 to 3 more than 3 to 4 More than 5 12.31.2019
CLP (000’s) CLP (000’s)
46,659,296
42,464,910
- 113,239,760 113,239,760
84,929,828
-
- 161,366,658 161,366,658
273,290,101
- 273,290,101
285,461,315 413,637,541 721,950,553

7,803,536
3,860,446
-
-
-
-
11,663,982

7,327,269
3,860,446
-
-
-
-
11,187,715

23,217,724
30,883,571

8,310,767
3,860,447

B
C
D
E
F
-

84,929,828

The bonds issued on the Chilean market had the following rating :

AA : ICR Compañía Clasificadora de Riesgo Ltda. rating
AA : Fitch Chile Clasificadora de Riesgo Limitada rating

The rating of bonds issued on the international market had the following rating:

BBB : Standard&Poors Global Ratings
BBB+ : Fitch Ratings Inc.

17.2.5 Restrictions

17.2.5.1 Restrictions regarding bonds placed abroad.

Obligations with bonds placed abroad are not affected by financial restrictions for the periods reported

17.2.5.2 Restrictions regarding bonds placed in the local market.

For purposes of the calculation of the covenants, the amount of EBITDA that was agreed on each bond issue is included.

Restrictions on the issuance of bonds for a fixed amount registered under number 254.

(cid:120) Maintain an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times.
For these purposes Consolidated Financial Liabilities shall be regarded as Liabilities Receivables accruing interest, namely: (i)
other current financial liabilities, plus (ii) other non-current financial liabilities, less (iii) asset balances of derivative financial
instruments, taken to cover exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets"
and "Other non-current Financial Assets" of the Issuer’s Consolidated Financial Statements. Consolidated Equity will be
regarded as total equity including non-controlling interest.

As of December 31, 2019, indebtedness level is 0.71 times of Consolidated Equity.

(cid:120) Maintain, and in no manner lose, sell, assign or transfer to a third party, the geographical area currently denominated as the
“Metropolitan Region” (Región Metropolitana) as a territory in Chile in which we have been authorized by The Coca-Cola
Company for the development, production, sale and distribution of products and brands of the licensor, in accordance to the
respective bottler or license agreement, renewable from time to time.

(cid:120) Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of this date is franchised by
TCCC to the Company for the development, production, sale and distribution of products and brands of such licensor, as long
as any of these territories account for more than 40% of the Issuer's Adjusted Consolidated Operating Cash Flow.

(cid:120) Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of

the issuer’s unsecured consolidated liabilities.

Unsecured consolidated liabilities payable shall be regarded as the total liabilities, obligations and debts of the issuer that are
not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less
the asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities
under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of
Financial Position.

Consolidated Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge,
mortgage or other real lien voluntarily and conventionally constituted by the issuer less asset balances of derivative financial
instruments, taken to cover exchange rate or interest rate risks on financial liabilities and under "Other Current Financial
Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position.

As of December 31, 2019, this index is 1.71 times.

Restrictions to bond lines registered in the Securities Registered under number 641.

(cid:120) Maintain a level of "Net Financial Debt" within its quarterly financial statements that may not exceed 1.5 times, measured over
figures included in its consolidated statement of financial position. To this end, net financial debt shall be defined as the ratio
between net financial debt and total equity of the issuer (equity attributable to controlling owners plus non-controlling interest).
On its part, net financial debt will be the difference between the Issuer's financial debt and cash.

As of December 31, 2019, Net Financial Debt level was 0.66 times.

(cid:120) Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of

the issuer’s unsecured consolidated liabilities.

Unencumbered assets refer to the assets that are the property of the issuer; classified under Total Assets of the Issuer’s
Financial Statements; and that are free of any pledge, mortgage or other liens constituted in favor of third parties, less "Other
Current Financial Assets" and "Other Non-Current Financial Assets" of the Issuer’s Financial Statements (to the extent they
correspond to asset balances of derivative financial instruments, taken to hedge exchange rate and interest rate risk of the
financial liabilities).

Unsecured total liabilities correspond to: liabilities from Total Current Liabilities and Total Non-Current Liabilities of Issuer’s
Financial Statement which do not benefit from preferences or privileges, less "Other Current Financial Assets" and "Other
Non-Current Financial Assets" of the Issuer’s Financial Statements (to the extent they correspond to asset balances of
derivative financial instruments, taken to hedge exchange rate and interest rate risk of the financial liabilities).

As of December 31, 2019, this index is 1.71 times.

(cid:120) Maintain a level of "Financial net coverage" in its quarterly financial statements of more than 3 times. Net financial coverage
means the ratio between the Issuer's Ebitda for the past 12 months and net financial expenses (financial income less financial
expenses) of the issuer for the past 12 months. However, this restriction will be considered breached when the mentioned net
financial coverage level is lower than the level previously indicated during two consecutive quarters.

As of December 31, 2019, Net Financial Coverage level is 306.38 times.

Restrictions to bond lines registered in the Securities Registrar under numbers 759 and 760 D-E.

(cid:120) Maintain an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times.
For these purposes Consolidated Financial Liabilities shall be regarded as Liabilities Receivables accruing interest, namely: (i)
other current financial liabilities, plus (ii) other non-current financial liabilities, less (iii) cash and cash equivalent and (iv)
other current financial assets, and (v) other non-current financial assets (to the extent they are asset balances of derivative
financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities). Consolidated Equity will be
regarded as total equity including non-controlling interest.

As of December 31, 2019, Indebtedness Level is 0.54 times of Consolidated Equity.

(cid:120) Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of

the issuer’s unsecured consolidated liabilities payable.

Unsecured Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are
not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less
the asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities
under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of
Financial Position.

The following will be considered in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well
as those assets having a pledge, mortgage or real encumbrances that operate solely by law, less asset balances of derivative
financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities under "Other Current Financial
Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Financial Statements. Therefore, Consolidated
Assets free of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other
real lien voluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken
to cover exchange rate or interest rate risks on financial liabilities and under "Other Current Financial Assets" and "Other non-
current Financial Assets" of the Issuer’s Consolidated Statement of Financial Position.

As of December 31, 2019, this index is 1.71 times.

(cid:120) Maintain, and in no manner, lose, sell, assign or transfer to a third party, the geographical area currently denominated as the
“Metropolitan Region” as a territory franchised to the Issuer in Chile by The Coca-Cola Company, hereinafter also referred to
as "TCCC" or the "Licensor" for the development, production, sale and distribution of products and brands of said licensor, in
accordance to the respective bottler or license agreement, renewable from time to time. Losing said territory, means the non-
renewal, early termination or cancellation of this license agreement by TCCC, for the geographical area today called
"Metropolitan Region". This reason shall not apply if, as a result of the loss, sale, transfer or disposition, of that licensed
territory is purchased or acquired by a subsidiary or an entity that consolidates in terms of accounting with the Issuer.

(cid:120) Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of the issuance date of these
instruments is franchised by TCCC to the Issuer for the development, production, sale and distribution of products and brands
of such licensor, as long as any of these territories account for more than 40% of the Issuer's Adjusted Consolidated Operating
Cash Flow of the audited period immediately before the moment of loss, sale, assignment or transfer. For these purposes, the
term "Adjusted Consolidated Operating Cash Flow" shall mean the addition of the following accounting accounts of the Issuer's
Consolidated Statement of Financial Position: (i) "Gross Profit" which includes regular activities and cost of sales; less (ii)
"Distribution Costs"; less (iii) "Administrative Expenses"; plus (iv) "Participation in profits (losses) of associates and joint
ventures that are accounted for using the equity method"; plus (v) "Depreciation"; plus (vi) "Intangibles Amortization".

Restrictions to bond lines registered in the Securities Registrar under number 912.

(cid:120) Maintain an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times.

For these purposes Consolidated Financial Liabilities shall be regarded as Liabilities Receivables accruing interest, namely: (i)
other current financial liabilities, plus (ii) other non-current financial liabilities, less (iii) cash and cash equivalent and (iv)
other current financial assets, and (v) other non-current financial assets (to the extent they are asset balances of derivative
financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilities). Consolidated Equity will be
regarded as total equity including non-controlling interest.

As of December 31, 2019, this index equals 0.65 times.

(cid:120) Maintain consolidated assets free of any pledge, mortgage or other encumbrances for an amount at least equal to 1.3 times of

the issuer’s unsecured consolidated liabilities payable.

As of December 31, 2019, this index equals 1.71 times.

(cid:120) Not lose, sell, assign, or transfer to a third party any other territory of Argentina or Brazil, which as of the issuance date of
local bonds Series C, D and E is franchised by TCCC to the Issuer for the development, production, sale and distribution of
products and brands of such licensor, as long as any of these territories account for more than 40% of the Issuer's Adjusted
Consolidated Operating Cash Flow of the audited period immediately before the moment of loss, sale, assignment or transfer.
For these purposes, the term "Adjusted Consolidated Operating Cash Flow" shall mean the addition of the following
accounting accounts of the Issuer's Consolidated Statement of Financial Position: (i) "Gross Profit" which includes regular
activities and cost of sales; less (ii) "Distribution Costs"; less (iii) "Administrative Expenses"; plus (iv) "Participation in profits
(losses) of associates and joint ventures that are accounted for using the equity method"; plus (v) "Depreciation"; plus (vi)
"Intangibles Amortization".

As of December 31, 2018, the Company complies with all financial collaterals.

17.2.6 Repurchased bonds

In addition to UF bonds, the Company holds bonds that it has repurchased in full through companies that are included in the
consolidation:

The subsidiary Rio de Janeiro Refrescos Ltda. maintains a liability corresponding to a bond issuance for US $75 million due in
December 2020 and semi-annual interest payments. As of December 31, 2019, these issues are held by Andina. On January 1,
2013, Abisa Corp S.A. transferred the totality of this asset to Embotelladora are Andina S.A., the latter becoming the creditor of the
above-mentioned Brazilian subsidiary. Consequently, the assets and liabilities related to the transaction have been eliminated from
these Consolidated Financial Statements. In addition, the transaction has been treated as a net investment of the group in the
Brazilian subsidiary; consequently, the effects of exchange rate differences between the dollar and the functional currency of each
one has been recorded in other comprehensive income.

17.3 Derivative contract obligations

Please see details in Note 22

Maturity

Up to
90 days
CLP
(000’S)

90 days
up to
1 year
CLP
(000’S)

At
12.31.2019
CLP
(000’S)

17.4.1 Current liabilities for leasing agreements

Indebted Entity
Name

Country

Creditor Entity
Name

Tax ID

Country Currency Amortization Rate

Rate

Type of

Effective Nominal

Rio de Janeiro
Refrescos
Ltda.
Rio de Janeiro
Refrescos
Ltda.
Rio de Janeiro
Refrescos
Ltda.
Rio de Janeiro
Refrescos
Ltda.
Rio de Janeiro
Refrescos
Ltda.
Rio de Janeiro
Refrescos
Ltda.
Embotelladora
del Atlántico
S.A.
Embotelladora
del Atlántico
S.A.
Embotelladora
del Atlántico
S.A.

Brazil

Foreign

Banco
Santander Brazil

BRL

Monthly

9.65%

9.47%

Brazil

Foreign

Brazil

Foreign

Citibank Brazil
Cogeração
- Light
ESCO

Brazil

BRL

Monthly

8.54%

8.52%

BRL

Monthly

13.00%

12.28% 200,472

639,030

839,502

Brazil

Foreign

Tetra
Pack

Brazil

BRL

Monthly

7.65%

7.39% 87,735

273,119

360,854

Brazil

Foreign

Imóveis

Brazil

BRL

Monthly

8.20%

8.20% 90,234

210,104

300,338

Brazil

Foreign

Leão

Brazil

BRL

Monthly

6.56%

6.56% 127,226

370,160

497,386

Argentina Foreign

Vital Aguas
S.A

Chile

76.389.720-6

Envases
Central S.A

Chile

96.705.990-0

Paraguay
Refrescos SA Paraguay 80.003.400-7

Tetra Pak
SRL

Banco
Comafi

Real
Estate
Coca Cola
del Valle
New
Ventures
S.A
Coca Cola
del Valle
New
Ventures
S.A
Tetra
Pack
Ltda. Suc.
Py

Argentina USD

Monthly

12.00%

12.00% 33,204

99,611

132,815

Argentina USD

Monthly

12.00%

12.00% 22,184

66,555

88,739

Argentina ARS

Monthly

50.00%

50.00% 66,607

122,713

189,320

Chile

CLP

Lineal

6.20%

6.20% 292,471

877,413

1,169,884

Chile

CLP

Lineal

6.20%

6.20% 549,750 1,649,248

2,198,998

Paraguay

PGY

Monthly

0.00%

0.00% 58,925

176,774
Total

235,699
6,016,535

The Company maintains lease agreements on forklifts, vehicles, real estate and machinery. These leases have an average life of
between one and eight years without including a renewal option in the contracts.

17.4.2 Non-current liabilities for leasing agreements, non-current

Indebted Entity
Name

Country

Creditor Entity

Type of

Effective Nominal

Rut

Name

Country Currency Amortization Rate

Rate

Maturity

1 year up to
2 years
M$

2 years up
to
3 years
M$

3 years up
to
4 years
M$

4 years up
to
5 years
M$

More than
5 years
M$

At
12.31.2019
M$

Rio de Janeiro
Refrescos
Ltda.
Rio de Janeiro
Refrescos
Ltda.
Rio de Janeiro
Refrescos
Ltda.

Rio de Janeiro
Refrescos
Ltda.
Embotelladora
del Atlántico
S.A.
Embotelladora
del Atlántico
S.A.
Embotelladora
del Atlántico
S.A.

Brazil

Foreign

Brazil

Foreign

Brazil

Foreign

Brazil

Foreign

Argentina O-E

Vital Aguas
S.A

Chile

76.572.588-7

Envases
Central S.A

Chile

76.572.588-7

Paraguay
Refrescos SA Paraguay 80.003.400-7
Total

Cogeração
- Light
ESCO

Tetra
Pack

Real
estate
Leão
Alimentos
e Bebidas
Ltda.

Tetra Pak
SRL

Banco
Comafi

Real
estate
Coca Cola
del Valle
New
Ventures
S.A
Coca Cola
del Valle
New
Ventures
S.A
Tetra
Pack Ltda.
Suc. Py

Brazil

BRL

Monthly

13.00% 12.28%

948,466 1,071,766 1,211,096 1,368,538

8,101,730 12,701,596

Brazil

BRL

Monthly

7.65%

7.39%

271,264

111,005

Brazil

BRL

Monthly

8.20%

97,784

9,144

382,269

106,928

Brazil

BRL

Monthly

6.56%

365,671

355,172

339,020

331,185

375,688

1,766,736

Argentina

USD

Monthly

12.00% 12.00%

Argentina

USD

Monthly

12.00% 12.00%

Argentina

ARS

Monthly

50.00% 50.00%

398,442

110,924

55,222

Chile

CLP

Monthly

6.2%

0.27% 2,242,278

Chile

CLP

Monthly

6.7%

0.27% 4,947,745

Paraguay

PGY

Monthly

0.00%

399,456

343,104

741,546

110,924

55,222

2,242,278

4,947,745

399,456
23,454,700

17.4.3 Non-current liabilities for leasing agreements (previous year)

Indebted Entity
Name Country

Tax, ID

Creditor Entity
Name

Country Currency

Amortization Effective Nominal

Type

rate

Rate

Maturity

1 year
to
2 years
CLP
(000’s)

2 years
to
3 years
CLP
(000’s)

3 years to
4 years
CLP
(000’s)

4 years to More
5 years
CLP
(000’s)

5 years
CLP
(000’s)

at
12.31.2018
CLP
(000’s)

Rio de
Janeiro
Refrescos
Ltda.
Rio de
Janeiro
Refrescos
Ltda.
TOTAL

Brazil

Foreign

Cogeração
Light
Esco

Brazil

Foreign

Tetra
Pack

Brazil

BRL

Monthly

13.00%

12.28% 810,185

915,509

1,034,525

1,169,014 9,466,995 13,396,228

Brazil

BRL

Monthly

7.65%

7.39% 401,240

401,240
13,797,468

Leasing agreement obligations are not subject to financial restrictions for the reported periods.

18 – TRADE AND OTHER ACCOUNTS PAYABLE

Trade and other current accounts payable are detailed as follows:

Classification

Current
Non-current
Total

Item

Trade accounts payable
Withholding tax
Others
Total

12.31.2018
12.31.2019
CLP (000’s) CLP (000’s)
243.700.553 238,109,847
735,665
244.320.140 238,845,512

619.587

12.31.2019

12.31.2018
CLP (000’s) CLP (000’s)
172,142,472 174,486,806
47,693,379
53,326,254
18,851,414
16,665,327
244,320,140 238,845,512

19 – OTHER PROVISIONS, CURRENT AND NON-CURRENT

19.1 Balances

The composition of provisions is as follows:

Detail

Litigation (1)
Total

Current
Non-current
Total

12.31.2019
12.31.2018
CLP (000’s) CLP (000’s)
62,452,526
62,452,526

69,107,550

2,068,984
67,038,566
69,107,550

3,485,613
58,966,913
62,452,526

(1)

Correspond to the provision made for the probable losses of fiscal, labor and commercial contingencies, based on the
opinion of our legal advisors, according to the following detail:

Detail (see note 23.1)

Tax contingencies
Labor contingencies
Civil contingencies
Total

12.31.2018
12.31.2019
CLP (000’s) CLP (000’s)
47,991,514
10,376,830
4,084,182
62,452,526

38,853,059
10,569,754
19,684,737
69,107,550

19.2 Movements

The movement of principal provisions over litigation is detailed as follows:

Detail

Opening balance as of January 1
Additional provisions
Increases (decrease) in existing provisions (*)
Payments
Reversal of unused provision
Increase (decrease) due to foreign exchange differences
Total

12.31.2018
12.31.2019
CLP (000’s) CLP (000’s)
65,624,166
46,657
(4,998,530)
6,139,963
(2,157,152)
(2,202,578)
62,452,526

62,452,526
121,003
(13,085,051)
21,506,141
(2,511,589)
624,520
69,107,550

(*) During 2019 and 2018, provisions consisting of fines demanded by the Brazilian tax authority on the use of tax credits
resulting from favorable sentencing to Rio de Janeiro Refrescos Ltda.

20 – OTHER NON-FINANCIAL LIABILITIES

Other current and non-current liabilities at each reporting period end are detailed as follows:

Description

Dividends payable
Other
Total

21 – EQUITY

21.1 Number of shares:

12.31.2019
12.31.2018
CLP (000’s) CLP (000’s)
21,584,314
12,189,900
33,774,214

22,639,150
3,863,065
26,502,215

Number of shares subscribed
at
nominal value

Number of shares paid in

Number of voting shares

Series
A
B

2019
473,289,301
473,281,303

2018
473,289,301
473,281,303

2019
473,289,301
473,281,303

2018
473,289,301
473,281,303

2019
473,289,301
473,281,303

2018
473,289,301
473,281,303

21.1.1 Equity:

Series

A
B
Total

21.1.2 Rights of each series:

Subscribed Capital
2018
2019

Paid-in capital

2019

2018

CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)
135,379,504 135,379,504 135,379,504 135,379,504
135,358,070 135,358,070 135,358,070 135,358,070
270,737,574 270,737,574 270,737,574 270,737,574

(cid:120)
(cid:120)

Series A: Elects 12 of the 14 Directors
Series B: Receives an additional 10% of dividends distributed to Series A and elects 2 of the 14 Directors.

21.2 Dividend policy

According to Chilean law, cash dividends must be paid equal to at least 30% of annual net profit, barring a unanimous vote by
shareholders to the contrary. If there is no net profit in a given year, the Company will not be legally obligated to pay dividends
from retained earnings. At the ordinary Shareholders’ Meeting held in April 2019, the shareholders agreed to pay out of the 2018
earnings a final dividend additional to the 30% required by Chile’s Law 18,046 which will be paid in May 2019, and an additional
dividend that will be paid in August 2019.

Pursuant to Circular Letter N° 1,945 of the Chilean Financial Market Commission (CMF) dated September 29, 2009, the
Company’s Board of Directors decided to maintain the initial adjustments from adopting IFRS as accumulated earnings for future
distribution.

The dividends declared and paid per share are presented below:

Periods

January
May
August
October
January
May
August
October
January

Dividend type
Interim
Final
Additional
Interim
Interim
Final
Additional
Interim
Interim

2018
2018
2018
2018
2019
2019
2019
2019
2020

Profits imputable to
dividends
2017 Earnings
2017 Earnings
Accumulated Earnings
2018 Earnings
2018 Earnings
2018 Earnings
Accumulated Earnings
2019 Earnings
2019 Earnings

Ch$ per Series A Share Ch$ per Series B Share
23.65
23.65
23.65
23.65
23.65
23.65
23.65
23.65
24.86

21.50
21.50
21.50
21.50
21.50
21.50
21.50
21.50
22.60

21.3 Other Reserves

The balance of other reserves includes the following:

Description

Goodwill in share exchange reserve
Translation differences reserves
Cash flow hedge reserves
Reserve for employee benefits actuarial gains or losses
Legal and statutory reserves
Other
Total

21.3.1 Goodwill in share exchange reserve

12.31.2019
CLP (000’s)
421,701,520
(339,076,340)
(14,850,683)
(2,230,752)
5,435,538
6,014,568
76,993,851

12.31.2018
CLP (000’s)
421,701,520
(306,674,529)
(13,668,932)
(1,954,077)
5,435,538
6,014,569
110,854,089

This amount corresponds to the difference between the valuation at fair value of the issuance of shares of Embotelladora Andina
S.A. and the book value of the paid capital of Embotelladoras Coca-Cola Polar S.A., which was finally the value of the capital
increase notarized in legal terms.

21.3.2 Cash flow hedge reserve

They arise from the fair value of the existing derivative contracts that have been qualified for hedge accounting at the end of each
financial period. When contracts are expired, these reserves are adjusted and recognized in the income statement in the
corresponding period (see Note 22).

21.3.3 Reserve for employee benefit actuarial gains or losses

Corresponds to the restatement effect of employee benefits actuarial losses that according to IAS 19 amendments must be carried to
other comprehensive income.

21.3.4 Legal and statutory reserves

In accordance with Official Circular N° 456 issued by the Chilean Financial Market Commission (CMF), the legally required price-
level restatement of paid-in capital for 2009 is presented as part of other equity reserves and is accounted for as a capitalization
from Other Reserves with no impact on net income or retained earnings under IFRS. This amount totaled CLP 5,435,538 thousand
as of December 31, 2009.

21.3.5 Foreign currency translation reserves

This corresponds to the conversion of the financial statements of foreign subsidiaries whose functional currency is different from
the presentation currency of the Consolidated Financial Statements. Additionally, exchange differences between accounts
receivable kept by the companies in Chile with foreign subsidiaries are presented in this account, which have been treated as
investment equivalents accounted for using the equity method. Translation reserves are detailed as follows:

Details

Brazil
Argentina
Paraguay
Total

12.31.2019
12.31.2018
CLP (000’s) CLP (000’s)
(98,794,118) (114,180,197)
(246,415,922) (201,118,180)
8,623,849
(339,076,340) (306,674,528)

6,133,700

The movement of this reserve for the fiscal years ended December 31, 2019 and 2018, is detailed as follows:

Details

Brazil
Argentina
Paraguay
Total

21.4 Non-controlling interests

12.31.2019
12.31.2018
CLP (000’s) CLP (000’s)
(10,313,069)
(72,770,068)
13,486,181
(69,596,956)

15,386,079
(45,297,742)
(2,490,149)
(32,401,812)

This is the recognition of the portion of equity and income from subsidiaries owned by third parties. This account is detailed as
follows:

Details

Embotelladora del Atlántico S,A,
Andina Empaques Argentina S,A,
Paraguay Refrescos S,A,
Vital S,A,
Vital Aguas S,A,
Envases Central S,A,
Total

Non-controlling interests
Shareholders’ Equity

Income

December
2019
CLP
(000’s)

26,342
2,290
5,368,470
7,904,741
1,803,884
5,148,531
20,254,258

December
2018
CLP
(000’s)

23,260
2,113
5,378,074
7,674,785
1,986,493
4,836,892
19,901,617

December
2019
CLP
(000’s)

4,183
409
622,188
263,442
105,870
528,205
1,524,297

December
2018
CLP
(000’s)

3,633
96
556,112
271,063
36,696
(20,225)
847,375

Ownership interest %

2019

2018

0,0171
0,0209
2,1697
35,0000
33,5000
40,7300

21.5 Earnings per share

The basic earnings per share presented in the statement of comprehensive income is calculated as the quotient between income for
the period and the average number of shares outstanding during the same period.

Earnings per share used to calculate basic and diluted earnings per share is detailed as follows:

Earnings per share

Earnings attributable to shareholders (CLP 000’s)
Average weighted number of shares
Earnings per share (in CLP)

Earnings per share

Earnings attributable to shareholders (CLP (000’s))
Average weighted number of shares
Earnings per share (in CLP)

22 – DERIVATIVE ASSETS AND LIABILITIES

12.31.2019
SERIES A SERIES B
82,725,427
90,996,501
473,289,301 473,281,303
192.27

174.79

12.31.2018
SERIES A SERIES B
46,001,994
50,601,377
473,289,301 473,281,303
106.92

97.20

Embotelladora Andina currently maintains “Cross Currency Swaps” and “Currency Forward” agreements as derivative financial
instruments.

Cross Currency Swaps (“CCS”), also known as interest rate and currency swaps, are valued by the method of discounted future
cash flows at a market rate corresponding to the risk of the operation. CCS are currently maintained to re-denominate debt incurred
in currency and rate in USD to currency and rate in BRL. To discount future flows in BRL and USD, the Zero coupon curves of the
BRL and the Zero coupon USD are used, respectively.

On the other hand, the fair value of forward currency contracts is calculated in reference to current forward exchange rates for
contracts with similar maturity profiles.

As of December 31, 2019 and 2018, the Company held the following derivative instruments:

22.1 Derivatives accounted for as cash flow hedges:

Cross Currency Swaps associated with US Bonds

At December 31, 2019, the Company held cross currency swap derivative contracts to convert US Dollar public bond obligations of
USD 360 million into Real liabilities to hedge the Company’s exposure to variations in foreign exchange rates. Said contracts are
valued at their value and the net value to be received as of December 31, 2019 amounted to CLP 98,918,457 thousand. These swap
contracts have the same terms of the underlying bond obligation and expire in 2023.

The amount of exchange differences recognized in the statement of income related to financial liabilities in U.S. dollars and the
identified effective portion that was absorbed by the amounts recognized under comprehensive income.

22.2. Forward currency transactions expected to be very likely:

During 2019 and 2018, the Company entered into foreign currency forward contracts to hedge its exposure to expected future raw
materials purchases in US Dollars during these years. The total amount of outstanding forward contracts was USD 46.9 million as
of December 31, 2019 (USD 56.8 million as of December 31, 2018).

Futures contracts that ensure prices of future raw materials have not been designated as hedge agreements, since they do not fulfill
IFRS documentation requirements, whereby its effects on variations in fair value are accounted for directly under statements of
income in the "other gains and losses" account.

Fair value hierarchy

As of December 31, 2019, the Company held assets for derivative contracts for CLP 99,235,662 thousand (CLP 88,116,189
thousand as of December 31, 2018) and held liabilities for derivative contracts as of December 31, 2019 for CLP 374,576 thousand
(CLP 130,829 thousand as of December 31, 2018). Those contracts covering existing items have been classified in the same
category of hedged, the net amount of derivative contracts by concepts covering forecasted items have been classified in financial
assets and financial liabilities. All the derivative contracts are carried at fair value in the consolidated statement of financial
position. The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2: Inputs other than quoted prices included in level 1 that are observable for the assets and liabilities, either directly (that

is, as prices) or indirectly (that is, derived from prices)

Level 3: Inputs for assets and liabilities that are not based on observable market data.

During the reporting period, there were no transfers of items between fair value measurement categories; all of which were
valued during the period using level 2.

Assets
Current assets
Other current financial assets
Other non-current financial assets
Total assets

Liabilities
Current liabilities
Other current financial liabilities
Total liabilities

Fair Value Measurements at December 31,
2019

Quoted
prices in
active
markets
for identical
assets or
liabilities
(Level 1)
CLP (000’S)

Observable
market data
(Level 2)
CLP (000’S)

Unobservable
market data
(Level 3)
CLP (000’S)

Total
CLP (000’S)

-
-
-

-
-

317,205
98,918,457
99,235,662

374,576
374,576

-
-
-

-
-

317,205
98,918,457
99,235,662

374,576
374,576

Fair Value Measurements at December 31,
2018

Quoted
prices in
active
markets
for identical
assets or
liabilities
(Level 1)

Observable
market data
(Level 2)

Unobservable
market data
(Level 3)

Total

Assets
Current assets Other current financial assets
Other non-current financial assets
Total assets

Liabilities
Current liabilities
Other current financial liabilities
Total liabilities

CLP (000’s)

-
-
-

-
-

669,527
87,446,662
88,116,189

130,829
130,829

669,527
87,446,662
88,116,189

130,829
130,829

-
-

23 – LITIGATION AND CONTINGENCIES

23.1 Lawsuits and other legal actions:

In the opinion of the Company's legal counsel, the Parent Company and its subsidiaries do not face legal or extrajudicial
contingencies that might result in material or significant losses or gains, except for the following:

1) Embotelladora del Atlántico S.A. faces labor, tax, civil and trade lawsuits. Accounting provisions have been made for the
contingency of a probable loss because of these lawsuits, totaling CLP 942,173 thousand. Management considers it unlikely
that non-provisioned contingencies will affect the Company's income and equity, based on the opinion of its legal counsel.
Additionally, Embotelladora del Atlántico S.A. maintains time deposits for an amount of CLP 457,576 thousand to guaranty
judicial liabilities

2) Rio de Janeiro Refrescos Ltda. faces labor, tax, civil and trade lawsuits. Accounting provisions have been made for the
contingency of a probable loss because of these lawsuits, totaling CLP 66,070,162 thousand. Management considers it unlikely
that non-provisioned contingencies will affect the Company's income and equity, based on the opinion of its legal counsel. As it
is customary in Brazil, Rio de Janeiro Refrescos Ltda. maintains Deposit in courts and assets given in pledge to secure the
compliance of certain processes, irrespective of whether these have been classified as a possible, probable or remote. The
amounts deposited or pledged as legal guarantees As of December 31, 2019 and 2018, amounted to CLP 32,166,823 thousand
and CLP 31,143,415 thousand, respectively.

Part of the assets held under warranty by Rio de Janeiro Refrescos Ltda. as of December 31, 2014, are in the process of being
released and others have already been released in exchange for guarantee insurance and bond letters for BRL 1,152,911,259,
with different Financial Institutions and Insurance Companies in Brazil, these entities receive an annual commission fee of
0.59%. and become responsible of fulfilling obligations with the Brazilian tax authorities should any trial result against Rio de
Janeiro Refrescos Ltda. Additionally, if the warranty and bail letters are executed, Rio de Janeiro Refrescos Ltda. promises to
reimburse to the financial institutions and Insurance Companies any amounts disbursed by them to the Brazilian government.

Main contingencies faced by Rio de Janeiro Refrescos are as follows:

a) Tax contingencies resulting from credits on tax on industrialized products (IPI).

Rio de Janeiro Refrescos is a party to a series of proceedings under way, in which the Brazilian federal tax authorities demand
payment of value-added tax on industrialized products (Imposto sobre Produtos Industrializados, or IPI) allegedly owed by ex-
Companhia de Bebidas Ipiranga. The initial amount demanded reached BRL 1,330,473,161 (historical amount without
adjustments), corresponding to different trials related to the same cause. In September 2014, one of these trials for BRL
598,745,218, was settled in favor of the Company, and additionally during 2017 several trials were settled in favor of the
Company in the amount for BRL 135,282,155 however, there are new lawsuits arising after the purchase of ex-Companhia de
Bebidas Ipiranga (October 2013) that amount to BRL 375,286,356.

The Company does not share the position of the Brazilian tax authority in these procedures and considers that Companhia de
Bebidas Ipiranga was entitled to claim IPI tax credits in connection with purchases of certain exempt raw materials from
suppliers located in the Manaus free trade zone.

Based on the opinion of its advisers, and legal outcomes to date, Management estimates that these procedures do not represent
probable losses and has not recorded a provision on these matters.

Notwithstanding the above, the IFRS related to business combination in terms of distribution of the purchase price establish that
contingencies must be measured one by one according to their probability of occurrence and discounted at fair value from the
date on which it is deemed the loss can be generated. According to this criterion, from a total of identified contingencies
amounting BRL 694,085,017 (including readjustments of current lawsuits), the Company recorded a provision for the
beginning of business combination accounting in the amount BRL 213,122,274 equivalent to CLP 39,608,019 thousand.

b) Tax contingencies on ICMS and IPI causes.

They refer mainly to tax settlements issued by advance appropriation of ICMS credits on fixed assets, payment of the
replacement of ICMS tax to the operations, untimely IPI credits calculated on bonuses, among other claims.

The Company does not consider that these judgments will result in significant losses, given that their loss, according to its legal
counsel, is considered unlikely. However, the accounting standards of financial information related to business combination in
terms of distribution of the purchase price, establish contingencies must be valued one by one according to their probability of
occurrence and discounted to fair value from the date on which it is deemed that the loss can be generated. Based on this
criterion, a starting provision has been made in the accounting of the business combination for BRL 77,587,076 equivalent to
CLP 14,412,520

3) Embotelladora Andina S.A. and its Chilean subsidiaries face labor, tax, civil and trade lawsuits. Accounting provisions have
been made for the contingency of a probable loss because of these lawsuits, totaling CLP 2,065,496 thousand. Management
considers it is unlikely that non-provisioned contingencies will affect income and equity of the Company, in the opinion of its
legal advisors.

4) Paraguay Refrescos S.A. faces tax, trade, labor and other lawsuits. Accounting provisions have been made for the contingency
of any loss because of these lawsuits amounting to CLP 3,488 thousand. Management considers it is unlikely that non-
provisioned contingencies will affect income and equity of the Company, in the opinion of its legal advisors.

23.2 Direct guarantees and restricted assets:

Guarantees and restricted assets are detailed as follows:

Guarantees that commit assets included in the financial statements:

Committed assets

Accounting value

Guaranty creditor

Debtor name

Relationship

Guaranty

Type

Gas Licuado Lipigas S.A.

Transportes San Martin
Cooperativa Agrícola
Pisquera Elqui Limitada
Inmob. e invers. supetar
Ltda.

Embotelladora
Andina S.A.

Embotelladora
Andina S.A.
Embotelladora
Andina S.A.

Parent company Cash

Transportes Polar

Subsidiary

Maria Lobos Jamet

Transportes Polar

Subsidiary

Bodega San Francisco

Employee claims

Civil and tax claims

Government entities

Distribuidora Baraldo S.H.

Acuña Gomez

Nicanor López

Labarda

Municipalidad Bariloche
Municipalidad San Antonio
Oeste
Municipalidad Carlos
Casares

Municipalidad Chivilcoy

Others

Granada Maximiliano

Cicsa

Other lessors

Aduana de EZEIZA

Municipalidad de Junin

Almada Jorge

Transportes Polar
Rio de Janeiro
Refrescos Ltda.
Rio de Janeiro
Refrescos Ltda.
Rio de Janeiro
Refrescos Ltda.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.

Cash

Subsidiary

Deposit in court

Subsidiary

Deposit in court
Plant &
equipment

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Cash deposit

Subsidiary

Cash deposit

Subsidiary

Cash deposit

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Trade debtors and
other accounts
receivable
Trade debtors and
other accounts
receivable
Other non-current
financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Property, Plant &
Equipment
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other current non-
financial assets
Other current non-
financial assets
Other current non-
financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets

12-31-2019
12-31-2018
CLP (000’s) CLP (000’s)

1,140

2,805

1,216,865

4,579

2,565

6,483

4,579

2,565

6,600,863

5,336,644

12,186,432

12,597,136

13,379,610

13,209,635

250

375

268

36,313

27,598

1,116

369

553

395

21,420

40,682

1,645

172,602

254,430

2,250

3,128

3,317

4,612

15,289

46,169

422

360

3,054

3,013

1,592

4,949

Municipalidad de Picun
Leufu

Mirgoni Marano

Farias Matias Luis
Temas Industriales SA -
Embargo General de Fondos

Gomez Alejandra Raquel
Lopez Gustavo Gerardo
C/Inti Saic Y Otros
Tribunal Superior De
Justicia De La Provincia De
Córdoba
DBC SA C CERVECERIA
ARGENTINA SA
ISEMBECK

Coto Cicsa

Cencosud

Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.

Embotelladora del
Atlántico S.A.

Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.
Embotelladora del
Atlántico S.A.

Subsidiary

Deposit in court

Deposit in court Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Other current
financial assets

Deposit in court

Cash deposit

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Subsidiary

Deposit in court

Marcus A.Peña

Paraguay Refrescos

Subsidiary

Real estate

Mauricio J Cordero C

Paraguay Refrescos

Subsidiary

Real estate

José Ruoti Maltese

Paraguay Refrescos

Subsidiary

Real estate

Alejandro Galeano

Paraguay Refrescos

Subsidiary

Real estate

Ana Maria Mazó

Paraguay Refrescos

Subsidiary

Real estate

Other non-current
non-financial assets

Other non-current
non-financial assets
Other non-current
non-financial assets
Other non-current
non-financial assets
Property, Plant &
Equipment
Property, Plant &
Equipment
Property, Plant &
Equipment
Property, Plant &
Equipment
Property, Plant &
Equipment

1,401

112

309

156,759

231,077

226

290

28,129

41,465

5,001

3,125

3,955

917

738

1,275

1,213

4,164

904

758

1,251

1,191

Guarantees provided without obligation of assets included in the financial statements:

Guaranty creditor

Debtor name

Relationship

Guaranty

Type

12.31.2019
CLP (000’s)

12.31.2018
CLP (000’s)

Committed assets

Amounts involved

Employee procedures

Administrative procedures

Federal Government

State Government

Sorocaba Refrescos

Others

Aduana de EZEIZA

Rio de Janeiro
Refrescos Ltda.
Rio de Janeiro
Refrescos Ltda.
Rio de Janeiro
Refrescos Ltda.
Rio de Janeiro
Refrescos Ltda.
Rio de Janeiro
Refrescos Ltda.
Rio de Janeiro
Refrescos Ltda.
Embotelladora del
Atlántico S.A.
Andina Empaques
Argentina S.A.

Subsidiary

Guaranty receipt

Legal proceeding

106.819.809

2,601,353

Subsidiary

Guaranty receipt

Legal proceeding

10.566.188

8,233,853

Subsidiary

Guaranty receipt

Legal proceeding

31.804.574

116,192,877

Subsidiary

Guaranty receipt

Legal proceeding

59.025.436

43,015,207

Associate

Loan

Guarantor

3.715.186

3,586,095

Subsidiary

Guaranty receipt

Subsidiary

Surety insurance

Subsidiary

Surety insurance

Legal proceeding
Faithful compliance
of contract
Faithful compliance
of contract

2.232.793

3,236,092

673.854

699,502

506.623

182,459

24 – FINANCIAL RISK MANAGEMENT

The Company’s businesses are exposed to a variety of financial and market risks (including foreign exchange risk, interest rate
risk and price risk). The Company’s global risk management program focuses on the uncertainty of financial markets and seeks to
minimize potential adverse effects on the performance of the Company. The Company uses derivatives to hedge certain risks. A
description of the primary policies established by the Company to manage financial risks are provided below:

Interest Rate Risk

As of December 31, 2019, the Company maintains all its debt liabilities at a fixed rate as to avoid fluctuations in financial expenses
resulting from tax rate increases.

The Company’s greatest indebtedness corresponds to own issued Chilean local bonds at a fixed rate for UF 16,457 million
denominated in UF (“UF”), a currency indexed to inflation in Chile (Company sales are correlated with the UF variation).

There is also the Company’s indebtedness on the international market through a 144A/RegS Bond at a fixed rate for USD 365
million (original amount issued USD 575 million and partial prepayment in October 2019 for USD 210 million), denominated in
dollars, and practically 100% of which has been re-denominated to BRL through Cross Currency Swaps.

Credit risk

The credit risk to which the Company is exposed comes mainly from trade accounts receivable maintained with retailers,
wholesalers and supermarket chains in domestic markets; and the financial investments held with banks and financial institutions,
such as time deposits, mutual funds and derivative financial instruments.

a. Trade accounts receivable and other current accounts receivable

Credit risk related to trade accounts receivable is managed and monitored by the area of Finance and Administration of each
business unit. The Company has a wide base of more than 100 thousand clients implying a high level of atomization of accounts
receivable, which are subject to policies, procedures and controls established by the Company. In accordance with such policies,
credits must be based objectively, non-discretionary and uniformly granted to all clients of a same segment and channel, provided
these will allow generating economic benefits to the Company. The credit limit is checked periodically considering payment
behavior. Trade accounts receivable pending of payment are monitored on a monthly basis.

Sale Interruption:

In accordance with Corporate Credit Policy, the interruption of sale must be within the following framework: when a customer has
outstanding debts for an amount greater than USD 250,000, and over 60 days expired, sale is suspended. The General Manager in
conjunction with the Finance and Administration Manager authorize exceptions to this rule, and if the outstanding debt should
exceed USD 1,000,000, and in order to continue operating with that client, the authorization of the Chief Financial Officer is
required. Notwithstanding the foregoing, each operation can define an amount lower than USD 250,000 according to the country’s
reality.

ii.

Impairment

The impairment recognition policy establishes the following criteria for provisions: 30% is provisioned for 31 to 60 days overdue,
60% between 60 and 91 days, 90% between 91 and 120 days overdue and 100% for more than 120 days. Exemption of the
calculation of global impairment is given to credits whose delays in the payment correspond to accounts disputed with the customer
whose nature is known and where all necessary documentation for collection is available, therefore, there is no uncertainty on
recovering them. However, these accounts also have an impairment provision as follows: 40% for 91 to 120 days overdue, 80%
between 120 and 170, and 100% for more than 170 days.

iii.

Prepayment to suppliers

The Policy establishes that USD 25,000 prepayments can only be granted to suppliers if its value is properly and fully provisioned.
The Treasurer of each subsidiary must approve supplier warranties that the Company receives for prepayments before signing the
respective service contract. In the case of domestic suppliers, a warranty ballot (or the instrument existing in the country) shall be
required, in favor of Andina executable in the respective country, non-endorsable, payable on demand or upon presentation and its
validity will depend on the term of the contract. In the case of foreign suppliers, a stand-by credit letter will be required which shall
be issued by a first line bank; in the event that this document is not issued in the country where the transaction is done, a direct
bank warranty will be required. Subsidiaries can define the best way of safeguarding the Company’s assets for prepayments under
USD 25,000.

iv.

Guarantees

In the case of Chile, we have insurance with Compañía de Seguros de Crédito Continental S.A. (AA rating –according to Fitch
Chile and Humphreys rating agencies) covering the credit risk regarding trade debtors in Chile.

The rest of the operations do not have credit insurance, instead mortgage guarantees are required for volume operations of
wholesalers and distributors in the case of trade accounts receivables. In the case of other debtors, different types of guarantees are
required according to the nature of the credit granted.

Historically, uncollectible trade accounts have been lower than 0.5% of the Company’s total sales.

b. Financial investments

The Company has a Policy that is applicable to all the companies of the group in order to cover credit risks for financial
investments, restricting both the types of instruments as well as the institutions and degree of concentration. The companies of the
group can invest in:

Time deposits: only in banks or financial institutions that have a risk rating equal or higher than Level 1 (Fitch) or
equivalent for deposits of less than 1 year and rated A or higher (S&P) or equivalent for deposits of more than 1 year.

ii. Mutual funds: investments with immediate liquidity and no risk of capital (funds composed of investments at a fixed-term,
current account, fixed rate Tit BCRA, negotiable obligations, Over Night, etc.) in all those counter-parties that have a
rating greater than or equal to AA-(S&P) or equivalent, Type 1 Pacts and Mutual Funds, with a rating greater than or equal
to AA+ (S&P) or equivalent.

iii. Other investment alternatives must be evaluated and authorized by the office of the Chief Financial Officer.

Exchange Rate Risk

The company is exposed to three types of risk caused by exchange rate volatility:

a) Exposure of foreign investment

This risk originates from the translation of net investment from the functional currency of each country (Brazilian Real, Paraguayan
Guaraní, and Argentine Peso) to the Parent Company’s reporting currency (Chilean Peso). Appreciation or devaluation of the
Chilean Peso with respect to the functional currencies of each country, originates decreases and increases in equity, respectively.
The Company does not hedge this risk.

a.1 Investment in Argentina

As of December 31, 2019, the Company maintains a net investment of CLP 159,998,762 thousand. in Argentina, composed by the
recognition of assets amounting to CLP 241,470,298 thousand and liabilities amounting to CLP 81,471,536. These investments
accounted for 22.0% of the Company’s consolidated sales revenues

As of December 31, 2019, the Argentine peso devalued by 32.2% with respect to the Chilean peso.

If the exchange rate of the Argentine Peso devalued an additional 5% with respect to the Chilean Peso, the Company would have
lower income from the operation in Argentina of CLP 309,180 thousand and a decrease in equity of CLP 4,568,317 thousand,
originated by lower asset recognition of CLP 7,801,317 thousand and by lower liabilities recognition of CLP 3,233,000 thousand.

a.2 Investment in Brazil

As of December 31, 2019, the Company maintains a net investment of CLP 327,783,626 thousand in Brazil, composed by the
recognition of assets amounting to CLP 958,328,527 thousand and liabilities amounting to CLP 630,544,901thousand. These
investments accounted for 34.8% of the Company's consolidated sales revenues.

As of December 31, 2019, the Brazilian Real devalued by 3.6% with respect to the Chilean peso.

If the exchange rate of the Brazilian Real devalued an additional 5% with respect to the Chilean Peso, the Company would have
lower income from the operation in Brazil of CLP 3,959,257 thousand and a decrease in equity of CLP 13,126,491thousand,
originated by lower asset recognition of CLP 40,179,105 thousand and by lower liabilities recognition of CLP 27,052,614
thousand.

a.3 Investment in Paraguay

As of December 31, 2019, the Company maintains a net investment of CLP 247,424,752 thousand in Paraguay, composed by the
recognition of assets amounting to CLP 289,576,010 thousand and liabilities amounting to CLP 42,151,258 thousand. These
investments accounted for 8.9% of the Company's consolidated sales revenues.

As of December 31, 2019, the Paraguayan Guarani devalued by 0.5% with respect to the Chilean peso.

If the exchange rate of the Paraguayan Guaraní devalued by 5% with respect to the Chilean Peso, the Company would have lower
income from the operations in Paraguay of CLP 1,365,519 thousand and a decrease in equity of CLP 11,749,100thousand
originated by lower asset recognition of CLP 13,559,529 thousand and lower liabilities recognition of CLP 1,810,429thousand.

b) Net exposure of assets and liabilities in foreign currency

This risk stems mostly from carrying liabilities in US dollar, so the volatility of the US dollar with respect to the functional
currency of each country generates a variation in the valuation of these obligations, with consequent effect on results.

As of December 31, 2019, the Company maintains a net debt position with a net liability position in USD totaling CLP
255,482,827 thousand, basically composed of bonds payable and leasing contracts for CLP 272,216,076 thousand partially offset
by financial assets denominated in dollars for CLP 16,733,249 thousand.

All U.S. Dollar liabilities amounting to CLP 272,216,076 thousand correspond to dollar liabilities of the Chilean, Argentinean and
Brazilian operations and are, therefore, exposed to the volatility of the Chilean peso against the U.S. Dollar.

In order to protect the Company from the effects on income resulting from the volatility of the Brazilian Real and the Chilean Peso
against the U.S. dollar, the Company maintains derivative contracts (cross currency swaps) to cover almost 100% of US dollar-
denominated financial liabilities.

By designating such contracts as hedging derivatives, the effects on income for variations in the Chilean Peso and the Brazilian
Real against the US dollar, are mitigated annulling its exposure to exchange rates.

c) Exposure of assets purchased or indexed to foreign currency

This risk originates from purchases of raw materials and investments in Property, plant and equipment, whose values are expressed
in a currency other than the functional currency of the subsidiary. Changes in the value of costs or investments can be generated
through time, depending on the volatility of the exchange rate.

In order to minimize this risk, the Company maintains a currency hedging policy stipulating that it is necessary to enter into foreign
currency derivatives contracts to lessen the effect of the exchange rate over cash expenditures expressed in US dollars,
corresponding mainly to payment to suppliers of raw materials in each of the operations. This policy stipulates a 12-month forward
horizon.

Commodities risk

The Company is subject to a risk of price fluctuations in the international markets mainly for sugar, PET resin and aluminum,
which are inputs used to produce beverages and containers, which together, account for 35% to 40% of operating costs.
Procurement and anticipated purchase contracts are made frequently to minimize and/or stabilize this risk. To minimize this risk or
stabilize often supply contracts and anticipated purchases are made when market conditions warrant.

Liquidity risk

The products we sell are mainly paid for in cash and short-term credit; therefore, the Company´s main source of financing comes
from the cash flow of our operations. This cash flow has historically been sufficient to cover the investments necessary for the
normal course of our business, as well as the distribution of dividends approved by the General Shareholders’ Meeting. Should
additional funding be required for future geographic expansion or other needs, the main sources of financing to consider are:
(i) debt offerings in the Chilean and foreign capital markets (ii) borrowings from commercial banks, both internationally and in the
local markets where the Company operates; and (iii) public equity offerings

The following table presents an analysis of the Company’s committed maturities for liability payments throughout the coming
years:

Item

Bank debt
Bonds payable
Lease obligations
Contractual obligations
Total

Maturity
More than
2 years up
to 3
CLP (000’s)
786,812
41,194,718
10,933,557
5,654,968
58,570,055

More than
3 up to 4
CLP (000’s)
44,621
41,041,811
10,817,417
4,823,313
56,727,162

More than
4 years
CLP (000’s)
44,621
341,250,507
18,479,429
2,499,886
362,274,443

1 year
CLP (000’s)
724,370
44,833,400
8,663,557
19,108,905
73,330,232

More than
1 year up
to 2
CLP (000’s)
1,439,072
42,979,308
11,228,497
63,130,570
118,777,447

25 – EXPENSES BY NATURE

Other expenses by nature are:

Details

Direct production costs
Employee expenses
Transportation and distribution
Advertising
Depreciation and amortization
Repairs and maintenance
Other expenses
Total (1)

01.01.2018
01.01.2019
12.31.2019
12.31.2018
CLP (000’s) CLP (000’s)
759,229,954
266,966,841
137,428,173
17,345,951
99,594,446
28,120,098
138,860,648
1,541,243,865 1,447,546,111

877,716,948
273,123,010
138,486,337
27,113,322
111,087,284
30,528,180
83,188,784

(1) Corresponds to the addition of cost of sales, administration expenses and distribution cost.

26 – OTHER INCOME

Other income by function is detailed as follows:

Details

Gain on disposal of Property, plant and equipment
Recovery AFIP claim
Recovery PIS and COFINS credits (1)
Others
Total

(1) See Note 6 for more information regarding recovery

27 – OTHER EXPENSES BY FUNCTION

Other expenses by function are detailed as follows:

Details

Contingencies and non-operating fees
Tax on bank debits
Write-offs, disposal and loss of Property, plant and equipment
Others
Total

01.01.2018
01.01.2019
12.31.2018
12.31.2019
CLP (000’s) CLP (000’s)
1,984,547
232,617
-
392,004
2,609,168

265,514
-
40,281,550
400,094
40,947,158

01.01.2019
12.31.2019
CLP (000’s)
17,690,171
4,356,973
2,978,194
1,157,509
26,182,847

01.01.2018
12.31.2018
CLP (000’s)
10,192,495
4,653,929
262,366
948,973
16,057,763

28 – FINANCIAL INCOME AND EXPENSES

Financial income and expenses are detailed as follows:

a) Financial income

Detail

Interest income
Guaranty restatement Ipiranga acquisition
Recovery PIS and COFINS credits (1)
Other financial income

Total

(1) See Note 6 for more information regarding recovery

b) Financial costs

Details

Bond interest
Bank loan interest
Other financial costs

Total

29 – OTHER (LOSSES) GAINS

Other (losses) gains are detailed as follows:

Details

(Losses) gains on ineffective portion of hedge derivatives
Other income and expenses
Total

01.01.2019
12.31.2019
CLP (000’s)
3,249,550
27,219
39,780,620
2,098,402
45,155,791

01.01.2018
12.31.2018
CLP (000’s)
1,046,580
-
-
2,893,664
3,940,244

01.01.2019
12.31.2019
CLP (000’s)
38,153,036
1,337,670
6,718,314
46,209,020

01.01.2018
12.31.2018
CLP (000’s)
38,547,682
1,828,588
14,638,390
55,014,660

01.01.2019
12.31.2019
CLP
(000’s)

-
2,876
2,876

01.01.2018
12.31.2018
CLP
(000’s)
(2,707,802)
(57)
(2,707,859)

30. LOCAL AND FOREIGN CURRENCY

Local and foreign currency balances are the following:

CURRENT ASSETS

Cash and cash equivalent
USD
EUR
CLP
BRL
ARS
PGY

Other financial assets, current
CLP
BRL
ARS
PGY

Other non-financial assets, current
USD
EUR
UF
CLP
BRL
ARS
PGY

Trade accounts and other accounts receivable
USD
EUR
UF
CLP
BRL
ARS
PGY

Accounts receivable related entities
USD
CLP
ARS

Inventory
USD
EUR
CLP
BRL
ARS
PGY

12.31.2019
CLP
(000’S)
157,567,986
16,732,278
9,723
78,421,936
46,189,977
3,830,199
12,383,873

347,278
275,407
13,498
16,575
41,798

16,188,965
893,571
615,636
410,203
5,642,901
1,738,793
3,918,728
2,969,133

191,077,588
1,431,079
-
453,469
83,328,449
79,586,461
19,088,164
7,189,966

10,835,768
45,644
9,157,922
1,632,202

147,641,224
6,027,076
-
48,320,784
43,820,564
34,262,914
15,209,886

12.31.2018
CLP
(000’S)
137,538,613
5,917,041
51,401
86,121,695
28,040,970
6,726,906
10,680,600

683,537
355,126
14,040
300,359
14,042

5,948,923
45,053

78,623
3,589,253
1,275,073
460,125
500,796

174,113,323
863,794
52,332
1,414,800
73,028,244
66,585,089
25,000,141
7,168,923

9,450,263
26,557
6,911,814
2,511,892

151,319,709
2,197,382
12,522
50,130,341
36,797,523
46,394,230
15,787,711

Current tax assets

9,815,294

2,532,056

CLP
BRL

Total current assets
USD
EUR
UF
CLP
BRL
ARS
PGY

9,815,294
-

-
2,532,056

553,474,103
25,129,648
625,359
863,672
234,962,693
171,349,293
62,748,782
37,794,656

481,586,454
9,049,827
116,255
1,493,423
220,136,473
135,244,751
81,393,653
34,152,072

NON-CURRENT ASSETS

Other non-current financial assets
UF
BRL
ARS

Other non-current, non-financial assets
USD
UF
CLP
BRL
ARS
PGY

Accounts receivable, non-current
UF
ARS
PGY

Accounts receivable related entities, non-current
CLP

Investments accounted for using the equity method
CLP
BRL
ARS

Intangible assets other than goodwill
USD
CLP
BRL
ARS
PGY

Goodwill
CLP
BRL
ARS
PGY

Property, plant & equipment
USD
EUR
CLP
BRL
ARS
PGY

Deferred tax assets
CLP

Total non-current assets
USD

12.31.2019
CLP (000’s)
110,784,311
1,216,865
98,918,457
10,648,989

125,636,150
-
318,533
47,531
122,922,979
2,223,600
123,507

523,769
465,371
636
57,762

283,118
283,118

99,866,733
49,703,673
50,163,060

675,075,375
3,959,421
307,324,953
189,240,893
2,708,445
171,841,663

121,221,661
9,523,767
74,653,328
29,750,238
7,294,328

722,718,863
-
-
282,861,852
251,080,517
119,784,304
68,992,190

1,364,340
1,364,340

12.31.2018
CLP (000’s)
97,362,295

87,446,661
9,915,634

34,977,264
22,917
314,283
47,532
32,070,120
2,315,682
206,730

1,270,697
1,204,097
90
66,510

74,340
74,340

102,410,945
50,136,221
52,274,724
-

668,822,553
4,960,399
306,508,710
182,657,545
2,101,571
172,594,328

117,229,173
9,523,767
72,059,356
28,318,129
7,327,921

710,770,968
-
381,732
271,625,978
252,674,783
117,532,176
68,556,299

-
-

1,857,474,320
3,959,421

1,732,918,235
4,983,316

EUR
UF
CLP
BRL
ARS
PGY

-
2,000,769
651,109,234
786,979,234
165,116,212
248,309,450

381,732
1,518,380
637,916,548
679,183,189
160,183,282
248,751,788

CURRENT LIABILITIES

Other financial liabilities, current
USD
UF
CLP
BRL
ARS
PGY

Trade accounts and other accounts payable,
current
USD
EUR
UF
CLP
BRL
ARS
PGY
Other currencies

Accounts payable to related entities, current
USD
CLP
BRL
ARS
PGY

Other current provisions
CLP
PGY

Current tax liabilities
CLP
BRL
ARS
PGY

Employee benefits current provisions
CLP
BRL
ARS
PGY

Other current non-financial liabilities
CLP
ARS
PGY

Total current liabilities
USD
EUR
UF
CLP
BRL
ARS
PGY

Up to 90
days

CLP (000’S)
9,719,894
55,388
7,535,228
842,221
1,153,072
75,060
58,925

228,259,216
10,049,567
2,024,156
2,044,871
84,602,547
75,051,089
40,826,489
13,660,497
-

53,637,601
-
28,471,399
19,279,132
5,887,070

1,637,799
1,637,799
-

3,097,223
896,975
2,107,381
92,867
-

26,513,813
1,241,603
20,681,694
4,590,516
-

328,441
327,847
594
-

323,193,987
10,104,955
2,024,156
9,580,099
118,021,391
118,272,368
51,472,596
13,719,422

12.31.2019
90 days up
to1 year
CLP
(000’S)
30,873,984
3,147,441
11,836,936
11,700,946
2,119,141
704,921
1,364,599

15,441,337
-
-
-
15,441,337
-

-
-

-
-
-

431,185
427,697
3,488

3,665,044
-
-
3,446,054
218,990

11,879,041
5,509,351
-
5,260,142
1,109,548

26,173,774
26,064,658
5,286
103,830

88,464,365
3,147,441
-
11,836,936
59,143,989
2,119,141
9,416,403
2,800,455

Total

Up to 90
days

12.31.2018
90 days up
to1 year

Total

CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S)
56,114,977
3,434,840
18,368,408
10,342,404
20,674,416
14,876,804
871,811

40,593,878
3,202,829
19,372,164
12,543,167
3,272,213
779,981
1,423,524

46,737,556
3,304,011
10,536,509
9,681,676
20,833,877
1,357,285
1,024,198

9,377,421
130,829
7,831,899
-
1,413,622
1,071
-

243,700,553
10,049,567
2,024,156
2,044,871
100,043,884
75,051,089
40,826,490
13,660,497
-

53,637,601
-
28,471,399
19,279,132
5,887,070

2,068,984
2,065,496
3,488

6,762,267
896,975
2,107,381
3,538,921
218,990

38,392,854
6,750,954
20,681,694
9,850,658
1,109,548

26,502,215
26,392,505
5,880
103,830

411,658,352
13,252,396
2,024,156
21,417,035
177,164,380
120,391,509
60,888,999
16,519,877

251,551,666
11,716,262
2,202,581
2,198,131
82,576,800
74,524,169
69,859,508
8,472,550
1,665

45,687,476
-
27,729,582
12,478,179
5,479,714
-

1,789,275
1,789,275
-

4,302,370
4,302,370

-
-

10,189,264
1,177,114
-
9,012,150
-

1,346,839
869,964
476,875
-

307,408,127
14,644,911
4,311,724
8,023,954
116,967,550
82,832,774
69,816,247
10,805,605

3,394,363
-
59,951
-
3,334,412
-
-
-
-

140,383
-
140,383
-
-
-

1,696,338
1,681,178
15,160

5,036,242
1,184,842

2,980,634
870,766

23,021,715
4,854,163
17,180,455
-
987,097

32,427,375
32,276,377
-
150,998

112,453,972
3,304,011
59,951
10,536,509
53,153,031
38,014,332
4,337,919
3,048,219

238,109,846
14,514,082
4,371,675
192,055
84,433,657
68,940,973
54,846,437
10,805,605
5,362

45,827,858

27,869,965
12,478,179
5,479,714

3,485,613
3,470,453
15,160

9,338,612
5,487,212

2,980,634
870,766

33,210,979
6,031,277
17,180,455
9,012,150
987,097

33,774,214
33,146,341
476,875
150,998

419,862,099
17,948,922
4,371,675
18,560,463
170,120,581
120,847,106
74,154,166
13,853,824

Other currencies

5,362

NON-CURRENT LIABILITIES

Other financial liabilities, non-current
USD
UF
CLP
BRL
ARS
PGY

Accounts payable, non-current
USD
CLP
ARS

Accounts payable related entities
BRL

Other provisions, non-current
CLP
BRL
ARS

Deferred Tax liabilities
UF
CLP
BRL
ARS
PGY

Employee benefits non-current provisions
CLP
ARS
PGY

Total non-current liabilities
USD
UF
CLP
BRL
ARS
PGY

12.31.2019

12.31.2018

Total

509,366 271,700,335

More than
5 years

More than 3
and up to 5

More than 1
year up to 3

More than 1
year up to 3
CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s)
28,642,101 276,409,074 411,512,603 716,563,778
- 250,976,154
23,105,123 402,045,609 450,785,690
-
14,801,934
-

34,794,568 299,661,490 408,870,999
-
24,627,105 400,393,581
-
8,477,418
-
-

743,327,057
272,209,701
447,605,640
7,926,056
15,130,982
55,222
399,456

22,584,954
7,926,056
3,319,514
55,222
399,456

25,634,958
-
3,007,143
-

-
3,334,050
-
-

-
9,466,994
-

-
2,327,797
-

More than 3
and up to 5

More than
5 years

- 250,976,154

Total

619,587
-
618,509
1,078

19,777,812
19,777,812

-
-
-
-

-
-

968,404
-
-
968,404

66,070,162
-
66,070,162
-

-
-
-
-

-
-

-
-
-
-

12,834,788
-
1,449,404
-
11,385,384
-

1.114.051
461,587
88,090
564,374

49,848,536 106,766,423
1,298,050
90,271,026
-
-
15,197,347

-
181,418
49,667,118
-
-

148,954
148,954
-
-

8,910,349
8,910,349
-
-

619,587
-
618,509
1,078

19,777,812
19,777,812

67,038,566
-
66,070,162
968,404

169,449,747
1,298,050
91,901,847
49,667,118
11,385,384
15,197,347

10,173,354
9,520,890
88,090
564,374

735,665
585,289
148,680
1,696

-
-

-
-
-
-

-
-

3,448,042
2,500,000
-
948,042

55,518,871
-
55,518,871
-

-
-
-
-

-
-

735,665
585,289
148,680
1,696

-
-

58,966,913
2,500,000
55,518,871
948,042

16,607,605 101,512,040
-
81,630,530
19,881,510
-
-

-
497,175
-
16,110,430
-

27,126,303 145,245,948
-
94,027,680
19,881,510
16,110,430
15,226,328

-
11,899,975
-
-
15,226,328

742,297
230,528

511,769

240,148
240,148

8,433,096
8,433,096

9,415,541
8,903,772

511,769

509,366 271,700,335

70,109,209 415,729,142 524,547,771 1,010,386,123
272,209,701
448,903,690
109,967,302
150,646,074
12,498,178
16,161,177

-
24,627,105 401,691,631
99,181,375
8,477,418
-
15,197,347

22,584,954
10,455,555
330,372
23,097,326 119,071,330
-
12,498,178
-
963,830

585,289 250,976,154

50,175,710 433,680,133 447,072,002 930,927,845
- 251,561,443
23,105,123 402,045,609 450,785,690
20,333,071 105,580,132
81,870,678
90,202,315
77,728,178
17,060,169
-
15,738,097
-

25,634,958
3,376,383
3,007,143
17,060,168
511,769

9,466,994
-
15,226,328

31 – THE ENVIRONMENT

The Company has made disbursements totaling CLP 2,693 million for improvements in industrial processes, equipment to measure
industrial waste flows, laboratory analysis, consulting on environmental impacts and others.

These disbursements by country are detailed as follows:

2019 period

Capitalized
to
Property,
plant
and
equipment
CLP (000’s)
-
-
-
687,486
687,486

Recorded as
expenses
CLP (000’s)
1,446,232
205,165
920,255
121,554
2,693,206

Future commitments
To be
capitalized to
Property,
plant
and
equipment
CLP (000’s)

To be
recorded
as
expenses
CLP (000’s)

-
15,155
192,320
0
207,475

-
-
61,773
0
61,773

Country

Chile
Argentina
Brazil
Paraguay
Total

32 – SUBSEQUENT EVENTS

On January 21, 2020, the Company issued corporate bonds on the international market for USD 300 million. The use of proceeds
from this operation will be for general corporate purposes which could include the eventual payment of existing liabilities,
financing of potential acquisitions and improving the liquidity of the Company. The transaction consisted of issuing a 30-year bond
totaling USD 300 million with a bullet structure and an annual coupon rate of 3.950%.

At the same time, derivatives (Cross Currency Swaps) have been contracted hedging 100% of the bond's financial liabilities that are
denominated in U.S. dollars by redenominating that liability to UF.

On February 24, 2020, the tax reform was approved in Chile, which becomes effective immediately, however, most of the effects
will begin to materialize in the 2021 Income Tax Statement, the Company will assess the possible impacts in the relevant period.

No other events have occurred after December 31, 2019 that may significantly affect the Company's consolidated financial
situation.

SIGNATURES

Santiago, March 13, 2020

EMBOTELLADORA ANDINA S.A.

/s/ Andrés Wainer

By:
Name:Andrés Wainer
Title: Chief Financial Officer

GRI CONTENT INDEX

Indicators that relate to the principles of the United Nations
Global Compact are identified in light blue.

GRI 102: General Contents

GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

Perfil Organizacional

GRI 102-1

Organization name

Chapter 7: Exhibits; Identification of the Company,
p. 94

Corporate Name: Embotelladora Andina S.A.
Type of Company: Open Stock Corporation
Legal Address: Miraflores 9153, comuna de Renca, Santiago
Chilean Tax ID No.: 91.144.000-8

GRI 102-2

a. Description of the activities of the organization
b. Major brands, products and services

Chapter 1: Andina at a Glance, p. 3,4,5,6,7. Chapter
5: We Operate with Integrity, p. 44: Our Portfolio.

GRI 102-3

Location of headquarters

Chapter 1: Andina at a Glance, p. 8.

GRI 102-4

Location of operations. Location of operations:
Indicate in how many countries the organization
operates and name those countries where the
organization conducts meaningful operations or
that have specific relevance to the sustainability
issues that are the subject of the report

Chapter 7: Exhibits; Company Identification, p.94,
95, 96, 97, 98, 99.

Corporate office
Av. Miraflores 9153, Piso 7, Renca, Santiago de Chile
Tel. (56 2)2338 0520 - www.koandina.com

GRI 102-5

Ownership and legal form

Chapter 7: Exhibits; Company Identification, p.94.

Type of Company: Open Stock Corporation. In addition, the Company's
shares are traded on the Santiago Stock Exchange. In addition, the
Company's shares are traded on the Santiago Electronic Exchange.
The registration number in the CMF Securities Register is 00124. The
mnemonics code, both for the Santiago Stock Exchange and for the
Electronic Exchange, are Andina-A and Andina-B, each corresponding to
the respective series of shares. The Company's ADRs have been traded
on the New York Stock Exchange since 1994. An ADR is equivalent to six
shares of common stock. The mnemonics codes for the NYSE are AKO/A
and AKO/B. The depositary bank for ADRs is The Bank of New York
Mellon (www.bnymellon.com).

Chapter / Page

Response

ISO 2600, Linked Clauses

Organizational Profile

GRI 102-6

Markets served. Markets served, and include:
i. the geographic locations where the products
and services are offered;
ii. the sectors served;
iii. the types of customers and beneficiaries.

Chapter 7: Exhibits; Identification of the Company,
p. 94, 95, 96, 97, 98, 99. In addition, in chapter 1.
Andina at a Glance, p. 7, 9, 10, 11, 43, 44, 45.

GRI 102-7

Organization size

Chapter 1: Andina at a Glance, p. 3, 5, 9, 10, 11.
Exhibits: Financial Statements.

On the website of www.koandina.com: http://www.koandina.com/
pagina.php?p=inversionistas

GRI 102-8

Information about employees and other workers

Chapter 5: We operate with integrity, from p. 60 to
66. Chapter 6: Our Metrics.

GRI 102-9

Supply chain

Chapter 1: Andina at a Glance, p. 4.

GRI 102-10

Significant changes in the organization and its
supply chain

No record has been made

GRI 102-11

Precautionary principle or approach

Chapter 3: Sustainable Value Strategy, p. 20,21,22.

GRI 102-12

External initiatives

Chapter 1: Andina at a Glance, P. 8, 68, 69.

GRI 102-13

Association membership

Chapter 5: We operate with Integrity, Entities We
Support, p.4, p.68 and p.69.

Strategy

We have certifications, those detailed in p. 43: Quality ISO 9001 /
Environment ISO 14001 / Health and Safety OHSAS 18001/ Food Safety
FSSC 22.000/ GAO, Corporate Requirements The Coca-Cola Company
Supplier Guiding Principles. See also: Corporate Sustainability Policy.
Corporate Policy http://www.koandina.com/ Risk Management. Also,
check 20 F at: http://www.koandina.com/pagina.php?p=inversionistas.

We participate in various external initiatives of an economic, social
and environmental nature, all volunteers and in order to improve our
processes and share our experiences. Coca-Cola Andina adheres to
the principles and initiatives of which The Coca-Cola Company and
the Coca-Cola System participate. These include the principles of the
Global Compact and the United Nations Human Rights Declaration.
Embotelladora Andina S.A. signed its accession to the United Nations
Global Compact in Chile in 2015, which it maintained during 2019.

GRI 102-14

Statement by senior executives responsible for
decision-making

Chapter 1: Andina at a Glance, p. 5, 9, 10, 11.

Message from the Chairman of the Board on the web: http://www.
koandina.com/pagina.php?p=mensaje-presidente.

6.2

Chapter / Page

Response

ISO 2600, Linked Clauses

Organizational Profile

GRI 102-15 Main impacts, risks and opportunities

Chapter: 3 Sustainable Value Creation strategy,
p. 37, 38, 39, 40.

Ethics and integrity

GRI 102-16

Values, principles, standards and standards of
conduct

Chapter: 3 Sustainable Value Creation Strategy,
p.16 and 17.

GRI 102-17

Advisory mechanisms and ethical concerns

Chapter: 2 Creation of Sustainable Value, p. 26
and 27.

Review 20 F at the following link; http://www.koandina.com/pagina.
php?p=inversionistas.
Corporate Governance Practices and Policies: http://www.koandina.
com/pagina.php?p=gobierno-politicas.
Sustainability Policy : http://www.koandina.com/pagina.
php?p=sustentabilidad.

7.4.2

Our values are: integrity, teamwork, attitude, austerity, results orientation,
customer focus. To review our Code of Ethics and Supplier Code of
Ethics: http://www.koandina.com/pagina.php?p=gobierno-politicas.

The commitment to sustainable value creation in a framework
of transparency, ethics and corporate responsibility is a strategic
objective of our Corporate Governance Review the Corporate Crime
Prevention Policy: http://www.koandina.com/uploads/Polit.%20
Corp.Prevencion%20de%20delitos%20ley%2020.393.pdf Anonymous
Complaints Procedure: http://www.koandina.com/uploads/Proc_Den_
Anoni.pdf.

Governance

GRI 102-18

Governance structure

Chapter 3: Value Creation, Corporate Governance,
p. 26-34.

In the following link you can review the corporate governance structure
http://www.koandina.com/pagina.php?p=gobierno-estructura.
In the following link, the Corporate Governance Policies and Procedures
http://www.koandina.com/pagina.php?p=gobierno-politicas.

GRI 102-19

Delegation of authority

Chapter 3: Value Creation, Corporate Governance,
p. 26-34.

Corporate Bylaws: http://www.koandina.com/uploads/Adjuntos/
Estatutos%20Societarios%20Reforma%2025-06-12.pdf

GRI 102-20

Executive-level responsibility for economic,
environmental and social issues

Chapter 3: Value Creation, Corporate Governance,
p. 26-34.

Corporate Sustainability Policy:http://www.koandina.com/uploads/
paginas/P.%20Corp.%20Sustent.pdf.

GRI 102-21

Consultation of stakeholders on economic,
environmental and social issues

Chapter 3: Creation of Sustainable Value,
Materiality, p. 20.

GRI 102-22

Composition of the highest governing body and
its committees

Chapter 3: Value Creation, Corporate Governance,
p. 19-22.

An update of the materiality study is carried out every two years at
Coca-Cola Andina. The last was performed in 2018 and each result is
submitted to the Ethics and Sustainability Committee for validation.

GRI 102-23

President of the highest governing body

Chapter 3: Value Creation, Corporate Governance,
p. 28.

Juan Claro (Chairman), Board Member since April 2004.

Chapter / Page

Response

ISO 2600, Linked Clauses

Organizational Profile

GRI 102-24

Nomination and selection of the highest
governing body

Chapter 3: Value Creation, Corporate Governance,
p. 28.

GRI 102-25

Conflicts of interest

Chapter 3: Value Creation, Corporate Governance,
p. 26-34.

GRI 102-26

Role of the highest governing body in the
selection of objectives, values and strategy

Chapter 3: Value Creation, Corporate Governance,
p. 26-34.

Corporate Bylaws: http://www.koandina.com/uploads/Adjuntos/
Estatutos%20Societarios%20Reforma%2025-06-12.pdf. http://www.
koandina.com/uploads/paginas/ComparacionNYSE.pdf.

There is a policy that points out how to manage conflicts between the
interests of individuals and/or third parties involved in decision-making,
with the interests of the Company. http://www.koandina.com/pagina.
php?p=gobierno-politicas.

Code of Ethics: Provides a guide to minimum principles of conduct for
all employees, contractors, consultants and Board members; it is the
responsibility of all persons to comply with the provisions of this Code,
whatever their contractual condition and position within the group,
as well as all those who provide services in the Company. There is a
Committee of Ethics of Embotelladora Andina S.A., and that will have
at least three members, who will be appointed by the Company's
Board of Directors from among its members. The Ethics Committee
of Embotelladora Andina S.A. has among its functions: a. Analyze the
complaints received through the channels arranged by the Company.
b. Receive, know and investigate reports of irregularities and recommend
actions to follow in each of the cases.
c. Establish and develop procedures to encourage the ethical conduct
of people.
d. Monitor compliance with the provisions of the Code of Ethics and
resolve the queries and conflicts that its application may generate.
e. Establish mechanisms for the dissemination of the Code of Ethics, and
of general matters of an ethical nature.
The Ethics Committee of Embotelladora Andina S.A. will meet at least on
a bi-annual basis, upon summons by its president.

GRI 102-27

Collective knowledge of the highest governing
body

Chapter 3: Value Creation, Corporate Governance,
p. 27-34. The Exhibit details the Directors' CV p.138

GRI 102-28

Evaluation of the performance of the highest
governing body

Chapter 3: Value Creation, Corporate Governance,
p. 27 to p.34.

General Standard No. 385: http://www.koandina.com/uploads/Inf.%20
NCG%20N385%20Marzo-2018.pdf.

GRI 102-29

Identification and management of economic,
environmental and social impacts

Chapter 3: Value Creation, Corporate Governance,
p. 21 to 23 and 37 to 40.

General Standard No. 385: http://www.koandina.com/uploads/Inf.%20
NCG%20N385%20Marzo-2018.pdf.

GRI 102-30

Effectiveness of risk management processes

Chapter 3: Value Creation, Corporate Governance,
Risk Management p. 37 to 40.

The Company has an Executive Committee, within whose responsibilities
is to oversee the general progress of social business and the control of
operations, thus guaranteeing the operational continuity of the Company
in case of contingency or crisis. Response from General Standard No.
385: http://www.koandina.com/uploads/Inf.%20NCG%20N385%20
Marzo-2018.pdf

Chapter / Page

Response

ISO 2600, Linked Clauses

Organizational Profile

GRI 102-31

Assessment of economic, environmental and
social issues

Chapter 3: Value Creation, Corporate Governance,
p.26 to 34.

GRI 102-32

Role of the highest governing body in
sustainability reporting

Chapter 3: Value Creation, Corporate Governance,
p. 26-34.

GRI 102-33

Communication of critical concerns

GRI 102-34 Nature and total number of critical concerns

Chapter 3: Value Creation, Corporate Governance,
p.29 and p.30

Although Andina publishes its Sustainability Report on annual basis,
which is also disclosed through its website (www.koandina.com), the
Company has formally approved its Corporate Sustainability Policy,
which among others, will allow to provide annual public information
regarding policies adopted by the Company; Stakeholders identified
by the Company as relevant; relevant risks, including sustainability;
and indicators measured by the Company on social responsibility
and sustainable development. Similarly, it has also been agreed to
incorporate these subjects into the information presented annually in
the Annual Report of the Company. Response of General Standard No.
385: http://www.koandina.com/uploads/Inf.%20NCG%20N385%20
Marzo-2018.pdf.

The Integrated Annual Report must be approved by the Board; it is
reviewed and approved in the session prior to the Annual General
Shareholders' Meeting, which also makes comments on and approves
the Integrated Annual Report each year.

Andina has a unit dedicated to clarifying doubts that shareholders
and investors, national or foreign, may have regarding the Company,
its business, main risks, financial, economic or legal situation and
publicly known businesses, all in accordance with the applicable
legal regulations. This unit is highly qualified to fulfill this work, its
members dominate the English language and, in conjunction with the
Chief Executive Officer of the Company and its Chief Financial Officer,
is the only unit authorized by the Board to respond to inquiries from
shareholders, investors and the media.
Response from General Standard No. 385: http://www.koandina.com/
uploads/Inf.%20NCG%20N385%20Marzo-2018.pdf.

The main issues and concerns conveyed to the senior governing body
included reviewing anonymous complaints, analyzing internal audit
reports, reviewing and approving corporate policies, such as corporate
sustainability and risk management or other standards that apply
to corporate governance or the company, internal control systems,
review and approval of new businesses , review and approval of results,
consolidated and by operation. Some of these subjects were reviewed in
the Executive Committee and then discussed by the Board, others were
dealt with directly in the Board. Depending on their nature, if they come
from a specific operation, from the administration or the Anonymous
Complaints Channel, the resolution mechanism is determined. The
Board meets once a month to find out the company's results and all the
matters that are of its competence

Chapter / Page

Response

ISO 2600, Linked Clauses

Organizational Profile

GRI 102-35

Remuneration policies

Chapter 3: Value Creation, Corporate Governance,
p.35.

GRI 102-36

Process for determining remuneration

In the case of key executives, remuneration plans consist of a fixed
remuneration and a performance bonus, which try to adapt to the risk
and competitive conditions of each market, and the amounts of which
vary according to the position and/or responsibility exercised. Review
Minutes of the Annual General Shareholders' Meeting: http://www.
koandina.com/pagina.php?p=inversionistas-info#joa

Review 20 F on the following link; http://www.koandina.com/pagina.
php?p=inversionistas.
Corporate Governance Practices and Policies: http://www.koandina.
com/pagina.php?p=gobierno-politicas.
Sustainability Policy: http://www.koandina.com/pagina.php. Point B
Remuneration.

GRI 102-37

Involvement of Stakeholders in remuneration

Chapter 3: Value Creation, Corporate Governance,
p.20, 21, 22.

GRI 102-38

Annual total compensation ratio

Confidential Information for the Company.

GRI 102-39

Ratio of percentage increase in total annual
compensation

This information is confidential to safeguard the personal safety of
employees and the senior managers of our Organization.

Participation of stakeholders

GRI 102-40

List of stakeholders

Chapter 3: Creation of Sustainable Value:
Stakeholders, p.74.

GRI 102-41

Collective bargaining agreements

Chapter 5. We Operate with Integrity, Working
Environment, p. 67. Chapter 6: Our Metrics: 89

At Coca-Cola Andina we respect and support the right to freedom of
association in all countries where we operate.

GRI 102-42

Identification and selection of stakeholders

GRI 102-43

Approach to stakeholder participation

Chapter 3: Creation of Sustainable Value:
Stakeholders, p.74.

GRI 102-44

Issues and concerns that have been identified
through the participation of stakeholders

Chapter 3: Creation of Sustainable Value:
Stakeholders, p.19,20, 21, 22, 23, 24.

Reporting practices

GRI 102-45

Entities included in the consolidated financial
statements

This annual report consolidates the information
of the transactions of the following countries:
Argentina, Brazil, Chile and Paraguay.

4.5; 4.3

4.5; 4.4

4.5; 4.5

4.5; 4.6

4.5; 4.7

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

Organizational Profile

GRI 102-46

Definition of the contents of the reports and
coverages of the topic

GRI 102-47

List of material topics

Chapter 3: Creation of Sustainable Value:
Stakeholders, p.19, 20, 21, 22, 23, 24.

GRI 102-48

Re-expression of information

Not performed this year.

It comprises the reporting period between January 1, 2019 and
December 31, 2019. It contemplates Coca-Cola Andina's operations in
Argentina, Brazil, Chile and Parguay: Andina Chile, Andina Argentina;
Andina Brazil; Andina Paraguay and Vital S.A. The currency used, unless
otherwise specified, when referring to "US$" indicates United States
dollars; when Chilean pesos are indicated "Ch$", when real is indicated
"R$" is used.

GRI 102-49

Changes in reporting

Not performed this year.

4.5 ; 5.3

GRI 102-50

Reporting period

Between January 1, 2019 and December 31, 2019.

GRI 102-51

Date of last report

March 1, 2019

GRI 102-52

Reporting cycle

Annually

GRI 102-53

Contact point for report questions

Chapter 1: Andina at a Glance, p. 8.

Sustainability Contact
Consuelo Barrera | informesanuales@koandina.com
Ruta Nacional 19, Km. 3,7, Córdoba, Argentina
Telephone No.: (54) 351 496 8304

GRI 102-54

Statement of preparation of the report in
accordance with the GRI Standards

GRI Standards, Comprehensive option.

GRI 102-55

GRI Content Index

Page 170

GRI 102-56

External verification

Review Limited and Independent Verification 2019
Integrated Annual Report of Coca-Cola Andina
S.A.

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GRI 200: Economic Standards

GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

Economic performance

GRI 201-1 Direct economic value generated and distributed Chapter 1, p.5

6.8.1; 6.8.2; 6.8.3; 6.8.9

GRI 201-2

Financial implications and other risks and
opportunities arising from climate change

GRI 201-3

Defined benefit plan obligations and other
retirement plans

Chapter 5, p. 65

GRI 201-4

Financial assistance received from the
government

Indirect economic impacts

GRI 203-1

Investments in infrastructure and services
supported

Exhibit: Page 116

GRI 203-2 Significant indirect economic impacts

Chapter 1, p.5

Risks/opportunities are detected and addressed through the Risk
Management process. Reviewed annually and audited to ensure proper
mitigation. Some identified during the period can be found on p.39

The Company complies with the system of planned obligations in force
in all countries where it has operations.

6.5.5

6.8.7

No financial assistance during the period

6.3.9, 6.8.1; 6.8.2; 6.8.7; 6.8.9

Coca-Cola Andina as part of the Coca-Cola System generates added
value in countries where it operates equivalent to approximately 0.3%
of the country's GDP. Contributions to tax, salaries to direct employees
and investments can also be seen in the distributed economic value
table. When we include the indirect impact generated by the Coca-
Cola System in each region where it operates, this GDP equivalent
amounts to 1%.

Supplier development

GRI 103-1 Explanation of the material topic and its coverage Chapter 1, p. 19, 20, 21,22, and 23. Chapter 5, p.72

GRI 103-2 Management approach and its components

Chapter 1, p. 19, 20, 21,22, and 23. Chapter 5, p.72

GRI 103-3 Assessment of management approach

Chapter 1, p. 19, 20, 21,22, and 23. Chapter 5, p.72

GRI 204-1 Proportion of spending on local suppliers

Chapter 5. p. 74 and Chapter 6, p.91

Note: we talk about "nationals" as synonymous with "locals".

6.4.3; 6.6.6, 6.8.1,6.8.2,6.8.7

Corporate Governance :Transparency in Corporate Management

GRI 103-1 Explanation of the material issue and its coverage Chapter 1, page 37

The Company has a solid Corporate Governance and in addition one of
its Committees is the Committee of Directors that ensures transparency
in business management the detail is at the following link:http://www.
koandina.com/uploads/Adjuntos/ReglatrateDirectoresAuditoria.pdf

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

GRI 103-2 Management approach and its components

Chapter 1, p. 19, 20,21,22, and 23. Chapter 1, p.
29,30,31,32

The Company has a Committee on Culture, Ethics and Sustainability,
which was constituted by the Board in its session held January 28,
2014. Within its duties and responsibilities are: to receive, know and
investigate the reports of irregularities referred to in Law No. 20.393 on
the basis of crimes and to recommend actions to be taken in each case;
establish and develop procedures to promote the ethical conduct of
the Company's employees; to monitor compliance with the provisions
of the Code of Ethics and to resolve the consultations and conflicts that
their implementation may generate; and establish mechanisms for the
dissemination of the Code of Ethics and of general ethical matters.

GRI 103-3 Assessment of management approach

Chapter 1, p. 19, 20,21,22, and 23. Chapter 1, p.
29,30,31,32

GRI 205-2

Communication and training on anti-corruption
policies and procedures

Chapter 1, p. 21,22, and 23. Chapter 1, p. 26

Thus, in Coca-Cola Andina we have a Model of Crime Prevention
according to the provisions of Law No. 20.393, that was certified by the
company MC Compliance S.A. http://www.koandina.com/uploads/
Polit.%20Corp.Prevencion%20de%20delitos%20ley%2020.393.pdf

6.6.1; 6.6.2; 6.6.3;6.6.6

GRI 206-1

Legal actions for anti-competitive behavior, anti-
trust, and monopoly practices

Chapter 1, p. 21,22, and 23. Chapter 1, p. 29,30,31,32

An integral part of the Corporate Governance model is our corporate
guidelines, called Corporate Policies, which are mandatory for all
Operations and companies in the group. The policies contain precise
guidance on substantive matters related to governance, such as
delegation of authority, conflicts of interest, powers of attorney,
investments in financial instruments, purchases and investments,
accounting criteria, use of insider information, performance
management, compensation, administration of complaints, crime
prevention Law 20.393, code of ethics, regulation of the Audit
Committee, among others.

GRI 205-3 Confirmed corruption cases and action taken

Complaints received through the Ethics Point channel: 71, of which 56
were reviewed, addressed and closed. And 15 are under review. Of the
total, 10 complaints were related to Corruption issues.

6.6.1; 6.6.2; 6.6.3; 6.6.6

Chapter / Page

Response

ISO 2600, Linked Clauses

Corporate Governance: Risk Management

The main purpose is the mitigation of high-impact risks and for this
purpose establishes a Risk Committee with its objectives and bylaws
and, additionally, a standard methodology for managing such risks. The
company has a risk management process, with guidelines that have
been approved by the Board and whose management is supervised
by the Directors Committee in conjunction with the area of Corporate
Internal Audit Management. Notwithstanding the foregoing, the Board
has agreed to meet once a year with the Company's Risk Management
unit in order to analyze the proper functioning of the risk management
process, the risk matrix used by that unit (as well as the main sources of
risks and methodologies for the detection of new risks and probability
and impact of occurrence of those that are most relevant) and the
recommendations and improvements that would be relevant to make
in order to better manage the risks of the entity. For more details review
responses of General Standard No. 385 at the following link: http://
www.koandina.com/uploads/Inf.%20NCG%20N385%20Marzo-2018.pdf

For more detail review 20F, Chapter X and page x on the web. Www.
koandina.cl / Investors.

For more detail review 20F, Chapter X and page x on the web. www.
koandina.cl / Investors.

Base salary ratio / legal minimum wage. Chapter 6 p.89. There is no
difference in the initial pay among genders. There is no difference in the
initial pay among genders.

GRI 103-1 Explanation of the material topic and its boundary Chapter 1, p. 21, 22 and 23. Chapter 1, p. 37,38, 39.

GRI 103-2 Management approach and its components

Chapter 1, p. 21, 22 and 23. Chapter 1, p. 37,38, 39.

GRI 103-3 Assessment of management approach

Chapter 1, p. 21, 22 and 23. Chapter 1, p. 37,38, 39.

GRI 202-1

Ratio of the standard starting salary by sex versus
the local minimum wage

GRI 202-2

Proportion of senior executives hired from the
local community

Chapter 4 p.33 and 34.

GRI 203-1

Investments in infrastructure and services
supported

Chapter 7 p.116.

GRI 205-1 Operations assessed for anti-corruption risks

Chapter 4 p. 25

6.3.9; 6.6.6; 6.6.7;
6.7.8;6.8.1;6.8.2;6.8.5;6.8.7, 6.8.9

6.6.1, 6.6.2,6.6.3

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GRI 300: Environmental Standards

GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

Sustainable Packaging: Waste Management

GRI 103-1

Explanation of the material issue and its boundary

Chapter 1, p. 21, 22 and 23. Chapter 5, p.49, 50, 51,
52. Chapter 6, p. 80 and p.81

GRI 103-2

Management approach and its components

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 49, 50, 51,
52. Chapter 6, p. 80 and p.81

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 49, 50.5 1,
52. Chapter 6, p. 80 and p.81

GRI 301-1

Materials used by weight or volume

Chapter 5, p. 49, 50, 51, 52. Chapter 6, p. 80 and
p.81

This document publishes the raw materials used and which are of
recycled origin in Chapter 5 p. 50

GRI 301-2

Recycled input materials used

Chapter 5, p. 49, 50, 51, 52. Chapter 6, p. 80 and 81

This document publishes the raw materials used and which are of
recycled origin in Chapter 5 p. 50

6.5.4

GRI 301-3

Percentage of reclaimed products and their
packaging materials for each product category.

Chapter 5, p. 48,49,50,51

100% of the secondary packaging cases are regenerated at the end of
the life by the Company.

6.5.3, 6.5.4,6.7.5

Energy management and environmental protection

GRI 103-1

Explanation of the material issue and its boundary

GRI 103-2

Management approach and its components

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 59
Chapter 6, p.84 and p.85

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 59
Chapter 6, p. 84 and p.85

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 59
Chapter 6, p.84 and p.85

GRI 307-1

Non-compliance with environmental legislation
and regulations

The organization has not identified any violations
of environmental laws or regulations

GRI 302-1

Energy consumption within the organization

Chapter 6, p. 84 and p.85

Note: Heating and cooling are included in the value of electricity
consumption

GRI 302-2

Energy consumption outside the organization

Chapter 6, p. 84 and p.85

GRI 302-3

Energy intensity

Chapter 6, p. 84 and p.85

GRI 302-4

Reducing energy consumption

Chapter 6, p. 84 and p.85

4.6

6.5.4

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

GRI 302-5

Reducing energy requirements for
products and services

Chapter 6, Table "Energy Consumption (MJ)"
p.84 and p.85

6.5.4, 6.5.5

Water management

GRI 103-1

Explanation of the material issue and its boundary

Capítulo 1, p. 21, 22 y 23. Capítulo 5, p. 55, 56, 57 y
Capítulo 6, p. 82 y 83.

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 55, 56, 57 and Chapter 6, p.82
and p.83

GRI 103-2

Management approach and its components

Capítulo 1, p. 21, 22 y 23. Capítulo 5, p. 55, 56, 57 y
Capítulo 6, p. 82 y 83.

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 55, 56, 57 and Chapter 6, p.82
and p.83

GRI 103-3

Assessment of management approach

Capítulo 1, p. 21, 22, y 23. Capítulo 5, p.55,56,57 y
Capítulo 6 p. 82 y 83.

Chapter 1, p. 21, 22, and 23. Chapter 5, p.55,56,57 and Chapter 6 p. 82
and p.83

GRI 303-1 Water withdrawal by source.

Desde la p.53 a la p.56 .

GRI 303-2

Managing impacts related to water discharge

Páginas. 55, 56.

From p.53 to p.56 . Calculation and registration methods are standards
of The Coca-Cola Company for all bottlers (EOSH, Performance
Measurements and Water Resource Sustainability)

Following the policy of The Coca-Cola Company, actions are carried out
to replenish nature the water used (replenish). p. 55 - 56 Pursuing the
policy of The Coca-Cola Company, studies of water source vulnerability
are carried out in bottling operations every 5 years.

GRI 303-3

Percentage and volume of total water recycled
and reused

Capítulo 1, p. 21, 22 y 23. Capítulo 5, p. 55, 56, 57 y
Capítulo 6, p. 82 y 83.

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 55, 56, 57 and Chapter 6, p.82
and 83

GRI 303-4 Water discharge

GRI 303-5 Water consumption

Capítulo 1, p. 21, 22 y 23. Capítulo 5, p. 55, 56, 57 y
Capítulo 6, p. 82 y 83.

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 55, 56, 57 and Chapter 6, p.82
and 83

Capítulo 1, p. 21, 22 y 23. Capítulo 5, p. 55, 56, 57 y
Capítulo 6, p. 82 y 83.

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 55, 56, 57 and Chapter 6, p.82
and p.83

GRI 306-2 Waste by type and method of disposal

Capítulo 1, p. 21, 22 y 23. Capítulo 5, p. 55, 56, 57 y
Capítulo 6, p. 82 y 83.

Chapter 1, p. 21, 22 and 23. Chapter 5, p. 55, 56, 57 and Chapter 6, p.82
and p.83

6.5.4

GRI 306-3

Significant spills

GRI 306-4

Transporting hazardous waste

No se hubo derrames signaificativos en el
período.

El 100% de los residuos peligrosos son tratados
por terceros dentro de los países donde se
originan. Capitulo 6 p. 82 y 83.

There were no significant spills in the period.

6.5.3

100% of hazardous waste is treated by third parties within the
countries where it originates. Chapter 6 p. xxx

GRI 306-5

Bodies of water affected by water discharges
and/or runoff

El 100% de los efluentes de la Compañía son
tratados, por lo que no hay impactos significativos
sobre los recursos hídricos.

100% of the Company's effluents are treated, so there are no
significant impacts on water resources.

6.5.3, 6.5.4, 6.5.6

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

Efficient distribution

GRI 103-1

Explanation of the material issue and its boundary

Chapter 1, p. 21,22 and 23. Chapter 5, p. 58, 59, 60
and Chapter 6, p.85

GRI 103-2

Management approach and its components

Chapter 1, p. 21, 22 and 23. Chapter 5, p.58, 59, 60
and Chapter 6, p.85

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23. Chapter 5, p.58, 59, 60
and Chapter 6, p85

GRI 305-1

Direct GHG emissions (scope 1)

Chapter 1, p. 21,22, and 23 and Chapter 6 p.85

GRI 305-2

Indirect GHG emissions when generating energy
(scope 2)

Chapter 1, p. 21,22, and 23 and Chapter 6 p.85

GRI 305-3

Other indirect GHG emissions (scope 3)

Chapter 1, p. 21, 22 and 23 and Chapter 6, p.85

GRI 305-4

Intensity of GHG emissions

Chapter 1, p. 21, 22 and 23 and Chapter 6, p.85

GRI 305-5

Reducing GHG emissions

Chapter 1, p. 21, 22 and 23 and Chapter 6, p.85

GRI 305-6

Emissions of ozone-depleting substances (ODS) Chapter 1, p. 21 - 23; 59 and Chapter 6, p.85

Cooling gas cold equipment is used, mainly CO2 and HCFC -22.

GRI 305-7

Nitrogen oxides (NOX), sulfur oxides (SOX) and
other significant air emissions

NOx 2436 kg (Chile operation)

The gases reported below are used by cold equipment. Which are
exchanged as needed and arranged according to current country
legislation. Refrigerant gases (R134, R513 and others ).

Commitment to the environment

GRI 103-1

Explanation of the material issue and its boundary Chapter 1, p. 21, 22 and 23 and Chapter 5 p. 58

GRI 103-2

Management approach and its components

Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 58

GRI 103-3

Assessment of management approach

Chapter 1, p. 21 22 and 23 and Chapter 5, p. 58

GRI 304-1

Operational sites owned, leased, managed in, or
adjacent to, protected areas and areas of high
biodiversity value outside protected areas

At the close of the report, no operations are in
protected areas

GRI 304-2

Significant impacts of activities, products and
services on biodiversity

At the close of the report, no operations are in
protected areas

6.5.5

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

GRI 304-3

Protected or restored habitats

At the close of the report, no operations are in
protected areas

GRI 304-4

IUCN Red List species and national conservation
list species with habitats in areas affected by
operations

At the close of the report, no operations are in
protected areas

GRI 306-1

Water discharge according to quality and
destination

Chapter 6 p.82 and p.83

The output parameters meet the requirements of Coca-Cola Company
in its Wastewater Quality document. Delivery is quality suitable for
animal life with fish habitat at the end of the process.

GRI 306-2 Waste by type and method of disposal

P.52

Supplier management

GRI 103-1

Explanation of the material issue and its boundary

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.71.72
and 73 and p.90 and 91

GRI 103-2

Management approach and its components

Chapter 1, p. 21, 22 and 23 and Chapter 5,
p.71,72,73 and p.90 and 91

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 71, 72,
73 and p.90 and 91

GRI 308-1

New suppliers who have passed evaluation
and selection filters according to environmental
criteria

p. 71, 72, 73, 74, 75 and p.90 and 91.

GRI 414-1

New suppliers who have passed evaluation and
selection filters according to social criteria

p. 71, 72, 73, 74, 75 and p.90 and 91.

6.5.5

6.5.3, 6.5.4

6.5.3

6.3.5, 6.6.6, 7.3.1

6.3.3; 6.3.4; 6.6.6; 7.3.1

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

GRI 308-2

Negative environmental impacts on the supply
chain and actions taken

p. 71, 72, 73, 74, 75 and p.90 and 91.

Work with critical suppliers and significant impacts on the
chain:Upstream: initiatives are undertaken with primary and secondary
packaging suppliers to reduce their weight. Also to reuse the industrial
scrap of the plants to produce new packaging, guaranteeing the quality
of waste and managing with partners the transformation of them. In
order to reduce the impact of waste generation. Downstream: Initiatives
are undertaken with cold equipment suppliers to place more efficient
equipment and distribution providers in customers to make delivery
routes more efficient, seeking to reduce fuel consumption and carbon
footprint. Commercial initiatives are being promoted aimed at higher
percentage of sales in returnable bottles, to reduce the use of inputs."

GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

Contributors: Employment

GRI 103-1

Explanation of the material issue and its boundary Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 61-65.

GRI 103-2

Management approach and its components

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.61 to
65.

GRI 401-1

New employee hires and staff turnover

Chapter 6, p.88.

GRI 401-2

Benefits for full-time employees not given to
part-time or temporary employees

Chapter 6, p.64.

The same benefits are granted regardless of the length of the working
day, at all significant sites of the activity.

GRI 401-3

Parental leave

Chapter 6, p.90.

GRI 402-1

Minimum periods of notice of operational
changes and possible inclusion of these in
collective agreements

Collaborators: Occupational Health and Safety

GRI 103-1

Explanation of the material issue and its boundary Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 61-67.

GRI 103-2

Management approach and its components

Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 61-67.

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 61-67.

GRI 403-1

Occupational health and safety management
system

p. 65

GRI 403-2

Hazard identification, risk assessment and
incident investigation

Chapter 6, p.90.

As a general provision, the minimum number of notice is 30 days in all
regions.

6.4.7

6.4.7; 6.8.5

6.4.7

6.4.4; 6.4.5

6.4.6

6.4.6, 6.8.8

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

GRI 403-3

Occupational health services

GRI 403-4

Worker participation, consultation, and
communication on occupational health and
safety

p.65

GRI 403-5 Worker training on occupational health and safety Chapter 6, p.65

GRI 403-6

Promotion of worker health

Chapter 6 p.88

GRI 403-7

Prevention and mitigation of occupational health
and safety impacts directly linked by business
relationships

Chapter p.64

GRI 403-8

Workers covered by an occupational health and
safety management system

Chapter 6 p.64

GRI 403-9 Work-related injuries

Chapter 6 p. 90

Collaborators: Training and teaching

GRI 103-1

Explanation of the material issue and its boundary

GRI 103-2

Management approach and its components

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.62, 88
and 89.

GRI 404-1

Average annual training hours per employee,
broken down by gender and by job category

P- 66 and p.63, Chapter 6, p.62,88 and 89.

GRI 404-3

Percentage of employees receiving regular
performance and professional development
assessments, broken down by sex and by
professional category

Chapter 6, p.62,88 and 89.

Andina has a detailed analysis by type of worker and position performed,
regarding the risks to which they may be subjected (e.g. professional
deafness, possible skeletal diseases, respiratory diseases). Specific
mitigation measures are available for each type of risk. These measures
include equipment and facility adaptations to meet established
standards, the delivery of personal protective equipment (PPE)
appropriate to each type of risk, training on the importance of their use,
and follow-up measures for verifying their use. Also, annual or periodic
medical checks are carried out for the purpose of monitoring the
identified risks

The functioning of the committees is defined in the Behavioral-Based
Safety Program

6.4.6

6.4.7

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

Collaborators Diversity and Equal Opportunities

GRI 103-1

Explanation of the material issue and its boundary

GRI 103-2

Management approach and its components

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.63.90
and 92.

GRI 405-1

Diversity in governing bodies and employees

p. 10, 27, 28, 33, 34 , 36 and Chapter 6, p.63, 86, 87,
90 and 92.

GRI 405-2

Ratio of base salary and women's pay against
men

p.86

6.2.3, 6.3.7, 6.3,10,6.4.3

6.3.7, 6.3.10, 6.4.4

GRI 406-1

Discrimination cases and corrective actions taken

There were no cases reported in the period

6.3.6; 6.3.7; 6.3.10; 6.4.3

GRI 407-1

Identification of operations and suppliers where
freedom of association and the right to benefit
from collective agreements may be infringed or
threatened, and measures taken to defend these
rights

p.21, 39 and 73.

Collaborators: Human rights assessment

GRI 103-1

Explanation of the material issue and its boundary Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 61-67.

GRI 103-2

Management approach and its components

Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 61-67.

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 61-67.

All suppliers must comply with the standards and requirements of the
Coca-Cola System and the Guiding Principles for Suppliers.

6.3.3; 6.3.4; 6.3.5; 6.3.8; 6.3.10;6.4.5;
6.6.6

GRI 408-1

Identification of operations and suppliers with a
significant risk of child exploitation, and measures
taken to contribute to the abolition of child
exploitation

p.73.

GRI 409-1

Significant operations and suppliers with a
significant risk of being the source of episodes of
forced labor, and measures taken to contribute to
the elimination of all forms of forced labor

p.73.

The prohibition on the recruitment of children under 18 years of age is
incorporated into the rules of the Internal Regulations on Order, Hygiene
and Safety, as well as in the regulations of contractors. All suppliers must
comply with the standards and requirements of the Coca-Cola System
and the Guiding Principles for Suppliers.

All suppliers must comply with the standards and requirements of the
Coca-Cola System and the Guiding Principles for Suppliers. Random
checks and audits are performed to detect possible episodes. In
addition, the Anonymous Complaints Channel is available to receive
complaints.

6.3.3; 6.3.4; 6.3.5;6.3.7;
6.3.10;6.6.6;6.8.4

6.3.3; 6.3.4; 6.3.5; 6.3.10

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

GRI 410-1

Percentage of security personnel who have
been trained on the organization's human rights
policies or procedures relevant to operations

p.73.

GRI 411-1

Cases of violations of the rights of indigenous
peoples

GRI 412-1

Number and percentage of operations that
have been subject to human rights impact
assessments or reviews.

p.88

GRI 412-2

Hours of employee training in human rights
policies or procedures

Chapter 6, p.88.

GRI 412-3

Number and percentage of significant investment
contracts and agreements that include human
rights clauses or that have been subject to human
rights analysis.

p.73.

Local communities

GRI 103-1

Explanation of the material issue and its boundary Chapter 1, p. 21, 22 and 23 and Chapter 5, p.67

GRI 103-2

Management approach and its components

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.67

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.67

Security personnel at all facilities are outsourced.

No cases at the closing of the report or the period.

The reporting organization must submit the following information 100%
of bottling plants are evaluated in human rights periodically by third
parties that contract The Coca-Cola Company.
a. X.XXX hours (ethics and code of conduct). An e-learning policy was
developed where people from all countries are trained, at pag.
b. x% of employees received the training. The reporting organization
must submit the following information:
a. All raw materials are audited in guiding principles by The Coca-Cola
Company.

All suppliers must comply with the standards and requirements of the
Coca Cola system, and the Guiding Principles for Suppliers.

6.3.3; 6.3.5; 6.6.6

6.3.5

GRI 413-1

Operations with local community participation,
impact assessments and development programs

From p.67 to p.70

The relationship with the community is managed from those responsible
for sustainability and institutional relations, always aligned with The
Coca-Cola Company and definitions of its public affairs areas.

6.3.9, 6.5.1, 6.5.2, 6.5.3, 6.8

GRI 413-2

Operations with significant negative impacts –
real or potential – on local communities

There have not been any identified significant negative effects on the
local communities where we have operations.

Public policy

GRI 415-1

Contributions to political parties and/or
representatives

Not performed

20 F. /www.koandina.cl/investors.

Beverage benefit and quality and excellence of products

GRI 103-1

Explanation of the material issue and its boundary Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 45-49.

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

GRI 103-2

Management approach and its components

Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 45-49.

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 45-49.

GRI 416-1

GRI 416-2

Percentage of significant product and service
categories whose health and safety impacts have
been assessed to promote improvements.

100% of products are analyzed and their
ingredients are adapted as sugar content in new
versions or new brands.

Cases of non-compliance relating to the health
and safety impacts of product and service
categories

the organization has not identified violations of
voluntary regulations or codes.

Responsible Marketing

GRI 103-1

Explanation of the material issue and its boundary Chapter 1, p. 21, 22 and 23 and Chapter 5, p. 47

GRI 103-2

Management approach and its components

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.47.

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.47.

GRI 417-1

Requirements for information and labelling of
products and services

Chapter 5, p. 47.

GRI 417-2

Cases of non-compliance related to information
and labelling of products and services

Chapter 5, p. 47.

GRI 417-3

Non-compliance cases related to marketing
communications

The Organization has not identified violations of
voluntary regulations or codes.

Economic and social development of local communities

GRI 103-1

Explanation of the material issue and its boundary

GRI 103-2

Management approach and its components

GRI 103-3

Assessment of management approach

GRI 418-1

Substantiated complaints regarding concerning
breaches of customer privacy and losses of
customer data

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.70 to
72

6.3.9, 6.5.1,6.5.2, 6.5.3, 6.8

6.3.9, 6.3.5, 6.8

6.7.1

6.6.1, 6.6.2, 6.6.3, 6.6.6

4.6

It has not been recorded in the period

6.7.1, 6.7.2, 6.7.7

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GRI Standard Content

Chapter / Page

Response

ISO 2600, Linked Clauses

GRI 419-1

Non-compliance with laws and regulations in the
social and economic area

The Organization has not identified any violations
of laws or regulations.

4.6

Customer development

GRI 103-1

Explanation of the material issue and its boundary Chapter 1, p. 21, 22 and 23 and Chapter 5, p.46

GRI 103-2

Management approach and its components

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.46.

GRI 103-3

Assessment of management approach

Chapter 1, p. 21, 22 and 23 and Chapter 5, p.46.

Social assessment of suppliers

GRI 414-1

Percentage of new suppliers examined based on
human rights criteria

p.72, 73 and p.74.

GRI 414-2

Negative social impacts on the supply chain and
measures taken

p.9 and p.73.

6.3.3, 6.3.4, 6.3.5, 6.6.6

6.3.5, 6.4.3,6.6.6, 7.3.1

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STATEMENT OF RESPONSIBILITY

JUAN CLARO GONZÁLEZ
Chairman of the Board of Directors /
Entrepreneur
RUT: 5.663.828-8

GONZALO SAID HANDAL
Vice Chairman of the Board of Directors
/ Business Administrator
RUT: 6.555.478-K

PILAR LAMANA GAETE
Independent Director /
Business Administrator
RUT: 8.538.550-K

ENRIQUE RAPETTI
Director / CPA
Foreign Citizen

JOSÉ ANTONIO GARCÉS SILVA
Director / Business Administrator
RUT: 8.745.864-4

GONZALO PAROT PALMA
Independent Director /
Civil Industrial Engineer
RUT: 6.703.799-5

GEORGES DE BOURGUIGNON ARNDT
Director / Economist
RUT: 7.269.147-4

RODRIGO VERGARA MONTES
Director / Business Administrator
RUT: 7.980.977-2

ARTURO MAJLIS ALBALA
Director / Attorney at Law
RUT: 6.998.727-3

he Directors of Embotelladora
Andina S.A. and the Chief
Executive Officer who have signed
this statement, are responsible
under oath of the accuracy of
the information provided in the
2019 Integrated Annual Report, in
accordance with the provisions of
General Rule N° 346 dated May 3,
2013, of Chile’s Financial Market
Commission.

SALVADOR SAID SOMAVÍA
Director / Business Administrator
RUT: 6.379.626-3

EDUARDO CHADWICK CLARO
Director / Civil Industrial Engineer
RUT: 7.011.444-5

FELIPE JOANNON VERGARA
Director / Economist
RUT: 6.558.360-7

MARIANO ROSSI
Director / Bachelor's Degree in
Business Administration
Foreign Citizen

ROBERTO MERCADÉ
Director / Industrial Engineer
Foreign Citizen

MIGUEL ÁNGEL PEIRANO
Chief Executive Officer/
Electrical Engineer
RUT: 23.836.584-8

GENERAL COORDINATION
CONSUELO BARRERA and PAULA VICUÑA.

Collaborators
Juan Antonio Miranda; Neiva Fátima Vieira;
Carlos Moncada; Sheila Chiriani Candia;
María Victoria Claro; Maria Francisca Ariztia
Von Wussow; Gonzalo Aguirre; Mariana Paz
González Cortés; Jenny Navas Ramírez;
Sergio Danilo Vallejos Berrios; Florencia
Allende and Cecilia Abati.

Content support and editing
www.deva.es

Design
www.disenohumano.cl

We are interested in your
opinion. It is important for
us to have your opinion to
improve our sustainability
management.

We invite you to send your suggestions, questions or any comments
regarding this Integrated Report to:
andina.ir@koandina.com, as well as to the offices of our operations.

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