"Keep our distance today, so that we can
later hug, share and enjoy."
INTEGRATED
annual
REPORT
20
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0
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Married to Isabel Somavía, with whom he had
four children (Isabel, Loreto, Constanza and
Salvador, who is a director of Coca-Cola Andina),
the Said Somavía family has been a fundamental
part of the development of the companies in
which it participates. This was highlighted by
Gonzalo Said, director of the Company, at the
time of his death: “I am left with the joy of
having been able to work very closely with him,
learn his way of dealing with business, respect
for partners and receive his wise teachings and
values that I will never forget".
Indeed, collaboration to carry out projects
and business developments was his hallmark.
This was reflected in his words when he was
awarded in 2018 by Diario Financiero and EY,
after finalizing his alliance with Scotiabank:
“The best thing we have done all our lives is never
to be business owners, we are business partners.
We are not in control, we are part of it".
Work was central to his life; throughout
his business career he developed a genuine
concern for the future, for how the world
and the company would look to new
generations and technological development.
At 90 years old, he contributed ideas and
trusted professionals with a digital focus.
His advanced age did not prevent him from
thinking long term.
He was a man whose actions reflected the
values on which he based his life. As Juan
Sutil, president of the Confederación de la
Producción y el Comercio (CPC) said:
“A great man and businessman is leaving us,
an example of hard work. A man leaves us, of
whom there are very few left, an example for
the new generations".
With these words, we wanted to pay tribute to
this great man who left us in July 2020, but who
will remain present among those who knew
him, through his example and his teachings.
0
0
0
TRIBUTE
to
José Said Saffie (R.I.P.):
“
”
...the role of every entrepreneur is the creation
of wealth, which is, after all, the driving force
behind development. But this responsibility
does not end there; it cannot end with mere
economic success. More than the material
value of things, it matters what good our
actions leave in others. In our actions, we
must reflect a desire to serve rather than to
control, a capacity to listen rather than to
command, striving to spread happiness and
confidence in all areas, in short, striving to
" be more rather than have more".
That was don José. A great man.
the importance of values
The value of people, family and collaborative
work were the main teachings of José Said,
who left us in the midst of the turbulent year of
2020 and who, until his last days, contributed
to make a mark in Coca-Cola Andina through
the Said Group.
In a period when all of Chile and the world had
to look inward, quarantine themselves up in
their homes and learn about another way of life,
his words and teachings have resonated in our
minds during these months. He was a man who
always prioritized the values of the people and
family as the central nucleus of society.
His constant concern was always oriented
towards acting with integrity and ensuring
that his business management was for the
direct benefit of employees, customers and
the community.
An example of this was given in 2003, when,
at the age of 73, he received the Icare award in
the Entrepreneur category. In his speech, he
pointed out that:
He was born in Arequipa, Peru, and at
a young age his family - originally from
Bethlehem, Palestine - settled in Chile.
Photo credit: Diario Financiero
in
dex
We
are1
Coca-Cola Andina
About Coca-Cola Andina
About the 2020 Integrated Report
Message from the Chairman of the Board
Chief Executive Officer Interview
2020 Highlights
History
Board of Directors and
Management Team
4
Our value
chain
Water management
Sustainable packaging
Energy management
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Flexibility
and
commitment
Work environment
Community
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Our
Company
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Principal
metrics
Corporate structure
98
Market leadership
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Broad portfolio, channels
and geographies
Value chain efficiency and productivity
120
Agility, flexibility and commitment
125
Subsidiaries, equity investees and associates 99
Properties and facilities
Principal products commercialized
Bottling agreements
Production capacity
Distribution
Principal clients and suppliers
Other operations
Investment and financing policy
Insurance
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Sustainable value
CREATION strategy
Market environment
Strategic framework
Business growth pillars
Materiality and relationship
with our stakeholders
Management focus
Generated and distributed
economic value 2020
Future commitments
6
Corporate
Governance
Ethics and compliance
Corporate Governance Model
Active, flexible and dynamic
risk management
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Exhibits
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Risk factors
Financial information
GRI table of contents
Glossary
Verification Letter
Statement of Responsibility
Acknowledgements
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A Total
Beverage Company
Market leadership
Broad portfolio, channels
and geographies
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Market
information
Regulatory framework
Legal information
Communication with Investors
Stock exchange information
Ownership and control
You will find the
following symbols in
this Integrated Report:
Hyperlink to
external website
Hyperlink to another page
within the report
This icon indicates that you
may find more information
in the Company's 20-F
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C h a p t e r
1
WE ARE
COCA-COLA andina
“In a short period of time we
have had to adapt to continue
serving our markets with the
excellence that characterizes us”
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WE ARE
COCA-COLA ANDINA
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SUSTAINABLE VALUE
CREATION STRATEGY
3
A TOTAL BEVERAGE
COMPANY
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OUR VALUE
CHAIN, RESOURCE
MANAGEMENT
5
FLEXIBILITY AND
COMMITMENT
6
CORPORATE
GOVERNANCE
7
INFORMATION FOR
THE FINANCIAL
MARKET
8
OUR COMPANY
9
PRINCIPAL
METRICS
00
EXHIBITS
About
Coca-Cola Andina
Company Identification
Embotelladora Andina S.A.
Open Stock Corporation
Chilean Tax ID91.144.000-8
Legal address: Miraflores 9153,
Renca, Santiago.
Contact information
Corporate Office
Miraflores 9153, Piso 7,
Renca, Santiago.
Telephone: (56 2) 2338 0520
Web: www.koandina.com
Investor relations
contact information
Paula Vicuña, Investor
Relations Manager
andina.ir@koandina.com
Miraflores 9153, Piso 7,
Renca, Santiago.
Telephone: (56 2) 2338 0520
Sustainability contact information
Consuelo Barrera
informesanuales@koandina.com
Ruta Nacional 19, Km 3,7,
Córdoba.
Telephone: (54) 351 496 8304
Company Description
Addresses
Embotelladora Andina S.A. (hereinafter
“Coca-Cola Andina” or the “Company”) is
one of the three largest Coca-Cola bottlers
in Latin America, servicing franchised
territories with almost 54.6 million people,
in which it delivered 4,171 million liters of
soft drinks, juices, bottled waters, beer and
other alcoholic beverages during 2020.
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, Said Handal
and Said Somavía families. The company's
value generation proposal is to become a
Total Beverage Company, using existing
resources efficiently and sustainably,
developing a relationship of excellence with
consumers of its products, as well as with its
collaborators, customers, suppliers, the
community in which it operates and with its
strategic partner The Coca-Cola Company,
in order to increase ROIC for shareholders
in the long term.
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Argentina: Ruta Nacional 19,
Km 3,7, Córdoba.
Tel: (54 351) 496 8888
Chile: Miraflores 9153,
Renca, Santiago.
Tel: (56 2) 2462 4286
Brazil: Rua André Rocha 2299,
Taquara, Jacarepaguá, Rio de Janeiro.
Tel: (55 21) 2429 1779
Paraguay: Acceso Sur, Ruta Ñemby, Km 3,5
-Barcequillo- San Lorenzo, Asunción.
Tel: (595 21) 959 1000
Risk Ratings
Rating Agency
Local
ICR Sociedad Clasificadora de Riesgo Ltda.
Fitch Chile Clasificadora de Riesgo Limitada.
International
Rating Agency
Standard & Poors
Fitch Ratings, Inc.
External Auditors
Ernst & Young-Chile Auditores
Consultores Limitada
Chilean Tax ID 79.991.120-5
Rating
AA
AA
Rating
BBB
BBB+
Throughout this Integrated Report we will be referring to certain
companies in Chile:
• • Vital Aguas S.A., hereinafter also “Vital Aguas”;
• • Vital Jugos S.A., hereinafter also “Vital Jugos”;
• • Envases Central S.A., hereinafter also “Envases Central”;
• • Coca-Cola Embonor S.A., hereinafter also “Coca-Cola
Embonor” or “Embonor”;
• • Coca-Cola de Chile S.A., hereinafter also “Coca-Cola de
Chile” or “Coca-Cola Chile”.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 About 2020
the
Integrated Report
This is our third Integrated Report, in
which we communicate about our
progress in the tri dimensional area of
ESG (environmental, social and
corporate governance) along with our
financial management of the Company
for 2020. As part of our commitment
to reduce paper consumption, the
Integrated Report is only presented in
its digital version and is available on our
website www.koandina.com and on the
investor relations application, available
on App Store and Google Play.
Standards
Scope
The Integrated Report was prepared in
accordance with:
• GRI standards, under the comprehensive
compliance option.
• Guidelines of the International Integrated
Reporting Council (IIRC) Integrated
Reporting Framework.
• Mandatory requirements of General
Standard No. 30 of Chile’s Financial Market
Commission (CMF).
• Principles set out in AA1000-APS 2008
Accountability Standard of inclusiveness,
relevance and response to stakeholders.
• 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.
of Coca-Cola Andina S.A. and its subsidiaries
for the period between January 1, 2020 and
December 31, 2020.
Presentation cycles
Pursuant to Chilean legislation, this
Integrated Report is presented on an annual
basis and is available to our stakeholders 15
days prior to the General Shareholders’
Meeting for the corresponding year.
Verification
EY Servicios Profesionales de Auditoría
y Asesorías SpA has verified the
environmental, social and corporate
governance information.
Preparation and approval process
In preparing this Integrated Report we
assembled a diverse team, composed of
people from multiple areas of our Corporate
Office. Additionally, it was reviewed and
approved by the Company’s Chief
Financial Officer, Chief Executive Officer
and the Board of Directors.
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Design
The design of the Coca-Cola contour bottle,
elements of marketing campaigns of The
Coca-Cola Company, logos and every
reference to the brands of The Coca-Cola
Company contained in this Integrated
Report are registered property by
The Coca-Cola Company. All artistic
compositions and photographs contained
in this document are the property of
Embotelladora Andina S.A.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Message Chairman
from
Board Directors
of
of the
Undoubtedly, we have journeyed
through a challenging year. The complex
world, characterized by the fourth
industrial revolution of technological
identity, was coupled with an unforeseen
variable and of very high impact: the
COVID-19 pandemic.
In this scenario of uncertainty, we
stimulated our critical thinking, creativity
and flexibility to successfully solve
problems, taking care of people, and
ensuring the continuity of our operation.
This year 2020 challenged us to reflect on the
lifestyles we lead and installed the "new
normal" paradigm. Families, countries and
companies, from the weakest to the strongest,
are all empathizing with the essentials of
life, affections as a refuge, the revaluation of
personal care linked to respect for the other,
recognizing ourselves as vulnerable beings and
the scarcity of resources.
At Coca-Cola Andina we set out to overcome
the crisis scenario and be strengthened by our
ability to adapt to adverse situations. We
particularly learned to recognize and value
ourselves as a resilient company, because we
are able to reinvent ourselves, adapting our
labor relations and processes with flexibility,
commitment and social responsibility. All this
based on the work of high-performance
teams, solidarity and caring for the health of
each person in our Company.
Together with the Board I preside, we were
firmly convinced to accompany those who
needed it most, forming partnerships to
effectively provide aid. That is why,
among other initiatives, we helped finance
a Program of the Confederation of
Production and Trade (Confederación de
Producción y Comercio-CPC), for the
purchase of mechanical ventilators and food
boxes. Perhaps one of the Company's most
outstanding actions in 2020 was the
development of the "My Neighborhood My
Store" app, which became an effective
social support vehicle to revitalize local
economy, connecting neighborhood stores
with their customers and the community,
through the use of digital tools. It is about a
collaborative and circular economy model,
which helps connect stores with their
neighbors, thus reducing mobility in
delivering benefits, and supporting
vulnerable families. This platform allowed
us to deliver 18,000 digital food boxes.
We closed 2019 with very good results and
began 2020 with high expectations for the
business, which made us project a high
performance in all operations. With great
agility and foresight, in February we began to
prepare to face the fast pace increase in
COVID-19 contagions that we saw in other
latitudes, so we quickly designed contingency
plans, assembling crisis teams and forming
local and regional teams. We had to adapt and
adjust our operation to recover the business,
as we suffered the impact and experienced
very stressful moments. Thanks to everyone's
effort, the commitment of each worker and the
assertive direction of our leaders, we were able
to close a successful 2020.
Our human capital deserves special
recognition. We confirmed this year that
we have high-performance teams, able to
react effectively to adversity and keep
focused. We are very proud of the
collaborators of our Company. The added
bonus of continuous innovation and the
commitment of our teams grant me the
conviction and confidence that in 2021 we
will be able to progress on all our goals,
capitalizing on the deep learnings of this
unprecedented 2020.
It is time to highlight the most relevant
achievements, based on our sustainable value
creation pillars:
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Juan Claro
Chairman of the Board of Directors
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 We ensured the continued supply to our
customers and consumers, quickly adapting
to a complex new scenario, keeping focused
and keeping a priority effort in implementing
all necessary measures in line with the
recommendations of WHO and the
governments in which we operate, with the
aim of protecting our employees by
minimizing the likelihood of COVID-19
contagion. We maintained the continuity of
the operation day after day, with excellent
coordinated work and great flexibility, which
allowed us to adapt to the new normalcy in
the way we operate.
The year 2020 had dissimilar periods that I
propose to review with you. We started the
first quarter with good results in sales volume
compared to the same period of the previous
year (0.4%), which began reversing from
mid-March, with the advance of COVID-19
in our region. The second quarter was most
affected by strict quarantines and social
distancing measures implemented by
governments in order to prevent the spread of
the virus. The steepest volume drop occurred
in April (-20.8%) followed by May (-17.1%)
June (-4.2%). Already in the third quarter we
started recovering, closing with total volumes
practically in line with the previous year, and
soft drinks growing by 2.1%. Finally, in the
fourth quarter we consolidated this volume
recovery, with an increase of 6% compared to
the same period of 2019.
Similarly, in 2020 we faced significant
changes in our sales mix. As a result of
changes in daily family and work life,
there was a marked migration of
consumers to family-size and returnable
consumer packaging. There were also
changes in the channel mix, with a large
decrease in the sales volume of the on premise
channel, explained by the closure
of restaurants and bars, which was partly
offset by the strengthening of the
traditional channel that, due to its
capillarity and proximity, played a key
role in the supply of our consumers,
coupled with the boost of sales of the
online channel (www.micoca-cola.cl).
We accompanied these changes by
strengthening financial management: we
managed to structure a robust cost and
operational continuity plan, with a thorough
review of expenses and prioritizing the
investment plan, all of which allowed us to
maintain a healthy cash flow, high liquidity
and strong financial results.
Principal figures:
• Accumulated consolidated sales volume
reached 734.6 million unit cases, decreasing by
1.6% compared to the previous year.
• Accumulated consolidated net sales reached
CLP 1,698,281 million, decreasing by 4.5%
compared to the previous year.
• Accumulated consolidated adjusted EBITDA
was CLP 350,532 million, increasing by
0.5% compared to the previous year. Adjusted
EBITDA margin for the period reached
20.6%, expanding 100 basis points from the
previous year.
• Accumulated income attributable to the
owners of the controller was CLP 122 billion,
decreasing by 29.8% compared to the previous
year. If we adjust 2019 net income by the
onetime effect of recognizing a tax credit in
Brazil, the decrease was 1.4%.
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Sustainable growth and
challenges for 2021
The world and countries as we knew them
changed, perhaps forever. A new
normalcy, in which consumption habits
were transformed, channels reinvented,
behaviors were changed, and yet our
sustainable growth goal based on business
growth pillars remained and remains more
in place than ever, as did our commitment
to adhere to the Global Compact, and the
achievement of the 2030 Sustainable
Development Goals (SDGs). ESG indices
assess the performance in the triple
environmental, social and governance
dimension of the world's most prestigious
publicly traded companies.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Being part of these indices is a great
recognition and the good results we achieve
are possible thanks to the efforts of all our
collaborators and the firm conviction to
publicly share what we do. This Integrated
Report reflects the progress that the
Company has made in ESG topics, and that
has resulted in continuous improvements in
the evaluations made by the different indexes
of which we are part. For the fifth
consecutive year the Company is part of the
prestigious index family, S&P Dow Jones
Indices, reaching the seventh position
worldwide within our industry.
At the beginning of 2021 we entered the
S&P IPSA ESG Tilted Index S&P, an
index that includes companies from the S&P
IPSA, Chile's leading stock market indicator
.
78
75
72
70
63
41
Future commitments
Our forward-looking vision is built on the
growth pillars of the business and responds
to each of our stakeholders. These pillars
are market leadership by capturing every
opportunity to generate value for our
customers with a service of excellence;
satisfy our consumers through a broad
portfolio; efficiently operate our network
of operations and logistics, reducing the
impact on the environment and
continuously investing in infrastructure
and process innovation.
In this year 2020, which was marked by an
unprecedented event such as the COVID-19
global pandemic, we confirmed our
resilience, as we navigated and overcame
critical moments and faced situations that,
while different from those that normally
challenged us, allowed us to confirm that in
Coca-Cola Andina we took on the
organizational culture, the team and the tools
to convert and achieve successful results
thanks to our values, flexibility, adaptation
and commitment of our team, with great
leadership and social responsibility.
I cannot end this letter without referring to a
great man, who left us this year 2020: José
Said. As a shareholder and prominent
entrepreneur, he was a man who lived by and
set fundamental values, such as collaborative
work and a job well done, the importance of
family, and loyalty. His constant concern was
to ensure that his business management was a
direct benefit to society, something that we try
to continue doing at this board that I preside.
A great entrepreneur, citizen and friend, who
will continue forever inspiring the work and
development of the Company.
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Juan Claro
Chairman of the
Board of Directors
2015
2016
2017
2018
2019
2020
Note: axis Y reflects the score achieved during each year.
We pursue building an inclusive, dynamic
and agile culture, with our collaborators
as a fundamental pillar, supporting the
communities in which we operate and
responding with utmost responsibility to the
demands of society and regulatory agents,
through a Corporate Governance of excellence.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Chief Executive
Officer Interview
Innovation, technology, flexibility and
diversity of ideas are the essential keys to
success in this new reality. Those who in
2020 were able to rethink the way they
did things, find new paths, adapt
quickly to the new environment, in the
most challenging year in our history,
were able to grow as people, as teams
and as an organization.
1. How would you summarize 2020?
2020 was an unprecedented year and completely
different from the previous ones. The three
words that would best define it are Challenge,
Risk, and Change.
• Challenge: because we had to face a world
unknown to all, COVID-19 generated
uncertainty, fear and a profound impact
on markets, especially at the beginning of
the pandemic. We had to rapidly search
and generate, new solutions to questions
never before posed. Of course, the most
important thing was to prioritize the health
of our employees and keep the operation
running. In a few days we implemented
teleworking, we coordinated the actions to
be implemented with all our stakeholders
and were able to adapt our facilities and
processes to the recommendations of WHO
and that of the health agencies of each of
the countries where we operate.
• Risk: because we had to make an
enormous amount of vital decisions that
were completely innovative in the face of
unknown problems, and we were able to
implement them in record time to adapt
to the constraints that were generated,
minimizing each impact.
• Change: because it was the constant
variable to be able to continue working,
to adapt to this new reality, knowing that
we had to be flexible, because what was
implemented could be modified successive
times by the maelstrom with which the
environment evolved.
2020 was a year of great learnings that
allowed us to value everything we had done
and that set the foundations for us to
successfully overcome the challenges we
faced. It was also a year in which, beyond
the significant and profound global problem
of the pandemic, we not only were able to
continue operating but also to move forward
with our vision of continuing to transform
Coca-Cola Andina. A good example of this
was the incorporation of the beer category
into our portfolio in Chile, through the sales
and distribution agreement with AB InBev,
and, in Argentina, Brazil and Paraguay, we
continued adjusting our processes and
implemented Front Office systems in SAP.
2. What are the main achievements of
Coca-Cola Andina?
With satisfaction we can say that this year we
were able, once again, to achieve our economic
and sustainable growth objectives, generating
value for our customers and consumers, making
processes more efficient and maintaining our
commitment to sustainability. This was possible
because of our agile and inclusive culture, for
having teams of excellence, supporting the
communities in which we operate and responding
to the demands of society and its regulators.
In this sense, it is worthy to recognize the
important achievements reached based on
our growth pillars:
• Market leadership: working very well
coordinated and in tune with
The Coca- Cola Company teams and
reversing all context, we were able to grow
with our most relevant brand, Coca-Cola
Trademark, in consolidated volume vs. the
previous year, reaffirming the leadership in
the sale of soft drinks in all 4 operations. In
the juice segment we were first in Argentina,
Brazil and Paraguay and second in Chile,
and in waters we reached the first place in
Paraguay and second in Chile and Argentina.
• Portfolio expansion: in 2020, despite the
complexity and restrictions arising from the
global environment, we launched more than
33 new products in non-alcoholic beverages
and in August, we closed an agreement with
AB InBev to commercialize their beers in
our franchise in Chile. This agreement,
which is part of our product growth and
diversification strategy, complements the
agreements signed with Diageo and Capel.
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Miguel Ángel Peirano
Chief Executive Officer
• Operating efficiency and environmental
care: h we have improved efficiency in
our internal processes while reducing the
environmental impact of our operations, we
were able to reduce water consumption by
4.9% compared to the previous year, 4.1%
the energy used and 14.9% the amount of
waste generated (indicators measured in
quantities per liter of beverage produced).
We also responsibly took care of our
packaging, recovering 11.7% of the tons
introduced to the single-use bottle market,
a material that, in the operations of Brazil
and Argentina, we reuse to produce new
bottles, while continuing to significantly
develop the returnable segment in the four
countries. These conscious efforts allowed
us to reduce our carbon footprint for 2020
by nearly 15,000 tons of equivalent CO2.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
• Agility, flexibility and commitment: new
needs and interactions between consumers,
customers, collaborators, suppliers, and
companies have prompted us to develop a
digital transformation agenda for Coca-Cola
Andina, which enabled sustainable growth
and cost reductions, improving the service
experience. I would like to highlight in
this regard, for example, the strong growth
shown by direct sales to the consumer
through micocacola.cl in Chile, multiplying
sales from 2019, representing 2% of the
Company's total sales in the Metropolitan
Region, with excellence service and attention
level. Digitization also allowed us, in a
pandemic context, to be closer than ever to
communities, one of the most emblematic
programs we implemented was "Mi Barrio
Mi Almacén" (My Neighborhood My
Store”), whose mission was to accelerate
the relationship between business and
consumers in the task of delivering aid
to vulnerable families, through a Digital
Solidarity Box redeemed in the network of
participating stores in the same commune.
This project enabled us to meet the needs of
the communities in which we participate and
support the traditional channel in the most
difficult times for their businesses.
Inside the Company, we also strived to
achieve the approval of all our systems and
processes on the SAP platform (Coke One)
and the cultural change that these new
challenges involved.
3. The pandemic more emphatically evidenced
some problems such as access to water. What is
Coca-Cola Andina's view on this issue?
Together with The Coca-Cola Company, we
have been working on this central issue for a
long time, with the focus on achieving a zero
balance between the water we consume and
the one we generate through three initiatives:
1) reducing water consumption 2) reusing as
much as possible and 3) replenishing the
water we consume and the one we cannot
reuse in our processes through investments in
green areas and forests.
We monitored indicators with modern
systems that allow us to control processes and
consumption in real time and respond
quickly to any inconvenience. One of our
great prides in water management is the
Brazilian operation, in which the Duque
de Caxias plant is one of the most efficient
in the region. Also worth mentioning is
the Jacarepaguá plant, where this year
we completed the installation of osmosis
equipment at the exit of the effluent
treatment plant, enabling the recovery
of water to be reused in multiple services.
We are 100% aligned to the United Nations
SDGs (2030 Sustainable Development Goals)
and particularly in this regard, committed to
ensuring sustainable resource management,
sanitation and availability for those who
need it most. In Argentina, for the third
consecutive year, we continued the alliance
with the Fundación Ruta 40, managing to
install 30 water filters that ensure 18,000 liters
for the populations most in need.
We continue to work on the development of
culture and awareness of all stakeholders
regarding the relevance of recycling,
supporting the plastic material collection
capabilities of the different related entities in
this process. In our operations in Argentina
and Brazil we are using recycled resin in our
bottles, while in Chile and Paraguay we are
developing the capacities for recycling and
reuse of collected and recycled bottles.
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In addition, in all four operations we have
significantly reduced the weight of the
packaging and will continue light weighting
as technology allows us. In the last two years
we have managed to remove approximately
850 tons of plastic thanks to all the light
weighting implemented.
4. The problem of plastic pollution has been
relevant in recent years, how are you
addressing it?
We have adopted the "World Without Waste"
commitment launched by The Coca-Cola
Company together with the global alliance of
the Ellen MacArthur Foundation to ensure a
progressive breakthrough on the subject. The
goal of collecting, recycling and reusing 100%
of the packaging sold by 2030 is of great
magnitude, since for its achievement we must
involve and engage all sectors, formal and
informal, public and private entities related to
plastics and consumers.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Another way to reduce the amount of single use
plastic we bring to market through our
sales is the development of returnable
packaging. For several years we have been
focusing our efforts on its growth and, in
particular, during 2020, we have reached
significant achievements in the four
operations: in Argentina, Chile and Paraguay
approximately 50% of our sales are already
made in returnable packaging, while in
Brazil, with the investment of the Duque de
Caxias plant, we doubled our production
capacity allowing us to grow significantly in
the sales mix in recent years.
5. What are you doing about retaining and
attracting talent to ensure the
commitment of your collaborators?
The foundation of our culture is based on
developing and maintaining a friendly,
inclusive and challenging work environment
that encourages participation and risk-taking
and generates growth opportunities based
on meritocracy. We want to attract the
best talents, develop them and retain them.
We are in a very attractive industry for all
those talents who want to be protagonists,
since the changes generated in the buying
and consumption habits of customers and
consumers, make this industry a constantly
evolving, challenging business, open to
innovations and developments, where
creativity, risk-taking and innovation are key.
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The growth of the online market has generated
a whole world of opportunities and challenges,
all of that being part of an undisputed leading
company like Coca-Cola makes us a very
attractive harbor for all talented people who
long to develop and grow.
• In Brazil we won the Execution Cup within
the bottling system, we obtained 1st place in
the 2020 Coca-Cola System Quality Award
in Brazil, for the Duque de Caxias plant and
1st place in The Top of Mind brand with the
Coca-Cola brand.
The recognitions obtained show us that we are
on the right path:
• In Chile in the Mercotalento ranking we
obtained the 1st place in soft drinks industry
and the 6th place in preferred employers.
In addition, we became part of the Top 20
companies with better corporate reputation.
• In Paraguay, for the fourth consecutive year
we were honored with the “Employer of the
Year" award and won 1st place for the 8th
consecutive year in the Top of Mind brands
with the Coca-Cola brand. In addition, we
were selected as the South Latin Business
Unit's No. 1 Bottler in 2019 and designated
to compete in the Candler Cup of the
Coca-Cola System.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 6. What were the most rewarding management
moments as CEO of Coca-Cola Andina?
When you run a company, beyond the short
term results that are being achieved year by
year, a vision of what you would like to build
and leave as a legacy during the years in
which you have the responsibility to lead it,
where you would like to take the company in
each of the main relevant vectors : the team;
culture, the impact on society and
communities where we operate; our role as
benchmarks in the industry; our position in
front of stakeholders; responsibility for the
use of natural resources to ensure the
sustainability of the business; the opinion of
our consumers and customers, ultimately our
footprint and contribution to society.
Looking back, the evolution we have
achieved as a team fills me with pride and
satisfaction. We have raised awareness at all
levels of the responsibility we have as leaders
and mentors, on each and every one of these
great issues. We have firmly and sustainably
worked, growing year after year, exceeding
our goals and aiming for more, being
consistent and consciously unsatisfied with
what has been achieved, while convinced and
grateful for all that has been done; because
that's the engine to keep on developing.
Getting to stamp this attitude of commitment
in our people is, intimately, the most
rewarding thing I have enjoyed as CEO of
Coca-Cola Andina, because it gives me the
certainty and peace of mind that whatever the
challenge, whatever the problem, we have a
team that will successfully overcome it.
7. What are the opportunities and challenges
for 2021? What management learnings has the
pandemic left behind?
2020 has been a year that, because of the depth
of the changes that society in the world was
affected, could be seen as the beginning of a
new era. Economies in all countries have been
strongly impacted, restrictions on circulation and
social activities transformed markets, consumer
living and shopping habits have changed
profoundly, online sales channels have developed
rapidly, teleworking grew explosively. From all
this we have learned and continue to learn.
2021 will undoubtedly be a very challenging
year, because despite the arrival of several
vaccines for COVID-19 we do not yet know
when we will definitely come out of the
restrictions, and when that happens, we will also
not know how much and how deeply all the
impacts that were generated will last, nor how
they will evolve. But of one thing I am
convinced, we will not return to the starting
point, changes will be faster and as an
organization we will have to be more flexible
and more able to adapt to these new
environments and thus withstand the strong
winds of change that will be the new normal.
It will become increasingly difficult to
imagine the future, so more than trying to
predict it, it must be constructed, and the
capabilities of creating and adapting will be
key to success. The world is seeing this year
as a new beginning, a renaissance, and perhaps
this is the most interesting challenge that we will
experience in 2021, which, like any change, will
generate many opportunities to continue to grow
and consolidate our teams and leadership.
Miguel Ángel Peirano
Chief Executive Officer
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 2020
highlights
EBITDA MARGIN BY COUNTRY
15.3%
20.1%
21.9%
31.3%
figures 1
Volume
23%
Sales
19%
36%
32%
9%
34%
38%
9%
EBITDA
14%
33%
40%
14%
Argentina
Brazil
Chile
Paraguay
Coca-Cola Andina at a glance
4
Countries
91
Distribution centers
17,354
Collaborators
2,189.8
Sales
(MUSD)
155.9
Net Income
(MUSD)
1.86
2,862
Km2 franchised
territories
273.9
Clients
(000’s)
734.6
Million unit
cases sold
449.6
EBITDA
(MUSD)
2,269.4
Market capitalization
(MUSD)
11.8
Water consumption
lt. water /lt. beverage produced
Waste
gr/lt. beverage produced
1. Total figures may not add up 100% due to rounding.
For more information of our financial results please review the Analysis of the 2020 Financial Results.
10
Production plants
54.6
Consumers
(million)
4,171.0
Million liters
produced
20.6%
EBITDA Margin
4
Other plants
0.31
Energy
MJ/lt. beverage produced
0
0
0
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Sustainability at the heart
of the business
In each of the decisions we make, we
care about bringing value to all our
stakeholders. Our commitment to
sustainability is a central component of
our growth strategy.
Indices in which we participate
For the fifth consecutive year we have
been selected to integrate the Dow Jones
Sustainability Index Chile and, for the
fourth year, the Dow Jones Sustainability
MILA Pacific Alliance Index.
2020 Highlights
Impact of the COVID-09 pandemic
on our business
Due to the impact COVID-19 has had
globally, during 2020 we took the necessary
actions to protect our employees and ensure
the Operational Continuity of the Company.
Among the measures that were taken are:
• We carried out an education campaign for
our employees on the measures to be taken
to prevent the spread of COVID-19.
Also, in August 2020 we were ratified in
the FTSE4Good index.
• We decided to send home anyone in an
environment of potential contagion.
The Company's Series B shares are part
of the IPSA, and the Series A shares are
part of the IGPA, among other indices
of the Santiago Stock Exchange.
Lastly, in January 2021, the Santiago
Stock Exchange announced the creation
of the S&P IPSA ESG Tilted Index
(SPCLETCP), of which we are a part.
This index measures the performance of
eligible S&P IPSA securities that meet
certain sustainability requirements.
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Distribution Agreement with Cervecería
Chile S.A. (AB InBev Chile)
diversification strategy, we incorporated the
commercialization and distribution of alcoholic
beverages, following agreements with Diageo
and Capel. In addition, and in accordance with
the strategy indicated above, in August 2020,
we signed, in conjunction with Coca-Cola
Embonor S.A., a distribution agreement with
Cervecería Chile S.A. ("AB InBev Chile") to
sell, commercialize and distribute the main
brands of AB InBev, among which are Corona,
Stella Artois, Budweiser, Becker, Báltica,
Cusqueña, Kilómetro 24.7 and Quilmes,
among others.
• We implemented new grooming and
cleaning protocols in our facilities.
• We modify certain practices and work
activities, maintaining customer service:
• We proceeded with teleworking, in all the
positions where possible.
• We cancelled all domestic and international
work trips.
• We provided personal protection elements,
including masks and hand sanitizers, to all
those collaborators who, by the nature of
their position, had to continue working in
plants and distribution centers, as well as
drivers and truck assistants.
Since mid-March 2020, the governments of
the countries where we operate began taking a
number of steps to reduce the COVID-19
contagion rate.
These measures closed schools, universities,
restaurants, bars and malls. In addition, mass
events were prohibited, imposition of health
inspection check points and, in some cases,
total or partial quarantines for part of the
population. In addition, economic stimulus
measures for families and businesses were
announced by governments.
As a result of the pandemic, and the
restrictions imposed by the authorities in the
countries where we operate, during 2020 we
saw great volatility in our sales in the
different channels.
We observed a reduction in our sales
volumes on the on-premise channel,
consisting mainly of restaurants and bars,
which for a few months of 2020 were
unable to operate; then, when they were
able to start operating, they did so with
capacity restrictions. We also observed
that during most months of 2020 the
traditional and wholesale channels were
the ones that boosted volume growth, and
that the supermarket channel lagged
further behind.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 HISTORY
1946 1985 2000 2011 2016 2020
1946
1985
1985
2000
2011
2016
2020
Embotelladora Andina is
born with the license to
produce and distribute
Coca-Cola products
in Chile.
Sales from the individual
bottle go to the 24 - 8 oz.
bottle cases (today known
as the "unit case").
1955
Andina is listed on the
Santiago Stock
Exchange.
The controlling
shareholders, Garcés Silva,
Said Handal and Said
Somavía families, acquire
control of the Company.
1994
Andina begins trading on the
New York Stock Exchange
(NYSE).
Acquisition of Rio de Janeiro
Refrescos in Brazil.
1995-96
Acquisition in Argentina
of the Coca-Cola bottler in
Rosario and Mendoza, and the
packaging business in
Buenos Aires.
1996
The Coca-Cola Company
acquires 11% ownership
in Andina.
Acquisition in Brazil of the
Coca-Cola bottler in Niteroi,
Vitoria and Governador
Valadares (NVG).
The new plant located in
Renca begins operating
in Chile.
2007-08
Joint venture (50/50)
with the Coca-Cola
System for the juice
business in Brazil.
2008
Andina incorporates
Benedictino to its
water portfolio.
2012
Merger with Coca-Cola Polar
incorporating new territories in
Argentina, Chile and Paraguay.
Andina acquires 40% ownership
in Sorocaba Refrescos in Brazil.
The Chadwick Claro family
joins the Controlling Group of
the Company formed also by
the Hurtado Berger, Said
Handal, Said Somavía, and
Garcés Silva families.
2013
Andina acquires
Companhia de Bebidas
Ipiranga, a Coca-Cola
bottler in Brazil.
New agreement for the
sale, commercialization
and distribution of the
main brands of AB
InBev Chile in certain
regions in Chile.
30-year Bond Issuance for
USD 300 million, 144/A
Reg S in the United States.
The Hurtado Berger family
sells the Company's Series A
shares and is no longer part
of the Controlling Group.
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Creation of the Coca-Cola del
Valle New Ventures S.A. joint
venture along with Coca-Cola
de Chile S.A. and Coca-Cola
Embonor S.A., for the
production and distribution
of non-carbonated beverages.
2018
Acquisition of Guallarauco.
New agreement with Diageo
for the distribution of
alcoholic beverages.
The new de Duque de
Caxias plant begins
operating in Brazil.
2019
New agreement for
the distribution of
Pisco Capel in Chile.
Note: For more details on the historical
review, please visit our website.sf s
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Board directors
of
and
executive team
Composition of the Board of Directors
The administration of our Company is exercised through a Board of Directors1, whose members are proposed
and elected every three years by the General Shareholders' Meeting2,and whose mission is to protect and add
value to the Company's equity. The Company’s Chief Executive Officer reports to this Board of Directors, and
General Managers of each of our operations and main officers of the Corporate Office report to the Chief
Executive Officer. The role of the Corporate Office is to lead and control operations, share best practices
among them, define and implement the Company's financing strategy, and prepare and deliver the Company's
information to stakeholders.
1. Our Board is composed of 14 members. To date, there is a vacancy until the next General Shareholders' Meeting to be held in the first quarter of 2021 due to the
resignation to the Board of Directors of Mr. Arturo Majlis Albala in September 2020.
2. The last election of directors was held at the General Shareholders' Meeting on April 16, 2020.
Juan Claro González
José Antonio Garcés Silva
Marco Antonio Araujo
Eduardo Chadwick Claro
Chairman of the Board
Entrepreneur
Chilean
Year of incorporation:
2004
Rut 1 5.663.828-8
Vice chairman of
the Board
Business Administrator
Chilean
Year of incorporation:
1992
Rut 8.745.864-4
Industrial Engineer
Year of incorporation:
2020
Foreign citizen
Civil Industrial Engineer
Chilean
Year of incorporation:
2012
Rut 7.011.444-5
María del Pilar
Lamana Gaete*
Business Administrator
Chilean
Year of incorporation:
2017
Rut 8.538.550-K
Roberto Mercadé
Engineer
Year of incorporation:
2019
Foreign citizen
Gonzalo Parot Palma*
Civil Industrial Engineer
Chilean
Year of incorporation:
2009
Rut 6.703.799-5
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Mariano Rossi
Salvador Said Somavía
Gonzalo Said Handal
Rodrigo Vergara Montes
Business Administrator
Year of incorporation:
2012
Foreign citizen
Business Administrator
Chilean
Year of incorporation:
1992
Rut 6.379.626-3
Business Administrator
Chilean
Year of incorporation:
1993
Rut 6.555.478-K
Business Administrator
Chilean
Year of incorporation:
2018
Rut 7.980.977-2
Following we identify those
people who are not currently
directors of the Company, but
who were directors within the
last two years:
Arturo Majlis Albala
Manuel Arroyo
Enrique Rapetti
Lawyer / Chilean
Last re-election: April 16, 2020.
Date of termination in office:
September 29, 2020.
Rut 6.998.727-3
Business administration
and law degree
Elected on April 19, 2018.
Date of termination in office:
April 24, 2019.
Foreign citizen
Accountant
Last re-election: April 19, 2018
Date of termination in office:
April 16, 2020
Foreign citizen
*Independent directors.
1 Rut: Chilean Tax ID.
Georges Antoine De
Bourguignon Arndt
Economist
Chilean
Year of incorporation:
2016
Rut 7.269.147-4
Felipe Joannon Vergara
Economist
Chilean
Year of incorporation:
2018
Rut 6.558.360-7
For more information on the experience of the directors, see page 75
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. No other
Company directors hold Company shares.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 MANAGEMENT STRUCTURE
Principal officers
BOARD OF DIRECTORS
EXECUTIVE COMMITTEE
DIRECTORS' COMMITTEE
CULTURE, ETHICS AND
SUSTAINABILITY COMMITTEE
AUDIT COMMITTEE
INTERNAL AUDIT
CHIEF EXECUTIVE OFFICER
GENERAL MANAGER ARGENTINA
GENERAL MANAGER BRAZIL
GENERAL MANAGER CHILE
GENERAL MANAGER PARAGUAY
CHIEF FINANCIAL OFFICER
CHIEF STRATEGIC PLANNING
OFFICER
CHIEF LEGAL OFFICER
CHIEF HUMAN RESOURCES
OFFICER
CHIEF INFORMATION
TECHNOLOGY OFFICER
MIGUEL ÁNGEL PEIRANO
ANDRÉS WAINER
• Chief Executive Officer
• Electrical Engineer
• In office since January 1,
2012
• Rut* 23.836.584-8
• Chief Financial Officer
• Economist
• In office since November
1, 2010
• Rut 10.031.788-5
FERNANDO JAÑA
JAIME COHEN
• Chief Strategic Planning
Officer
• Civil Industrial Engineer
• In office since May 1, 2019
• Rut 12.167.257-K
• Chief Legal Officer
• Attorney at Law
• In office since September
30, 2008.
• Rut 10.550.141-2
MARTÍN IDÍGORAS
GONZALO MUÑOZ
• Chief Information
Technology Officer
• Systems Engineer
• In office since November
5, 2018
• Rut 22.526.397-3
ARGENTINA
FABIÁN CASTELLI
• General Manager
• Industrial Engineer
• In office since April 1,
2014.
• Dni 17.744.981
CHILE
JOSÉ LUIS SOLÓRZANO
• General Manager
• Business Administrator
• In office since April 1, 2014
• Rut 10.023.094-1
*Rut: Chilean Tax ID
• Chief Human Resources
Officer
• Certified Public
Accountant
• In office since January 5,
2015.
• Rut 7.691.376-5
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0
8
BRAzIL
RENATO BARBOSA
• General Manager
• Economist
• In office since January
1, 2012
• CPF 183.430.901-87
PARAGUAY
FRANCISCO SANFURGO
• General Manager
• Mechanical Engineer
• In office since January
1, 2005
• Rut 7.053.083-K
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 EXECUTIVE TEAM OF OUR OPERATIONS
ARGENTINA
BRAzIL
CHILE
PARAGUAY
FABIÁN CASTELLI
General Manager
FERNANDO RAMOS
Finance and Administration
Manager
RENATO BARBOSA
General Manager
RUI BARRETO
Commercial Manager
JOSÉ LUIS SOLÓRZANO
General Manager
FRANCISCO SANFURGO
General Manager
ALEJANDRO ZALAQUETT
EDUARDO YULITA
Finance and Administration
Manager
Finance, Administration,
Systems and Procurement
Manager
MARCIO BAULY
RODRIGO ORMAECHEA
MELINA BOGADO
PAOLA ROLANDO
Human Resources
Manager
PABLO BARDIN
Operations Manager
Sales Manager Rio de
Janeiro
RODRIGO KLEE
Growth, Strategic and
Digital Transformation
Manager
RODRIGO MARTICORENA
Operations Manager
People Manager
SANTIAGO LÓPEZ NOVOTNY
DAVID PARKES
Finance and Administration
Manager
MAX CIARLINI
Human Resources
Manager
FERNANDO FRAGATA
Legal and Institutional
Relations Manager
Supply Chain and
Logistics Manager
DIEGO GARAVAGLIA
Commercial Manager
ARIEL MOLINA
Legal Manager
DANIEL CARIDI
General Manager Andina
Empaques Argentina S.A.
JAVIER URRUTIA
Legal Manager
ALEJANDRO VARGAS
Operations Manager
Industrial Manager
RODOLFO PEÑA
Market Manager
JULIO FIANDRO
Supply Chain and Logistics
Manager
SERGIO VENOSA
Ángel ALMADA
Information
Technology Manager
Public Affairs and
Community Manager
Commercial Manager
LEONARDO CALVETE
Quality Manager
María Teresa LLAMOSAS
Human Resources
Manager
CARLOS STUARDO
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 C h a p t e r
2
SUSTAINABLE VALUE
CREATION STRATEGY
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"Take care of ourselves now, think
about the future and our environment,
essential things to reflect on"
0
WE ARE
COCA-COLA ANDINA
2
SUSTAINABLE VALUE
CREATION STRATEGY
3
A TOTAL BEVERAGE
COMPANY
0
OUR VALUE
CHAIN, RESOURCE
MANAGEMENT
5
FLEXIBILITY AND
COMMITMENT
6
CORPORATE
GOVERNANCE
7
INFORMATION FOR
THE FINANCIAL
MARKET
8
OUR COMPANY
9
PRINCIPAL
METRICS
00
EXHIBITS
Market Environment
2020 was marked by an unprecedented event that affected the
planet: the COVID-19 global pandemic. We lived
challenging moments and every day we faced situations that,
although they were different from those we normally faced,
allowed us to confirm that in Coca-Cola Andina we have the
organizational culture, team and tools to adapt and overcome
them successfully: our values, flexibility and adaptability, the
commitment of our team and great leadership.
We focused our response to COVID-19 on three major axes:
Protecting collaborators and product safety
The safety of our collaborators, customers, consumers and products was our top priority. We
privileged the health and protection of our people by allowing more than 2,200 employees to
work from their homes. We implemented strict protocols for those with roles in operating areas,
who had to continue to attend their jobs. These were based on the recommendations of the
World Health Organization (WHO), the provisions issued by the health authorities of
each local government, as well as our advisers on the subject. We also actively cared for our
customers, providing protection elements to safely serve consumers.
Continue to serve our customers and consumers
Our production plants and distribution centers remained operating in all the territories of our
franchises during the year, complying with strict protocols and adapting the plans to each of the
local realities. Commercial teams remained connected and supporting customers, with solutions
tailored to new consumer demands. The main challenges in this regard were the support of the
on-premises channel, the most affected channel, and the accompaniment to the traditional
channel with different actions, such as increasing credit and helping them in the return to
business, when circumstances allowed. In addition, since local economies were greatly affected,
we gave a special boost to returnable packaging, which, in addition to providing affordability to
our consumers, represent a sustainable packaging that is in line with a circular economy.
0
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Business sustainability
We adapted business processes to ensure alignment with changes in the shopping habits and
lifestyle of our customers and consumers. An example of this is the growth and development of
digital channels and tools, such as "Mi Coca-Cola" in Chile and "Coca-Cola Store" in
Argentina, which have allowed us to better serve our consumers and customers in this new reality.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Strategic
Framework
To achieve our mission, at
Coca-Cola Andina we developed a
strategy that allows our stakeholders
to be given a profitable and sustainable
growth opportunity in the long term,
based on the integration of growth
and business sustainability pillars,
aligned with our vision and
organizational values.
Vision
Lead the beverage market
by being recognized for our
management of excellence,
people and welcoming culture.
Mission
Add value by growing in a
sustainable way, refreshing our
consumers and sharing moments
of optimism with our clients.
Values
Integrity, teamwork, attitude,
austerity, results-oriented,
customer focus.
C O L L ABORATORS
Work
environment
S
Community
S
T
N
LIE
C
C
C
C
T
AGILITY, FLEXIBILITY,
COMMITMENT
U
P
P
L
I
E
R
S
Water
management
Sustainable
packaging
MARKET
LEADERSHIP
VALUE CHAIN EFFICIENCY
AND PRODUCTIVITY
SUSTAINABLE VALUE
CREATION STRATEGY
Energy
management
R
E
G
U
L
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T
O
R
S
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N
D
G
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V
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M
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T
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Beverage
benefit
S
R
E
M
U
S
N
O
C
EXPANSION OF PORTFOLIO,
CHANNELS AND GEOGRAPHIES
BUSINESS GROW T H P I L L A R S
SUSTAINABILIT Y P I L L A R S
GOVERNANCE
EXCELLENCE
SHAREHOLDERS
Corporate
Governance
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Business
growth pillars
Market leadership
We work to lead the market
in which we operate,
maintaining growth of
our core business, and
accelerating development
of new categories, the
framework of strategic and
sound relationship with
our main partner,
The Coca-Cola Company.
The beverage business is
highly competitive in
each of the territories
where we operate.
We compete with
International, regional
and local brand bottlers.
We've been able to maintain
our position of leadership and
continued growth in all
the countries where we are
present.
We will go into detail about this growth
pillar in Chapter 3 "A Total beverage
company"
Broad portfolio,
geographies and
channels
We are concerned with
managing a broad portfolio and
develop several channels that
allow us to reach our customers
and consumers throughout the
territories where we operate.
Portfolio breadth
We are a Total Beverage
Company. We connect with
all our consumers in their
different consumption
habits and in different
moments of the day through
an extensive portfolio.
Consumer preferences in our
industry are changing, which
is a constant challenge to
which we give an agile and
flexible response:
• Developing and deepening
the low cal segment.
• Increasing our participation
in stills.
• Boosting the returnable
packaging segment.
• Incorporating new product
categories.
This broad portfolio also allows
us to maintain a diversified
income source in the different
product categories as well as
comprehensively satisfy the
needs of our customers.
Channel and geographies
breadth
We're the largest Coca-Cola
bottler in Chile and Argentina
and the third largest in Brazil,
in terms of sales volume. We
are also the only Coca-Cola
bottler in Paraguay. We
serve the different markets
in which we operate through
the traditional, supermarket,
wholesales and on premise
channels.
Additionally we reach our end
consumer through the various
digital platforms that we've
been developing. This
omnichannel, along with the
granularity of our traditional
channel, allows us to have
a diversified business, and
position ourselves as a relevant
player in the communities in
which we operate.
We will go into detail about this growth
pillar in Chapter 3 "A Total beverage
company"
Efficiency and
Productivity
in the value chain
We work to optimize
the sales, distribution and
production network, focused
on sustainable management
of our costs, as well as on the
constant search for greater
efficiency and productivity.
We continually improve
the supply chain through
productive investments
in the network of operations,
redesigning processes and
performing distribution
agreements to integrate new
beverage categories,
achieving improvements in
relevant indicators of our
value chain:
• Process efficiency.
• Efficiency in the use of
water.
• Efficiency in the use of
energy.
• Efficiency in waste
management.
We will go into detail about this growth
pillar in Chapter 4 "Our value chain"
Agility, flexibility
commitment
The resilience of the
Company and our
business, along with the
ability and flexibility of a
great team, were proven
more than ever this year in
the face of the COVID-19
pandemic, where we
focused on three axes:
• Enhancing flexibility
and commitment of our
collaborators.
• Deepening digital
transformation.
• Strengthening our
commitment to the
community.
We will go into detail about this growth
pillar in Chapter 5 "Flexibility and
commitment"
Corporate Governance
Excellence
The Company is led by
a management team of
excellence and with a vast
track record in the industry,
operating under strict and
robust Corporate
Governance standards.
Our Corporate Governance
management system allows
us to create value for all our
stakeholders, ensuring that
we act ethically and
responsibly in all our
operations.
We will go into detail about this growth
pillar in Chapter 6 “Corporate
Governance”
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0
3
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Materiality
and
relationship
with our
stakeholders
STAKEHOLDERS OF COCA-COLA ANDINA
The following chart shows our stakeholders with which we relate and
who have the ability to influence our strategy.
VALUE CHAIN
Performance management is critical to our long-term success, which is why we work in a
network and make our stakeholders participate. The way we manage our value chain reflects
our values and that vision is what allows us to create sustainable value for all of them.
The Coca-Cola Company (TCCC)
The Coca-Cola Company is our largest
Strategic partner, we have been working together
for over 70 years to create a more sustainable
future that will allow us to make a difference in
the lives of people, communities and our planet.
Suppliers of
raw materials and services
Raw material procurement
process (e.g. sugar, carbon gas,
concentrate, preforms, caps, etc.) and
procurement of services (e.g. energy,
water, maintenance, etc.).
Recyclers
They allow to return packaging to the
production chain and with this we are
managing circular economy.
Consumers
We reach the final consumer with our products
indirectly through our customers and directly
through digital platforms.
Collaborators
From the sales, production and
distribution processes, and
back office/staff/support areas.
0
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0
Note: For more details on communication channels with our stakeholders review the GRI Table of Contents.
Clients
Distributors
On premise (consumption on site, pubs,
restaurants, nightclubs, etc.).
Off premises (kiosks, self-service, supermarket,
wholesales, etc.)
This process includes logistics and
distribution of products to customers and
our distribution centers, through
third party fleet or own fleet.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 2020 Materiality Matrix
Cross-reference with the risk matrix
In the last year we witnessed changes
around the world, which forced us to
change the way we relate. In this
context we had to adapt our entire
value chain, to fulfill our day-to-day
work and meet expectations and
challenges we are facing, integrating
social and environmental priorities.
Our collaborators are the ones who
manufacture and distribute our products
to customers, who are the channel through
which our consumers access them.
Our materiality process concretizes the
issues that are relevant to our stakeholders:
how we get involved internally and
externally, how we allocate our resources
and how we adapt our strategy in
environmental, social, economic and
governance areas.
Permanently, through the sustainability
committees and the network they form, the
issues that are affecting stakeholders are
reviewed to identify them and ensure their
representativeness year by year, validating
whether there were variations in their
expectations.
Review
During this period, the materiality review
incorporated secondary source analysis,
including the financial materiality of the
Sustainability Accounting Standards Board
(SASB). It was reviewed by the Board of
Directors during session held
August 25, 2020.
The material issues were cross-referenced with the Company's risk matrix. This matrix is
defined for each of the countries in which we operate. This matrix contains the identified
individual specific risks.
Summarized materiality matrix
While issue prioritization evolved, the following material issues remain the most relevant and
important for our stakeholders and our business. Material issues were consolidated into
seven large groups, with sub-topics in each of them. These material issues were considered
when preparing this Integrated Report, to adequately respond to the interests of each group
and reflect our performance in each of them. The following matrix indicates the material
issues according to the importance they have for the interviewees.
4.0
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Water management
Corporate
governance
Beverage
benefits
Sustainable
packaging
Energy
management
Work
environment
Community, clients and
consumers
1.0
2.0
3.0
4.0
IMPORTANCE IN THE STRATEGY OF COCA-COLA ANDINA
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5
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Management Focus
Material issue
Why is it material?
Growth pillar
How we measure it
GOALS
Beverage benefits
• Product quality and excellence
• Product well-being
• Responsible marketing
Community
• Client development.
• Supplier development
• Economic and social development of
local communities
• Respecting Human Rights.
Sustainable Packaging
• Sustainable packaging and waste
management.
Water management
One of the concerns of people and
governments today is the healthy eating
habits of the communities; in this sense, the
decrease in sugar in our portfolio is a
relevant issue to manage.
Product quality and safety is an essential
aspect which has increased because of the
COVID-19 pandemic.
At Coca-Cola Andina we have the role of
contributing to the development of
communities, contributing to this
development with ethical and transparent
relationships with all our stakeholders.
COVID-19 has altered people's lives and
endangered global economy; aware of our
role in the production chain, we pursue
strengthening neighborhood stores that
will translate into growth of the most
vulnerable sectors.
Waste management and how this affects
the environment is a growing concern of
the people who inhabit the planet.
The impact generated by disposing
consumer products directly affects the
quality of life of living beings.
Coca-Cola Andina is part of the problem,
but also a proactive player in solutions,
using its greatest strengths to help
reverse the impact of packaging on the
environment.
Water is an essential resource for life,
access to this resource is a human right.
The effects of climate change also impact
water availability and as a result areas with
water stress grow. The pandemic
demonstrated the importance of access to
water for proper hygiene and disease
prevention.
Market
Leadership
Broad
portfolio,
geographies
and channels
Agility, Flexibility and
Commitment
Value Chain Efficiency
and Productivity
• Portfolio.
• Kilocalories sold on total liters sold.
• Light and sugar-free sales.
• Mix of channels and categories.
• Grow portfolio, to become a Total
Beverage Company.
• Grow portfolio, and sales of reduced
and sugar-free products.
SDG
3; 12
• Customer development.
• Customer satisfaction.
• Percentage of domestic suppliers
compared to total active suppliers.
• Percentage of suppliers evaluated in
Human Rights.
• Number of people benefiting from
social programs.
• Solid waste generation: grams of
waste per liter of beverage produced.
• Recycling of solid waste: percentage
of recycled waste on waste generated.
• Collection: tons of PET bottles
collected.
• Recycled resin: tons of recycled resin
compared to the total used.
• Returnable mix.
• Grow in the satisfaction of our
8; 11
customers.
• Reduce complaints from our
stakeholders.
Coca-Cola System, 2030 Goal:
12; 13; 15
• Collect and recycle 100% of the
packaging we sell.
• Have 100% recyclable packaging.
• Use at least 50% recycled resin
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6
• Efficiency in water consumption: the
amount of liters needed to produce one
liter of beverage.
Value Chain Efficiency
and Productivity
• Access to water: number of
beneficiaries.
• Water replenishment: Each project has
a third party that oversees it.
Coca-Cola System, 2020 Goal:
6; 13
• Improve water efficiency by at least 25%
compared to 2010.
• Replenish 100% of the water used in the
production of our beverages.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Material issue
Why is it material?
Growth pillar
How we measure it
GOALS
Energy management
Work environment
• Management of internal work climate
• Quality of life and development of
people
Corporate Governance
The efficient use of energy not
only generates economic benefits
for the Company, but also for the
community at large, as it makes a
scarce and public good resource
available. Therefore, all our
stakeholders have conveyed to us
their concern about the responsible
use of this resource and the active
protection of climate change.
Nothing great has been done in the
world without great passion and
teamwork, where the whole is greater
than the sum of the parts. We pursue
providing our employees with the best
place to work, convinced that job
happiness is fundamental to the
development of our activities, the
wellbeing of our people, economic growth
and, ultimately, the success of the
organization.
Our corporate governance system and
management become an essential part of
creating value not only for shareholders,
but for all of our stakeholders. This issue
is particularly important, as it is the
foundation on which the organizational
culture that allows good action is built.
Value Chain Efficiency
and Productivity
• Efficiency in energy consumption:
energy used (megajoules) for each
liter of beverage produced.
• Carbon dioxide equivalent
emissions. Scope 1; Scope 2 and
Scope 3.
• Emissions per packaging lifecycle.
2020 Goal: Unify measurement
methodology and count with certification
ODS
7; 13
• Internal work climate: biannual survey.
• Increase Company diversity with high
5; 8
Agility, Flexibility
and Commitment
commitment levels
• Employee turnover.
• Diversity.
• Succession plan.
• Training and formation by employee,
gender and category.
• Percentage of collaborators with
performance assessment.
• Occupational safety and health.
• Approval of audits.
• Average Board attendance to annual
16
• Investor relations metrics.
• Percentage of risk tolerance.
Board sessions above 80%
Governance Excellence
0
0
7
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
2020 GENERATED DISTRIBUTED
and
ECONOMIC VALUE
All figures expressed in CLP millions.
OTHER
STAKEHOLDERS
646,480,439
SUPPLIERS,
CONTRACTORS,
DISTRIBUTORS
0,550,030,090
TOTAL ECONOMIC
VALUE GENERATED
2,364,443,130
TOTAL ECONOMIC
VALUE DISTRIBUTED
2,196,511,929
RETAINED
ECONOMIC VALUE
067,930,000
GOVERNMENT
PAYMENTS
268,468,024
SALARIES
189,758,823
FIXED ASSETS
AND INTANGIBLE
ASSETS PURCHASES
86,082,847
DIVIDEND
PAYMENTS
99,985,500
SOCIAL
INVESTMENT
2,158,245
For further detail see GRI table on page 269
Corporate Tax Policy
We have updated our Corporate Tax
Policy that defines the tax objectives and
commitments of the Company and its
subsidiaries, its governance, control and risk
management, as well as the management
of the relationship with the different
stakeholders in tax matters.
This Policy is aligned with the business
strategy. It pursues supporting value creation
for our shareholders, strictly complying with
regulations, safeguarding that all decisions
are considered with the utmost diligence
and care, and ensuring that consideration is
given to corporate and social responsibilities,
pursuing not only the progress of the
Company, but also of employees, customers,
shareholders and the community as a whole,
so that the value we create in each of the
countries in which we operate translates and
corresponds in contribution to them, and thus
gain the trust and loyalty of our stakeholders.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Future
commitments
Our future vision is built on the growth
pillars of the business and responding to
each of our stakeholders. These pillars
are: market leadership, by capturing every
opportunity to generate value to our
customers with a service of excellence;
satisfy our consumers through a broad
portfolio; efficiently operate our network
of operations and logistics, reducing the
impact on the environment and
continuously investing in infrastructure
and process innovation. We pursue
building an inclusive, dynamic and agile
culture, with our collaborators as a
fundamental pillar, supporting the
communities in which we operate and
responding with maximum responsibility
to the demands of society and regulatory
agents, through a Corporate Governance
of excellence.
Market leadership and broad portfolio,
channels and geography
Efficiency and productivity
of the value chain
To build the business of the future we are
convinced, more than ever, that we must focus
on our customers and consumers, capturing
opportunities in present and future categories so
that our partners continue choosing us and our
value proposal anticipates and satisfies consumers.
We aspire to have a calorie-free version of all our
products, making available to our consumers
reduced or low sugar products, in order to
decrease the amount of calories per transaction.
We will continue to ensure the availability of
quality products and high service standards,
which we will measure by introducing a new
customer satisfaction indicator.
We reaffirm our commitment to developing
digital channels that enable us to deliver
our entire portfolio to consumers more
efficiently. We will work to transform our
Company into an organization with extensive
digital skills, with technology that allows
us to develop new and better ways to deliver
value to our customers and consumers, using
the information generated to know their
preferences, gain efficiency and thus
continue to generate positive financial results,
in the short, medium and long term.
Finally, as they arise, we will evaluate those
opportunities for inorganic growth that include
new franchises of The Coca-Cola Company, as
well as the incursion into new categories.
Sustainable packaging
• Reuse: We will continue to expand the
portfolio of returnable packaging, as it is the
friendliest packaging with the environment,
with the aim of keeping the solid sales
volume position compared to the rest of the
packaging in the operations of Argentina,
Chile and Paraguay. In Brazil, the goal is to
achieve a returnable packaging mix similar
to the rest of our operations.
• Recover and recycle: we will increase the
use of recycled resin in our PET bottles
(bottle to bottle), extending the scope to all
our operations. To do this, it is necessary
to work on the recovery of commercialized
bottles, so we will celebrate alliances
that bring together the necessary actors
according to each local reality, to drive the
recovery chain and introduce bottles with
less environmental impact to the market,
reducing the use of virgin resin. We will
also invest in equipment and management
systems dedicated to ensuring the quality
established by international standards and
by The Coca-Cola Company. We will
continue to support recycling projects in
each community, linking with the chain and
improving its operating conditions, working
in conjunction with other stakeholders,
NGOs and public bodies.
• Reduce: in containers and processes possible,
we will continue to implement reductions in
the amount of resin used (lightweighting)
and in the amount of waste generated,
respectively.
Water management
We invest in innovative technologies to use less
water in the processing of our products, with the
challenge of simultaneously increasing the
percentage of sales of returnable packaging,
which must be washed, in order to be reused. We
will carry out projects that allow effluent
treatments with the highest technology to be
able to reuse them in our processes, reducing
water extraction. We remain committed to the
final quality of our effluents, so that they allow
animal and plant life. We will train key teams in
water resource management, deepening awareness
of water responsibility.
Energy Management
We will manage our carbon footprint
reduction, implementing projects that
positively impact those most critical
processes, expanding the implementation of
clean energies for all our operations and
making investments in distribution fleets and
cold equipment that are more efficient in the
use of fuels and energy, respectively. We
will work on measuring our carbon footprint
from the lifecycle of the main packaging
commercialized, which will allow us to
communicate the results to customers and
consumers to empower them in their
purchasing decision
0
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9
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Agility, flexibility and commitment
Community
Work environment
We aspire to be an increasingly
connected Company with our consumers and
society as a whole, for which we must
be a reflection of society, aiming towards a
diverse work environment, with different views
and sensitivities. That is why, in terms of
diversity, we will continue to promote inclusion
programs in each of our operations,
as well as setting goals that challenge us
every year. We also want to keep the balance
between the professional and personal life
of our collaborators, so we will continue
maintaining and developing flexible work
policies and teleworking prompted by the
COVID-19 pandemic and which we extensively
implemented this year.
We are convinced of being a key actor
in the society in which we operate, not just by
managing our business in a responsible and
transparent way, but also by contributing
to the progress of people working with
us. We generate concrete benefits to
companies that provide us with products and
services and we are strategic partners of the
thousands of customers, whether large chains
or small nearby stores, which offer our
products to consumers.
We will continue with the same responsibility
and transparency, offering a value service and
contributing to the progress of
local economies. We also have an
important role to play in the recycling chain
and this will also be one of the strategic focus
to be promoted in the coming years,
along with continued support for
social assistance through donations and
collaborative work.
Corporate Governance Excellence
We will work to continue to be recognized
as a Company characterized by a robust and
excellent corporate governance, in line with
the best practices we identify in the market.
We will continue developing policies and
procedures to deliver timely and quality
information to our stakeholders, with regard
to the evolution of our businesses, as well as
the current and future view of the Company.
We will evaluate new communication
channels with the market, as well as online
tools to respond to information needs of
that audience. Our Investor Relations team
performs this work by following principles of
quality, equality, transparency and fluency.
We will actively engage with regulatory
bodies in discussions to develop ESG
management indicators and reports, that allow
benchmarking and the disclosure of good
practices in the financial market.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 C h a p t e r
A
3 TOTAL
BEVERAGE COMPANY
"In times of uncertainty we were able to reinvent ourselves and find ways to remain close"
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WE ARE
COCA-COLA ANDINA
0
SUSTAINABLE VALUE
CREATION STRATEGY
3
A TOTAL BEVERAGE
COMPANY
0
OUR VALUE
CHAIN, RESOURCE
MANAGEMENT
5
FLEXIBILITY AND
COMMITMENT
6
CORPORATE
GOVERNANCE
7
INFORMATION FOR
THE FINANCIAL
MARKET
8
OUR COMPANY
9
PRINCIPAL
METRICS
00
EXHIBITS
BEVERAGE BENEFITS
Product quality and excellence.
Product well-being.
Responsible marketing.
WHY IS IT MATERIAL?
One of the concerns of people and
governments today is the healthy eating
habits of the communities; in this sense, the
decrease in sugar in our portfolio is a
relevant issue to manage.
Product quality and safety is an essential
aspect which has increased because of the
COVID-19 pandemic.
GROWTH PILLAR
MARKET
LEADERSHIP
BROAD PORTFOLIO,
GEOGRAPHIES AND CHANNELS
SDG
MARKET LEADERSHIP
Relationship with The Coca-Cola Company
The Coca-Cola Company is our main strategic partner. We have been working together for over
70 years to create a sustainable future that allows us to make a difference in the lives of people,
communities and our planet. 96% of sales of Coca-Cola Andina are TCCC products, and we have the
franchise to market its products in part of Argentina, Chile and Brazil, and throughout Paraguay.
OWNER OF THE BRAND
MARKETING DEVELOPMENT
CONCENTRATE SUPPLIER
PORTFOLIO DEVELOPMENT
INVESTMENTS
SALE AND DISTRIBUTION
BEVERAGE PRODUCTION
EXECUTION OF MARKETING
CAMPAIGNS
INVESTMENTS
INFORMATION AND TRENDS
PORTFOLIO STRATEGY
EXECUTIOn PLANS
CLIMATE CHANGE
COMMITMENTS
At Coca-Cola Andina we work to lead the market in which we operate. To do this
we maintain the growth of our core business, soft drinks, and accelerate
the development of new categories, within the framework of a strategic relationship with
The Coca-Cola Company, the world leader in the beverage industry.
We collaborate on marketing, product development, technologies and value projects
shared in the communities where we operate, achieving significant synergies. In addition, the
Company provides us with an overview of consumer trends and preferences.
0
3
0
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At Coca-Cola Andina we have the ability
to maintain our position with leading
brands along with continuous growth in all
countries where we are present. In 2020, we
achieved a solid leadership position in the
markets which we operate in the majority of
categories where we participate:
SOFT DRINKS
leadership in
all markets.
WATERS
first position in Paraguay, second in
Chile and Argentina.
Market share and position
in the industry
This year we achieved great results in our
Coca-Cola brand:
Percentage on sales volume NARTD
Coca-Cola Trademark
66.6%
60.8%
2019
2020
67.8%
68.2%
2019
2020
57.3%
50.0%
2019
2020
07.0%
48.3%
0
61.5%
0
44.9%
Soft drinks
Juices and
Others
0
62.1%
0
51.4%
0
16.6%
Waters
3
20.3%
Soft drinks
Juices and
Others
Waters
0
65.2%
0
46.8%
0
39.7%
Soft drinks
Juices and
Others
Waters
0
76.5%
0
63.9%
0
51.7%
Responsible marketing
We have a responsible marketing policy
stipulating that advertising shall not be
addressed to children under the age of 12 for
any of the Company's products, it does not
hire advertising in media whose audience of
children under the age of 12 is higher than
35%, and it does not show children under 12
years old drinking any of the products without
the presence of a responsible adult.
We use Guideline Daily Amount (GDA)
labels, a tool for nutritional information
presented in tablets in product labelling.
In accordance with the global policy of
The Coca-Cola Company, all labels (except
glass and water) must contain GDA. We
present the amount of calories, along with
the percentage of the Daily Value (% DV), on
the front line of packaging, being consistent
with the commitment to provide consumers
with transparent nutritional information in
our products.
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3
3
In addition, a nutritional information panel
provides additional protein data,
carbohydrates, fiber and, when the product
contains them, minerals and vitamins. The
non-caloric sweeteners used in the Company’s
sugar-free soft drinks (light/zero) are safe for
the whole population, including children over
the age of two, pregnant and lactating women.
JUICES AND OTHERS
leaders in Argentina, Brazil and
in Paraguay.
Soft drinks
Juices and
Others
Waters
2019
2020
Argentina
Brazil
Chile
Paraguay
Coca-Cola Trademark considers all variants of the Coca-Cola
brand (Coca-Cola Regular, Coca-Cola Light/Liviana and
Coca-Cola Sin Azúcar).
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Broad portfolio, geographies channels
and
Broad portfolio: we care about managing a broad portfolio, that allows us to connect with all consumers during any time of the day.
FUN MEALS
HEALTHY MEALS
ENERGY AND HYDRATION ON THE GO
RELAXING AT HOME
0
3
0
HEALTHY BREAKFAST
WORK / SCHOOL BREAKS
COMFORTING MEALS
SNACK TIME
PHYSICAL RECOVERY
SOCIALIZING
This portfolio breadth, in addition to adapting to consumers
preferences, allows us to maintain business diversification:
76% of volume comes from soft drinks, while the remaining
24% comes from a combination of juices, water, energy drinks,
sports drinks, beer and spirits.
TOTAL SALES VOLUME
4%
9%
11%
Soft drinks
Waters
Juices and other non-alcoholic
beverages
76%
Beers and other alcoholic
beverages
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Our management
Changing consumer preferences
in our industry are a constant challenge
to which we are responding in an
agile and flexible way with a portfolio that
has the following strategic focuses:
Grow in the low-cal segment
One of the Company's concerns is the amount of calories and sugar contained in our beverages.
In response, we strengthened the light or zero versions of our brands, expanding the packaging
portfolio in which they are available. In addition, through reformulations, we have reduced the
amount of sugar in different brands of soft drinks and juices.
These efforts are reflected in the increase in the percentage of consumption of our sugar-free and
sugar reduced beverages in terms of total portfolio from 2010 onwards.
Grow in the
low cal segment.
Percentage of low or reduced sugar beverages (over NARTD)
50%
Increase our share in stills.
9%
11%
29%
25%
21%
24%
11%
2010
2020
2010
2020
2010
2020
2010
2020
Continue incorporating
new categories.
Note: low + mid cal (less than 5 gr of sugar/100 ml) over NARTD.
Argentina
Brazil
Chile
Paraguay
KCAL/LITER SOLD
371.8
382.7
315.4
320.5
Continue boosting returnable
packaging segment.
367.4
333.3
276.2
218.3
Offer products of the highest quality,
ensuring their safety.
2016
2020
2016
2020
2016
2020
2016
2020
*This segment includes all non-alcoholic beverages excluding
soft drinks.
Argentina
Brazil
Chile
Paraguay
0
3
5
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Increase our market share in stills
Another trend that we boost up successfully is the growing preference in the consumption of the
stills categories, such as water, energy drinks, isotonic drinks and juices. The constant launch of
new products together with a strong market execution strategy enabled a significant growth in
this category compared to the total portfolio since 2010.
Percentage of volume for stills regarding total NARTD
% volume for stills on NARTD
Argentina
Brazil
Chile
Paraguay
0000
0000
0000
0000
0000
0000
0000
0000
NARDT VOLUME (M UC)
005.0
066.7
000.5
000.0
050.6
006.5
55.0
66.0
% SOFT DRINKS MIX ON NARTD
96%
87%
96%
85%
% STILLS MIX ON NARTD
0%
03%
0%
05%
87%
03%
70%
06%
95%
5%
83%
07%
For Paraguay 2010 data, the analysis of Embotelladoras Coca-Cola Polar S.A. was used as a source of information.
Continue incorporating new categories
We are a Total Beverage Company whose
aim is to provide its consumers with a full
offer of hydration options. To do this we
are expanding our portfolio, to deliver a
combination of more varied products through
partnerships with other beverage companies.
To this end, in 2018 we started
commercializing and distributing alcoholic
beverages in Chile's operation, incorporating
the entire line of Diageo and Capel products
into our portfolio in 2019.
This year, also in Chile, we reinforced our
portfolio with the signing of an agreement for
five years with AB InBev (former Cervecería
Chile S.A.) to distribute its brands: Corona,
Stella Artois, Budweiser, Becker, Báltica
Cusqueña, Kilómetro 24.7 and Quilmes
The agreement relates to our decision
to be a total beverage company, and we
followed this path just as we did with
Diageo and Capel. It will allow us
to lower costs and strengthen our
competitive position in the market.
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Miguel Ángel Peirano Serrano
Chief Executive Officer
“
”
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Continue boosting returnable
packaging segment
Growing consumer concern for the increase
in the use of plastic packaging and the
environmental consequences it produces,
challenges companies to generate sustainable
solutions for this problem.
Together with The Coca-Coca Company we
have firm commitment to managing with
focus and energy the goal to drastically reduce
energy impact of packaging waste in the
environment, through the program
World Without Waste. That's why, within
our broad portfolio we particularly boosted
the growth of returnable packaging, as it
is the most circular container and the one
chosen by consumers who are more aware of
the care of the environment.
Leveraging our trading strategy and
innovations - such as the "single bottle" for
portfolio expansion-, we have a solid
position on returnables. In addition, we lead
world rankings in percentage of sales of this
format, in which we also grew significantly in
the last year.
Percentage of sales in returnable
packaging on NARTD volume
47.5%
00.3%
2019
2020
00.0%
24.2%
2019
2020
36.3%
33.9%
2019
2020
37.5%
40.0%
2019
2020
Argentina
Brazil
Chile
Paraguay
Single bottle
It is much more than a container, because it
is a returnable bottle - pet or glass – that uses
less plastic with a same design for all varieties
of flavors, and it's 100% recyclable. In 2020
we invested USD 32.8 million in bottles and
cases in order to speed up the replacement
of returnable plastic bottles, as part of our
expectations to significantly increase reusable
packaging by 2030. This project delivers
benefits such as efficiency, savings and
flexibility, significantly decreasing washing,
filling, reverse logistic costs and reducing
carbon emissions, which is directly aligned
with our strategy.
“
”
The single bottle is a great facilitator for
several reasons. First, it reduces bottle
sorting times; second, we can now label the
bottle and communicate a lot of things there.
And finally, it made the launch of other
flavors easier for us.
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Rodrigo Klee
Operations Manager
Coca-Cola Andina Brasil
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Offer products of the highest quality,
ensuring their safety.
With our portfolio we pursue offering options
for a healthy lifestyle and to achieve it, we
work both on diversity and on the quality and
safety of our products. The good health of the
population is directly related to food; in that
sense, we want to offer products of excellence.
The culture of food safety was reinforced this
year, as the COVID-19 pandemic reminded us
how important individual responsibility is, as well
as safe environments for handling food. In this
regard, strict circulation sectors were established
with requirements for each depending on the risk
of cross-contamination disclosed by the experts
with whom we consulted.
Sensory analysis program: is a method used
to measure, analyze and interpret responses
on how food is perceived through the senses.
Sensory analysis consists of evaluating the
organoleptic properties of products - that
is, everything that can be perceived by
the senses - and thus determining their
acceptance by the consumer.
All bottlers of the Coca-Cola system have
implemented a sensory analysis program
that promotes the voluntary participation of
collaborators. It is used in the development
of new products, as well as in traditional
products; it is a method that collaborates
with quality measurement as part of the pre-
commercialization validation process.
In recent years, measurement through this
program has become increasingly relevant
for those products that are reformulated,
ensuring sensory quality in ingredient
substitution. Panelists are a key link, who are
permanently trained so that their senses can
detect deviations.
The quality and excellence of our products
are key aspects of the processes, which are
constantly being perfected and are subject
to audits to deliver our offer to consumers in
perfect conditions.
Number of trained panelists
067
171
000
2018
079
83
2018
2019
038
80
105
2020
133
2018
2019
2020
70
60
70
2018
2019
2020
Argentina
Brazil
Chile
Paraguay
ISO 9000 QUALITY
ISO 00000 ENVIRONMENT
OSHAS 08000 (or 05000)
HEALTH AND SAFETY
FSSC00 FOOD SAFETY
THE COCA-COLA COMPANY
CORPORATE REQUIREMENTS,
GAO
BEHAVIOR-BASED SAFETY
KORE system and certifications: each bottler has a quality management system that responds
to the most demanding regulations both voluntary and mandatory. As part of The Coca-Cola
System, we are audited with specific standards for bottlers through a program developed by The
Coca-Cola Company for our activity (KORE), which incorporates standards and requirements
that go beyond the scope of ISO certifications.
2019
2020
Argentina
Brazil
Chile
Paraguay
Certifications
0
3
8
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Channel amplitude
SALES VOLUME BY CHANNEL
CLIENTS BY CHANNEL
Capturing growth opportunities requires
not only a broad and robust portfolio, but
also accessible to consumers at all times of
consumption. To do this, we have more than
274,000 customers, distributed in different
sales channels and efficiently served by our
distribution chain.
Argentina
Brazil
Chile
Paraguay
36%
36%
23%
4%
34%
22%
33%
12%
52%
13%
24%
11%
42%
36%
12%
9%
1,094
1,945
127
1,901
284
583
1,055
463
13,692
39,473
15,341
15,148
47,831
45,467
48,218
41,471
Customers are a fundamental link in
our value chain; 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 and the satisfaction of our consumers,
which is reflected in the claims’ indicator. In
2020, ratio increases due to the decline in
sales volume.
CONSUMER CLAIMS
0
3
9
3.9
0.9
0.5
2018
2019
2020
0.7
0.6
4.6
2018
2019
2020
8.5
7.5
6.8
2018
2019
2020
0.5
0.0
0.3
2018
2019
2020
Traditional (Mom & Pops)
Wholesale
Supermarkets
On-premise
Argentina
Brazil
Chile
Paraguay
Note: definition of KPI claims (Operating claims/No. operating
claims*1,000,000/Bottles Sold).
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 In Brazil, 100% of our orders are paid by
means of a ticket, which the customer pays
with different means, such as bank transfers,
card or digitally, with only 20% of physical
payments at the payment entity.
In Paraguay, postnet equipment was included
in the trucks, giving our customers the
possibility to pay by debit and credit card.
Argentina implemented its own payment
solution, integrating and developing products
with financial-technological suppliers. To
this end, partnerships were made with the
banking sector, non-banking collection agents,
debit and credit card processors, as well as
industry-leading FinTech companies, such as
MercadoPago, which account for more than
65% of transactions.
During 2020, 100% of Argentina's locations
were covered, training both customers
and freighters and collaborators increasing
coverage and use penetration. We accumulated
more than 44,000 transactions, achieving an
average of 2,400 monthly user customers and
collecting over USD 22 million, representing
10% of the collection of direct sales customers.
0
0
0
Customer and consumer development
We pursue accompanying customer
development with programs and initiatives
that enhance their results and adapt to the new
needs of consumer interactions; in the context
of the pandemic, in 2020 we gave greater
impetus to our Digital Transformation Agenda,
achieving exceptional results.
"This digital transformation path is
enabling us to take significant leaps through
the implementation of concrete products that
improve the experience of our customers
and consumers, and accelerate value capture
in the new digital world. At Coca-Cola
Andina, innovation and growth are the key
pillars of our business."
“
”
Micoca-cola.cl
It is currently the leading e-Commerce in
sales and service of the Coca-Cola system in
the world. It was developed in conjunction
with Vtex and Ecomsur, with the aim of
allowing our consumers to buy and receive
directly at their homes the complete portfolio
of products commercialized by
Coca-Cola Andina with a memorable
customer experience. Digital sales had been
on the rise before, but with the mobility
restrictions because of the pandemic, sales
through this channel during the year increased
six-times, maintaining a service level of
excellence, already representing 2% of the
Company's sales in the Metropolitan Region.
KOBoos
It is a chatbot solution within WhatsApp
for sales and services to our customers, where
they themselves can self-manage their orders
in a simple and intuitive way, guided by a bot.
The solution was developed by The Coca-Cola
Company and integrated into our systems
ensuring omnichannel for customers.
It is currently operational in Rio de Janeiro
and Espírito Santo, where there are 3,325
registered customers of whom 1,805 buy
regularly. We are in the process of expanding
to more customers in Brazil and to the
territories of Chile, Paraguay and Argentina.
Martín Idígoras
Chief Information Technology Officer
For more information, we will go into more
detail on digital transformation strategy in
Chapter 5 "Flexibility and Commitment"
Main digitalization initiatives
0
DIGITAL
CLIENT
DIGITALIZATION
OF OUR
BUSINESS
3
INTERNAL DIGITAL
PROCESSES
0
DIGITAL
CONSUMER
Mi Coca-Cola Customers
During 2020 we continued to work on Mi
Coca-Cola, our B2B (Business to Business)
solution, which responds to the different needs
that our customers have, generating a direct
communication and self-management channel
for them. Some of the most relevant features are
discounts, contests, payments, notifications and
news, savings and traceability of orders. All this
content is available in a personalized and real-time
way for each of the customers.
Today the largest deployment of this solution
is in Argentina, where more than 45,000
customers are registered (71% of the roster). Of
these, 25,000 use it frequently.
Currently we are working hard to integrate
the shopping cart for the four operations of
Coca-Cola Andina, so that all customers can
self-manage their orders.
Digital payments
It is one of the strategic axes of Andina that is
aimed at sustainably digitizing our collection
systems. Payment solutions are aimed at
providing an innovative and quality service
that adds value to our customers, freighters,
transportation companies as well as internal
users by applying more efficient and automated
processes. The focus is on providing greater
physical, monetary and health security to
the collection process through a set of digital
payment methods, contributing to the digital
development of the value chain, actively
collaborating in financial inclusion.
During 2020, Chile established a gateway
solution that allows to concentrate several
means of payments and current and future
operators, making a wide range of alternatives
available to customers to make payments via
debit card, credit card, and bank transfers.
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Coca-Cola Andina has a vast presence in
Latin America. We are the largest Coca-Cola
bottler in Chile and Argentina and the third
largest in Brazil, in each case in terms of sales
volume. We are also the only Coca-Cola
bottler in Paraguay. This allows us to diversify
our sources of volume, revenue and EBITDA.
Our franchises have strong expansion
potential, especially in Brazil, Argentina
and Paraguay, countries that have per capita
beverage consumption rates with significant
growth opportunities.
TOTAL ANNUAL PER CAPITA CONSUMPTION
8 OZ BOTTLES
Soft drinks
Waters
19.0
18.1
21.3
250.0
209.7
181.9
360.6
88.0
Juices and other non-alcoholic beverages
16.0
16.7
16.2
Beer and other alcoholic beverages
23.4
18.1
48.7
71.0
EBITDA DISTRIBUTION
Paraguay
14%
Chile
40%
Argentina
14%
Brazil
33%
0
0
0
Argentina
Brazil
Chile
Paraguay
Note: Totals may not add up due to rounding.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 C h a p t e r
"With your effort and mine, we have been
able to overcome difficulties; allowing us to
fulfill the needs of our customers."
4 VALUE
CHAIN
Our
0
0
0
0
WE ARE
COCA-COLA ANDINA
0
SUSTAINABLE VALUE
CREATION STRATEGY
3
A TOTAL BEVERAGE
COMPANY
0
OUR VALUE
CHAIN, RESOURCE
MANAGEMENT
5
FLEXIBILITY AND
COMMITMENT
6
CORPORATE
GOVERNANCE
7
INFORMATION FOR
THE FINANCIAL
MARKET
8
OUR COMPANY
9
PRINCIPAL
METRICS
00
EXHIBITS
EFFICIENCY
and
PRODUCTIVITY
VALUE
of the
CHAIN
WATER MANAGEMENT
CONTEXT
We are aware that water is a shared resource
with the communities, and we seek, therefore,
to promote its care in our productive tasks,
developing processes and investing in
technological improvements that allow us a
greater efficiency in its consumption, safe reuse
and adequate effluent treatment. In addition,
we are strongly committed to replenish the
usage to the community. We are involved
and in charge of collaborating and working
together with the stakeholders with whom
we interact with, about the knowledge and
development of a cultural and environmental
awareness regarding the importance of the
care for water.
WATER MANAGEMENT
WHY IS IT MATERIAL?
Water is an essential resource for life, and access
to this resource is a human right. The effects of
climate change are also impacting water availability
and as a result water stress zones are growing. The
COVID-19 pandemic made evident the importance
of access to water for adequate hygiene and
prevention of diseases.
GROWTH PILLAR
EFFICIENCY AND PRODUCTIVITY OF THE VALUE CHAIN
SDG
Water consumption (m3)
WATER SOURCE
GROUNDWATER
5,009,830
NETWORK
978,097
We approach this important issue with full
attention, reaching each of our Operations
and communities with which we interact.
However, we do it locally, since each operation
has a different reality regarding the origin of
the resource, its scarcity and quality, as well as
the quantity consumed per liter of soft drinks
produced, which varies according to the formats
manufactured and available technology.
INTERNALLY TREATED
EFFLUENT
83,097
Water source
3.9%
80,808
m3
4.5%
83,097
m3
12.6%
050,360
m3
100%
668,600
m3
SURFACE
386,800
RAIN
396
Total
6,698,362
PRODUCTION PROCESS
96.1%
0,083,350
m3
20.7%
386,800
m3
34.4%
600,900
m3
40.4%
750,700
m3
87.4%
0,703,037
m3
BEVERAGES
3,593,503
AUXILIARY SERVICES
3,000,808
Argentina
Brazil
Chile
Paraguay
Groundwater
Network
Surface
Internally treated effluent
0
0
3
Total
6,698,362
EFFLUENT DISCHARGE
OWN TREATMENT
0,006,007
THIRD-PARTY
TREATMENT
939,393
Total
3,185,800
Effluent Treatment (% of total)
Argentina
3%
Brazil
Chile
Paraguay
88%
97%
100%
12%
100%
Note: two of the 10 plants are located in water stress zones.
Own Plants
Third-Party Plants
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 OUR MANAGEMENT
We have a strategy that has four focal points:
reduce, reuse, recycle and replenish.
Reduce: place all efforts into improving water
quality with technology and innovation; reduce
losses in the production and washing processes;
train and create awareness throughout the value
chain about the care of this resource.
Reuse: improve the production process
technology for the safe reuse of water.
Recycle:
suitable for animal and plant life to nature.
treat effluents to return water
Replenish: return the resource used in our
beverages by:
• Conservation projects that improve natural
infiltration of water.
• Care for underground aquifers.
• Access to consumption of safe water by
people who lack safe water.
At Coca-Cola Andina we are concerned
about using our main raw material, water,
responsibly, based on a comprehensive
strategy that reaches each of the Operations
and the communities with which we interact;
and that focuses on four processes: reduce,
reuse, recycle and replenish.
An important part of our leadership is linked
to our use of water, the prime raw material
of our products. The Company’s efforts are
aimed at ensuring the sustainability of the
resource both in its availability as well as in
its quality, being always responsible with the
environment that surrounds us.
The strategy of Coca-Cola Andina is to be
present with plans that contribute to the entire
chain of this resource, take care of the sources
of origin, be efficient in the use and treatment
of effluents with the best technology available.
The definition of efficient use of water is
precisely to use the amount of water that is
needed to make the product.
In this sense, each operation has the
obligation to use only the amount of water on
which it has registered rights and according
to the regulatory framework of each country.
The water source is diverse: some plants
feed on natural effluents (whether they take
water from open channels or well water) but
also from the local sanitary matrix. In Chile
and Argentina almost all the water used
in operations is underground and a small
percentage comes from municipal networks
of the locations where the plants are located.
Coca-Cola Andina Brazil supplies itself
mostly with municipal network and through
wells; while in Paraguay the operations obtain
water from underground water, and a small
portion is obtained by collecting rainwater.
In Chile, the main actions and tools are
aimed at monitoring water stress and water-
related risks, to know in which areas risks
exist or will appear in the future.
“In Coca-Cola Andina Chile we are ready to
improve and reduce our consumption. Today
we have four wells for the extraction of water
and a much more flexible and robust internal
network. Additionally, we are completing the
drilling of a sampling of wells that allow us to
take water samples and analyze the quantity
and quality of water to evaluate eventual
contamination”, said Alejandro Vargas,
Industrial Manager, Coca-Cola Andina Chile.
“In terms of water management, since 2015
we have been steadily decreasing water
consumption per liter of beverage produced. In
2018 we consumed 2.3 liters of water per liter
of beverage, in 2021 we should reach 2.06 liters
and in 2022, 1.8. In four years, we will reduce
water consumption by almost 23% for the same
volume of production”, he added.
In this sense, one of the great advances of
Coca-Cola Andina Chile during 2020 was
the decrease in water consumption in the
Returnables category, in a year where the sale of
these containers increased considerably amidst
the pandemic and in an operation where 47%
of the sales volume is returnable packaging.
Thus, the monthly ratio ended with a water
consumption per liter of beverage produced
below 2 liters.
Key actions and investments
During 2020, the main actions to reduce water
consumption were centered on: changing
nanofiltration membrane plants and operational
control adjustment to reduce backwash cycles
in batches, minimizing water rejection;
improve washing conditions to optimize their
operation and water consumption per volume
of washed bottle; generate a control board
with consumption targets by areas and uses,
monitoring and defining improvement actions
on a weekly basis; adjust optimal flow rates in
CIP processes (clean-in-place) and train the
employees of the Antofagasta plant for the
selective use of the osmosis plant based on the
quality of water intake.
With the same objective, Coca-Cola Andina
Chile invested in a remote monitoring system
for flow meters for online management;
in the implementation of a water recovery
system in Line 10 and in the decrease of the
osmosis plant rejections based on improved
quality of water intake (desalinated drinking
water) in Antofagasta.
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0
0
Finally, in 2020 all plants in Chile guaranteed
the treatment of their effluents so that they can
then be disposed of ensuring aquatic life. In the
operations of Antofagasta and Punta Arenas this
task was carried out through its own treatment
plants and in the operation of Renca through the
company EcoRiles S.A., the largest industrial
wastewater treatment operator in Chile.
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Total
REUSE
Our key indicators
Reused water (m3)
515,799
286,488
221,342
Reduce
Our key indicators
• By the end of 2020 we have improved
water-use efficiency in Operations by 5.3%.
• The 2020 target was 1.89 lt/lt, reaching
1.86 lt/lt.
• With this progress, the operations of Brazil
stood out, with a reduction of 8.8%; Chile,
with 6.8% and Paraguay, with 2.5%.
Liters of water/liter of beverage produced
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
2019
0.30
0.50
0.06
0.85
1.96
2020
0.33
0.39
0.00
0.80
1.86
Initiative: technology and management
All our Operations make continuous efforts
to improve processes and make them more
efficient. Some of the main initiatives that
result in a reduction in water consumption
are as follows:
• Changes in filtration equipment
membranes.
• Improvements of the bottle and cases
washing machine equipment.
• Use of new technologies; for example,
adiabatic cooling towers that significantly
save water and energy.
• Exhaustive loss and volume control in
processes such as CIP (clean-in-place).
• Independent and automated control panels.
Note: Renca plant has a ratio of 2.13 lt/lt and Antofagasta plant a ratio of
1.82 lt/lt. Both plants are in water stress zones.
• Training and incentives for key teams.
2018
2019
2020
We promote a culture of austerity and care for
resources; in this sense, water management
is our greatest challenge both inside and
outside productive plants. We will continue to
incorporate technology and digitalization into
key processes to monitor consumption, as well as
seek to capture more water from runoff and rain.
“
”
The production team deserves double merit
because during 2020, notwithstanding
growth of returnables, we have managed
to lower the consumption of water per liter
produced compared to last year. We should take
into account that our objective of growing in
returnable packaging is detrimental to our
water footprint; nevertheless, we managed to
lower our water ratio.
Alejandro Vargas
Industrial Manager
Coca-Cola Andina Chile
Initiative: efficiency without barriers
Paraguay
In our operation in Paraguay, we get water from
wells, from where we extract it to treat it and then
use it in different processes. Annually, efforts to
reduce consumption have shown a steady drop in
the water use ratio, thus meeting the objectives
and challenging the technological barriers of the
plant. In addition, the production mix of this
Operation has a strong growth in returnable
packaging, which makes water consumption
reductions even more complex.
The focus in recent years has been on those
sectors with the greatest opportunities, such as
treated water (water intended to make beverages)
and rinsing water (washing returnable bottles).
Since 2017, investments have been made in
water efficient packaging washing machines,
where they have been progressively installed in
the three lines of glass returnables. These water
efficient machines consist of automatic flow rate
control, programming of parameters by type of
packaging, thus achieving significant savings and
avoiding human errors.
The operators and supervisors of the washing
machines were decisive for the implementation
of the controllers, since there were modifications
within the equipment, as well as changes in the
tasks that were carried out; in this way we were
able to modernize the skills of the collaborators.
In addition, this past year, the case washing
machines were completely reviewed, water pipes,
steam pipes, input and output sensors were
changed to control the water supply; in addition,
water recovered from the bottle washing machine
started to be used.
All these learnings made possible the installation
of recovered water tanks to avoid their disposal
and increase their use, for example in cleaning
floors and forklifts, among others. We will
continue to invest to monitor flows and increase
water uses prior to disposal.
0
0
5
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RECYCLE
Initiative: Excellence in
effluent treatment
Brazil
In our plant at Jacarepaguá, Brazil, the
project of reuse of effluent water was achieved
thanks to the dedication of a team passionate
about the environment. The objective is to
use the treated industrial effluent as input for
the water recovery station, reducing water
consumption of the public network and the
associated costs. The quality of the water
obtained allows to expand its uses; currently
it is applied to cooling towers, but we are
moving forward with the necessary approvals
to apply it in other industrial processes. The
installation of a reusable effluent treatment
system involved an investment of BRL 2
million, with a return of one year, and allows
to treat an average volume of 300 m3/day.
The benefits of the project were reflected in
the water use indicator, which in one year
went from 1.53 to 1.45 liters consumed/liters
produced; as well as in the costs associated
with network water use, which were reduced
by 15% the previous year.
The Company is making great efforts in water
management efficiency and we are proud to have
initiatives at the global level. The next challenges
will be to expand the reuse system both in its
capacity and in its validation for new uses.
Replenish
Water Conservation Project
Reserva Mbaracayu
Paraguay
The Mbaracayu Reserve Biosphere Water
Conservation Project in its fourth year of
implementation, funded by the Coca-Cola
Foundation and implemented by the Moisés
Bertoni Foundation and Avina Foundation,
managed to reach its goal of 300 small
producers, favoring the infiltration of
groundwater sources through the method
of direct sowing in 300 hectares, recovering
productive land for producers and their
families. 2021 will be a year of transition and
closure of this project, in which metrics and
results will be obtained.
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0
6
Agua Segura Project
Argentina
Water Quality
Brazil
At the Duque de Caxias plant we continued
with the forest replacement project for
the permanent preservation areas of the
Taquara River; we monitored the water
quality of the Taquara River and the
vegetation surrounding the property, in
order to identify the potential risks of
deforestation and invasions in the region,
and we actively participate in the Guanabara
Bay Basin Committee. We also participate
in the Jacarepaguá Lagoon and Pardo River
watershed committees, all related to each of
our plants operating in Brazil.
This year we continue the alliance with The
Coca-Cola Company and the Safe Water
Project, with two initiatives that seek to give
access to water and incorporate the perspective
of the pandemic. The first is the national
program "Active Hygiene" whose objective
is to train leaders in vulnerable communities
as to good hygiene practices and disease
prevention. In this context we bring tools to
more than 23,000 people in 15 provinces of
the country, to access safe water using filters
already installed in previous years; we also
managed to install new filters in territories
where there was still no access to water.
The second project continues with the
achievements of 2019, this year installing
30 more filters in towns in the provinces of
Entre Ríos and Neuquén. The goal is to get
each institution to appropriate the technology
implemented through its use and care. The
filters used are with Lifestraw technology
consisting of an ultra-filtration system that
has been defined by the WHO as the highest
technology for water treatment.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 EFFICIENCY
and
PRODUCTIVITY
VALUE
of the
CHAIN
SUSTAINABLE PACKAGING
Sustainable packaging and waste management
WHY IS IT MATERIAL?
Waste management and how it affects the
environment is a growing concern of the people
who inhabit the planet. The impact generated by
the disposal of consumer products directly affects
the quality of life of human beings. Coca-Cola
Andina is part of the problem, but is also a
proactive actor in the solutions, making use of its
greatest strengths to contribute to reversing the
impact of packaging on the environment.
GROWTH PILLAR
EFFICIENCY AND PRODUCTIVITY OF THE VALUE CHAIN
SDG
SUSTAINABLE PACKAGING
Our management
Context
Climate change is one of the major challenges of
this century. Among the main factors explaining
climate change, aside from an increase of
emissions, waste management and pollution
from plastic packaging stands out. As a beverage
company we are aware of the great responsibility
we have on these issues, so we have accelerated
initiatives such as weight reduction of our
bottles, development of returnable bottles and
recycling programs, among others.
For more information, please visit the Global
Commitment for New Plastics Economy led
by the Ellen MacArthur Foundation.
As part of the Coca-Cola system, we share our
commitment with the World Without Waste
(WWW) initiative. To do this, we have a strategy
that has four main focal points: reduce, reuse,
recycle and recover.
Reuse:
Maintain our strong position
in returnable packaging
sales mix.
Recycle:
WWW commitment: 100%
recyclable packaging by 2025 and
use at least 50% recycled material in
packaging by 2030.
Replenish:
WWW commitment: recollect
and recycle 100% of our
packaging by 2030.
Reduce:
Continue the lightweighting
implementation of our bottles.
Reuse:
Awareness about caring for the environment
grows daily. That is why more and more citizens
are demanding that packaging be reusable.
Returnable packaging is very environmentally
friendly because in terms of carbon emissions,
water footprint and waste impact, it has a
better performance with respect to glass and
disposable plastic.
We have carried out studies that compare
the main packaging (returnable, disposable
PET and glass) to identify its impacts on the
environment at each stage of its life cycle,
starting from the raw material, distribution
and recovery, until its destination as waste
(regardless of recycling). Returnable plastic
bottles are an excellent solution, because of
their multiple uses (more than 12), and their
lightweight material guarantee low impact
logistics, where the end of its lifespan is
within our plants, achieving close to 100%
recycling effectiveness.
Returnable packaging is a central element of
The Coca-Cola Company’s strategy through
the World Without Waste project. At
Coca-Cola Andina we are a world benchmark in
the sales mix of this packaging over total sales.
We take a closer look at this strategic focus in Chapter 3 "A Total
Beverage Company."
Investments in containers and packaging
(MUSD)
Argentina
Brazil
Chile
Paraguay
0008
00.0
6.9
06.9
6.9
0009
6.7
8.6
06.0
0.9
0000
9.0
7.0
00.5
0.0
0
0
7
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RECYCLE AND REPLENISH
Replacing virgin resin with recycled resin is
an all-year challenge that not only implies the
development of a Recyclers chain, providers
and competitive price agreements, but also the
commitment from all of society.
As members of the Coca-Cola System, we
encourage our packaging to be recycled,
increasing the percentage of recycled
resin in our plastic packaging, which
subsequently enhances its recovery for the
correct transformation into recycled food
grade resin. This was a challenging year in
terms of recovery, because of the oil price
drop, the price of recycled resin became very
uncompetitive. The COVID-19 pandemic
also limited the collectors operation,
whose job is to look for or receive waste for
conditioning and later recycling.
Recycled Resin (tons)
Post-Consumption Recovery (tons)
Argentina
Argentina
0,003
0,009
997
500
50
2018
2019
2020
2019
2020
Brazil
Brazil *
3,371
7,734
6,006
880
308
2018
2019
2020
2019
2020
Chile
967
Paraguay
50
2019
2020
41
03
2019
2020
(*) in Brazil PET tons also includes cans
0
0
8
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Strategic Alliance
Brazil
While at global level the pandemic makes
the importance of strengthening the
sustainability work more evident, at
Coca-Cola Andina we continue to work
towards the commitment to drastically
reduce the impact of containers and
packaging disposal on the environment.
In all the Operations in which we are present,
the care of natural resources is a key issue
for our stakeholders and that is why we deal
with the entire life cycle of the products we
commercialize based on four pillars: reduce,
reuse, recover and recycle.
In Coca-Cola Andina Brazil, for example,
legislation requires companies to collect 22%
of the primary and secondary packaging they
place on the market (PET plastic bottles,
lids, and labels). This added to the ongoing
effort to preserve the environment led the
Company in 2020, to design a robust waste
collection plan from which 500 tons of plastic
waste are collected per month, with which
then PET Post-consumption Recycled Resin
(R-PET) is manufactured.
The plan works in conjunction with
suppliers of resin and preform who work in
the recycling process of PET bottles and
manufacturing of R-PET resin.
Currently Coca-Cola Andina Brazil
places containers that have R-PET in the
market, and the target set for 2025 was that
at least 50% of the material used for the
manufacturing of bottles should come from
recycled PET.
Additionally, there is an agreement for the
year 2021 in which Coca-Cola Andina Brazil
commits to recover 650 tons of plastic waste
and the supplier, as a counterpart, plans to
invest in new preforms, including the lightest
bottle of mineral water on the country's market.
Consisting of 10-gram containers, that facilitate
its post-consumption reduction, occupying less
space in waste containers and, consequently,
optimizing transportation.
According to Rodrigo Klee, Industrial
Director of Coca-Cola Andina Brazil,
"Coca-Cola Andina’s great ambition is to
collect and recycle the equivalent of 100% of the
containers that it commercializes in 2030. This
ambition, which was announced for all
Coca-Cola bottlers, requires the implementation
of more short-term actions and a lot of effort on
the part of the whole System".
Returnable containers
At Coca-Cola we believe in returnables,
allowing the shelf-life extension of a plastic or
glass container, which is part of the vision of the
Coca-Cola System for "A World without Waste".
Within that framework we are making yearly
efforts of keeping and introducing returnable
containers to all our customers.
In 2020 the use of these bottles increased,
driven by their low price (people save money by
only paying for the content) but also because of
the isolation caused by the pandemic, which led
to consumption experiences in the home.
To maintain these levels "we placed many more
bottles in the market, starting with mini-markets,
and we did a pilot test with Cencosud network: we
opened spaces to sell returnable Ref PET packaging,
and after that other wholesale chains were interested
and the numbers exploded", added Rodrigo, who
also emphasized the importance of advertising in
the media.
Coca-Cola Andina
CONSUMERS
PREFORM
SUPPLIER
PRIMARY
RECYCLERS
FOOD GRADE
PET RECYCLING
REVERSE LOGISTICS
OPERATOR
FLAKE
RECYCLING
0
0
9
This strategy boosted the unique returnable
bottle, as it allowed us to continue encouraging
the use of this container and launch new
beverage options. The returnable packaging
is very environmentally friendly, its carbon
footprint is lower than the single-use container
and its shelf-life ends in our plant, managing
to recycle almost 100% of the used returnable
bottles. In addition, it is a format where we
deliver the same excellence and quality of
products in an affordable manner.
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health safety kits
In 2020 the Company acted quickly in the
development of responses for the prevention of
COVID-19 with the most vulnerable sectors.
Alongside the Coca-Cola system, a plan was
developed to assist each region’s health system,
helping to expand preventive and supportive
messages to the most vulnerable sectors.
Health safety kits were delivered to primary
recyclers, supporting them to return to work
following the sanitary protocols established
by the authority.
We also donated beverages, cooling
equipment and health safety supplies to
service centers facing the pandemic. We also
supported the most vulnerable families with
food boxes.
Primary recyclers
Chile
Primary recyclers are a key link in the recovery
chain, however, the pandemic has had a
major impact relevant to the work they do, as
quarantine directly affects recovery. One of
the initiatives that emerged in this context is
residential collection, a solution financed by
the Government that aims to reach 80 % of
households in Chile.
The project Recicla en Casa (Residential
Recycle project) looks to safeguard the
recyclers health decreasing movement
and organizing the collector’s efforts. The
platform developed by the Ministry of the
Environment and the National Recyclers
Association of Chile connects citizens with
primary recyclers.
We believe that it is important to work in
partnerships for advancing in making the role
of the primary recyclers a formal one, helping
them become supervisors and integrate them
into the recovery chains that are designed.
Asunción Recycles
Paraguay
The EcoDesafío Asunción Recicla program had
its second edition, which was extended for 10
weeks, seeking to promote the habit of recycling
in homes, and the re-evaluation of primary
recyclers as key actors in the protection of the
environment. The challenge proposed to unite
the efforts of 16 neighborhood commissions,
20 trainers and 16 waste collectors, managing
to recycle 29,063 kilos of material. What
was recollected is 13,053 kilos more than the
first competition. The winner of this second
round was the neighborhood commission
Oroité, which in Spanish means "Oro puro",
(“Pure Gold”) belonging to the San Pablo
neighborhood. The winner recollected 10,133
kilos of recyclable material, which means an
average of 230 kilos per registered neighbor.
The awards for first and second place were
USD 1,000 and USD 500, respectively, which
will be used for investments in works that
improve the community’s quality of life.
The initiative reaffirms our commitment to
make public-private partnerships, which are
the ones that achieve the greatest impacts; in
this opportunity, the organizers were
Coca-Cola Andina Paraguay, Soluciones
Ecológicas and the Municipality of Asunción.
Recollection en Lomas Bayas
Chile
Minera Lomas Bayas, located in Antofagasta,
Chile, has a waste recycling program for
waste generated in its operation.
Coca-Cola Andina is a supplier of beverages
that are consumed in its facilities and we join
to contribute to the project. The initiative
has multiple purposes, the main ones are
to recycle plastic bottles and financially
support the María Ayuda Foundation. It all
begins with awareness and communication
to the individuals who work in mining,
they separate the waste knowing that the
bottles will be recycled, and the waste sale
price is donated to the Bárbara Kast Home.
The Bárbara Kast residential program in
Antofagasta is one of the many programs run
by the María Ayuda foundation, the shelter
houses around 20 vulnerable girls and youth.
Once all the bottles are collected and placed
in one cubic meter bags, Coca-Cola Andina
uses reverse logistics of its trucks to transport
the maxi-sacks with the collected plastic
bottles to the recyclers. The Greind company
receives the bottles and starts the recycling
process, and in addition is responsible for
issuing the certificates of kilos recovered,
as well as donating the equivalent value of
the sale of the material to the Bárbara Kast
Home. During 2020 an average of half a ton
per month was recovered and the donated
value is equivalent to CLP 5 per kilo.
Training and environmental education
plans for mining personnel who were
reprogrammed by the pandemic will
begin during 2021.
Public-private partnerships
Argentina
2020 was a period of time when people
spent more time in their homes; many
families dabbled in orchards, composting
and segregation. Even though the circulation
of waste collectors was limited, there was
good news from consumers who were
incorporating recycling habits. The Company
used digital media to communicate how
to recycle, whereas the waste collectors
were the instructors. As in previous years,
working together with municipalities to
achieve synergies has been a key factor. This
year the public-private partnerships grew
significantly; nine partnership agreements
were reached for each municipality to
increase waste segregation and recycling.
0
5
0
Since 2018 Coca-Cola Andina Argentina
shows the positive results of such alliances,
where the agreements seek benefits for the
community based on coordinated work with a
long-term vision.
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The dissemination, implementation,
registration and continuous improvement
are some of the elements that allow these
agreements to be a success, leaving learnings
positioned in public bodies. While in 2018, 36
tons of recyclable waste were recovered, in 2020
it reached 107 tons.
Efforts will continue to be coordinated between
recyclers (formal and informal), municipalities
and communities to advance the commitments
made by the Company.
Let's be clear: Sprite
Argentina, Chile and Paraguay
Sprite’s new clear bottle is easier to recycle,
its change is part of the ambitious World
Without Waste (WWW) commitment. It
seeks to use design tools that empathize with
the recovery chain by understanding the
entire life cycle of our packaging. The green
bottles had an expensive separation process
and their application of recycled resin was
limited. Now all our packaging can become
new bottles, as well as any other product.
REDUCE
Our production processes generate waste that
is managed within the plants and monitored
using indicators for solid waste generation per
liter of beverage produced and the recycling
rate of solid waste. We pursue the reduction of
waste generation with actions in the packaging
of our raw materials as well as focusing on
finding environmentally friendly destinations
for our final waste. The weight of the bottles
we commercialize are also continuously
monitored with the aim of making them light
weight. Innovation and incorporation of new
technologies allow us to move forward with
lighter packaging that undergoes physical and
functional testing throughout its life cycle, and
the main challenge is to maintain the quality and
excellence of our beverages.
Mineral Water
Brazil
Generation of solid waste
(gr of solid waste/liter of beverage produced)
INITIATIVES
Perseverance and management
Paraguay
Argentina
Brazil
Chile
Paraguay
00.7
13.9
7.0
7.8
00.0
13
09.0
18.1
The Paraguay operation permanently seeks
multiple opportunities in the value chain
itself and other industries with the aim of
reducing and reusing the waste we generate
in our processes. The sludge from the
effluents is the result of careful treatment of
discharged water. When the sludge completes
its life cycle in our process, it can be used in
other industries.
Coca-Cola Andina Paraguay characterizes
the mud and removes its moisture; delivers
it to a fertilizer supplier who uses it as a
raw material for its products. The proposed
solution prevents the disposal of sludge into a
landfill, giving it a safe use.
0
5
0
About 380 tons of organic sludge are generated
annually and reused, achieving over 80% of
solid waste recycling.
An emblematic packaging of the advances
made in lightweighting issues is the mineral
water bottle. A few years ago we launched
our ecoflex packaging with a campaign aimed
at reducing the weight of the 500 ml bottles
to 12.5 grams and we invited consumers to
compact it for recycling. During 2020,
Coca-Cola Brazil launched the 10.5 gram
bottle for the Crystal still and sparkling water.
In addition, they made this packaging 100%
recycled resin, which is a real success and
innovation. We continue to move forward with
all formats, because we know that by reducing
the weight of bottles we save carbon dioxide
emissions across our entire value chain.
During 2020, efforts to reduce
packaging yielded resin savings of 413
tons per year, saving USD 488,535.
Recycling of solid waste (% of total)
Argentina
Brazil
Chile
Paraguay
90.0%
91.8%
87.3%
90.4%
89.0%
89.5%
80.0%
93.7%
2019
2020
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EFFICIENCY
and
PRODUCTIVITY
VALUE
of the
CHAIN
CONTEXT AND MANAGEMENT
We are committed to growing our industrial
and commercial activities in harmony with the
environment, being proactive and innovative.
As we expand the range of sensible products
and new categories, and in which the mix of
returnable packaging increases, the processes
require more energy consumption. The constant
challenge is to reduce consumption ratios, even
implementing the strategy of "a total beverage
Company". Energy management in our plants
is the focus of Coca-Cola Andina’s work, and
this is how we meet the requirements of The
Coca-Cola Company. As a system, bottlers
are in charge of the production, distribution
and commercialization management, which
represents between 45% and 60% of greenhouse
gas emissions of the total value chain.
ENERGY MANAGEMENT
WHY IS IT MATERIAL?
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 one of public benefit. Therefore, all
our stakeholders have conveyed their concerns to us
regarding the responsible use of this resource and the
active climate change protection.
GROWTH PILLAR
EFFICIENCY AND PRODUCTIVIY OF THE VALUE CHAIN
SDG
We work responsibly both in the management
of cooling equipment as well as the efficient
distribution of our products, since they represent
a relevant percentage of emissions. That is
why opportunities for improvement within
our facilities, such as investment efforts in
refrigerators and distribution fleets, are essential
to meet commitments.
In 2013, the Coca-Cola System proposed the
goal of reducing the carbon footprint of the
entire value chain (from ingredients to the final
consumer) by 25% by 2020 compared to the
baseline of 2010. By the end of 2019, there was
already a 90% improvement in this challenge;
aware that much work remains to be done, a
goal was established of reducing absolute GEI
emissions by 25% by 2030, compared to baseline
of 2015, in scope 1, 2 and 3.
The energy use ratio per liter of beverage
produced shows us the performance of the
plants; in 2020 we were able to reduce this ratio
in 4.5% thanks to efficiencies, new technologies
and a greater awareness of collaborators.
Energy use ratio (MJ/lt produced)
Argentina
Brazil
Chile
Paraguay
0.36
0.36
0.08
0.27
0.06
0.25
For example, three of the four bottling plants
in Chile have a certified clean energy contract,
while the operation in Paraguay consumes
90% of the energy from hydroelectric power
plants and boilers that use biomass (organic
matter originating from a biological process).
In Argentina, boilers are also protagonists,
since they use natural gas with the possibility
of consuming biogas generated in our effluents
treatment plant.
Likewise, an investment was made in an
effluent heater to optimize the treatment,
since ensuring a stable temperature
throughout the year allows a healthier
process in terms of the life of the bacteria
that help treat the effluent. This virtuous
circle generates more biogas and enables it
to be used both for boilers and to supply the
heater with the same effluent. During 2020,
43% more was generated than in 2019, a year
where processed effluents fell by about 6%.
0.50
0.47
Energy Source (% of Consumption)
Biomass
5.0%
2019
2020
Hydroelectric
Wind
Biogas
9.0%
00.0%
0.6%
0
5
0
Renewable Sources
Coca-Cola Andina’s commitment to the
environment is expressed in its rational use
of natural resources. We are also aware of the
origin of the energy we use; an effort is made
to acquire a growing proportion of it in those
countries where there are possibilities to obtain
energy from renewable sources.
28%
72%
Renewable Sources
Non-Renewable Sources
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 EMISSIONS
EMISSIONS: DISTRIBUTION PROCESS
2020 was a breakthrough year in terms of our goal
of reducing our carbon footprint. We gathered
the technicians from the four countries, who were
supported by a consultant who accompanied us
in the process and validated the methodology.
As a result of the work developed by the group
in conjunction with the consulting firm Circular
Carbon (CirCa), the commitment to climate
change based on SDG 13, Climate Action,
and sustainable development was reaffirmed.
This way, the environmental footprint for the
production and distribution of soft drinks, water,
juices and other products was determined, in
a pioneering and integrated way for the Latin
American market. The Company quantified
the organizational carbon footprint for its
headquarters in Argentina, Brazil, Chile and
Paraguay, using ISO 14064 and the Greenhouse
Gas Protocol: Corporate Accounting and
Reporting Standard (GHG), published by
the World Resources Institute and the World
Business Council for Sustainable Development.
This detailed study conducted during the year
2020 showed that the organization’s activities
in the region emitted 1,622,599 tons of CO2
equivalent. Similarly, we can detail that the
distribution (own and third-party) done in the
four countries of the region corresponds to
51,884 Tn CO2 (e).
The results obtained allow us to conclude that
81% of emissions come from sources counted
under Scope 3, which consider CO2 equivalent
emissions from indirect sources such as
consumption of materials, waste management
and treatment, distribution of finished product
and cooling equipment to customers.
11%
12%
45%
51,884
Tn CO2
(e)
32%
Argentina
Brazil
Chile
Paraguay
In second place of importance are gas
emissions from electricity consumption,
which contribute 15%, included in Scope 2
of this study. This is completed with the 4%
that comes from direct emissions of fixed and
mobile combustion, and fugitive emissions
from the use of refrigerant gases, which are
accounted for in Scope 1.
COOLING EQUIPMENT
9%
7%
10%
369,242
74%
Electronic Controller Equipment
Electronic Controller Equipment +LED
LED Equipment
Others
The carbon footprint that measures the
environmental impact of GEI emissions
activities across the board is a key
decision-making tool. In this sense, we
perform an analysis of the main contributors
to determine improvement plans in
measuring, reducing and compensating
perspectives. Among the main conclusions
we highlight:
• 248,398 Tn CO2 (e) from electric
energy consumption.
Initiatives: analyze energy efficiency in
electrical installations, to reduce or optimize
the consumption of the largest electrical
energy sources. Permanent monitoring with
the EUR (energy use) indicator. Progressively
increase the change of the energy matrix,
replacing the use of fossil energy sources by
renewable sources in those territories where
we have the availability. For example, the
clean energy act, signed by the end of 2018,
was a huge encouragement that began in
Chile and, is in continuous evaluation in the
rest of the Operations.
• 51,884 Tn CO2 (e) from Logistics
Distribution
Initiatives: we have control of the Market
Route (RTM) with which we seek an
efficient distribution, where each truck
makes the most of its trip to reach the
customer with all our products. The renewal
of own fleets and third-party fleets is also a
permanent challenge; in 2017, the operation
of Chile acquired 151 trucks with Euro V
Blue Tec 5 engine, which thanks to their
technology reduces emissions by 75%
compared to previous technologies. Today
the Company has 44% of their fleet with
Euro V technology or even better.
Liters of fuel
2%
15%
35,508,606
lt
83%
Gasoil (third-party fleet)
Gasoil (own fleet)
Biocombustible (own fleet)
• 186,860 Tn CO2 (e) from virgin
PET consumption
Initiatives: the reduction strategy of virgin
PET, reducing packaging weight, expanding
the supply of products in returnable
packaging, and the use of recycled resin,
are part of the packaging management that
brings great results to GEI reduction. The
commitment to the World Without World
program leads us to reduce the impact of
packaging emissions. For more information,
see the chapter of Sustainable Packaging.
0
5
3
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 We mention the main initiatives to reduce
the source of emissions; we plan to continue
moving forward with a GEI gas mitigation
strategy and seek to consolidate good practices
in all Operations, as well as challenging
boundaries in search of new opportunities.
Emissions (kg CO2 equivalents)
Scope 0
Scope 0
Scope 3
Total
2019
2020
05,977,830
55,077,803
55,003,868
008,397,500
000,003,780
0,308,703,660
300,005,080
0,600,599,005
Note: In 2020, the methodology was updated and scope 3 coverage
extended, including cooling equipment, raw materials, logistics
and waste disposal.
Emissions ratio
(gr Co2 (e) / liter of produced beverage)
Scopes 0 + 0 + 3
Scopes 0 + 0
2019
00.86
07.56
2020
050.50
80.56
Scope 3: Main Materials
8%
5%
5%
8%
15%
1,318,723
Tn CO2
(e)
17%
42%
Sugar/Fructose
Plastic cases
Containers/virgin PET plastic preforms
Returnable plastic bottles
CO2 (soft drink raw material)
Wood pallets (platforms)
Others
Note: 97% of the emissions of scope 3 are related to materials;
logistics and waste complete the remaining 3%.
Definition of the scopes:
• Measurement of Scope 1: direct
greenhouse emissions from sources owned
or controlled by the Company (fixed and
mobile combustion, and fugitive emissions).
• Scope 2 means: indirect greenhouse
gas emissions associated with electricity
consumption.
• Scope 3 emissions: are defined as other
indirect sources associated with: Materials,
refers to emissions from the consumption
of raw materials considering their origin
and production.
From ingredients such as sugar, water and
carbon dioxide; primary packaging (bottles,
caps and label); secondary and tertiary
packaging.
Waste refers to emissions caused by the final
disposal or waste treatment generated by the
operation, whether recyclable,
non-recyclable or effluents.
Logistics refers to emissions caused by the
distribution of final product. It considers the
kilometers travelled by third-party operated
trucks, including the model of the truck.
COMPENSATION: NATIVE TREES
Argentina
Coca-Cola Andina Argentina in alliance
with the Municipality of San Antonio of
Arredondo (Córdoba) planted 100 native
species. Some of the specimens were
espinillos, talas and carob trees, among
others. The consultant Ambiente Amber will
be in charge of the follow-up, accompanied
by municipality personnel.
The correct growth of this plantation will
allow capturing about 37 tons of carbon
dioxide per year.
0
5
0
Chile
On December 6, 2019, the reforestation of
Cerro Renca was carried out in Santiago, a
milestone in which 5,000 volunteers planted
15,000 trees. The action was part of a global
chain of initiatives organized by the movement
#6D It’s Now. After a year of planting native
species such as maitenes, molles, huinganes
and carob trees, among others, monitoring
and drip irrigation continues as planned at the
start of the project. In collaboration with the
Cultiva Corporation, the Avina Foundation
and the Municipality of Renca, it was possible
to monitor the planted trees, proving that
93% of these continue to grow strong in Cerro
Renca. The first maintenance season included
tasks such as overhaul of the irrigation system,
tutoring arrangement, replacement of protectors
and ground cleaning.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
C h a p t e r
5
FLEXIBILITY
and
COMMITTMENT
0
5
5
"It has been a constant challenge
and team support has made a difference
in overcoming obstacles"
0
WE ARE
COCA-COLA ANDINA
0
SUSTAINABLE VALUE
CREATION STRATEGY
3
A TOTAL BEVERAGE
COMPANY
0
OUR VALUE
CHAIN, RESOURCE
MANAGEMENT
5
FLEXIBILITY AND
COMMITMENT
6
CORPORATE
GOVERNANCE
7
INFORMATION FOR
THE FINANCIAL
MARKET
8
OUR COMPANY
9
PRINCIPAL
METRICS
00
EXHIBITS
An
AGILE COMPANY
COMMITTED COLLABORATORS
and
Work environment
Management of internal work climate,
quality of life and development of people
Why is it material?
Nothing great has been done in the world
without great passion and teamwork, where the
whole is greater than the sum of the parts. We seek
to provide our employees with the best place to
work, convinced that job happiness is fundamental
to the development of our activities, the well-being
of our people, economic growth and, ultimately,
the success of the organization.
GROWTH PILLAR
Agility, Flexibility and Commitment
SDG
At Coca-Cola Andina we are a team
composed of more than 17 thousand
collaborators throughout the four operations.
We believe that motivated and qualified
people are the basis of corporate sustainability.
We seek to provide our employees with the
best place to work, convinced that job well-
being is fundamental to the development
of our activities, economic growth and,
ultimately, the success of the Company and
the society in which we operate.
Paraguay
• Employer of the Year for the fourth
consecutive year.
• 1st The Top of Mind brands with the
Coca-Cola brand, for the eighth year
in a row.
The recognitions obtained tell us that we are
on the right path:
• 2nd place in the Candler Latam Cup of
The Coca-Cola Company.
Chile
• Merco Talento:
• 6th place in preferred employer ranking.
• 1st place in the soft drinks industry.
• Top 20 of the Ranking of Companies
with The Best Corporate Reputation.
• 6th place in First Job Top of Mind
index on preferences as a workplace for
management careers.
Brazil
• 1° Top of Mind Brands with the
Coca-Cola brand.
• 1st place in the Coca-Cola System Quality
Award in Brazil 2020, for the Duque de
Caxias plant
• 1st place in the E2E Coolers Program of
Coca-Cola Brazil-base year 2019.
• 3rd place in the Sustainability
Compliance Brazil Award
The key elements of our strategy
allow us to reach the goals:
0
5
6
Purpose
Leadership
Capabilities
Diversity and inclusion
Health and safety
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 The following Live sessions performed
via streaming standout:
• Management team Live: live event for
more than 1,700 employees providing a
message of recognition and appreciation
for the commitment and effort made by the
collaborators, and urging to strengthen the
focus on business recovery for the second
half of the year.
• Andina Connects: Live events developed
to publicize new projects implemented in
the organization, by the members of the
executing teams themselves.
• End of Year Celebration Andina
Argentina: with the aim of maintaining
closeness and closing the year recognizing
the efforts of all collaborators, we held an
event with a live streaming format with the
participation of more than 2,000 employees
and their families.
0
5
7
Purpose and flexible culture
We connect at all organizational levels
through a purpose that acts as a positive force
for change: a commitment to sustainable
growth, where customers and consumers are
at the heart of our decisions. "Being flexible
like a palm tree" was our CEO's message;
adapt without resisting, changing the way we
do things as often as necessary to keep the
Company leading the market and exceeding
customer and consumer expectations.
This connection is reflected in the low
turnover of our collaborators.
Average monthly turnover rate
Argentina
0.0%
0.2%
Brazil
Chile
Paraguay
0.3%
0.3%
0.9%
2.7%
0.3%
1.1%
2019
2020
Notes: Equity investees not included
Voluntary turnover for 2020 was 1.29%
We are one Company, one team, with a
culture of flexibility, agility and efficiency
that has been demonstrated like never before
in 2020 due to the COVID-19 pandemic:
quickly adapting processes to ensure that
our people are protected, designing practices
of work flexibility, implementing dynamic
communications management and measuring
team engagement at all times.
Taking care of our people: the Crisis
Committee of Coca-Cola Andina defined
the COVID-19 pandemic action protocols,
establishing the responsibilities of collaborators
and the health measures necessary to address
each identified level of alert. Several measures
were implemented for the prevention of
contagions, such as installation of sanitization
tunnels; disinfectant foot baths upon entering
and exiting facilities, production plants and
office access; installation of sanitization
elements in distribution trucks, such as alcohol
gel and water containers; controlled accesses
with temperature measurement; supplying
masks; implementation of signals to control the
movement of people; use of stairs, elevators,
walkways, etc.
Communications management: The strategy
is based on establishing actions that enable
all employees to use channels and spaces for
social relationships and participation to realize
their potential, achieve identity and express
their ideas, interests and concerns. With
technology and the use of new digital tools,
the organization's ability to generate meeting
and social relationship spaces has grown
significantly in recent months.
In 2020 we developed a set of actions aimed
at keeping employees informed on relevant
topics in the context of COVID-19, such
as disclosing symptoms, prevention and
control protocols, implementation of home
office and the dissemination of tools and
support channels for handling emotions
and stress situations. In order to make this
communication more dynamic and closer, we
implemented a new communications channel,
Microsoft Kaizala, aimed at all Coca-Cola
Andina employees in all four operations,
reaching a 22% adhesion in just two months
since its implementation.
We also launched a "Live" event program, where
we broadcast a series of talks, seminars, courses
and other materials, aimed at unifying the
organization around topics of common interest:
• Progress status of contagion prevention
measures implemented in the Company.
• Operational continuity and results obtained.
• New projects, partnerships with industry
partners and new product launches.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Work flexibility: at Coca-Cola Andina we
have a Flexible Work Program in response to
market trends, which allows to increase the
well-being of our employees and improve our
ability as an employer to attract and retain
talent, while maintaining the focus on meeting
the goals of the business. In the context of the
pandemic that we lived in 2020, this program
became very relevant through flexible hours
and work from home mode for collaborators
who fulfill administrative roles. It enabled
the removal of fixed computers, work chairs
and the technology area made available other
tools for connecting to the Andina network
and facilitating communication between
collaborators via Teams platform. The biggest
challenge of this modality is to stay close to the
collaborators, so a very active communication
plan was maintained, and we periodically
surveyed the perception of collaborators.
Organizational Climate: at
Coca-Cola Andina we measure employee
engagement through a biannual Labor
Effectiveness survey, reporting results and
plans periodically on Board committees. In
2020, we conducted the first Pulse Survey, a
tool to consult the perception of experiences
in the work environment and satisfaction
in different organizational aspects; it is
characterized by short-lived and fast queries
in its implementation, which allows to
obtain results in a short time and execute
improvement actions with agility. In the
context of the COVID-19 pandemic, we
conducted a survey of collaborators who carry
out their tasks from home office and another
for those who perform them at Company
facilities. This tool allowed us to identify the
different concerns of employees, strengthen
contagion risk prevention measures, execute
communication actions and implement
emotional containment plans.
Some survey results:
87%
accepted and has capability to
adapt to home office
85%
wants to continue with
home office modalities
Leadership and talent
For Coca-Cola Andina, people are one of the
basic pillars of the business and are a factor of
future success. We have a clear definition of the
leadership style we need: leaders with a mindset
of growth and agility, empowered and inclusive,
able to develop each of the team members to
grow our business and fulfill our purpose.
We develop, attract and retain these
capabilities at all levels of the organization.
Since its implementation in 2016, the Talent
Management and Succession Strategy shows
a positive evolution of leadership capabilities
in Coca-Cola Andina to manage the business
in the short and long term, as well as a healthy
development that guarantees the continuity
of the business in the future. We focused our
management on the diagnosis of capabilities
and the generation of individual action plans
for more than 190 people and the talent
review for more than 350 employees of the
Company's four operations. We also increased
the coverage of people included in talent
management from 76.7% to 81.3%, considering
the positions of managers of the four operations.
Covered positions also grew from 17% to 54%
and positions at risk of continuity dropped
considerably from 11% to 3%.
Succession plan
2016
11%
76.7%
17%
72%
2020
54%
43%
81.3%
0
5
8
3%
Postions
covered
Moderately
covered
At risk of
continuity
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Capabilities, performance
and recognition
We invest and develop the capabilities of
processes, systems and people needed to
make our purpose real. In particular, the
capabilities to transform us into a digital
organization in a world where technology,
data and artificial intelligence are redefining
customer connections and productivity
paradigms. Organizational capacity building
strategies are installed from the beginning
of the worker's working life in the Company.
They are implemented through education,
training and development programs with a
70-20-10 model: 70% of the actions are related
to education and knowledge acquisition in the
development of the work itself, participating
in projects or performing exchange of roles
and functions between different areas; 20% of
actions focus on personal growth initiatives
and relational capacity development and on
building relationships; the remaining 10%
focus on formal training activities to acquire
new knowledge, updating and technical
specialization that are acquired outside
the organization. This allows employees to
expand their knowledge and master multiple
processes, thereby promoting internal mobility
and increasing opportunities through job
conversion to operate in different areas.
Internal mobility:
Number of vacancies covered
with own staff in 2020:
97.9%
With the clear objective of not losing
closeness to our audiences and internal
customers and enhancing trainings, in 2020
we developed and increased an entire offer of
virtual training.
Argentina
• Koandina Campus: we re-created the
e-learning platform with new courses and
greater dissemination for its adhesion.
• Number of training hours: 43,246, up 56%
from last year.
Brazil
• Portal do Conhecimento (e-learning
platform), where more than 18,000 online
courses were conducted during 2020. We
opened the @komigo on Instagram to
broadcast and connect with collaborators
from the social network, also taking
advantage of the channel to make Live events.
• The Leadership Development Program
focused on managers and middle
management had a 92% adherence to live
sessions. We reached 500 leaders in a key
year, where we needed them and their skills
to overcome times of crisis with sustainable
solutions. The results were very good,
reaching 95% satisfaction and surpassing the
previous year by 3%.
• The Andina Leader Program has 14
online modules and one in-person module.
The training runs through the skills of
the leaders, as they will be role models for
their teams, strengthening the values of our
organizational culture.
Chile
Paraguay
• Operations and Commercial Academy:
were implemented through the Teams Live
tool, allowing to deliver knowledge on
different relevant topics throughout Chile.
• Sales Force Team Development Plan
Accompaniment. Objectives were defined,
which measure both competences and
indicators of operation; development plans
were created based on the results, which are
monitored monthly by heads of areas.
• Abi Week: online events and presentation
capsules of the new beer brands included
in our portfolio, shared throughout the
Company, as well as activities to learn about
the field of beer, such as blends, and the
history of our new strategic partner.
• The "Andinistas" Mentoring Plan is
currently being developed, which includes 20
workers from the organization, women and
men, from intermediate levels in different
areas, who receive counseling and support
from senior managers.
• Arandu (e-learning platform). It is an
online Learning Management System,
whose objective is to promote the continuous
personal and professional growth of the
Company's employees; it is a flexible and
convenient tool, since people can access
training anywhere/anytime; the courses
are dynamic, which promotes learning in a
simple and practical way, and can be accessed
by all of the company’s collaborators. In
addition, this tool allows us to track and
control the activities of the students to
improve a better use of the activities.
Training hours by person and gender
09.0
00.6
00.6
Average
hours of
training
Women
Average
hours of
training
Men
Average hours
of training
per employee
Note: 2020 only includes own staff
Average training expense
per collaborator
USD 00
0
5
9
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Performance Management
Through our Performance Management
program we align people's efforts to the goals
of the organization, installing a culture of
feedback between the leader and each member
of their team on their current performance, to
enhance their future performance by opening
a dialogue about strengths and weaknesses,
allowing to create agreements and commitments.
This management reaches almost all of
the Company's employees who fulfill roles
in the operation and back office, applying
different modalities depending on the specific
characteristics of the job, their relationship to the
role of contribution to the business (operational,
tactical and strategic) and the level of leadership
performed by the collaborator.
Percentage of collaborators with
performance assessment
Argentina
Brazil
Chile
Paraguay
Note: over own staff. 70% are assessed by goals and
30% by ranking
55%
100%
97%
75%
Organizational design with
diversity and inclusion
At Coca-Cola Andina we value the impact
of diversity on business and society. We
constantly strengthen this value with
programs and plans, with the firm purpose
of achieving an inclusive workforce that
increasingly reflects the diversity of the
communities and ecosystems in which we
operate. We aim to transform diversity and
inclusion into part of our culture; we are
convinced that differences make us grow as
people and as a company. The diversity and
inclusion strategy guidelines are organized
into three specific pillars: Gender, Disability
and Generations. Through the management
of these pillars we want to incorporate within
our organization the richness of the plurality
of each territory and community that
welcomes us:
• We manage Disability because we believe
that only a completely inclusive culture will
allow us to achieve our goal of sustainable
growth. Having met the goals required by
the authority to incorporate people with
disabilities, we go further and continue to
work to become more inclusive every day.
• We promote Gender Equality because we
are convinced that the inclusion of more
women in Coca-Cola Andina is essential
to be more successful and fairer. It is for
this reason that we aspire to increase the
participation of women, enhancing and
encouraging their incorporation in all areas
of the Company and driving their growth
towards leadership positions.
• We recognize that the different age segments
of collaborators of the organization present
and express different needs, as a result of
their evolutionary development. In this line,
our programs and initiatives consider these
differences and are oriented to meet them in
a specific way through differentiated benefit
programs, actions for the development of
careers, training initiatives and vocational
training at each stage. We also extend these
initiatives to communities by participating in
volunteer programs to promote the reintegration
of young people, providing opportunities for
capacity building and accompaniment for the
insertion of young people into the work force,
among other actions.
Gender equality
13.9%
86.1%
Gender equality - Board of Directors
18.2%
0
6
0
All internal and/or external search processes
are carried out regardless of gender, sexual
orientation, religious or political choice, or
age range.
In line with our purpose of helping to build
a more diverse and inclusive society based on
our Policy of Respect for Person, Diversity and
Inclusion, we carry out actions that seek to meet
that objective.
81.8%
Women
Men
Note: Management Level Gender Equality chart includes women
in all managerial positions, including junior, middle and higher
management, as a percentage of total managerial work force.
Specifically in the commercial area, participation of women in the
positions of managers and assistant managers is 20%.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
NATIONALITY 0000
DISTRIBUTION BY SENIORITY 0000
COLLABORATORS BY AGE 0000
4.4%
8.5%
17.8%
3,000
7,807
0,906
0,088
598
000
596
600
086
360
0,000
24.4%
45.0%
0,889
606
Argentinean
Brazilian
Chilean
Paraguayan
Other nationalities
DISABLED PEOPLE AND SOCIAL MINORITIES
00
30
308
390
090
095
370
509
0,993
0,300
050
007
003
553
365
3,000
30
050
7,807
070
07
560
0,580
0,906
6
030
590
0,088
5
83
090
0,000
0,000
609
3,003
0,803
0,390
0,090
559
0,300
003
30
3
Argentina
Brazil
Chile
Paraguay
Argentina
Brazil
Chile
Paraguay
2019
2020
Brazil
Chile
Less than 3 years
Between 9 and 12 years
Between 3 and 6 years
More than 12 years
Between 6 and 9 years
Younger than 18
Between 18 and 29
years old
Between 30 and 40
years old
Between 41 and 50
years old
Between 51 and 60
years old
Bewteen 61 and 70
years old
Older than 70
0
6
0
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Argentina
Brazil
Chile
• Participation in Government Programs
of the Province of Córdoba oriented
towards promoting employment inclusion
of vulnerable groups: PPP (Plan Primer
Paso “First Step Plan”: the goal is for young
people to have their first work experience);
PIP (Plan de Inserción Profesional
“Professional Insertion Plan”: oriented
towards recently graduated people), PILA
(Programa de Inclusión Laboral para
Adultos Varones “Adult Men Employment
Inclusion Program”: reinsert adult men to
work who are outside the labor market),
POR MÍ “FOR ME” (Work Experience
Program of a shorter working day for
women: help head of household women
enter the labor market to gain experience,
with the benefit of a reduced work day).
• Coletivo On-line Program, the launch of
the online platform enabled reaching all
points of the country with 10,000 young
people enrolled in the first two weeks. The
tool counts with audiovisual capsules and
learning activities without cell phone data
consumption and a duration of six weeks.
From the fifth week on they can access job
search applications.
• We continue to improve inclusion of
young apprentices, where we renewed the
Kolabora program: 22 mentors with 22
young people in one-on-one meetings to
help maintain a close relationship with
the workplace, and group meetings to
share experiences.
• People with disabilities: teleworking also
required an effort to include people with
disabilities and maintain them in work
activities. Initiatives were developed to give
them accessibility to digital tools.
• Female participation: increased the
presence of women in the sales force by 6%,
where we also incorporated our first heads
of sales, key sales developers and wholesale
executives. We increased participation of
women in our dispatch and liquidation
areas by 80%.
• Reinsertion program: our program aims to
support job reinsertion of people who were
deprived of their freedom. Since 2016 we
have given the opportunity to 156 people to
be reinserted in the labor force.
• Gender Workshops: Together with
Comunidad Mujer we performed and
planned a series workshops and talks aimed
at raising awareness of our leaders in terms
of gender biases, conciliation, leadership
and gender diversity.
• Network of Inclusive Companies-REIN
Sofofa. We are members of REIN-
SOFOFA. We actively participate since
2017 in the various working instances to
promote inclusion of people with disabilities
and we worked with several work groups of
public and private impact.
0
6
0
• Intégrate Andina: second edition of the
Intégrate Andina program, we trained
people with disabilities in our main
production processes. Nearly 90% of
the program's graduates were then hired
by Coca-Cola Andina. Together with
TACAL Foundation, a three-week work
plan was implemented to train young
people, where they familiarized with
our company and the main operating
and manufacturing processes. In
addition, we launched the Beca Andina
de Inclusión Digital (Digital Inclusion
Andina Scholarship): In 2020, Coca-Cola
Andina, through Fundación TACAL,
prepared and financed the training of a
group of people with disabilities in digital
and management skills.
• Grueras: in conjunction with the
Municipality of Renca we implemented
our Grueras program, where through a
training program specially designed for
Coca-Cola Andina, we trained 13 women
in fork crane driving.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Occupational safety and health
For a sustainable and safe working environment
In 2020, all Coca-Cola Andina operations
worked to keep safety inside and also outside
the Company, for the purpose of fulfilling
a goal that arises from the commitment of
senior management and that counts with the
responsible participation of collaborators, third
parties and service providers.
If there is one thing that Coca-Cola Andina is
distinguished by, it is the search for continuous
improvement in risk prevention, health and
safety management at work, to generate
behavior changes that lead to reduce accidents,
accident prevention and legal compliance.
This strategy is part of the Corporate
Sustainability Policy and supported by the
ISO 45.001 and OHSAS 18001 international
standards, which determine the basic
conditions for implementing a Health and
Safety Management System, which is audited
annually by third parties.
“
”
In addition, all our operations have a Behavior-
Based Safety Program (BBSP) which aims to
generate a Culture of Safety that promotes self-
care of employees, the care for one another and
care within the family.
The BBS program has helped to
steadily decrease the frequency of
accidents in recent years,
said Héctor Cortés, Occupational Safety and Health
Manager at Coca-Cola Andina Argentina.
He said that "trainings, which had to be
reinvented and dictated online, are important
in promoting behaviors that lead to a work
environment with high standards in health and
safety; weekly talks by leaders, supervisors and
heads of areas, and observations on behavior
in the plant." Despite the pandemic, we
maintained these last two activities in person,
respecting biosafety protocols.
Health accompaniment
With regard to health, during 2020 we
placed particular emphasis on maintaining
active communication with the collaborators
who attended the plant and with those who
teleworked, because they were included in the
risk groups or having to face force majeure
family circumstances. This presence on
the part of the Company obtained positive
feedback among workers, who within the
framework of two surveys expressed feeling
"cared for" and "being part of a great team".
0
6
3
On the other hand, we continue to perform
the usual medical examinations; in the
larger plants, through the installation of
two mobile practices to be able to comply
with protocols within the framework of the
health contingency, and in the smaller plants,
through agreements with health institutions.
The importance of a safe working
environment is added to this cultural
aspect. In this sense, Cortés says that the
BBS program, includes "infrastructure
monitoring, control and maintenance" as part
of continuous improvement management.
The safety policy reaches not only
employees, but also contractors and third
parties. The international certifications
that endorse it are "site standards", where
everything that is physically involved is
achieved by management. "It is also a
requirement for a company who provides
any service to Coca-Cola Andina for it to
count with safety management, to present a
program, a referral and monthly reports in
terms of safety performance," said
Coca-Cola Andina Argentina's
Occupational Safety and Health Manager.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Principal investments
Both Coca-Cola Andina Argentina and
our operation in Paraguay made several of
the planned investments. "In Paraguay we
invested in machine guards (which protect
workers from mechanical hazards); lifelines for
working at height; transit routes; technologies for
forklifts and transport adaptation to make them
safer," said Leonardo Calvete, Quality and
Sustainable Development Manager at Paresa.
No. of collaborators covered by
BBSP (own + third parties)
18,287
Accident Rate (LTIR)
1.01
1.11
Lost Time Incidents Severity Rate
23.94
27.16
Note: frequency rate of occupational illness for 2020 was 0.13
2019
2020
Actions against the pandemic
Since the beginning of 2020, even before the
COVID-19 health emergency was decreed,
Coca-Cola Andina has worked on adapting
policies and comprehensive health and safety
strategies to ensure compliance with existing
health protocols and continuity of all operations.
According to Héctor Cortés, Occupational Safety
and Health Manager at Coca-Cola Andina
Argentina, "the internal protocol we generated for
Paraguay acted as a first input to understand how
we were going to work in the pandemic scenario".
The contingency "impacted all plants, which had
to be adapted to be able to change everything and
not stop working any single day," added Leonardo
Calvete, Quality and Sustainable Development
Manager at Andina Paraguay. Some of the
actions carried out under the Behavior-Based
Safety Program were: changes in in-plant routes;
installation of disinfection systems at access
0
6
0
points; sanitization routines; reconfiguration
of facilities such as bathrooms, cafeterias and
offices to maintain social distancing and biosafety
measures; providing laptops and ergonomic chairs
for teleworking; delivering circulation certificates
for essential operators; daily COVID-19 case
monitoring meetings, and the setting up of two
mobile practices for medical trials at the most
massive plants in Argentina.
All of this was supported by a communication
and awareness campaign that focused on the
importance of personal care, compliance with
internal standards and prevention. In this sense,
Cortés emphasized:
“
The effort on the part of the collaborators of
the different operations to make health and
safety management efficient, which kept us
in control of the situation at all times.
”
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 con
COMMITTMENT
WITH
COMMUNITY
the
Relationship
At Coca-Cola Andina we defined community
relationship guidelines to be attentive to the
needs of our environments. We focus on
building long-term relationships of trust and
providing value in the issues that are relevant
to each of them. We pay special attention
to developing programs that support young
people and women, generating skills and
opportunities for them to develop. We want to
contribute to the progress of the communities
where we operate, through initiatives that boost
local economies and improve people's quality
of life. This year we were closer than ever to
our customers, suppliers, collaborators and
community in general, supporting them to move
forward. The COVID-19 pandemic affected us
all; that is why maintaining closeness allowed us
to generate initiatives that helped to deal with
the situation of economic and social crisis.
We also encouraged volunteer actions among our
employees. During 2020 the Company managed
to adapt to the context and provide 2,008 hours
of support to community programs thanks to
the willingness and passion of the collaborators.
One of the outstanding volunteer initiatives was
in our Brazilian Operation through the Kolabora
program, where 21 mentors accompanied 22
young people on-line with individual and group
meetings. With great effort, the program,
which began in 2019, was adapted to continue
supporting young people during 2020.
Another focus of work was to accompany our
clients, particularly the neighborhood stores,
which were key to overcome the mandatory
confinement and to function as proximity
shops to meet the needs of the community. A
relevant example was given in the Argentine
Operation, where 288 hours of training were
imparted to customers of the traditional
channel (mom & pops); as a result, they
increased their revenue by 11%.
Support during the pandemic
The Company defined supporting the
community through those ties that we already
had strengthened, strengthening long-term
relationships and ensuring the transparency of
each contribution we provide. For the provision
of beverages we worked with food banks,
which form networks to reach those who
need it most, complementing our contribution
with the contribution of other foods that
complete the table of low-income families.
This year we expanded the delivery of products
to municipalities and hospitals, in order to
alleviate the difficulty of those serving in the
context of the pandemic. In Paraguay, together
with The Coca-Cola Company the Company
set out to strengthen the health system,
organizing the donation of ventilators and
protective elements with the Fundación CIRD.
In Chile, we also helped the health system,
donating CLP 30 million for the recruitment
of health personnel for a 12-week period in the
commune of Puente Alto.
Coca-Cola Andina also reached out to base
recyclers, with whom we worked collaboratively
to promote recycling; in 2020 the focus was
on supporting them to overcome the economic
crisis and provide them with the tools to protect
them from the virus. Hygiene and food kits
were delivered to them, we also accompanied
them to process the permits that enabled them
to work, based on the principles of health, food
and economic reactivation.
In Brazil, the entire system acted in bulk in the
fight against COVID-19. An additional BRL
45 million were contributed to help the health
system, increase prevention messages and
support more vulnerable communities. Personal
protective elements and hygiene kits were
delivered, as well as food baskets.
Investment in the community (USD)
4,452,993
Number of beneficiaries
in the community
1,745,682
0
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5
Donated product
2,128,169
liters
566,688
USD
Community
Client development.
Supplier development.
Economic and social development of
local communities.
Respecting Human Rights.
Why is it material?
At Coca-Cola Andina we have the role of
contributing to the development of communities,
contributing to this development with ethical and
transparent relationships with all our stakeholders.
COVID-19 has altered people's lives and endangered
global economy; aware of our role in the production
chain, we seek to strengthen neighborhood stores that
translate into growth of the most vulnerable sectors.
GROWTH PILLAR
AGILITY, FLEXIBILITY AND COMMITTMENT
SDG
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Principal entities we support
Argentina
Brazil
Instituto Argentino de
Responsabilidad Social y
Sustentabilidad
Fundación fondo de becas
para estudiantes
Fundación CONIN
Fundación junior
achievement
Proyecto agua segura
Instituto Coca-Cola Brasil
AFBCC - Associação
Fabricantes Brasileiros de
COCA-COLA
ACRJ- Associação Comercial
do Rio de Janeiro
ABIR - Associação
Brasileira das Indústrias
de Refrigerante
CIESP - Centro de Indústria
do Estado de São Paulo
Chile
AB Chile
Paraguay
ASOCIACIÓN Tierranuestra
SOFOFA
Fundación Teatro ARLEQUÍN
Red de alimentos
Soluciones Ecológicas
AGIP - Asociación Gremial de
Industrias Proveedoras
AIA - Asociación de
industriales de
Antofagasta
A Todo PULMÓN
ADEC: Asociación de
Empresarios Cristianos
INITIATIVES
Fundación OMAS
CIRJ - Confederação das
Indústrias do Rio de Janeiro
Cámara de Comercio de
Santiago
Fundación TELETON - Centro
de REHABILITACIÓN
Mi barrio mi almacen
Chile
Cooperativa Los Carreros
ARBERISA – Associação
Recreativa e Beneficente
dos Empregados da Rio de
Janeiro Refrescos Ltda
ANDA - Asociación Nacional
de Avisadores
Aldea de Niños SOS
Banco Alimentos Córdoba
FIRJAN – Federação das
Indústrias do Estado do Rio
de Janeiro
Confederación Gremial
de Comercio Detallista y
Turismo de Chile
UIP - Unión industrial
Paraguaya
Red de innovación local
CBH-BG – Participação
no Comitê da Região
Hidrográfica da Baía de
Guanabara e dos Sistemas
Lagunares de Maricá e
Jacarepaguá
Red Pacto Global Chile
CDI - Centro para el
desarrollo de la
inteligencia
GEA Sustentable
Coletivo Brasil
Fundación Futbol Más
SND - Secretaria nacional
del deporte
During 2020 we contributed USD 433,693 to tax exempt associations and/or groups.
The "Mi Barrio Mi Almacén" program aims
to connect neighborhood stores with their
customers and the community through the
use of digital tools. The idea emerged from our
Board's decision to help vulnerable families
affected by quarantines and from analysis of
the effectiveness, complexity and costs of the
different mechanisms for delivering products.
Our challenge was to digitize the delivery of
food and basic daily necessities, based on our
strengths, our relationship of more than 70 years
with mom & pops and our digital capabilities.
So, with the help of one of our technology
partners, Azurian, and Scotiabank's counseling,
we created "Mi Barrio Mi Almacén".
Traditional food boxes are of great help, but
they have a high logistical complexity and are
not very flexible for beneficiaries, as they do not
have the option to choose the products.
In "Mi Barrio Mi Almacen" the logistical
complexity is minimal, and the redemption
experience is flexible, as beneficiaries can
redeem the amount of the Application of the
Digital Solidarity Box for the products they
require most in their neighborhood stores,
which are usually less than 300 meters from
their homes.
We started working hand in hand with the
Municipality of Renca to implement a pilot
by the end of July, delivering a benefit of CLP
25,000 to 50 families in the commune. With
that learning we were able to quickly scale the
solution; in our first month of operation we
delivered more than 2,000 benefits. In total
in 2020 we allocated 18,000 benefits in the
communes of Renca, San Joaquín and Maipú.
0
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Stores simply download the app, access with
their username and password, and once a
beneficiary arrives at the store to redeem the
benefit, they complete the authentication
process. The beneficiary chooses the products
they want to redeem for the amount allocated.
We process the redemptions made daily and
coordinate money transfers for the amounts
redeemed in each store. The beneficiaries
were informed by the respective municipality
of the delivery of this benefit. We sent them
the instructions to redeem via SMS and they
entered the program's website to search for the
nearest affiliated store.
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“Estemos abiertos”
Argentina-Paraguay
In Argentina and Paraguay the program
"Estemos abiertos" was implemented with
the aim of supporting neighboring stores,
which are also our customers of the traditional
channel (mom & pops, kiosks and pantries).
In Paraguay, microcredits were provided to
600 pantries of Asunción, Gran Asunción,
Ciudad del Este and Encarnación through the
Fundación Paraguaya. The money – USD 600
for each store - was used to purchase goods and
supplies for compliance with health measures,
acquiring means of transportation to make
home deliveries, and the digital transformation
of the store.
In Argentina, biosafety elements were
delivered, and commercial and financial
support actions were developed in partnership
with Solidagro. "Estemos Abiertos" seeks to
prop up neighborhood stores, one of the links in
the value chain most affected by the economic
crisis brought by the pandemic. With this
contribution we helped 500 business owners
from Buenos Aires, Córdoba and Salta. The
persons receiving the aid were selected by
Solidagro representatives, bottlers from each
area and municipal authorities, considering
their vulnerability and health risk. Financial aid
money reached traders through Wabi's virtual
wallet, the app that connects consumers to
kiosks and neighborhood stores.
Scholarship fund to continue studies
Argentina
Coca-Cola Andina Argentina has been
supporting the Fundación FONBEC
(Scholarship Fund), an organization that
since 1999 has been helping children with
good academic performance and economic
problems that are at risk of their educational
continuity. FONBEC grants primary,
secondary and university scholarships, and
proposes long-term relationships between
protégés and sponsors to accompany children
and adolescents until higher education. The
condition for receiving the scholarship is
good academic performance; each child or
young person has a foundation coordinator,
who follows up and is the bond between
them and their sponsors.
In 2020, in person classes were one of the
activities most affected by the pandemic;
the financial contribution helped students
to access data via mobile phones and
photocopied material, managing to continue
the educational proposal in the context
of COVID-19. Sponsors were also key,
providing emotional support for protégés
to continue their studies and overcome the
period of social isolation.
In 2015 we started with 43 scholarships and
every year we have set out to increase support
with the accompaniment of collaborators.
In the last three years we have reached the
support of over 90 sponsors and more than 70
scholarships per year.
Number of sponsors
007
000
90
The Company set out to participate in this
initiative, developing a model where it shares
half the scholarship with each collaborator
who decides to be part of the program. The
financial contribution is intended for each child
or guardian so that the family can provide the
necessary elements to attend classes and study;
letters are written periodically and when the
link is already consolidated, the communication
becomes proactive on either side without the
need of a mediator from the Foundation. The
Company organizes in person instances, to
consolidate the relationship between the family
of the beneficiaries and the employees of
Coca-Cola Andina Argentina, thus
strengthening ties. This paid off and increased
the span of the program, bringing in new
contributors to also participate in the program.
2018
2019
2020
Number of scholarships
98
89
76
2018
2019
2020
Contribution ARS
858,000
0,060,000
0,078,000
2018
2019
2020
0
6
7
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Risk assessment
Coca-Cola Andina conducts a sustainability
risk assessment in the supply chain through a
series of systematic controls for all suppliers
that safeguard the "Guiding Principles
for Suppliers", required by The Coca-Cola
Company. These intensify as the level of
criticality increases. There are four main
controls or processes for risk management
and identification:
• General Control: applies to all suppliers of
the company. It is an automatic control of
compliance with labor requirements.
• Specific Digital Control: corresponds to
random and specific reviews of companies
defined as critical, these reviews request
additional information that must be sent
digitally by each contractor.
• On-site auditing: for companies with the
highest criticality ratings, on-site audits
are conducted at the supplier's offices to
physically verify compliance with guiding
principles.
• External Audit: Every two years, an
external company is hired to review
compliance with the Guiding Principles,
using random samples for the entire
population of critical companies.
COMMITTMENT
OUR SUPPLIERS
with
Business framework
At Coca-Cola Andina we want to guarantee
sustainable consumption and production
modalities. We promote ethical and
transparent relationships based on the
guidance developed by The Coca-Cola
Company: Guiding Principles for Suppliers.
Human rights compliance is the basis for
starting a relationship with our suppliers,
and they must comply with the laws and
regulations that apply to them. Internally,
Coca-Cola Andina publishes the code of
ethics for suppliers and third parties where
it frames the principles of conduct with
which they must comply. As well as the
corporate human rights policy expressing
the responsibility that the company has to
ensure the prevention of associated conflicts.
We have an anonymous report website that
allows anyone to reach out and expose a
breach of our corporate policies.
Our approach to supply
chain management
Supplier management begins with a
categorization strategy that considers the
financial impact within the supply chain,
strengths and business risks. All suppliers are
analyzed according to the following criteria:
Supply chain expense analysis
Supply chain awareness and criticality
Supply chain risk assessment and
corrective measures (e.g. supplier
sustainability assessment)
Integration of environmental, social
and governance issues into the supply
chain management strategy.
Once the general analysis is considered, the
qualification of each of the suppliers is continued.
To this end, three aspects are evaluated: people's
safety, environment and operational continuity
with preset criteria that allow to determine the
level of severity of each of them. Prioritization is
critical to moving forward with the management
strategy and efficiently allocating control and
evaluation resources.
0
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Prinicipal Metrics
INITIATIVE:
Managment follow-up and monitoring is
supported by metrics, thus
Principal metrics supplier management
Number of suppliers
8,504
Number of suppliers assessed
1,364
Number of critical suppliers
333
% of expense in critical suppliers
51%
% of local suppliers
96%
KOARIBA Project
Argentina, Brazil, Chile and Paraguay
As part of the company's continued search
for efficiency, we continue investing in
technology and committed to the digital
transformation of processes. That is why
in February 2020 the KOARIBA project
was initiated, which consists of the
implementation of the SAP ARIBA tool
to support the Supply area throughout the
Procure-to-Pay process. The cloud-hosted
solution complements the capabilities of
today's SAP ERP (resource planning) to
make the Purchasing Process more efficient
in all four operations.
To carry out the project, agile methodologies
have been applied, forming different work
cells that guarantee a corporate vision from
the "one company, one team" premise.
% of expenses in local suppliers
85%
Our goal is to continue on the digital
transformation path and standardization of
the Purchasing Process, giving satisfaction
to our internal customers, buyers and
suppliers, increasing productivity and
operating efficiency.
0
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This is how in December 2020 we were
able to take the first big step by successfully
performing the Go Live simultaneously
for the four operations of one of the main
modules of the tool, Sourcing, which allows
us to move on to managing Tenders, Quotes
and Auctions digitally benefiting from greater
participation, greater dynamism with even
greater transparency throughout the process.
The next steps of the project in early 2021 are
the implementation of the module that will
allow suppliers to self-manage their sourcing
process from registration to product delivery
notification, as well as implement the module
that will help internal users improve their
shopping experience by selecting items from
preset and negotiated catalogs.
Some of the improvements that can be
perceived are: visibility and expense control;
capture savings by increasing analytical,
negotiations and strategies by category; the
traceability of processes and user experience
resulting in a strengthening of the company-
supplier relationship
51
buyer users will be able to operate
on the new platform
More than 5,700
suppliers will be enabled to transact
148
approved procurement categories
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
C h a p t e r
"Standing as one, supporting and
caring for each other, to continue
delivering the best of ourselves"
6 CORPORATE
GOVERNANCE
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WE ARE
COCA-COLA ANDINA
0
SUSTAINABLE VALUE
CREATION STRATEGY
3
A TOTAL BEVERAGE
COMPANY
0
OUR VALUE
CHAIN, RESOURCE
MANAGEMENT
5
FLEXIBILITY AND
COMMITMENT
6
CORPOR ATE
GOVERNANCE
7
INFORMATION FOR
THE FINANCIAL
MARKET
8
OUR COMPANY
9
PRINCIPAL
METRICS
00
EXHIBITS
OUR VALUES
ETHICS and
COMPLIANCE
What sets us apart is the way we do
things. Our commitment is based on an
ethical culture that is deeply rooted in
the organization, therefore each person
is necessary to maintain and transmit
this culture within the Company,
independent of his/her position.
Integrity
We work with honesty, transparency, respect and consistency in our actions.
Teamwork
We bring confidence, collaboration and diversity to our work environments.
Attitude
We are moved by passion, commitment and perseverance.
Austerity
We are responsible for the care of resources and proper cost management.
Results oriented
We carry out our work efficiently which facilitates the achievement of the
proposed objectives.
Client Focused
We get to know our clients to understand their needs, and fulfill the promise
of service and dedication to the market.
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Acting in accordance with ones
values is something that is tested,
not when things are easy, but
when they are difficult.
“
”Gonzalo Said,
Board Member
ETHICS ANd COMPLIANCE
Our Corporate Governance Model ensures that the governance of the Company is carried out
in an ethical and integral manner, always acting within the legal framework.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 CORPORATE GOVERNANCE MODEL
The Corporate Governance Model is the framework for efficiently managing the relationships between the different bodies that run the Company, and
regulates the way we interact with stakeholders. This model incorporates our values and culture, as a condition for the achievement of the Company’s
objectives, and has the regulatory and control mechanisms that reflect best practices. The model is detailed below:
GSM
s
r
e
d
l
o
h
e
k
a
t
S
Integrated
Annual Report
External Auditor
Executive
Committee
Culture, Ethics
and Sustainability
Committee
Audit Committee /
Directors'
Internal Audit
Investor
Relations
CSR
SHAREHOLDERS
BOARD OF
DIRECTORS
CHIEF EXECUTIVE
OFFICER
SENIOR MANAGEMENT,
CORPORATE MANAGERS
AND GENERAL
MANAGERS
MANAGEMENT / AREAS / COLLABORATORS
Induction
and training
Experts
Visits
Complaints
system
S
t
a
k
e
h
o
l
d
e
r
s
Crisis
management
Compliance
Risk
management
CORPORATE GOVERNANCE
MODEL OBJECTIVES
∙ Guarantee the generation of sustainable
value taking into account the interests of our
main stakeholders: the community where we
operate, our collaborators, suppliers, clients
and investors.
∙ Foster a culture of business ethics that
mitigates potential irregularities.
∙ Provide an effective framework of
transparency, control and management
of the Company’s responsibility, through
policies and rules that guide decision making.
∙ Contribute to the value creation in the long
term, by looking after corporate reputation.
∙ Enhance transparency and reliability of
information.
∙ Control management efficiency, process
improvement and compliance.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 CODE OF ETHICS AND BUSINESS CONDUCT
It is a guide of minimum conduct standards for all employees, contractors, consultants,
executives and members of the Company’s Board of Directors, as well as for any third party
acting on their behalf. Among other aspects, it specifies the legal and statutory regulations that
must be complied with, that the information disclosed must be truthful, accurate and sufficient;
and that all types of conflicts of interest must be avoided, among other aspects. We also have a
Code of Ethics for Suppliers and Third Parties.
MAIN CORPORATE POLICIES
We are constantly strengthening Corporate Governance practices that are formalized in policies
and standards; these are mandatory and contain precise guidelines.
e
S
G
CORPORATE SUSTAINABILITY
POLICY
RESPECT FOR THE
PERSON, DIVERSITY AND
INCLUSION POLICY
HUMAN RIGHTS POLICY
GIFTS, ATTENTIONS, AND
DONATIONS POLICY
RISK MANAGEMENT POLICY
CONFLICT OF INTEREST POLICY
CORPORATE CRIME PREVENTION
ACT POLICY NO. 00,393
RELATED PARTY
TRANSACTIONS POLICY
CORPORATE TAX POLICY
MANUAL FOR HANDLING
PRIVILEGED INFORMATION
AND MARKET INTEREST
INFORMATION
INCREASING AWARENESS:
OUR CULTURE OF ETHICS AND INTEGRITY
We have a training program that allows all
employees to know about the Corporate
Governance, Code of Ethics and Business
Conduct, Anonymous Complaints, Crime
Prevention and Free Markets
Competition Policies.
ANONYMOUS COMPLAINTS CHANNEL
Our Anonymous Complaints Channel is
available on the Company’s corporate website
to receive, evaluate and investigate complaints
from employees and third parties in general, in
accounting matters, accounting controls or audit
matters, as well as with respect to possible legal or
regulatory violations that may occur throughout
the Company, including legal or statutory
violations that prohibit and sanction corruption
and improper payments, such as those contained
in Law No. 20,393, of the Foreign Corrupt
Practices Act of the United States of America
("FCPA") and all similar laws that are applicable
in the countries where the Company operates.
The 15 complaints under review at the end of
2019 were reviewed, processed and closed.
In 2020 we received 72 complaints, of which
48 were reviewed, processed and closed, and
24 are under review at year-end-closing.
Of the total number of complaints received in
2020, one was related to Corruption, and as
of December 31st is under review.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 BRIBERY AND CORRUPTION PREVENTION
EFFICACY OF THE BOARD OF DIRECTORS
Through our Corporate Crime Prevention and
Corrupt Practices Policy we seek to establish
guidelines on which we can base the adoption,
implementation, and operation of the
Prevention of Crimes and Corrupt Practices
Model of the Company and its subsidiaries.
In our Corporate Policy for the Prevention of
Crime and Corrupt Practices, the Company
rejects and prohibits any corrupt act, or
those that could generate corruption in third
parties, and agrees to fulfill its activities in
accordance with the letter and spirit of all
laws and regulations, local and international,
that prohibit and punish corruption in all
countries in which it operates, such as Chile's
Criminal Liability Act of Legal Entities
(Law No. 20,393), the FCPA, and similar
applicable laws, such as Argentina's Criminal
Liability Law Applicable to Legal Entities
(Law No. 27,401).
NOMINATION PROCESS
The election of directors is made in accordance
with the voting process especially established
in Chilean Corporate Law. According to this
legislation, new applications may be received up
to the time of the General Meeting (except in
the case of candidates for independent director,
who must be presented at least 10 days before
the Meeting takes place). Any shareholder can
nominate the candidate they want.
The election of the members of the Board of
Directors is usually done through the ballot
system, through which the shareholders manifest
their choice for the candidate of their preference
among those proposed to the Meeting. Series
A and Series B are voted separately, and those
candidates who receive the greatest number of
votes are elected; and there always must be at
least one candidate among them who meets the
conditions to be considered as independent.
BOARD OF DIRECTOR ELECTIONS
Our Board of Directors is composed of 14
directors, who are nominated and elected
every three years by the General Shareholders'
Meeting, by separate shareholders votes of Series
A and Series B. Shareholders of Series A elect 12
directors and shareholders of Series B elect two
directors. They may or may not be shareholders,
last three years in office and may be re-elected for
an indefinite number of terms. The last election
was held at the General Shareholders'
Meeting on April 16, 2020.
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A director is considered to be independent
when none of the situations described in
article 50 bis of the Chilean Corporate Law is
relevant to him.
The election of Chairman of the Board of
Directors is held at the first meeting after
its renewal. Neither Chilean law, nor the
Company Bylaws, establish a procedure by
which this election must be made, nor do
they establish special requirements for the
office of Chairman of the Board of Directors.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
José Antonio Garcés Silva
Vice Chairman of the Board
Member of the Controlling Group
Non-Executive
Appointment: He has been a member of the
Board of Directors of the Company since 1992.
Experience: 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. Previously, he was
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 Advisor of Sofofa. He
has 25 years of experience in the beverage and
mass consumption industry, and extensive
experience in risk and cybersecurity in the
financial sector. Currently he is a member of
the Risk Committee of Banco Consorcio.
Other positions: Currently he also is
director of Banco Consorcio, CN Life
Compañía de Seguros, Consorcio Nacional
de Seguros, Banvida S.A., Energía Llaima
SpA, Andes Iron SpA and Viña Montes.
Marco Antonio Araujo
Non-Executive
Georges De Bourguignon Arndt
Non-Executive
Appointment: He has been a member of the
Board of Directors of the Company since
April 2020.
Appointment: He has been a member of the
Board of Directors of the Company since
April 2016.
Experience: Systems and Industrial Engineer,
both degrees from Pontificia Universidad
Católica de Rio de Janeiro, Brazil; Master's in
Finance, Pontificia Universidad Católica de
Rio de Janeiro, Brazil; postgraduate studies
in Accounting FGV, Rio de Janeiro, Brazil.
He is CFO of the Latin America Operating
Unit at The Coca-Cola Company. He has 28
years of experience in the beverage industry
and mass consumption, experience in mergers
and acquisitions, risk management and
sustainability.
Other positions: At The Coca-Cola
Company he has served as Finance VP &
CFO Japan Business Unit; Finance VP &
CFO Brazil Business Unit; Finance VP &
CFO Mexico Business Unit; M&A Manager
for Latin America, Atlanta-USA; Finance
Director, Madrid, Spain; Finance Manager
SE Region, Brazil Division; and Financial
Planning Analyst/Manager, Brazil Division.
Experience: Economist from the Pontificia
Universidad Católica de Chile, specializing
in Finance and has an MBA from Harvard
University. In the academic field he was
professor of Economics at the Universidad
Católica and Director of Harvard Business
School Alumni Board in Boston. He is
co-founder and CEO of Asset Chile.
Previously he was director of Latam Airlines
Group (2011-2019) and Empresas La Polar
S.A. (2011-2015). He has more than five
years of experience in the mass consumption
industry. He was a member of the Latam
Airlines Group and currently serves in
the risk committees of Sociedad Química
y Minera de Chile S.A. y de Asset AGF
S.A. He participates in the Sustainability
Committee of Sociedad Química y Minera
de Chile S.A.
Other positions: Currently he is director of
Asset Chile S.A., Asset AGF S.A., Sociedad
Química y Minera de Chile S.A. and Tánica S.A.
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BOARD OF DIRECTORS EXPERIENCE
Juan Claro González
Chairman of the Board
Non-Executive
Appointment: He has been a member of the
Board of Directors, and also the Chairman
since 2004.
Experience: Studied Civil Engineering at
the Pontificia Universidad Católica de Chile.
He has developed an outstanding activity
of business representation, chairing the
Sociedad de Fomento Fabril (Sofofa) between
2001 and 2005, the Confederación de la
Producción y del Comercio (CPC), between
2002 and 2005 and also Chile-China Bilateral
Business Council between 2005 and 2007.
He has a solid career in the beverage and
mass consumption industry, with more than
17 years of experience. Currently member of
the Risk Committee at Agrosuper S.A. and
Sustainability and Stakeholders' Committee
at Antofagasta PLC. He has been a Board
member at the following companies: Gasco
S.A (1991-2000), CMPC S.A. (2005-
2011) and Entel S.A. (2005-2011). He was
Chairman of Metrogas (1994-2000) and Emel
S.A (2001-2007).
Other positions: Currently he is also
director of Antofagasta PLC, Cementos
Melon, Agrosuper and Energía Llaima. He
is also an honorary member of Centro de
Estudios Públicos (CEP).
Executive Committee
Culture, Ethics and Sustainability Committee
Directors' Committee
Sarbanes-Oxley Audit Committee
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Eduardo Chadwick Claro
Member of the Controlling Group
Non-Executive
Pilar Lamana Gaete
Independent
Non-Executive
Roberto Mercadé
Non-Executive
Appointment: He has been member of the
Board of Directors of the Company since
June 2012.
Appointment: She has been member of the
Board of Directors of the Company
since 2017.
Appointment: He has been member of the
Board of Directors of the Company since
April 2019.
Experience: Industrial Engineer, Georgia
Institute of Technology, Atlanta (United
States). Previously member of the Board of
Directors of ARCA-Lindley in Peru, Escuela
Campo Alegre in Venezuela and American
International School of Johannesburg in
South Africa. Has 29 years of experience in
the beverage and mass consumption industry.
He was responsible for the risk management
operation at The Coca-Cola Company’s
Latin Center. In sustainability, he was
responsible for co-creating and managing the
World Without Waste strategy for the same
unit. He has developed his experience in the
regions of Latin America, Africa and Asia.
Other positions: Currently serves as
President of Coca-Cola Mexico in
The Coca-Cola Company.
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Experience: Industrial Civil Engineer of
Pontificia Universidad Católica de Chile. He
has 30 years' experience in the beverage and
mass consumption industry.
Other positions: Currently serves as
President of Viña Errázuriz. He is also
member of the Board of Directors of
Empresas Penta S.A., Maltexco S.A.
and Ebema S.A.
Executive Committee
Culture, Ethics and Sustainability Committee
Directors' Committee
Sarbanes-Oxley Audit Committee
Experience: Business Administrator of
the Universidad de Chile, specializing in
Administration; and also has a Diploma in
Corporate Governance from the Pontificia
Universidad Católica de Chile. She was
Vice President Customer Management
- Marketing Manager at Unilever Chile;
external advisor in charge of the Emporium
project at D&S; and director at Empresas
Flores, Empresas Artel, Colgram and Aqua
Chile S.A. She has 33 years of experience
in the beverage and mass consumption
industry; also has knowledge and experience
in risk management, was in charge of Risk
Management in the Customer Management
area of Unilever Chile. She is a university
professor in the areas of retail, sales, marketing
and negotiation at the Pontificia Universidad
Católica de Chile. Her most recent studies
are in the areas of Practicing Exponential
Foresight (Singularity University, Executive
Education); Digital Marketing: Social Media,
Customer Engagement, Planning & Analytics
(Columbia University, Executive Education);
Artificial Intelligence: Strategies for Leading
Business Transformation (Kellogg University,
Executive Education). She has consulted in
strategic planning and commercial development
in CODELPA, Agrosuper, Placa Centro-
Masisa Latinoamérica, Vida Íntegra, B2B
Construmart, Polpaico, CIAL and IANSA.
Other positions: Currently she is director of
Cemento Polpaico S.A., Petrobras Chile Red
Ltda. and Laboratorio Petrizzio S.A. She is also
a partner of the consulting firm Go to Market,
Comercial Biancolatte S.A., Agrícola Génesis
Limitada and Inversiones Kandel Limitada.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Gonzalo Parot Palma
Independent
Non-Executive
Mariano Rossi
Non-Executive
Salvador Said Somavía
Member of the Controlling Group
Non-Executive
Appointment: He has been member of the
Board of Directors of the Company since 1992.
Experience: Business Administrator
from Universidad Gabriela Mistral, with
specialization in Business Management. He
was director of Envases del Pacífico S.A.
and Envases CMF S.A. He also participates
in non-profit foundations oriented to
entrepreneurship, such as Endeavor Chile,
which he chaired for six years and whose
Board of Directors he continues to serve on.
He is a member of the Board of Directors
of the Centro de Estudios Públicos (CEP).
He has 22 years of experience in the
beverage and mass consumption industry.
He has knowledge and experience in risk
management due to his position as director of
banks since 2011 and member of committees
related to that matter.
Other positions: Chairman of Scotiabank
Chile S.A. and director of Parque Arauco
S.A., Energía Llaima SpA, SmSalud S.A.,
Idelpa Energía S.A., Inversiones Sevillana
S.A., Inmobiliaria Atlantis S.A., Inversiones
del Pacífico S.A., and Administradora
Costanera S.A.
Appointment: He has been member of the
Board of Directors of the Company
since 2009.
Appointment: He has been member of the
Board of Directors of the Company since
June 2012.
Experience: Bachelor's in Business
Administration, School of Economics,
Universidad de Buenos Aires, specialized in
Finance. At The Coca-Cola Company he was
CFO in Spain, Latin America and General
Manager in Argentina; director in different
bottlers of the Coca-Cola System in Chile
(Embonor and Polar), Peru (JRL Lindley)
and Uruguay (Monresa) between 1999 and
2008. He has participated in Executive
Programs at the University of Michigan and
IESE (Switzerland), as well as in Executive
Development Programs at The Coca-Cola
Company of Emory & Wharton Universities
(USA). He has 30 years of experience in the
beverage and mass consumption industry.
Experience: Industrial Civil Engineer
and Economist of the Universidad de
Chile; Master's in Industrial Engineering,
Universidad de Chile; Master's in
Economics, University of Chicago; his areas
of specialization are Business Economics and
Finance. Previously, he served as Head of
Research at CCU S.A., Corporate Manager
of Research and Development in Empresas
CMPC S.A., Executive Chairman of Filiales
Envases y Productos de Papel CMPC
S.A.; General Manager and Director of
Pacific Pulp; Corporate General Manager
of CMPC Tissue S.A.; and Director and
Corporate General Manager of Copesa
S.A. In his career he has been renowned
as Director, Executive Vice President and
Advisor of the Municipal Corporation and
Municipal Theater of Santiago; Director of
the Asociación Nacional de la Prensa and of
the Cámara Chileno-Argentina de Negocios,
professor and director of the School of
Business and Economics of the Universidad
de Chile; professor and Dean of Economics
and Administration UGM. He has 16 years
of experience in the beverage and mass
consumption industry.
Other positions: Currently serves as
Director of AES Gener S.A.
Executive Committee
Culture, Ethics and Sustainability Committee
Directors' Committee
Sarbanes-Oxley Audit Committee
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Gonzalo Said Handal
Member of the Controlling Group
Non-Executive
Felipe Joannon Vergara
Non-Executive
Rodrigo Vergara Montes
Non-Executive
Appointment: He has been member of the
Board of Directors of the Company since
April 1993.
Appointment: He has been member of the
Board of Directors of the Company since
April 2018.
Appointment: He has been member of the
Board of Directors of the Company since
April 2018.
Experience: Business Administrator
from Universidad Gabriela Mistral, with
specialization in Finance, Best Practices
and Corporate Governance. He is a member
of the Board of Directors of Sofofa and
Chairman of the Board of Directors of
Fundación Generación Empresarial, from
where he promotes his vision on Corporate
Governance and good business practices.
He has 30 years of experience in the
beverage and mass consumption industry.
He has knowledge and experience in risk
management as a Business Administrator
and member of the Risk Committee of
Scotiabank Chile, as well as knowledge and
experience in sustainability as a member of
the Ethics and Sustainability Committee of
Embotelladora Andina S.A. and through
Fundación Generación Empresarial.
Other positions: Currently serves as director
of Scotiabank Chile S.A., Energia Llaima
SpA and of Holding de Empresas Said
Handal.
Experience: Business Administrator with
a major in Economics from Pontificia
Universidad Católica de Chile and MBA
from The Wharton School. Previously, he
was director of companies of Grupo Luksic;
Development Manager of Quiñenco S.A.,
General Manager of Viña Santa Rita and
Assistant General Manager of Cristalerías
de Chile S.A. In the academic field, he is a
professor at the School of Administration
and Economics of the Pontificia Universidad
Católica de Chile and at the ESE of the
Universidad de los Andes.
Other positions: Currently, he also sits on
the boards of Forestal O'Higgins (parent
company of the Matte Group), Quimetal
Industrial S.A., Icom Gestión Inmobiliaria
SpA, Altis S.A. AGF and Maquinarias y
Construcciones Río Loa S.A.
Experience: Business Administrator from
the Pontificia Universidad Católica de
Chile. Doctor in Economics from Harvard
University. Former President of the Banco
Central de Chile (2011-2016) and Director
of the same monetary entity (2009-2011).
He was a director of Moneda S.A., Moneda
AGF, Entel S.A. and Banco Internacional.
He has knowledge and experience in Risk
Management due to the functions he
developed in Banco Central. He exhibits
knowledge and experience in Sustainability
from his work in the monetary entity and
in the companies in which he has been
director. In the area of Cybersecurity, he has
knowledge and experience given that this is
an issue of the utmost relevance for Banco
Central, as well as for the banks in which he
has been director. In the academic field, he
is a professor at Instituto de Economía of the
Universidad Católica de Chile.
Other positions: Director of Banco
Santander Chile and Besalco S.A. He is a
Senior Economist at the Centro de Estudios
Públicos and an Associate Researcher at the
Mossavar-Rahmani Center for Business and
Government of Harvard University.
Diversity – Board of Directors
GENDER
NATIONALITY
AGE RANGE
Men
Women
Chilean
Foreign*
Younger than 30
Between 30 and 40
Between 41 and 50
Between 51 and 00
Between 01 and 00
Older than 00
Less than 3 years
Between 3 and 0 years
SENIORITY
Between 0 and 9 years
Between 9 and 12 years
More than 12 years
* 1 Argentinean, 1 Brazilian and 1 Puerto Rican.
12
1
10
3
0
0
0
9
4
0
4
2
2
1
4
0
0
0
Executive Committee
Culture, Ethics and Sustainability Committee
Directors' Committee
Sarbanes-Oxley Audit Committee
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
SEPARATION OF DUTIES
Pursuant to article 49 of the Chilean
Corporate Law, the position of manager is
incompatible with that of director. This is
stated in Article 17 of our Bylaws.
BOARD SESSIONS AND ACTIVITIES
Board sessions
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
Company's interests and needs, and in order
to cover all those issues that are relevant to the
development of the business. 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 at the session, except in cases where the
law or the Bylaws require a greater quorum, the
Chairman settling the result in case of a tie.
In 2020, from March to December (both
dates inclusive), the Board sessions were
held through technological means through
Microsoft Teams platform. This is pursuant
with the provisions of General Rule N° 450
issued by CMF.
95%
Average Attendance in 2020
Board of Directors' sessions
In person sessions
Virtual sessions
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Agenda 2020
The Company Board approved its annual
agenda in January 2020. The agenda
included various topics, such as employee
safety, interviews with external and internal
auditors, financial and sustainability issues,
among others. In addition, at the above-
mentioned Board session, the dates of the
meetings at which each of these matters will
be dealt with were approved. Finally, it was
stressed that the agenda does not exclude the
possibility of including additional subjects if
necessary or advisable.
Meetings with the external
audit companies
Our Board of Directors met with the
external audit firm in February, April, July
and December of 2020. For this purpose,
they were invited to participate in the Board
meetings in the aforementioned months
to discuss and report, among others, the
audit plan; any differences detected in
the audit regarding accounting practices,
administrative and internal audit systems;
any serious deficiencies detected and all
irregular situations that, due to their nature,
must be reported to the competent auditing
bodies; results and possible conflicts of
interest that may exist in the relationship
with the auditing firm or its personnel,
both for the rendering of other services to
the Company or its subsidiaries or affiliated
companies, as well as for other situations.
During the period, audit reports were
reviewed in four Directors' sessions.
The presence of the Company’s main
executives in these sessions is analyzed case by
case, depending on the subject to be discussed.
Induction and training
We have an induction procedure for new
directors. This procedure consists in that,
within 15 days after taking office, the Chief
Executive Officer of the Company delivers
to each new director an Induction Folder
containing documents and information on
various matters. It also includes an explanation
of the duties of care, reserve, loyalty, diligence
and information that, according to current
legislation, fall on each member of the Board
of Directors, and defines what is for this
Board a conflict of interest according to the
Company's Conflict of Interest Policy.
In addition, we have a formal training
mechanism for Board members, which
includes lectures, presentations and delivery
of materials.
During 2020, the Company hired the
services of the Diligent Boards platform
which contemplates a virtual library for the
Board of Directors containing an explanatory
memorandum about the duties of the Board of
Directors, which is part of the training process
carried out for directors in 2020.
Self-evaluation of the Board of Directors
The Board of Directors has an agreement
that allows it to detect and implement
improvements, as well as to determine areas
in which it can be strengthened.
Once a year, on a date to be set by the Board
of Directors, a special item on the agenda is to
enable the directors to express their opinion
and give their views on any opportunities for
improvement that they may have detected in
the functioning of the Board as a whole.
At said meeting, the Board of Directors
shall review the measures proposed by its
members and shall decide by the majority of
the directors present at the respective meeting
whether or not it deems it appropriate to
implement those measures that have been
submitted for review and analysis.
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7
9
The measures whose implementation has been
approved by the Board of Directors shall be
recorded in the minutes.
In addition to the foregoing, the Directors'
Committee, prior to the Board meeting
mentioned in the preceding paragraph, shall
analyze the advisability of the Board of
Directors to have external advice, through
a person from outside the Company (the
"External Advisor") who shall be in charge
of reviewing, detecting and suggesting to the
Board of Directors the implementation of
eventual improvements to its operation as a
whole, and shall inform the Board of Directors
of its opinion in this respect. Once the opinion
of the Directors' Committee has been received,
the Board of Directors shall decide on the
hiring of the External Advisor.
During this period, this activity was carried
out in the session held on July 28, 2020.
Expenses
For the year ending on December 31, 2020,
the Directors had expenses for CLP 415
million, related with audits and legal counsel,
among other matters.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 REMUNERATION – BOARD OF DIRECTORS
COMMITTEES
BOARD OF DIRECTORS
COMPENSATION
EXECUTIVE
COMMITTEE
DIRECTORS' AND AUDIT
COMMITTEE (SOX)
TOTAL
CLP (millions)
CLP (millions)
CLP (millions)
CLP (millions)
2020
2019
2020
2019
2020
2019
2020
EXECUTIVE COMMITTEE
CULTURE, ETHICS AND SUSTAINIBILITY COMMITTEE
Juan Claro González1
Arturo Majlis Albala 2
Gonzalo Said Handal
Jose Antonio Garcés Silva
Salvador Said Somavía
Eduardo Chadwick Claro
Gonzalo Parot Palma 3
2019
144
72
72
72
72
72
72
Marco Antonio Fernandez De Araujo 4
22.6
Rodrigo Vergara Montes
Mariano Rossi
Roberto Mercadé Rovira
Georges de Bourguignon Arndt
Enrique Rapetti 5
María del Pilar Lamana Gaete 3
Felipe Joannon Vergara
72
72
49.4
72
72
72
72
72
72
72
72
72
144
54
72
72
72
72
72
51
72
72
72
72
24
72
72
0
54
72
72
72
72
0
0
0
0
0
0
0
0
0
0
0
0
0
24
0
24
0
0
0
0
0
0
24
0
72
144
144
144
144
160
144
96
22.6
72
72
49.4
72
72
96
72
144
100
144
144
160
144
96
51
72
72
72
72
24
96
72
1,512
1,479
24
24
24
72
GROSS TOTALS
1,080
1,065
360
342
1. Includes an additional CLP 72 million as Chairman of the Board of Directors.
2. Left the Board of Directors in September of 2020.
3. He is an independent director of the Board of Directors of the Company, according to current regulations.
4. Joined the Board of Directors in April of 2020.
5. Left the Board of Directors in April of 2020.
Date Created
This Committee was created in the Board of
Directors session of April 22, 1986.
Date Created
This committee was created in the Board of
Directors session of January 28, 2014.
Objectives
Its role is to monitor the Company's
general business operation and through
regular sessions, exercise control over its
operations on a permanent basis, in addition
to proposing guidelines concerning the
Company's business management.
Members:
It is currently formed by the
following members:
Mr. Eduardo Chadwick Claro
Mr. Jose Antonio Garcés Silva
Mr. Gonzalo Said Handal
Mr. Salvador Said Somavía
Mr. Juan Claro González
Mr. Miguel Ángel Peirano
Sessions
The Committee meets monthly throughout
the year. In 2020, 12 sessions were held, of
which two were held in person and 10 were
held virtually.
Expenses
During 2020, this Committee did not
have expenses.
0
0
0
Objectives
Within the duties and responsibilities are
those to: receive, accept and investigate reports
of irregularities referred to in the Crime
Prevention Law No. 20,393 (and its subsequent
amendments) and recommend actions to follow
in each case; establish and develop procedures
to promote the ethical conduct of employees
of the Company; monitor compliance with the
provisions of the Code of Ethics, resolve any
questions and conflicts that its application may
generate; and establish mechanisms for the
distribution of the Code of Ethics and general
materials about ethical matters.
Members:
It is currently formed by the
following members:
Mr. Jose Antonio Garcés Silva
Mr. Gonzalo Said Handal
Mr. Felipe Joannon Vergara
The Chairman of the Board of Directors is
member by his or her own right.
Sessions
The Culture, Ethics and Sustainability
Committee of Embotelladora Andina S.A.
meets monthly with guests of the different
operations, who present what has been done
about these matters.
Expenses
During 2020, this Committee did not
have expenses.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Sessions
The resolutions, agreements and organization
of the Sarbanes-Oxley Audit Committee are
regulated by the rules related to the Directors'
Committee and Board of Directors Meetings
of the Company. Since its establishment, the
Sarbanes-Oxley Audit Committee has met
jointly with the Directors' Committee, as its
functions are very similar and the members of
both Committees are the same.
Expenses
Finally, it is reported that during 2020,
the Sarbanes-Oxley Audit Committee had
expenses of CLP 66,502,396.
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0
DIRECTORS' COMMITTEE
Creation Date
Pursuant to Article 50a of Chilean Corporate
Law No. 18,046, and in accordance with
Circular No. 1,956 and with the Chilean
Financial Market Commission, the current
Directors' Committee was elected in a Board
of Directors session held on April 26, 2018.
Members:
Said Committee is formed by Directors Pilar
Lamana Gaete and Gonzalo Parot Palma
(both in their positions as independent
directors), and Salvador Said Somavía.
The Chairman of the Directors' Committee
of the Company is Gonzalo Parot Palma.
Between April 30, 2013 and April 26, 2017, the
Directors' Committee was composed of Gonzalo
Parot Palma (as Chairman and independent
director), Arturo Majlis Albala and Salvador
Said Somavía. Between April 26, 2017 and April
26, 2018, it was composed of Pilar Lamana,
Gonzalo Parot both as independent Directors,
(and the latter in his capacity as Chairman) and
Salvador Said Somavía.
Activities
Pursuant to article 50 bis of the Chilean
Corporate Law No. 18,046, the tasks
implemented by the Directors' Committee
of Embotelladora Andina S.A. are described
herein. During 2020 the Committee developed,
among others, the following activities:
• Examination of external auditors reports, balance
sheets and other financial statements presented by the
managers of the Company, expressing their opinion
on them, prior to submitting them to the approval of
shareholders.
• Analyze and prepare the proposal of external auditors
and private rating agencies for the Board of Directors,
which were suggested to the respective Shareholders’
Meeting.
• Background examination of the operations referred to
in Title XVI of Law No. 18,046 and issue a report on
those operations.
• Examination of the Company’s remuneration systems
and compensation plans for managers, principal officers
and employees.
• Review anonymous complaints.
• Review and approve the 20-F Report and compliance
with Rule 404 of the Sarbanes-Oxley Act.
• Prepare the budget proposal for the Committee’s
operation.
• Review Internal Audit Reports.
• Periodic interviews with the Company’s external
auditors’ representatives.
• Interview Human Resources Managers.
• Review of the operational budget between Related
Companies (production Joint Ventures).
• Review Corporate Insurance
• Review and approve every press release that refer to the
Company’s communications.
• Review of the Company’s four Operations’s Internal
Control Standards, including Critical Risks in
Accounting Processes, Compliance with Corporate
Policies, Tax Contingencies, and status of Internal and
External Audit Observations.
• Analyze Management and Risk Control Model.
• Review Crime Prevention Law No. 20,393 Model
• Review advances in Cybersecurity and Information
Technologies.
• Review judicial procedures and contingency analysis.
• Review tax situation.
• Analyze possible Corporate Governance improvements.
• Prepare the Annual Management Report.
Expenses
Finally, it is reported that during 2020, the
Directors' Committee had expenses of CLP
157,213,029. Said expenses are related to
advisory services provided in areas of free
competition and legal, among other expenses.
SARBANES-OXLEY AUDIT COMMITTEE
Creation Date
According to SEC and NYSE requirements
regarding compliance with the Sarbanes-Oxley
Act, the Board of Directors constituted the
Audit Committee on July 26, 2005. The current
Audit Committee was elected in a Board of
Directors session held on April 26, 2018.
Objectives
The Sarbanes-Oxley Audit Committee
is responsible for analyzing financial
statements; supporting financial oversight
and accountability; ensuring that
management develops reliable internal
controls; ensure that the Audit Department
and independent auditors fulfill their
respective roles; and review the Company’s
auditing practices. Its composition and
terms of reference are set out in the Rules
of Procedure of the Sarbanes-Oxley Audit
Committee, which is available on our website
www.koandina.com.
Members
Mrs. Pilar Lamana Gaete
Mr. Gonzalo Parot Palma
Mr. Salvador Said Somavía
Mrs. Pilar Lamana Gaete and Mr.Gonzalo Parot
Palma comply with the independence standards
established in the Sarbanes-Oxley Law, and the
rules of the SEC and the NYSE. Mr. Parot
was designated by the Board of Directors as
financial expert pursuant to the definition of
the NYSE standards and
Sarbanes-Oxley Law.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 PRINCIPAL OFFICERS - EXPERIENCE AND REMUNERATION
EXPERIENCE
Miguel Ángel Peirano
Chief Executive Officer
Andrés Wainer
Chief Financial Officer
Jaime Cohen
Chief Legal Officer
Gonzalo Muñoz
Chief Human Resources Officer
Martín Idígoras
Chief Information Technology Officer
Electronic Engineer from the
Instituto Tecnológico de Buenos
Aires; he has postgraduate studies
at Harvard Business School and
Stanford University. He joined the
Company and became Executive
Vice President in 2011. Previously,
he was Senior Engagement Manager
at McKinsey & Company and was
President of Coca-Cola Femsa
Mercosur.
Business Administrator with a major
in Economics from the Pontificia
Universidad Católica de Chile; he has
a Master's degree in Finance from The
London Business School. He joined the
Company in 1996 and since 2010 he has
been Chief Financial Officer. Previously,
he was Development Manager at
Coca-Cola Andina Argentina,
Administration and Finance Manager at
Coca-Cola Andina Chile and Research
and Development Corporate Manager at
the Corporate Office.
Lawyer from the Universidad de
Chile and the University of Virginia,
United States; throughout his career
he has specialized in Corporate
and Financial Law. He joined the
Company in 2008. Previously, he was
Manager of Legal Affairs at Socovesa
S.A. (2004-2008); Corporate
Banking Lawyer at Citibank N.A.,
Santiago de Chile (2000-2004);
International Associate at Milbank,
Tweed, Hadley & McCloy, New
York (2001-2002); Associate Lawyer
at Cruzat, Ortúzar & Mackenna,
Baker & McKenzie (1996-1999)
and Lawyer in the area of Financial
and Real Estate Advisory at Banco
Edwards (1993-1996).
Auditor Accountant from
Universidad de Chile; throughout
his professional career he specialized
in the areas of Human Resources,
Finance, General Management
and Trade Marketing. He joined
the Company in 2015. Previously,
he was Director of Finance,
General Manager and Director
of Human Resources in various
Latin American countries in British
American Tobacco. He has also
served as a professor of Marketing at
Universidad de Chile.
Bachelor's degree in Systems from
Universidad John F. Kennedy in
Argentina, with a specialization in
Information Technology. He joined
the Company in 2018. Previously
he worked for 17 years at Cencosud.
During that time he served as CIO
for the Home Improvement Division
(2015-2018), Regional Manager of the
SAP Center of Expertise (2014-2015)
and CTO for the Home Improvement
Division (2015-2018) and Regional
CTO (2010-June 2014). He also
worked in different Technology
positions in the companies Correo
Argentino and Arcor.
Fernando Jaña
Chief Strategic Planning Officer
Industrial Civil Engineer from
Universidad Adolfo Ibáñez, he
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, Australia.
He joined the Company in 2014 and
has held his current position since
2019. He was General Manager of
Coca-Cola del Valle, Manager of
Innovation and Projects in Coca-Cola
Andina Chile, eCommerce Manager
at Cencosud Supermercados and
Logistics and Distribution Manager
at CCU. He has also worked as a
teacher and researcher at Universidad
Adolfo Ibáñez.
José Luis Solórzano
General Manager
Coca-Cola Andina Chile
Fabián Castelli
General Manager
Coca-Cola Andina Argentina
Renato Barbosa
General Manager
Coca-Cola Andina Brazil
Francisco Sanfurgo
General Manager
Coca-Cola Paresa
Business Administrator from
Universidad Adolfo Ibáñez,
with specialization in the areas
of Marketing and Finance. He
joined the Company in 2003 and
since 2014 he has been General
Manager of Coca-Cola Andina
Chile. He previously held the
positions of General Manager of
Coca-Cola Andina Argentina and
Commercial Manager of
Coca-Cola Andina Chile. Prior to
that, he was Commercial Manager
of Coca-Cola Polar.
Industrial Engineer from Universidad
Nacional de Cuyo, with specialization
in the Management Development
Program at IAE, Argentina,
and Donald R. Keough System
Leadership Academy. He joined the
Company in 1994 and since 2014 he
has been General Manager of
Coca-Cola Andina Argentina.
Previously he held the positions of Head
of the Mendoza Sales Department,
Business Development and Planning
Manager, Marketing Manager and
Commercial Manager. He was also
Director of AdeS in Argentina, Vice
President of Asociación de Fabricantes
Argentinos de Coca-Cola (AFAC)
and Director of Cámara Argentina
de Industria de Bebidas sin Alcohol
(Argentine Chamber of Non-Alcoholic
Beverages Industry).
Economist from Universidade
do Distrito Federal Brazil, with
specialization in Business. Post
Graduação em Negocios FGV São
Paulo, Brazil / MBA Marketing
FGV Rio de Janeiro, Brazil. Joined
the Company in 2012 as General
Manager of Coca-Cola Andina
Brazil. Previously held the position
of General Manager of Brasal
Refrigerantes (Coca-Cola bottler in
the central-eastern region of Brazil).
Mechanical Engineer from
Universidad de Concepción, with a
specialization in Project Management
from Universidad Adolfo Ibáñez. He
joined the Company in 1988, and has
been General Manager of Coca-Cola
Paresa since 2005. Previously, he was
Manager of Commercial Dimetral
in Punta Arenas, Branch Manager of
Citicorp Punta Arenas and General
Manager of Cervecería Austral in
Punta Arenas.
0
8
0
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Diversity of the General Management area
and other Management areas Reporting to this
Management area
GENDER
NATIONALITY
AGE RANGE
Men
Women
Chilean
Foreign*
Younger than 30
Between 30 and 40
Between 41 and 50
Between 51 and 00
Between 01 and 00
Older than 00
Less than 3 years
Between 3 and 0 years
SENIORITY
Between 0 and 9 years
Between 9 and 12 years
More than 12 years
* 3 Argentinean and 1 Brazilian.
10
0
0
4
0
0
4
4
2
0
2
1
4
1
2
REMMUNERATION
The Company's Senior Management Group
consists of the Company's Chief Executive
Officer and the nine officers who directly report
to him, which are the Corporate Officers and
the General Managers of the Operations.
For Principal Officers, the compensation plans
are composed of a fixed compensation and a
performance bonus, which are adapted to the
reality and competitive conditions of each
market, and whose amounts 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 the Company are
met, which are previously defined for each
particular case.
For the Company's Chief Executive Officer, the
main KPIs are Consolidated EBITDA, Net
Income, Consolidated Cash Flow and Capex.
For General Managers of Operations, the main
KPIs are EBITDA generated by their operation
in local currency, consolidated EBITDA in
Chilean pesos, participation in the NARTD
market share, people safety and certain personal
goals in the event that the Company's Chief
Executive Officer so determines.
Finally, for Corporate Officers, the main
KPIs are Consolidated EBITDA in Chilean
pesos and certain personal goals in the event
that the Company's Chief Executive Officer
so determines.
Particularly, for those Principal Officers who, by
the nature of their position, are directly related
to the Company's investors, there is a payment
scheme for their performance bonus that is partly
deferred over four years and, on the other hand,
indexed to the Company's share price.
Finally, within the compensation structure
for certain Principal Officers, there are
permanence bonuses, which are paid out upon
completion of the agreed terms of service.
For the fiscal year ended December 31, 2020,
the amount of fixed remuneration paid to
the Principal Officers of Coca-Cola Andina
amounted to CLP $4,858 million (CLP 4,167
million in 2019). This growth is explained
by an increase in the exchange rate (Chilean
peso regarding the U.S. dollar) in 2020 versus
2019, which has an upward impact on fixed
remuneration in 2020. On the other hand, the
amount of remuneration paid for performance
bonuses amounted to CLP 2,817 million (CLP
2,407 million in 2019).
0
0
3
During the fiscal year ended December 31,
2020, no severance indemnities were paid to
the Company's Principal Officers.During the
fiscal year ended December 31, 2019, the
amount paid for severance indemnities to the
Company's managers and Princial Officers
amounted to CLP 55 million.
At the consolidated level, the proportion of the
average base gross salary of all women within
the company relative to men is 103.2%. The
proportion of the average base gross salary of men
executives to women executives is 80.0%, while
for other employees, the proportion of women
workers’ average base gross salary to male workers
is 104.3%. We have worked with a grouping of
positions based on the Hay Grades methodology
for calculating this salary ratio. This methodology
considers the equivalent responsibility of each
position, so that the higher the Hay Grade, the
compensation is greater. In addition, wage bands
exist for each grade, so in the same position wages
are equivalent. Since men's participation in senior
management positions is greater in the executive
group and executives in general, this situation
explains the pay gap in that group.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
RISK MANAGEMENT ACTIVE, FLEXIBLE DYNAMIC
and
Monitoring and
continuous survey:
The actions taken are incorporated
into the processes, considered in
the strategies and budgets, and
permanently monitored in order
to guarantee their continuity
and effectiveness.
Risk management
design strategy: This stage is
key, as it allows developing a
management culture focused
on the relevant risks.
Improvement and implementation
of risk response plans:
Annually, the Internal Audit area
verifies and draws conclusions
from mitigation plans.
Structure design, policy
and methodology:
Through it, the organizational
structure and regulatory body
necessary to achieve risk
management governance is kept
up to date.
0
0
0
0
8
0
We have a Risk Management Model
that reaches all the Company's
operations and collaborators. We
promote a culture where everyone is
responsible for this management.
RISK MANAGEMENT MODEL
Our comprehensive risk
management process is constantly
evolving. This model allows us
to establish governance and a
regulatory body applicable to the
entire company. The stages are:
Approval of the risk
response plan:
For high criticality risks the
process establishes escalating
them to the corporate level and
to the Board of Directors, since
these are the bodies in charge of
approving mitigation plans
and residual risks.
Critical analysis,
benchmarking and feedback:
We continuously perform analysis
for the incorporation of new risks
and the review of mitigation
plans.
Identification and assessment
of risk and mitigation plans:
For each identified risk, the
probability and impact of its
potential materialization are
estimated, which allows prioritizing
them and establishing actions to
mitigate them.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
GOVERNANCE OF THE RISK MANAGEMENT PROCESS
The Board of Directors has overall responsibility for risk, but it is the Corporate Internal
Audit area and the Corporate Risk and Sustainability Committee that evaluate the
effectiveness of the systems and define the risk appetite, respectively, so that it is aligned with
the Company's objectives. The structure that provides governance to the risk management
process is as follows:
Board of Directors and Audit Committee
Its main duties include safeguarding
the Company's value in face of
various risks, enhancing the risk
management culture, and knowing and
understanding the relevant risks.
OPERATIONS
General managers and their
first line are responsible for
the adequate management
of relevant risks, both at the
operational level and within
their area of responsibility.
CORPORATE RISK AND
SUSTAINABILITY COMMITTEE
Must mitigate the risks that
may arise in the development
of the Company’s activities and
that may affect the objectives
established by the Board of
Directors.
INTERNAL AUDIT
Reports to the Audit
Committee and verifies
that mitigation actions are
implemented.
RISK MANAGEMENT BOARD
It is a coordinating body that meets
periodically and works on the
standardization of identification
criteria, improvements in risk
assessment methodologies, and
encourages the sharing of best
practices and lessons learned.
CORPORATE TEAM
Corporate Officers are
responsible for the adequate
management of relevant risks,
both at Company level, and
at the level of their area of
responsibility.
CORPORATE RISK AND SUSTAINABILITY
COMMITTEE
Members:
• Chief Executive Officer
• Chief Legal Officer
• Chief Financial Officer
• Chief Human Resources Officer
• Management Control, Risk and
Corporate Sustainability Manager, who
also serves as Executive Secretary.
Each year, the following topics,
among others, are presented to
the Board of Directors:
• Operation of the risk management process.
• Risk matrix, methodologies for
detecting new risks and probability and
impact of the most relevant events, and
their consequences for the Company.
• Recommendations and improvements
that should be made to better manage
the identified risks.
• Contingency plans designed to respond
to the implementation of critical events,
including continuity in crisis situations.
RISK MANAGEMENT BOARD
During the Risk Management Board session,
the lessons learned from risk events that
took place in the Operations are raised
and presented. In these meetings, the
presentation is made by the area responsible
for the risk to be analyzed, and the areas
involved in the rest of the Operations are
invited. The following aspects are discussed
for each risk event:
• Actions taken to resolve it.
• Estimated environmental, social, economic
and legal impact of the event.
• Survey of lessons learned.
• Changes are proposed to the risk matrix,
considering definition, evaluation,
mitigation actions, responsible parties and
risk causes and effects.
0
8
5
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 MAIN RISKS
Our risk matrix is organized into different pillars. Below are the main risks we identified and their relationship with the pillars of our matrix, with the individual risks and the material issue.
MAIN RISKS
DESCRIPTION
RISK PILLARS
IMPACT ON THE BUSINESS
RELATED MATERIAL ISSUE
MITIGATION ACTIONS
Supply of returnable
bottles
Failure in the supply of
returnable bottles.
∙ Industrial continuity
∙ Plant shutdown.
Sustainable packaging and
waste management.
∙ Matrix of strategic suppliers, with existing mitigation
actions, such as stock policies.
∙ Impact on sales.
∙ Alternative suppliers.
∙ Maintain a stock in suppliers.
∙ Analysis of new suppliers.
Fail to collect/recycle
bottles
Lack of efficiency in
collecting/recycling bottles.
∙ Industrial continuity
∙ Damage to corporate image
Sustainable packaging and
waste management.
∙ Encourage consumption of Returnables.
∙ Environment
∙ Relationship with the
community
∙ Negative exposure on
advertising/social media
outlets
∙ Impact on sales
∙ Dissemination of good internal waste management
practices and support for initiatives with stakeholders.
∙ Communication of the actions carried out in our own and
third-party social networks and Coca-Cola Journey.
Pollution from waste
Contamination stemming
from failure or non-
compliance of waste
treatment.
∙ Industrial continuity
∙ Sanctions, fines
∙ Environment
∙ Damage to corporate image
∙ Relationship with the
∙ Negative exposure on
community
advertising/social media
outlets.
∙ Impact on sales.
Sustainable packaging and
waste management.
∙ 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
We depend on maintaining an
adequate diversity of products
to meet the preferences
and demands of clients and
consumers.
∙ Relationship with the
∙ Impact on sales.
community
Quality and product
excellence.
∙ Constant product development in line with changes in the
consumption habits of the population.
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DESCRIPTION
RISK PILLARS
IMPACT ON THE BUSINESS
RELATED MATERIAL ISSUE
MITIGATION ACTIONS
Changes in brand image
and product quality.
Perception that products are
not of good quality or are
damaging to health, affecting
the brand's image
∙ Relationship with the
∙ Damage to corporate image
community
Quality and product
excellence.
∙ Portfolio Development: strengthen healthy, low or sugar-
free proposals.
∙ Negative exposure on
advertising/social media
outlets
∙ Impact on sales
Instability in the supply of
raw materials and oil prices.
PET bottles are manufactured
on the basis of oil by-products.
∙ Industrial continuity
∙ Cost volatility of PET
bottles.
∙ Financial Risk
Failures in the production
and/or distribution of
products.
Our products are not
available to customers/
consumers.
∙ Contractors
∙ Damage to corporate image
∙ Industrial continuity
∙ Negative exposure on
Quality and product
excellence.
Quality and product
excellence.
advertising/social media
outlets
∙ Impact on sales
∙ Increased production costs
to ensure the quality of
products offered.
Water shortages, pollution
and poor water quality.
Water is one of the main raw
materials for our products.
∙ Relationship with the
community
∙ Environment
∙ Product sabotage
∙ Industrial continuity
∙ Delivery of the nutritional information of our products.
∙ Assessments of the perception of our brand reputation,
environmental and community programs.
∙ Communication of the actions carried out in our 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.
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Water management.
∙ Ensure stable sources of supply.
∙ Increase efficiency/reduce the use of water during
production.
Dependence on the
relationship with
The Coca-Cola Company.
Andina purchases
concentrate from TCCC
pursuant to a bottling and
distribution agreement.
∙ Industrial continuity
∙ Inability to access
concentrate for soft
drinks and loss of TCCC
marketing support
Relationship with
stakeholders.
∙ Joint planning process with The Coca-Cola Company,
coordination of campaigns and launches; joint execution of
projects.
∙ Participation in the CEPG for the planning and
development of purchases of critical supplies.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 C h a p t e r
7 MARKET
INFORMATION
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"Let's start over, valuing the
simple things that surround us and
that are the most important"
0
WE ARE
COCA-COLA ANDINA
0
SUSTAINABLE VALUE
CREATION STRATEGY
3
A TOTAL BEVERAGE
COMPANY
0
OUR VALUE
CHAIN, RESOURCE
MANAGEMENT
5
FLEXIBILITY AND
COMMITMENT
6
CORPORATE
GOVERNANCE
7
INFORMATION FOR
THE FINANCIAL
MARKET
8
OUR COMPANY
9
PRINCIPAL
METRICS
00
EXHIBITS
REGULATORY FRAMEWORK
Embotelladora Andina S.A. is an open
stock corporation, incorporated and current
in accordance with Chilean law. As such,
Embotelladora Andina S.A. is subject to
the rules of Chile's Securities Market Law
No. 18.045, and the Law on Corporations,
Law No. 18.046, and its Regulations, as well
as the rules dictated for this purpose by the
Chilean regulatory authority, the Comisión
para el Mercado Financiero (Financial Market
Commission-CMF).
As issuer of Depositary Receipts of the
New York Stock Exchange, Embotelladora
Andina S.A. is also subject to the rules of the
Securities Exchange Act of 1934, the Foreign
Corrupt Practices Act, Sarbanes-Oxley Act
of 2002, and the rules issued by the Securities
and Exchange Commission and the New York
Stock Exchange.
Furthermore, our operations in Argentina,
Brazil, Chile and Paraguay are subject to
and must comply with the rules specifically
applicable to the activities and businesses
they carry out, including the following:
Argentina: (i) National Law No. 18.284,
Argentine Food Code regulating everything
related to the processing, import, and
commercialization of food and beverages;
(ii) National Law No. 24.788 and its
regulatory decrees, which regulate the sale and
consumption of alcoholic beverages and their
advertising; and (iii) Regulatory Decree No.
149/2009 and its amendment by Decree No.
688/2009, which regulates everything related
to the advertising of alcoholic beverages.
Brazil: (i) Federal Law No. 8.918 dated July
14, 1994 providing for the standardization,
classification, registration, production and
inspection of beverages, authorizing the
establishment of the Intersectoral Beverage
Commission and other measures; (ii) Federal
Decree No. 6.871 dated June 4, 2009, which
governed Federal Law No. 8.918 dated July
14, 1994 establishing the standardization,
classification, registration, production and
inspection of beverages; (iii) Decree Law No.
986 dated October 21, 1969, which introduced
basic food standards; (iv) Decree Law No.
7.841 dated August 8, 1945, which introduced
the Mineral Water Code; (v) Federal Law No.
6.437 dated August 20, 1977, which defines
violations of federal health law and establishes
the respective sanctions and other actions;
(vi) Resolution No. 23 of the Ministry of
Health dated March 15, 2000 establishing the
Guide of Basic Procedures for the Registration
and Exemption of the Requirement for the
Registration of Products Relevant to the Food
Area; (vii) Resolution MAPA RDC No. 27
dated August 6, 2010 and Resolution MAPA
RDC No. 240 dated July 26, 2018 establishing
categories of exempted food and packaging
with mandatory health registration;
(viii) Resolution MAPA RDC No. 204 dated
July 6, 2005 regulating the procedure for
requests under analysis by ANVISA's technical
sectors and repealing Resolution MAPA RDC
No. 349 dated December 3, 2003; (ix) MAPA
Regulatory Instruction No. 72 dated November
16, 2018 approving administrative requirements
and procedures for the registration of
establishments and products; and (x) MAPA
Regulatory Instruction No. 34, dated October
21, 2015, which establishes, within the scope
of the Ministry of Agriculture, Livestock and
Supply-MAPA, the Integrated Electronic
System of Agricultural Products and
Establishments-SIPEAGRO.
Chile: (i) Standards of the Food Health
Regulations contained in Decree No. 977 of
the Ministry of Health of 1997, and in the
Health Code; (ii) Rules of the Mineral Water
Regulations contained in Decree No. 106
of the Ministry of Health of 1997, Mineral
Water Regulations; (iii) Law on the Nutritional
Composition of Food and its Advertising, Law
No. 20.606; Decree No. 13 of the Ministry
of Health dated June 26, 2015 and Law on
Food Advertising, Law No. 20.869; (iv) Laws
regulating the production, manufacture,
commercialization, sale and consumption
of alcoholic beverages, Law No. 18.455 and
Law No. 19.925; and (v) Law establishing the
framework for waste management, extended
producer responsibility and promotion of
recycling, Law No. 20.920.
Paraguay: (i) Law No. 836/80, Health
Code; (ii) Law No. 1.334/98 on Consumer
and User protection; (iii) Law No. 1.333/98
on Advertising and Promotion of Tobacco and
Alcoholic Beverages; (iv) Law No. 1.642/00
prohibiting the sale of alcoholic beverages to
minors and prohibiting their consumption on
public roads; and (v) Decree of the Executive
Branch No. 1.635/99 and Resolution of the
Ministry of Public Health and Social Welfare
No. 643/12, which regulate aspects relating
to the registration of food products and their
amendments, among others.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 LEGAL
INFORMATION
Company Incorporation
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 CLP 21,724,544, and was divided into
473,289,301 Series A shares and 473,281,303
Series B shares.
Summary and Comments
of Shareholders and the
Directors’ Committee
As prescribed in General Standard No. 30 of
the CMF and Article 74 of Law No. 18,046
on Corporations, 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 2020 General Shareholders'
Meeting recorded comments made by all
shareholders who expressed their opinion
during the course of that meeting.
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SHAREHOLDERS’ MEETING
At Coca-Cola Andina we are concerned
about promoting an active participation of all
our shareholders, particularly at the General
Shareholders’ Meeting, where annually we
account for our management.
As a result of the COVID-19 crisis and as
reported to shareholders and the Financial
Market Commission (CMF), the Company's
Board of Directors approved the remote
conduction of the 2020 General
Shareholders' Meeting.
We want to guarantee the remote
participation of all shareholders, using voting
mechanisms that properly ensure the identity
of shareholders, and protect the principles that
voting is made simultaneously and in secret.
We reached a quorum of 90.6% with
857,850,236 shares represented.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 COMMUNICATION
iNVESTORS
with
We have an exclusive Investor Relations area
that pursues to build trusting and long-term
relationships with investors and potential
investors of the Company. Its mission is to
deliver transparent, relevant, timely and
quality information to all investors, regardless
of their size, on the main strategic, financial,
operational issues, and our management in
ESG matters, to keep them properly updated
regarding the progress of the business.
We are committed to transparency in
communication to investors, the market
and all stakeholders. To do this, we provide
information in accordance with their
requirements, ensuring that it is communicated
in accordance with the regulations established
by the Commission for the Financial Market
in Chile and the Securities and Exchange
Commission of the United States.
Duty of diligence and care principle
This principle refers to the care and control
work performed by the Company to ensure
that the information provided to the market
is correct.
Main communication channels
with the market
I. Our website.
II. The Investor Relations app, available on
the App Store and Google Play
III. Participation in local and international
conferences (in person and remote).
Transparency Principle
Available on our website are:
I. Company Quarterly Financial Information
i. Results Report.
ii. FECU: Financial Statements
IV. Requested conference calls.
iii. Audio of the conference call results in
Spanish and its transcript into English.
II. Corporate presentations of quarterly
results and others.
V. One-on-one meetings: with all investors
and analysts who require it.
VI. Inquiries via email and phone.
III. Integrated Report.
IV. 20-F.
V. The main news, releases and material
events.
VI. Contact details of the Investor
Relations team.
Relevant and timely information
We pursue to provide timely information to
all of our investors to keep them properly
updated regarding:
I. The operation and progress of
the Company.
II. Our future plans.
III. Other relevant facts.
VII. On the occasion of the quarterly
publication of financial results, the Investor
Relations area organizes a results conference,
involving the CEO and CFO, and taking
questions from investors and market analysts.
VIII. In addition, we have strengthened
communication with investors and industry
analysts through visits to our production
plants, distribution centers and the market.
Metrics of our management
• We had over 300 contacts with analysts
and investors in 2020, with an average of
5.7 contacts per week. In approximately 30%
of the contacts, the Company's CEO or
CFO participated. In 2020, considering the
situation of the COVID-19 pandemic we
live in, approximately 99% of the meetings
were virtual.
• Visits to the Company. We receive in our
offices those analysts and investors who
require it, either in individual meetings or
in small groups, making additional visits
to the production plants, if requested.
In addition, the General Shareholders'
Meeting is held at our main office in Chile,
where we receive our shareholders to present
the annual account of the Company. In
2020, given the COVID-19 pandemic, we
received no request to visit our production
plants, and the General Shareholders'
Meeting was held virtually.
• Quarterly teleconferences of analysis of the
Company's results, where approximately 60
analysts and institutional investors from all
over the world connect.
• Attendance at local and international
conferences organized by the main
investment banks, which primarily contact
institutional investors, portfolio managers
and market analysts.
• Non-deal roadshows are organized to visit
current or potential investors in different
financial centers around the world, as well as
our leading U.S.-based research analysts. In
2020 we conducted an in person roadshow
in Europe, the United States and Chile,
on the occasion of the placement of the
international bond in the U.S. market, and
three virtual non-deal roadshows, where we
met with representatives of more than 80
institutional funds and research analysts.
Our Investor Relations Management area is
available to address any concerns about the
Company, whether in Spanish or in English,
via email: andina.ir@koandina.com.
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AVERAGE PRICE AND AMOUNT TRADED
2020
MARKETS ON WHICH OUR SHARES ARE TRADED
The Company's shares have been traded on the Bolsa de Comercio de
Santiago (Santiago Stock Exchange) since 1955. The registration number
in the Securities Register is 00124, in the Securities Register. In 1997
Coca-Cola Andina performed a stock split into Series A and Series B shares.
mnemonic codes for the Santiago Stock Exchange are Andina-A
and Andina-B. The Stock Department in Chile is managed by SerCor
(www.sercor.cl).
The Company's ADRs have been traded on the New York Stock Exchange
since 1994. An ADR is equivalent to six common shares. In 1997 Coca-
Cola Andina performed a stock split into Series A and Series B 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.
Bolsa de
Comercio
de Santiago
Bolsa
Electrónica
de Chile
0ST QUARTER
0ND QUARTER
3RD QUARTER
0TH QUARTER
0ST QUARTER
0ND QUARTER
3RD QUARTER
0TH QUARTER
Source: Certificates from each Stock Exchange
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, 2020 (base 100).
PRICE OF SHARES TRADED IN CHILE
2020
ANDINA - A
Total
TRADED
(CLP MILLION)
5,008
00,300
0,700
36,303
60
0
300
300
AKO/A
Total
TRADED 0
(USD MILLION)
0.5
0.8
0.9
0.8
SHARES
TRADED
(MILLION)
3.0
7.3
3.0
05.0
0,0
-
0.0
0.0
ADRs
TRADED
(MILLION)
0.0
0.0
0.0
0.0
AVERAGE
PRICE
CLP
SHARES
TRADED
(MILLION)
0,700
0,550
0,606
0,039
0,538
0
0,607
0,068
AVERAGE
PRICE
USD
00.9
00.6
00.3
0.6
60.0
75.0
76.0
90.0
0.5
0.0
00.0
3.0
ADRs
TRADED
(MILLION)
0.7
0.0
0.3
0.0
ANDINA - B
Total
TRADED
(CLP MILLION)
000,006
007,009
039,905
058,508
0,870
0,677
05,976
5,060
AKO/B
Total
TRADED 0
(USD MILLION)
00.0
5.9
0.0
06.7
AVERAGE
PRICE
CLP
0,996
0,905
0,807
0,696
0,966
0,957
0,800
0,703
AVERAGE
PRICE
USD
00.8
00.0
00.0
03.5
0
9
0
new york
STOCK
EXCHANGE
0ST QUARTER
0ND QUARTER
3RD QUARTER
0TH QUARTER
1. Total Traded calculated as the average price times volume of ADRs traded
Source: Bloomberg
120.00
100.00
80.00
60.00
40.00
20.00
jan
19
apr
19
jul
19
oct
19
jan
20
apr
20
jul
20
oct
20
Andina A
Andina B
IPSA
The following chart shows the evolution of Series A and Series B ADRs
and the Dow Jones index for a two-year period ended December 31, 2020
(base 100).
PRICE OF SHARES TRADED ON THE NEW YORK STOCK EXCHANGE
140.00
120.00
100.00
80.00
60.00
40.00
20.00
jan
19
apr
19
jul
19
oct
19
jan
20
apr
20
jul
20
oct
20
AKO/A
AKO/B
Dow Jones
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
DIVIDEND POLICY AND DIVIDENDS PAID
Our current dividend distribution policy
considers distributing at least 30% of net
earnings of the fiscal year. Historically, the
Company has paid dividends through interim
dividends and a final dividend, after its
approval in April by the General Shareholders’
Meeting held after the end of the fiscal
year. Since 2000, Coca-Cola Andina pays
additional dividends annually, as approved by
the General Shareholders’ Meeting.
DIVIDENDS PAID
MONTH/YEAR
DIVIDEND TYPE
SERIES A1
SERIES B 1
TOTAL PAID 2
JANUARY 0000
MAY 0000
INTERIM
FINAL
AUGUST 0000
ADDITIONAL
NOVEMBER 0000
INTERIM
Total 0000
Total 0009
Total 0008
Total 0007
Total 0006
Total 0005
Total 0000
Total 0003
1. CLP per share
2. Million nominal CLP
-
-
-
-
-
-
-
-
00.60
06.00
06.00
06.00
000.60
86.00
86.00
76.00
68.00
50.00
50.00
70.60
00.86
08.60
08.60
08.60
000.66
90.60
90.60
83.60
70.80
59.00
57.60
78.76
00,060
05,800
05,800
05,800
99,986
85,076
85,076
75,536
67,580
53,670
50,080
70,063
OWNERSHIP
and
CONTROL
TOTAL SHARES
TOTAL SERIES A SHARES
073,089,300
TOTAL SERIES b SHARES
073,080,303
Series of shares
Series A and Series B are mainly differentiated
by their political and economic rights. While
Series A shares have the right to elect 12 of the
14 directors, Series B shares have the right to
elect two of the 14 directors and 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, and the stock split will be eliminated.
Total number of shareholders
2,514
Series A785
Series B1,729
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COMPANY OWNERSHIP
SERIES A
OWNERSHIP %
SERIES B
OWNERSHIP %
Total
OWNERSHIP %
CONTROLLING GROUP 0
060,008,780
55.0%
98,060,933
00.7%
360,300,700
38.0%
OTHERS
007,085,305
00.6%
308,039,090
65.0%
005,000,795
03.9%
Coca-Cola 0
69,308,000
00.7%
-
AFPs
(Chilean Pension Funds)
30,008,080
6.8%
53,900,060
0.0%
00.0%
69,308,000
86,060,700
7.3%
9.0%
ADRs
Total
0,058,090
0.5%
03,067,608
0.8%
05,606,000
0.7%
073,089,300
000.0%
073,080,303
000.0%
906,570,600
000.0%
1. See description of Controlling Group on page 94
2. Considers direct and indirect ownership of Coca-Cola de Chile S.A. in Embotelladora Andina S.A.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
2. Cabildo: Inversiones Cabildo SpA,
Rut 76.062.133-1. Direct and indirect
ownership of this company is held by:
(a) Inversiones Delfín Uno S.A., Rut
76.005.604-9, owner of 2.13% of share
capital. This company is 99.99959% owned
by Isabel Margarita Somavía Dittborn, Rut
3.221.015-5;
(b) Inversiones Delfín Dos S.A., Rut
76.005.591-3, owner of 2.13% of share capital.
This company is 99.99959% owned by the
estate of José Said Saffie, Rut 2.305.902-9;
(c) Inversiones Delfín Tres SpA., Rut
76.005.585-9, owner of 38.30% of share
capital. This company is 100% owned by
Salvador Said Somavía, Rut 6.379.626-3;
(d) Inversiones Delfín Cuatro SpA., Rut
76.005.582-4, owner of 19.15% of share
capital. This company is 100% owned by
Isabel Said Somavía, Rut 6.379.627-1;
(e) Inversiones Delfín Cinco SpA., Rut
76.005.503-4, owner of 19.15% of share capital.
This company is 100% owned by Constanza Said
Somavía, Rut 6.379.628-K; and
(f) Inversiones Delfín Seis SpA., Rut
76.005.502-6, owner of 19.15% of share
capital. This company is 100% owned by
Loreto Said Somavía, Rut 6.379.629-8.
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TWELVE MAIN SHAREHOLDERS
TWELVE MAIN SHAREHOLDERS
SERIES A
SERIES b
TOTAL SHARES
OWNERSHIP (%)
INVERSIONES CABILDO SPA*
65,087,786
36,950,863
000,038,609
00.80
INVERSIONES SH SEIS LIMITADA*
65,089,786
05,060,863
90,650,609
COCA-COLA DE CHILE S.A.
67,938,079
-
67,938,079
BANCHILE CORREDORES DE BOLSA S.A.
0,000,085
66,070,373
67,000,858
INVERSIONES NUEVA DELTA S.A.*
58,907,056
-
58,907,056
BANCO DE CHILE POR CUENTA
DE TERCEROS CA
03,000,065
39,008,003
50,339,878
BANCO SANTANDER - JP MORGAN
7,000,568
03,050,780
50,696,350
BANCO DE CHILE ON
ACCOUNT OF STATE STREET
679,000
30,689,006
30,368,006
INVERSIONES PLAYA AMARILLA SPA*
06,689,895
8,503,590
05,003,089
PIONERO FONDO DE INVERSION MOBILIARIO
07,000,000
-
07,000,000
LARRAIN VIAL S.A. CORREDORA DE BOLSA
0,006,088
00,700,978
05,809,066
BCI CORREDOR DE BOLSA S.A.
0,008,070
03,760,960
00,980,038
9.58
7.08
7.0
6.03
5.53
5.36
3.30
0.66
0.80
0.67
0.58
* Company related to Controlling Group
CONTROLLING GROUP
Embotelladora Andina S.A. (“Andina”) is controlled by the following group of natural
and legal persons:
One) Controlling Group:
Inversiones SH Seis Limitada (“SH6”), Inversiones Cabildo SpA
(“Cabildo”), 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”).
Pursuant to the Agreement, SH6 owns 65,489,786 Series A shares of Andina, Cabildo owns
65,487,786 Series A shares of Andina, Nueva Delta owns 58,927,056 Series A shares of Andina
and Nueva Delta Dos owns 3,574,999 Series A shares of Andina, Playa Amarilla owns
16,689,895 Series A shares of Andina, Playa Negra owns 637,205 Series A shares of Andina,
and, Don Alfonso, Campanario, Los Robles and Las Niñas Dos each own 12,089,074 Series A
shares of Andina.
The final controllers of the aforementioned companies are the persons and representatives for
management listed below.
Two) Shareholders or partners of the
companies that are part of the
Controlling Group:
1. SH 6. Inversiones SH Seis Limitada,
Rut 76.273.760-4. 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, Rut 4.047.015-8;
(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, Rut
6.555.478-K;
(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, Rut 6.384.873-5;
(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, Rut
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, Rut
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; Rut
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.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 8. 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 María Soledad
Chadwick Claro (as administrator).
9. 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
is María Carolina Chadwick Claro (as
administrator).
10. 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 is Eduardo Chadwick Claro
(as management representative).
3. Nueva Delta: Inversiones Nueva Delta
S.A., Rut 76.309.233-K, 77.05% owned
by Inversiones Nueva Sofía Limitada,
Rut 76.366.690-5. Direct and indirect
ownership of this company is held by:
(a) 7.01% of José Antonio Garcés Silva
(senior), Rut 3.984.154-1, who also
maintains political rights pursuant to
a special series of shares in the parent
company; (b) 1.34% of María Teresa Silva
Silva, Rut 3.717.514-5; (c) 18.33% of María
Teresa Garcés Silva, Rut 7.032.690-6;
(d) 18.33% of María Paz Garcés Silva, Rut
7.032.689-2; (e) 18.33% of José Antonio
Garcés Silva (junior), Rut 8.745.864-4;
(f) 18.33% of Matías Alberto Garcés Silva,
Rut 10.825.983-3; and (g) 18.33% of Andrés
Sergio Garcés Silva, Rut 10.828.517-6.
4. Nueva Delta Dos: Inversiones Nueva
Delta Dos S.A., Rut 76.309.244-5, 99.95%
owned by Inversiones Nueva Sofía Limitada
(direct and indirect ownership of this
company is the same as the one described in
the previous paragraph for Nueva Delta).
5. Playa Amarilla: Inversiones Playa Amarilla
SpA, (previously, Inversiones Las Gaviotas
Dos Limitada) Rut 76.273.887-2, 100%
owned by Las Gaviotas SpA, whose final
controller (as management representative) is
Andrés Herrera Ramírez.
6. Playa Negra: Inversiones Playa Negra
SpA, Rut 76.273.973-9, 100% owned by
Patricia Claro Marchant.
7. 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 María de la Luz Chadwick Hurtado (as
management representative).
DIRECT OR INDIRECT OWNERSHIP IN ANDINA (INCLUDING SERIES a AND SERIES B SHARES) HELD BY MEMBERS OF THE
CONTROLLING GROUP OR RELATED PERSONS: 0
Direct ownership in the Company by members of the controlling group:
Inversiones SH Seis Limitada
ESTATE OF JAIME SAID DEMARÍA
OWNERSHIP BY SERIES
Inversiones Cabildo SpA
José Said Saffie
OWNERSHIP BY SERIES
Inversiones Nueva Delta S.A.
Inversiones Nueva Delta Dos S.A.
Inversiones Nueva Sofía Limitada
José Antonio Garcés Silva
OWNERSHIP BY SERIES
Inversiones Playa Amarilla SpA
Inversiones Playa Negra SpA
Inversiones El Campanario Ltda
Inversiones Los Robles Limitada
Inversiones Las Niñas Dos SpA
Inversiones Don Alfonso Limitada
Eduardo Chadwick Claro
OWNERSHIP BY SERIES
SERIES A
65,089,786
0
13.84%
65,087,786
0
13.84%
58,907,056
3,570,999
0,985,730
0
13.84%
06,689,895
637,005
00,089,070
00,089,070
00,089,070
00,089,070
63,307
13.89%
SERIES B
05,060,863
09,600
5.33%
36,950,863
09,600
7.82%
0
0
00,978,583
09,600
2.75%
8,503,590
305,939
0
6,638,363
0
7,050,908
63,307
4.86%
0
9
5
1. The nominal participation of Inversiones Freire S.A. of 23 Series A shares of Andina and Inversiones Freire Dos S.A. of 4 Series A shares
of Andina is excluded.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Relevant changes in share
ownership during 2020
In September 2020, the Hurtado Family,
through the company owned by Inversiones
Lleuque Limitada, transferred all of its Series
A shares of the Company, setting its departure
from the Controlling Group of Embotelladora
Andina S.A. These Series A shares of the
Company were acquired in turn by other
companies that make up the Controlling
Group, thus, the Said Handal, Said Somavía,
Garcés Silva and Chadwick Claro families
maintain control of the Company.
0
9
6
FOUR) THE ONLY SHAREHOLDER, OTHER THAN
THE CONTROLLING GROUP, WHICH EXCEEDS 00%
OWNERSHIP IN THE PROPERTY OF ANDINA, IS:
Series A
Series B
Coca-Cola de Chile S.A. 0
69,308,000
OWNERSHIP BY SERIES
00.65%
-
-
1. Considers direct and indirect ownership of Coca-Cola de Chile
S.A. in Embotelladora Andina S.A.
The Controlling Groups acts pursuant to a
joint acting agreement entered into by the
parties (the”Agreement”).
According to the Agreement, the Controlling
Group will jointly exercise control of the
Company to ensure a majority of votes at
shareholder meetings and Board sessions. The
resolutions of the Controlling Group are adopted
by at least three of the four parties, except for
certain matters that require unanimity.
The Agreement is formalized by a private
instrument signed between the parties
thereof and lasts indefinitely.
Regarding The Coca-Cola Company's
investment in Andina, The Coca-Cola
Company and the Controlling Group signed
a shareholders' agreement on September
5, 1996, indicating certain restrictions
on the transfer of Andina's share capital
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. This shareholders' agreement
also stipulates certain matters of Corporate
Governance, including The Coca-Cola
Company's right to elect two of our directors,
as long as The Coca-Cola Company and
its subsidiaries collectively hold a certain
percentage of Series A shares. In addition, in
related agreements, the Controlling Group
granted The Coca-Cola Company an option,
which may be exercised when certain changes
are made to the beneficiary ownership of the
Controlling Group, to acquire 100% of the
Series A shares of its ownership at a price and
in accordance with the procedures established
in those agreements.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
C h a p t e r
8 OUR
COMPANY
"It is not the first time we have been through hard times,
but together we have been able to overcome them."
0
9
7
0
WE ARE
COCA-COLA ANDINA
0
SUSTAINABLE VALUE
CREATION STRATEGY
3
A TOTAL BEVERAGE
COMPANY
0
OUR VALUE
CHAIN, RESOURCE
MANAGEMENT
5
FLEXIBILITY AND
COMMITMENT
6
CORPORATE
GOVERNANCE
7
INFORMATION FOR
THE FINANCIAL
MARKET
8
OUR COMPAN Y
9
PRINCIPAL
METRICS
00
EXHIBITS
COMPANY STRUCTURE
35.0%
59.27%
66.5%
Coca-Cola Del Valle
New Ventures S.A
Envases
Central S.A.
Vital
Aguas S.A.
Embotelladora
Andina S.A.
99.9998%
Andina Inversiones
Societarias S.A.
0.00011%
99.99%
0.01%
99.99%
0.00007%
99.9%
0.15%
99.9959%
0.0041%
99.90%
0.10%
0.00005%
99.99995%
0.10%
99.90%
50.0%
15.0%
50.0%
0.10%
99.90%
Transportes
Polar S.A.
Comercializadora
Novaverde S.A.
Red de Transportes
Comerciales Ltda.
Transportes Andina
Refrescos Ltda.
Servicios
Multivending Ltda.
Embotelladora
Andina Chile S.A.
Andina Bottling
Investments S.A.
VJ S.A.
Envases CMF S.A.
Andina Bottling
Investments Dos S.A.
0.1%
Abisa Corp
99.07%
99.99%
99.975%
0.9157296%
99.30%
0.70%
97.7533%
0.07697%
99.99%
Embotelladora
del Atlántico S.A.
0.003%
Aconcagua
Investing Ltd.
Paraguay
Refrescos S.A.
Rio de Janeiro
Refrescos Ltda.
0
9
8
Andina Empaques
Argentina S.A.
0.003%
14.82%
Alimentos de
Soja S.A.
40.0%
40.0%
11.32%
10.26%
7.52%
8.50%
Sorocaba
Refrescos Ltda
SRSA PARTICIPAÇÕES
LTDA.
KAIK PARTICIPAÇÕES
LTDA.
LEÃO ALIMENTOS
E BEBIDAS LTDA.
Trop Frutas do
Brasil Ltda.
UBI 3 Participações
Ltda.
Parent Company
Consolidating subsidiaries
Associates
Investments without significant influence
Argentina
Brazil
Chile
Paraguay
British Virgin Islands
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 SUBSIDIARIES,
EQUITY INVESTEES
ASSOCIATES
and
Argentina
Embotelladora
del Atlántico S.A.°
Address
Ruta Nacional 19, Km 3,7, Córdoba
CUIT
30-52913594/3
Telephone
(54-351) 496 8888
Paid-in and subscribed capital
(at 12/31/20)
CLP 3,782,900 thousand
% the investment represents in the
Parent Company's assets
5.8%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: 0.92
Indirectly: 99.07
Corporate purpose
Manufacture, bottle, distribute
and commercialize non-alcoholic
beverages. Manufacture, bottle and
sell any other beverages and related
products.
Commercial relationship
Coca-Cola bottler in Argentina
Board of Directors / Management
Council:
Paulo Dias
Diego Recalde
Francisco Jeldres
Diana Rosas
Sergio Bernabé Giménez
Jorge Luis López
Fabián Castelli 2
Erica Cecilia Sirk
David Lee
Mercedes Rodriguez Canedo A
Maria Sol Jares Canovas A
Ignacio Arizaga A
María Fernanda Causarano A
Ruben Sergio Coronel A
Fernando Ramos Meneghetti A 2
Carolina Pawlowski A
Esteban Eduardo Mele A
General Manager
José Marquina
0
9
9
Andina Empaques
Argentina S.A.°
Alimentos de SOJA S.A.°
Address
Av. Roque Sáenz Peña 637 – Piso
1° - Ciudad Autónoma de
Buenos Aires.
Address
Marcelo T. de Alvear 684, Piso 1°,
Ciudad Autónoma de Buenos Aires
CUIT
30-71213488-3
Telephone
(54-11) 4715 8000
Paid-in and subscribed capital
(at 12/31/20)
CLP 2,472,553 thousand
% the investment represents in the
Parent Company's assets
0.5%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: -
Indirectly: 99.98
Corporate purpose
Design, produce and commercialize
plastic products, mainly containers.
Commercial relationship
Supplier of plastic bottles and
preforms.
CUIT
33-71523028-9
Telephone
(54-11) 5196 8300
Paid-in and subscribed capital
(at 12/31/20)
CLP 12,114,795 thousand
% the investment represents in the
Parent Company's assets
0.4%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: -
Indirectly: 14.827
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,
commercialize, import, export,
transformationprocessing,
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
Produces soy-based products for
Coca-Cola bottlers in Argentina.
Board of Directors / Management
Council:
Gonzalo Manuel Soto 3
Fabián Castelli 2
Fernando Ramos 2
Laurence Paul WienerA
Board of Directors / Management
Council:
Gonzalo Manuel Soto 3
Fabián Castelli 2
Jaime Cohen 1
Laurence Paul Wiener A
General Manager
Fabián Castelli 2
General Manager
Daniel Caridi
° Corporation
* No variations in ownership have
occurred during the last year.
1 Embotelladora Andina S.A. officer
2 Embotelladora del Atlántico S.A. officer
3 External counsel
A Alternate
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Brazil
Rio de Janeiro Refrescos Ltda.
Kaik Participações Ltda.
Leão Alimentos e Bebidas Ltda
Sorocaba Refrescos Ltda.
Trop Frutas do Brasil Ltda.
SRSA Participações Ltda.
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
Address
Rua Paes Leme, nº 524 - 10º andar,
São Paulo, São Paulo
Address
Rod.Raposo Tavares, Km 104,
Jardim Jaraguá, Sorocaba, São Paulo
CNPJ
00.074.569/0001-00
Telephone
(55-21) 2429 1779
Paid-in and subscribed capital
(at 12/31/20)
CLP 119,168,159 thousand
% the investment represents in the
Parent Company's assets
9.6%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: -
Indirectly: 99.99
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
General Manager
Renato Barbosa 2
* No ownership variations during the last year
1 Embotelladora Andina S.A. officer
2 Rio de Janeiro Refrescos Ltda. officer
CNPJ
40.441.792/0001-54
Telephone
(55-11) 2102 5563
Paid-in and subscribed capital
(at 12/31/20)
CLP 137 thousand
% the investment represents in the
Parent Company's assets
0.0%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: -
Indirectly: 11.32
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
CNPJ
72.114.994/0001-87
Telephone
(55-11) 3809 5000
CNPJ
45.913.696/0001-85
Telephone
(55-15) 3229 9930
Paid-in and subscribed capital
(at 12/31/20)
CLP 156,318,243
Paid-in and subscribed capital
(at 12/31/20)
CLP 8,006,744 thousand
% the investment represents in the
Parent Company's assets
0.4%
% the investment represents in the
Parent Company's assets
0.9%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: -
Indirectly: 10.26
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: -
Indirectly: 40
Corporate purpose
Manufacture and commercialize
food and beverages in general, and
beverage concentrate. Invest in
other companies.
Corporate purpose
Manufacture and commercialize
food and beverages in general, and
beverage concentrate. Invest in
other companies.
Commercial relationship
Produce non-carbonated products
for the Coca-Cola bottlers in Brazil.
Commercial relationship
Coca-Cola bottler in Brazil.
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
Board of Directors / Management
Council:
Pedro Rios
Alexandre Fernandes Delgado
Marcelo Gil
Renato Barbosa 2
Neuri Pereira
Ian Craig
Emerson Vontobel
Mario Veronezi
Henrique Braun
Bruno Aronne Sekeff
General Manager
Dirk Schneider
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
CNPJ
07.757.005/0001-02
Telephone
(55-27) 21038300
Paid-in and subscribed capital
(at 12/31/20)
CLP 53,781,338 thousand
% the investment represents in the
Parent Company's assets
0.2%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: -
Indirectly: 7.52
Corporate purpose
Manufacture, commercialize
and export natural fruit pulp and
coconut water.
Commercial relationship
Produce products for the Coca-Cola
bottlers in Brazil.
Board of Directors / Management
Council:
Dirk Schneider
Bruno Aronne Sekeff
General Manager
Dirk Schneider
CNPJ
10.359.485/0001-68
Telephone
(55-15) 3229 9906
Paid-in and subscribed capital
(at 12/31/20)
CLP 2,736 thousand
% the investment represents in the
Parent Company's assets
0.0%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: -
Indirectly: 40
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
0
0
0
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Brazil
chile
UBI 3 Participações Ltda.
Embotelladora Andina Chile S.A.°
VJ S.A.°
Vital Aguas S.A.°
Coca-Cola del Valle
New Ventures S.A.°
Transportes Andina
Refrescos Ltda.°°°
Address
Rua Teonilio Niquine nº 30, Galpão
B, Jardim Piemonte, Betim, Minas
Gerais
CNPJ
27.158.888/0001-41
Telephone
(55-21) 2559.1032
Paid-in and subscribed capital
(at 12/31/20)
CLP 1,427 thousand
% the investment represents in the
Parent Company's assets
0.0%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: -
Indirectly: 8.50
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
Neuri Amabile Firgotto Pereira
Lia Marques Oliveira
* No ownership variations during the
last year
° Closed stock corporation
°°° Correspond to limited liability
companies in which the management
of the company corresponds to
Embotelladora Andina S.A. through
specially appointed agents or
representatives.
1 Director and member of the Controlling
Group of Embotelladora Andina S.A.
2 Embotelladora Andina S.A. officer
A Alternate
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
Rut
93.899.000-K
Telephone
(56-2) 2620 4100
Rut
76.389.720-6
Telephone
(56-2) 23464245
Rut
76.572.588-7
Telephone
N/A
Rut
78.861.790-9
Telephone
(56-2) 2611 5838
Paid-in and subscribed capital
(at 12/31/20)
CLP 27,278,206
Paid-in and subscribed capital
(at 12/31/20)
CLP 20,675,167 thousand
Paid-in and subscribed capital
(at 12/31/20)
CLP 4,331,154 thousand
Paid-in and subscribed capital
(at 12/31/20)
CLP 84,442,244 thousand
Paid-in and subscribed capital
(at 12/31/20)
CLP 12,620,628
% the investment represents in the
Parent Company's assets
1.7%
% the investment represents in the
Parent Company's assets
1.0%
% the investment represents in the
Parent Company's assets
0.2%
% the investment represents in the
Parent Company's assets
1.2%
% the investment represents in the
Parent Company's assets
0.6%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: 99.99995
Indirectly: 0.00005
% 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: -
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: 35
Indirectly: -
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: 99.9959
Indirectly: 0.0041
Corporate purpose
Manufacture, bottle, distribute
and commercialize non-alcoholic
beverages.
Corporate purpose
Manufacture, 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.
Corporate purpose
Manufactures, distributes and
commercializes all kinds of juices,
water and beverages in general.
Corporate purpose
Provide administration services and
management of local and foreign
ground transportation.
0
0
0
Commercial relationship
Leasing of production
infrastructure.
Board of Directors / Management
Council:
Miguel Ángel Peirano 2
Andrés Wainer 2
Jaime Cohen 2
General Manager
José Luis Solórzano 2
Commercial relationship
Produces juices for Coca-Cola
bottlers in Chile.
Commercial relationship
Produces mineral water for
Coca-Cola bottlers in Chile.
Commercial relationship
produces water and
juices for Coca-Cola bottlers in Chile.
Commercial relationship
Provides ground transportation
services.
Board of Directors / Management
Council:
José Luis Solórzano 2
Alejandro Zalaquett 2
Cristián Hohlberg
Andrés Wainer 2
Jaime Cohen 2 A
Fernando Jaña 2 A
Rodrigo Ormanechea 2 A
José Domingo Jaramillo A
Board of Directors / Management
Council:
José Luis Solórzano 2
Alejandro Zalaquett ²
Andrés Wainer 2
José Domingo Jaramillo
Rodrigo Ormaechea ² A
Jaime Cohen ²A
Fernando Jaña ² A
Juan Pablo Valdés S
General Manager
Alberto Moreno
General Manager
Alberto Moreno
Board of Directors / Management
Council:
N/A
Board of Directors / Management
Council:
Miguel Ángel Peirano 2
José Luis Solórzano 2
Rodrigo Ormaechea 2
Cristián Hohlberg
José Domingo Jaramillo
Roberta Cabral Valenca
Paulo Dias
Francisco Jeldres
Diana Rosas
Fernando Jaña ² A
Alejandro Zalaquett ² A
Rodolfo Peña ²A
Juan Paulo Valdés A
Anton Szafronov A
Alfredo Mahana A
Maria Sol Jares A
Mercedes Rodríguez A
Natalia Otero A
General Manager
Alejandro Palma²
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 chile
Transportes Polar S.A.°
Servicios Multivending Ltda.°°°
Envases CMF S.A.°
Envases Central S.A.°
Andina Bottling
Investments S.A.°
Andina Bottling
Investments Dos S.A.°
Address
Av. Miraflores 9153, piso 4, Renca,
Santiago
Address
Av. Miraflores 9153, piso 4, Renca,
Santiago
Address
La Martina 0390, Pudahuel,
Santiago
Address
Av. Miraflores 8755, Renca,
Santiago
Address
Av. Miraflores 9153, piso 7, Renca,
Santiago
Address
Av. Miraflores 9153, piso 7, Renca,
Santiago
Rut
96.928.520-7
Telephone
(56-2) 2611 5838
Rut
78.536.950-5
Telephone
(56-2) 2611 5838
Rut
86.881.400-4
Telephone
(56-2) 2544 8222
Rut
96.705.990-0
Telephone
(56-2) 2599 9300
Rut
96.842.970-1
Telephone
(56-2) 2338 0520
Rut
96.972.760-9
Telephone
(56-2) 2338 0520
Paid-in and subscribed capital
(at 12/31/20)
CLP 1,619,315 thousand
Paid-in and subscribed capital
(at 12/31/20)
CLP 862,248 thousand
Paid-in and subscribed capital
(at 12/31/20)
CLP 32,981,986 thousand
Paid-in and subscribed capital
(at 12/31/20)
CLP 7,562,354 thousand
Paid-in and subscribed capital
(at 12/31/20)
CLP 311,727,582 thousand
Paid-in and subscribed capital
(at 12/31/20)
CLP 453,356,984 thousand
% the investment represents in the
Parent Company's assets
0.1%
% the investment represents in the
Parent Company's assets
0.0%
% the investment represents in the
Parent Company's assets
0.8%
% the investment represents in the
Parent Company's assets
0.5%
% the investment represents in the
Parent Company's assets
29.6%
% the investment represents in the
Parent Company's assets
24.0%
% 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: 0.1
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: -
Indirectly: 49.9999
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: 59.27
Indirectly: -
% 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: 99.90
Indirectly: 0.10
Corporate purpose
Commercialize products through
equipment and vending machines.
Commercial relationship
Provides commercialization of
products through vending machines.
Board of Directors / Management
Council:
Not Applicable
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
Manufacture and sale of plastic
products and bottling services and
beverage containers.
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
General Manager
Christian Larraín
Corporate purpose
Manufacture and packaging
of all kinds of beverages, and
commercialize all kinds of
packaging.
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
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
Andrés Wainer 2
José Domingo Jaramillo
Cristián Hohlberg
Roberta Cabral Valenca
Rodrigo Ormaechea A
Jaime Cohen 2 A
Fernando Jaña ² A
Juan Paulo Valdés A
Anton Szafronov A
Santiago Salinas A
General Manager
Vacant
Corporate purpose
Perform exclusively foreign
permanent or income investments in
all kinds of movable 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
General Manager
Miguel Ángel Peirano 2
0
0
0
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 chile
Andina Inversiones
Societarias S.A.°
Red de Transporte
Comerciales Ltda.°°°
Comercializadora
Novaverde S.A.°
Paraguay
Islas Vírgenes Británicas
Paraguay Refrescos S.A. °
Abisa Corp.
Aconcagua Investing LTDA.
Address
Av. Miraflores 9153, piso 7, Renca,
Santiago
Address
Av. Del Valle Norte 937, of. 351,
Ciudad Empresarial, Huechuraba
Address
Carretera General San Martín Km.
16.5 Calle Simón Bolivar, Sitio 19,
Colina, Santiago
Address
Acceso Sur, Ruta Ñemby Km
3,5 - Barcequillo -San Lorenzo,
Asunción
Rut
96.836.750-1
Telephone
(56-2) 2338 0520
Rut
76.276.604-3
Telephone
(56-2) 29939704
Paid-in and subscribed capital
(at 12/31/20)
CLP 30,082,325 thousand
Paid-in and subscribed capital
(at 12/31/20)
CLP 2,200,314 thousand
% the investment represents in the
Parent Company's assets
1.4%
% the investment represents in the
Parent Company's assets
0.1%
% 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
Rut
77.526.480-2
Telephone
(562) 24110150
Rut
80.003.400-7
Telephone
(595) 21 959 1000
Paid-in and subscribed capital
(at 12/31/20)
CLP 14,856,772 thousand
Paid-in and subscribed capital
(at 12/31/20)
CLP 9,714,513 thousand
% the investment represents in the
Parent Company's assets
0.3%
% the investment represents in the
Parent Company's assets
0.10
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: 0.00007
Indirectly: 34.9965
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: 0.076
Indirectly: 97.6555
Corporate purpose
Invest in all kinds of companies and
commercialize food in general.
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
Corporate purpose
Freight transportation in general
in the beverage industry and other
processed goods.
Commercial relationship
Provides ground transportation
services and commercialization of
products.
Board of Directors / Management
Council:
N/A
° Corporation
* No ownership variations during the
last year
1 Embotelladora Andina S.A. officer
2 Paraguay Refrescos S.A. officer
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
General Manager
Francisco Sanfurgo 2
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
José Domingo Jaramillo A
Roberta Cabral Valenca
Paulo Dias
Francisco Jeldres
Fernando Jaña ² A
Alejandro Zalaquett ² A
Maria Sol Jares A
Mercedes Rodríguez A
Natalia Otero A
Juan Paulo Valdés A
General Manager
Juan Luis Piwonka
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
59.144.140-K
Telephone
(1-284) 494 5959
Paid-in and subscribed capital
(at 12/31/20)
CLP 12,594,313 thousand
% the investment represents in the
Parent Company's assets
13.3%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly:-
Indirectly: 100
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
Telephone
(1-284) 494 5959
Paid-in and subscribed capital
(at 12/31/20)
CLP 523,599 thousand
% the investment represents in the
Parent Company's assets
0.9%
% that the Parent Company holds
in the Capital of the subsidiary or
equity investee*
Directly: 0.70
Indirectly: 99.3
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 Cohen1
Andrés Wainer1
Miguel Angel Peirano1
0
0
3
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 PROPERTIES
and
FACILITIES
ARGENTINA
Embotelladora del Atlántico S.A.
Operation
Azul
Bahía Blanca
Bahía Blanca
Bahía Blanca
Bahía Blanca
Bahía Blanca
Bariloche
Bialet Masse
Bragado
Carlos Paz
Main use
Distribution Center / Warehouses
Offices / Production of soft drinks / Distribution Center / Warehouses
Warehouses (Don Pedro)
Commercial office
Land (Parking)
Warehouses (M&F palletizer - EDF deposit)
Offices / Distribution Center / Warehouses
Land
Commercial office
Commercial office
Carmen de Patagones
Commercial office / Warehouses/ Crossdocking
Chacabuco
Chivilcoy
Chivilcoy
Comodoro Rivadavia
Concepcion del Uruguay
Concordia
Córdoba
Córdoba (H.Primo)
Córdoba (San Isidro)
Córdoba
Córdoba
Coronel Suarez
General Pico
General Roca
Gualeguaychu
Junin (Buenos Aires)
Junin (Buenos Aires)
Mendoza
Monte Hermoso
Neuquén
Olavarria
Paraná
Pehuajo
Pergamino
Puerto Madryn
Rio Gallegos
Offices / Distribution Center / Warehouses
Distribution Center / Warehouses
Commercial office
Offices / Distribution Center / Warehouses
Commercial office
Commercial office / Third party Distribution Center / Warehouses
Offices / Production of soft drinks and non-carbonated beverages / Distribution Center / Warehouses / Land
Commercial office / Parking / Deposit
Deposit and Offices
Deposit (Rigar)
Deposit (RICARDO Balbín)
Offices / OUTSOURCED DISTRIBUTION CENTER / Warehouses/ DEPOSIT
Offices / Distribution Center / Warehouses
Distribution Center / Warehouses
Commercial office / Warehouses
Cross Docking
Commercial office
Offices / Distribution Center / Warehouses
Land
Offices / Distribution Center / Warehouses
Offices / Distribution Center / Warehouses
Commercial office
Offices / Distribution Center / Warehouses
Offices / Cross Docking
Commercial office
Distribution Center / Warehouses
M 2
000,000
102,000
0,000
903,000
03,150
1,400
1,000
000,000
30,000
200,000
1,000
25,090
1,350
02,000
0,500
110,000
1,214
959,505
1,103
0,000
0,000
2,500
1,000
15,525
2,000
2,392
995,000
100,000
30,452
300,000
10,150
3,005
310,000
1,000
15,000
115,000
2,491
Own / Leased
Encumbrance
Operation: Andina / Third-party
T
O
L
L
O
L
L
O
L
L
L
O
T
L
L
L
L
O
L
O
L
L
L
O
T
L
T
L
O
O
O
L
L
L
O
L
L
0
*
0
0
*
0
0
*
0
0
0
*
0
0
0
0
0
*
0
*
0
0
0
*
0
0
0
0
*
*
*
0
0
0
*
0
0
Andina carried out by third party
Andina
Andina
Andina
Andina
Third party
Andina
Not used
Andina
Andina
Andina
Andina
Andina carried out by third party
Andina
Andina
Andina
Andina carried out by third party
Andina
Andina
Andina
Andina carried out by third party
Andina
Andina carried out by third party
Andina
Andina carried out by third party
Andina carried out by third party
Andina carried out by third party
Andina
Andina
Not used
Andina
Andina
Andina
Andina
Andina
Andina
Andina carried out by third party
1
0
4
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Operation
Rio Grande
Río IV
Río IV
Río IV
Río IV
Offices / Distribution Center / Warehouses
Main use
Housing
Private corridor
Cross Docking
Commercial office
Rivadavia (Mendoza)
Deposit
Rosario
Offices / Distribution Center / Warehouses / Parking / LAND
San Francisco
Commercial office
San Juan
San Luis
San Nicolas
San Rafael
Offices / Distribution Center / Warehouses
Offices Comercial / Distribution Center / Warehouses
Commercial office
Commercial office
Santa Fe (Casilda)
Commercial office
Santa Fe
Santa Rosa
Santo Tomé
Trelew
Trelew
Commercial office
Distribution Center / Warehouses
Administrative Office / Distribution Center / Warehouses
Offices / Production of soft drinks / Distribution Center / Warehouses
Warehouses
Tres Arroyos
Offices/ Cross Docking / Warehouses
Offices / Distribution Center / Warehouses
Commercial office
Commercial office / Distribution Center / Warehouses
Commercial office
Commercial office
Ushuaia
Ushuaia
Venado Tuerto
Villa Maria
Villa Mercedes
Operation
Buenos Aires
Buenos Aires
Buenos Aires
M 2
2,400
1,914
5,100
0,402
93,000
000,000
20,014
03,000
40,030
5,205
50,000
50,000
40,000
230,000
1,200
00,309
51,000
1,500
1,540
1,300
94,000
2,449
125,000
00,000
Own / Leased
Encumbrance
Operation: Andina / Third-party
L
O
O
O
L
O
O
L
O
O
L
L
L
L
t
O
O
L
L
L
L
t
L
L
0
*
*
*
0
*
*
0
*
*
0
0
0
0
*
*
0
0
0
0
0
0
0
Andina
For sale
For sale
Third party
Andina
Not used
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina carried out by third party
Andina
Andina
Andina
Andina
Andina
Andina
Andina carried out by third party
Andina
Andina
Andina Empaques Argentina S.A.
Main use
Production of bottles, PET preforms, plastic caps and cases
Deposit adjacent to manufacturing plant
Deposit adjacent to manufacturing plant
M 2
20,043
1,041
940,000
Own / Leased
Encumbrance
Operation: Andina / Third-party
O
L
L
*
0
0
Andina
Andina
Andina
1
0
5
O. Own
L. Leased
T. Third party
C. Concession
* Free of encumbrances
1. (intention to sell) pending registration
in property registry
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
BRAzIL
Rio de Janeiro Refrescos Ltda.
Operation
Jacarepaguá
Offices / Soft drinks production / Distribution Center / Warehouses
Main use
Duque de Caxias
Offices / Soft drinks production / Distribution Center / Warehouses
Nova Iguaçu
Distribution Center/Warehouses
Bangu
Campos
Cabo Frio
Distribution Center
Distribution Center
Distribution Center-not active
Sao Pedro da Aldeia 1
Distribution Center
Itaperuna
Caju 1
Caju 2
Caju 3
Cross Docking
Distribution Center
Distribution Center
Parking
Vitória (Cariacica)
Distribution Center
Cachoeiro do Itapemirim
Cross Docking
Linhares
Ribeirão Preto
Ribeirão Preto
Franca
Mococa
Araraquara
São Paulo
Cross Docking
Offices / Soft drinks production / Distribution Center / Warehouses
Several lots
Distribution Center
Distribution Center
Distribution Center
Apartament
Sao Joao da Boa Vista
Cross Docking
Sao Pedro da Aldeia 2
Parking
Itaipu
Sales office
Nova Friburgo
Sales office /Cross Docking
Guarapari
Colatina
São Mateus
Sales office
Sales office /Cross Docking
Sales office /Cross Docking
Rio das Ostras
Sales office
M 2
249,400
2,243,953
02,010
44,309
30,003
1,905
10,139
2,500
4,000
0,050
0,400
93,320
0,000
1,500
230,090
209,550
32,500
33,009
11,050
09,000
20,003
0,400
050,000
350,000
210,000
3,040
2,000
520,000
Own / Leased
Encumbrance
Operation: Andina / Third-party
O
O
O
O
O
O
C
L
O
O
L
O
L
L
O
O
O
L
O
O
O
C
L
L
L
L
L
L
JTP1
*
*
*
*
*
*
*
*
*
*
*
*
*
JTP2
*
*
*
*
*
*
*
*
*
*
*
*
*
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
THIRD PARTY
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
1
0
0
O. Own
L. Leased
T. Third party
C. Concession
* Free of encumbrances
1. Judicial Tax Proceeding ICMS/RJ
2. Judicial Tax Proceeding IPI/ZFM
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Operation
Renca
Renca
Renca
Renca
Carlos Valdovinos
Puente Alto
Maipú
CHILE
Embotelladora Andina S.A.
Offices / Production of soft drinks / Distribution Center / Warehouses
Main use
Warehouses
Warehouses
Warehouses
Distribution Center / Warehouses
Distribution Center / Warehouses
Distribution Center / Warehouses
Demetrop (Región Metropolitana)
Warehouses
Trailerlogistic (Región Metropolitana)
Warehouses
Monster (Región Metropolitana)
Warehouses
Rancagua
San Antonio
Antofagasta
Antofagasta
Calama
Tocopilla
Coquimbo
Copiapó
Ovalle
Vallenar
Illapel
Distribution Center / Warehouses
Distribution Center / Warehouses
Offices / Production of soft drinks / Distribution Center / Warehouses
Offices / Production of soft drinks / Distribution Center / Warehouses
Distribution Center / Warehouses
Distribution Center / Warehouses
Offices / Distribution Center / Warehouses
Distribution Center / Warehouses
Distribution Center / Warehouses
Distribution Center / Warehouses
Distribution Center / Warehouses
Punta Arenas
Offices / Production of soft drinks / Distribution Center / Warehouses
Coyhaique
Puerto Natales
Distribution Center / Warehouses
Distribution Center / Warehouses
M 2
300,033
55,502
11,211
40,905
100,020
00,002
45,033
-
-
-
25,920
19,009
34,029
0,020
10,000
502
31,303
20,000
0,223
5,000
-
109,510
5,093
050
Own
Own
Own
Own
Own
Own
Own
Leased
Leased
Leased
Own
Own
Own
Own
Own
Own
Own
Own
Own
Own
Leased
Own
Own
Leased
Offices / Production of juices
40,000
Own
Vital Jugos S.A.
Offices / Production of waters
503,020
Own
Vital Aguas S.A.
Offices / Production of soft drinks
51,900
Own
Envases Central S.A.
PARAGUAY
Paraguay Refrescos S.A.
Renca
Rengo
Renca
Operation
San Lorenzo
Coronel Oviedo
Encarnación
Ciudad del Este
Own / Leased
Encumbrance
Operation: Andina / Third-party
*
*
*
*
*
*
*
0
0
0
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
Andina
1
0
0
Offices / Production of soft drinks / Warehouses
Main use
Offices/Warehouses
Offices/Warehouses
Offices/Warehouses
M2
205,292
32,911
12,044
14,020
Own / Leased
Encumbrance
Operation: Andina / Third-party
Own
Own
Own
Own
*
*
*
*
Andina
Andina
Andina
Andina
O. Own
L. Leased
T. Third party
C. Concession
* Free of encumbrances
Note: During 2020, the Company had no land reserved for the future
development of projects, in none of the countries in which we operate.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Main products commercialized Operation
by
PRODUCT PORTFOLIO
Colas
Coca-Cola
Coca-Cola Zero/Sin azúcar
Coca-Cola Light
Coca-Cola Plus Café
Coca-Cola Energy
FLAVORED SOFT DRINKS
Cantarina
Crush Light/Zero/Sin azúcar
Fanta
Fanta Zero/Sin azúcar
Inca Kola
Inca Kola Zero
Kuat Zero
Nordic Mist
Nordic Mist Agua Tónica
Nordic Mist Zero
Quatro Light/Liviana/Zero/Sin azúcar
Royal Bliss
Schweppes
Schweppes Light/Zero/Sin azúcar
Schweppes Tónica
Schweppes Tónica Light
Sprite
Sprite Zero/Sin azúcar
& Nada
JUICES
Andina Del Valle
Andina Del Valle Light
Cepita
Cepita Light/Zero/Sin azúcar
Del Valle
Del Valle Light
Frugos
Frugos Light/Sin azúcar/0%
Guallarauco
Kapo
Chile
Brazil
Argentina
Paraguay
Chile
Brazil
Argentina
Paraguay
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
WATERS
Aquarius
Aquarius Zero Gasificada
Benedictino
Benedictino Sabores
Bonaqua Con Gas
Bonaqua Sin gas
Crystal
Dasani
Glaceau Smart Water
Glaceau Vitamin Water
Guallarauco Agua de Fruta
Kin Con Gas
Kin Sin Gas
Vital
OTHER NON-ALCOHOLIC BEVERAGES
AdeS
Blak
Burn
Fuze Ice Tea
Fuze Ice Tea Zero
I9
Koolife
Leão Ice Tea Light/Zero/sin azúcar
Matte Leão
Matte Leão Zero
Minilac
Monster
Monster Zero/Light/Sin azúcar
Powerade
Powerade Zero/Light/Sin azúcar
Reign
Shake Whey
Tropical
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
0
0
8
ü
ü
ü
ü
ü
ü
ü
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Chile
Brazil
Argentina
Paraguay
Chile
Brazil
Argentina
Paraguay
BEERS
Amstel
Báltica
Bavaria
Becker
Becks
Blue Moon
Brahma
Bud light
Budweiser
Busch
Corona
Corona Light
Coronita
Cusqueña
Grolsch
Heineken
Imperial
Isenbeck
Kaiser
Kilómetro 00.7
Kunstmann
Malta del Sur
Michelob Ultra
Miller
Modelo
Negra Modelo
Palermo
Pilsen del Sur
Quilmes
Schneider
Sol
Stella Artois
Stella Artois Gluten Free
Warsteiner
SPIRITS AND WINE
Alto del Carmen Ice
Artesanos del Cohiguaz Sour
Baileys
Bourbon Bulleit
Capel Ice
Capel Mix
Capel Pisco Sour
Capel Pisco Sour Light
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
Cremisse
Espumante Francisco de Aguirre
Espumante Myla
Espumante Nola Zero
Espumante Sensus
Fernet Branca
Gin Tanqueray
Maddero Ice
Pisco Alto del Carmen
Pisco Artesanos del Cohiguaz
Pisco Brujas de Salamanca
Pisco Capel
Pisco Hacienda La Torre
Pisco Monte Fraile
RUM Cacique
RUM Maddero
RUM Pampero
RUM Zacapa
Sheridan's
Sidra 0888
Sidra Pehuenia
Sidra Real
Sour Inca de Oro
Tequila Don Julio
WINE Carbonatado Pkador
WINE Colón
WINE Eugenio Bustos
WINE Graffigna
WINE Grosso
WINE La Celia
WINE Prólogo Late Harvest
Vodka Ciroc
Vodka Smirnoff
Whisky Bell's
Whisky Buchanan's
Whisky J&B
Whisky Johnnie Walker
Whisky Old Parr
Whisky Sandy Mac
Whisky Singleton
Whisky Vat-69
Whisky White Horse
ICE CREAMS AND FROZEN PRODUCTS
Guallarauco
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
0
0
9
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
BOTTLER
AGREEMENTS
Our status as franchisee of The
Coca-Cola Company is based on the
Bottler Agreements that the Company has
signed with The Coca-Cola Company, for
which it acquires the license to produce and
distribute products bearing the trademarks
of The Coca-Cola Company within its
licensing territories in Argentina, Brazil,
Chile and Paraguay. The Company's
operations significantly depend on
preserving and renewing these Bottler
Agreements.
Bottler Agreements are international
standard contracts and are renewable at
the request of the bottler and at the sole
discretion of The Coca-Cola Company.
We cannot guarantee that the Bottler
Agreements will be renewed upon expiration
or renewed on the same or better terms.
Chile
Brazil
The Agreement includes, as a licensing territory,
the Metropolitan Region; province of San
Antonio, in the V Region; the province of
Cachapoal including the commune of San
Vicente de Tagua-Tagua, in the VI Region; II
Region, Antofagasta; III Region, Atacama,
IV Region, Coquimbo; XI Region, Aysén del
General Carlos Ibáñez del Campo and XII
Region, Magallanes and Chilean Antarctica.
Licenses for territories in Chile expire in
January 2023.
In 2005 VJ S.A. and The Coca-Cola Company
signed a Juice Bottling Agreement under which
The Coca-Cola Company authorizes VJ S.A.
to produce, process and bottle, products under
certain brands, in packaging previously approved
by The Coca-Cola Company.
Andina and Embonor own the rights to
purchase VJ S.A. products.
That agreement was renewed on January 1,
2019 and expires on December 31, 2021.
In addition, Andina, VJ S.A. and Embonor
have agreed with The Coca-Cola Company to
produce, package and market these products in
their respective plants.
In 2005, a Water Production and Packaging
Agreement was signed between The
Coca-Cola Company and Vital Aguas
to prepare and package beverages in
connection with the Vital, Chanqueahue,
Vital de Chanqueahue and Dasani brands,
incorporating the Benedictino brand in early
2008 into the portfolio of products produced
by Vital Aguas under this agreement. That
agreement was renewed on January 1, 2019
and expires on December 31, 2021.
This Agreement includes, as a licensed territory,
the majority of the state of Rio de Janeiro, the
entire state of Espírito Santo and part of the
states of Sao Paulo and Minas Gerais.
Licenses for territories in Brazil expire in
October 2022.
Argentina
This Agreement includes, as a licensed
territory, the provinces of Córdoba,
Mendoza, San Juan, San Luis, Entre Ríos,
Chubut, Santa Cruz, Neuquén, Río Negro,
La Pampa, Tierra del Fuego, Antarctica and
South Atlantic Islands, as well as part of the
provinces of Santa Fe and Buenos Aires.
Licenses for territories in Argentina expire in
September 2022.
Paraguay
This Agreement includes, as a licensed
territory, all over Paraguay.
License for the territory in Paraguay is
currently in the process of being renewed.
1
1
0
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 PRODUCTION
CAPACITY
Information regarding installed capacity and approximate average utilization of production facilities per line of business, is set forth below.
YEAR ENDED DECEMBER 31
0009
0000
TOTAL INSTALLED
ANNUAL CAPACITY (MUC)
AVERAGE UTILIZATION
CAPACITY (%)
UTILIZATION CAPACITY
PEAK MONTH (%)
TOTAL INSTALLED
ANNUAL CAPACITY (MUC)
AVERAGE UTILIZATION
CAPACITY (%)
UTILIZATION CAPACITY
DURING PEAK MONTH (%)
SSD (MUC)
Andina Chile
Andina Brazil
Andina Argentina
Paraguay Refrescos
OTHER BEVERAGES (MUC)
Andina Chile
Andina Brazil
Andina Argentina
Paraguay Refrescos
Envases Central, Vital Aguas,
Vital Jugos (Chile)
OTHERS
PET (million bottles)
Preforms (million preforms)
Plastic caps (million caps)
Measuring unit
Total capacity bev.
337
030
300
008
00
05
005
09
005
06
968
0,000
0.7
0,505
05
58
00
05
50
07
05
00
09
00
67
50
68
63
60
55
59
70
00
36
50
50
60
93
88
000
307
000
378
008
00
56
007
33
000
06
860
0,000
0.7
0,590
50
53
39
39
50
03
05
09
53
38
60
00
59
60
63
58
57
60
50
00
36
59
66
85
97
000
0
0
0
During the period we continued modernizing and renewing our production plants in
order to maximize efficiency and productivity. We also made significant improvements to
ancillary services and complementary processes, such as water treatment plants and effluent
treatment stations. We believe we have sufficient capacity in each of the licensing territories
to meet consumer demand for each product format. Because bottling activity is seasonal,
with significantly higher demand during the summer and spring, and because soft drinks are
perishable, bottlers need to maintain significant surplus capacity in order to meet substantially
higher seasonal demand. The quality of our products is ensured through world-class practices
and procedures; we maintain quality control laboratories in each production plant where raw
materials are tested, and soft drink samples are analyzed.
As of December 31, 2020, our total
installed production capacity including
soft drinks, fruit juices and water was
1,594
million unit cases.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
DISTRIBUTION
PRINCIPAL CLIENTS
and
SUPPLIERS
Argentina
TWELVE MAIN CLIENTS BY COUNTRY
Distribution of products is carried
out through 90 third-party
transport companies, with a fleet of
737 trucks.
Brazil
Distribution of products is
carried out through ow transport
companies (889 trucks) and 6
third-party companies (50 trucks).
Chile
Distribution of products is carried
out through own transport
companies (244 trucks) and 70
third-party companies (569 trucks).
Paraguay
Distribution of products is carried
out through 45 third-party
transport companies, with a fleet of
335 trucks.
Argentina:
Brazil:
Chile:
Paraguay:
S.A. Imp.y Exp. de la Patagonia,
Cencosud S.A., Inc Sociedad
Anónima, Mistura S.A., Wal-
Mart Argentina S.R.L., Switch
Company S.A, Sita S.A., G & A
Distribuciones S.A.S, Cooperativa
Obrera Ltda C y V, Dinosaurio
S.A., J y H Distribuciones S R L
and Valle & Sierras SRL.
None of the clients individually
concentrate more than 10% of total
sales carried out.
Sendas Distribuidora Sa, Atacadao
Sa, Saerj - Supermercados
Associados Do Estado Do Rio
De Janeiro (10.554.856/0001-
62), Supermercados Mundial
Ltda, Super Mercado Zona Sul
Sa, Savegnago Supermercados
Ltda, Companhia Brasileira
Distribuicao, Wmb
Supermercados Brasil Ltda, Rederj
- Associacao Redeconomia De
Supermercados Do Estado Do Rio
De Janeiro (03.192.886/0001-00),
Carrefour Com E Industria Ltda,
Drift Comercio De Alimentos Sa
and Marj - Mercados Associados
Do Estado Do Rio De Janeiro
(03.585.249/0001- 02).
None of the clients individually
concentrate more than 10% of total
sales carried out.
Walmart Chile S.A., Cencosud
Retail S.A., Rendic Hermanos
S A, Alimentos Fruna LTDA,
Hipermercados Tottus S.A.,
Alvi Supermercados Mayoristas,
Supermercado y Dist.Uno Market,
Aramark Servicios Mineros y
Remotos, Super 10 S.A, Sodexo
Chile SPA, Dist.y Comerc.Puerto
Montt LTDA. and Sociedad
Quiroga Bernales LTDA.
None of the clients individually
concentrate more than 10% of total
sales carried out.
Cadena de Supermercados
Stock, Cadena de Tiendas
de Cercanía Biggie, Cadena
de Supermercados Super 6,
Cadena de Supermercados Real,
Mayorista Lekaja S.R.L, Cadena
de Supermercados Luisito,
Autoservice Sonia, Mayorista
Grefran Y Cia S.A., Cadena de
Supermercados Gran Via, Cadena
de Supermercados Salemma,
Tienda de Conveniencia Petrobras
and Cadena de Tiendas de
Cercanía City Market.
None of the clients individually
concentrate more than 10% of total
sales carried out.
0
0
0
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 TWELVE MAIN SUPPLIERS BY COUNTRY
Argentina:
Brazil:
Chile:
Paraguay:
Concentrate:
Serv. y Prod. para Bebidas Refrescantes
S.R.L.
Concentrate:
Recofarma Industria Amazonas Ltda
Concentrate:
Coca-Cola de Chile S.A.
Sweetener:
Complejo Azucarero Concepcion
Containers and Preforms:
Andina Empaques Argentina S.A.
Vinisa Fueguina S.R.L.
Glass Containers:
Cattorini Hnos. S.A.C.I.F.E I.
Resin Containers:
Dak Americas Argentina S.A.
Plastic caps:
Andina Empaques Argentina S.A.
Closure Systems International Sistemas de
Vedacao Ltda.
Sweetener:
Usina Alta Mogiana S.A. Acucar e Alcol
RefPet Containers:
Riopet Embalagens S.A
Plastic caps:
Bericap do Brasil Ltda
Water:
Cia Estadual de Aguas e Esgotos
Preforms:
Lorenpet Industria e Comercio de Plasticos
Ltda
Aluminum cans and lids:
Ball Embalagens Ltda
Cans:
Ball Beverage Can South America
Electric power/Gas:
Ecogen Rio Solucoes Energeticas S.A.
Chemical inputs
(Caustic Soda, Hydrochloric Acid, etc.):
Frini Ariel Ramon
Thermo-contractible:
Rio Chico S.A.
Thermo-contractible:
Valfilm MG Industria de Embalagens Ltda
Suppliers that concentrate more than 10%
of supplier spending:
Recofarma Industria Amazonas Ltda.
Sweetener:
Comercializadora de Productos Panor Ltda.
Iansa Ingredientes S.A.
Sucden Chile S.A.
Carbonic Gas:
Linde Gas Chile S.A.
Plastic containers and packaging:
Envases CMF S.A.
Glass containers:
Cristalerías de Chile S.A.
Cristalerías Toro S.P.A.
Labels:
Impregraph Ltda.
Plastic caps:
Sinea S.A.
Thermo-contractible:
Plasticos Arpoli S.P.A.
Suppliers that concentrate more than 10%
of supplier spending:
Coca-Cola de Chile S.A.
Concentrate:
Recofarma Industria Amazonas Ltda
Servicios y Productos para Bebidas
Sugar:
Inpasa del Paraguay S.A.
Azucarera Paraguaya S.A.
Alcotec Sociedad Anonima
Carbonic Gas:
Liquid Carbonic Del Paraguay S.A.
Caps:
Andina Empaques Argentina S.A.
Fructose:
Ingredion Argentina S.R.L
Arcor S.A.I.C.
Preforms:
Industrias PET S.A.E.C.A.
Suppliers that concentrate more than 10%
of supplier spending:
Recofarma Industria Amazonas Ltda
Servicios y Productos para Bebidas
0
0
3
Suppliers that concentrate more than 10%
of supplier spending:
Serv. y Prod. Para Bebidas Refrescantes S.R.L.
Complejo Azucarero Concepcion.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 OTHER
OPERATIONS
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 the
strategy to become the supplier of Coca-Cola
Andina’s group of companies, during 2020
AEA supplied Coca-Cola Andina Argentina
with non-returnable preforms, plastic caps
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 for preforms, 2 blowing
lines, one line for cases and 2 lines for caps.
Average utilization capacity during 2020 was
64.4% for injection lines, 38.2% for blowing
lines, 58.8% for cases and 40.6% for plastic caps.
Sales by format (units sold) during 2020 were
20.9 million Ref PET bottles and 491.6 million
preforms for non-returnable bottles, 0.5 million
cases and 443.1 million plastic caps.
MAIN SUPPLIERS
VJ S.A.
• Resin: DAK Americas Argentina S.A.,
PBB Polisur S.A., Dow Chemical and PTT
Polymer Marketing Company Lmt.
• Dye: Arcolor, Kemkoll, Clariant and
Concentrados y Compuestos S.A.
• Labels: Multi-Color Corp.
• Packaging: Argencraf S.A., Nem S.A.,
Afema S.A. and Fadecco.
• Electric energy: Edenor S.A., Cammesa
and Termoandes S.A.
DAK Americas Argentina S.A. individually
concentrates at least 10% of total purchases of
raw materials carried out.
MAIN CLIENTS:
Embotelladora del Atlántico S.A.1,
Coca-Cola Femsa S.A., Paraguay Refrescos
S.A.1, Reginald Lee S.A., Grupo Arca,
Andina Chile2, Montevideo Refrescos S.A.,
Envases CMF S.A., and Embol S.A.
Embotelladora del Atlántico S.A.1, Paraguay
Refrescos S.A.1, Reginald Lee S.A. and
Grupo Arca each individually concentrate at
least 10% of total sales carried out.
1 Subsidiary
2 Associate
In agreement with The Minute Maid Co. and
Coca-Cola de Chile S.A., VJ S.A. produces
nectars, fruit juices, fantasy drinks and isotonics
under the brands: Andina del Valle (fruit juices
and fruit nectars), Kapo (fantasy drink) Powerade
(isotonic); and Glaceau Vitamin Water (flavored
water with added vitamins and minerals). Andina
del Valle juice brands are commercialized in Tetra
Pak packaging, non-returnable PET packaging,
and returnable and non-returnable glass bottles.
Kapo is commercialized in sachets; Glaceau
Vitamin Water in non-returnable
PET bottles; Powerade in non-returnable PET
bottles; and Guallarauco in Tetra Pack and non-
returnable PET bottles.
In January 2011, the juice production business
is restructured allowing the incorporation of
the other Coca-Cola bottlers in Chile to the
ownership of VJ S.A. 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%.
PRODUCTION AND DISTRIBUTION
VJ S.A. operates one production plant located in
Renca (Santiago), where it owns 13 lines for
the production of Andina del Valle, Powerade,
Glaceau Vitamin Water, KAPO, Aquarius and
Guallarauco. Average utilization capacity during
2020, was 52.9%.
In Chile, VJ products are distributed exclusively
by the Coca-Cola bottlers in the country, in
each of its respective franchises.
MAIN SUPPLIERS
• Concentrate: Coca-Cola de Chile S.A.1
• Sweetener: Embotelladora Andina S.A.3
• Fruit pulps: Comercializadora Tradecos
Chile Ltda., Sucocitrico Cutrale Ltda –
Brasil and Aconcagua Foods S.A.
• Containers and bottles: Envases CMF
S.A.2, Tetra Pak de Chile Ltda. and
Cristalerías de Chile S.A.
• Caps: Sinea S.A. and Alucaps Mexica de
Occidente S.A de C.V.
• Packaging material: Plásticos Arpoli
Ltda., Plásticos Eroflex S.A. and Plastyverg
Industrial Ltda.
• Labels: Multi Color Chile S.A. and
Codepack S.A.
Coca-Cola de Chile S.A.1, Comercializadora
Tradecos Chile Ltda. and Envases CMF S.A.2
each individaually concentrate at least 10% of
total raw material purchases carried out.
MAIN CLIENTS:
Embotelladora Andina S.A.3 and
Coca-Cola Embonor S.A.1 each individually
concentrate at least 10% of total sales made.
1 Shareholder
2 Associate
3 Parent Company
1
1
4
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
MAIN CLIENTS:
Embotelladora Andina S.A.1, Coca-Cola
Embonor S.A., Envases Central S.A.,
Vital Aguas S.A., Nestlé Chile S.A., VJ
S.A., Empresas Demaria S.A, Fabrica de
Envases Plásticos, Unilever Chile Ltda,
Embotelladoras Bolivianas Unidas S.A.,
Tresmontes S.A. and Daily Foods S.A.
Embotelladora Andina S.A.1 and Coca-Cola
Embonor S.A. individually concentrate at
least 10% of total sales carried out.
1 Parent Company.
1
1
5
Vital Aguas S.A.
In agreement with The Coca-Cola Company,
Vital Aguas S.A. prepares and bottles the
following trademarks: Vital (mineral water)
and Glaceau SmartWater (purified water) in
the sparkling and still versions The trademark
Agua Mineral Vital is commercialized
in non-returnable glass bottles and non-
returnable PET bottles and the trademark
Glaceau SmartWater is commercialized in
non-returnable PET bottles. 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%.
PRODUCTION AND DISTRIBUTION
Vital Aguas operates two lines for the
production of mineral water and purified
water at the Chanqueahue plant, located in
the commune of Rengo in Chile. In Chile,
the products of Vital Aguas are distributed
exclusively by the Coca-Cola bottlers in each
of their respective franchise territories.
MAIN SUPPLIERS
• Concentrate: Coca-Cola de Chile S.A.1
• Carbonic Gas: Linde Gas Chile S.A.
• Labels: Resinplast S.A., Empack Flexible
S.A. and Adhesol Ltda.
• Packaging material: Calalsa Industrial S.A,
Ar Pack SAC and Plastyverg Industrial Ltda.
• Caps: Envases CMF S.A.2, Guala Closures
Deutschlan and Closurelogic GMBH.
• Containers (preforms): Envases CMF S.A.2
and Cristalerías de Chile 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.
MAIN CLIENTS:
Embotelladora Andina S.A.3 and Coca-Cola
Embonor S.A.1 each individually concentrate
at least 10% of total sales carried out.
MAIN CLIENTS:
Embotelladora Andina S.A.3 and Coca-Cola
Embonor S.A., individually concentrate at
least 10% of total sales carried out.
1 Shareholder
2 Associate
3 Parent Company
1 Shareholder
2 Associate
3 Parent Company
Envases Central S.A.
The Company is mainly focused on the
production of soft drinks (Coca-Cola, Fanta and
Sprite, among others) Aquarius flavored waters,
Andina del Valle nectars, and the Monster
energy drink. These products are packaged in
350 ml and 220 ml cans for soft drinks and in
437 ml cans for energy drinks, and in 250 ml,
500 ml, and 1.5 lt plastic PET bottles for soft
drinks and flavored waters, and in 300 ml, 1.5
lt, 1.75 lt and 2 lt plastic PET bottles for Andina
del Valle nectars. The bottlers of the Coca-Cola
System in Chile, along with Coca-Cola de
Chile, share the ownership of Envases Central.
Andina holds 59.27%, Embonor holds 34.31%,
and Coca-Cola de Chile holds 6.42%.
PRODUCTION AND DISTRIBUTION
Envases Central operates one production plant
in Santiago. 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.
MAIN SUPPLIERS
• Concentrate: Coca-Cola de Chile S.A.1
• Aluminum cans and lids: Ball Chile S.A.
• Fruit pulp: VJ S.A.2 and Comercializadora
Tradecos Chile SPA.
• Sweetener: Embotelladora Andina S.A.3
• Plastic bottles and caps: Envases CMF
S.A.2 and Bericap S.A.
• Labels: Multi-Color Chile S.A.
• Packaging material: Copack S.A., Corrupac
S.A. and Plasticos Arpoli Ltda.
Coca-Cola de Chile S.A.1, Ball Chile S.A. and
VJ S.A.2 individually concentrate at least 10% of
raw material purchases carried out.
Envases CMF S.A.
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
production of bottles located in Santiago.
The plant has 14 injection lines for preforms,
10 blowing lines, 11 lines for conventional
injection, 8 injector blowing lines, 4
extractionblowing lines, 3 lines for cases and 2
lines for caps.
Sales by format during 2020 were 142.0 million
non-returnable PET bottles, 30.0 million
returnable PET bottles, 703.0 million preforms
for non-returnable bottles and 886.0 million
products by conventional injection.
MAIN SUPPLIERS
• Resin: China Resources Chemical, Far
Eastern Polychem Industries, FE New Century
Industry (Singapore), Far Eastern Politex
(Vietnam), Dak Americas Llc Usa and Tricon
Energy, Ltd.
China Resources Chemical, Far Eastern
Polychem Industries and FE New Century
Industry (Singapore) individually concentrate
at least 10% of total purchases of raw
materials carried out.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
INVESTMENT
and
FINANCING POLICY
Within the powers granted by the Shareholders' Meeting, the Board defines financing and investment
policies. Our Bylaws do not define a particular financing structure or the investments that the Company
can make. 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 prior agreement of the Company's Board of Directors.
INVESTMENTS
CONSOLIDATED (CLP MILLION)
Argentina
Embotelladora del Atlántico S.A (*)
Andina Empaques Argentina S.A (*)
Brazil
Rio de Janeiro Refrescos Ltda.
Chile
Embotelladora Andina S.A
Vital Jugos S.A
Vital Aguas S.A
Envases Central S.A
Paraguay
Paraguay Refrescos S.A
* Considers IFRS 16
0009
116,172
00,000
00,070
837
00,737
00,737
56,000
00,676
008
5,083
9,960
05,083
05,083
0000
82,653
06.508
05,603
905
09.038
09,038
06.088
00,050
000
076
0,608
00,509
00,509
We have budgeted
USd 160-180
million for our capital investments
in 2021, which are mainly expected
to be used in:
Improving our information technologies with
a greater focus on big data and
artificial intelligence,
Improving our productive capacity (to
reformulate our products, as well as continue
with the returnables labelling project
in Argentina, and a production line in
Paraguay),
Improving infrastructure for greater
flexibility (mainly in Paraguay),
Returnable bottles and packaging
(optimizing use of multipurpose bottles),
Cold equipment (energy efficiency savings
and better customer service),
Truck renovation (Brazil and Chile) to
comply with regulations, and
Improve water use efficiency (Chile).
INSURANCE
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.
0
0
6
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.
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.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
C h a p t e r
9
"Right now
is when relationships
among people make the
difference, stay close and
stay in touch, even if
it is virtual"
PRINCIPAL
METRICS
0
0
7
0
WE ARE
COCA-COLA ANDINA
0
SUSTAINABLE VALUE
CREATION STRATEGY
3
A TOTAL BEVERAGE
COMPANY
0
OUR VALUE
CHAIN, RESOURCE
MANAGEMENT
5
FLEXIBILITY AND
COMMITMENT
6
CORPORATE
GOVERNANCE
7
INFORMATION FOR
THE FINANCIAL
MARKET
8
OUR COMPANY
9
PRINCIPAL
METRICS
00
EXHIBITS
GROWTH PILLAR:
MARKET LEADERSHIP
Argentina
Brazil
Chile
Paraguay
QUALITY AND EXCELLENCE
Certifications by country
ISO 9000 QUALITY
ISO 00000 ENVIRONMENT
OSHAS 08000 (or 05000) HEALTH AND SAFETY
FSSC00 FOOD SAFETY
THE COCA-COLA COMPANY
CORPORATE REQUIREMENTS, GAO
BEHAVIOR-BASED SAFETY
Sensory analysis
Number of trained panelists
2018
2019
2020
Argentina
Brazil
Chile
Paraguay
000
079
038
70
067
83
80
60
Total Coca-Cola Andina
530
390
Percentage tested products
2019
2018
Argentina
Brazil
Chile
85%
95%
88%
Paraguay
000%
000%
000%
000%
000%
070
005
033
70
079
2020
000%
000%
000%
000%
GROWTH PILLAR:
BROAD PORTFOLIO, CHANNELS
GEOGRAPHIES
and
BEVERAGE BENEFIT
Kilocalories per liter sold
Argentina
Brazil
Chile
Paraguay
2016
370.8
380.7
076.0
367.0
2017
350.7
370.3
053.9
355.0
2018
305.0
300.8
009.6
336.8
2019
307.0
330.3
006.7
309.0
2020
305.0
300.5
008.3
333.3
0
0
8
Reformulated products 2020
% Sales volume reformulated products
involving sugar reduction
% Sales volume reformulated products
for other reasons (excluding sugar reduction)
Argentina
5.9%
0.7%
Brazil
3.7%
Chile
5.0%
0.0%
00.0%
Paraguay
0.0%
0.0%
Note: Other reasons, refers to nutritional additives, fruit juices among others.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
CLIENT DEVELOPMENT
Number of clients ('000)
VOLUME
Total Sales Volume (MUC)
2015
2016
2017
2018
2019
2020
2018
2019
2020
Argentina
Brazil
Chile
Paraguay
66
97
65
53
60
79
63
53
66
89
65
57
60
86
67
55
59
85
60
58
Total Coca-Cola Andina
080
059
077
068
067
65
87
60
58
070
Total
SOFT DRINKS
WATERS
Argentina Brazil
Chile
Paraguay Argentina Brazil
Chile
Paraguay Argentina Brazil
Chile
Paraguay
000.9
009.0
030.0
68.0
078.0
059.3
039.6
69.3
066.7
065.0
036.3
66.0
067.0
000.5
050.7
56.0
009.5
006.8
058.0
56.0
005.0
005.5
053.8
55.0
03.0
7.7
00.5
08.9
00.5
00.6
JUICES AND OTHER NON-ALCOHOLIC BEVERAGES
00.7
00.0
36.0
BEER AND OTHER ALCOHOLIC BEVERAGES
-
06.0
0.0
9.9
0.0
00.3
36.0
08.7
0.6
-
7.0
5.0
-
7.9
5.0
00.0
07.9
00.0
9.5
0.0
08.8
33.9
03.0
7.5
6.5
0.8
-
Notes: MUC - Million Unit Cases (product unit used to measure volumes, equal to about 5.678 liters).
Argentina does not consider beers.
Volumes by category in Argentina were redistributed in previous years to show values comparable to 2020. Total Volumes did not change.
Consumer claims rate
2017
Argentina
Brazil
Chile
Paraguay
0.7
0.9
9.7
0.5
2018
0.5
0.7
7.5
0.3
2019
0.9
0.6
6.8
0.0
2020
3.9
0.6
8.5
0.5
Annual per capita consumption
2018
2019
2020
Argentina Brazil
Chile
Paraguay Argentina Brazil
Chile
Paraguay Argentina Brazil
Chile
Paraguay
SOFT DRINKS
WATERS
069.9
005.0
377.0
090.6
057.0
000.7
370.8
088.0
050.0
009.7
360.6
080.s9
30.0
.0
89.7
03.9
09.0
00.7
95.3
06.0
09.0
08.0
88.0
00.3
JUICES AND OTHER NON-ALCOHOLIC BEVERAGES
08.7
08.9
50.8
07.0
07.0
09.0
53.0
08.0
06.0
06.7
08.7
06.0
BEER AND OTHER ALCOHOLIC BEVERAGES
70.0
07.0
0.0
-
70.0
09.0
0.6
-
70.0
03.0
08.0
-
Note: Claims rate = No. of operating claims*1,000,000 / Bottles sold.
Note: Measured in number of 8 oz bottles
0
0
9
Percentage of customer service via Call-Center
2015
2016
Reclamos
Pedidos (ventas)
Solicitudes
(servicios, visitas, etc.)
03.6%
00.0%
05.6%
00.0%
08.0%
00.3%
2017
9.9%
30.7%
05.9%
2018
9.7%
35.9%
00.8%
2019
9.0%
35.0%
00.0%
2020
0.3%
50.0%
07.0%
Consultas
06.0%
08.0%
30.5%
33.6%
30.5%
06.0%
Total de llamadas
675,309
705,006
987,009
993,560
0,060,000
0,050,030
Soft drinks sales by format
2018
2019
2020
Argentina Brazil
Chile
Paraguay Argentina Brazil
Chile
Paraguay Argentina Brazil
Chile
Paraguay
FAMILY SIZE NON-RETURNABLE
00.0%
60.5%
36.0%
00.9%
00.0%
57.8%
37.6%
00.0%
37.7%
58.0%
00.7%
00.8%
FAMILY SIZE RETURNABLE
05.5%
00.0%
00.0%
00.0%
06.8%
03.0%
00.9%
03.0%
50.0%
06.8%
00.5%
06.0%
SINGLE-SERVE NON-RETURNABLE
9.7%
00.5%
00.3%
00.5%
00.0%
00.5%
03.6%
00.3%
7.0%
00.0%
00.6%
8.3%
SINGLE-SERVE RETURNABLE
0.0%
0.0%
3.9%
3.0%
0.3%
0.0%
3.7%
3.3%
0.6%
0.5%
0.0%
0.9%
SSD POST MIX
0.0%
0.5%
0.0%
0.0%
0.3%
0.6%
0.0%
0.0%
0.5%
0.5%
0.8%
0.7%
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Sales by channel
2018
2019
2020
Argentina Brazil
Chile
Paraguay Argentina Brazil
Chile
Paraguay Argentina Brazil
Chile
Paraguay
TRADITIONAL (MOM & POPS)
37.0%
30.8%
06.0%
37.3%
37.0%
33.0%
06.5%
38.7%
36.5%
33.8%
50.0%
00.0%
WHOLESALES
30.5%
09.0%
03.0%
37.0%
30.0%
09.5%
00.9%
35.0%
36.3%
00.9%
03.0%
36.0%
SUPERMARKETS
03.0%
33.6%
07.0%
00.0%
03.0%
30.8%
07.0%
03.0%
03.0%
30.7%
03.6%
00.3%
ON-PREMISE
6.7%
05.5%
03.6%
03.5%
7.6%
05.7%
03.0%
03.0%
0.0%
00.7%
00.0%
9.3%
Soft drink sales by flavor
2018
2019
2020
Argentina Brazil
Chile
Paraguay Argentina Brazil
Chile
Paraguay Argentina Brazil
Chile
Paraguay
Coca-Cola
60.0%
69.5%
08.9%
50.0%
60.0%
70.5%
50,0%
50.5%
65.3%
70.7%
55.0%
55.0%
Other sugary soft drinks
03.9%
00.0%
00.0%
08.7%
00.0%
05.7%
07,9%
07.0%
08.0%
00.0%
06.0%
06.7%
Coca-Cola sugar free / light
00.9%
6.0%
00.0%
3.0%
00.3%
7.0%
00,8%
3.3%
00.0%
6.9%
03.6%
0.9%
GROWTH PILLAR:
VALUE CHAIN
EFFICIENCY PRODUCTIVITY
and
WATER MANAGEMENT
Total water consumption (m3)
2014
2015
2016
2017
2018
2019
2020
Other light soft drinks
0.8%
0.0%
6.0%
00.0%
5.9%
6.6%
6,3%
00.8%
5.3%
6.3%
0.8%
05.0%
Argentina
0,660,570
0,690,833
0,750,080
0,830,008
0,660,009
0,307,039
0,068,079
Brazil
Chile
0,906,905
0,000,073
0,097,955
0,008,098
0,930,800
0,058,065
0,867,906
0,570,379
0,050,098
0,360,736
0,060,080
0,075,850
0,006,309
0,993,097
Paraguay
768,008
770,009
706,500
707,880
707,098
700,056
668,700
Total Coca-Cola Andina
7,907,300
8,300,903
8,057,080
7,709,979
7,378,878
7,003,909
6,698,360
0
0
0
Liters of water / liter of beverage produced
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
2014
0.03
0.76
0.70
0.09
0.03
2015
0.00
0.73
0.60
0.09
0.07
2016
0.00
0.70
0.50
0.00
0.00
2017
0.38
0.60
0.06
0.95
0.00
2018
2019
2020
0.33
0.53
0.33
0.87
0.00
0.30
0.50
0.06
0.85
0.96
0.33
0.39
0.00
0.80
0.86
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Wastewater disposal at own treatment plants (m3)
Argentina
Brazil
Chile
Paraguay
2016
2017
2018
2019
2020
0,093,905
0,580,059
0,060,307
0,097,003
0,330,006
500,863
0
655,079
095,030
389,538
303,098
655,503
097,009
309,770
706,066
000,370
096,059
000,056
330,357
098,506
Total Coca-Cola Andina
0,006,306
0,775,067
0,607,008
0,507,336
0,006,007
Water source (m3)
Wastewater disposal at third-party treatment plants (m3)
GROUNDWATER
6,050,080
6,060,058
5,805,873
5,505,000
5,009,830
Argentina
2016
2017
2018
2019
2020
NETWORK
SURFACE
RAIN
INTERNALLY TREATED EFFLUENT
0,806,098
0,560,000
0,003,070
0,307,309
0
0
0
0
0,099
0
007,865
360,507
0,668
0
999
00
978,097
386,800
396
83,097
TOTAL WATER USED
8,057,080
7,709,978
7,378,877
7,003,900
6,698,360
Brazil
Chile
Paraguay
2016
67,070
099,086
2017
60,830
0
2018
53,666
0
2019
50,079
0
2020
00,006
0
0,303,360
0,089,083
967,606
966,689
899,307
0
0
0
0
0
Total Coca-Cola Andina
0,579,906
0,050,003
0,000,070
0,006,768
939,393
0
0
0
Water use in productive process (m3)
Reused water (m3)
2016
2017
2018
2019
2020
2018
2019
2020
BEVERAGES
3,807,060
3,660,965
3,670,073
3.678,600
3,593,503
Argentina
0
0
033,357
AUXILIARY SERVICES
0,030,300
0,065,003
3,708,600
3,535,097
3,000,808
TOTAL WATER USED
8,057,080
7,709,978
7,378,877
7,003,900
6,698,360
Effluents' disposal (m3)
2016
2017
2018
2019
2020
OWN TREATMENT
0,006,306
0,775,067
0,607,008
0,507,336
0,006,007
THIRD PARTY TREATEMENT
0,579,906
0,050,003
0,000,070
0,006,768
939,393
TOTAL EFFLUENTS' DISPOSAL
3,606,000
3,905,080
3,668,300
3,560,000
3,085,800
Brazil
Chile
063,089
005,808
83,097
0,303
0,000
0
Paraguay
55,900
058,638
099,005
Total reused water
000,300
086,088
505,799
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
SUSTAINABLE PACKAGING
Generation of solid waste (gr of solid waste / liter of beverage)
Recycled resin (%)
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
2015
03.0
00.9
00.8
06.0
00.6
Recycling of solid waste (%)
Argentina
Brazil
Chile
Paraguay
2015
90.0%
90.0%
83.3%
75.3%
Total Coca-Cola Andina
85.0%
2016
00.0
6.5
09.0
05.3
03.8
2016
89.7%
88.7%
80.0%
70.9%
80.0%
2017
05.7
6.3
08.8
00.0
00.5
2017
89.6%
88.0%
80.6%
73.0%
83.8%
2018
00.3
6.8
07.5
09.6
03.0
2018
90.8%
83.0%
83.5%
70.3%
80.5%
2019
00.7
7.0
00.0
09.0
03.9
2019
90.0%
87.3%
89.0%
80.0%
88.7%
2020
03.9
7.8
03.0
08.0
00.8
2020
90.8%
90.0%
89.5%
93.7%
90.0%
Argentina
Brazil
TOTAL RECYCLED RESIN
2019
7.7%
0.0%
3.6%
2020
7.8%
05.3%
8.3%
PET savings
SAVINGS
TOTAL TONS
SAVINGS
TOTAL USD
2017
2018
2019
2020
036
0,305
005
003
006,306
0,737,076
700,037
088,535
Note: 2018 includes the APET aseptic line project.
Percentage of Sales Volume in Returnable
Packaging on NARTD Volume
2018
2019
2020
Argentina
39.5%
00.3%
07.5%
Brazil
Chile
00.0%
00.0%
00.0%
30.7%
33.9%
36.3%
Paraguay
37.0%
37.5%
00.0%
Post-consumption recovered (tons)
0
0
0
Argentina
Brazil
Chile
Paraguay
2016
0
0,008
3
0
2017
00
3,070
09
00
2018
00
5,500
05
9
2019
50
6,006
50
03
Total Coca-Cola Andina
0,030
3,030
5,587
6,030
Note: Tons of PET, in Brazil it also includes cans.
2020
500
7,730
967
00
9,003
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Generation of solid waste (tons)
Virgin plastic PET
Recylced plastic PET
Virgin glass
Recylced glass
Aluminum
Tetrabrik
Virgin plastic caps
Recycled plastic caps
Virgin plastic cases
Recycled plastic cases
Plastic stretch film + shrink film
Wood pallets
Sugar
Fructose
CO0 (raw material)
Chapadur (hardboard)
Virgin Ref PET
Recycled Ref PET
Argentina
Brazil
Chile
0007
0008
0009
0000
0007
0008
0009
0000
0007
0008
0009
0000
0007
07,600
07,006
00,097
00,768
00,077
05,670
00,335
08,656
03,500
00,058
00,070
00,600
5,590
0,000
3,090
0,875
-
-
0,003
8,803
3,900
-
087
0,009
3,003
0,303
658
390
997
793
0,006
500
053
5,006
0,000
-
-
-
0,837
083
-
880
0,650
-
3,370
0,068
-
6,906
3,690
0,909
900
800
-
8,067
-
-
-
-
0,063
0,780
-
-
0,009
0,309
0,505
0,553
0,000
0,995
0,709
-
353
800
08
599
986
-
308
096
-
096
058
0,907
0,303
3,088
005,573
0,790
3,353
0,396
0,655
-
569
-
0,696
0,958
-
356
-
0,777
0,800
-
770
-
0,880
3,390
500
0,000
-
860
-
0,735
-
-
303
-
399
-
-
-
-
085
-
0,509
0,755
0,809
0,073
Paraguay
0008
6,096
-
0009
6,076
-
-
976
707
-
300
000
050
-
000
803
-
085
60
960
660
Total Coca-Cola Andina (tons)
2017
2018
2019
2020
Weight of
all plastic
containers
Percentage of
recyclable plastic
containers
Percentage of
recycled content
within plastic
packaging
76,305
70,976
77,035
70,083
000%
000%
000%
000%
07.0%
00.0%
00.6%
00.7%
Note: All indicators include film, shrink film, cases, caps and PET
resin from returnable and disposable bottles. Does not include label.
0000
5,307
-
-
-
-
070
700
-
037
79
777
-
-
-
-
00,080
0,579
000,070
000,033
3,098
0,609
0,086
0,350
-
-
-
-
058
-
-
-
-
-
566
000
-
-
800
-
09,606
6,535
0,305
0,095
906
-
0,750
03,709
00,880
90,596
88,706
77,703
70,837
000,570
007,039
000,067
009,007
73,609
60,503
53,803
67,050
33,056
09,595
03,870
03,386
9,080
8,685
089
7,390
0,080
7,030
-
-
-
7,083
9,800
9,500
3,939 0,005,308
3,087
-
-
-
-
-
-
-
0,330
-
-
-
-
-
-
-
-
9,677
3,706
-
-
0,707
9,563
3,379
0,867
-
-
-
-
-
-
7,808
7,399
7,085
6,000
0,800
-
-
-
-
-
-
68
-
-
-
000
-
-
-
-
0,056
0,868
000
-
-
00,750
00,703
0,807
0,707
830
-
-
-
333
-
Generation of solid waste (tons)
Argentina
Brazil
Chile
Paraguay
0007
897
0,555
078
000
8
0,808
0,005
950
-
0,087
0,007
0008
0,009
3,006
060
078
08
0,770
0,093
0,063
-
3,050
0,539
0009
0,006
0,880
306
090
53
0,800
0,530
0,395
-
0,006
009
0000
830
0,900
305
080
05
0,870
0,080
0,605
-
0,030
089
0007
0008
880
003
003
008
70
0,000
630
0,889
-
050
900
950
505
009
379
57
0,088
666
0,706
7
053
0,055
0009
966
790
063
390
00
0,000
770
3,370
587
68
0,070
0000
880
603
303
303
30
0,550
690
3,930
900
009
980
0007
707
5,950
395
55
00
0,837
806
3,096
360
-
0008
500
6,060
000
60
6
0,370
707
3,089
055
-
0009
785
00,507
003
000
03
0,580
830
0,080
-
350
0,988
0,357
0,850
0000
703
0,933
005
090
00
0,777
706
0,935
050
50
0,075
0007
050
3,009
09
059
-
307
000
893
-
-
0,080
0008
506
0,700
07
050
-
090
000
950
-
03
0,905
0009
580
0,800
80
570
0
050
090
987
-
300
970
0000
076
0,779
86
067
-
003
030
0,030
-
953
009
Paper / Cardboard
Glass
Caps
Metals (excluding aluminum)
Aluminum
PET
Plastic (all except PET and PP from caps)
Wood
Organic
Others recycable
Others non-recycable
Hazardous waste (tons)
Treated by local third-parties
0007
0,039
0008
795
0009
878
0000
980
0007
0008
06
06
0009
89
0000
003
0007
006
0008
008
0009
007
0000
0007
0008
0009
0000
007
00
3
00
0
Argentina
Brazil
Chile
Paraguay
Note: 100% of hazardous waste is treated nationally in each operation.
0
0
3
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
ENERGY MANAGEMENT
ENERGY
Energy consumption (MJ)
2015
2016
2017
2018
2019
2020
EMISSIONS
Emissions (kg CO2 equivalent)
Argentina
036,058,050
005,967,650
007,306,969
009,035,770
360,853,000
333,985,660
Brazil
Chile
530,900,688
300,500,078
300,000,575
350,777,338
380,559,873
360,996,908
063,307,803
070,778,909
030,575,870
070,075,003
006,093,600
038,670,007
TOTAL SCOPE 0
TOTAL SCOPE 0
TOTAL SCOPE 3
2017
53,055,330
60,089,906
2018
70,307,083
37,073,600
2019
05,977,830
55,003,868
2020
55,077,803
008,397,500
007,059,090
003,339,009
000,003,780
0,308,703,660
Paraguay
000,805,000
090,605,335
093,060,093
090,000,099
093,680,300
070,008,300
TOTAL KGCO0 EQ EMITTED
000,500,330
300,700,006
300,005,080
0,600,599,005
Total Coca-Cola Andina
0,003,095,750
0,089,850,380
0,086,088,706
0,000,890,505
0,086,588,839
0,000,785.093
Note: In 2020 the methodology was updated, and scope 3 coverage was expanded, including cold equipment, raw materials, logistics and
waste disposal.
Energy consumption from renewable sources (MJ)
2015
2017
2016
2018
2019
2020
Biomass
053,580,003
65,078,087
60,700,605
60,056,777
60,670,000
58,070,590
Hydroelectric
008,975,580
009,958,000
000,080,300
009,580,000
000,077,000
99,705,005
Solar
Wind
Biogas
0,059
0
600
0
605
0
000
0
0
0
30,090,559
038,335,086
00,636,800
0,365,705
00,399,000
07,000,803
03,059,000
08,080,606
Total Coca-Cola Andina
095,093,906
076,803,000
087,380,800
030,855,903
330,097,800
300,037,509
Cold equipment
COLD EQUIPMENT WITH
ENERGY SAVINGS (%)
2018
60%
2019
79%
2020
90%
Total kg CO0eq EMITTED 000,706,909 003,590,050 090,830,900
PER COLD EQUIPMENT
Emissions ratio (gr CO2 (e) / liter of
beverage produced)
2017
2018
2019
2020
SCOPES 0 + 0 + 3
60.50
07.00
00.86
050.50
SCOPES 0 + 0
30.00
30.35
07.56
80.56
Number of trucks
Kilometers travelled
OWN TRUCKS
2018
999
2019
0,003
2020
0,033
2018
2019
2020
OWN TRUCKS
00,863,960 03,590,006
07,060,009
THIRD PARTY TRUCKS
0,735
0,706
0,690
THIRD PARTY TRUCKS
69,708,003 70,550,098 70,053,983
TOTAL KILOMETERS
TRAVELLED
80,590,007 80,000,600 87,000,000
0
0
0
Energy use ratio (MJ/ liter of beverage produced)
2015
2016
2017
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
0.33
0.38
0.08
0.60
0.36
0.30
0.03
0.09
0.50
0.30
0.35
0.08
0.08
0.53
0.30
2018
0.36
0.08
0.30
0.50
0.33
2019
0.36
0.08
0.06
0.50
0.30
2020
0.36
0.07
0.05
0.07
0.30
Type of trucks
2019
NO. EURO V AND EQUIVALENTS
0,007
OTHERS
Total
0,600
0,809
Note: Includes own and third party trucks.
2020
0,033
0,590
0,800
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
GROWTH PILLAR:
AGILITY, FLEXIBILITY
COMMITMENT
and
WORK ENVIRONMENT
PERSONNEL
Collaborators by gender and category, 2020
Argentina
Brazil
Chile
Paraguay
WOMEN
00
08
005
60
09
076
MANAGERS AND PRINCIPAL
OFFICERS (N; N-0; N-0)
PROFESSIONALS AND TECHNICIANS
IN CHARGE OF STAFF (N-3)
PROFESSIONALS AND TECHNICIANS
NOT IN CHARGE OF STAFF (N-3)
OTHER COLLABORATORS
SEASONAL
TOTAL COLLABORATORS
Note: Holding excluded.
MEN
83
000
066
0,800
338
0,807
WOMEN
00
68
MEN
36
080
090
386
800
0
6,030
0
0,080
6,636
WOMEN
00
60
050
030
97
750
MEN
07
058
070
0,658
900
0,053
WOMEN
05
30
70
60
0
MEN
03
036
90
980
73
080
0,307
Collaborators by operation and gender
Collaborators by gender and age, 2020
These figures are FTEs
2017
2018
2019
2020
Argentina
Brazil
Chile
Paraguay
WOMEN
MEN
Total
WOMEN
MEN
Total
WOMEN
MEN
Total
WOMEN
MEN
Total
WOMEN
Argentina
079
0,967
3,006
070
0,900
3,076
060
0,795
3,059
076
0,807
3,000
YOUNGER THAN 08
Brazil
Chile
Paraguay
Holding
806
6,950
7,780
0,000
6,895
7,895
0,083
6,909
8,030
0,080
6,636
7,807
BETWEEN 08 AND 09
003
050
07
3,006
3,009
036
0,909
3,355
575
0,033
0,808
750
0,053
0,906
BETWEEN 30 AND 00
0,030
0,580
067
0,033
0,600
080
0,065
0,606
080
0,307
0,088
BETWEEN 00 AND 50
00
39
07
00
39
09
00
00
07
00
00
BETWEEN 50 AND 60
TOTAL COLLABORATORS
0,686
00,379
06,065
0,890
00,073
06,065
0,000
05,060
07,586
0,006
00,907
07,350
BETWEEN 60 AND 70
Note: FTE = Full time employees
OLDER THAN 70
0
36
050
69
06
0
0
MEN
0
366
0,000
956
030
30
0
WOMEN
06
500
003
063
53
0
0
MEN
05
0,989
0,680
0.007
508
03
0
WOMEN
3
006
303
060
75
5
0
MEN
0
0,005
0,500
880
509
009
6
WOMEN
0
76
68
05
00
0
0
MEN
0
080
580
066
70
5
0
0
0
5
TOTAL COLLABORATORS
076
0,807
0,080
6,636
750
0,053
080
0,307
Note: Holding excluded.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
New hirings per age and gender, 2020
Argentina
Brazil
Chile
Paraguay
WOMEN
8
5
0
03
MEN
30
09
0
59
WOMEN
097
077
6
380
MEN
970
0,000
63
0,050
WOMEN
MEN
WOMEN
MEN
30
09
0
59
33
65
00
009
8
3
0
00
05
00
0
06
YOUNGER THAN 30
BETWEEN 30 AND 50
OLDER THAN 50
TOTAL COLLABORATORS
Note: Holding excluded.
Distribution by seniority, 2020
Argentina
LESS THAN 3 YEARS
BETWEEN 3 AND 6 YEARS
BETWEEN 6 AND 9 YEARS
BETWEEN 9 AND 00 YEARS
MORE THAN 00 YEARS
TOTAL COLLABORATORS
Note: Holding excluded.
509
370
095
090
0,000
3,000
Brazil
0,300
0,889
596
000
598
7,807
Chile
0,993
606
360
086
600
0,906
PEOPLE DEVELOPMENT
Training and education by gender
2017
TRAINING HOURS FOR WOMEN
TRAINING HOURS FOR MEN
TOTAL TRAINING HOURS
35,066
090,769
030,035
2018
30,808
090,563
309.390
2019
08,009
000,668
088,897
Note: As of 2020, training hours of own personnel are only considered.
Average training and education hours by gender
AVERAGE TRAINING HOURS FOR WOMEN
AVERAGE TRAINING HOURS FOR MEN
AVERAGE TRAINING HOURS PER EMPLOYEE
2017
00.8
03.5
00.3
Note: As of 2020, training hours of own personnel are only considered.
Distribution of training and education hours by topic
Paraguay
365
553
003
007
050
DEVELOPMENT OF WORK SKILLS
DEVELOPMENT OF ABILITIES AND EMPLOYABILITY
WORK SAFETY
SUSTAINABILITY AND ENVIRONMENT
0,088
ETHICS AND CODE OF CONDUCT
2017
08.0%
08.0%
07.0%
0.0%
3.0%
2018
08.0
09.0
09.0
2018
00.0%
05.0%
03.0%
3.0%
5.0%
2019
00.7
05.6
06.0
2019
00.6%
09.7%
06.7%
5.9%
6.0%
2020
00,005
056,030
096,077
2020
09.0
00.6
00.3
2020
00.5%
00.0%
07.0%
6.5%
5.0%
0
0
6
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Education hours by gender and category, 2020
Monthly average turnover rate
Argentina
Brazil
Chile
Paraguay
WOMEN
760
MEN
5,600
WOMEN
008
MEN
507
WOMEN
053
MEN
009
WOMEN
300
MEN
050
700
00,090
0,809
0,783
0,670
0,790
933
890
Argentina
Brazil
Chile
Paraguay
2018
0.0%
0.3%
0.0%
0.0%
2019
0.0%
0.9%
0.3%
0.3%
2020
0.0%
0.7%
0.0%
0.3%
0,859
6,800
7,077
7,830
7,667
0,807
690
0,736
Note: Equity investees excluded.
550
000
08,070
7,070
68,080
0,000
0,673
0
0
070
0,600
0,000
069
0
3,000
990
Internal Climate Evaluation (% favorability)
MANAGERS AND PRINCIPAL
OFFICERS (N; N-0; N-0)
PROFESSIONALS AND TECHNICIANS
IN CHARGE OF STAFF (N-3)
PROFESSIONALS AND TECHNICIANS
NOT IN CHARGE OF STAFF (N-3)
OTHER COLLABORATORS
SEASONAL
TOTAL COLLABORATORS
5,005
55,658
06,305
80,005
05,680
00,700
0,000
8,097
Note: Holding excluded. Own personnel.
Percentage of collaborators with
performance evaluation
Unionization rate
2017
2018
2019
2020
2017
2018
2019
2020
Argentina
Brazil
Chile
Paraguay
2015
60%
66%
60%
66%
2016
60%
66%
60%
66%
2017
60%
70%
66%
60%
2018
60%
70%
66%
60%
2019
69%
76%
67%
70%
2020
69%
76%
67%
70%
Argentina
65.7%
88.5%
87.0%
55.0%
Argentina
67.0%
66.0%
66.0%
66.6%
Note: Equity investees excluded.
Brazil
Chile
000.0%
000.0%
000.0%
000.0%
Brazil
9.7%
00.0%
9.6%
8.3%
96.0%
000.0%
97.3%
97.0%
Chile
50.5%
50.9%
09.6%
50.0%
Paraguay
60.0%
57.9%
58.0%
70.9%
Paraguay
35.0%
35.5%
00.9%
07.6%
Note: on own personnel
0
0
7
Initial base salary/legal minimum wage ratio
Argentina
Brazil
Chile
Paraguay
2015
097.0%
000.0%
000.0%
000.0%
2016
080.0%
008.0%
000.0%
007.0%
2017
360.0%
006.0%
000.0%
006.0%
2018
2019
370.0%
309.0%
006.0%
006.0%
000.0%
073.3%
008.0%
000.0%
2020
330.6%
005.0%
003.0%
000.0%
Note: Initial minimum base salary without additional.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
DIVERSITY AND INCLUSION
Personnel distribution
by nationality
2018
2019
2020
Argentina
3,008
3,000
3,093
Brazil
Chile
Paraguay
OTHERS
7,509
8,000
7,803
3,070
0,006
0,008
0.590
0,607
0,070
700
677
756
People with disabilities and social minorities
2015
2016
Brazil
Chile
Total Coca-Cola Andina
Note: Chile is recorded since 2018
007
-
007
073
-
073
2017
000
-
000
2018
2019
356
00
370
308
30
379
2020
390
00
036
Number of collaborators who took leave of absence (maternity and paternity)
2018
2019
2020
Argentina
Brazil
Chile
Paraguay
WOMEN
00
38
30
00
Total Coca-Cola Andina
000
MEN
008
090
90
56
056
WOMEN
00
33
05
07
97
MEN
000
000
009
65
098
WOMEN
00
56
03
05
008
Number of collaborators who continue to work after leave of absence
(maternity and paternity)
2018
2019
2020
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
Women
00
30
08
00
90
men
008
073
s/d
50
305
Women
00
30
08
07
86
men
000
098
s/d
60
360
Women
00
00
00
00
009
0
0
8
MEN
000
068
96
60
000
men
97
009
80
58
386
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
COMMUNITY
Number of beneficiaries in the community
Argentina
Brazil
Chile
Paraguay
2016
2017
2018
2019
000,090
000,005
000,990
008,083
6,506
99,000
03,573
7,000
0,956
8,360
080,005
0,305,795
353,038
0,036,080
800
08,638
00,860
06,500
2020
350,597
300,385
HEALTH AND SAFETY
Absenteeism rate
Argentina
Brazil
Chile
Paraguay
Accident rate (LTIR)
2015
3.00%
0.07%
3.09%
0.57%
2016
3.09%
0.78%
3.30%
0.60%
2017
0.85%
0.50%
0.00%
0.30%
2018
0.06%
0.35%
0.03%
0.76%
2019
0.37%
0.56%
3.35%
0.69%
2020
0.97%
0.00%
5.35%
0.60%
Total Coca-Cola Andina
050,967
900,090
0,580,380
600,509
0,705,680
Hours of volunteer work
Argentina
Brazil
Chile
Paraguay
Total Coca-Cola Andina
2016
007
-
0,005
-
0,050
2017
300
-
970
00
0,300
2018
0,096
-
0,505
00
0,033
2019
0,000
300
080
000
0,737
2020
907
050
809
-
0,008
2015
2016
2017
2018
2019
2020
Argentina
Brazil
Chile
Paraguay
6.0
0.5
0.0
0.6
0.8
0.6
0.6
0.5
Note: Equity investees excluded.
Days of leave due to accident rate (LTISR)
2015
000.0
6.9
53.0
3.8
2016
030.6
6.6
08.0
3.7
Argentina
Brazil
Chile
Paraguay
Note: Equity investees excluded.
0.0
0.6
0.0
0.6
2017
007.9
6.6
53.3
6.9
0.6
0.0
0.6
0.0
2018
75.5
5.5
07.0
0.7
3.0
0.0
0.8
0.5
2019
87.0
0.8
00.6
3.5
0.0
0.0
0.0
0.0
2020
80.7
3.9
37.3
0.3
Liters of beverage donated
Argentina
Brazil
Chile
Paraguay
2016
2017
2018
2019
080,909
000,376
663,300
007,850
-
-
0,703
080,650
360,000
985,033
00,870
0,078
00,089
3,079
600,700
07,500
2020
905,007
000,787
509,000
500,000
Total Coca-Cola Andina
575,009
570,775
0,665,639
0,009,350
0,008,069
0
0
9
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
2018
0,009
0,000
0,760
0,097
9,380
2018
96.8%
99.8%
95.5%
90.0%
2018
95.9%
98.5%
97.0%
60.0%
2019
0,305
0,060
0,850
0,086
9,500
2019
96.3%
99.7%
96.8%
89.0%
2019
90.9%
98.0%
98.9%
60.0%
2020
0,007
3,090
0,700
0,000
8,500
2020
96.3%
99.7%
90.9%
90.0%
2020
95.0%
99.0%
98.0%
09.0%
2017
0,369
0,030
0,009
0,090
9,900
2017
97.0%
99.7%
95.0%
87.8%
2017
98.6%
99.3%
98.9%
60.5%
SUPPLIERS
Number of suppliers
Argentina
Brazil
Chile
Paraguay
2015
0,000
0,383
0,666
-
2016
0,709
0,830
0,860
-
Total Coca-Cola Andina
8,093
9,000
Percentage national suppliers
Argentina
Brazil
Chile
Paraguay
2015
97.0%
99.8%
95.6%
87.0%
2016
97.0%
99.7%
95.0%
85.9%
Percentage of expense on national suppliers
Argentina
Brazil
Chile
Paraguay
2015
98.9%
99.9%
97.5%
50.0%
2016
99.9%
99.8%
97.5%
00.0%
Number of suppliers evaluated
2018
2019
2020
Argentina
Brazil
Chile
Paraguay
038
00
09
68
Total Coca-Cola Andina
365
078
36
006
08
508
59
06
076
50
333
0
3
0
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
C h a p t e r
10
EXHIBITS
0
3
0
“The future has always been
uncertain, but together we can imagine
and create a better one"
0
WE ARE
COCA-COLA ANDINA
0
SUSTAINABLE VALUE
CREATION STRATEGY
3
A TOTAL BEVERAGE
COMPANY
0
OUR VALUE
CHAIN, RESOURCE
MANAGEMENT
5
FLEXIBILITY AND
COMMITMENT
6
CORPORATE
GOVERNANCE
7
INFORMATION FOR
THE FINANCIAL
MARKET
8
OUR COMPANY
9
PRINCIPAL
METRICS
10
EXHIBITS
RISK
FACTORS
To download the
risk factors of our 2020
Integrated Report,
click here.
The Company 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. 68% and 65% of our net sales
for 2019 and 2020, respectively, were derived
from the distribution of soft drinks under
The Coca-Cola Company trademarks. In
addition, The Coca-Cola Company currently
owns, directly or through its subsidiaries,
14.65% of our Series A shares (representing
7.33% of our total shares) and benefits
from certain rights under a shareholders’
agreement. We produce, commercialize
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 is in the process of being
renewed. 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 epidemic diseases such as the recent
outbreak of the COVID-19 pandemic,
and 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, especially affected by the
COVID-19 pandemic; 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
0
3
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 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.
In 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
0
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
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.
The maintenance of 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 unforeseen 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 the ongoing COVID-19 pandemic.
The outbreak of the Novel Coronavirus
2019 (COVID-19), which has been declared
by the World Health Organization to be a
“public health emergency of international
concern”, has spread across most of the
world. Countries around the world have
adopted extraordinary measures to contain
the spread of COVID-19, including
imposing travel restrictions and bans, closing
borders, establishing restrictions on public
gatherings, instructing residents to practice
social distancing, requiring closures of
non-essential businesses, issuing stay-at-
home advisories and orders, implementing
quarantines and similar actions. The impact
to date of the COVID-19 pandemic on
global economic conditions has significantly
increased economic uncertainty and is likely
to cause a global recession. We cannot
predict how long the COVID-19 pandemic
will continue or how long current or future
governments’ restrictions will remain in
place. Furthermore, even if the initial
outbreaks of COVID-19 subside, we cannot
predict whether subsequent outbreaks
will reoccur, or whether governments will
implement longer-term measures that
continue to affect industries.
Given uncertainties regarding the impact
of the COVID-19 pandemic, we cannot
predict accurately the extent to which
the COVID-19 outbreak could affect
our business and results of operations.
COVID-19 poses the risk that we or our
employees, contractors, suppliers and
other partners may be limited or 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 our operations have not been
materially disrupted to date, the COVID-19
pandemic and government measures taken to
contain the spread of the virus could disrupt
our supply chain and the manufacture or
shipment of our products, and adversely
impact our business or results of operations.
Additionally, the COVID-19 pandemic
and government measures have disrupted
certain of our sales channels, in particular as
a result of the temporary mandatory closing
of restaurants and bars and prohibition on
social gathering events, which adversely
affects our sales volumes to these channels.
We cannot predict how much of an impact
the COVID-19 pandemic and government
measures will ultimately have on these sales
channels, including whether many channels
will be able to resume their operations
after the virus is contained. Nor can we
predict how much or for how long consumer
spending patterns may change as a result of
these developments.
The COVID-19 pandemic and government
measures could in the future adversely
affect our business and results of operations,
potentially materially. In addition, an
outbreak of other epidemics in the future,
such as the bird flu, influenza, SARS, the
Ebola virus and the Zika virus, could also
result in a similar 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
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 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.
Our business is subject to extensive
regulation, which is complex and
subject to change.
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
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 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, different bills
seeking to restrict the generation of single-use
plastic products and regulates plastics in Chile
were consolidated in one bill and introduced
for consideration by the Chilean Congress.
The bill would consider specific regulations
for single-use plastic bottles and refillables.
During 2020, the bill was approved by the
Senate, and currently is under discussion at
the House of Representatives. However, we
cannot predict whether this law will pass. If
enacted, this bill 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. 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. For companies such
as Andina, the latest Reform introduced in
Chile (by Law 21.210 of February 2020)
maintains corporate tax and withholding tax
rates on dividends.
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%. For fiscal year 2021, tax
rate is set at 25%, but a bill has already been
sent to the Senate to suspend this reduction
for 2021. 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 and continues suspended for
2021. Municipal rates in 2019 and so far
as of the date of this annual report, remain
unchanged, with few insignificant exceptions.
Andina Argentina enjoys the benefit of a
zero-tax rate on gross income in the province
of Córdoba until 2030 under a new industrial
promotion granted on August 31, 2020. 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$ 2,471 billion (equivalent
to approximately US$475.49 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 Produtos 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 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 inability to materialize the
amendment of the beer distribution
agreement due to the lack of the
necessary authorizations by Brazil's
antitrust authority could adversely affect
our profitability.
In July 2017 HEINEKEN Brazil notified
us of the termination of the agreement
under which Rio de Janeiro Refrescos Ltda.
distributed Heineken and Amstel brand
beers, among others, in their franchise
territories. During 2020, the Coca-Cola
system in Brazil and HEINEKEN reached
an agreement (the "Agreement") to redesign
their distribution alliance in Brazil.
Under the Agreement, which is expected
to take effect in mid-2021, the Coca-Cola
system in Brazil will continue to offer Kaiser,
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Bavaria and Sol, and will complement this
portfolio with the Eisenbahn brand and other
brands. In addition, as part of the redesign of
the distribution alliance, the Agreement allows
Coca-Cola bottlers in Brazil to distribute and
produce other local and international brands, in
a certain percentage, under certain conditions.
We initially estimate that the brands we will
distribute under the new agreement will
account for 26% of distributed volume under
the previous agreement.
Our business and the results of operations
may be adversely affected if we are unable to
obtain the necessary authorizations by the
Brazilian antitrust authorities to materialize
such agreement.
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 other 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 2019 and
2020, 35% and 34% of the Company’s net
sales were generated in Brazil, 22% and 19%
in Argentina, and 9% and 9% in Paraguay,
while 34% and 33% of Adjusted EBITDA
was generated in Brazil, 16% and 14% in
Argentina, and 12% and 14% 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.
Risks Relating to Chile
Our growth and profitability depend
significantly on Chile's economic
conditions.
Our operations in Chile represented 37.7%
and 47.8% of our assets as of December 31,
2019 and December 31, 2020, respectively,
and 34.2% and 38.0% of our net sales for
2019 and 2020, 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 1.3% in 2016, 1.5% in 2017, 4.0% in 2018
and 1.1% in 2019, while in 2020 it dropped
by 5.8% 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;
• Chilean constitutional process, and the
impact of a new Chilean Constitution, if
approved;
• restrictions due the COVID-19 pandemic
and authorities’ capacity to keep the
pandemic under control;
• 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, the approval
by the general public to draft a new
Constitution and the health conditions
resulting from COVID-19 have
had and could have in the future a
significant adverse effect on the general
economic conditions in Chile and our
business, results of operations and
financial condition.
1
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Beginning in October 2019, widespread
protests have taken place in Chile. This
began with the government's announcement
of an increase in subway fares in Santiago
and quickly grew into broader unrest
over economic inequality in the country.
Demonstrations spread across the country
and resulted in violent and, sometimes,
fatal acts, as well as significant damage to
public and private property. The Congress of
Chile, as a measure to address the protests,
agreed to submit to the general public
the approval of a potential reform to the
Constitution. In October 2020, Chile held
a referendum whereby nearly 80% of voters
opted to replace the Constitution and to
have a new constitution drafted by a special
constitutional convention comprised of 155
citizens to be elected in April 2021 solely for
that task. Upon its drafting and approval by
two-thirds of the constitutional convention’s
members, the final draft of the new
constitution will be submitted to a further
public referendum expected to be held during
2022 for its approval or rejection by absolute
majority vote.
During 2020 the country was affected by the
COVID-19 pandemic, resulting in countless
fatalities and an economic crisis caused, in
part, by government restrictions aimed at
containing the spread of the virus. Significant
measures have been taken to support
households and businesses, [both tax and
private social assistance contributions were
made],[2] and a 10% two-time withdrawal of
pension plan savings was approved. However,
developments in the economy during the
last quarter of 2020 were less favorable than
projected due to new health restrictions and
a slow recovery in the sectors most affected,
which has negatively impacted the dynamism
of the economic recovery and is expected to
have a significant effect on consumption and
trade-related activities in 2021. At the same
time, government fiscal stimulus is expected
to continue, in line with the approved budget,
and Chile's economy is expected to receive a
significant external boost, with copper price
averaging increasing significantly.
We cannot predict the extent to which Chile's
economy will be affected by civil unrest, the
uncertainty of a new Constitution, or the effects
of the pandemic and government restrictions
to contain the spread of the virus, nor can we
predict whether government policies enacted in
response to these situations will have a negative
impact on Chilean economy. Despite looting
at our distribution center in Puente Alto,
our operations have not been affected by the
protests and vandalism in any material respect
to date. Additionally, despite the imposition
of the changes and the efforts implemented by
our operations to mitigate the potential spread
of the virus, and changes in consumption
patterns, our business has not been impacted
in any material respect to date. We cannot
assure these, or similar future developments
will not affect our production and logistics
infrastructure in the future.
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 The Chilean peso appreciated by 6%
and 8% during 2016 and 2017, respectively,
depreciated by 13% and 8% during 2018 and
2019 and appreciated by 5% in 2020, compared
to the previous year's closing exchange rate of
the US 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.
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.
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.
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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
2016, 2017, 2018, 2019 and 2020 were 2.7%,
2.3%, 2.6%, 3.0% and 3.0% respectively,
as measured by changes in the consumer
price index and as reported by the Chilean
National Institute of Statistics, 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-
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 Risks Relating to Brazil
Our business operations in Brazil
are dependent on economic
conditions in Brazil.
Our operations in Brazil represented 40.1%
and 32.4% of our assets as of December 31,
2019 and December 31, 2020, respectively,
and 34.8% and 34.2% of our net sales for
2019 and 2020, 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 contracted
by 3.3% in 2016, grew by 1.3%, 1.8% and
1.4% in 2017, 2018 and 2019, respectively,
according to the Brazilian Institute of
Geography and Statistics (Instituto Brasileiro
de Geografia e Estatistica). GDP in Brazil
contracted by 4.1% in 2020. 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;
• investment levels;
• liquidity of domestic capital and credit
markets;
• employment levels and labor and social
security regulations;
• energy or water shortages or
rationalization;
• changes in environmental regulation;
• restrictions due to the COVID-19
pandemic and the capacity of authorities to
keep the pandemic under control;
• 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 6.3% in
2016, 3.0% in 2017, 3.8% in 2018, 4.3% in
2019, and 4.5% in 2020.
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. The Brazilian
real appreciated 17% during 2016 and
depreciated 2%, 17%, 4%, and 29% during
2017, 2018, 2019 and 2020, respectively,
compared to the closing exchange rate as of
the end of the prior period for the U.S. dollar
in nominal terms.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 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
alterations have been implemented gradually,
as follows:
(1) 20% IPI rate until August 2018;
(2) 4% IPI rate from September to December
2018;
(3) 12% IPI rate in the first half of 2019;
(4) 8% IPI rate from July to September 2019;
(5) 10% IPI rate from October to December
2019;
(6) 4% IPI rate from January to May 2020;
(7) 8% IPI rate from June to November 2020;
(8) 4% IPI rate from December 2020 to
January 2021;
(9) 8% IPI rate from February 2021 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 expired
in October 2020 and were not renewed,
generating a negative impact of BRL 41.9
million. 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
10.1% and 8.8% of our assets as of
December 31, 2019 and December 31,
2020, respectively, and 22.2% and 18.8%
of our net sales for 2019 and 2020,
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 2.1% in 2016, grew by 2.8%
in 2017 and contracted by 2.6% and 2.1% in
2018 and 2019, respectively. For its part in
2020, Argentine GDP decreased by 9.9%.
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;
• restrictions due to the COVID-19
pandemic and the capacity of authorities to
keep the pandemic under control;
• 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
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 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 coalition, 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.
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 fiscal
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%. In 2020,
the INDEC registered an increase in CPI of
42.0%, while the WPI increased 35.4%.
During 2018, 2019 and 2020, 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.
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.
In 2016, 2017, 2018, 2019 and 2020, the
Argentine peso depreciated 22%, 17%, 102%,
59% and 41%, respectively, compared to the
closing exchange rate as of the end of the
prior period 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.
The depreciation of the Argentine peso
may have a negative impact on the ability
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 of certain Argentine businesses to service
their foreign currency denominated debt,
significantly reduce real wages and jeopardize
the stability of businesses which success
depends on domestic market demand. It
may 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
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.
The Argentine government could maintain
or impose new exchange control regulations,
restrictions and adopt other responsive
measures to prevent capital flight or
significant depreciation of the peso, which
could limit access to international capital
markets, adversely affecting 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.
Between December 2019 and September
2020, the Argentine government agreed
restrictions to its sovereign debt with
international and local bondholders. In
August and September 2020, the Argentine
government restructured its sovereign bonds
debt under foreign law in the amount of
US$67 billion and under local law in the
amount of US$45 billion, in both cases
with an acceptance level of over 99%.
The Ministry of Economy is currently
renegotiating the agreement with the
International Monetary Fund after extending
part of a US$57 billion bailout program
agreed with the previous Administration.
As a result, Fitch rating agency changed its
rating to Argentina from "restricted default"
to "substantial credit risk" and Standard
& Poor's changed its rating from "selective
default" to "substantial risk".
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 2016, 2017,
2018, 2019 and 2020 the increase in the
federally-mandated minimum wage was
35%, 17%, 28% , 48% and 22%, respectively,
and for these same years the market average
salary increase for workers was 33%, 26%,
32%, 48% and 38%, 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
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 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.
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.
Price control policies in Argentina
may be accentuated, which may have
a material and adverse effect on the
results of our Argentine operations.
The Argentine government has from time to
time established price controls on consumer
products. To the extent that the price of
our products in Argentina are restricted by
government imposed price controls the results
of our Argentine operations may be materially
affected. As of 2020, with the change of
administration, the Argentine government
restablished its Precios Cuidados price-watch
program with new products including 93 new
items from different categories of the mass
consumption basket with price revisions on a
quarterly basis or every four months.
In April 2020, with the implementation of
the COVID-19 pandemic health measures,
through a presidential decree and in parallel
to the current Precios Cuidados price-watch
program, the Maximum Reference Prices
program was created, freezing prices of 2,300
products from 50 basic consumer categories
(in force for hypermarkets, supermarkets,
mom & pops, self-service, mini markets
and wholesale supermarkets throughout
the country). Price increases for the
products involved in the new program were
subsequently authorized in July and October.
The extension and validity of this program
will depend on the Argentine government's
politics based on developments in the health
crisis and inflation.
Towards the end of 2020, the Argentine
government began to reduce the number of
categories in the Maximum Reference Prices
program, with the commitment to expand
the offer of items in the current Precios
Cuidados price-watch program. Starting
in 2021, the Precios Cuidados price-watch
program reaches 800 referential products,
covering the main categories of mass
consumption and other relevant industries.
The participation of Coca-Cola products in
the Precios Cuidados price-watch program
as referential products involved one product
from the soft drinks’ category, which was
temporarily extended to three in sugar-free
variants until the end of 2020, where new
categories were incorporated, reaching four
products as estimated.
We cannot assure that price controls in
Argentina will not continue or be expected
to include additional consumer products.
Nor can we assure you the affect to which
government imposed price control will affect
the profitability of our Argentina operations.
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 Central Bank,
actively participates in the exchange market
in order to reduce volatility. Since a portion
of our total costs (28%) 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 appreciated by 1%
and 3% in 2016 and 2017, respectively, and
depreciated by 7% , 8% and 7% in 2018, 2019
and 2020, respectively, in each case compared
to the closing exchange rate as of the end of
the prior period 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 Paraguayan guaraní could
have an effect on our business, financial
condition and results of operations.
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Risks Relating to Paraguay
Our business operations in Paraguay
are dependent on economic conditions
in Paraguay.
Our operations in Paraguay represented
12.1% and 11.1% of our assets as of
December 31, 2019 and December 31, 2020,
respectively, and 8.9% and 9.3% of our
net sales for 2019 and 2020, 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 4%, 5%, 3% and
in 2016, 2017 and 2018, respectively; did not
grow in 2019 and contracted -1% in 2020
(estimate), 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.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 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$174,570 million as of December 31, 2020
and an average monthly trading volume of
approximately US$3,307 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.
Risk Factors Relating to the
ADRs and Common Stock
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
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 SUMMARIZED FINANCIAL STATEMENTS - SUBSIDIARIES
Ended December 31, 2020 and 2019
Embotelladora Andina Chile S.A.
VJ S.A.
Balance General
BALANCE SHEET
Activos
ASSETS
Activos corrientes
Current assets
Activos no corrientes
Non-current assets
Total activos
Total assets
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
2020
2019
CLP (000's)
CLP (000's)
Balance General
BALANCE SHEET
Activos
ASSETS
00,633
09,360
Activos corrientes
Current assets
08,887,095
50,050,900
Activos no corrientes
Non-current assets
08,908,808
50,070,076
Total activos
Total assets
Pasivos
LIABILITIES
6,035,000
800,890
00,097,300
Pasivos corrientes
Current liabilities
0
Pasivos no corrientes
Non-current liabilities
38,076,978
36,039,003
Capital y reservas
Capital and reserves
3,755,906
0,037,839
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
08,908,808
50,070,076
Total pasivo y patrimonio
Total liabilities and equity
0,887,600
(80,967)
0.800.600
(0,008,708)
3,755,906
0,898,833
(096,633)
0,000,000
(360,360)
0,037,839
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
8,003,390
(3,960,370)
Flujo de operación
Operating cash flow
0
0
Flujo de Inversión
Investment cash flow
(8,005,700)
3,970,987
Flujo de financiamiento
Financing cash flow
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
0
00,008
0,900
0
0,630
00,008
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
0
0
5
2020
2019
CLP (000's)
CLP (000's)
00,075,700
08,530,070
00,306,660
05,075,979
35,080,380
30,000,050
00,800,380
00,050,695
307,006
070,583
00,507,800
00,830,080
805,053
750,690
35,080,380
30,000,050
800,803
03,500
888,380
(73,330)
805,053
0,800,000
(005,099)
(070)
65,709
0,380,985
5,803,036
0,067,095
(033,000)
933,955
(080,063)
750,690
0,606,073
(307,380)
03,067
05,886
0,083,739
0,380,985
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Vital Aguas S.A.
Envases Central S.A.
Balance General
BALANCE SHEET
Activos
ASSETS
Activos corrientes
Current assets
Activos no corrientes
Non-current assets
Total activos
Total assets
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
2020
2019
CLP (000's)
CLP (000's)
3,798,008
7,097,306
5,066,575
8,507,600
Balance General
BALANCE SHEET
Activos
ASSETS
Activos corrientes
Current assets
Activos no corrientes
Non-current assets
00,095,530
03,790,099
Total activos
Total assets
3,897,000
0,090,900
5,380,830
305,700
5,790,080
0,605,088
5,068,698
306,030
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
00,095,530
03,790,099
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
630,008
(008,009)
380,599
(56,899)
305,700
80,766
(033,309)
0,993
(00,009)
705,578
666,969
589,003
(000,576)
000,667
(008,636)
306,030
976,750
(388,805)
(790,080)
000
930,593
705,578
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
(000,730)
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
0,077,677
5,006,680
2020
2019
CLP (000's)
CLP (000's)
05,600,566
06,065,860
08,005,899
00,903,080
33,806,065
37,069,006
03,908,000
08,730,369
7,060,568
5,796,009
03,007,799
00,303,708
(070,303)
33,806,065
0,096,800
37,069,006
0,905,397
(0,303,008)
(397,800)
003,508
(070,303)
0,933,870
(080,777)
0,609,090
(350,050)
0,096,800
0,008,900
0,008,000
0
0
6
(0,000.086)
3,000,306
(800,053)
(750,783)
(50,908)
697,380
0,077,677
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Balance General
BALANCE SHEET
Activos
ASSETS
Activos corrientes
Current assets
Activos no corrientes
Non-current assets
Total activos
Total assets
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Transportes Andina Refrescos Ltda.
Servicios Multivending Ltda.
2020
2019
CLP (000's)
CLP (000's)
Balance General
BALANCE SHEET
Activos
ASSETS
9,080,605
6,300,807
Activos corrientes
Current assets
00,698,083
00,070,006
Activos no corrientes
Non-current assets
30,080,698
08,393,003
Total activos
Total assets
Pasivos
LIABILITIES
00,970,006
03,009,373
Pasivos corrientes
Current liabilities
3,808,880
00,060,505
0,009,066
3,088,080
9,060,057
3,030,300
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
2020
2019
CLP (000's)
CLP (000's)
0,603,088
000,570
0,055,760
0,507,507
500,080
0,009,987
905,307
07,803
0,038,000
70,508
930,376
59,030
900,000
007,365
30,080,698
08,393,003
Total pasivo y patrimonio
Total liabilities and equity
0,055,760
0.009,987
5,573,000
(000,098)
5,068,503
5,300,037
(375,500)
0,900,507
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
(0,339,307)
(0,893,005)
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
0,009,066
3,030,300
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
8,738,377
00,000,386
Flujo de operación
Operating cash flow
(7,005,905)
(8,350,506)
Flujo de Inversión
Investment cash flow
(0,590,708)
(0,807,096)
Flujo de financiamiento
Financing cash flow
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
0
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
007,657
55,380
0
60,903
007,657
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
0
0
7
93,608
(670)
90,977
(08,009)
70,508
008,073
5,609
053,780
(36,007)
007,365
(06,508)
(9,306,860)
0
3,650
0
097,058
076,960
(007,730)
9,079,095
0
080,555
097,058
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Andina Bottling Investments S.A.
Andina Bottling Investments Dos S.A.
Balance General
BALANCE SHEET
Activos
ASSETS
Activos corrientes
Current assets
Activos no corrientes
Non-current assets
Total activos
Total assets
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
2020
2019
CLP (000's)
CLP (000's)
Balance General
BALANCE SHEET
Activos
ASSETS
30,700
00,000,575
Activos corrientes
Current assets
700,700,037
700,560,700
Activos no corrientes
Non-current assets
700,770,979
750,785,097
Total activos
Total assets
Pasivos
LIABILITIES
085,037
00,865,896
Pasivos corrientes
Current liabilities
0
0
Pasivos no corrientes
Non-current liabilities
665,080,680
706,036,570
Capital y reservas
Capital and reserves
06,307,060
00,680,830
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
700,770,979
750,785,097
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
(000,080)
(095,790)
Resultado operacional
Operating income
09,065,030
03,078,603
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
08,600,350
00,680,830
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
(0,337,093)
0
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
06,307,060
00,680,830
Ganancia (Pérdida)
Profit (loss)
2020
2019
CLP (000's)
CLP (000's)
356,300,350
363,579,906
033,060,735
308,807,050
589,505,085
690,007,060
03,009,370
(057,090)
890,807
(379,357)
506,805,880
579,687,760
09,937,003
000,003,838
589,505,085
690,007,060
(360,705)
(008,056)
50,950,687
007,006,038
50,586,973
006,737,980
(0,609,809)
(0,530,005)
09,937,003
000,003,838
0
0
8
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
(008,059)
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
03,775
0,596
09,088,096
(03,733)
Flujo de operación
Operating cash flow
00,003,000
060,870
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
007,785
(09,039,300)
0
0
55,007
0,360
03,775
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
(5,753)
(08,607,370)
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
(700,659)
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
007,083
00,950,000
0
0
(53,000)
08,308
007,083
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Andina Inversiones Societarias S.A.
Rio de Janeiro Refrescos Ltda.
Balance General
BALANCE SHEET
Activos
ASSETS
Activos corrientes
Current assets
Activos no corrientes
Non-current assets
Total activos
Total assets
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
2020
2019
CLP (000's)
CLP (000's)
Balance General
BALANCE SHEET
Activos
ASSETS
806,809
307,305
Activos corrientes
Current assets
30,899,356
30,090,907
Activos no corrientes
Non-current assets
33,706,005
30,638,000
Total activos
Total assets
3,657
75
00,003
0
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
30,853,000
30,000,033
Capital y reservas
Capital and reserves
0,889,063
0,380,085
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
33,706,005
30,638,000
Total pasivo y patrimonio
Total liabilities and equity
6,586
0,880,000
0,890,697
(0,630)
(9,008)
0,370,009
0,360,800
00,380
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
0,889,063
0,380,085
Ganancia (Pérdida)
Profit (loss)
(03,006)
(09,080)
Flujo de operación
Operating cash flow
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
0,900
00,350
(906)
06,888
06,770
0
0
0,630
30,735
06,888
2020
2019
CLP (000's)
CLP (000's)
009,709,603
070,309,093
603,007,800
786,979,030
793,057,003
958,308,507
96,000,933
000,008,587
065,005,076
506,097,573
079,056,059
000,637,973
50,630,005
83,000,390
793,057,003
958,308,507
90,059,855
93,737,398
(08,990,896)
06,008,373
73,067,959
009,965,770
(00,536,900)
(36,800,377)
50,630,005
83,000,390
36,009,007
63,390,075
(07,075,670)
(00,303,300)
(3,003,806)
(05,650,790)
0
0
9
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
(00,550,080)
0,750,638
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
06,089,979
08,000,970
09,508,006
06,089,979
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Embotelladora del Atlántico S.A.
Andina Empaques Argentina S.A.
2020
2019
CLP (000's)
CLP (000's)
Balance General
BALANCE SHEET
Activos
ASSETS
65,077,600
73,309,860
Activos corrientes
Current assets
000,890,069
060,885,608
Activos no corrientes
Non-current assets
005,968,690
030,095,089
Total activos
Total assets
Pasivos
LIABILITIES
56,980,505
66,987,370
Pasivos corrientes
Current liabilities
00,006,000
00,730,600
Pasivos no corrientes
Non-current liabilities
005,373,807
009,903,683
Capital y reservas
Capital and reserves
03,386,097
00,530,805
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
2020
2019
CLP (000's)
CLP (000's)
6,000,706
8,007,088
0,350,070
9,033,090
00,060,000
03,783,368
0,733,090
090,360
00,067,050
0,068,507
0,000,055
608,030
8,999,058
0,950,000
005,968,690
030,095,089
Total pasivo y patrimonio
Total liabilities and equity
00,060,000
03,783,368
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
00,303,097
30,069,360
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
(6,957,000)
(6,637,506)
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
03,386,097
00,530,805
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE RESULTADOS
INCOME STATEMENT
05,000,083
30,305,809
Resultado operacional
Operating income
(0,669,086)
(076,088)
Resultado no operacional
Non-operating income
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
00,080,099
09,600,060
Flujo de operación
Operating cash flow
(05,005,050)
(03,606,000)
Flujo de Inversión
Investment cash flow
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
(5,303,505)
(067,606)
(606,075)
(067,000)
Flujo de financiamiento
Financing cash flow
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
00,633,090
6,690,037
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
03,008,330
00,633,090
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
0
5
0
0,806,000
(936,850)
0,879,566
(700,059)
0,068,507
0,000,800
(785,899)
0
(88,000)
083,606
0,530,309
0,930,300
(703,567)
0,008,703
(060,709)
0,950,000
798,600
(0,070,638)
0
560,700
98,963
083,606
Balance General
BALANCE SHEET
Activos
ASSETS
Activos corrientes
Current assets
Activos no corrientes
Non-current assets
Total activos
Total assets
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Abisa Corp S.A.
Transportes Polar S.A.
Balance General
BALANCE SHEET
Activos
ASSETS
Activos corrientes
Current assets
Activos no corrientes
Non-current assets
Total activos
Total assets
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
2020
2019
CLP (000's)
CLP (000's)
Balance General
BALANCE SHEET
Activos
ASSETS
309,060,009
308,039,500
Activos corrientes
Current assets
0
0
Activos no corrientes
Non-current assets
309,060,009
308,039,500
Total activos
Total assets
Pasivos
LIABILITIES
089,658
088,330
Pasivos corrientes
Current liabilities
0
0
Pasivos no corrientes
Non-current liabilities
308,050,053
307,050,687
Capital y reservas
Capital and reserves
0,000,098
999,095
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
309,060,009
308,039,500
Total pasivo y patrimonio
Total liabilities and equity
000,080
0,000,908
0,000,098
0
0
999,095
999,095
0
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
0,000,098
999,095
Ganancia (Pérdida)
Profit (loss)
(0,800)
0,055
(0,090)
(77)
0,006
0,606
(960)
0
0
95
0,070
0,006
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
2020
2019
CLP (000's)
CLP (000's)
0,605,659
7,388,970
9,030,609
0,000,700
0,765,670
0,070,000
975,835
9,030,609
0,500,900
(088,600)
0,330,300
(356,087)
975,835
0,535,978
(307,700)
0,003,507
0
36,073
0,093
808,307
7,070,398
7,880,705
3,000,075
0,098,050
0,365,509
0,005,050
7,880,705
0,508,307
(300)
0,507,993
(000,903)
0,005,050
0,500,630
(080,683)
(998,503)
0
7,036
36,073
0
5
0
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Aconcagua Investing Ltda.
Paraguay Refrescos S.A.
Balance General
BALANCE SHEET
Activos
ASSETS
Activos corrientes
Current assets
Activos no corrientes
Non-current assets
Total activos
Total assets
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
2020
2019
CLP (000's)
CLP (000's)
Balance General
BALANCE SHEET
Activos
ASSETS
0
0
Activos corrientes
Current assets
00,809,950
00,856,507
Activos no corrientes
Non-current assets
00,809,950
00,856,507
Total activos
Total assets
0,309
0
8,906
0
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
00,807,600
00,807,600
Capital y reservas
Capital and reserves
0
0
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
00,809,950
00,856,507
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2020
2019
CLP (000's)
CLP (000's)
00,658,550
00,066,559
006,000,050
008,309,050
070,899,700
089,576,000
00,337,005
05,990,080
00,399,590
06,060,077
095,680,509
008,709,005
36,080,570
08,675,707
070,899,700
089,576,000
39,630,980
33,393,086
090,803
(000,708)
00,005,803
33,080,059
(3,603,030)
(0,600,730)
36,080,570
08,675,707
05,805,053
06,000,803
(00,880,036)
(03,050,000)
0
5
0
(009,077)
(089,300)
(53,673)
00,000,685
03,005,000
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
(3,700,080)
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
03,005,000
00,907,058
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Red de Transportes Comerciales Ltda.
2020
2019
CLP (000's)
CLP (000's)
Balance General
BALANCE SHEET
Activos
ASSETS
Activos corrientes
Current assets
Activos no corrientes
Non-current assets
Total activos
Total assets
Pasivos
LIABILITIES
Pasivos corrientes
Current liabilities
Pasivos no corrientes
Non-current liabilities
Capital y reservas
Capital and reserves
Utilidad (pérdida) del ejercicio
Profit (loss) for the fiscal year
Total pasivo y patrimonio
Total liabilities and equity
ESTADOS DE RESULTADOS
INCOME STATEMENT
Resultado operacional
Operating income
Resultado no operacional
Non-operating income
Ganancia (Pérdida) antes de Impuesto
Income (loss) before taxes
Gasto (Ingreso) por Impuesto a las Ganancias
Income tax expense
Ganancia (Pérdida)
Profit (loss)
ESTADOS DE FLUJOS DE EFECTIVO
CASH FLOW STATEMENT
Flujo de operación
Operating cash flow
Flujo de Inversión
Investment cash flow
Flujo de financiamiento
Financing cash flow
3,008,307
506,563
3,900,900
0,650,030
00,597
0,308,750
930,309
3,900,900
0,000,850
(09,563)
0,003,088
(068,959)
930,309
(000,905)
(05,080)
(36,660)
Efectos de la variación en la tasa de cambio sobre el efectivo y equivalentes al efectivo
Effects of exchange rate variation on cash and cash equivalents
0
Efectivo y equivalentes al efectivo al principio del periodo
Cash and cash equivalents at the beginning of the period
Saldo Efectivo y equivalentes al efectivo
Balance Cash and cash equivalents
530,070
307,008
0,950,060
087,976
0,038,037
858,590
30,090
0,309,590
009,060
0,038,037
033,000
(000,038)
008,980
000,078
009,060
80,769
09,703
(30,008)
0
050,007
530,070
0
5
3
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 1 of 87 UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUERPURSUANT TO RULE 13a-16 OR 15b-16 OFTHE SECURITIES EXCHANGE ACT OF 1934 December 2020Date 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 9153RencaSantiago, 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 ☒ Form 40-F ☐ 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 ☐ No ☒ 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 ☐ No ☒ Indicate by check mark whether the registrant by furnishing the information contained in this Form 6-K is also thereby furnishing the information to theCommission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934Yes ☐ No ☒ Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 2 of 87 Consolidated Financial StatementsEMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Santiago, ChileAs of Decemeber 31, 2020 and 2019 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 4 of 87 Independent Auditor’s Report(Translation of the report originally issued in Spanish) To Shareholders and DirectorsEmbotelladora Andina S.A. We have audited the accompanying consolidated financial statements of Embotelladora Andina S.A. and subsidiaries (“the Company”), which comprise theconsolidated statement of financial position as of December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, changesin 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 FinancialReporting Standards; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation ofconsolidated 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 withauditing standards generally accepted in Chile. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether theconsolidated 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 proceduresselected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whetherdue to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of theconsolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriatenessof accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation ofthe 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 AndinaS.A. and subsidiaries as of December 31, 2020 and 2019, and the results of their operations and their cash flows for the years then ended in accordance withInternational Financial Reporting Standards. Tatiana Ramos S.EY Audit SpA Santiago February 23, 2021 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 5 of 87 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Financial Statements I.Consolidated Statements of Financial Position as of December 31, 2020 and 20191II.Consolidated Statements of Income by Function for the fiscal years ended December 31, 2020 and 20193III.Consolidated Statements of Comprehensive Income for the fiscal years ended December 31, 2020 and 20194IV.Consolidated Statements of Changes in Equity for the fiscal years ended December 31, 2020 and 20195V.Consolidated Statements of Direct Cash Flows for the fiscal years ended December 31, 2020 and 20196VI.Notes to the Consolidated Financial Statements7 1.Corporate information7 2.Basis of preparation of Consolidated Financial Statements and application of accounting criteria8 3.Financial reporting by segment30 4.Cash and cash equivalents33 5.Other financial assets, current and non-current33 6.Other non-financial assets, current and non-current34 7.Trade debtors35 8.Inventory36 9.Tax assets and liabilities36 10.Income tax and deferred taxes37 11.Property, plant and equipment40 12.Related parties43 13.Employee benefits, current and non-current45 14.Investments accounted for using the equity method46 15.Intangible assets other than goodwill48 16.Goodwill49 17.Other financial liabilities, current and non-current50 18.Trade accounts payable and other accounts payable59 19.Other provisions, current and non-current59 20.Other non-financial liabilities60 21.Equity60 22.Assets and liabilities for derivative instruments63 23.Litigations and contingencies66 24.Financial risk management70 25.Expenses by nature75 26.Other income75 27.Other expenses by function76 28.Income and financial costs76 29.Other (loss) gains76 30.Local and foreign currency77 31.Environment81 32.Subsequent events81 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 6 of 87 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Financial Positionas of December 31, 2020 and 2019 ASSETS NOTE 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Current assets: Cash and cash equivalents 4 309,530,699 157,567,986 Other financial assets 5 140,304,853 347,278 Other non-financial assets 6 13,374,381 16,188,965 Trade and other accounts receivable, net 7 194,021,253 191,077,588 Accounts receivable from related companies 12.1 11,875,408 10,835,768 Inventory 8 127,972,650 147,641,224 Current tax assets 9 218,472 9,815,294 Total Current Assets 797,297,716 533,474,103 Non-Current Assets: Other financial assets 5 162,013,278 110,784,311 Other non-financial assets 6 90,242,672 125,636,150 Trade and other receivables 7 73,862 523,769 Accounts receivable from related parties 12.1 138,346 283,118 Investments accounted for under the equity method 14 87,956,354 99,866,733 Intangible assets other than goodwill 15 604,514,165 675,075,375 Goodwill 16 98,325,593 121,221,661 Property, plant and equipment 11 605,576,545 722,718,863 Deferred tax assets 10.2 1,925,869 1,364,340 Total Non-Current Assets 1,650,766,684 1,857,474,320 Total Assets 2,448,064,400 2,390,948,423 The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements1 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 7 of 87 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Financial Positionas of December 31, 2020 and 2019 LIABILITIES AND EQUITY NOTE 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) LIABILITIES Current Liabilities Other financial liabilities 17 38,566,724 40,593,878 Trade and other accounts payable 18 230,445,809 243,700,553 Accounts payable to related parties 12.2 39,541,968 53,637,601 Other provisions 19 1,335,337 2,068,984 Tax liabilities 9 8,828,599 6,762,267 Employee benefits current provisions 13 31,071,019 38,392,854 Other non-financial liabilities 20 28,266,730 26,502,215 Total Current Liabilities 378,056,186 411,658,352 Other financial liabilities, non-current 17 989,829,569 743,327,057 Accounts payable, non-current 18 295,279 619,587 Accounts payable to related companies, non-current 12.2 10,790,089 19,777,812 Other provisions, non-current 19 48,734,936 67,038,566 Deferred tax liabilities 10.2 153,669,547 169,449,747 Employee benefits non-current provisions 13 13,635,558 10,173,354 Other non-financial liabilities, non-current 20 21,472,048 - Tax liabilities, non-current 9 20,597 - Total Non-current liabilities 1,238,447,623 1,010,386,123 EQUITY 21 Issued capital 270,737,574 270,737,574 Retained earnings 654,171,126 600,918,265 Other reserves (113,727,586) 76,993,851 Equity attributable to equity holders of the parent 811,181,114 948,649,690 Non-controlling interests 20,379,477 20,254,258 Total Equity 831,560,591 968,903,948 Total Liabilities and Equity 2,448,064,400 2,390,948,423 The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements2 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 8 of 87 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Income by FunctionFor the fiscal years ended December 31, 2020 and 2019 01.01.2020 01.01.2019 NOTE 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s)Net sales 1,698,281,237 1,779,025,115 Cost of sales 8 (1,022,498,659) (1,048,343,767)Gross Profit 675,782,578 730,681,348 Other income 26 8,356,298 40,947,158 Distribution expenses 25 (152,532,018) (166,996,289)Administrative expenses 25 (283,638,935) (325,903,809)Other expenses 27 (17,430,256) (26,182,847)Other (loss) gains 29 287 2,876 Financial income 28 14,945,879 45,155,791 Financial expenses 28 (54,772,837) (46,209,020)Share of profit (loss) of investments in associates and joint ventures accounted forusing the equity method 14.3 2,228,763 (3,415,083)Foreign exchange differences (3,088,278) (4,130,543)Income by indexation units (11,828,762) (7,536,466)Net income before income taxes 178,022,719 236,413,116 Income tax expense 10.1 (54,905,399) (61,166,891)Net income 123,117,320 175,246,225 Net income attributable to Owners of the controller 121,999,805 173,721,928 Non-controlling interests 1,117,515 1,524,297 Net income 123,117,320 175,246,225 Earnings per Share, basic and diluted CLP CLP Earnings per Series A Share 21.5 122.75 174.79 Earnings per Series B Share 21.5 135.02 192.27 The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements3 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 9 of 87 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Comprehensive IncomeFor the fiscal years ended December 31, 2020 and 2019 01.01.2020 01.01.2019 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Net income 123,117,320 175,246,225 Other Comprehensive Income: Components of other comprehensive income that will not be reclassified to net income for the period,before taxes Actuarial Gains (losses) from defined benefit plans (3,146,362) (379,007)Components of other comprehensive income that will be reclassified to net income for the period,before taxes Gain (losses) from exchange rate translation differences (264,119,093) (41,844,584)Gain (losses) from cash flow hedges (12,203,755) (1,865,233)Income tax related to components of other comprehensive income that will not be reclassified to netincome for the period Income tax benefit related to defined benefit plans 849,518 102,332 Income tax related to components of other comprehensive income that will be reclassified to net incomefor the period Income tax related to exchange rate translation differences 84,571,922 9,295,545 Income tax related to cash flow hedges 2,334,037 683,483 Other comprehensive income, total (191,713,733) (34,007,464)Total comprehensive income (68,596,413) 141,238,761 Total comprehensive income attributable to: Owners of the controller (68,721,632) 139,861,690 Non-controlling interests 125,219 1,377,071 Total comprehensive income (68,596,413) 141,238,761 The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements4 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 10 of 87 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Changes in EquityFor the periods ended December 31, 2020 and 2019 Other reserves Issued Capital Reserves for exchange rate differences Cash flow hedge reserve Actuarialgains or losses inemployee benefits Other reserves Total other reserves Retained earnings Controlling equity Non-controlling interests 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) Opening balance as of 01.01.2020 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 Changes in equity Comprehensive income Earnings - - - - - - 121,999,805 121,999,805 1,117,515 123.117.320 Other Comprehensive income - (178,420,146) (9,868,850) (2,432,441) - (190,721,437) - (190,721,437) (992,296) (191.713.733)Comprehensive income - (178,420,146) (9,868,850) (2,432,441) - (190,721,437) 121,999,805 (68,721,632) 125,219 (68.596.413)Dividends - - - - - - (103,365,468) (103,365,468) - (103,365,468)Increase (decrease) from Otherchanges - - - - - - 34,618,524 34,618,524 - 34,618,524 Total de Changes in equity - (178,420,146) (9,868,850) (2,432,441) - (190,721,437) 53,252,861 (137,468,576) 125,219 (137,343,357)Ending balance as of 12.31.2020 270,737,574 (517,496,486) (24,719,533) (4,663,193) 433,151,626 (113,727,586) 654,171,126 811,181,114 20,379,477 831,560,591 Other reserves Issued Capital Reserves for exchange rate differences Cash flow hedge reserve Actuarialgains or losses inemployee benefits Other reserves Total other reserves Retained earnings Controlling equity Non-controlling interests 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) 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 Changes in equity Comprehensive income Earnings - - - - - 173,721,928 173,721,928 1,524,297 175.246.225 Other Comprehensive income - (32,401,812) (1,181,751) (276,675) - (33,860,238) - (33,860,238) (147,226) (34.007.464)Comprehensive income - (32,401,812) (1,181,751) (276,675) - (33,860,238) 173,721,928 139,861,690 1,377,071 141.238.761 Dividends - - - - - - (86,568,579) (86,568,579) (1,024,430) (87,593,009)Increase (decrease) from Otherchanges - - - - - - 51,543,453 51,543,453 - 51,543,453 Total de Changes in equity - (32,401,812) (1,181,751) (276,675) - (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 The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements5 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 11 of 87 EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES Consolidated Statements of Direct Cash FlowsFor the periods ended December 31, 2020 and 2019 01.01.2020 01.01.2019 Cash flows provided by (used in) Operating Activities NOTE 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Cash flows provided by Operating Activities Receipts from the sale of goods and the rendering of services (including taxes) 2,321,999,131 2,626,374,510 Payments for Operating Activities Payments to suppliers for goods and services (including taxes) (1,517,256,079) (1,802,751,639)Payments to and on behalf of employees (189,758,823) (203,681,853)Other payments for operating activities (value-added taxes on purchases, sales andothers) (266,228,165) (292,958,045)Dividends received 1,176,079 411,041 Interest payments (44,299,001) (36,141,477)Interest received 7,538,364 1,539,120 Income tax payments (29,474,900) (34,198,767)Other cash movements (tax on bank debits Argentina and others) (4,927,608) (3,444,416)Cash flows provided by (used in) Operating Activities 278,768,998 255,148,474 Cash flows provided by (used in) Investing Activities Proceeds from sale of Property, plant and equipment 3,570 18,904 Purchase of Property, plant and equipment (85,874,958) (110,683,258)Purchase of intangible assets (207,889) (448,307)Proceeds from other long term assets (withdrawal of time-deposits at 90 days orlonger term) - - Payments on forward, term, option and financial exchange agreements (472,551) (70,373)Collection on forward, term, option and financial exchange agreements 2,122,954 1,135,034 Other payments on the purchase of financial instruments (139,449,884) - Net cash flows used in Investing Activities (223,878,758) (110,048,000) Cash Flows generated from (used in) Financing Activities Proceeds from short term loans 27,633,156 50,297,337 Payments of loans (25,197,737) (74,332,889)Lease liability payments (3,974,086) (2,989,457)Dividend payments by the reporting entity (99,985,500) (86,265,896)Other inflows (outflows) of cash (Placement and payment of public obligations) 214,565,128 (13,821,732)Net cash flows (used in) generated by Financing Activities 113,040,961 (127,112,637)Net increase in cash and cash equivalents before exchange differences 167,931,201 17,987,837 Effects of exchange differences on cash and cash equivalents (13,574,854) 4,048,168 Effects of inflation in cash and cash equivalents in Argentina (2,393,634) (2,006,632)Net increase (decrease) in cash and cash equivalents 151,962,713 20,029,373 Cash and cash equivalents – beginning of period 4 157,567,986 137,538,613 Cash and cash equivalents - end of period 4 309,530,699 157,567,986 The accompanying notes 1 to 32 form an integral part of these Consolidated Financial Statements6 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 12 of 87 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 openstock corporation, whose corporate address and principal offices are located at Miraflores 9153, borough of Renca, Santiago, Chile. The Company isregistered under No. 00124 of the Securities Registry and is regulated by Chile’s Financial Market Commission (hereinafter “CMF”) and pursuant to Chile’sLaw 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 itsstock is traded on the New York Stock Exchange since 1994. The principal activity of Embotelladora Andina S.A. is to produce, bottle, commercialize and distribute the products under registered trademarks of TheCoca-Cola Company (TCCC). The Company maintains operations and is licensed to produce, commercialize and distribute such products in certainterritories in Chile, Brazil, Argentina and Paraguay. In Chile, the territories in which it has such a license are the Metropolitan Region; the province of San Antonio, the V Region; the province of Cachapoalincluding the commune of San Vicente de Tagua-Tagua, the VI Region; the II Region of Antofagasta; the III Region of Atacama, the IV Region of CoquimboXI Region de Aysén del General Carlos Ibáñez del Campo; XII Region of Magallanes and Chilean Antarctic. In Brazil, the aforementioned license coversmuch of the state of Rio de Janeiro, the entire state of Espirito Santo, and part of the states of Sao Paulo and Minas Gerais. In Argentina it includes theprovinces 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, Antarctica and South Atlantic Islands. Finally, in Paraguay the territory comprises the whole country. Thebottling agreement for the territories in Chile expires in October 2023; in Argentina it expires in 2022; in Brazil it expires in 2022, and in Paraguay it expiresin 2021. Said agreements 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 55.38% of the outstandingshares with voting rights, corresponding to the Series A shares. The Controlling Group is composed of the Chadwick Claro, Garcés Silva, Said Handal andSaid 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 approvedby the Board of Directors on February 23, 2021.7 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 13 of 87 2 - BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND APPLICATION OF ACCOUNTING CRITERIA 2.1Accounting principles and basis of preparation The Company’s Consolidated Financial Statements for the fiscal years ended December 31, 2020 and December 31, 2019, have been prepared in accordancewith International Accounting Standard N° 34 (IAS 34) incorporated in the International Financial Reporting Standards (hereinafter “IFRS”) issued by theInternational Accounting Standards Board (hereinafter “IASB”). These Consolidated Financial Statements have been prepared following the going concern principle by applying the historical cost method, with theexception, 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, 2020 andDecember 31, 2019 and the results of operations for the periods between January 1 and December 31, 2020 and 2019, together with the statements ofchanges in equity and cash flows for the periods between January 1 and December 31, 2020 and 2019. These Consolidated Financial Statements have been prepared based on the accounting records maintained by the Parent Company and by the other entitiesthat are part of the Company and are presented in thousands of Chilean pesos (unless expressly stated) as this is the functional and presentation currency ofthe Company. Foreign operations are included in accordance with the accounting policies established in Notes 2.5. 2.2Subsidiaries and consolidation Subsidiary entities are those companies directly or indirectly controlled by Embotelladora Andina. Control is obtained when the Company has power overthe 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 toinfluence the amount of investor returns. They include assets and liabilities, results of operations, and cash flows for the periods reported. Income or lossesfrom subsidiaries acquired or sold are included in the Consolidated Financial Statements from the effective date of acquisition through the effective date ofdisposal, 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 fairvalue of assets transferred, equity securities issued, liabilities incurred or assumed on the date that control is obtained. Identifiable assets acquired, andidentifiable liabilities and contingencies assumed in a business combination are accounted for initially at their fair values at the acquisition date. Goodwill isinitially measured as the excess of the aggregate of the consideration transferred and the fair value of non-controlling interest over the net identifiable assetsacquired and liabilities assumed. If the consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognizeddirectly in the income statement. Intercompany transactions, balances and unrealized gains on transactions between Group entities are eliminated. Unrealized losses are also eliminated. Whennecessary, 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 byfunction under “Non-Controlling Interest” and “Earnings attributable to non-controlling interests”, respectively.8 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 14 of 87 The consolidated financial statements include all assets, liabilities, income, expenses, and cash flows of the Company and its subsidiaries after eliminatingbalances and transaction among the Group’s entities, the subsidiary companies included in the consolidation are the following: Ownership interest 12.31.2020 12.31.2019 Taxpayer ID Company Name Direct Indirect Total Direct Indirect Total 59.144.140-K Abisa Corp S.A. - 99.99 99.99 - 99.99 99.99 Foreign Aconcagua Investing Ltda. 0.70 99.28 99.98 0.70 99.28 99.98 96.842.970-1 Andina Bottling Investments S.A. 99.9 0.09 99.99 99.9 0.09 99.99 96.972.760-9 Andina Bottling Investments Dos S.A. 99.9 0.09 99.99 99.9 0.09 99.99 Foreign Andina Empaques Argentina S.A. - 99.98 99.98 - 99.98 99.98 96.836.750-1 Andina Inversiones Societarias S.A. 99.98 0.01 99.99 99.98 0.01 99.99 76.070.406-7 Embotelladora Andina Chile S.A. 99.99 - 99.99 99.99 - 99.99 Foreign Embotelladora del Atlántico S.A. 0.92 99.07 99.99 0.92 99.07 99.99 96.705.990-0 Envases Central S.A. 59.27 - 59.27 59.27 - 59.27 Foreign Paraguay Refrescos S.A. 0.08 97.75 97.83 0.08 97.75 97.83 76.276.604-3 Red de Transportes Comerciales Ltda. 99.9 0.09 99.99 99.9 0.09 99.99 Foreign Rio de Janeiro Refrescos Ltda. - 99.99 99.99 - 99.99 99.99 78.536.950-5 Servicios Multivending Ltda. 99.9 0.09 99.99 99.9 0.09 99.99 78.861.790-9 Transportes Andina Refrescos Ltda. 99.9 0.09 99.99 99.9 0.09 99.99 96.928.520-7 Transportes Polar S.A. 99.99 - 99.99 99.99 - 99.99 76.389.720-6 Vital Aguas S.A. 66.50 - 66.50 66.50 - 66.50 93.899.000-k Vital Jugos S.A. 15.00 50.00 65.00 15.00 50.00 65.00 2.3Investments 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, theinvestment 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 isrecorded by the proportion of its total assets, which represents the Group’s participation in its capital, once adjusted, where appropriate, the effect of thetransactions 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 theGroup according to its ownership, are recorded under the item “Participation in profit (loss) of associates accounted for by the equity method.”9 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 15 of 87 2.3.1Investments 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 inthe financial and operating policy decisions of the associate, without having control or joint control over it. The results of these associates are accounted forusing the equity method. Accounting policies of the associates are changed, where necessary, to ensure conformity with the policies adopted by the Companyand unrealized gains are eliminated. 2.3.2Joint arrangements Joint arrangements are those entities in which the Group exercises control through an agreement with other shareholders and jointly with them, that is, whendecisions 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 theconsolidated 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 relatedto 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 theagreement, 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. 2.4Financial reporting by operating segment “IFRS 8 Operating Segments” requires that entities disclose information on the results of operating segments. In general, this is information thatManagement and the Board of Directors use internally to assess performance of segments and allocate resources to them. Therefore, the following operatingsegments have been determined based on geographic location: •Operation in Chile•Operation in Brazil•Operation in Argentina•Operation in Paraguay10 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 16 of 87 2.5Functional currency and presentation currency 2.5.1Functional 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 inwhich the entity operates (“functional currency”). The functional currency of each of the Operations is the following: Company Functional currencyEmbotelladora del Atlántico Argentine Peso (ARS)Embotelladora Andina Chilean Peso (CLP)Paraguay Refrescos Paraguayan Guaraní (PYG)Rio de Janeiro Refrescos 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 itemsdesignated as part of the hedging of the Group’s net investment in a business abroad. These differences are recorded under other comprehensive income untilthe disposal of the net investment, at which point they are reclassified to the income statement. Tax adjustments attributable to exchange differences in thesemonetary items are also recognized under other comprehensive income. 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 isdetermined. Losses or gains arising from the conversion of non-monetary items measured at fair value are recorded in accordance with the recognition oflosses 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 lossesare recognized in another overall result or in results are also recognized under comprehensive income ). Functional currency in hyperinflationary economies Beginning July 2018, Argentina’s economy is considered as hyperinflationary, according to the criteria established in the International Accounting StandardNo. 29 “Financial information in hyperinflationary economies” (IAS 29). This determination was carried out based on a series of qualitative and quantitativecriteria, including an accumulated inflation rate of more than 100% for three years. In accordance with IAS 29, the financial statements of companies inwhich Embotelladora Andina S.A. participates in Argentina have been retrospectively restated by applying a general price index to the historical cost, inorder 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 inArgentina. In this context, it should be mentioned that the Group made its transition to IFRS on January 1, 2004, applying the attributed cost exemption forProperty, plant and equipment.11 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 17 of 87 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 Argentinesubsidiaries were converted to the closing exchange rate (ARS/CLP) as December 31, 2020, in accordance with IAS 21 “Effects of foreign currencyexchange rate variations”, when dealing with a hyperinflationary economy. The comparative amounts in the consolidated financial statements are those that were presented as current year amounts in the relevant financial statementsof the previous year (i.e., not adjusted for subsequent changes in price level or exchange rates). This results in differences between the closing net equity ofthe previous year and the opening net equity of the current year and, as an accounting policy option, these changes are presented as follows: (a) the re-measurement of initial balances under IAS 29 as an adjustment to equity and (b) subsequent effects, including re-expression under IAS 21 , as “Exchangerate differences in the conversion of foreign operations” under other comprehensive income. Inflation for the periods from January to December 20202 and 2019 amounted to 36.01% and 54.85%, respectively. 2.5.2Presentation currency The presentation currency is the Chilean peso, which is the functional currency of the parent company, for such purposes, the financial statements ofsubsidiaries 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: •The statement of financial position is translated to the closing exchange rate at the financial statement date and the income statement istranslated at the average monthly exchange rates, the differences that result are recognized in equity under other comprehensive income.•Cash flow income statement are also translated at average exchange rates for each transaction.•In the case of the disposal of an investment abroad, the component of other comprehensive income (OCI) relating to that investment isreclassified 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 inHyperinflationary Economies, and subsequently converted to Chilean pesos as follows: •The statement of financial position sheet is translated at the closing exchange rate at the financial statements date.•The income statement is translated at the closing exchange rate at the financial statements date•The statement of cash flows is converted to the closing exchange rate at the date of the financial statements.•For the disposal of an investment abroad, the component of other comprehensive income (OCI) relating to that investment is reclassified tothe income statement.12 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 18 of 87 2.5.3Exchange rates Exchange rates regarding the Chilean peso in effect at the end of each period are as follows: Date USD BRL ARS PGY12.31.2020 710.95 136.80 8.44 0.10312.31.2019 748.74 185.76 12.50 0.116 2.6Property, plant, and equipment The elements of Property, plant and equipment, are valued for their acquisition cost, net of their corresponding accumulated depreciation, and of theimpairment 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 theconstruction period that are directly attributable to the acquisition, construction or production of qualified assets, which are those that require a substantialperiod of time before being ready for use, such as production facilities. The Group defines a substantial period as one that exceeds twelve months. Theinterest rate used is that corresponding to specific financing or, if it does not exist, the weighted average financing rate of the Company making theinvestment; 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 depreciationbegins. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset only when it is probable that future economic benefitsassociated 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 amountof 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 orrevalued amounts to their residual values over their estimated useful lives. The estimated useful lives by asset category are: Assets Range in yearsBuildings 15-80Plant and equipment 5-20Warehouse installations and accessories 10-50Furniture and supplies 4-5Motor vehicles 4-10Other Property, plant and equipment 3-10Bottles and containers 2-5 The residual value and useful lives of Property, plant and equipment are reviewed and adjusted at the end of each fiscal year, if appropriate.13 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 19 of 87 The Company assesses on each reporting date if there is evidence that an asset may be impaired. The Group estimates the recoverable amount of the asset, ifthere is evidence, or when an annual impairment test is required for an asset. Gains and losses on disposals of property, plant, and equipment are calculated by comparing the proceeds to the carrying amount and are charged to otherexpenses by function or other gains, as appropriate in the statement of comprehensive income. 2.7Intangible assets and Goodwill 2.7.1Goodwill Goodwill represents the excess of the consideration transferred over the Company’s interest in the net fair value of the net identifiable assets of thesubsidiary and the fair value of the non-controlling interest in the subsidiary on the acquisition date. Since goodwill is an intangible asset with indefiniteuseful 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 arisingfrom the business combination. Such CGUs or groups of CGUs represent the lowest level in the organization at which goodwill is monitored for internalmanagement purposes. 2.7.2Distribution 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 theassets and liabilities of companies acquired in business combinations. Distribution rights have an indefinite useful life and are not amortized, (as they arepermanently renewed by The Coca-Cola Company) and therefore are subject to impairment tests on an annual basis. 2.7.3Software Carrying amounts correspond to internal and external software development costs, which are capitalized once the recognition criteria in IAS 38, IntangibleAssets, have been met. Their accounting recognition is initially realized for their acquisition or production cost and, subsequently, they are valued at their netcost of their corresponding accumulated amortization and of the impairment losses that, if applicable, they have experienced. The aforementioned softwareis amortized within four years. 2.8Impairment 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 forimpairment or more frequently if events or changes in circumstances indicate a potential impairment. Assets that are subject to amortization are tested forimpairment whenever there is an event or change in circumstances indicating that the carrying amount may not be recoverable. An impairment loss isrecognized 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 fairvalue less costs to sell or its value in use.14 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 20 of 87 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 anindefinite useful life, the analysis of their recoverability is carried out systematically at the end of each fiscal year. These indications may include new legalprovisions, change in the economic environment that affects business performance indicators, competition movements, or the disposal of an important part ofa CGU. Management reviews business performance based on geographic segments. Goodwill is monitored at the operating segment level that includes the differentcash generating units in operations in Chile, Brazil, Argentina and Paraguay. The impairment of distribution rights is monitored geographically in the CGUor group of cash generating units, which correspond to specific territories for which Coca-Cola distribution rights have been acquired. These cash generatingunits or groups of cash generating units are composed of the following segments: -Operation in Chile;-Operation in Argentina;-Operation in Brazil (State of Rio de Janeiro and Espirito Santo, Ipiranga territories, investment in the Sorocaba associate and investment in the LeãoAlimentos 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, andrecognizes 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 2020 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 in localcurrency before tax is used according to the following table: Discount rates 2020 Discount rates 2019 Argentina 28.1% 35.3%Chile 7.2% 8.5%Brazil 9.9% 11.4%Paraguay 9.3% 11.5% 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 andthe respective budgets approved by the CGU. In this regard, a conservative growth rate is used, which reaches 5% for the carbonated beverage categoryand up to 7% for less developed categories such as juices and waters. Beyond the fifth year of projection, growth perpetuity rates are established peroperation ranging from 1% to 2.5% depending on the degree of maturity of the consumption of the products in each operation. In this sense, thevariables 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.15 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 21 of 87 In order to sensitize the impairment test, variations were made to the main variables used in the model. Ranges used for each of the modifiedvariables 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 presentvalue-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 100 bps of EBITDA margin of operations, which is applied per year for the projected periods, that is,for the years 2021-2025 In each sensitization scenario of the of the 3 variables mentioned above, no signs of impairment were observed for the Company’s CGUs. The Company performs the impairment analysis on an annual basis. As a result of the tests conducted as of December 31, 2020 and 2019, no evidence ofimpairment was identified in any of the CGUs listed above, assuming conservative EBITDA margin projections and in line with market history. Despite the deterioration in macroeconomic conditions experienced by the economies of the countries in which operations are carried out and as a result ofthe pandemic, the impairment test yielded recovery values higher than the book values of assets, including those for the sensitivity calculations in the stresstest conducted on the model. It should be noted that although no impairment evidence was identified for the CGUs described above, the annual review of other investments identified thatfor the AdeS brand in Chile’s operation the recoverable value would be CLP 1,451 million below the book value recorded in the financial statements, whichwere reduced from its book value as of December 2020. The main reasons are due to the lower expected flows for the seed-based non-carbonated beveragesegment for the local market. 2.9Financial 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 anotherentity. 2.9.1Financial assets Pursuant to IFRS 9 “Financial Instruments”, except for certain trade accounts receivable, the Group initially measures a financial asset at its fair value plustransaction costs, in the case of a financial asset that is not at fair value, reflecting changes in P&L. 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 “SPPIcriterion”). According to IFRS 9, financial assets are subsequently measured at (i) fair value with changes in P&L (FVPL), (ii) amortized cost or (iii) fairvalue through other comprehensive income (FVOCI). 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 thefinancial assets to collect contractual cash flows that meet the SPPI criterion. This category includes the Group’s trade and other accountsreceivable.16 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 22 of 87 -Financial assets measured at fair value with changes in other comprehensive income (FVOCI), with gains or losses recognized in P&L at the time ofliquidation. Financial assets in this category correspond to the Group’s instruments that meet the SPPI criterion and are kept within a business modelboth 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 ofliquidation. This category only includes equity instruments that the Group intends to keep in the foreseeable future and that the Group hasirrevocably 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 notirrevocably chosen to classify at FVOCI in the initial recognition or transition. This category also includes debt instruments whose cash flowcharacteristics do not comply with the SPPI criterion or are not kept within a business model whose objective is to recognize contractual cash flowsor 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 delayto a third party under a transfer agreement; and the Group (a) has substantially transferred all risks and benefits of the asset, or (b) has notsubstantially transferred or retained all risks and benefits of the asset but has transferred control of the asset. 2.9.2Financial 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 andcredits, 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 derivativefinancial 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 initialrecognition 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 statementwhen liabilities are disposed, as well as interest accrued in accordance with the effective interest rate method.17 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 23 of 87 A financial liability is disposed of when the obligation is extinguished, cancelled or expires. Where an existing financial liability is replaced by another of thesame lender under substantially different conditions, or where the conditions of an existing liability are substantially modified, such exchange ormodification 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 isrecognized in the statement of income. 2.9.3Offsetting financial instruments Financial assets and financial liabilities are offset with the corresponding net amount presenting the corresponding net amount in the statement of financialposition, 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. 2.10Derivatives 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 associatedwith raw materials, and loan obligations. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and aresubsequently re-measured at their fair value at each closing date. Derivatives are accounted as financial assets when the fair value is positive and as financialliabilities when the fair value is negative. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedginginstrument, and if so, the nature of the item being hedged. 2.10.1Derivative 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 managementobjectives and strategy for undertaking various hedging transactions. The group also documents its assessment, both at hedge inception and on an ongoingbasis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effectiveportion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gainor 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 foreigncurrency denominated financial liabilities are translated into their functional currencies). The gain or loss relating to the effective portion of cross currencyswaps 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 inequity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the consolidated income statement. 2.10.2Derivative 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 incomestatement under “Other income and losses”. The fair value of these derivatives is recorded under “other current financial assets” or “other current financialliabilities” in the statement of financial position.” The Company does not use hedge accounting for its foreign investments.18 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 24 of 87 The Company also evaluates the existence of derivatives implicitly in contracts and financial instruments as stipulated by IFRS 9 and classifies thempursuant to their contractual terms and the business model of the group. As of December 31, 2020, the Company had no implicit derivatives, 2.10.3Fair 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 ofthe 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 andOther current and non-current financial liabilities, respectively, and are accounted at fair value within the statement of financial position. The Company usesthe 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 observableLevel 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 periods usingLevel 2. 2.11Inventories 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 goodsand work in progress includes raw materials, direct labor, other direct costs and manufacturing overhead (based on operating capacity) to bring the goods tomarketable condition, but it excludes interest expense. Net realizable value is the estimated selling price in the ordinary course of business, less applicablevariable 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, 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.19 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 25 of 87 2.12Trade accounts receivable and other accounts receivable Trade accounts receivable and other accounts receivable are measured and recognized at the transaction price at the time they are generated less the provisionfor expected credit losses, pursuant to the requirements of IFRS 15, since they do not have a significant financial component, less the provision of expectedcredit losses. The provision for expected credit losses is made applying a value impairment model based on expected credit losses for the following 12months. The Group applies a simplified focus for trade receivables, thereby impairment is always recorded referring to expected losses during the whole lifeof 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 inthe consolidated income statement by function. 2.13Cash 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 investmentsand mutual funds with original short-term maturities equal to or less than three months from the date of acquisition. 2.14Other 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 thetransaction. Then, liabilities are valued by accruing interests in order to equal the current value with the future value of liabilities payable, using the effectiveinterest rate method. General and specific borrowing costs directly attributable to the acquisition, construction or production of qualified assets, considered as those that require asubstantial 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 aresubstantially ready to be used or sold. 2.15Income 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 theircarrying amounts in the Consolidated Financial Statements, using the tax rates that have been enacted or substantively enacted on the balance sheet date andare 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 temporarydifferences can be utilized. The Company does not recognize deferred income taxes for temporary differences from investments in subsidiaries in which the Company can control thetiming of the reversal of the temporary differences and it is probable that they will not be reversed in the near future. The Group offsets deferred tax assets and liabilities if and only if it has legally recognized a right to offset against the tax authority the amounts recognized inthose items; and intends to settle the resulting net debts, or to realize the assets and simultaneously settle the debts that have been offset by them.20 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 26 of 87 2.16Employee benefits The Company records a liability regarding indemnities for years of service that will be paid to employees in accordance with individual and collectiveagreements 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 rightto 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. Theseliabilities are recorded under current non-financial liabilities. 2.17Provisions Provisions for litigation and other contingencies are recognized when the Company has a present legal or constructive obligation as a result of past event, itis 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 currentmarket assessments of the time value of money and the risks specific to the obligation. 2.18Leases In accordance with IFRS 16 “Leases” Embotelladora Andina analyzes, at the beginning of the contract, the economic background of the agreement, todetermine 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 oftime 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 useof 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 dateless lease incentives received; iii) the initial direct costs incurred; and iv) the estimation of costs for dismantling or restoration. Subsequently, the right-of-useasset is measured at cost, adjusted by any new measurement of the lease liability, less accumulated depreciation and accumulated losses due to impairment ofvalue. 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 willacquire 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 theasset 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) fixedpayments, 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.21 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 27 of 87 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 theliability 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 optionto 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. 2.19Deposits 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 would be reimbursed when the customer or distributor returns the bottles and containers in good condition,together with the original invoice. This liability is presented under Other current financial liabilities since the Company does not have legal rights to defer settlement for a period in excess ofone year. However, the Company does not anticipate any material cash settlements for such amounts during the upcoming year. 2.20Revenue 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 useand obtain substantially all the benefits of the goods and services exchanged. Revenue is measured based on the consideration to which it is expected to beentitled 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 contractswith 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 tobe received to the customer. 2.21Contributions of The Coca-Cola Company The Company receives certain discretionary contributions from The Coca-Cola Company (TCCC) mainly related to the financing of advertising andpromotional programs for its products in the territories where the Company has distribution licenses. The contribution received from TCCC are recognized innet 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 themarketing expenses included in the Administration Expenses account. Given its discretionary nature, the portion of contributions received in one period doesnot imply it will be repeated in the following period.22 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 28 of 87 2.22Dividend 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 theissued 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 theCompany, while in the second case it is the responsibility of General Shareholders’ Meeting. 2.23Critical accounting estimates and judgments 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 financialstatements. 2.23.1Impairment 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. Therecoverable amounts of cash generating units are generating units are determined based on value in use calculations. The key variables used in thecalculations include sales volumes and prices, discount rates, marketing expenses and other economic factors including inflation. The estimation of thesevariables requires a use of estimates and judgments as they are subject to inherent uncertainties; however, the assumptions are consistent with the Company’sinternal planning end past results. Therefore, management evaluates, and updates estimates according to the conditions affecting the variables. If these assetsare considered to have been impaired, they will be written off at their estimated fair value or future recovery value according to the lowest discounted cashflows analysis. At December 31, 2020 discounted cash flows in the Company’s cash generating units in Chile, Brazil, Argentina and Paraguay generated ahigher value than the carrying values of the respective net assets, including goodwill of the Brazilian, Argentinian and Paraguayan subsidiaries. 2.23.2Fair 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 orpaid 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, theCompany 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 onthe “multi-period excess earning method”, which involves the estimation of future cash flows generated by the intangible assets, adjusted by cash flows thatdo not come from these, but from other assets. The Company also applies estimations over the period during which the intangible assets will generate cashflows, cash flows from other assets, and a discount rate.23 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 29 of 87 Other assets acquired, and liabilities assumed in a business combination are carried at fair value using valuation methods that are considered appropriateunder the circumstances. Assumptions include the depreciated cost of recovery and recent transaction values for comparable assets, among others. Thesevaluation techniques require certain inputs to be estimated, including the estimation of future cash flows. 2.23.3Allowances 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 customersegments that have similar loss patterns (i.e. by geography region, product type, customer type and rating, and credit letter coverage and other forms of creditinsurance). The provision matrix is initially based on the historically observed non-compliance rates for the Group. The Group will calibrate the matrix to adjust thehistorical credit loss experience with forward-looking information. For example, if expected economic conditions (i.e. gross domestic product) are expectedto deteriorate over the next year, which can lead to more non-compliances in the industry, historical default rates are adjusted. At each closing date, theobserved historical default rates are updated and changes in prospective estimates are analyzed. The assessment of the correlation between observedhistorical default rates, expected economic conditions and expected credit losses are significant estimates. 2.23.4Useful 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 incircumstances, such as technological advances, changes to the Company’s business model, or changes in its capital strategy might modify the effective usefullives as compared to our estimates. Whenever the Company determines that the useful life of Property, plant and equipment might be shortened, itdepreciates the excess between the net book value and the estimated recoverable amount according to the revised remaining useful life. Factors such aschanges in the planned usage of manufacturing equipment, dispensers, transportation equipment and computer software could make the useful lives of assetsshorter. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of any ofthose assets may not be recovered. The estimate of future cash flows is based, among other factors, on certain assumptions about the expected operatingprofits in the future. The Company’s estimation of discounted cash flows may differ from actual cash flows because of, among other reasons, technologicalchanges, economic conditions, changes in the business model, or changes in operating profit. If the sum of the projected discounted cash flows (excludinginterest) is less than the carrying amount of the asset, the asset shall be written-off to its estimated recoverable value. At the closing of December 2020, based on the best estimate according to the most recent reliable, reasonable and available information, management made achange in its useful life accounting estimates, for the Chilean Operation. Changes in estimates are mainly recorded in fixed assets related to plant and equipment, which includes the following items: Assets Previous year range New year rangeBuildings 30-50 15-80Plants and equipment 10-20 5-20Fixed installations and accessories 10-30 10-50Furniture and materials 4-5 5Vehicles 5-7 4-10Other property, plant and equipment 3-8 5-10Containers and cases 2-8 2-524 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 30 of 87 This change in estimated useful life resulted in greater depreciation for the period between January 1 to December 31, 2020 of approximately CLP 7,071,114thousand, representing approximately 6% of total consolidated depreciation. 2.24.1New Standards, Interpretations and Amendments for annual periods beginning on or after January 1, 2020. Standards and interpretations, as well as the improvements and amendments to IFRS, which have been issued, effective at the date of these financialstatements, are detailed below: Standards and Interpretations Mandatory application dateConceptual Framework Revised Conceptual Framework January 1, 2020 Revised Conceptual Framework The IASB issued a Revised Conceptual Framework in March 2018, incorporating some new concepts, providing updated definitions and recognitioncriterion for assets and liabilities and clarifying some important concepts. Changes in the Conceptual Framework may affect the application of IFRS when nostandard applies to a given transaction or event. Application of the revised Conceptual Framework did not have significant impacts on the financialstatements of the Company. Amendments to IFRS which have been issued and are in effect beginning January 1, 2020 are detailed below: Amendments Implementation dateIFRS 3 Definition of a business January 1,2020IAS 1 and IAS 8 Definition of material January 1,2020IFRS 9, IAS 39 and IFRS 7 Reference Interest Rate Reform January 1,2020IFRS 16 COVID-19-Related Rent Concessions January 1,2020 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 activitiesand assets is a business or not. The IASB clarifies the minimum requirements for defining a business, eliminates the assessment of whether marketparticipants are able to replace any missing elements, includes guidance to help entities assess whether a process acquired is substantial, reduces thedefinitions 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 beginningon 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 mustbe 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 probablynot be affected by these amendments in the transition. However, those entities that consider the acquisition of a set of activities and assets after implementingthe amendments must first update their accounting policies in a timely manner.25 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 31 of 87 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 thesale or contribution of assets between an investor and its associate or joint venture) (Amendments to IFRS 10 and IAS 28). Company management performs the impact assessment of the amendment once these types of transactions take place. 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 accountingestimates and errors, to align the definition of “material” in all standards and to clarify certain aspects of the definition. The new definition states thatinformation is material if when omitted, misstated, or reasonably hidden could be expected to influence decisions that primary users of general-purpose ofthe 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 organizedin the financial statements. Company management has assessed the amendment, which have not had any impact on these financial statements. 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 thereform of interbank offer rate (IBOR) in financial information. The amendments provide temporary exceptions that allow hedge accounting to continueduring 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 theapplication of these amendments, nor can a hedge relationship be designated using the retrospect reasoning benefit. Early application is permitted and mustbe disclosed. Company management has assessed the amendment, which have not had significant impacts on these financial statements. IFRS 16 COVID-19-Related Rent Concessions In May 2020, the IASB issued an amendment to IFRS 16 Leases to provide relief for lessees in the application of IFRS 16 guidance regarding leasemodifications due to rent concessions occurring as a direct consequence of the Covid-19 pandemic. The amendment does not affect lessors.26 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 32 of 87 As a practical solution, a lessee may choose not to assess whether the Covid-19-related rent reduction granted by a lessor is a modification of the lease. Alessee making this choice will recognize changes in lease payments from Covid-19-related rent reductions in the same way as it would recognize the changeunder IFRS 16 as if such a change was not a modification of the lease. A lessee shall apply this practical solution retroactively, recognizing the cumulative effect of the initial application of the amendment as an adjustment in theinitial balance of accumulated results (or another component of equity, as appropriate) at the beginning of the annual reporting period in which the lessee firstapplies the amendment. A lessee will apply this amendment for annual periods beginning on or after September 1, 2020. Early application is permitted, including in the financialstatements not authorized for publication as of May 28, 2020. Company management has not implemented this amendment because it has no Covid-19-related lease modifications. 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 financialstatements are set forth below. The Company has not made an early adoption of these standards: Standards and Interpretations Mandatory application dateIFRS 17 Insurance Contracts January 1, 2023 IFRS 17 - Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts, a new accounting standard for insurance contracts that covers recognition, measurement,presentation and disclosure. Once effective, it will replace IFRS 4 Insurance Contracts issued in 2005. The new rule applies to all types of insurancecontracts, regardless of the type of entity issuing them, as well as certain guarantees and financial instruments with certain characteristics of discretionaryparticipation. Some exceptions within the scope may be applied. IFRS 17 will be effective for periods starting on or after January 1, 2023, with comparative figures required. Early application is permitted, provided that theentity applies IFRS 9 Financial Instruments, on or before the date on which IFRS 17 is first applied. Amendments to IFRS that have been issued to become effective in the near future are detailed below. Amendments Date of applicationIFRS 9, IAS 39, IFRS 7, IFRS 4and IFRS 16 Interest Rate Benchmark Reform—Phase 2 January 1, 2023IAS 1 Classification of liabilities as current or non-current January 1, 2023IFRS 3 Reference to the Conceptual Framework January 1, 2022IAS 16 Property, Plant and Equipment — Proceeds before Intended Use January 1, 2022IAS 37 Onerous Contracts—Cost of Fulfilling a Contract January 1, 2022IFRS 10 and IAS 28 Consolidated Financial Statements - sale or contribution of assetsbetween an investor and its associate or joint venture To be determined27 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 33 of 87 IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform—Phase 2 In August 2020, the IASB published the second phase of the Interest Rate Benchmark Reform containing amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4and IFRS 16. With this publication, the IASB completes its work to respond to the effects of Interbank Offer Rate Reform (IBOR) on financial information. The amendments provide temporary exceptions that address the effects on financial information when a benchmark interest rate (IBOR) is replaced by analmost risk-free alternative interest rate. Amendments are required and early application is permitted. A hedging ratio must be resumed if the hedging ratio was discontinued solely due to thechanges required by the reform of the benchmark interest rate and would therefore not have been discontinued if the second phase of amendments had beenimplemented at that time. While application is retrospective, an entity is not required to restate previous periods. IAS 1 Presentation of Financial Statements - Classification of liabilities as current or non-current In June 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify requirements for the classification of liabilities as current or non-current. The amendments are effective for periods beginning on or after January 1, 2022. Entities should carefully consider whether there are any aspects of theamendments suggesting that the terms of their existing loan agreements should be renegotiated. In this context, it is important to stress that amendments mustbe implemented retrospectively. IFRS 3 Reference to the Conceptual Framework In May 2020, the IASB issued amendments to IFRS 3 Business Combinations – Reference to the Conceptual Framework. These amendments are intended toreplace the reference to an earlier version of the IASB Conceptual Framework (1989 Framework) with a reference to the current version issued in March2018 without significantly changing its requirements. The amendments shall be effective for periods beginning on or after January 1, 2022 and should be applied retrospectively. Early application is permitted if,at the same time or before, an entity also applies all amendments contained in the amendments to the Conceptual Framework References of the IFRSStandards issued in March 2018. The amendments will provide consistency in financial information and avoid potential confusion by having more than one version of the ConceptualFramework in use. IAS 16 Property, Plant and Equipment — Proceeds before Intended Use The amendment prohibits deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing thatasset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes theproceeds from selling such items, and the cost of producing those items, in profit or loss for the period, pursuant to applicable standards. The amendment shall be effective for periods beginning on or after January 1, 2022. The amendment should be applied retrospectively only property, plantand equipment items available for use on or after the beginning of the first period presented in the financial statements in which the entity first applies theamendment.28 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 34 of 87 IAS 37 Onerous Contracts—Cost of Fulfilling a Contract In May 2020, the IASB issued amendments to IAS 37 Provisions, Contingent Liabilities, and Contingent Assets to specify the costs an entity needs toinclude when assessing whether a contract is onerous, or it generates losses. The amendment shall be effective for periods beginning on or after January 1, 2022. The amendment should be applied retrospectively to existing contractsat the beginning of the annual reporting period in which the entity first applies the amendment (date of initial application). Early application is permitted andmust be disclosed. The amendments are intended to provide clarity and help ensure consistent implementation of the standard. Entities that previously applied the incrementalcost approach will see an increase in provisions to reflect the inclusion of costs directly related to contract activities, while entities that previously recognizedcontractual loss provisions using the guidance to the previous standard, IAS 11 Construction Contracts, should exclude the allocation of indirect costs fromtheir provisions. IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures – sale or contribution of assets between aninvestor 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 recognizedinconsistency between IFRS 10 requirements and IAS 28 (2011) requirements in the treatment of the sale or contribution of assets between an investor andits associate or joint venture. The amendments, issued in September 2014, state that when the transaction involves a business (whether it is in a subsidiary ornot) 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 theresults of its research project on accounting according to the equity method of accounting. These amendments must be applied retrospectively, and earlyadoption is allowed, which must be disclosed. Company management will perform an impact assessment of the above described amendments once they become effective.29 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 35 of 87 3 – FINANCIAL REPORTING BY SEGMENT The Company provides financial information by segments according to IFRS 8 “Operating Segments,” which establishes standards for reporting byoperating 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 thecountries 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 operatingdecision-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: •Operation in Chile•Operation in Brazil•Operation in Argentina•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 countrythat 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.30 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 36 of 87 A summary of the Company’s operating segments in accordance to IFRS is as follows: For the period year ended December 31, 2020 ChileOperation Argentina Operation BrazilOperation Paraguay Operation Intercompany Eliminations Consolidated Total CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Net sales 644,761,885 318,827,620 580,063,307 157,152,584 (2,524,159) 1,698,281,237 Cost of sales (392,720,439) (172,065,726) (373,444,835) (86,791,818) 2,524,159 (1,022,498,659)Distribution expenses (59,897,972) (49,112,014) (34,784,528) (8,737,504) - (152,532,018)Administrative expenses (112,306,460) (69,668,104) (79,674,089) (21,990,282) - (283,638,935)Finance income 6,437,945 1,169,193 7,068,396 270,345 - 14,945,879 Financial expense (23,938,992) (729,164) (30,104,681) - - (54,772,837)Financial expenses, net (*) (17,501,047) 440,029 (23,036,285) 270,345 - (39,826,958)Share of entity in income of associates accounted forusing the equity method, total 1,248,478 - 980,285 - - 2,228,763 Income tax expense (23,057,195) (7,668,059) (20,536,914) (3,643,231) - (54,905,399)Other income (loss) (21,231,223) (6,046,069) 3,064,104 222,477 - (23,990,711)Net income of the segment reported 19,296,027 14,707,677 52,631,045 36,482,571 - 123,117,320 Depreciation and amortization 50,271,626 22,895,329 27,339,714 10,413,848 - 110,920,517 Current assets 532,713,969 70,215,594 149,709,603 44,658,550 - 797,297,716 Non-current assets 636,275,547 144,802,176 643,447,811 226,241,150 - 1,650,766,684 Segment assets, total 1,168,989,516 215,017,770 793,157,414 270,899,700 - 2,448,064,400 Carrying amount in associates and joint venturesaccounted for using the equity method, total 50,628,307 - 37,328,047 - - 87,956,354 Segment disbursements of non-monetary assets 41,114,189 15,803,061 17,075,672 11,882,036 - 85,874,958 Current liabilities 198,669,957 58,904,281 96,144,933 24,337,015 - 378,056,186 Non-current liabilities 748,105,248 10,717,606 465,225,175 14,399,594 - 1,238,447,623 Segment liabilities, total 946,775,205 69,621,887 561,370,108 38,736,609 - 1,616,503,809 Cash flows (used in) provided by in OperatingActivities 191,911,595 24,603,123 36,409,227 25,845,053 - 278,768,998 Cash flows (used in) provided by InvestingActivities (178,910,100) (16,010,950) (17,075,672) (11,882,036) - (223,878,758)Cash flows (used in) provided by FinancingActivities 117,081,470 (167,606) (3,443,826) (429,077) - 113,040,961 (*) Financial expenses associated with external financing for the acquisition of companies, including capital contributions among others, are also presented inthis item.31 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 37 of 87 For the period year ended December 31, 2019 ChileOperation Argentina Operation BrazilOperation Paraguay Operation Intercompany Eliminations Consolidated Total CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Net sales 608,952,121 394,635,840 619,321,284 158,892,010 (2,776,140) 1,779,025,115 Cost of sales (359,465,664) (214,447,259) (384,838,875) (92,368,109) 2,776,140 (1,048,343,767)Distribution expenses (59,076,433) (56,421,024) (42,673,570) (8,825,262) (166,996,289)Administrative expenses (114,250,801) (89,276,114) (98,071,441) (24,305,453) (325,903,809)Finance income 1,286,021 1,346,501 42,327,682 195,587 - 45,155,791 Financial expense (13,151,176) 999,370 (34,057,214) 0 - (46,209,020)Financial expenses, net (*) (11,865,155) 2,345,871 8,270,468 195,587 - (1,053,229)Share of entity in income of associates accounted forusing the equity method, total 381,255 - (3,796,338) - - (3,415,083)Income tax expense (12,838,517) (6,902,265) (36,821,377) (4,604,732) - (61,166,891)Other income (loss) (15,109,823) (3,235,926) 21,754,242 (308,315) - 3,100,178 Net income of the segment reported 36,726,983 26,699,123 83,144,393 28,675,726 - 175,246,225 Depreciation and amortization 46,105,063 25,369,034 29,945,887 9,667,300 - 111,087,284 Current assets 244,504,165 76,354,086 171,349,293 41,266,559 - 533,474,103 Non-current assets 657,069,423 165,116,212 786,979,234 248,309,451 - 1,857,474,320 Segment assets, total 901,573,588 241,470,298 958,328,527 289,576,010 - 2,390,948,423 Carrying amount in associates and joint venturesaccounted for using the equity method, total 49,703,673 - 50,163,060 - - 99,866,733 Segment disbursements of non-monetary assets 51,542,820 24,343,002 21,343,312 13,454,124 - 110,683,258 Current liabilities 193,298,799 68,120,885 124,248,587 25,990,081 - 411,658,352 Non-current liabilities 474,576,722 13,350,651 506,297,573 16,161,177 - 1,010,386,123 Segment liabilities, total 667,875,521 81,471,536 630,546,160 42,151,258 - 1,422,044,475 Cash flows (used in) provided by in OperatingActivities 145,551,360 30,440,761 63,145,540 16,010,813 - 255,148,474 Cash flows (used in) provided by InvestingActivities (50,706,748) (24,790,752) (21,096,376) (13,454,124) - (110,048,000)Cash flows (used in) provided by FinancingActivities (100,352,068) (616,475) (25,654,792) (489,302) - (127,112,637) (*) Financial expenses associated with external financing for the acquisition of companies, including capital contributions among others, are also presented inthis item.32 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 38 of 87 4 – CASH AND CASH EQUIVALENTS The composition of Cash and cash equivalents is as follows: By item 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Cash 339,628 2,331,714 Bank balances 82,997,449 51,176,617 Other fixed rate instruments 226,193,622 104,059,655 Total cash and cash equivalents 309,530,699 157,567,986 Other fixed income instruments are mainly investments in short-term fixed income instruments with good credit rating. There are no restrictions forsignificant amounts available to cash. By currency 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) USD 21,332,268 16,733,249 EUR 223,449 9,722 ARS 14,821,502 3,830,199 CLP 201,936,140 78,420,966 PGY 21,688,915 12,383,873 BRL 49,528,425 46,189,977 Cash and cash equivalents 309,530,699 157,567,986 5 – OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS The composition of other financial assets is as follows: Balance Current Non-current Other financial assets 12.31.2020 12.31.2019 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Financial assets measured at amortized cost (1) 140,304,853 30,073 1,216,865 1,216,865 Financial assets at fair value (2) - 317,205 150,983,295 98,918,457 Other financial assets measured at amortized cost (3) - - 9,813,118 10,648,989 Total 140,304,853 347,278 162,013,278 110,784,311 (1)Financial instrument that does not meet the definition of cash equivalents as defined in Note 2.13. CLP 139,449,883 of these financial assets correspondto short-term realizable instruments, managed by third parties. (2)Market value of hedging instruments. See details in Note 22. (3)Correspond to the rights in the Argentinean company Alimentos de Soya S.A., manufacturing company of “AdeS” products and its distribution rights,which are framed in the purchase of the “AdeS” brand managed by The Coca-Cola Company at the end of 2016.33 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 39 of 87 6 – OTHER CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS The composition of other non-financial assets is as follows: Balance Current Non-current Other non-financial assets 12.31.2020 12.31.2019 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Prepaid expenses 7,932,770 11,242,456 527,110 595,045 Tax credit remainder (1) 234,124 180,695 76,262,417 103,540,639 Guaranty deposit 286 422 - Deposit in courts - - 11,492,642 19,226,030 Others (2) 5,207,201 4,765,392 1,960,503 2,274,436 Total 13,374,381 16,188,965 90,242,672 125,636,150 (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 toexclude ICMS (Tax on Commerce and Services) from the PIS (Program of Social Integration) and COFINS (Contribution for the Financing of SocialSecurity) calculation base, as well as recognition of the right to obtain reimbursement of amounts unduly collected since November 14, 2001, dulyrestated using the Selic interest rate. On May 20, 2019, the ruling favoring RJR became final, allowing the recovery of amounts overpaid fromNovember 14, 2001 to August 2017. It is worth noting that in September 2017, RJR had already obtained a Security Mandate, which granted it the rightto 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 August2017, totaling CLP 103,540 million (BRL 613 million, of which BRL 370 million corresponds to capital and BRL 243 million to interest and monetaryrestatement. 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 175 million. The payment of income tax occurs when liquidating the credit, therefore the respective deferred tax liability recorded was CLP 20,246 million (BRL 148million). In 2020 already CLP 16,142 million (BRL 118 million) have been offset. Compahia de Bebidas Ipiranga (“CBI”) acquired in September 2013, also filed a court order No. 0014022-71.2000.4.03.6102 in order to recognize thesame issue as the one previously described for RJR. In September 2019, the ruling favoring CBI became final, allowing the recovery of the amountsoverpaid from September 12, 1989 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 beimmediately paid to former CBI shareholders (supervention favoring former CBI shareholders). Based on supporting documents found, for the August1993-November 2013 period, the amount of credits related to this process have been calculated and totaled CLP 22,162 million (BRL 162 million, ofwhich BRL 80 million corresponds to capital and BRL 82 million correspond to interest and monetary restatement), from this amount, CLP 958 million(BRL 7 million) must be deducted from indirect taxes, thus generating an account payable to former shareholders for CLP 21,204 million (BRL 155billion) and a government receivables related to credits for that same amount. It is worth mentioning that for the September 1989-July 1993 period, theCompany did not account the credit due to the lack of supporting documents. In addition, RJR has an associate called Sorocaba Refrescos SA (“Sorocaba”), where it has a 40% shareholding in the capital, which also filed a courtorder seeking recognition of the right to the same issue as RJR’s action. On June 13, 2019, the ruling favoring Sorocaba became final, allowing therecovery of the amounts overpaid from July 5, 1992 until the date on which the decision became final. As of December 31, 2020, the impacts wererecognized in RJR’s result from its ownership in Sorocaba, totaling CLP 6,703 million (BRL 49 million, of which BRL 28 million correspond to capitaland BRL 21 million correspond to interest and monetary restatement). In addition, the company recognized indirect costs (attorneys’ fees, consulting,auditing, indirect taxes, and other obligations) resulting from the recognition of the right acquired in court, totaling CLP 1,368 million (BRL 10 million). Income tax payment occurs upon credit settlement, with that the respective deferred tax liability recorded was CLP 1,778 million (BRL 13 million). In2020, CLP 684 million (BRL 5 million) of the total credit obtained by Sorocaba have already been offset. (2)Other non-financial assets are mainly composed of advances to suppliers.34 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 40 of 87 7 – TRADE AND OTHER RECEIVABLES The composition of trade and other receivables is as follows: Balance Current Non-current Trade debtors and other accounts receivable, Net 12.31.2020 12.31.2019 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Trade debtors 151,017,754 150,509,528 40,432 - Other debtors 41,688,151 39,620,246 32,219 466,007 Other accounts receivable 1,315,348 947,814 1,211 57,762 Total 194,021,253 191,077,588 73,862 523,769 Balance Current Non-current Trade debtors and other accounts receivable, Gross 12.31.2020 12.31.2019 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Trade debtors 154,591,684 153,654,549 40,432 - Other debtors 44,691,925 42,719,679 32,219 466,007 Other accounts receivable 1,533,307 1,196,347 1,211 57,762 Total 200,816,916 197,570,575 73,862 523,769 The stratification of the portfolio is as follows: Balance Current trade debtors without impairment impact 12.31.2020 CLP (000’s) 12.31.2019 CLP (000’s) Less than one month 147,177,119 148,150,717 Between one and three months 2,230,594 1,872,144 Between three and six months 1,708,015 838,277 Between six and eight months 509,855 482,596 Older than eight months 3,006,533 2,310,815 Total 154,632,116 153,654,549 The Company has approximately 283,500 clients, which may have balances in the different sections of the stratification. The number of clients is distributedgeographically with 66,100 in Chile, 89,900 in Brazil, 69,600 in Argentina and 58,000 in Paraguay.35 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 41 of 87 The movement in the allowance for expected credit losses is presented below: 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Opening balance 6,492,987 6,298,208 Increase (decrease) 2,321,958 1,762,246 Provision reversal (1,595,521) (1,184,953)Increases (decrease) for changes of foreign currency (423,761) (382,514)Sub – total movements 302,676 194,779 Ending balance 6,795,663 6,492,987 8 – INVENTORIES The composition of inventories is detailed as follows: Details 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Raw materials (1) 80,902,721 93,524,911 Finished goods 27,556,884 32,337,670 Spare parts and supplies 19,592,377 20,769,626 Work in progress 76,577 567,973 Other inventories 3,101,016 3,625,488 Obsolescence provision (2) (3,256,925) (3,184,444)Total 127,972,650 147,641,224 The cost of inventory recognized as cost of sales amounts to CLP 1,022,498,659 thousand and CLP 1,048,343,767 thousand as of December 31, 2020 and2019, 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 thepackaging 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 productsand raw materials. The general standard is to provision all those multi-functional spare parts without utility in rotation in the last four years prior tothe technical analysis technical to adjust the provision. In the case of raw materials and finished products, the obsolescence provision is determinedaccording to maturity. 9 – TAX ASSETS AND LIABILITIES The composition of current tax accounts receivable is the following: Tax assets 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Tax credits (1) 218,472 9,815,294 Total 218,472 9,815,294 (1) Tax credits correspond to income tax credits on training expenses, purchase of Property, plant and equipment, and donations.36 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 42 of 87 The composition of current tax accounts payable is the following: Current Non-Current Tax liabilities 31.12.2020 31.12.2019 31.12.2020 31.12.2019 M$ M$ M$ M$ Income tax expense 8,828,599 6,762,267 20,957 - Total 8,828,599 6,762,267 20,957 - 10 – INCOME TAX EXPENSE AND DEFERRED TAXES 10.1 Income tax expense The current and deferred income tax expenses are detailed as follows: Details 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Current income tax expense 55,522,189 35,439,707 Current tax adjustment previous period (735,907) 713,992 Foreign dividends tax withholding expense 6,987,142 4,534,145 Other current tax expense (income) (47,569) (425,958)Current income tax expense 61,725,855 40,261,886 Expense (income) for the creation and reversal of temporary differences of deferred tax and others (6,820,456) 20,905,005 Expense (income) for deferred taxes (6,820,456) 20,905,005 Total income tax expense 54,905,399 61,166,891 The distribution of national and foreign tax expenditure is as follows: Income taxes 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Current taxes Foreign (39,128,690) (24,315,576)National (22,597,165) (15,946,310)Current tax expense (61,725,855) (40,261,886)Deferred taxes Foreign 7,280,487 (24,012,798)National (460,031) 3,107,793 Deferred tax expense 6,820,456 (20,905,005)Income tax expense (54,905,399) (61,166,891)37 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 43 of 87 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 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Net income before taxes 178,022,719 236,413,116 Tax expense at legal rate (27.0%) (48,066,134) (63,831,541)Effect of a different tax rate in other jurisdictions 1,032,950 (3,471,705)Permanent differences: Non-taxable revenues (2,417,582) 9,507,807 Non-deductible expenses (6,007,898) (4,664,045)Tax effect on excess tax provided for in previous periods 113,747 (3,316,278)Tax monetary restatement effect Chilean companies (5,936,464) 5,199,589 Foreign subsidiaries tax withholding expense and other legal tax debits and credits 6,375,982 (590,718)Adjustments to tax expense (7,872,215) 6,136,355 Tax expense at effective rate (54,905,399) (61,166,891)Effective rate 30.8% 25.9% The applicable income tax rates in each of the jurisdictions where the Company operates are the following: Rate Country 2020 2019 Chile 27.0% 27.0%Brazil 34.0% 34.0%Argentina 30.0% 30.0%Paraguay 10.0% 10.0%38 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 44 of 87 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: 12.31.2020 12.31.2019 Temporary differences Assets Liabilities Assets Liabilities CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Property, plant and equipment 5,421,466 39,544,960 5,445,810 51,414,971 Obsolescence provision 1,340,235 - 1,588,563 - ICMS exclusion credit - 17,679,221 - 25,651,794 Employee benefits 4,475,497 18,300 5,418,561 12,157 Post-employment benefits 150,027 101,339 148,853 787,576 Tax loss carry forwards (1) 6,423,820 - 7,607,813 - Tax goodwill Brazil 2,080,987 - 10,341,033 - Contingency provision 24,103,234 - 34,109,458 - Foreign Exchange differences (2) 8,116,713 - 9,284,450 - Allowance for doubtful accounts 915,562 - 756,895 - Assets and liabilities for placement of bonds 378,901 2,377,870 390,163 1,187,649 Lease liabilities 1,528,990 - 2,242,439 - Inventories 469,416 - 447,192 - Distribution rights - 144,151,661 - 163,107,412 Hedging derivatives - - - - Others 3,785,655 7,060,830 - 3,705,078 Subtotal 59,190,503 210,934,181 77,781,230 245,866,637 Total assets and liabilities net 1,925,869 153,669,547 1,364,340 169,449,747 (1)Tax losses mainly associated with the subsidiary Embotelladora Andina Chile S.A. Tax losses have no expiration date in Chile(2)Corresponds to differed taxes for exchange rate differences generated on the translation of debt expressed in foreign currency in the subsidiary Rio deJaneiro Refrescos Ltda. and which for tax purposes are recognized in Brazil then incurred. The movement in deferred income tax accounts is as follows: Movement 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Opening Balance 168,085,407 145,245,948 Increase (decrease) in deferred tax 4,411,619 20,905,005 Increase (decrease) due to foreign currency translation (*) (20,753,348) 1,934,454 Total movements (16,341,729) 22,839,459 Ending balance 151,743,678 168,085,407 (*) Includes IAS 29 effect, due to inflation in Argentina39 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 45 of 87 11 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are detailed below at the end of each period: Property, plant and equipment, gross 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Construction in progress 34,194,083 27,290,581 Land 94,321,726 104,196,754 Buildings 266,921,167 299,282,674 Plant and equipment 515,395,328 571,154,695 Information technology equipment 24,323,557 23,912,963 Fixed installations and accessories 45,558,495 46,062,659 Vehicles 45,808,748 55,128,493 Leasehold improvements 203,164 214,886 Rights of use (1) 56,726,206 40,498,400 Other properties, plant and equipment (2) 314,602,940 452,600,945 Total Property, plant and equipment, gross 1,398,055,414 1,620,343,050 Accumulated depreciation of Property, plant and equipment 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Buildings (86,004,289) (87,308,899)Plant and equipment (369,605,125) (385,801,471)Information technology equipment (19,445,250) (18,911,118)Fixed installations and accessories (27,910,603) (26,219,378)Vehicles (29,397,964) (33,167,346)Leasehold improvements (144,022) (144,865)Rights of use (1) (35,388,929) (8,254,568)Other properties, plant and equipment (2) (224,582,687) (337,816,542)Total accumulated depreciation (792,478,869) (897,624,187)Total Property, plant and equipment, net 605,576,545 722,718,863 (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 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Bottles 30,275,255 44,071,742 Marketing and promotional assets (market assets) 44,106,959 57,442,154 Other Property, plant and equipment 15,638,039 13,270,507 Total 90,020,253 114,784,403 40 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 46 of 87 11.1 Movements Movements in Property, plant and equipment are detailed as follows: Construction in progress Land Buildings, net Plant and equipment,net IT equipment,net Fixed facilities and accessories, net Vehicles, net Leasehold improvements, net Others Right-of-use,net Property, plant & equipment, net 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) CLP (000’S) Opening balance at January 1, 2020 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 Additions 37,726,227 - 1,520,363 8,963,015 809,348 (1,313) 1,323,740 - 30,536,408 - 80,877,788 Additions right-of-use (1) - - - - - - - - - 1,775,457 1,775,457 Divestitures - - (164,113) (2,485,145) (2,426) - (22,823) - (6,046,468) (87,043) (8,808,018)Transfers between items of Property,plant and equipment (23,336,382) - 2,177,344 8,858,066 1,151,754 1,175,520 906,624 50,356 9,016,718 - - Right-of-use transfers - - - - - - - - - - - Depreciation expense - - (7,240,230) (33,465,104) (2,058,555) (2,803,621) (4,963,835) (44,630) (48,830,152) (99,406,127) Amortization (7,851,901) (7,851,901) Increase (decrease) to due foreigncurrency translation differences (3,086,288) (9,936,257) (29,231,570) (19,859,576) (829,268) (628,317) (3,124,155) (16,605) (11,400,730) (4,728,542) (82,841,308)Other increases (decreases) (2) (4,400,055) 61,229 1,881,309 (1,574,277) 805,609 62,342 330,086 - 1,960,074 (14,526) (888,209)Total movements 6,903,502 (9,875,028) (31,056,897) (39,563,021) (123,538) (2,195,389) (5,550,363) (10,879) (24,764,150) (10,906,555) (117,142,318)Ending balance al 12.31.2020 34,194,083 94,321,726 180,916,878 145,790,203 4,878,307 17,647,892 16,410,784 59,142 90,020,253 21,337,277 605,576,545 (1)Right of use assets is composed as follows: Right-of-use Gross asset Accumulated depreciation Net asset CLP (000’s) CLP (000’s) CLP (000’s) Constructions and buildings 2,740,852 (1,326,250) 1,414,602 Plant and Equipment 37,671,980 (19,802,307) 17,869,673 IT Equipment 451,313 (449,249) 2,064 Motor vehicles 7,298,422 (5,966,204) 1,332,218 Others 8,563,639 (7,844,919) 718,720 Total 56,726,206 (35,388,929) 21,337,277 Lease liabilities interest expenses at the closing of the period reached CLP 2,047,387 thousand41 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 47 of 87 (2)Corresponds mainly to the effect of adopting IAS 29 in Argentina Construction in progress Land Buildings, net Plant and equipment,net IT equipment,net Fixed facilities and accessories, net Vehicles, net Leasehold improvements, net Others Right-of-use,net Property, plant & equipment, net 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) CLP (000’S) Opening balance at January 1, 2019 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 Additions 49,134,461 - 749,800 11,582,259 675,974 7,271 (342,001) 1,309 32,640,210 - 94,449,283 Additions right-of-use (1) - - - - - - - - - 21,721,728 21,721,728 Divestitures (8,761) - (5,902) (352,204) (977) (8,911) (52,095) (155) (1,135,304) - (1,564,309)Transfers between items of property,plant and equipment (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 - - Right-of-use transfers (1) (25,991) - (266,007) (13,788,120) (23,712) - (1,181,465) - (2,520,405) 17,805,700 - Depreciation expense - - (7,681,481) (37,572,910) (1,949,851) (2,977,512) (6,267,039) (30,737) (42,410,016) (98,889,546) Amortization (2) - - - - - - - - - (8,254,568) (8,254,568)Increase (decrease) to due foreigncurrency translation differences 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 Other increase (decrease) (3) (186,959) (80,284) (99,276) (5,883,370) 12,885 (1) (110,264) - (3,423,128) (53,567) (9,823,964)Total movements 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 Ending balance at 12.31.2019 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 (1)By adoption of IFRS 16.(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 amortizationarising 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 theaccounting criteria of Property, plant and equipment.(3)Mainly correspond to the effects of adopting IAS 29 in Argentina.42 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 48 of 87 12 – RELATED PARTIES Balances and main transactions with related parties are detailed as follows: 12.1Accounts receivable: 12.31.2020 12.31.2019 Taxpayer ID Company Relationship Country Currency Current Non-Current Current Non-Current CLP (000’S) CLP (000’s) CLP (000’s) CLP (000’s) 96.891.720-K Embonor S.A. Shareholder related Chile CLP 3,643,603 - 6,589,539 - 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile CLP 16,024 138,346 14,839 283,118 Foreign Coca Cola de Argentina Director related Argentina ARS 4,558,753 - 1,203,389 - Foreign Alimentos de Soja S.A.U. Shareholder related Argentina ARS 308,882 - 428,802 - 96.517.210-2 Embotelladora Iquique S.A. Shareholder related Chile CLP 292,801 - 278,176 - 86.881.400-4 Envases CMF S.A. Associate Chile CLP 773,732 - 217,510 - 96.919.980-7 Cervecería Austral S.A. Director related Chile USD - - 45,644 - 77.755.610-K Comercial Patagona Ltda. Director related Chile CLP - - 3,872 - 77.526.480-2 Comercializadora Nova Verde Common shareholder Chile CLP 837,837 - - - 76.572.588-7 Coca Cola del Valle NewVentures S.A. Associate Chile CLP 1,401,898 - 2,003,203 - 76.140.057-6 Monster Associate Chile CLP 41,878 - 50,794 - Total 11,875,408 138,346 10,835,768 283,118 12.2Accounts payable: 12.31.2020 12.31.2019 Taxpayer ID Company Relationship Country Currency Current Non-Current Current Non-Current CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile CLP 18,897,093 - 20,555,135 - Foreign Recofarma do IndústriasAmazonas Ltda. Shareholder related Brazil BRL 7,926,109 10,790,089 14,888,934 19,777,812 86.881.400-4 Envases CMF S.A. Associate Chile CLP 3,856,973 - 6,359,797 - Foreign Ser. y Prod. para BebidasRefrescantes S.R.L. Shareholder Argentina ARS 4,848,196 - 5,887,070 - Foreign Leão Alimentos e BebidasLtda. Associate Brazil BRL 1,323,609 - 1,841,377 - Foreign Monster Energy Brasil Com deBebidas Ltda. Shareholder related Brazil BRL 1,156,786 - 827,300 - 76.572.588-7 Coca Cola del Valle NewVentures S.A. Associate Chile CLP 490,758 - 1,247,961 - 89.996.200-1 Envases del Pacífico S.A. Director related Chile CLP 3,414 - 25,202 - 96.891.720-K Embonor S.A. Shareholder related Chile CLP 118,314 - 275,565 - Foreign Alimentos de Soja S.A.U. Shareholder related Argentina ARS 402,581 - 929,986 - 77.526.480-2 Comercializadora Nova Verde Common shareholder Chile CLP 518,135 - 765,521 - Foreign Coca Cola Panamá Shareholder related Panamá USD - - 7,739 - Foreign Sorocaba Refrescos S.A. Associate Brazil BRL - - 26,014 - Total 39,541,968 10,790,089 53,637,601 19,777,812 43 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 49 of 87 12.3Transactions: Taxpayer ID Company Relationship Country Transaction Description Currency Accumulated 12.31.2020 Accumulated 12.31.2019 CLP (000’s) CLP (000’s) 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Concentrate purchase CLP 139,193,479 150,548,253 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Advertising services purchase CLP 2,890,638 4,369,500 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Water source lease CLP 3,847,817 5,324,194 96.714.870-9 Coca-Cola de Chile S.A. Shareholder Chile Sale of raw materials andothers CLP 1,169,944 1,196,793 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of bottles CLP 12,210,449 19,422,280 86.881.400-4 Envases CMF S.A. Associate Chile Raw material purchase CLP 16,055,991 16,814,062 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of caps CLP 91,778 281,174 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of services andothers CLP 520,221 6,425,579 86.881.400-4 Envases CMF S.A. Associate Chile Sale of services and others CLP 1,578 - 86.881.400-4 Envases CMF S.A. Associate Chile Purchase of packaging CLP 5,992,443 521,466 86.881.400-4 Envases CMF S.A. Associate Chile Sale of finished products CLP 2,380,574 - 86.881.400-4 Envases CMF S.A. Associate Chile Sale of packaging/rawmaterials CLP 6,344,834 6,132,091 96.891.720-K Embonor S.A. Shareholder related Chile Sale of finished products CLP 44,982,749 50,315,292 96.891.720-K Embonor S.A. Shareholder related Chile Sale of services and others CLP 447,092 268,526 96.891.720-K Embonor S.A. Shareholder related Chile Sale of raw material andmaterial CLP 197,288 212,517 96.891.720-K Embonor S.A. Shareholder related Chile Minimum Dividend CLP 118,314 - 96.517.310-2 Embotelladora Iquique S.A. Shareholder related Chile Sale of finished products CLP 167,430 3,208,559 89.996.200-1 Envases del Pacífico S.A. Director related Chile Raw material and materialpurchase CLP 427 93,117 Foreign Recofarma do Indústrias AmazonasLtda. Shareholder related Brazil Concentrate purchase BRL 71,959,416 91,426,935 Foreign Recofarma do Indústrias AmazonasLtda. Shareholder related Brazil Reimbursements and otherpurchases BRL 220,708 5,977,419 Foreign Serv. y Prod. para BebidasRefrescantes S.R.L. Shareholder related Argentina Concentrate purchase ARS 81,198,463 97,321,567 Foreign Serv. y Prod. para BebidasRefrescantes S.R.L. Shareholder related Argentina Advertising participation ARS 6,395,881 4,111,764 Foreign KAIK Participações Associate Brazil Reimbursements and otherpurchases BRL 14,162 39,382 Foreign Sorocaba Refrescos S.A. Associate Brazil Product purchase BRL 3,671,472 1,049,709 89.862.200-2 Latam Airlines Group S.A. Director related Chile Product purchase CLP 85,140 - 76.572.588-7 Coca Cola Del Valle New VenturesS.A. Associate Chile Sale of services and others CLP 397,659 3,959,962 76.572.588-7 Coca Cola Del Valle New VenturesS.A. Associate Chile Purchase of services andothers CLP 4,410,223 - Foreign Alimentos de Soja S.A.U. Shareholder related Argentina Payment of fees and services ARS 1,373,594 802,563 Foreign Alimentos de Soja S.A.U. Shareholder related Argentina Product purchase ARS 80,761 4,274,236 77526480-2 Comercializadora Novaverde S.A. Common shareholder Chile Sale of raw materials CLP 10,914 - 77526480-2 Comercializadora Novaverde S.A. Common shareholder Chile Sale of finished products CLP 2,050,156 - 77526480-2 Comercializadora Novaverde S.A. Common shareholder Chile Sale of services and others CLP 459,707 - 77526480-2 Comercializadora Novaverde S.A. Common shareholder Chile Raw material purchase CLP 1,009,547 - 44 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 50 of 87 12.4Salaries 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 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Executive wages, salaries and benefits 7,464,071 6,267,936 Director allowances 1,479,420 1,512,000 Accrued benefits last five years and payments during the fiscal year 297,072 305,674 Benefit for contract termination 115,341 54,819 Total 9,355,904 8,140,429 13 – CURRENT AND NON-CURRENT EMPLOYEE BENEFITS Employee benefits are detailed as follows: Description 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Accrued vacation 14,650,267 17,584,587 Participation in profits and bonuses 15,969,735 20,896,357 Indemnities for years of service 14,086,575 10,085,264 Total 44,706,577 48,566,208 CLP (000’s) CLP (000’s) Current 31,071,019 38,392,854 Non-Current 13,635,558 10,173,354 Total 44,706,577 48,566,208 13.1Indemnities for years of service The movements of employee benefits, valued pursuant to Note 2 are detailed as follows: Movements 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Opening balance 10,085,264 9,415,541 Service costs 1,675,492 784,984 Interest costs 369,332 354,471 Actuarial variations 3,127,398 (210,956)Benefits paid (1,170,911) (258,776)Total 14,086,575 10,085,264 45 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 51 of 87 13.1.1Assumptions The actuarial assumptions used are detailed as follows: Assumptions 12.31.2020 12.31.2019Real discount rate -0.05% 2.7%Expected salary increase rate 2.0% 2.0%Turnover rate 7.68% 5.4%Mortality rate RV-2014 RV-2014Retirement age of women 60 years 60 yearsRetirement age of men 65 years 65 years 13.2Personnel expenses Personnel expenses included in the consolidated statement of income are as follows: Description 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Wages and salaries 187,600,163 194,740,646 Employee benefits 48,504,899 58,005,213 Severance benefits 3,238,966 6,987,184 Other personnel expenses 12,993,234 13,389,967 Total 252,337,262 273,123,010 14 – INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD 14.1Description Investments in associates using equity method of accounting are detailed as follows: Functional Investment value Ownership interest Taxpayer ID Company Country currency 12.31.2020 12.31.2019 12.31.2020 12.31.2019 86.881.400-4 Envases CMF S.A. (1) Chile CLP 20,185,148 18,561,835 50.00% 50.00%Foreign Leão Alimentos e Bebidas Ltda. (2) Brazil BRL 10,628,035 17,896,839 10.26% 10.26%Foreign Kaik Participações Ltda. (2) Brazil BRL 979,978 1,313,498 11.32% 11.32%Foreign SRSA Participações Ltda. Brazil BRL 48,032 65,301 40.00% 40.00%Foreign Sorocaba Refrescos S.A. Brazil BRL 20,976,662 24,636,945 40.00% 40.00%Foreign Trop Frutas do Brasil Ltda. (2) Brazil BRL 4,695,228 6,250,481 7.52% 7.52%76.572.588.7 Coca Cola del Valle New Ventures S.A. Chile CLP 30,443,271 31,141,834 35.00% 35.00%Total 87,956,354 99,866,733 (1)In Envases CMF S.A., regardless of the percentage of ownership interest, it was determined that no controlling interest was held, only a significantinfluence, 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 ownership interest, it has been defined that the Company has significant influence, given that it has the right toappoint directors.46 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 52 of 87 14.2Movement The movement of investments in other entities accounted for using the equity method is shown below: Description 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Opening balance 99,866,733 102,410,945 Dividends declared (1,215,126) (1,076,491)Share in operating income 3,248,680 (2,495,621)Amortization unrealized income in associates (566,422) (919,462)Increase (decrease) in foreign currency translation, investments in associates (13,377,511) 1,947,362 Ending balance 87,956,354 99,866,733 The main movements are explained below: •In 2020 Leão Alimentos e Bebidas Ltda. recognized the value of a plant at its value of use less the costs of sale, reducing the value previously recognized.Andina recognized as results for the 2020 period a proportional loss of CLP 2,931 million.•In the 2020 period Sorocaba Refrescos S.A., recognized a tax credit for excluding ICMS from the PIS and COFINS calculation base. Andina recognizedas results for the 2020 period a proportional result of CLP 2,134 million.•Dividends declared in 2020 correspond mainly to Envases CMF S.A. 14.3Reconciliation of share of profit in investments in associates: Description 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Equity value on income of associates 3,248,680 (2,495,621)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) (528,122) (394,490)Amortization goodwill in the sale of fixed assets of Envases CMF S.A. 85,266 85,266 Amortization goodwill preferential shares CCDV S.A. (523,061) (610,238)Income statement balance 2,228,763 (3,415,083) 14.4Summary financial information of associates: At December 31, 2020: EnvasesCMF S.A. SorocabaRefrescos S.A. Kaik Participações Ltda. SRSA Participações Ltda. Leão Alimentos e BebidasLtda. Trop Frutas do Brasil Ltda. Coca-Cola del Valle New Ventures S.A. CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) Total assets 75,089,424 86,802,489 8,657,291 288,440 144,111,310 76,012,734 105,735,317 Total liabilities 34,633,862 41,781,275 26 168,354 37,634,466 21,236,127 20,000,197 Total revenue 40,455,562 45,021,214 8,657,265 120,086 144,111,310 54,776,607 85,735,120 Net income (loss) of associates 4,717,515 664,208 96,980 117,350 (39,244,393) (890,021) (475,467) Reporting date 12.31.2020 11.30.2020 11.30.2020 11.30.2020 11.30.2020 11.30.2020 12.31.2020 47 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 53 of 87 At December 31, 2019 Envases CMF S.A. SorocabaRefrescos S.A. Kaik Participações Ltda. SRSA Participações Ltda. Leão Alimentos e BebidasLtda. Trop Frutas do Brasil Ltda. Coca-Cola del Valle New Ventures S.A. CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) Total assets 77,994,582 116,551,131 11,661,828 393,856 248,493,994 104,778,397 107,388,847 Total liabilities 39,826,283 54,650,105 35 229,780 38,137,061 27,158,470 18,693,717 Total revenue 58,640,058 69,343,990 337,450 160,342 139,769,189 47,252,571 31,914,825 Net income (loss) of associates 1,449,997 3,948,798 337,450 160,342 2,320,841 (1,177,262) 4,297,003 77,994,582 116,551,131 11,661,828 393,856 248,493,994 104,778,397 107,388,847 Reporting date 12.31.2019 11.30.2019 11.30.2019 11.30.2019 11.30.2019 11.30.2019 11.30.2019 15 - INTANGIBLE ASSETS OTHER THAN GOODWILL Intangible assets other than goodwill are detailed as follows: December 31, 2020 December 31, 2019 Gross Accumulated Net Gross Accumulated Net Description Value Amortization Value Value Amortization Value CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Distribution rights (1) 598,371,081 (2,005,344) 596,365,737 667,148,383 (393,187) 666,755,196 Software 35,030,003 (26,882,550) 8,147,453 34,347,843 (26,484,427) 7,863,416 Others 417,957 (416,982) 975 750,309 (293,546) 456,763 Total 633,819,041 (29,304,876) 604,514,165 702,246,535 (27,171,160) 675,075,375 (1)Correspond to the contractual rights to produce and distribute Coca-Cola products in certain parts of Argentina, Brazil, Chile and Paraguay. Distributionrights result from the valuation process at fair value of the assets and liabilities of the companies acquired in business combinations. Production anddistribution contracts are renewable for periods of 5 years with Coca-Cola. The nature of the business and renewals that Coca-Cola has permanentlydone 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 distributionrights 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 is4 years. Distribution rights 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Chile (excluding Metropolitan Region, Rancagua and San Antonio) 303,702,092 305,235,247 Brazil (Rio de Janeiro, Espirito Santo, Ribeirão Preto and investments in Sorocaba and Leão Alimentos e BebidasLtda.) 138,176,054 187,616,890 Paraguay 152,595,420 171,841,663 Argentina (North and South) 1,892,171 2,061,396 Total 596,365,737 666,755,196 48 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 54 of 87 The movement and balances of identifiable intangible assets are detailed as follows: January 1 to December 31, 2020 January 1 to December 31, 2019 Distribution Distribution Description rights Others Software Total rights Others Software Total CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Opening balance 666,755,196 456,763 7,863,416 675,075,375 661,026,400 430,196 7,365,957 668,822,553 Additions 94,661 - 2,575,125 2,669,786 - - 3,296,558 3,296,558 Amortization (1,573,878) - (2,088,612) (3,662,490) (133,753) - (2,324,225) (2,457,978)Other increases (decreases) (1) (68,910,242) (455,786) (202,478) (69,568,506) 5,862,549 26,567 (474,874) 5,414,242 Ending balance 596,365,737 977 8,147,451 604,514,165 666,755,196 456,763 7,863,416 675,075,375 (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 01.01.2020 Translationdifferencesfrom functionalcurrency 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) Chilean operation 8,503,023 - 8,503,023 Brazilian operation 75,674,072 (19,672,659) 56,001,413 Argentine operation 29,750,238 (2,406,596) 27,343,642 Paraguayan operation 7,294,328 (816,813) 6,477,515 Total 121,221,661 (22,896,068) 98,325,593 Operating segment 01.01.2019 Translationdifferencesfrom functionalcurrency 12.31.2019 CLP (000’s) CLP (000’s) CLP (000’s) Chilean operation 8,503,023 - 8,503,023 Brazilian operation 73,080,100 2,593,972 75,674,072 Argentine operation 28,318,129 1,432,109 29,750,238 Paraguayan operation 7,327,921 (33,593) 7,294,328 Total 117,229,173 3,992,488 121,221,661 49 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 55 of 87 17 – OTHER CURRENT AND NON-CURRENT FINANCIAL LIABILITIES Liabilities are detailed as follows: Balance Current Non-current 12.31.2020 12.31.2019 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Bank loans (17.1.1 – 2) 799,072 1,438,161 4,000,000 909,486 Bonds payable, net (1)(Note 17.2) 18,705,015 21,604,601 918,921,342 718,962,871 Deposits in guarantee 12,126,831 11,163,005 - - Derivative contract liabilities (Note 22) 1,217,322 374,576 51,568,854 - Leasing agreements (Note 17.4.1 – 2) 5,718,484 6,013,535 15,339,373 23,454,700 Total 38,566,724 40,593,878 989,829,569 743,327,057 (1)Amounts net of issuances expenses and discounts related to issuance. The fair value of financial assets and liabilities is presented below: Current Book Value12.31.2020 Fair Value12.31.2020 Book Value12.31.2019 Fair Value12.31.2019 CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) Cash and cash equivalent (2) 309,530,699 309,530,699 157,567,986 157,567,986 Other financial assets (1) - - 317,205 317,205 Trade debtors and other accounts receivable (2) 194,664,683 194,664,683 191,077,588 191,077,588 Accounts receivable related companies (2) 11,875,408 11,875,408 10,835,768 10, 835,768 Bank loans (2) 799,072 896,307 1,438,161 1,434,255 Bonds payable (2) 18,705,015 22,471,852 21,604,601 24,188,060 Bottle guaranty deposits (2) 12,126,831 12,126,831 11,163,005 11,163,005 Derivative contracts liabilities (see note 20) (1) 1,217,322 1,217,322 374,576 374,576 Leasing agreements (2) 5,542,356 5,542,356 6,013,535 6,013,535 Accounts payable (2) 230,438,133 230,438,133 243,700,553 243,700,553 Accounts payable related companies (2) 39,541,968 39,541,968 53,637,601 53,637,601 Non-current 12.31.2020 12.31.2020 12.31.2019 12.31.2019 CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) Other financial assets (1) 150,983,295 150,983,295 98,918,457 98,918,457 Accounts receivable, non-current (2) 73,862 73,862 523,769 523,769 Accounts receivable related companies (2) 138,346 138,346 283,118 283,118 Bank loans (2) 4,000,000 4,056,753 909,486 867,025 Bonds payable (2) 918,921,342 1,088,617,557 718,962,871 803,017,145 Forward agreements (see note 20) (1) 15,339,373 15,339,373 23,454,700 23,454,700 Leasing agreements (2) 295,279 295,279 619,587 619,587 Accounts payable, non-current (2) 150,983,295 150,983,295 98,918,457 98,918,457 (1)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 Level2 of the fair value measurement hierarchies. (2)Financial instruments such as: Cash and Cash Equivalents, Trade and Other Accounts Receivable, Accounts Receivable, Bottle Guarantee Deposits andTrade Accounts Payable, and Other Accounts Payable present a fair value that approximates their carrying value, considering the nature and term of theobligation. The business model is to maintain the financial instrument in order to collect/pay contractual cash flows, in accordance with the terms of thecontract, 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.50 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 56 of 87 17.1.1 Bank liabilities, current Maturity Total Indebted entity Creditor Entity Type of Nominal Up to 90 days to At At Taxpayer ID Name Country Taxpayer ID Name Country Currency Amortization Rate 90 days 1 year 12.31.2020 12.31.2019 CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) 96.705.990-0 Envases Central S.A. Chile 97.006.000-6 Banco BCI Chile UF Semiannually 2.13%- 760,667 760,667 748,838 96.705.990-0 Envases Central S.A. Chile 97.006.000-6 Banco BCI Chile UF Semiannually 2.00%33,111 - 33,111 - Foreign Embotelladora del Atlántico S.A. Argentina Foreign Banco Galicia y Buenos Aires S.A. Argentina AR Uponmaturity 82.00%- - - 8,453 Foreign Embotelladora del Atlántico S.A. Argentina Foreign Banco Galicia y Buenos Aires S.A. Argentina AR Monthly 22.00%5,294 - 5,294 Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brasil BRL Monthly 6.63%- - - 635,727 Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brasil BRL Quarterly 4.50%- - - 45,143 Total 799,072 1,438,161 17.1.2 Bank liabilities, non-current Maturity Indebted entity Creditor Entity Type of Nominal 1 year up to Morethan2 years Up to Morethan3 years Up to More than 4 years Up to More than 5 at Taxpayer ID Name Country Taxpayer ID Name Country Currency Amortization Rate 2 years 3 years 4 years 5 years Years 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) 96.705.990-0 Envases Central S.A. Chile 97.006.000-6 Banco BCI Chile UF Semiannually 2.00%- - 4,000,000 - - 4,000,000 Total 4,000,000 17.1.3 Bank liabilities, non-current previous year Maturity Indebted Entity Creditor Entity Type Effective Nominal 1 year up to More than 2 years Up to More than 3 years Up to More than 4 years Up to More than 5 at Tax ID Name Country Tax ID Name Country Currency Amortization Rate Rate 2 years 3 years 4 years 5 years Years 12.31.2019 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) 96.705.990-0 Envases Central S.A. Chile 97.006.000-6 Banco BCI Chile UF Semiannually 2.13%2.13%736,033 - - - - 736,033 Foreign Rio de Janeiro Refrescos Ltda. Brazil Foreign Banco Itaú Brazil BRL Monthly 6.63%6.63%44,621 44,621 44,621 39,590 - 173,453 Total 909,486 51 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 57 of 87 17.1.4 Current and non-current bank liabilities “Restrictions” Bank obligations are not subject to restrictions for the reported periods. 17.2Bonds payable On January 21, 2020, the Company issued corporate bonds on the international market for USD 300 million with a 30-year maturity, with a bullet structureand an annual interest rate of 3.950%. 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/RegSSenior 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 annualinterest rate of 2.83%. The costs corresponding to the repurchase of bonds, associated with premium payments, overpricing and proportional amortization ofplacement costs and discounts in bonds in original U.S. Dollars amounting to CLP 9,583,000 thousand, were recorded in results under the item financialcosts. Current Non-current Total Composition of bonds payable 12.31.2020 12.31.2019 12.31.2020 12.31.2019 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Bonds (face value) 1 19,347,033 22,189,595 925,968,913 721,950,553 945,315,946 744,140,148 1 Gross amounts, do not consider issuance expenses and discounts related to issuance. 17.2.1Current 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 onthe international market. A detail of these instruments is presented below: Current nominal Adjustment Interest Final Interest Current Non-current Bonds Series amount unit rate maturity payment 12.31.2020 12.31.2019 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CMF Registration N° 254 06.13.2001 B 1,771,585 UF 6,5% 12-01-2026 Semiannually 7,776,693 7,160,809 40,388,468 46,659,296 CMF Registration N° 641 08.23.2010 C 1,500,000 UF 4,0% 08-15-2031 Semiannually 647,672 630,731 43,605,495 42,464,910 CMF Registration N° 759 08.20.2013 C 0 UF 3,5% 08-16-2020 Semiannually - 7,168,907 - - CMF Registration N° 760 08.20.2013 D 4,000,000 UF 3,8% 08-16-2034 Semiannually 1,629,677 1,587,051 116,281,320 113,239,760 CMF Registration N° 760 04.02.2014 E 3,000,000 UF 3,75% 03-01-2035 Semiannually 1,083,063 1,048,938 87,210,999 84,929,828 CMF Registration N° 912 10.10.2018 F 5,700,000 UF 2,83% 09-25-2039 Semiannually 1,234,601 1,195,700 165,700,881 161,366,658 Bonds USA 2023 10.01.2013 - 365,000,000 US$ 5,0% 10-01-2023 Semiannually 3,243,709 3,397,459 259,496,750 273,290,101 Bonds USA 2050 01.21.2020 - 300,000,000 US$ 3,95% 01-21-2050 Semiannually 3,731,618 - 213,285,000 - Total 19,347,033 22,189,595 925,968,913 721,950,553 52 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 58 of 87 17.2.3Non-current maturities Year of maturity Total non-current Series More than 1 up to 2 More than 2 up to 3 More than 3 up to 4 More than 5 12.31.2020 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CMF Registration N° 254 06.13.2001 B 8,013,138 8,533,990 9,088,700 14,752,640 40,388,468 CMF Registration N° 641 08.23.2010 C 3,964,136 3,964,136 3,964,136 31,713,087 43,605,495 CMF Registration N° 760 08.20.2013 D - - - 116,281,320 116,281,320 CMF Registration N° 760 04.02.2014 E - - - 87,210,999 87,210,999 CMF Registration N° 912 10.10.2018 F - - - 165,700,881 165,700,881 USA Bonds - - 259,496,750 - - 259,496,750 USA 2 Bonds - - - - 213,285,000 213,285,000 Total 11,977,274 271,994,876 13,052,836 628,943,927 925,968,913 17.2.4Market rating The bonds issued on the Chilean market had the following rating: AA:ICR Compañía Clasificadora de Riesgo Ltda. ratingAA:Fitch Chile Clasificadora de Riesgo Limitada rating The rating of bonds issued on the international market had the following rating: BBB:Standard&Poors Global RatingsBBB+:Fitch Ratings Inc. 17.2.5Restrictions 17.2.5.1Restrictions regarding bonds placed abroad. Obligations with bonds placed abroad are not affected by financial restrictions for the periods reported. 17.2.5.2Restrictions regarding bonds placed in the local market. Restrictions on the issuance of bonds for a fixed amount registered under number 254. In October 2020, the Consolidated Financial Liabilities/Consolidated Equity no more than 1.20 times covenant was amended as follows: •Maintain an indebtedness level where Net Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times. For these purposes NetConsolidated Financial Liabilities shall be regarded as (i) “Other Current Financial Liabilities,” plus (ii) “Other Non-Current Financial Liabilities,” less(iii) the addition of “Cash and Cash Equivalents” plus “Other Current Financial Assets;” plus “Other Non-Current Financial Assets) (to the extent theycorrespond to asset balances of derivative financial instruments, taken to cover exchange rate and/or interest rate risks on financial liabilities).Consolidated Equity will be regarded as total equity including non-controlling interest. As of December 31, 2020, this ratio is 0.51 times. •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 anddistribution of products and brands of the licensor, in accordance to the respective bottler or license agreement, renewable from time to time.53 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 59 of 87 •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 Companyfor the development, production, sale and distribution of products and brands of such licensor, as long as any of these territories account for more than40% of the Issuer’s Adjusted Consolidated Operating Cash Flow. •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 unsecuredconsolidated liabilities. Unsecured consolidated liabilities payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by realguarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financialinstruments, taken to cover exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-currentFinancial 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 lienvoluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interestrate risks on financial liabilities and under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s ConsolidatedStatement of Financial Position. As of December 31, 2020, this ratio is 1.55 times. Restrictions to bond lines registered in the Securities Registered under number 641, series C •Maintain a level of “Net Financial Debt” within its quarterly financial statements that may not exceed 1.5 times, measured over figures included in itsconsolidated statement of financial position. To this end, net financial debt shall be defined as the ratio between net financial debt and total equity of theissuer (equity attributable to controlling owners plus non-controlling interest). On its part, net financial debt will be the difference between the Issuer’sfinancial debt and cash. As of December 31, 2020, Net Financial Debt level was 0.51 times. •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 unsecuredconsolidated 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 arefree of any pledge, mortgage or other liens constituted in favor of third parties, less “Other Current Financial Assets” and “Other Non-Current FinancialAssets” of the Issuer’s Financial Statements (to the extent they correspond to asset balances of derivative financial instruments, taken to hedge exchangerate 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 Statementwhich do not benefit from preferences or privileges, less “Other Current Financial Assets” and “Other Non-Current Financial Assets” of the Issuer’sFinancial Statements (to the extent they correspond to asset balances of derivative financial instruments, taken to hedge exchange rate and interest raterisk of the financial liabilities). As of December 31, 2020, this ratio is 1.55 times.54 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 60 of 87 •Maintain a level of “Net Financial Coverage” greater than 3 times in its quarterly financial statements. Net financial coverage means the ratio between theissuer’s Ebitda of the last 12 months and the issuer’s Net Financial Expenses in the last 12 months. Net Financial Expenses will be regarded as thedifference between the absolute value of interest expense associated with the issuer’s financial debt account accounted for under “Financial Costs”; andinterest income associated with the issuer’s cash accounted for under the Financial Income account. However, this restriction shall be deemed to havebeen breached where the mentioned level of net financial coverage is lower than the level previously indicated during two consecutive quarters. As of December 31, 2020, Net Financial Coverage level is 8.50 times. Restrictions to bond lines registered in the Securities Registrar under number 760 D-E. •Maintain an indebtedness level where Net Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times. For these purposes NetConsolidated Financial Liabilities shall be regarded as (i) “Other Current Financial Liabilities,” plus (ii) “Other Non-Current Financial Liabilities,” less(iii) the addition of “Cash and Cash Equivalents” plus “Other Current Financial Assets;” plus “Other Non-Current Financial Assets) (to the extent theycorrespond to asset balances of derivative financial instruments, taken to cover exchange rate and/or interest rate risks on financial liabilities).Consolidated Equity will be regarded as total equity including non-controlling interest. As of December 31, 2020, Indebtedness Level is 0.51 times of Consolidated Equity. •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 unsecuredconsolidated liabilities payable. Unsecured Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by realguarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative financialinstruments, taken to cover exchange rate or interest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-currentFinancial 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 apledge, mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge exchange rate orinterest rate risks on financial liabilities under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s ConsolidatedFinancial 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 coverexchange rate or interest rate risks on financial liabilities and under “Other Current Financial Assets” and “Other non-current Financial Assets” of theIssuer’s Consolidated Statement of Financial Position. As of December 31, 2020, this ratio is 1.55 times. •Maintain, and in no manner, lose, sell, assign or transfer to a third party, the geographical area currently denominated as the “Metropolitan Region” as aterritory 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 fromtime to time. Losing said territory, means the non-renewal, early termination or cancellation of this license agreement by TCCC, for the geographicalarea today called “Metropolitan Region”. This reason shall not apply if, as a result of the loss, sale, transfer or disposition, of that licensed territory ispurchased or acquired by a subsidiary or an entity that consolidates in terms of accounting with the Issuer.55 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 61 of 87 •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 isfranchised by TCCC to the Issuer for the development, production, sale and distribution of products and brands of such licensor, as long as any of theseterritories account for more than 40% of the Issuer’s Adjusted Consolidated Operating Cash Flow of the audited period immediately before the momentof loss, sale, assignment or transfer. For these purposes, the term “Adjusted Consolidated Operating Cash Flow” shall mean the addition of the followingaccounting 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 areaccounted for using the equity method”; plus (v) “Depreciation”; plus (vi) “Intangibles Amortization”. Restrictions to bond lines registered in the Securities Registrar under number 912. •Maintain an indebtedness level where Net Consolidated Financial Liabilities to Consolidated Equity does not exceed 1.20 times. For these purposes NetConsolidated Financial Liabilities shall be regarded as (i) “Other Current Financial Liabilities,” plus (ii) “Other Non-Current Financial Liabilities,” less(iii) the addition of “Cash and Cash Equivalents” plus “Other Current Financial Assets;” plus “Other Non-Current Financial Assets) (to the extent theycorrespond to asset balances of derivative financial instruments, taken to cover exchange rate and/or interest rate risks on financial liabilities).Consolidated Equity will be regarded as total equity including non-controlling interest. As of December 31, 2020, this ratio is 0.51 times. •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 unsecuredconsolidated liabilities payable. Unsecured Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuerthat are not secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances ofderivative 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 determiningConsolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge, mortgage or real encumbrances thatoperate solely by law, less asset balances of derivative financial instruments, taken to hedge exchange rate or interest rate risks on financial liabilitiesunder “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 lienvoluntarily and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange rate or interestrate risks on financial liabilities and under “Other Current Financial Assets” and “Other non-current Financial Assets” of the Issuer’s ConsolidatedStatement of Financial Position. As of December 31, 2020, this ratio is 1.55 times. •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 Eis franchised by TCCC to the Issuer for the development, production, sale and distribution of products and brands of such licensor, as long as any ofthese territories account for more than 40% of the Issuer’s Adjusted Consolidated Operating Cash Flow of the audited period immediately before themoment of loss, sale, assignment or transfer. For these purposes, the term “Adjusted Consolidated Operating Cash Flow” shall mean the addition of thefollowing accounting accounts of the Issuer’s Consolidated Statement of Financial Position: (i) “Gross Profit” which includes regular activities and costof sales; less (ii) “Distribution Costs”; less (iii) “Administrative Expenses”; plus (iv) “Participation in profits (losses) of associates and joint venturesthat are accounted for using the equity method”; plus (v) “Depreciation”; plus (vi) “Intangibles Amortization”. As of December 31, 2020 and 2019, the Company complies with all financial collaterals. 17.3Derivative contract liabilities Please see details in Note 2256 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 62 of 87 17.4.1Current liabilities for leasing agreements Maturity Total Debtor Entity Creditor Entity Type of Nominal Up to 90 days to At At Name Country Taxpayer ID Name Country Currency Amortization Rate 90 days 1 year 12.31.2020 12.31.2019 CLP(000’s) CLP (000’s) CLP(000’s) CLP (000’s) Rio de Janeiro RefrescosLtda. Brazil Foreign Cogeração - Light ESCO Brasil BRL Monthly 12.28% 166,711 531,815 698,526 839,502 Rio de Janeiro RefrescosLtda. Brazil Foreign Tetra Pack Brasil BRL Monthly 7.39% 61,617 147,121 208,738 360,854 Rio de Janeiro RefrescosLtda. Brazil Foreign Real estate Brasil BRL Monthly 8.20% 66,160 117,534 183,694 300,338 Rio de Janeiro RefrescosLtda. Brazil Foreign Leão Brasil BRL Monthly 6.56% 68,366 200,944 269,310 497,386 Embotelladora del AtlánticoS.A. Argentina Foreign Tetra Pak SRL Argentina USD Monthly 12.00% 20,867 62,602 83,469 132,815 Embotelladora del AtlánticoS.A. Argentina Foreign Banco Comafi Argentina USD Monthly 12.00% 31,232 93,695 124,927 88,739 Embotelladora del AtlánticoS.A. Argentina Foreign Real estate Argentina ARS Monthly 50.00% 65,656 148,249 213,905 189,320 Embotelladora del AtlánticoS.A. Argentina Foreign Systems Argentina USD Monthly 1.00% 20,556 61,671 82,227 1,169,884 Vital Aguas S.A. Chile 76.389.720-6 Coca Cola del Valle NewVentures S.A Chile CLP Linear 7.50% 289,312 882,152 1,171,464 2,198,998 Envases Central S.A Chile 96.705.990-0 Coca Cola del Valle NewVentures S.A Chile CLP Linear 8.40% 565,631 1,724,833 2,290,464 235,699 Paraguay Refrescos SA Paraguay 80.003.400-7 Tetra Pack Ltda. Suc. Py Paraguay PGY Monthly 1.00% 55,952 159,680 215,632 - Transportes Polar S.A. Chile 96.928.520-7 Cons. Inmob. e InversionesLimitada Chile UF Monthly 2.89% 22,944 69,834 92,778 - Embotelladora Andina S.A Chile 91.144.000-8 Central de RestauranteAramark Ltda. Chile CLP Monthly 1.30% 20,736 62,614 83,350 - Total 5,718,484 6,013,535 The Company maintains lease agreements on forklifts, vehicles, real estate and machinery. These leases have an average life of between one and eight yearswithout including a renewal option in the contracts.57 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 63 of 87 17.4.2 Non-current liabilities for leasing agreements, non-current Maturity Debtor Entity Creditor Entity Amortization Nominal 1 year to 2 years to 3 years to 4 years to More than At Name Country Taxpayer ID Name Country Currency Type Rate 2 years 3 years 4 years 5 years 5 years 12.31.2020 CLP(000’S) CLP(000’S) CLP(000’S) CLP (000’S) CLP (000’S) CLP (000’S) Rio de Janeiro RefrescosLtda. Brazil Foreign Cogeração - Light ESCO Brazil BRL Monthly 12.28% 789,334 891,946 1,007,901 1,138,928 4,827,833 8,655,942 Rio de Janeiro RefrescosLtda. Brazil Foreign Tetra Pack| Brazil BRL Monthly 7.39% 95,856 - - - - 95,856 Rio de Janeiro RefrescosLtda. Brazil Foreign Real estate Brazil BRL Monthly 8.20% 72,906 32,980 23,547 - - 129,433 Rio de Janeiro RefrescosLtda. Brazil Foreign Leão Alimentos e BebidasLtda. Brazil BRL Monthly 6.56% 261,577 249,681 243,911 225,680 51,007 1,031,856 Embotelladora del AtlánticoS.A. Argentina Foreign Banco Comafi Argentina USD Monthly 12.00% - 20,867 - - - 20,867 Embotelladora del AtlánticoS.A. Argentina Foreign Tetra Pak SRL Argentina USD Monthly 12.00% - 249,854 - 249,854 72,874 572,582 Embotelladora del AtlánticoS.A. Argentina Foreign Real estate Argentina ARS Monthly 50.00% - 128,930 - - - 128,930 Embotelladora del AtlánticoS.A. Argentina Foreign Real estate Argentina ARS Monthly 50.00% - 95,931 - - - 95,931 Vital Aguas S.A Chile 76.572.588-7 Coca Cola del Valle NewVentures S.A Chile CLP Monthly 8.20% 1,107,140 - - - - 1,107,140 Envases Central S.A Chile 76.572.588-7 Coca Cola del Valle NewVentures S.A Chile CLP Monthly 9.00% 2,967,864 - - - - 2,967,864 Paraguay Refrescos SA Paraguay 80.003.400-7 Tetra Pack Ltda. Suc. Py Paraguay PGY Monthly 1.00% - 163,635 - - - 163,635 Transportes Polar S.A. Chile 76.413.243-2 Cons. Inmob. eInversiones Limitada Chile UF Monthly 2.89% - 193,789 - 161,551 - 355,340 Embotelladora Andina S.A Chile 76.178.360-2 Central de RestauranteAramark Ltda. Chile CLP Monthly 1.30% - 13,997 - - - 13,997 Total 15,339,373 17.4.3 Non-current liabilities for leasing agreements (previous year) Maturity Debtor Entity Creditor Entity Amortization Nominal 1 year to 2 years to 3 years to 4 years to More than At Name Country Taxpayer ID Name Country Currency Type Rate 2 years 3 years 4 years 5 years 5 years 12.31.2019 CLP(000’S) CLP(000’S) CLP(000’S) CLP (000’S) CLP (000’S) CLP (000’S) Rio de Janeiro RefrescosLtda. Brazil Foreign Cogeração - Light ESCO Brazil BRL Monthly 12.28% 948,466 1.071.766 1.211.096 1.368.538 8.101.730 12.701.596 Rio de Janeiro RefrescosLtda. Brazil Foreign Tetra Pack Brazil BRL Monthly 7.39% 271,264 111.005 - - - 382.269 Rio de Janeiro RefrescosLtda. Brazil Foreign Real estate Brazil BRL Monthly 8.20% 97,784 9.144 - - - 106.928 Rio de Janeiro RefrescosLtda. Brazil Foreign Leão Alimentos e BebidasLtda. Brazil BRL Monthly 6.56% 365,671 355.172 339.020 331.185 375.688 1.766.736 Embotelladora del AtlánticoS.A. Argentina Foreign Tetra Pak SRL Argentina USD Monthly 12.00% - 398.442 - 343.104 - 741.546 Embotelladora del AtlánticoS.A. Argentina Foreign Banco Comafi Argentina USD Monthly 12.00% - 110.924 - - - 110.924 Embotelladora del AtlánticoS.A. Argentina Foreign Real estate Argentina ARS Monthly 50.00% - 55.222 - - - 55.222 Vital Aguas S.A Chile 76.572.588-7 Coca Cola del Valle NewVentures S.A Chile CLP Monthly 8.20% 2,242,278 - - - - 2.242.278 Envases Central S.A Chile 76.572.588-7 Coca Cola del Valle NewVentures S.A Chile CLP Monthly 9.0% 4,947,745 - - - - 4.947.745 Paraguay Refrescos SA Paraguay 80.003.400-7 Tetra Pack Ltda. Suc. Py Paraguay PGY Monthly 1.00% 399,456 - - - - 399.456 Total 23.454.700 Leasing agreement liabilities not subject to financial restrictions for the reported periods.58 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 64 of 87 18 – TRADE ACCOUNTS PAYABLE AND OTHER ACCOUNTS PAYABLE Trade and other current accounts payable are detailed as follows: Classification 12.31.2020 12.31.2019 CLP (000’S) CLP (000’S) Current 230,445,809 243,700,553 Non-current 295,279 619,587 Total 230,741,088 244,320,140 Description 12.31.2020 12.31.2019 CLP (000’S) CLP (000’S) Trade accounts payable 163,361,078 172,142,472 Withholding tax 48,566,443 53,326,254 Others 18,813,567 18,851,414 Total 230,741,088 244,320,140 19 – OTHER PROVISIONS, CURRENT AND NON-CURRENT 19.1Balances The composition of provisions is as follows: Description 12.31.2020 12.31.2019 CLP (000’S) CLP (000’S) Litigation (1) 50,070,273 69,107,550 Total 50,070,273 69,107,550 Current 1,335,337 2,068,984 Non-current 48,734,936 67,038,566 Total 50,070,273 69,107,550 (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: Description (see note 23.1) 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Tax contingencies 25,543,101 38,853,059 Labor contingencies 8,688,551 10,569,754 Civil contingencies 15,838,621 19,684,737 Total 50,070,273 69,107,550 59 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 65 of 87 19.2Movements The movement of principal provisions over litigation is detailed as follows: Detail 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Opening balance as of January 1 69,107,550 62,452,526 Additional provisions 172,801 121,003 Increase (decrease) in existing provisions(*) 4,624,789 17,336,285 Payments (5,799,209) (14,977,996)Reversal for unused provision - 3,551,223 Increase (decrease) due to foreign exchange differences (18,035,657) 624,509 Total 50,070,274 69,107,550 (*) During 2019, reversal of provisions consisting of fines demanded by the Brazilian tax authority on the use of tax credits resulting from favorablesentencing to Rio de Janeiro Refrescos Ltda. which are not present in 2020. 20 – OTHER NON-FINANCIAL LIABILITIES Other current and non-current liabilities at each reporting period end are detailed as follows: Current Non-Current Description 12.31.2020 12.31.2019 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Dividends payable 25,999,055 22,639,150 - - Others (1) 2,267,675 3,863,065 21,472,048 - Total 28,266,730 26,502,215 21,472,048 - (1)Other non-current corresponds mainly to accounts payable to former shareholders of Companhia de Bebidas Ipiranga (“CBI”). See Note 6 forfurther information. 21 – EQUITY 21.1Number of shares: Number of subscribedand paid in shares with voting rights Series 2020 2019 A 473,289,301 473,289,301 B 473,281,303 473,281,303 21.1.1Equity: Subscribed and Paid-in Capital Series 2020 2019 CLP (000’s) CLP (000’s) A 135,379,504 135,379,504 B 135,358,070 135,358,070 Total 270,737,574 270,737,574 60 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 66 of 87 21.1.2Rights of each series: •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. 21.2Dividend 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. Ifthere 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 2020, the shareholders agreed to pay out of the 2019 earnings a final dividend and another additional dividend to the 30% required byChile’s Law 18,046 which are paid in May 2020 and August 2020, respectively. Pursuant to Circular Letter N° 1,945 of the Chilean Financial Market Commission (CMF) dated September 29, 2009, the Company’s Board of Directorsdecided to maintain the initial adjustments from adopting IFRS as accumulated earnings for future distribution. The dividends declared and paid per share are presented below: Periodsapproved - paid Type of dividend Dividend allocationincome CLPSeries A CLPSeries B 04.17.2019 05.30.2019 Final 2018 Results 21.50 23.65 04.17.2019 08.29.2019 Additional Accumulated Earnings 21.50 23.65 09.24.2019 10.24.2019 Interim 2019 Results 21.50 23.65 12.20.2019 01.23.2020 Interim 2019 Results 22.60 24.86 02.25.2020 05.29.2020 Final 2019 Results 26.00 28.60 02.25.2020 08.28.2020 Additional Accumulated Earnings 26.60 28.60 10.27.2020 11.24.2020 Interim 2020 Results 26.60 28.60 12.22.2020 01.29.2021 Interim 2020 Results 26.60 28.60 21.3Other Reserves The balance of other reserves includes the following: Description 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Goodwill in share exchange reserve 421,701,520 421,701,520 Translation differences reserves (517,496,486) (339,076,340)Cash flow hedge reserves (24,719,533) (14,850,683)Reserve for employee benefits actuarial gains or losses (4,663,193) (2,230,752)Legal and statutory reserves 5,435,538 5,435,538 Other 6,014,568 6,014,568 Total (113,727,586) 76,993,851 21.3.1Goodwill in share exchange reserve 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 ofthe paid capital of Embotelladoras Coca-Cola Polar S.A., which was finally the value of the capital increase notarized in legal terms.61 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 67 of 87 21.3.2Cash 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. Whencontracts are expired, these reserves are adjusted and recognized in the income statement in the corresponding period (see Note 22). 21.3.3Reserve 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 comprehensiveincome. 21.3.4Legal 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 orretained earnings under IFRS. This amount totaled CLP 5,435,538 thousand as of December 31, 2009. 21.3.5Foreign currency translation reserves This corresponds to the conversion of the financial statements of foreign subsidiaries whose functional currency is different from the presentation currency ofthe Consolidated Financial Statements. Additionally, exchange differences between accounts receivable kept by the companies in Chile with foreignsubsidiaries are presented in this account, which have been treated as investment equivalents accounted for using the equity method. Translation reserves aredetailed as follows: Details 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Brazil (203,657,392) (98,794,118)Argentina (291,332,402) (246,415,922)Paraguay (22,506,692) 6,133,700 Total (517,496,486) (339,076,340) The movement of this reserve for the periods ended on the dates indicated below, is detailed as follows: Details 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Brazil (104,863,274) 15,386,079 Argentina (44,916,480) (45,297,742)Paraguay (28,640,392) (2,490,149)Total (178,420,146) (32,401,812)62 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 68 of 87 21.4Non-controlling interests This is the recognition of the portion of equity and income from subsidiaries owned by third parties. This account is detailed as follows: Non-controlling interests Ownership interest % Shareholders’ Equity Income December December December December Description 2020 2019 2020 2019 2020 2019 CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Embotelladora del Atlántico S.A. 0.0171 0.0171 23,662 26,342 2,312 4,183 Andina Empaques Argentina S.A. 0.0209 0.0209 2,349 2,290 244 409 Paraguay Refrescos S.A. 2.1697 2.1697 5,037,332 5,368,470 791,576 622,188 Vital S.A. 35.0000 35.0000 8,176,999 7,904,741 285,269 263,442 Vital Aguas S.A. 33.5000 33.5000 1,912,023 1,803,884 109,110 105,870 Envases Central S.A. 40.7300 40.7300 5,227,112 5,148,531 (70,996) 528,205 Total 20,379,477 20,254,258 1,117,515 1,524,297 21.5Earnings 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 averagenumber 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 12.31.2020 SERIES A SERIES B TOTAL Earnings attributable to shareholders (CLP 000’s) 58,095,636 63,904,169 121,999,805 Average weighted number of shares 473,289,301 473,281,303 946,570,604 Earnings per basic and diluted share (in CLP) 122.75 135.02 128.89 Earnings per share 12.31.2019 SERIES A SERIES B TOTAL Earnings attributable to shareholders (CLP 000’s) 82,725,427 90,996,501 173,721,928 Average weighted number of shares 473,289,301 473,281,303 946,570,604 Earnings per basic and diluted share (in CLP) 174.79 192.27 183.53 22 – DERIVATIVE ASSETS AND LIABILITIES 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 ratecorresponding to the currencies and rates of the transaction. On the other hand, the fair value of forward currency contracts is calculated in reference to current forward exchange rates for contracts with similar maturityprofiles. As of December 31, 2020 and 2019, the Company held the following derivative instruments:63 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 69 of 87 22.1Derivatives accounted for as cash flow hedges Cross Currency Swaps associated with Local Bonds (Chile) At the closing date of these financial statements, the Company maintains derivative contracts to secure part of its bond liabilities issued in Unidades deFomento totaling UF 10,148,159, to convert these obligations to Chilean pesos. These contracts were valued at their fair values, yielding a net asset of CLP 6,299,116 thousand at the closing date of the financial statements which ispresented under other non-current financial assets. The expiration date of derivative contracts is distributed in the years 2026, 2031, 2034 and 2035. Cross Currency Swaps associated with International Bonds (US) At the closing date of these financial statements, the Company maintains derivative contracts to secure US Dollar public bond obligations of USD 360million due in 2023, to convert such obligations into Brazilian Real. In addition, derivative contracts amounting to USD 300 million are held to convert suchobligation into Unidades de Fomento (UF - CLP re-adjustable by the Consumer Price Index) due in 2050. The valuation of the first contract at its fair valuesgenerates an asset of CLP 144,684,179 thousand as of December 31, 2020 (CLP 98,918,457 thousand as of December 31, 2019), while the valuation of thesecond contract at its fair values generates a liability of CLP 51,568,854 thousand at the closing date of these financial statements. The amount of exchange differences recognized in the statement of income related to financial liabilities in U.S. dollars and are absorbed by the amountsrecognized under comprehensive income. 22.2 Forward currency transactions expected to be very likely During 2020 and 2019, Embotelladora Andina entered into forward contracts to ensure the exchange rate on future commodity purchasing needs for its 4operations, i.e. closing USD/ARS, USD/BRL, USD/CLP and USD/GYP forward instruments. As of December 31, 2020, outstanding contracts amount toUSD 54.0 million (USD 46.9 million as of December 31, 2019). Futures contracts that ensure prices of future raw materials have not been designated as hedge agreements, since they do not fulfill IFRS documentationrequirements, whereby its effects on variations in fair value are accounted for directly under other comprehensive income. Fair value hierarchy At the closing date of these financial statements, the Company held assets for derivative contracts for CLP 150,983,295 thousand (CLP 99,235,662 thousandas of December 31, 2019) and held liabilities for derivative contracts for CLP 52,786,176 thousand (CLP 374,576 thousand as of December 31, 2019). Thosecontracts covering existing items have been classified in the same category of hedged, the net amount of derivative contracts by concepts covering forecasteditems have been classified in financial assets and financial liabilities. All the derivative contracts are carried at fair value in the consolidated statement offinancial position.64 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 70 of 87 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 liabilitiesLevel 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 usinglevel 2. Fair Value Measurement at December 31, 2020 Quoted prices inactive markets for identical assetsor liabilities Observable market data Unobservablemarket data (Level 1) (Level 2) (Level 3) Total CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) Assets Current assets Other current financial assets - - - - Other non-current financial assets - 150,983,295 - 150,983,295 Total assets - 150,983,295 - 150,983,295 Liabilities Current liabilities Other current financial liabilities - 1,217,322 - 1,217,322 Other non-current financial liabilities - 51,568,854 - 51,568,854 Total liabilities - 52,786,176 - 52,786,176 Fair Value Measurement at December 31, 2019 Quoted prices inactive marketsfor identical assetsor liabilities Observablemarket data Unobservable market data (Level 1) (Level 2) (Level 3) Total CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Assets Current assets Other current financial assets - 317.205 317.205 Other non-current financial assets - 98.918.457 - 98.918.457 Total assets - 99.235.662 - 99.235.662 Liabilities Current liabilities Other current financial liabilities - 374.576 - 374.576 Total liabilities - 374.576 - 374.576 65 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 71 of 87 23 – LITIGATION AND CONTINGENCIES 23.1Lawsuits 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 inmaterial 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 lossbecause of these lawsuits, totaling CLP 778,065 thousand (CLP 942,173 thousand in 2019). Management considers it unlikely that non-provisionedcontingencies 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 295,856 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 lossbecause of these lawsuits, totaling CLP 47,945,921 thousand (CLP 66,070,162 thousand in 2019). 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 deJaneiro Refrescos Ltda. maintains Deposit in courts and assets given in pledge to secure the compliance of certain processes, irrespective of whetherthese have been classified as a possible, probable or remote. The amounts deposited or pledged as legal guarantees As of December 31, 2020 and 2019 ,amounted to CLP 21,054,433 thousand and CLP 32,166,823 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 havealready been released in exchange for guarantee insurance and bond letters for BRL 1,525,587,904, with different Financial Institutions and InsuranceCompanies in Brazil, these entities receive an annual commission fee of 0.79%. and become responsible of fulfilling obligations with the Brazilian taxauthorities should any trial result against Rio de Janeiro Refrescos Ltda. Additionally, if the warranty and bail letters are executed, Rio de JaneiroRefrescos Ltda. promises to reimburse to the financial institutions and Insurance Companies any amounts disbursed by them to the Braziliangovernment. 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) totaling BRL 2,471,137,390 at December 31, 2020. The Company does not share the position of the Brazilian tax authority in these procedures and considers that it was entitled to claim IPI tax creditsin 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 andhas not recorded a provision on these matters.66 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 72 of 87 Notwithstanding the above, the IFRS related to business combination in terms of distribution of the purchase price establish that contingencies mustbe 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 begenerated. As a result of the acquisition of Companhia de Bebidas Ipiranga in 2013 and pursuant to this criterion and although there arecontingencies listed only as possible for BRL 701,660,858 (amount includes adjustments for current lawsuits) a start provision has been generatedin the accounting of the business combination for BRL 139,596,221 equivalent to CLP 19,098,159 thousand. b)Other tax contingencies. They refer to ICMS-SP tax administrative processes that challenge the credits derived from the acquisition of tax-exempt products acquired by theCompany from a supplier located in the Manaus Free Zone. The total amount is BRL 409,075,280 being assessed by external attorneys as a remoteloss, so it has no accounting provision. The company was challenged by the federal tax authority for tax deductibility of a portion of goodwill in the 2014-2016 period arising from theacquisition of Companhia de Bebidas Ipiranga. The tax authority understands that the entity that acquired Companhia de Bebidas Ipiranga isEmbotelladora Andina and not Rio de Janeiro Refrescos Ltda. In the view of external lawyers, such a statement is erroneous, classifying it as apossible loss. The value of this process is BRL 463,613,817, as of December 31, 2020. 3)Embotelladora Andina S.A. and its Chilean subsidiaries face labor, tax, civil and trade lawsuits. Accounting provisions have been made for thecontingency of a probable loss because of these lawsuits, totaling CLP 1,300,587 thousand (CLP 2,065,496 thousand in 2019). Management considers itis 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 ofthese lawsuits amounting to CLP 34,747 thousand (CLP 3,488 thousand in 2019). Management considers it is unlikely that non-provisionedcontingencies will affect income and equity of the Company, in the opinion of its legal advisors.67 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 73 of 87 23.2Direct 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 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Transportes San Martin Embotelladora Andina S.A. Parent Company Cash Trade accounts and otheraccount receivable 2,907 2,805 Cooperativa Agricola PisqueraElqui Limitada Embotelladora Andina S.A. Parent Company Cash Other non-currentfinancial assets 1,216,865 1,216,865 Inmob. e invers. supetar Ltda. Transportes Polar Subsidiary Cash Other non-current non-financial assets 4,579 4,579 María Lobos Jamet Transportes Polar Subsidiary Cash Other non-current non-financial assets 2,566 2,565 Bodega San Francisco Transportes Polar Subsidiary Cash Other non-current non-financial assets 8,606 6,483 Workers Claims Rio de Janeiro Refrescos Ltda. Subsidiary Judicial deposit Other non-current non-financial assets 5,329,947 6,600,863 Civil and tax claims Rio de Janeiro Refrescos Ltda. Subsidiary Judicial deposit Other non-current non-financial assets 5,882,379 12,186,432 Governmental institutions Rio de Janeiro Refrescos Ltda. Subsidiary Plant and Equipment Property, plant &equipment 9,842,108 13,379,610 Distribuidora Baraldo S.H. Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 169 250 Acuña Gomez Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 253 375 Nicanor López Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 181 268 Labarda Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 3 5 Municipalidad Bariloche Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets - 36,313 Municipalidad San AntonioOeste Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 18,650 27,598 Municipalidad Carlos Casares Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 754 1,116 Municipalidad Chivilcoy Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 116,641 172,602 Others Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 36 53 Granada Maximiliano Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 1,521 2,250 Cicsa Embotelladora del Atlántico S.A. Subsidiary Cash deposit Other current non-financial assets 2,114 3,128 Several lessors Embotelladora del Atlántico S.A. Subsidiary Cash deposit Other current non-financial assets 13,140 15,289 Aduana de EZEIZA Embotelladora del Atlántico S.A. Subsidiary Cash deposit Other current non-financial assets 286 422 Municipalidad de Junin Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 243 360 Almada Jorge Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 2,064 3,054 Mirgoni Marano Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 51 76 Farias Matias Luis Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 947 1,401 Temas Industriales SA -Embargo General de Fondos Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 156,759 DBC SA C CERVECERIAARGENTINA SAISEMBECK Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 19,009 28,129 Coto Cicsa Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 3,379 5,001 Cencosud Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 2,112 3,125 Mariano Mirgoni Embotelladora del Atlántico S.A. Subsidiary Judicial deposit Other non-current non-financial assets 105,936 - Marcus A.Peña Paraguay Refrescos Subsidiary Property Property, plant &equipment 4,011 3,955 Mauricio J Cordero C Paraguay Refrescos Subsidiary Property Property, plant &equipment 814 917 José Ruoti Maltese Paraguay Refrescos Subsidiary Property Property, plant &equipment 655 738 Alejandro Galeano Paraguay Refrescos Subsidiary Property Property, plant &equipment 1,132 1,275 Ana Maria Mazó Paraguay Refrescos Subsidiary Property Property, plant &equipment 1,077 1,213 68 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 74 of 87 Guarantees provided without obligation of assets included in the financial statements: Committed assets Amounts involved Guaranty Creditor Debtor name Relationship Guaranty Type 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Labor procedures Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Legal proceeding 1,527,347 2,819,285 Administrative procedures Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Legal proceeding 8,860,598 10,432,633 Federal Government Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Legal proceeding 147,841,989 138,635,908 State Government Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Legal proceeding 46,031,398 54,803,911 Sorocaba Refrescos Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Guarantor 2,736,159 3,715,186 Others Rio de Janeiro Refrescos Ltda. Subsidiary Guaranty receipt Legal proceeding 1,715,099 3,757,062 Aduana de EZEIZA Embotelladora del Atlántico S.A. Subsidiary Surety insurance Faithful compliance ofcontract 3,150 673,854 Aduana de EZEIZA Andina Empaques ArgentinaS.A. Subsidiary Surety insurance Faithful compliance ofcontract 143,615 506,623 69 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 75 of 87 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). TheCompany’s global risk management program focuses on the uncertainty of financial markets and seeks to minimize potential adverse effects on theperformance of the Company. The Company uses derivatives to hedge certain risks. A description of the primary policies established by the Company tomanage financial risks are provided below: Interest Rate Risk As of the closing date of these financial statements, the Company maintains all its debt liabilities at a fixed rate as to avoid fluctuations in financial expensesresulting from tax rate increases. The Company’s greatest indebtedness corresponds to six contracts for own issued Chilean local bonds at a fixed rate for UF 15.85 million denominated inUF (“UF”), debt indexed to inflation in Chile (Company sales are correlated with the UF variation), of which five of these Local Bonds have beenredenominated through Cross Currency Swaps to Chilean Pesos (CLP). On the other hand, there is also the Company’s indebtedness on the international market through two 144A/RegS Bonds at a fixed rate, one for USD 365million, denominated in dollars, and practically 100% of which has been re-denominated to BRL through Cross Currency Swaps, and another one for USD300 million denominated in USD, and practically 100% of which has been re-denominated to Unidades de Fomento (UF) 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 chainsin domestic markets; and the financial investments held with banks and financial institutions, such as time deposits, mutual funds and derivative financialinstruments. 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 hasa wide base of more than 283 thousand clients implying a high level of atomization of accounts receivable, which are subject to policies, procedures andcontrols established by the Company. In accordance with such policies, credits must be based objectively, non-discretionary and uniformly granted to allclients of a same segment and channel, provided these will allow generating economic benefits to the Company. The credit limit is checked periodicallyconsidering payment behavior. Trade accounts receivable pending of payment are monitored on a monthly basis. i.Sale Interruption In accordance with Corporate Credit Policy, the interruption of sale must be within the following framework: when a customer has outstanding debtsfor an amount greater than USD 250,000, and over 60 days expired, sale is suspended. The General Manager in conjunction with the Finance andAdministration Manager authorize exceptions to this rule, and if the outstanding debt should exceed USD 1,000,000, and in order to continueoperating with that client, the authorization of the Chief Financial Officer is required. Notwithstanding the foregoing, each operation can define anamount lower than USD 250,000 according to the country’s reality.70 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 76 of 87 ii.Impairment The impairment recognition policy establishes the following criteria for provisions: 30% is provisioned for 31 to 60 days overdue, 60% between 60and 91 days, 90% between 91 and 120 days overdue and 100% for more than 120 days. Exemption of the calculation of global impairment is givento credits whose delays in the payment correspond to accounts disputed with the customer whose nature is known and where all necessarydocumentation for collection is available, therefore, there is no uncertainty on recovering them. However, these accounts also have an impairmentprovision 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 ofeach subsidiary must approve supplier warranties that the Company receives for prepayments before signing the respective service contract. In thecase of domestic suppliers, a warranty ballot (or the instrument existing in the country) shall be required, in favor of Andina executable in therespective country, non-endorsable, payable on demand or upon presentation and its validity will depend on the term of the contract. In the case offoreign 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 inthe country where the transaction is done, a direct bank warranty will be required. Subsidiaries can define the best way of safeguarding theCompany’s assets for prepayments under USD 25,000. iv.Guarantees In Chile, we have insurance with Compañía de Seguros de Crédito Continental S.A. (AA rating –according to Fitch Chile and Humphreys ratingagencies) 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 anddistributors in the case of trade accounts receivables. In the case of other debtors, different types of guarantees are required according to the natureof 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 thetypes of instruments as well as the institutions and degree of concentration. The companies of the group can invest in: i.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 lessthan 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, fixedrate Tit BCRA, negotiable obligations, Over Night, etc.) in all those counter-parties that have a rating greater than or equal to AA-(S&P) orequivalent, Type 1 Pacts and Mutual Funds, with a rating greater than or equal to AA+ (S&P) or equivalent.71 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 77 of 87 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 ArgentinePeso) to the Parent Company’s reporting currency (Chilean Peso). Appreciation or devaluation of the Chilean Peso with respect to the functional currenciesof each country, originates decreases and increases in equity, respectively. The Company does not hedge this risk. a.1Investment in Argentina As of the closing date of these financial statements, the Company maintains a net investment of CLP 145,395,883 thousand. in Argentina, composedby the recognition of assets amounting to CLP 215,017,770 thousand and liabilities amounting to CLP 69,621,887 thousand. These investmentsaccounted for 19.9% of the Company’s consolidated sales revenues As of December 31, 2020, the Argentine peso appreciated by 32.4% 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 fromthe operation in Argentina of CLP 239,096 thousand and a decrease in equity of CLP 5,148,794 thousand. a.2Investment in Brazil As of the closing date of these financial statements, the Company maintains a net investment of CLP 231,787,304 thousand in Brazil, composed bythe recognition of assets amounting to CLP 793,157,414 thousand and liabilities amounting to CLP 561,370,108 thousand. These investmentsaccounted for 29.9% of the Company’s consolidated sales revenues. As of December 31, 2020, the Brazilian Real appreciated by 26.4% 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 fromthe operation in Brazil of CLP 2,506,240 thousand and a decrease in equity of CLP 11,495,651 thousand. a.3Investment in Paraguay As of the closing date of these financial statements, the Company maintains a net investment of CLP 232,163,091 thousand in Paraguay, composedby the recognition of assets amounting to CLP 270,899,700 thousand and liabilities amounting to CLP 38,736,609 thousand. These investmentsaccounted for 7.9% of the Company’s consolidated sales revenues. As of December 31, 2020, the Paraguayan Guarani appreciated by 11.2% with respect to the Chilean peso.72 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 78 of 87 If the exchange rate of the Paraguayan Guaraní devalued by 5% with respect to the Chilean Peso, the Company would have lower income from theoperations in Paraguay of CLP 1,737,265 thousand and a decrease in equity of CLP 10,462,776. 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 countrygenerates a variation in the valuation of these obligations, with consequent effect on results. 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 thanthe functional currency of the subsidiary. Changes in the value of costs or investments can be generated through time, depending on the volatility of theexchange rate. In order to minimize this risk, the Company maintains a currency hedging policy stipulating that it is necessary to enter into foreign currency derivativescontracts to lessen the effect of the exchange rate over cash expenditures expressed in US dollars, corresponding mainly to payment to suppliers of rawmaterials 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 toproduce beverages and containers, which together, account for 35% to 40% of operating costs. Procurement and anticipated purchase contracts are madefrequently to minimize and/or stabilize this risk. To minimize this risk or stabilize often supply contracts and anticipated purchases are made when marketconditions 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 ouroperations. This cash flow has historically been sufficient to cover the investments necessary for the normal course of our business, as well as the distributionof dividends approved by the General Shareholders’ Meeting. Should additional funding be required for future geographic expansion or other needs, themain sources of financing to consider are: (i) debt offerings in the Chilean and foreign capital markets (ii) borrowings from commercial banks, bothinternationally and in the local markets where the Company operates; and (iii) public equity offerings73 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 79 of 87 The following table presents an analysis of the Company’s committed maturities for liability payments throughout the coming years, with interest calculatedfor each period: Payments on the year of maturity Item 1 year More than 1 up to 2 More than 2 up to 3 More than 3 up to 4 More than 5 CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) Bank debt 775,684 849,879 81,111 81,111 4,081,333 Bonds payable (1) 72,133,209 11,977,274 12,498,126 272,549,586 628,943,928 Lease obligations 5,718,484 5,129,266 2,207,021 7,805,284 197,802 Contractual obligations 8,426,144 83,368,375 13,446,852 9,839,970 9,714,261 Total 87,053,521 101,324,794 28,233,110 290,275,951 642,937,324 (1)Includes Mark-to-Market liability valuations for bond hedge derivatives COVID-19-Related Risk As a result of the impact that COVID-19 is having in different countries around the world, including its more recent outbreak in the countries where weoperate, Coca-Cola Andina has taken measures necessary to protect its employees and to ensure the continuity of the Company’s operations. Among the measures it has adopted to protect its employees are the following:•campaign to educate our employees on actions to be taken to avoid the spread of COVID-19;•sending home any employee that has been exposed to the virus;•implementation of additional cleaning protocols for our facilities;•modifying certain work practices and activities, keeping customer service:-home office has been implemented for those employees whose work can be performed remotely-domestic and international traveling has been canceled•providing personal protective equipment to all our employees who need to keep working at plants and distribution centers, as well as to truckdrivers and assistants, including face masks and sanitizers. Since mid-March, governments of the countries where the Company operates, have adopted several measures to reduce infection rates of COVID-19. Amongthese measures are, the closing of schools, universities, shopping centers, restaurants and bars, prohibiting social gathering events, issuing stay-at-homeorders and establishing quarantine requirements, imposing additional sanitary requirements on exports and imports, and limiting international travel andclosing borders. Governments in the countries where we operate have also announced economic stimulus programs for families and businesses, including inArgentina a temporary restriction on workforce reductions. To date, none of our plants has had to suspend their operations. As a result of the COVID-19 pandemic and the restrictions imposed by the authorities in the four countries where we operate, we have seen high volatility inour sales across channels. During the fourth quarter, in consolidated terms, we continue to see a reduction in our sales volumes on the on-premise channel(albeit to a lesser extent than in previous quarters), consisting mainly of restaurants and bars, which are already able to operate, but with capacity restrictions.We have also observed that volume grows again in supermarkets, albeit slightly and that the traditional and wholesale channels are the ones that continue todrive volume growth. Because the pandemic and the actions taken by governments are changing very rapidly, we believe it is too early to draw conclusionsabout changes in the long-term consumption pattern, and how these may affect our results of operations and financial results in the future.74 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 80 of 87 Due to uncertainties regarding the COVID-19 pandemic and the above-mentioned government restrictions, including how long these conditions may persist,and the effects they will have on our sales volumes and our business in general, we cannot accurately predict the ultimate financial impact from these newtrends. In any event, we estimate that we will not face liquidity constraints, or difficulties in complying with covenants under our debt instruments. We do notanticipate any significant provisions or impairments at this time. Finally, our investment plan for 2021 will return to precrisis levels, i.e. betweenapproximately USD$ 160 – USD 180 million. Our investment plans are constantly monitored, and we cannot assure that we will completely fulfill it if thereis a stronger flare-up of this health situation in the countries where we operate or for other unforeseen circumstance. 25 – EXPENSES BY NATURE Other expenses by nature are: 01.01.2020 01.01.2019 Description 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Direct production costs 862,383,664 877,716,948 Employee expenses 252,337,262 273,123,010 Transportation and distribution 126,683,586 138,486,337 Advertising 6,917,300 27,113,322 Depreciation and amortization 110,920,517 111,087,284 Repairs and maintenance 25,971,485 30,528,180 Other expenses 73,455,798 83,188,784 Total (1) 1,458,669,612 1,541,243,865 (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: 01.01.2019 01.01.2019 Description 12.31.2019 12.31.2019 CLP (000’s) CLP (000’s) Gain on disposal of Property, plant and equipment 16,005 265,514 Recovery of PIS and COFINS credit(1) 6,744,341 40,281,550 Others 1,595,952 400,094 Total 8,356,298 40,947,158 (1) See Note 6 for further information on recovery.75 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 81 of 87 27 – OTHER EXPENSES BY FUNCTION Other expenses by function are detailed as follows: 01.01.2020 01.01.2019 Description 12.31.2020 12.31.2019 CLP (000’S) CLP (000’S) Contingencies and non-operating fees 1,081,812 17,690,171 Tax on bank debits and other expenses 3,367,615 4,356,973 Write-offs, disposal and loss of Property, plant and equipment 7,972,976 2,978,194 Others 5,007,853 1,157,509 Total 17.430.256 26,182,847 28 – FINANCIAL INCOME AND EXPENSES Financial income and expenses are detailed as follows: a)Financial income 01.01.2020 01.01.2019 Description 12.31.2020 12.31.2019 CLP (000’S) CLP (000’S) Interest income 7,931,055 3,249,550 Guaranty restatement Ipiranga acquisition 7,674 27,219 Recovery of PIS and COFINS credit(1) 5,124,810 39,780,620 Other financial income 1,882,340 2,098,402 Total 14,945,879 45,155,791 (1) See Note 6 for further information on recovery. b)Financial costs 01.01.2020 01.01.2019 Description 12.31.2020 12.31.2019 CLP (000’S) CLP (000’S) Bond interest 45,927,500 38,153,036 Bank loan interest 1,186,731 1,337,670 Other financial costs 7,658,606 6,718,314 Total 54,772,837 46,209,020 29 – OTHER (LOSSES) GAINS Other (losses) gains are detailed as follows: 01.01.2020 01.01.2019 Description 12.31.2020 12.31.2019 CLP (000’S) CLP (000’S) Other (losses) gains 287 2,876 Total 287 2,876 76 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 82 of 87 30. LOCAL AND FOREIGN CURRENCY Local and foreign currency balances are the following: CURRENT ASSETS 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Cash and cash equivalents 309,530,699 157,567,986 USD 21,332,268 16,732,278 EUR 223,449 9,723 CLP 201,936,140 78,421,936 BRL 49,528,425 46,189,977 ARS 14,821,502 3,830,199 PGY 21,688,915 12,383,873 Other current financial assets 140,304,853 347,278 CLP 139,449,882 275,407 BRL 10,171 13,498 ARS 844,800 16,575 PGY - 41,798 Other current non-financial assets 13,374,381 16,188,965 USD 1,723,989 893,571 EUR 621,516 615,636 UF 493,546 410,203 CLP 1,900,762 5,642,901 BRL 1,300,995 1,738,793 ARS 6,052,294 3,918,728 PGY 1,281,279 2,969,133 Trade accounts and other accounts receivable 194,021,253 191,077,588 USD 901,930 1,431,079 EUR - UF 65,250 453,469 CLP 105,340,179 83,328,449 BRL 67,423,832 79,586,461 ARS 14,928,954 19,088,164 PGY 5,361,108 7,189,966 Accounts receivable related entities 11,875,408 10,835,768 USD 45,644 CLP 6,965,894 9,157,922 BRL 41,878 - ARS 4,867,636 1,632,202 Inventories 127,972,650 147,641,224 USD - 6,027,076 CLP 54,112,760 48,320,784 BRL 31,446,180 43,820,564 ARS 32,214,119 34,262,914 PGY 10,199,591 15,209,886 Current tax assets 218,473 9,815,294 CLP 218,473 9,815,294 BRL - - ARS - - Total current assets 797,297,717 533,474,103 USD 23,958,187 25,129,648 EUR 844,965 625,359 UF 558,796 863,672 CLP 509,924,089 234,962,693 BRL 149,751,481 171,349,293 ARS 73,729,306 62,748,782 PGY 38,530,893 37,794,656 77 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 83 of 87 NON-CURRENT ASSETS 12.31.2020 12.31.2019 CLP (000’s) CLP (000’s) Other non-current financial assets. 162,013,278 110,784,311 UF 7,515,981 1,216,865 BRL 144,684,180 98,918,457 ARS 9,813,117 10,648,989 Other non-current non-financial assets 90,242,672 125,636,150 UF 338,014 318,533 CLP 47,530 47,531 BRL 88,001,852 122,922,979 ARS 1,825,631 2,223,600 PGY 29,645 123,507 Accounts receivable, non-current 73,862 523,769 UF 32,219 465,371 ARS 1,211 636 PGY 40,432 57,762 Accounts receivable related entities, non-current 138.346 283,118 CLP 138,346 283,118 Investments accounted for using the equity method 87.956.354 99,866,733 CLP 50,628,307 49,703,673 BRL 37,328,047 50,163,060 Intangible assets other than goodwill 604,514,165 675,075,375 USD 3,959,421 3,959,421 CLP 306,202,181 307,324,953 BRL 139,166,117 189,240,893 ARS 2,591,026 2,708,445 PGY 152,595,420 171,841,663 Goodwill 98,325,593 121,221,661 CLP 9,523,767 9,523,767 BRL 54,980,669 74,653,328 ARS 27,343,642 29,750,238 PGY 6,477,515 7,294,328 Property, plant and equipment 605,576,545 722,718,863 CLP 255,963,912 282,861,852 BRL 179,286,945 251,080,517 ARS 103,227,548 119,784,304 PGY 67,098,140 68,992,190 Deferred tax assets 1,925,870 1,364,340 CLP 1,925,870 1,364,340 Total non-current assets 1,650,766,685 1,857,474,320 USD 3,959,421 3,959,421 UF 7,886,214 2,000,769 CLP 624,429,913 651,109,234 BRL 643,447,810 786,979,234 ARS 144,802,175 165,116,212 PGY 226,241,152 248,309,450 78 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 84 of 87 12.31.2020 12.31.2019 CURRENT LIABILITIES Up to 90 days 90 days to 1year Total Up to 90 days 90 days to 1year Total CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Other financial liabilities, current 9,270,838 29,295,886 38,566,724 9,719,894 30,873,984 40,593,878 USD 72,655 6,704,245 6,776,900 55,388 3,147,441 3,202,829 UF 7,799,637 5,272,547 13,072,184 7,535,228 11,836,936 19,372,164 CLP 908,790 13,489,310 14,398,100 842,221 11,700,946 12,543,167 BRL 362,854 1,245,940 1,608,794 1,153,072 2,119,141 3,272,213 ARS 70,950 1,578,082 1,649,032 75,060 704,921 779,981 PGY 55,952 1,005,762 1,061,714 58,925 1,364,599 1,423,524 Trade accounts and other accounts payable,current 227,503,270 2,942,539 230,445,809 228,259,216 15,441,337 243,700,553 USD 8,972,065 - 8,972,065 10,049,567 - 10,049,567 EUR 1,622,411 - 1,622,411 2,024,156 - 2,024,156 UF - - - 2,044,871 - 2,044,871 CLP 108,670,085 2,942,539 111,612,624 84,602,547 15,441,337 100,043,884 BRL 58,136,480 - 58,136,480 75,051,089 - 75,051,089 ARS 33,511,747 - 33,511,747 40,826,489 - 40,826,489 PGY 15,878,527 - 15,878,527 13,660,497 - 13,660,497 Other currencies 711,955 - 711,955 - - - Accounts payable related entities, current 39,541,968 - 39,541,968 53,637,601 - 53,637,601 CLP 23,884,687 - 23,884,687 28,471,399 - 28,471,399 BRL 10,809,085 - 10,809,085 19,279,132 - 19,279,132 ARS 4,848,196 - 4,848,196 5,887,070 - 5,887,070 Other current provisions 805,842 529,495 1,335,337 1,637,799 431,185 2,068,984 CLP 805,842 494,748 1,300,590 1,637,799 427,697 2,065,496 PGY - 34,747 34,747 - 3,488 3,488 Tax liabilities, current 4,590,876 4,237,723 8,828,599 3,097,223 3,665,044 6,762,267 CLP 173,771 3,414,859 3,588,630 896,975 - 896,975 BRL 4,249,909 - 4,249,909 2,107,381 - 2,107,381 ARS 167,196 439,641 606,837 92,867 3,446,054 3,538,921 PGY - 383,223 383,223 - 218,990 218,990 Employee benefits current provisions 17,027,427 14,043,592 31,071,019 26,513,813 11,879,041 38,392,854 CLP 1,168,973 5,799,389 6,968,362 1,241,603 5,509,351 6,750,954 BRL 15,325,256 - 15,325,256 20,681,694 - 20,681,694 ARS 533,198 6,701,756 7,234,954 4,590,516 5,260,142 9,850,658 PGY - 1,542,447 1,542,447 - 1,109,548 1,109,548 Other current non-financial liabilities 620,609 27,646,121 28,266,730 328,441 26,173,774 26,502,215 CLP 598,769 27,551,000 28,149,769 327,847 26,064,658 26,392,505 ARS 21,840 - 21,840 594 5,286 5,880 PGY - 95,121 95,121 - 103,830 103,830 Total current liabilities 299,360,830 78,695,356 378,056,186 323,193,987 88,464,365 411,658,352 USD 9,044,720 6,704,245 15,748,965 10,104,955 3,147,441 13,252,396 EUR 1,622,411 - 1,622,411 2,024,156 - 2,024,156 UF 7,799,637 5,272,547 13,072,184 9,580,099 11,836,936 21,417,035 CLP 136,210,917 53,691,845 189,902,762 118,020,391 59,143,989 177,164,380 BRL 88,883,584 1,245,940 90,129,524 118,272,368 2,119,141 120,391,509 ARS 39,153,127 8,719,479 47,872,606 51,472,596 9,416,403 60,888,999 PGY 15,934,479 3,061,300 18,995,779 13,719,422 2,800,455 16,519,877 Other currencies 711,955 - 711,955 - - - 79 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 85 of 87 12.31.2020 12.31.2019 NON CURRENTLIABILITIES More than 1 upto 3 years More than 3 upto 5 years More than 5years Total More than 1up to 3 years More than 3up to 5 years More than 5years Total CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) CLP (000’S) Other non-current financialliabilities 31,811,687 279,600,958 678,416,924 989,829,569 34,794,568 299,661,490 408,870,999 743,327,057 USD 366,652 259,746,604 207,280,189 467,393,445 509,366 271,700,335 - 272,209,701 UF 24,669,188 13,214,387 414,689,041 452,572,616 22,584,954 24,627,105 400,393,581 447,605,640 CLP 4,089,001 4,000,000 51,568,854 59,657,855 7,926,056 - - 7,926,056 BRL 2,394,281 2,639,967 4,878,840 9,913,088 3,319,514 3,334,050 8,477,418 15,130,982 ARS 128,930 - - 128,930 55,222 - - 55,222 PGY 163,635 - - 163,635 399,456 - - 399,456 Accounts payable, non-current 295,279 - - 295,279 619,587 - - 619,587 CLP 293,176 - - 293,176 618,509 - - 618,509 ARS 2,103 - - 2,103 1,078 - - 1,078 Accounts payable relatedcompanies 10,790,089 - - 10,790,089 19,777,812 - - 19,777,812 BRL 10,790,089 - - 10,790,089 19,777,812 - - 19,777,812 Other non-current provisions 789,016 47,945,920 - 48,734,936 968,404 66,070,162 - 67,038,566 BRL - 47,945,920 - 47,945,920 - 66,070,162 - 66,070,162 ARS 789,016 - - 789,016 968,404 - - 968,404 Deferred tax liabilities 10,677,151 38,508,424 104,483,972 153,669,547 12,834,788 49,848,536 106,766,423 169,449,747 UF - - - - - - 1,298,050 1,298,050 CLP 1,604,289 1,070,325 90,781,152 93,455,766 1,449,404 181,418 90,271,026 91,901,848 BRL - 37,438,099 - 37,438,099 - 49,667,118 - 49,667,118 ARS 9,072,862 - - 9,072,862 11,385,384 - - 11,385,384 PGY - - 13,702,820 13,702,820 - - 15,197,347 15,197,347 Employee benefits non-currentprovisions 911.873 145,165 12,578,520 13,635,558 1,114,051 148,954 8,910,349 10,173,354 CLP 378,733 145,165 12,578,520 13,102,418 461,587 148,954 8,910,349 9,520,890 ARS - - - - 88,090 - - 88,090 PGY 533,140 - - 533,140 564,374 - - 564,374 Other non-financial liabilities 35,315 21,436,733 - 21,472,048 - - - - BRL - 21,436,733 - 21,436,733 - - - - ARS 35,315 - - 35,315 - - - - Other non-financial liabilities 20,597 - - 20,597 - - - - CLP 20,597 - - 20,597 - - - - Total non-current liabilities 55,331,007 387,637,200 795,479,416 1,238,447,623 70,109,210 415,729,142 524,547,771 1,010,386,123 USD 366,652 259,746,604 207,280,189 467,393,445 509,366 271,700,335 - 272,209,701 UF 24,669,188 13,214,387 414,689,041 452,572,616 22,584,954 24,627,105 401,691,631 448,903,690 CLP 6,385,796 5,215,490 154,928,526 166,529,812 10,455,556 330,372 99,181,375 109,967,303 BRL 13,184,370 109,460,719 4,878,840 127,523,929 23,097,326 119,071,330 8,477,418 150,646,074 ARS 10,028,226 - - 10,028,226 12,498,178 - - 12,498,178 PGY 696,775 - 13,702,820 14,399,595 963,830 - 15,197,347 16,161,177 80 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 86 of 87 31 – THE ENVIRONMENT The Company has made disbursements 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: 2020 period Future commitments Country Recorded as expenses Capitalized to Property, plant and equipment To be recorded as expenses To be capitalized to Property, plant and equipment CLP (000’s) CLP (000’s) CLP (000’s) CLP (000’s) Chile 562,331 - Argentina 312,936 8,758 94,226 Brazil 1,030,883 110,123 207,737 48,810 Paraguay 101,653 34,218 - Total 2,007,803 153,099 301,963 48,810 32 – SUBSEQUENT EVENTS On February 17, 2021, the subsidiary Paraguay Refrescos S.A. along with the companies INPET S.A.E.C.A and CORESA. executed the Bylaws andShareholders’ Agreement for the incorporation of a company called “CIRCULAR- PET S.A.” Each of the companies will hold a 33.3% ownership interest inthe company’s share capital. The subscribed share capital of CIRCULAR- PET S.A. is CLP 4,326 million (PGY 42,000,000,000), where each shareholder at the incorporation act paid ashare of CLP 1,030,000 (PGY 10,000,000), totaling a paid-up share capital of CLP 3,090,000 (PGY 30,000,000). The principal activity of CIRCULAR-PET S.A. will be the manufacture and commercialization of recycled post-consumer PET resins, from thetransformation of PET flakes. Participation in the company provides the Group with a fully integrated supply chain for its growing business ofcommercializing products in PET bottles and will ensure the supply of recycled resin under the best conditions for the coming years. No other events have occurred after December 31, 2020 that may significantly affect the Company’s consolidated financial situation.81 Date: 03/13/2021 05:38 PMToppan MerrillProject: 21-9646-1 Form Type: 6-K Client: 21-9646-1_Embotelladora Andina S.A._6-K File: tm219646d1_6k.htm Type: 6-K Pg: 87 of 87 SIGNATURES 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. EMBOTELLADORA ANDINA S.A. By:/s/ Andrés Wainer Name:Andrés Wainer Title:Chief Financial Officer Santiago, March 15, 202182 EARNINGS RELEASE
4Q 20
February 23, 2021
Contact in Santiago, Chile
Andrés Wainer, Chief Financial Officer
Paula Vicuña, Investor Relations Manager
(56-2) 2338-0520 / andina.ir@koandina.com
Conference Call Information
Wednesday February 24, 2021
11:00 am Chile – 09:00 am EST
Dial-IN Participants
U.S.A. 1 (877) 830-2576
International (outside U.S.A.) 1 (785) 424-1726
Access Code: ANDINA
Replay
U.S.A., 1 (844) 488-7474
International (outside U.S.A.) 1 (862) 902-0129
Access code: 72482531
Replay available until March 11, 2021
Audio
Available at www.koandina.com
Thursday, February 25, 2021
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 1 of 23
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
February 2021
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 Form 40-F
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 No
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 No
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 No
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 3 of 23
EXECUTIVE SUMMARY
Consolidated Sales Volume for the quarter was 227.8 million unit cases, increasing 6.0% regarding the same quarter of the previous
year. Excluding beer volume in Chile, due to the new agreement with AB InBev, volume growth would have reached 3.4% in the
quarter. Accumulated consolidated Sales Volume reached 734.6 million unit cases, representing a 1.6% decrease regarding the
previous year. Excluding beer volume in Chile, volume decreased by 2.4% during the year.
Company figures reported are the following:
· Consolidated Net Sales reached CLP 524,363 million during the quarter, a 0.3% decrease regarding the same quarter of the
previous year. Accumulated consolidated Net Sales reached CLP 1,698,281 million, representing a 4.5% decrease regarding the
previous year.
· Consolidated Operating Income1 reached CLP 100,904 million during the quarter, representing a 7.6% increase regarding the
same quarter of the previous year. Accumulated consolidated Operating Income reached CLP 239,612 million, a 0.8% increase
regarding the previous year.
· Consolidated Adjusted EBITDA2 increased by 7.8% regarding the same quarter of the previous year, reaching CLP 132,610
million during the quarter. Adjusted EBITDA Margin reached 25.3%, an expansion of 189 basis points regarding the same quarter
of the previous year. Accumulated consolidated Adjusted EBITDA reached CLP 350,532 million, which represents a 0.5%
increase regarding the previous year. Adjusted EBITDA Margin for the period was 20.6%, an expansion of 103 basis points
regarding the previous year.
· Net Income attributable to the owners of the controller for the quarter reached CLP 48,948 million. Excluding the effect of a lawsuit
won in Brazil that allowed us to recognize a tax credit in the fourth quarter of 2019, Net Income attributable to the owners of the
controller increased 21.1% compared to the same quarter of the previous year. Accumulated Net Income attributable to the
owners of the controller was CLP 122 billion, representing a 1.4% decrease regarding the previous year, also excluding in 2019
the effect of the aforementioned lawsuit. Including the effect of the lawsuit, Net Income attributable to the owners of the controller
decreased by 45.9% compared to the same quarter of the previous year and 29.8% compared to the previous year.
Comment of the Chief Executive Officer, Mr. Miguel Ángel Peirano
"We have closed 2020 with very positive financial results, given the health and economic crisis scenario that we have had to face,
and the negative effect of the exchange rate on the translation of figures to Chilean pesos. We managed to expand our consolidated
Adjusted EBITDA margin by more than 100 basis points and, with respect to 2019, there has been essentially no variation in
consolidated Adjusted EBITDA and Net Income attributable to the owners of the controller adjusted for the extraordinary effects of
2019. In particular, we had an excellent last quarter of the year, where volume grew by 6.0%, leveraged in the growth of the soft
drinks’ category in our four operations, and the growth of beer, mainly in Chile, given the new distribution agreement with AB InBev
that began in November. Our consolidated adjusted EBITDA grew by 7.8% in the quarter and Adjusted EBITDA margin expanded by
189 basis points.
We knew that the world was changing, and we were preparing for it, focusing on being more flexible and faster to adapt to changes.
During 2020, the impact that the pandemic had on the markets and their sales channels, as well as on the consumers’ buying
behavior, allowed us to confirm that we were on the right track and also confirm the relevance of all the work we had been doing.
We were able to reinvent ourselves and meet the new needs of our customers and consumers and adjust and respond to the
changes in the demand for our products. We focused on meeting the needs of the traditional channel, given its relevant role as a
neighboring sales channel, while supporting our customers of the on-premise channel, which had and still has strong restrictions
to be able to operate, and we successfully responded to the growing demand for returnable packaging and future consumer
consumption. It should be mentioned that a priority for the Company is the care of our employees; we take all necessary measures
to protect them. Among these measures are teleworking, new hygienic and cleaning protocols in our facilities, as well as providing
personal protection equipment to all our employees who must continue working in production facilities and distribution centers.
For 2021, our budget is to invest approximately USD 160 - 180 million, which will mainly go towards further developing the market
for returnables, with significant investments in bottles and cases in the four countries. We will also invest in supporting the
recovery of the on-premise channel customers as well as the traditional channel, making cold equipment available to increase our
coverage. Finally, we have some specific projects aimed at strengthening our presence and flexibility in the returnable packaging
segment, such as paper labelling in Argentina, which will allow us to work with a single bottle for all our brands. In Paraguay we
will increase our installed capacity, with the launch of a new production line. I have no doubt that with the outstanding team we
have, with which we successfully journeyed through a year as hard and complicated as 2020, we will continue to develop the
projects that allow us to follow the path of sustainable value creation that we have set, focused on serving our customers and
consumers, as a Total Beverage Company.
1 Operating Income considers Revenues, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with Chile’s Financial Market Commission and set in accordance to IFRS.
2 Adjusted EBITDA considers Revenues, Cost of Sales, Distribution Costs and Administrative Expenses included in the Financial Statements filed with Chile’s Financial Market Commission and set in accordance to IFRS, plus Depreciation.
NYSE: AKO/A; AKO/B
BOLSA DE COMERCIO DE SANTIAGO: ANDINA-A; ANDINA-B
www.koandina.com
-2-
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 4 of 23
The focus we have given to Environmental, Social and Corporate Governance (ESG) issues, led us to be included in S&P's 2021
Global Sustainability Yearbook. This Yearbook aims to distinguish those companies that have demonstrated great strengths in the
area of corporate sustainability. More than 7,000 companies from all over the world participated this year, and because of the great
performance we achieved in the Corporate Sustainability Assessment (CSA), we were ranked in the top 15% of our industry, and
therefore we were chosen to be part of the Yearbook, according to the annual assessment performed by S&P Global. This is a
recognition that fills us with pride and acknowledges the work we have done and reflects the relevance that sustainable
development has in the way we work every day to refresh our consumers.”
CONSOLIDATED RESULTS: 4th Quarter 2020 vs. 4th Quarter 2019
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 regarding 2019 are nominal. It is worth mentioning that the devaluation of local
currencies regarding the U.S. dollar has a negative impact on our dollarized costs and the devaluation of local currencies with
respect to the Chilean peso has a negative impact on the consolidation of figures. The following chart 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
4Q19
59.4
4.12
756
6,448
4Q20
80.1
5.40
761
7,003
4Q19
12.5
183.69
N.A.
0.12
4Q20
8.4
140.96
N.A.
0.11
Consolidated Sales Volume during the quarter was 227.8 million unit cases, representing a 6.0% growth regarding the same period in 2019,
explained by the volume increase of the operations in Chile, Brazil and Argentina, partially offset by the volume decrease of the operation in
Paraguay. Excluding beer volume in Chile, resulting from the new agreement with AB InBev, volume growth would have been 3.4% during the
quarter. Transactions reached 1,079.5 million in the quarter, representing a 2.2% decrease regarding the same quarter of the previous year. The
difference seen between the volume growth and the decline in transactions is because of drop in sales volume in the on-premise channel
because of the partial closure experienced by this channel, whose volume is almost completely immediate consumption.
Consolidated Net Sales reached CLP 524,363 million, a 0.3% decrease, explained by (i) a decline in net sales in Argentina, Brazil and Paraguay,
due to the negative effect of translation of figures to Chilean pesos (ii) the decreased volume in Paraguay, and (iii) because of a lower average
price in Argentina and Paraguay. This was almost completely offset by sales growth in Chile.
Consolidated Cost of Sales increased by 4.6%, which is mainly explained by (i) the increase sales in the beer and spirits category in Chile,
because we began to commercialize AB InBev beer, which carries a high cost per unit case, and (ii) the devaluation of local currencies against
the U.S. dollar, which negatively impacts dollarized costs. This was partly offset by (i) a reduction in the cost of PET resin, and (ii) the effect of
translating figures from Argentina, Brazil and Paraguay resulting from the devaluation of local currencies against the Chilean peso.
Consolidated Distribution Costs and Administrative Expenses decreased by 16.8%, which is mainly explained by (i) reductions in advertising
costs in the four operations, (ii) higher other operating income classified under this item, (iii) lower labor costs in Argentina and Paraguay, and (iv)
the effect of translating figures from Argentina, Brazil and Paraguay resulting from the devaluation of local currencies against the Chilean peso.
This was partially offset by (i) higher distribution freight because of higher volumes sold in Argentina, Brazil and Chile, and (ii) higher labor costs
in Brazil and Chile.
The aforementioned effects let to a consolidated Operating Income of CLP 100,904 million, a 7.6% increase. Operating Margin was 19.2%.
Consolidated Adjusted EBITDA reached CLP 132,610 million, increasing by 7.8%. Adjusted EBITDA Margin was 25.3%, an expansion of 189
basis points.
Net Income attributable to the owners of the controller during the quarter was CLP 48,948 million, a decrease of 45.9% and Net Margin reached
9.3%, a contraction of 787 basis points.
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ARGENTINA: 4th Quarter 2020 vs. 4th Quarter 2019
The average quarterly exchange rate was 80.1 ARS/USD, which is compared with an average quarterly exchange rate of 59.4 ARS/USD in
the same quarter of the previous year. The depreciation of local currencies with respect to the U.S. dollar has a negative impact on our
dollarized costs. In addition, pursuant to IAS 29, the translation of figures from local currency to the reporting currency was performed using
the closing exchange rate for the conversion to Chilean pesos of 8.4 CLP/ARS, which is compared to a closing exchange rate of 12.5
CLP/ARS in the same quarter of the previous year; thus, a negative impact on the consolidation of figures is generated. Figures for
Argentina in local currency referred to in this section both for 2020 as well as 2019, are expressed in currency of December 2020.
Sales Volume for the quarter increased by 1.5%, reaching 52.1 million unit cases, explained by a volume increase in the soft drinks and juices
and other non-alcoholic beverages categories, which was partially offset by a volume decrease in the water category. This volume growth is
mainly explained by the growth in the category of returnable soft drinks, a packaging that we have strongly developed to offer an attractive
alternative to our consumers, both from a sustainability point of view, as well as an economic convenience. Transactions reached 216.1 million,
representing a 10.4% decrease, explained by a significant change in the mix from immediate to future consumption packaging, given the
restrictions affecting the on-premise channel. Our soft drinks market share reached 61.3 points in the quarter. It is worth mentioning that as a
result of restrictions related to COVID-19, the surveying company had to change the methodology and sample, therefore figures are not
completely comparable to those of previous periods.
Net Sales reached CLP 100,970 million, decreasing by 12.1%. In local currency they decreased by 4.4%, which was mainly explained by a lower
average price, which was affected by price controls imposed by authorities, as well as by a lower immediate consumption mix, which was
partially offset by the already mentioned volume increase.
Cost of Sales decreased by 13.7%. In local currency it decreased by 6.2%, which is mainly explained by (i) lower concentrate costs because of
lower selling prices, and (ii) a lower cost of PET resin. These effects were partially offset by (i) the devaluation effect of the Argentine peso on our
dollarized costs, and (ii) a greater cost of sugar.
Distribution Costs and Administrative Expenses decreased by 15.2% in the reporting currency. In local currency they decreased by 7.7%, which
is mainly explained by (i) lower labor costs, (ii) lower advertising expenses, and (iii) greater other operating income classified under this item.
This was partially offset by greater distribution expenses, given the higher volume sold, as well as by greater distribution tariffs.
The aforementioned effects led to an Operating Income of CLP 10,646 million, increasing by 12.6% regarding the same period of the previous
year. Operating Margin was 10.5%. In local currency Operating Income increased by 22.5%.
Adjusted EBITDA reached CLP 17,140 million, a 1.7% increase. Adjusted EBITDA Margin was 17.0%, an expansion of 231 basis points. On the
other hand, in local currency Adjusted EBITDA increased by 10.7%.
BRAZIL: 4th Quarter 2020 vs. 4th Quarter 2019
The average quarterly exchange rate was 5.40 BRL/USD, which is compared with an average quarterly exchange rate of 4.12 BRL/USD in
the same quarter of the previous year. Depreciation of local currencies against the U.S. dollar has a negative impact on our dollarized costs.
Translation of figures from local currency to the reporting currency was performed using the average exchange rate for the conversion to
Chilean pesos of 140.96 CLP/BRL, which is compared with 183.69 CLP/BRL in the same quarter of the previous year. Thereby generating
a negative impact on the consolidation of figures.
Sales Volume for the quarter reached 78.6 million unit cases, a 7.1% increase, explained by the volume increase in the soft drinks, beer and
water categories, which was partially offset by a volume decrease in the juices and other non-alcoholic beverages category. The traditional
channel and returnable packaging led the growth. Transactions reached 375.4 million, which represents an increase of 0.5%. It is worth
mentioning that the lower growth in transactions regarding volume is owed mainly to the closing of part of the on-premise channel. Our soft
drinks market share in our Brazilian franchises reached 62.2 points, 15 basis points higher regarding the same quarter of the previous year.
Net Sales reached CLP 160,725 million, a 12.5% decrease. Net Sales in local currency increased by 14.0%, mainly explained by the already
mentioned increase in Sales Volume and by a higher average price, driven by a greater mix and average price of the beer category, in addition to
higher average prices for soft drinks.
Cost of sales decreased by 8.4%, while in local currency it increased by 19.2%, which is mainly explained by (i) the negative effect on dollarized
costs (specially sugar and PET resin) of the depreciation of the Brazilian real against the U.S. dollar, (ii) a greater cost of concentrate given the
reduction of tax benefits, and (iii) an increase in beer sales, which carries a high cost per unit case.
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Date: 02/23/2021 03:21 PM
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Distribution Costs and Administrative Expenses decreased by 33.8% in the reporting currency. In local currency, they decreased by 13.6%,
which is mainly explained by (i) a reduction in advertising expenses and (ii) higher other operating income classified under this item. This was
partially offset by (i) higher labor costs, and (ii) higher distribution costs resulting from greater volume sold.
The aforementioned effects led to an Operating Income of CLP 33,580 million, decreasing by 1.6%. Operating Margin was 20.9%. In local
currency, Operating Income increased by 28.6%.
Adjusted EBITDA reached CLP 39,609 million, a 6.0% decrease regarding the same period of the previous year. Adjusted EBITDA Margin was
24.6%, an expansion of 172 basis points. In local currency, Adjusted EBITDA increased by 22.9%.
CHILE: 4th Quarter 2020 vs. 4th Quarter 2019
The average quarterly exchange rate was 761 CLP/USD, which compares to an average quarterly exchange rate of 756 CLP/USD in the
same quarter of the previous year. The depreciation of local currencies with respect to the U.S. dollar has a negative impact on our
dollarized costs.
Sales Volume during the quarter reached 76.6 million unit cases, which implied an increase of 10.8%, explained by a volume increase in all
categories, especially beer and spirits. Excluding the beer volume from the new agreement with AB InBev, volume growth would have been 2.7%
in the quarter. In Chile, the traditional channel also showed an increase in volume, which helped to offset the decrease of the on-premise and
supermarket channels. Transactions reached 381.0 million, representing an increase of 3.9%. The partial closure of the on-premise channel, as
a result of COVID-19, was the main cause of the lower increase in transactions regarding sales volume. On the other hand, soft drinks market
share reached 64.1 points in the quarter. It should be noted that as a result of restrictions related to COVID-19, the surveying company had to
change the methodology and sample, so figures are not completely comparable to those of previous periods.
Net Sales reached CLP 217,378 million, a 22.3% increase, which is mainly explained by the already mentioned Sales Volume increase and by a
higher average price. The higher average price is mainly explained by a higher average price of soft drinks, and by a greater mix of the beer and
spirits category, which was partially offset by a lower mix in immediate consumption.
Cost of Sales increased by 36.0%, mainly explained by (i) an increase in total sales volume, (ii) increased sales in the beer and spirits category
explained by the beginning of commercialization of AB InBev beer, which carry a higher cost per unit case, and (iii) greater depreciation charges.
Distribution Costs and Administrative Expenses increased by 0.7%, which is mainly explained by (i) greater distribution and freight expenses,
due to higher volumes, and (ii) greater labor costs. This was partially offset by lower advertising expenses.
The aforementioned effects led to an Operating Income of CLP 44,141 million, 9.3% higher when compared to the previous year. Operating
Margin was 20.3%.
Adjusted EBITDA reached CLP 60,782 million, a 17.6% increase. Adjusted EBITDA Margin was 28.0%, a contraction of 110 basis points.
PARAGUAY: 4th Quarter 2020 vs. 4th Quarter 2019
The average quarterly exchange rate was 7,003 PYG/USD compared to an average quarterly exchange rate of 6,448
PYG/USD in the same quarter of the previous year. The depreciation of local currencies with respect to the U.S. dollar has a
negative impact on our dollarized costs. The translation of figures from local currency to the reporting currency was performed
using the average exchange rate of 0.11 CLP/PGY, which compares to a parity of 0.12 CLP/PGY in the same quarter of the
previous year. Thus, there is a negative impact on the consolidation of figures.
Sales Volume during the quarter reached 20.6 million unit cases, a decrease of 2.1%, explained by a volume decrease in the water and juices
and other non-alcoholic beverages categories, partially offset by a volume increase in the soft drinks’ category. Transactions reached 106.9
million, which represents a 12.0% decrease. Both the decrease in volume as well as transactions is mainly due to the partial closing of the on-
premise channel due to COVID-19. Our soft drinks market share during the quarter reached 76.5 points in the quarter. It is worth mentioning that
as a result of restrictions related to COVID-19, the surveying company had to change the methodology and sample, therefore figures are not
completely comparable to those of previous periods.
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Net Sales reached CLP 45,982 million, reflecting an 8.2% decrease. Net Sales in local currency decreased by 0.6%, which was explained by the
already mentioned decline in Sales Volume, which was partially offset by a higher average price.
Cost of Sales in the reporting currency decreased by 14.1%. In local currency it decreased by 7.0%, which is mainly explained by (i) lower
volume sold, (ii) lower PET resin costs, and (iii) lower labor costs. This was partially offset by the negative effect of the depreciation of the
guaraní on our dollarized costs.
Distribution Costs and Administrative Expenses decreased by 31.1%, and in local currency they decreased by 25.6%. This is mainly explained
by (i) lower advertising expenses, (ii) lower labor costs, and (iii) greater other operating income classified under this item.
The aforementioned effects led to an Operating Income of CLP 14,269 million, higher by 27.7% when compared to the previous year. Operating
Margin was 31.0%. In local currency Operating Income increased by 38.8%.
Adjusted EBITDA reached CLP 16,810 million, a 22.6% increase and Adjusted EBITDA Margin was 36.6%, an expansion of 919 basis points. In
local currency Adjusted EBITDA increased by 33.1%.
ACCUMULATED RESULTS: Full Year 2020 vs. Full Year 2019
Figures of the following analysis are set according to IFRS, in nominal Chilean pesos, both for consolidated results as well as for the results of
each of our operations. All variations with respect to 2019 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 Argentina, 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 8.4 CLP/ARS, which is compared
to 12.5 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 2019 as well as 2020, are all expressed in December 2020 currency. The following table
shows the exchange rates used:
Exchange rates used
Local currency/USD
(Average Exchange rate)
CLP/local currency
(Average Exchange rate*)
FY19
FY19
48.2
12.5
Argentina
3.95
178.11
Brazil
703
N.A.
Chile
0.11
6,240
Paraguay
*Except Argentina, where the closing exchange rate is used, pursuant to IAS 29
FY20
70.6
5.16
792
6,773
FY20
8.4
153.61
N.A.
0.12
Consolidated Results
Consolidated Sales Volume reached 734.6 million unit cases, representing a 1.6% decrease with respect to the same period of 2019, mainly
explained by the volume decrease in the Argentine, Chilean and Paraguayan operations, partly offset by the volume increase in the Brazilian
operation. Excluding beer volume in Chile resulting from the new agreement with AB InBev, sales volume would have decreased by 2.4% during
the year. On the other hand, transactions reached 3,401.8 million, representing a 13.5% decrease. Consolidated Net Sales reached CLP
1,698,281 million, a 4.5% decrease.
Consolidated Cost of Sales decreased by 2.5%, which is mainly explained by (i) the Sales Volume decrease in Argentina, Chile and Paraguay,
(ii) the lower cost of PET resin, and (iii) a shift in the soft drinks’ mix towards future consumption packaging which carry a lower unit cost. These
effects were partially offset by (i) increased sales in the beer and spirits category in Chile, which carry a higher cost per unit case, and (ii) the
devaluation effect of the Argentine peso, the Brazilian real, the Paraguayan guaraní and the Chilean peso on our dollarized costs.
Consolidated Distribution Costs and Administrative Expenses decreased by 11.5%, which is mainly explained by (i) lower labor costs and
advertising expenses in the four operations, and (ii) lower distribution costs due to lower sales volume.
The aforementioned effects led to a Consolidated Operating Income of CLP 239,612 million, an increase of 0.8%. Operating Margin was 14.1%.
Consolidated Adjusted EBITDA reached CLP 350,532 million, an increase of 0.5%. Adjusted EBITDA Margin was 20.6%, an expansion of 103
basis points.
Net Income attributable to the owners of the controller was CLP 122,000 million, a decrease of 29.8% and net margin reached 7.2%.
Argentina
Sales Volume decreased by 6.5% reaching 166.7 million unit cases. On the other hand, transactions reached 688.7 million, which represents a
18.4% decrease. Net Sales reached CLP 318,828 million, a 19.2% decrease, while in local currency, Net Sales decreased by
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12.1%, which was mainly explained by the already mentioned decrease in sales volume and by lower average prices, impacted by a lower
single-serve consumption mix and price controls imposed by authorities.
Cost of Sales decreased by 19.8%. In local currency it decreased by 12.7%, which is mainly explained by (i) lower Sales Volume, (ii) lower sugar
costs, and (iii) lower PET resin 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 18.5% in the reporting currency. In local currency they decreased by 11.3% which
is mainly explained by (i) lower labor costs and expenses for services provided by third parties, which grew below local inflation, (ii) lower
advertising expenses, (iii) higher other operating income classified under this item, and (iv) the effect of lower volumes on distribution expenses.
The aforementioned effects, led to an Operating Income of CLP 26,032 million, an 18.7% decrease. Operating Margin was 8.2%. In local
currency Operating Income decreased by 11.6%.
Adjusted EBITDA reached CLP 48,928 million, a 14.8% decrease. Adjusted EBITDA Margin was 15.3%, an expansion of 80 basis points. On the
other hand, Adjusted EBITDA Margin in local currency decreased by 7.3%.
Brazil
Sales Volume increased by 2.3%, reaching 265.1 million unit cases. The volume increase is explained by the volume growth of the water and
beer categories, partially offset by a decrease in the categories of juices and other non-alcoholic beverages and soft drinks. On the other hand,
transactions reached 1,263.2 million, which represents a 7.2% decrease. Net Sales reached CLP 580,063 million, a 6.3% decrease, impacted by
the negative effect of translating figures to Chilean pesos. In local currency, Net Sales increased by 8.4% due to greater average prices, mainly
explained by higher beer prices and beer mix, and to a lower extent by the already mentioned volume increase.
Cost of Sales decreased by 3.0%, while in local currency it increased by 12.2%, which is mainly explained by (i) the negative effect over
dollarized costs of the depreciation of the Brazilian real against the U.S. Dollar, (ii) greater concentrate costs due to lower tax benefits, and (iii)
the increase of beer in the sales mix, which carries a higher cost.
Distribution Costs and Administrative Expenses decreased by 18.5% in the reporting currency, and in local currency they decreased by 6.8%.
This is mainly explained by (i) lower advertising expenses, (ii) lower labor costs, and (iii) lower distribution freight expenses.
The aforementioned effects, led to an Operating Income of CLP 88,995 million, a 1.3% decrease. Operating Margin was 15.3%. In local
currency, Operating Income increased by 16.6%.
Adjusted EBITDA reached CLP 116,335 million, a 3.2% decrease regarding the previous year. Adjusted EBITDA Margin was 20.1%, an
expansion of 66 basis points. In local currency Adjusted EBITDA increased by 13.8%.
Chile
Sales Volume reached 236.3 million unit cases, representing a 1.3% decrease, explained by a decrease in the categories of soft drinks, water
and juices and other non-alcoholic beverages, which was partially offset by an increased volume in the beer and spirits category. Excluding beer
volume in Chile resulting from the new agreement with AB InBev, sales volume would have decreased by 3.7% during the year. On the other
hand, transactions reached 1,104.2 million, representing a 16.0% decrease. Net Sales reached CLP 644,762 million, a 5.9% increase, explained
by a higher average price during the period partially offset by the already mentioned decrease in Sales Volume. The higher average price during
the period is mainly explained by a greater mix in the beer and spirits category and by a greater average price in soft drinks, which were partially
offset by a lower mix of immediate consumption, particularly during the second and third quarters of the year 2020.
Cost of Sales increased by 9.3%, which is mainly explained by (i) increased sales of the beer and spirits category, which carry a higher cost per
unit case, (ii) the negative effect of the depreciation of the Chilean peso on our dollarized costs, and (iii) greater depreciation expenses. This was
partly offset by a shift in the soft drinks’ mix from immediate to future consumption, which carries a lower average cost.
Distribution Costs and Administrative Expenses decreased by 0.4% which is mainly explained by (i) lower labor costs, and (ii) lower advertising
expenses. This effect was partially offset by (i) lower other operating income classified under this item, and (ii) higher expenses on uncollectible
accounts and higher insurance expenses.
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The aforementioned effects, led to an Operating Income of CLP 91,166 million, 3.6% higher when compared to the previous year. Operating
Margin was 14.1%.
Adjusted EBITDA reached CLP 141,437 million, increasing by 5.5%. Adjusted EBITDA Margin was 21.9%, a contraction of 8 basis points.
Paraguay
Sales Volume reached 66.4 million unit cases, representing a 4.2% decrease, explained by the decrease in Sales Volume of all categories. On
the other hand, transactions reached 345.7 million, which represents a 16.5% decrease. Net Sales reached CLP 157,153 million, a decrease of
1.1%. In local currency Net Sales decreased by 3.8%, which is explained by the already mentioned decrease in Sales Volume, partially offset by
a greater average price.
Cost of Sales decreased by 6.0% and in local currency it decreased by 8.7%. This is mainly explained by (i) lower volume sold, (ii) a reduction in
the price of PET resin, and (iii) lower repair and maintenance expenses, among other items, due to the savings plan implemented by the
operation.
Distribution Costs and Administrative Expenses decreased by 7.5% in the reporting currency. In local currency they decreased by 11.0%, which
is mainly explained by (i) lower advertising expenses, (ii) lower labor costs, (iii) greater other operating income classified under this item, and (iv)
lower freight expenses due to lower volume sold.
The aforementioned effects led to an Operating Income of CLP 38,845 million, 19.7% higher when compared to the previous year. Operating
Margin was 24.7%. In local currency Operating Income increased by 17.7%.
Adjusted EBITDA reached CLP 49,259 million, 17.0% higher when compared to the previous year and Adjusted EBITDA Margin was 31.3%, an
expansion of 484 basis points. In local currency Adjusted EBITDA increased by 14.5%.
NON-OPERATING RESULTS FOR THE QUARTER
Net Financial Income and Expense account recorded an expense of CLP 12,554 million, compared to an income of CLP 28,061 million for the
same quarter of the previous year. The increase in net financial expenses is because 2019 recorded financial income due to the restatement of
the tax credit recognized because of a lawsuit won in Brazil.
Share of Profit or Loss of Investment in Associates using the Equity Method account went from a CLP 3,875 million loss to an CLP 894 million
profit, which is mainly explained by better results from Brazilian subsidiaries, particularly Leão.
Other Income and Expenses account recorded a CLP 4,897 million loss, compared with an income of CLP 19,318 million for the same quarter of
the previous year, which variation is mainly explained because this quarter we did not record the tax credit in Brazil that we did record during the
same quarter of the previous year.
Results by Adjustment Units and Exchange Rate Differences account went from a CLP 3,974 million loss to a CLP 3,006 million loss this quarter,
mainly explained by lower losses from exchange rate differences related to assets in U.S. dollar of Andina Chile. Also, lower inflation in
Argentina regarding the same period of the previous year, implied a lower adjustment by inflation of non-monetary net assets of Andina
Argentina.
Income Tax went from -CLP 41,831 million to -CLP 31,932 million, variation that is mainly explained by the recognition of income tax during 2019
due to the tax credit recorded by the operation in Brazil, partly offset by greater operating income of the company and the exchange rate
difference tax effect in Chile.
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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
12.31.2019
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
12.31.2020
CLP million
797,298
1,650,767
2,448,064
12.31.2020
CLP million
378,056
1,238,448
1,616,504
12.31.2020
CLP million
20,379
811,181
831,560
Variation
CLP million
263,824
-206,707
57,115
Variation
CLP million
-33,602
228,061
194,459
Variation
CLP million
125
-137,469
-137,344
At the closing of 2020, with regard to the closing of 2019, the Argentine peso, the Brazilian real and the Paraguayan guaraní depreciated against
the Chilean peso by 48.0%, 35.8% and 12.6% respectively. This generated a decrease in assets, liabilities and equity accounts due to the effect
of translation of figures.
Assets
Total assets increased by CLP 57,115 million, 2.4% compared to December 2019.
Current assets increased by CLP 263,824 million, 49.5% from December 2019, mainly explained by the increase in Cash and Cash Equivalents
(CLP 151,963 million), mainly due to the increased availability of flows explained by the placement of a bond on the U.S. market in January
2020. In addition, the increase in Other Current Financial Assets (CLP 139,958 million) due to the increase in short-term investments managed
by investment funds, resulting from the issuance of the aforementioned bond.
On the other hand, non-current assets decreased by CLP 206,707 million, by 11.1% compared to December 2019, mainly explained by the
decline in Property, Plant and Equipment (-CLP 117,142 million), mainly explained by increased depreciation and the negative effect of
translating figures, partially offset by increased manufacturing investments and cold equipment and packaging. The previous decrease is in
addition to the decrease in Intangible Assets Other than Goodwill (-CLP 70,561 million), due to the negative effect of translating figures on
distribution rights in our subsidiaries.
Liabilities and Equity
In total, liabilities increased by CLP 194,459 million, 13.7% higher compared to December 2019.
Current liabilities decreased by CLP 33.602 million, 8.2% lower compared to December 2019, this is mainly explained by the decrease in Current
Accounts Payable to Related Entities (-CLP 14,096 million), mainly by lower accounts payable to The Coca-Cola Company and other related
companies, coupled with the decrease in Trade Accounts Payable and Other Current Accounts Payable (-CLP 13,255 million), mainly explained
by the negative effect of translating figures on Accounts Payable in Brazil and Argentina.
On the other hand, non-current liabilities increased by CLP 228,061 million, 22.6% higher compared to December 2019, mainly due to the
increase in Other Non-Current Financial Liabilities (CLP 246,503 million), mainly explained by the recognition of the liability for the bond
placement on the U.S. market in January 2020 and by the mark-to-market liability of cross currency swaps of this same bond.
In terms of equity, it decreased by CLP 137,344 million, 14.2% lower compared to December 2019, explained by the decrease in Other Reserves
(-CLP 190,722 million), mainly due to the negative effect of translating figures from foreign subsidiaries. The above decrease is partially offset by
Accumulated Earnings in the period (CLP 53,253 million) explained by earnings obtained in the period (CLP 122 billion) and the restatement of
equity balances in our subsidiary in Argentina pursuant to IAS 29 (CLP 34,618 million), partially offset by dividend distributions (-CLP 103,365
million).
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www.koandina.com
-9-
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 11 of 23
FINANCIAL ASSETS AND LIABILITIES
At the closing of December 2020, Total Financial Assets reached USD 771 million. This amount is broken down into USD 435 million in Cash and Cash Equivalents, USD 197
million in Other Current Financial Assets, and USD 138 million in the Valua on of Hedge Deriva ves.
Financial Assets for Cash and Cash Equivalents and Other current financial assets are invested in low-risk instruments such as term deposits, short-term mutual fixed income
funds and others. In terms of currency exposure, these are denominated in 49.6% in Chilean pesos, 26.7% in UF, 11.0% in Brazilian reals, 5.1% in Paraguayan guaraní, 4.1% in
U.S. dollars, and 3.5% in Argen ne pesos.
At the closing of December 2020, financial debt level is USD 1,355 million, of which USD 660 million correspond to bonds on the internaonal ̀ market, USD 659 million to bonds
on the local Chilean market and USD 36 million to bank debt and others. It is worth nong ̀ the issuance of a bond on the internaonal ̀ market made in January 2020 totaling
USD 300 million, due 2050, which was completely redenominated to Chilean pesos indexed to infla on (UF).
Financial debt, including the effect of Cross Currency Swaps ("CCS"), is denominated in 51.0% in UF, 34.4% in Chilean pesos, 13.9% in Brazilian reals, 0.6% in U.S. dollars, 0.05%
in Paraguayan guaraní and 0.02% in Argen ne pesos.
At the closing of December 2020, Net Financial Debt of the Company's Total Financial Assets reached USD 584 million.
CASH FLOW
Cash Flow
Operating
Investment
Financing
Net Cash Flow for the period
12.31.2019
12.31.2020
Variation
CLP million
255,148
-110,048
-127,112
17,988
CLP million
278,769
-223,879
113,041
167,931
CLP million
23,621
-113,831
240,153
149,943
%
9.3%
103.4%
-188.9%
833.6%
During the present period, the Company generated a posi ve net cash flow of CLP 167,931 million, which is explained as follows:
Operang ̀ ac vies ̀ generated a posi ve cash flow of CLP 278,769 million, higher than the CLP 255,148 million recorded in the same period of 2019, mainly due to lower
payments to suppliers, coupled with lower tax payments and other cash ou lows, par ally offset by lower collec ons.
Investment ac vi es generated a nega ve cash flow of CLP 223,879 million, with a nega ve variaon ̀ of CLP 113,831 million compared to the same period last year, which is
mainly explained by greater purchases of short-term financial instruments par ally offset by a lower capex.
Financing ac vies ̀ generated a posi ve cash flow of CLP 113,041 million, with a posi ve variaon ̀ of CLP of the previous year, which is mainly explained by the U.S. dollar bond
placement in the United States.
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www.koandina.com
-10-
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 12 of 23
MAIN INDICATORS
INDICATOR
Defini on
LIQUIDITY
Current Liquidity
Acid Ra. o
ACTIVITY
Investments
Inventory Turnover
INDEBTEDNESS
Indebtedness Ra o
Financial Expenses Coverage
Net Financial Debt/Adjusted EBITDA
PROFITABILITY
On Equity
On Total Assets
Liquidity
Current Asset
Current Liability
Current Asset - Inventory
Current Liability
Cost of Sales
Average Inventory
Net Financial Debt3
Total Equity4
Adjusted EBITDA5
Fin. Expenses – Fin. Income6
Net Financial Debt
Adjusted EBITDA
Net Income for the Fiscal
year7
Average Equity
Net Income for the Fiscal
year
Average Assets
Unit
Times
Times
Times
Times
Times
Times
%
%
CLP million
82,653
116,171
Dec 20
Dec 19
Dec 20 vs Dec
19
2.1
1.8
1.3
0.9
7.4
0.5
8.9
1.2
7.0
0.5
9.6
1.5
62.7%
88.9%
-28.9%
5.8%
-6.2%
-7.1%
-19.9%
13.9%
19.4%
(5.5 pp)
5.0%
7.5%
(2.5 pp)
Current Liquidity showed a posi v e varia on of 62.7% compared to December 2019 explained by the 49.5% increase in current assets mainly explained by the greater
availability of cash flows due to the placement of the bond in the U.S. market in January 2020, coupled with the 8.2% decrease in current liabili es, pr eviously explained.
Acid Ra o showed an increase of 88.9% compared to December 2019, for the reasons set out above in addi on to a decrease in inventories (13.3%) in the period. With this,
current assets excluding inventories recorded a 73.5% increase compared to December 2019.
Ac vity
At the closing of December 2020, investments reached CLP 82,653 million, reflec ng a 28.9% decrease compared to the same period of 2019. Of the total as of December 2019
(CLP 116,171 million), CLP 21,722 million correspond to the effect of applying IFRS 16, as the standard meant recognizing a right-of-use for that amount. Excluding this effect in
both periods, investments decreased by 14.4% compared to the same period of the previous year, which is mainly due to the investment review carried out with the aim of
maintaining a healthy cash flow and high liquidity.
Inventory Turnover reached 7.4x, recording an increase of 5.8% versus the same period of 2019, mainly because average inventory decreased by 7.8%, which was a greater
reduc on than tha t of the cost of sale (-2.5%).
1 Opera ng Inc ome considers Revenues, Cost of Sales, Distribu on Cos ts, and Administra ve Expenses included in the Financial St atements filed with Chile’s Financial Market Commission and set in accordance to IFRS.
2 Adjusted EBITDA considers Revenues, Cost of Sales, Distribu on Cos ts and Administra ve Expenses included in the Financial St atements filed with Chile’s Financial Market Commission and set in accordance to IFRS, plus Deprecia on.
3 For these purposes Net Financial Debt means consolidated Current Liabili es bearing interest, namely: (i) other current financial liabili es, plus (ii) other non-current financial liabili es,
assets; plus other non-current financial assets (to the extent that they correspond to the ac ve balanc es of deriva ve financial ins truments, taken to cover exchange rate risks or interest rate risks on financial liabili es).
4 Consolidated Equity is total equity including non-controlling interests.
5 Adjusted EBITDA considers the following items: Ordinary Income, Sales Costs, Distribu on Costs and Administra ve Expenses, included in the Financial Statements presented to the Commission for the Financial Market and which are determined in accordance with
IFRS, plus Deprecia on. The value c orresponds to the sum of the last 12 moving months.
6 Financial Income corresponds to the interests generated by the cash and Financial Expenses corresponds to the interests generated by the financial debt of the company. The value corresponds to the sum of the last 12 moving months.
7 Value corresponds to the sum of the last 12 moving months.
less (iii) the sum of cash and cash equivalents; plus other current financial
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-11-
Date: 02/23/2021 03:21 PM
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Project: 21-7582-3 Form Type: 6-K
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Indebtedness
The Indebtedness ra o reached 0.5x as of the closing of December 2020, represen ng a 6.2% decrease regarding the closing of December 2019. This is mainly due to a greater
decrease in Net Financial Debt by 19.5% as a result of higher cash, in contrast to the decrease in total equity of 14.2% compared to 2019.
The Financial Expenses Coverage indicator records a decrease of -7.1% when compared against December 2019, reaching 8.9x mainly explained by a 19.3% increase in financial
expenses (12 moving months) due to the impact of the new debt issued in January 2020.
Net Financial Debt/Adjusted EBITDA was 1.2x, which represents a 19.9% decrease versus December 2019. The foregoing is mainly due to the 19.5% decrease of Net Debt,
mainly explained by the increase in Cash and Cash Equivalent and of Other Current Financial Assets, previously explained.
Profitability
Profitability on Equity reached 13.9%, decreasing by 5.5 percentage points compared to December 2019. This result is mainly because of the 29.8% decrease in Net Income for
the fiscal year. On the other hand, Profitability on Total Assets was 5.0%, 2.5 percentage points lower than the indicator measured in December 2019, explained by the
men oned decr ease in Net Income for the fiscal year, in addi on t o a 5.1% increase in Average Assets when compared with December 2019.
MARKET RISK ANALYSIS
The Company’s risk management is the responsibility of the office of the Chief Execu v e Officer, (through the areas of Corporate Management Control, Sustainability and Risks,
which depends on the office of the Chief Financial Officer), as well as each of the management areas of Coca-Cola Andina. The main risks that the Company has iden fied and
that could possibly affect the business are as follows:
Rela onship with The Coc a-Cola Company
A large part of the Company’s sales derives from the sale of products whose trademarks are owned by The Coca-Cola Company, which has the ability to exert an important
influence on the business through its rights under the Licensing or Bo ling Agreements. In addi on , we depend on The Coca-Cola Company to renew these Bo ling
Agreements.
Non-alcoholic beverage business environment
Consumers, public health officials, and government officials in our markets are increasingly concerned about the public health consequences associated with obesity, which can
affect demand for our products, especially those containing sugar.
The Company has developed a large por olio of sugar-free products and has also made reformula ons to some of its sugary products, significantly reducing sugar contents of
its products.
Raw material prices and exchange rate
Many raw materials are used in the produc on of beverages and packaging, including sugar and PET resin, the prices of which may present great vola lity . In the case of sugar,
the Company sets the price of a part of the volume that it consumes with some an cipa on, in or der to avoid having large fluctua ons of c ost that cannot be an cipa ted.
In addi on, these r aw materials are traded in dollars; the Company has a policy of hedging in the futures market a por on of the dollar s it uses to buy raw materials.
Instability in the supply of u li es
In the countries in which we operate, our opera ons depend on a stable supply of u li es
increased costs. The Company has mi g a on plans t o reduce the effects of eventual outages or shut offs.
and fuel. Power outages or water shut-offs may result in service interrup ons or
Economic condi ons of the c ountries where we operate
The Company maintains opera ons
Moreover, economic instability can cause deprecia on of the curr encies of these countries, as well as infla on, which ma y eventually affect the Company’s financial situa on.
in Argen na, Brazil, Chile and Paraguay. The demand for our products largely depends on the economic situa on of these countries.
New tax laws or modifica ons t o tax incen v es
We cannot ensure that any government authority in any of the countries in which we operate will not impose new taxes or increase exis ng
products or containers. Likewise, we cannot assure that these authori es ar e going to uphold and/or renew tax incen v es that currently benefit some of our opera ons.
taxes on our raw materials,
A devalua on of the currencies of the countries where we have our opera ons, regarding the Chilean peso, can nega v ely affect the results reported by the Company in
Chilean pesos
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Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 14 of 23
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. Should currencies
devaluate regarding the Chilean peso, this would have a nega v e effect on the results of the Company, upon the transla on of r esults into Chilean pesos.
The imposi on 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 imposi on 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. Addi onally , it may limit the ability of our foreign subsidiaries to finance payments of U.S. dollar denominated liabili es r equired by foreign creditors.
Civil unrest in Chile could have a material adverse effect on general economic condi ons in Chile and our business and financial c ondi on
Since October 18, 2019, there have been protests and demonstra ons
plans and reduced health care costs, reduc on
to public and private property.
We 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 nega v e impact on the Chilean economy and our business. Neither can we assure that demonstra ons and vandalism will not cause damage to our logis cs
and produc on in frastructure. So far, the Company has not been affected in any material respect.
in Chile, seeking to reduce inequality, including claims about be er pensions, improvement in health
in the cost of public transporta on, be er wages, among others. Some mes demonstra ons have been violent, causing damage
Our business is subject to risks arising from the COVID-19 pandemic
The COVID-19 pandemic has resulted in the countries where we operate taking extraordinary measures to contain the spread of COVID-19, including travel restric ons, closing
borders, restric ons or bans on social gathering events, instruc ons to ci z ens to prac ce social distancing, non-essen al business closure, quaran ne
implementa on, and
other similar ac ons. The impact of this pandemic has substan ally
increased uncertainty regarding the development of economies and is most likely to cause a global
recession. We cannot predict how long this pandemic will last, or how long the restric ons imposed b y the countries where we operate will last.
Since the impact of COVID-19 is very uncertain, we cannot accurately predict the extent of impact this pandemic will have on our business and our opera ons. There is a risk
that our employees, contractors and suppliers may be restricted or prevented from carrying out their ac vi es
including due to shutdowns
mandated by the authori es. Although our opera on s have not been materially disrupted to date, eventually the pandemic and the measures taken by governments to contain
the virus could affect the con nuity of our opera ons.
In addi on, some measures taken by governments have nega v ely affected some of our sales channels, especially the
closing of restaurants and bars, as well as the prohibi on of social gathering events, which affect our sales volumes to these channels. We cannot predict the effect that the
pandemic and these measures will have on our sales to these channels, nor whether these channels will recover once the pandemic is over. Nor can we predict how long our
consumers will change their consumer spending pa ern as a result of the pandemic.
Addi onally , a possible outbreak of other epidemics in the future, such as SARS, Zika or the Ebola virus, could also result in a similar impact to that of COVID-19 on our
business.
A more detailed analysis of business risks can be found in the Company’s 20-F and Annual Report, which are available on our website.
for an indefinite period of me,
RECENT EVENTS
COVID-19 impact on our business
Due to the impact that COVID-19 has had on different countries around the world and its arrival in the region where we operate, Coca-Cola Andina is taking the necessary
ac ons t o protect its employees and ensure the opera onal c on nuity of the c ompany.
Among the measures that have been taken to protect its employees are:
· Education campaign addressed to our employees on measures to be taken to prevent the spread of COVID-19.
· Every employee in an environment of potential contagion is returned home.
· New cleaning protocols in our facilities.
· Certain practices and work activities are modified, maintaining service to customers:
o We have proceeded to work from home in all posi ons wher e it is possible.
o
All domes c and in terna onal w ork trips have been cancelled.
· Provide personal protection equipment to all our employees who must continue to work in plants and distribution centers, as well as truck drivers and helpers,
including masks and alcohol gel.
Since mid-March, the governments of the countries where the Company operates have taken a number of steps to reduce the infec on rate of COVID-19. These measures
include closing schools, universi es, r estaurants and bars, malls, the prohibi on of social g athering events, sanitary controls and health check points, and in some cases, total or
par al quaran nes
for a part of the popula on. Governments in the countries where we operate have also announced economic s mulus measures for families and
businesses, including restric ons on dismissals of w orkers in Argen na. T o date, none of our plants have had to suspend their opera ons.
NYSE: AKO/A; AKO/B
BOLSA DE COMERCIO DE SANTIAGO: ANDINA-A; ANDINA-B
www.koandina.com
-13-
Date: 02/23/2021 03:21 PM
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in our sales across
As a result of the COVID-19 pandemic and the restric ons
channels. During this fourth quarter, at the consolidated level, we con nue to see a reduc on
in our sales volumes on the on-premise channel (although to a lesser extent than
in the previous quarters), consis ng mainly of restaurants and bars, which are already able to operate, but with capacity restric ons. We have also seen that volume is
(Mom & Pops) and wholesale channels are the ones that con nue to drive volume growth.
beginning to grow again in supermarkets, albeit slightly and that the tradi onal
Because the pandemic and the measures governments take are changing very rapidly, we believe it is too early to draw conclusions about changes in the long-term
consump on pa ern, and how these may affect our opera ng and financial r esults in the future.
in the four countries where we operate, we have seen great vola lity
imposed by the authori es
Due to the uncertainty regarding the evolu on of the COVID-19 pandemic and the aforemen oned government measures, including how long they will persist, and the effect
they will have on our volumes and business in general, we cannot predict the effect that these trends will have on our financial situa on. However, we consider that the
Company will have no liquidity problems. To date, we do not an cipa te significant provisions or write-offs. Finally, our investment plan for this year 2021 will return to pre-crisis
levels, i.e. in the range of USD 160 – USD 180 million. Our investment plans are constantly monitored, and it is not possible to ensure that we will fully comply with it, if there is
a stronger flare-up of this health situa on in the diff erent countries in which we operate, or for some other unforeseen circumstance.
Memorandum of Understanding celebrated between CMF and Plasco
On November 2, 2020, Envases CMF S.A. (“CMF”), a closed stock company, in which the Company holds a 50% ownership interest, and Fábrica de Envases Plás c os S.A.
(“Plasco”), a closed stock company, subsidiary of Compañía Cervecerías Unidas S.A., executed a Memorandum of Understanding wherein the preliminary terms and condi ons
were set regarding the incorpora on of a new company, whose ownership will be equally divided among CMF and Plasco, whose main objec v e will be the produc on and
commercializa on of post-consumer PET resin, in Chile. The closing of the Transac on
is subject to the fulfillment of certain condi ons precedent, customary for this type of
business, which include authoriza ons of an -c ompe
authori es. As of this date, it is not possible for us to determine the effects of the transac on on the Company's
results, but it is framed within the Company´s permanent commitment to the sustainability of its opera ons, and it seeks to ensure compliance with the applicable
environmental standards on the subject.
on
Interim Dividends 215 and 216
On November 24, 2020, the Company paid Interim Dividend 215: CLP 26.0 for each Series A share; and CLP 28.60 for each Series B share. The Shareholders' Registry for the
payment of this dividend closed on November 18, 2020. Also, on December 23, 2020, the Company announced payment of Interim Dividend 216: CLP 26.0 for each Series A
share; and CLP 28.60 for each Series B share. This dividend was paid on January 29, 2021. Both dividends were paid charge to earnings for the 2020 fiscal year, in accordance
with what was authorized by the General Shareholders’ Mee ng held April 16, 2020.
Coca-Cola Andina is included in S&P's 2021 Global Sustainability Yearbook
On February 9, 2021, we were included in S&P's 2021 Global Sustainability Yearbook, due to the high performance in S&P's Corporate Sustainability Assessment (CSA). This
Yearbook aims to dis nguish those companies that have demonstrated great strengths in the area of corporate sustainability. More than 7,000 companies from all over the
world par cip ated this year, and because of the great performance we achieved in the Corporate Sustainability Assessment (CSA), we were ranked in the top 15% of our
industry, and therefore chosen to be part of the Yearbook, according to the annual assessment performed by S&P Global.
Coca-Cola Andina is among the three largest Coca-Cola bo lers
in La n America, servicing franchised territories with almost 54.6 million people, delivering 734.6 million unit cases or 4,171 million liters of so ̀ drinks, juices, bo led water, beer and other alcoholic
beverages during 2020. Coca-Cola Andina has the franchise to produce and commercialize Coca-Cola products in certain territories in Argen na (through Embotelladora del Atlán c o), in Brazil (through Rio de Janeiro Refrescos), in Chile, (through Embotelladora
Andina) and in all of Paraguay (through Paraguay Refrescos). The Chadwick Claro, Garcés Silva, Said Handal and Said Somavía families control Coca-Cola Andina in equal parts. The Company's value genera on proposal is to become a Total Beverage Company,
using exis ng resources efficiently and sustainably, developing a rela onship of excellence with consumers of its products, as well as with its collaborators, customers, suppliers, the community in which it operates and with its strategic partner The Coca-Cola
Company, in order to increase ROIC for shareholders in the long term. For more company informa on visit www.koandina.com.
This document may contain projec ons reflec ng Coca-Cola Andina’s good faith expecta on and are based on currently available informa on. However, the results that are finally obtained are subject to diverse variables, many of which are beyond the Company's
control and which could materially impact the current performance. Among the factors that could change the performance are the poli c al and economic condi ons on mass consump on, pricing pressures resul ng
weather condi ons in the Southern Cone and other risk f actors that would be applicable from me t o me and which are periodic ally informed in reports filed before the appropriate regulatory authori es, and which are available on our web site.
discounts of other bo lers,
from compe
ve
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-14-
Date: 02/23/2021 03:21 PM
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Embotelladora Andina S.A.
Fourth Quarter Results for the period ended December 31, 2020. Reported figures, IFRS GAAP.
(In nominal million Chilean pesos, except per share)
Chilean
Operations
Brazilian
Operations
October-December 2020
Argentine
Operations
Paraguay
Operations
Total (1)
Chilean
Operations
Brazilian
Operations
October-December 2019
Argentine
Operations
Paraguay
Operations
Total (1)
% Ch.
Volume total beverages
(Million UC)
Transactions (Million)
Net sales
Cost of sales
Gross profit
Gross margin
Distribution and administrative
expenses
Corporate expenses (2)
Operating income (3)
Operating margin
Adjusted EBITDA (4)
Adjusted EBITDA margin
Financial (expenses) income
(net)
Share of (loss) profit of
investments accounted for
using the equity method
Other income (expenses) (5)
Results by readjustement unit
and exchange rate difference
Net income before income
taxes
Income tax expense
Net income
Net income attributable to non-
controlling interests
Net income attributable to
equity holders of the parent
Net margin
76.6
381.0
217,378
(134,352)
83,026
38.2%
78.6
375.4
160,725
(101,444)
59,281
36.9%
52.1
216.1
100,970
(53,624)
47,346
46.9%
20.6
106.9
45,982
(24,720)
21,262
46.2%
227.8
1,079.5
524,363
(313,449)
210,915
40.2%
69.1
366.7
177,794
(98,794)
79,000
44.4%
73.4
373.6
183,757
(110,799)
72,958
39.7%
51.4
241.3
114,911
(62,172)
52,739
45.9%
21.0
121.6
214.9
1,103.2
50,106
(28,787)
21,319
42.5%
525,737
(299,721)
226,016
43.0%
6.0%
-2.2%
-0.3%
4.6%
-6.7%
(38,885)
(25,701)
(36,700)
(6,994)
(108,280)
(38,618)
(38,817)
(43,281)
(10,144)
(130,861)
-17.3%
44,141
20.3%
60,782
28.0%
33,580
20.9%
39,609
24.6%
10,646
10.5%
17,140
17.0%
14,269
31.0%
16,810
36.6%
(1,731)
100,904
19.2%
132,610
25.3%
(12,554)
894
(4,897)
(3,006)
81,341
(31,932)
49,409
(461)
48,948
9.3%
40,382
22.7%
51,668
29.1%
34,141
18.5%
42,122
22.9%
9,458
8.2%
16,848
14.7%
11,174
22.3%
13,715
27.4%
(1,346)
93,809
17.8%
123,006
23.4%
28.6%
7.6%
7.8%
28,061
-144.7%
(3,875)
19,318
-123.1%
-125.4%
(3,974)
-24.4%
133,338
-39.0%
(41,831)
-23.7%
91,507
-46.0%
(1,045)
-55.9%
90,462
17.2%
-45.9%
WEIGHTED AVERAGE
SHARES OUTSTANDING
EARNINGS PER SHARE
EARNINGS PER ADS
(1) Total may be different from the addition of the four countries because of intercountry eliminations.
(2) Corporate expenses partially reclassified to the operations.
(3) Operating Income considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS.
(4) Adjusted EBITDA considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS, plus Depreciation.
(5) Other income (expenses) includes the following lines of the income statement by function included in the published financial statements in the Financial
Market Comission: "Other income", "Other expenses" and "Other (loss) gains".
946.6
51.7
310.3
946.6
95.6
573.4
-45.9%
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 17 of 23
Embotelladora Andina S.A.
Fourth Quarter Results for the period ended December 31, 2020. Reported figures, IFRS GAAP.
(In nominal million US$, except per share)
Exch. Rate:
760.69
Exch. Rate:
756.30
October-December 2020
Chilean
Operations
76.6
381.0
Brazilian
Operations
78.6
375.4
Argentine
Operations
52.1
216.1
Paraguay
Operations
20.6
106.9
Total (1)
227.8
1,079.5
Chilean
Operations
69.1
366.7
October-December 2019
Argentine
Operations
51.4
241.3
Brazilian
Operations
73.4
373.6
Paraguay
Operations
21.0
121.6
Total (1)
214.9
1,103.2
% Ch.
Volume total beverages (Million UC)
Transactions (Million)
Net sales
Cost of sales
Gross profit
Gross margin
Distribution and administrative expenses
Corporate expenses (2)
Operating income (3)
Operating margin
Adjusted EBITDA (4)
Adjusted EBITDA margin
Financial (expenses) income (net)
Share of (loss) profit of investments accounted for
using the equity method
Other income (expenses) (5)
Results by readjustement unit and exchange rate
difference
Net income before income taxes
Income tax expense
Net income
Net income attributable to non-controlling interests
Net income attributable to equity holders of the
parent
Net margin
WEIGHTED AVERAGE SHARES
OUTSTANDING
EARNINGS PER SHARE
EARNINGS PER ADS
285.8
(176.6)
109.1
38.2%
(51.1)
58.0
20.3%
79.9
28.0%
211.3
(133.4)
77.9
36.9%
(33.8)
44.1
20.9%
52.1
24.6%
142.0
(75.4)
66.6
46.9%
(51.6)
15.0
10.5%
24.1
17.0%
60.4
(32.5)
28.0
46.2%
(9.2)
18.8
31.0%
22.1
36.6%
698.5
(416.9)
281.6
40.3%
(145.7)
(2.3)
133.6
19.1%
175.9
25.2%
(16.5)
1.2
(6.5)
(3.9)
107.9
(42.2)
65.7
(0.6)
65.1
9.3%
946.6
0.07
0.41
235.1
(130.6)
104.5
44.4%
(51.1)
53.4
22.7%
68.3
29.1%
243.0
(146.5)
96.5
39.7%
(51.3)
45.1
18.5%
55.7
22.9%
153.5
(83.0)
70.4
45.9%
(57.8)
12.6
8.2%
22.5
14.7%
66.3
(38.1)
28.2
42.5%
(13.4)
14.8
22.3%
18.1
27.4%
696.7
(397.1)
299.5
43.0%
(173.6)
(1.8)
124.2
17.8%
162.9
23.4%
6.0%
-2.2%
0.3%
5.0%
-6.0%
-16.1%
27.8%
7.6%
8.0%
37.1
-144.4%
(5.2)
25.5
-122.5%
-125.7%
(5.2)
-26.2%
176.4
-38.8%
(55.4)
-23.7%
121.0
-45.7%
(1.4)
-56.1%
119.6
17.2%
-45.6%
946.6
0.13
0.76
-45.6%
(1) Total may be different from the addition of the four countries because of intercountry eliminations.
(2) Corporate expenses partially reclassified to the operations.
(3) Operating Income considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS.
(4) Adjusted EBITDA considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS, plus Depreciation.
(5) Other income (expenses) includes the following lines of the income statement by function included in the published financial statements in the Financial
Market Comission: "Other income", "Other expenses" and "Other (loss) gains".
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 18 of 23
Embotelladora Andina S.A.
Twelve Months Results for the period ended December 31, 2020. Reported figures, IFRS GAAP.
(In nominal million Chilean pesos, except per share)
Chilean
Operations
Brazilian
Operations
January-December 2020
Argentine
Operations
Paraguay
Operations
Total (1)
Chilean
Operations
Brazilian
Operations
January-December 2019
Argentine
Operations
Paraguay
Operations
Total (1)
% Ch.
Volume total beverages
(Million UC)
Transactions (Million)
Net sales
Cost of sales
Gross profit
Gross margin
Distribution and
administrative expenses
Corporate expenses (2)
Operating income (3)
Operating margin
Adjusted EBITDA (4)
Adjusted EBITDA margin
Financial (expenses)
income (net)
Share of (loss) profit of
investments accounted for
using the equity method
Other income (expenses)
(5)
Results by
readjustement unit
and exchange rate
difference
Net income before
income taxes
Income tax expense
Net income
Net income attributable to
non-controlling interests
Net income attributable
to equity holders of the
parent
Net margin
WEIGHTED AVERAGE
SHARES
OUTSTANDING
EARNINGS PER SHARE
EARNINGS PER ADS
236.3
1,104.2
644,762
(392,720)
252,041
39.1%
265.1
1,263.2
580,063
(373,445)
206,618
35.6%
166.7
688.7
318,828
(172,066)
146,762
46.0%
66.4
345.7
734.6
3,401.8
239.6
1,314.2
259.3
1,360.7
178.2
843.5
69.3
414.0
746.4
3,932.4
157,153
(86,792)
70,361
44.8%
1,698,281
(1,022,499)
675,783
39.8%
608,952
(359,466)
249,486
41.0%
619,321
(384,839)
234,482
37.9%
394,636
(214,447)
180,189
45.7%
158,892
(92,368)
66,524
41.9%
1,779,025
(1,048,344)
730,681
41.1%
-1.6%
-13.5%
-4.5%
-2.5%
-7.5%
(160,876)
(117,623)
(120,729)
(31,516)
(430,744)
(161,508)
(144,297)
(148,150)
(34,073)
(488,028)
-11.7%
91,166
14.1%
141,437
21.9%
88,995
15.3%
116,335
20.1%
26,032
8.2%
48,928
15.3%
38,845
24.7%
49,259
31.3%
(5,427)
239,612
14.1%
350,532
20.6%
(39,827)
2,229
(9,074)
(14,917)
178,023
(54,905)
123,117
(1,118)
122,000
7.2%
946.6
128.9
773.3
87,978
14.4%
134,083
22.0%
90,185
14.5%
120,131
19.4%
32,039
8.1%
57,408
14.5%
32,451
20.4%
42,119
26.5%
(4,872)
237,781
13.4%
348,869
19.6%
11.4%
0.8%
0.5%
(1,053)
3681.4%
(3,415)
-165.3%
14,767
-161.4%
(11,667)
27.9%
236,413
(61,167)
175,246
-24.7%
-10.2%
-29.7%
(1,524)
-26.7%
173,722
9.8%
-29.8%
946.6
183.5
1,101.2
-29.8%
(1) Total may be different from the addition of the four countries because of intercountry eliminations.
(2) Corporate expenses partially reclassified to the operations.
(3) Operating Income considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS.
(4) Adjusted EBITDA considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS, plus Depreciation.
(5) Other income (expenses) includes the following lines of the income statement by function included in the published financial statements in the Financial
Market Comission: "Other income", "Other expenses" and "Other (loss) gains".
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 19 of 23
Embotelladora Andina S.A.
Twelve Months Results for the period ended December 31, 2020. Reported figures, IFRS GAAP.
(In nominal million US$, except per share)
Exch. Rate:
791.99
Exch. Rate:
703.46
Chilean
Operations
Brazilian
Operations
January-December 2020
Argentine
Operations
Paraguay
Operations
Total (1)
Chilean
Operations
Brazilian
Operations
January-December 2019
Argentine
Operations
Paraguay
Operations
Total (1)
% Ch.
236.3
1,104.2
814.1
(495.9)
318.2
39.1%
265.1
1,263.2
732.4
(471.5)
260.9
35.6%
166.7
688.7
448.5
(242.0)
206.4
46.0%
66.4
345.7
198.4
(109.6)
88.8
44.8%
734.6
3,401.8
2,189.8
(1,315.4)
874.4
39.9%
239.6
1,314.2
865.7
(511.0)
354.7
41.0%
259.3
1,360.7
880.4
(547.1)
333.3
37.9%
178.2
843.5
527.1
(286.4)
240.7
45.7%
69.3
414.0
225.9
(131.3)
94.6
41.9%
746.4
3,932.4
2,495.3
(1,472.1)
1,023.2
41.0%
-1.6%
-13.5%
-12.2%
-10.6%
-14.5%
(203.1)
(148.5)
(169.8)
(39.8)
(561.3)
(229.6)
(205.1)
(197.9)
(48.4)
(681.0)
-17.6%
115.1
14.1%
178.6
21.9%
112.4
15.3%
146.9
20.1%
36.6
8.2%
68.8
15.3%
49.0
24.7%
62.2
31.3%
125.1
14.4%
190.6
22.0%
128.2
14.5%
170.8
19.4%
42.8
8.1%
76.7
14.5%
46.1
20.4%
59.9
26.5%
(6.9)
306.3
14.0%
449.6
20.5%
(50.2)
2.8
(12.0)
(19.1)
227.7
(70.4)
157.3
(1.4)
155.9
7.1%
(6.9)
335.3
13.4%
491.0
19.7%
-1.1%
-8.6%
-8.4%
(1.7)
2856.3%
(2.8)
21.5
-201.6%
-156.0%
(16.8)
14.1%
335.5
-32.1%
(86.4)
-18.4%
249.1
-36.9%
(2.2)
-34.9%
247.0
9.9%
-36.9%
Volume total beverages
(Million UC)
Transactions (Million)
Net sales
Cost of sales
Gross profit
Gross margin
Distribution and administrative
expenses
Corporate expenses (2)
Operating income (3)
Operating margin
Adjusted EBITDA (4)
Adjusted EBITDA margin
Financial (expenses) income
(net)
Share of (loss) profit of
investments accounted for
using the equity method
Other income (expenses) (5)
Results by readjustement unit
and exchange rate difference
Net income before income
taxes
Income tax expense
Net income
Net income attributable to non-
controlling interests
Net income attributable to
equity holders of the parent
Net margin
WEIGHTED AVERAGE
SHARES OUTSTANDING
EARNINGS PER SHARE
EARNINGS PER ADS
(1) Total may be different from the addition of the four countries because of intercountry eliminations.
(2) Corporate expenses partially reclassified to the operations.
(3) Operating Income considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS.
(4) Adjusted EBITDA considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS, plus Depreciation.
(5) Other income (expenses) includes the following lines of the income statement by function included in the published financial statements in the Financial
Market Comission: "Other income", "Other expenses" and "Other (loss) gains".
946.6
0.26
1.57
946.6
0.16
0.99
-36.9%
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 20 of 23
Embotelladora Andina S.A.
Fourth Quarter Results for the period ended December 31, 2020.
(In local nominal currency of each period, except Argentina (3))
October-December 2020
Chile Million
Ch$
Nominal
Brazil Million
R$
Nominal
Argentina (3)
Million AR$
IAS29
Total beverages volume (Million UC)
Transactions (Million)
Net sales
Cost of sales
Gross profit
Gross margin
Distribution and administrative expenses
76.6
381.0
217,378
(134,352)
83,026
38.2%
(38,885)
78.6
375.4
1,139.3
(719.0)
420.3
36.9%
(182.6)
Paraguay
Million G$
Nominal
20.6
106.9
52.1
216.1
11,951.1
(6,347.1)
5,604.0
46.9%
(4,343.9)
424,089
(227,914)
196,175
46.3%
(64,306)
October-December 2019
Chile Million
Ch$
Nominal
Brazil Million
R$
Nominal
Argentina (3)
Million AR$
IAS 29
69.1
366.7
177,794
(98,794)
79,000
44.4%
(38,618)
73.4
373.6
999.3
(603.0)
396.2
39.7%
(211.4)
Paraguay
Million G$
Nominal
21.0
121.6
51.4
241.3
12,501.0
(6,763.6)
5,737.4
45.9%
(4,708.5)
426,512
(245,063)
181,449
42.5%
(86,425)
237.7
20.3%
44,141
Operating income (1)
Operating margin
Adjusted EBITDA (2)
Adjusted EBITDA margin
(1) Operating Income considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS.
(2) Adjusted EBITDA considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS, plus Depreciation.
(3) Argentina 2020 figures are presented in accordance to IAS 29, in December 2020 currency. 2019 figures are also presented in accordance to IAS 29, in
December 2020 currency.
131,869
155,286
2,028.8
1,260.1
1,832.9
1,028.9
40,382
51,668
60,782
22.8%
29.1%
18.5%
24.6%
17.0%
36.6%
20.9%
22.7%
31.1%
10.5%
14.7%
28.0%
184.8
228.2
280.5
8.2%
95,023
22.3%
116,690
27.4%
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 21 of 23
Embotelladora Andina S.A.
Twelve Months Results for the period ended December 31, 2020.
(In local nominal currency of each period, except Argentina (3))
Total beverages volume (Million UC)
Transactions (Million)
Net sales
Cost of sales
Gross profit
Gross margin
Distribution and administrative expenses
January-December 2020
January-December 2019
Chile Million
Ch$
Nominal
Brazil Million
R$
Nominal
Argentina (3)
Million AR$
IAS29
Paraguay
Million G$
Chile Million
Ch$
Nominal
Nominal
Brazil Million
R$
Nominal
Argentina (3)
Million AR$
IAS 29
Paraguay
Million G$
Nominal
236.3
1,104.2
644,762
(392,720)
252,041
39.1%
(160,876)
265.1
1,263.2
3,757.6
(2,417.8)
1,339.8
35.7%
(753.4)
166.7
688.7
66.4
345.7
239.6
1,314.2
37,737.3
(20,366.2)
17,371.1
46.0%
(14,289.9)
1,351,909
(745,803)
606,106
44.8%
(268,519)
608,952
(359,466)
249,486
41.0%
(161,508)
259.3
1,360.7
3,466.6
(2,155.1)
1,311.4
37.8%
(808.6)
178.2
843.5
69.3
414.0
42,931.6
(23,329.3)
19,602.4
45.7%
(16,116.9)
1,405,584
(817,135)
588,449
41.9%
(301,668)
586.4
14.1%
91,166
Operating income (1)
Operating margin
Adjusted EBITDA (2)
Adjusted EBITDA margin
(1) Operating Income considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS.
(2) Adjusted EBITDA considers Net Sales, Cost of Sales, Distribution Costs, and Administrative Expenses included in the Financial Statements filed with the
Chilean Financial Market Comission and determined in accordance to IFRS, plus Depreciation.
(3) Argentina 2020 figures are presented in accordance to IAS 29, in December 2020 currency. 2019 figures are also presented in accordance to IAS 29, in
December 2020 currency.
337,587
426,706
134,083
141,437
5,791.2
3,485.4
3,081.3
6,245.3
87,978
19.3%
15.6%
14.4%
25.0%
14.5%
31.6%
20.3%
15.3%
22.0%
21.9%
14.5%
502.8
763.2
670.8
8.2%
8.1%
286,781
20.4%
372,543
26.5%
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 22 of 23
ASSETS
Cash + Time deposits + market. Securit.
Account receivables (net)
Inventories
Other current assets
Total Current Assets
Property, plant and equipment
Depreciation
Total Property, Plant, and Equipment
Investment in related companies
Goodwill
Other long term assets
Total Other Assets
TOTAL ASSETS
LIABILITIES & SHAREHOLDERS' EQUITY
Short term bank liabilities
Current portion of bonds payable
Other financial liabilities
Trade accounts payable and notes payable
Other liabilities
Total Current Liabilities
Long term bank liabilities
Bonds payable
Other financial liabilities
Other long term liabilities
Total Long Term Liabilities
Minority interest
Stockholders' Equity
Embotelladora Andina S.A.
Consolidated Balance Sheet
(In million Chilean pesos)
12-31-2020
12-31-2019
Variation %
12-31-2019
449,836
205,897
127,973
13,593
797,298
1,398,055
(792,479)
605,576
87,956
98,326
858,908
1,045,190
157,915
201,913
147,641
26,004
533,474
1,620,343
(897,624)
722,719
99,867
121,222
913,667
1,134,755
2,448,064
2,390,948
184.9%
2.0%
-13.3%
-47.7%
49.5%
-13.7%
-11.7%
-16.2%
-11.9%
-18.9%
-6.0%
-7.9%
2.4%
12-31-2020
12-31-2019
Variation %
12-31-2019
799
18,705
19,063
269,988
69,502
378,056
4,000
918,921
66,908
248,618
1,238,448
1,438
21,605
17,550
297,339
73,726
411,658
909
718,963
23,455
267,059
1,010,386
20,379
20,254
811,181
948,650
-44.4%
-13.4%
8.6%
-9.2%
-5.7%
-8.2%
339.8%
27.8%
185.3%
-6.9%
22.6%
0.6%
-14.5%
2.4%
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
2,448,064
2,390,948
Financial Highlights
(In million Chilean pesos)
ADDITIONS TO FIXED ASSETS
Chile
Brazil
Argentina
Paraguay
Total
Accumulated
12-31-2020
12-31-2019
26,488
19,138
16,508
20,519
82,653
56,141
22,737
22,011
15,283
116,171
Date: 02/23/2021 03:21 PM
Client: 21-7582-3_Embotelladora Andina S.A._6-K
Toppan Merrill
Project: 21-7582-3 Form Type: 6-K
File: tm217582d3_6k.htm Type: 6-K Pg: 23 of 23
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
Santiago, February 23, 2021
EMBOTELLADORA ANDINA S.A.
By: /s/ Andrés Wainer
Name: Andrés Wainer
Title: Chief Financial Officer
GRI TABLE CONTENTS
of
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GENERAL CONTENTS
ORGANIZATIONAL PROFILE
GRI 102-1
Name of the organization
Chapter 1: We are Coca-Cola Andina, paragraph:
About Coca-Cola Andina
Corporate name: Embotelladora Andina S.A.
Type of corporation: Open stock corporation.
Legal address: Miraflores 9113, comuna de
Renca, Santiago.
Rol Único Tributario (Chilean Tax ID No.):
91.111.000-8.
GRI 102-2
a. Description of the activities of the
organization
b. Principal brands, products and services
Chapter 3: A Total Beverage Company,
paragraph: Broad Portfolio, Channels and
Geography
Chapter 8: Our Company, paragraph:
Main products commercialized by Operation
GRI 102-3
Location of headquarters
Corporate offices Av. Miraflores 9113, Piso 7,
Renca, Santiago de Chile.
GRI 102-4
Location of operations:
Indicate in how many countries the organization
operates and name those countries where the
organization carries out significant operations
or that have a specific relevance to the
sustainability issues that are the subject of
the report
Chapter 3: A Total Beverage Company,
paragraph: Broad Portfolio, Channels
and Geography, subparagraph: Breadth of
Geographies
Chapter 8: Our Company, paragraph: Properties
and facilities
Argentina: Ruta Nacional 19, Km 3,7, Córdoba.
Brazil: Rua André Rocha 2299, Taquara,
Jacarepaguá, Rio de Janeiro.
Chile: Miraflores 9113, Renca, Santiago.
Paraguay: Acceso Sur, Ruta Ñemby, Km 3,1
-Barcequillo-, San Lorenzo, Asunción.
GRI 102-5
Ownership and legal form
Chapter 1: We are Coca-Cola Andina, paragraph:
About Coca-Cola Andina
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 00121. 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 1991. An
ADR is equivalent to six
shares of common stock. The mnemonics codes
for the NYSE are AKO/A
and AKO/B.
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 3: A Total Beverage Company,
paragraph: Broad Portfolio, Channels and
Geography; subparagraph: Channel Amplitude y
Breadth of Geographies
Chapter 8: Our Company, paragraph: Main
clients and suppliers by country
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GENERAL CONTENTS
ORGANIZATIONAL PROFILE
GRI 102-7
Organization size
GRI 102-8
Information about employees and other
workers
GRI 102-9
Supply chain
Chapter 1: We are Coca-Cola Andina, paragraph:
2020 highlights
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Organizational
design with diversity and inclusion
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Work Environment - Personnel
Chapter 2: Sustainable Value Creation
Strategy,
paragraph: Materiality and Relationships with
our Stakeholders, subparagraph: Value Chain
GRI 102-10
Significant changes in the organization and its
supply chain
GRI 102-11
Precautionary principle or approach
Chapter 6: Corporate Governance, paragraph:
Risk Management, Active, Flexible and Dynamic
GRI 102-12
External initiatives
GRI 102-13
Association membership
Chapter 1: Flexibility and commitment,
paragraph: Commitment with the Community
Closure of the Coquimbo production plant,
redirecting the space to distribution tasks.
Andina has a formal risk management and
control process that incorporates both the
direct and indirect risks of the entity within
the process of quantification, monitoring
and communication; guided by national and
international principles, guidelines and
recommendations; and whose terms have been
embodied in the Corporate Risk Management
and Control Policy, the text of which was
approved by the Company's Board. Without
prejudice to what has been noted, Andina also
has an Internal Audit unit responsible for
verifying the effectiveness and compliance of
the policies, procedures, controls and codes
approved by the Board, and which reports
directly to it. In addition, Andina has a Code
of Ethics, which defines the principles and
guidelines that guide the actions of all its
staff, independent of the contractual link with
it, serving as a conduct guide to employees,
contractors, consultants and members of the
Board. This Code of Ethics is delivered to all
staff and Board of Directors of the Company,
and is reviewed periodically, and is available
to the public on the Company's website (www.
koandina.com).
We participate in several external initiatives of
an economic, social and environmental nature,
all voluntary and in order to improve our
processes and share our experiences. Coca-Cola
Andina adheres to the principles and initiatives
involving The Coca-Cola Company and the Coca-
Cola System. Among them, the principles of the
Global Compact and the Declaration of Human
Rights of the United Nations.
Embotelladora Andina S.A. signed its accession
to the United Nations Global Compact in Chile in
2011, which it maintained during 2020.
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GENERAL CONTENTS
STRATEGY
GRI 102-14
Statement by senior executives responsible for
decision-making
Message from the Chairman of the Board of
Directors
Chief Executive Officer Interview
GRI 102-15
Main impacts, risks and opportunities
Chapter 2: Sustainable value creation strategy
Chapter 6: Corporate Governance, paragraph:
Risk Management, Active, Flexible and Dynamic
ETHICS AND INTEGRITY
GRI 102-16
Values, principles, standards and standards
of conduct
Chapter 2: Sustainable Value Creation
Strategy, paragraph: Strategic framework
GRI 102-17
Advisory mechanisms and ethical concerns
Chapter 6: Corporate Governance, paragraph:
Ethics and compliance
GOVERNANCE
GRI 102-18
Governance structure
GRI 102-19
Delegation of authority
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model
Chapter 1: We are Coca-Cola Andina, paragraph:
Board of Directors and Executive Team
GRI 102-20
Executive-level responsibility for economic,
environmental and social issues
Chapter 1: We are Coca-Cola Andina, paragraph:
Board of Directors and Executive Team
Vision: Lead the beverage market being
recognized for our excellence management,
people and welcoming culture. Mission: Add
value by growing sustainably, refreshing our
consumers and sharing moments of optimism
with our customers. Values: integrity,
teamwork, attitude, austerity, results
oriented, focus on the client.
The Board of Directors of Andina has sufficient
powers and resources to hire the expert
advice it deems appropriate for the proper
management of the Company. In addition,
the Company has a Directors’ Committee,
which also has its own budget to decide to
hire advisors independently. Commitment to
sustainable value creation within a framework
of transparency, ethics and business
responsibility is a strategic objective of
our Corporate Governance. For more details
review: The Corporate Crime Prevention Policy
and The Anonymous Complaints Procedure
Culture, Ethics and Sustainability Committee:
Among its duties and responsibilities are:
receive, know and investigate reports of
irregularities referred to in Law No. 20.393 on
Crime Prevention (and subsequent amendments)
and recommend actions to be followed in each
case; establish and develop procedures aimed
at promoting the ethical behavior of Company
employees; monitor compliance with the
provisions of the Code of Ethics, resolve the
queries and conflicts that its application may
generate; and establish mechanisms for the
dissemination of the Code of Ethics and general
ethical matters.
Corporate Crime Prevention Policy:
http://www.koandina.com/uploads/Polit.%20Corp.
Prevencion%20de%20delitos%20ley%2020.393.pdf
Code of Ethics:
http://www.koandina.com/uploads/Adjuntos/
CodigodeEticav1 _ 0.pdf
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
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GENERAL CONTENTS
GOVERNANCE
GRI 102-21
Consultation of stakeholders on economic,
environmental and social issues
Chapter 2: Sustainable Value Creation Strategy,
paragraph: Materiality and Relationships
with our Stakeholders, subparagraph: 2020
Materiality Matrix
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Board Sessions and Activities
Coca-Cola Andina performs an update of the
materiality study every three years. The
latest was made in 2018 and each result is
presented to the Ethics and Sustainability
Committee for validation. However, due to the
complex scenario presented by the pandemic,
its updating is done using secondary sources.
GRI 102-22
Composition of the highest governing body and
its committees
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model
GRI 102-23
President of the highest governing body
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model
Juan Claro González (Chairman of the Board),
Member of the Board of Directors since 2001.
GRI 102-24
Nomination and selection of the highest
governing body
GRI 102-25
Conflicts of interest
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Efficacy of the Board of Directors
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model
GRI 102-26
GRI 102-27
Role of the highest governing body in the
selection of objectives, values and strategy
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model
Collective knowledge of the highest governing
body
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Board of Directors Experience
GRI 102-28
Performance evaluation of the highest
governing body
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Self-evaluation of the Board of Directors
There is a policy that indicates how to manage
conflicts between the interests of individuals
and/or third parties involved in decision-
making, with the interests of the Company.
Code of Ethics:
http://www.koandina.com/uploads/Adjuntos/
CodigodeEticav1 _ 0.pdf
Andina has a training mechanism for its
members, which includes both talks and
exhibitions, as well as the delivery of
materials. For this purpose, a timetable is
set in March each year, which will determine
the subjects for which a knowledge update is
recommended, and a training agenda in which at
least the following topics will be covered:
- Corporate Governance best practices that
have been adopted in other entities, locally or
internationally.
- Advances during the last year, in
matters regarding inclusion, diversity
and sustainability reports, locally or
internationally.
- Risk tools, including sustainability, which
have been implemented during the last year
locally or internationally.
- Most relevant failures, sanctions or
pronouncements, occurring during the last
year, locally or internationally related
to care, reserve, loyalty, diligence and
information duties.
- Review of situations that shape a conflict of
interest in the Board of Directors, and the ways
in which they can be avoided or resolved in the
best social interest
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GENERAL CONTENTS
GOVERNANCE
GRI 102-29
Identification and management of economic,
environmental and social impacts
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Committees
GRI 102-30
Effectiveness of risk management processes
Chapter 6: Corporate Governance, paragraph:
Risk Management, Active, Flexible and Dynamic
GRI 102-31
Assessment of economic, environmental and
social issues
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Committees
Chapter 6: Corporate Governance, paragraph:
Risk Management, Active, Flexible and Dynamic
GRI 102-32
Role of the highest governing body in
sustainability reporting
GRI 102-33
Communication of critical concerns
GRI 102-34
Nature and total number of critical concerns
GRI 102-35
Remuneration policies
Chapter 2: Sustainable Value Creation Strategy,
paragraph: Materiality and Relationships
with our Stakeholders, subparagraph: 2020
Materiality Matrix
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Board Sessions and Activities
Chapter 2: Sustainable Value Creation Strategy,
paragraph: Materiality and Relationships
with our Stakeholders, subparagraph: 2020
Materiality Matrix
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Board Sessions and Activities
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Remuneration - Board of Directors
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Principal Officers - Remuneration
Andina has a Risk Management unit, which
reports to the Corporate Finance Management
Division and has proven to function properly.
The Company believes that this issue is given
greater focus with this structure. However,
this Unit makes quarterly presentations to the
Company's Board of Directors.
Since the Company understands that
sustainability requires a plan to be maintained
in the long term, an annual meeting has been
defined with the head of the Sustainability
Unit, reviewing the effects and progress made
on work plans, and if necessary, reviewing
and adjusting guidelines on sustainable
development pillars , as well as the
dissemination made to surveyed stakeholders.
The Integrated Annual Report must be approved
by the Board of Directors; it is reviewed and
approved at the session prior to the General
Shareholders’ Meeting, which also pronounces
on and approves the Report
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 master 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 media.
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GENERAL CONTENTS
GOVERNANCE
GRI 102-36
Process for determining remuneration
GRI 102-37
Involvement of stakeholders in remuneration
GRI 102-38
Annual total compensation ratio
GRI 102-39
Percentage increase in annual total
compensation ratio
STAKEHOLDER PARTICIPATION
GRI 102-40
List of stakeholder groups
GRI 102-41
Collective bargaining agreements
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Remuneration - Board of Directors
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Principal Officers - Remuneration
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Remuneration - Board of Directors
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model, subparagraph:
Principal Officers - Remuneration
Chapter 2: Sustainable Value Creation Strategy,
paragraph: Materiality and Relationships with
our Stakeholders
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Work Environment - People
Development
GRI 102-42
Identifying and selecting stakeholders
GRI 102-43
Approach to stakeholder engagement
GRI 102-44
Key topics and concerns that have been raised
through stakeholder engagement
Chapter 2: Sustainable Value Creation Strategy,
paragraph: Materiality and Relationships with
our Stakeholders
Chapter 2: Sustainable Value Creation Strategy,
paragraph: Materiality and Relationships
with our Stakeholders, subparagraph: 2020
Materiality Matrix
Chapter 2: Sustainable Value Creation Strategy,
paragraph: Materiality and Relationships
with our Stakeholders, subparagraph: 2020
Materiality Matrix
Confidential information for Embotelladora
Andina.
Confidential information for Embotelladora
Andina.
At Coca-Cola Andina we respect and support
the right to freedom of association in all the
countries where we operate. The Company
respects the right of its employees to form
a union, or to join the union or not, without
fear of reprisals or being subjected to
intimidation or harassment. When employees
are represented by a legally recognized
union, we are committed to establishing a
constructive dialogue with their freely
elected representatives. The Company
undertakes to negotiate in good faith with such
representatives.
Human Rights Policy:
http://www.koandina.com/uploads/paginas/Politica%20
de%20Derechos%20Humanos%20v1.0.pdf
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GENERAL CONTENTS
REPORTING PRACTICES
GRI 102-45
Entities included in the consolidated financial
statements
GRI 102-46
Defining report content and topic Boundaries
Chapter 1: We are Coca-Cola Andina, paragraph:
About the 2020 Integrated Report
This annual report consolidates the
information of the operations of the countries:
Argentina, Brazil, Chile and Paraguay. The
consolidated financial statements include
all assets, liabilities, income, expenses
and cash flows of the Company and its
subsidiaries after eliminating the balances and
transactions between the Group's entities, of
the subsidiaries included in the consolidation
is as follows:
19.111.110-K Abisa Corp. S.A.
Foreign Aconcagua Investing Ltda.
96.812.970-1 Andina Bottling Investments S.A.
96.972.760-9 Andina Bottling Investments Dos
S.A.
Foreign Andina Empaques Argentina S.A.
96.836.710-1 Andina Inversiones Societarias S.A.
76.070.106-7 Embotelladora Andina Chile S.A.
Foreign Embotelladora del Atlántico S.A.
96.701.990-0 Envases Central S.A.
96.971.280-6 Inversiones Los Andes Ltda.
Foreign Paraguay Refrescos S.A.
76.276.601-3 Red de Transportes Comerciales
Ltda.
Foreign Rio de Janeiro Refrescos Ltda.
78.136.910-1 Servicios Multivending Ltda.
78.861.790-9 Transportes Andina Refrescos
Ltda.
96.928.120-7 Transportes Polar S.A.
76.389.720-6 Vital Aguas S.A.
93.899.000-k Vital Jugos S.A.
For the elaboration of this Integrated Report
we formed a diverse team, composed of people
from multiple areas of our Corporate Office.
Additionally, it was reviewed and approved
by the Chief Financial Officer, the Chief
Executive Officer and the Board of Directors
of the Company. The Integrated Annual
Report is prepared in accordance with: GRI
Standards, International Integrate Reporting
Council, General Standard No. 30 of the CMF ,
Accountability AA1000-APS 2008 and the SDGs.
GRI 102-47
List of material topics
Chapter 2: Sustainable Value Creation Strategy,
paragraph: Materiality and Relationships
with our Stakeholders, subparagraph: 2020
Materiality Matrix
GRI 102-48
Restatements of information
GRI 102-49
Changes in reporting
It was not performed this year
It was not performed this year
GRI 102-50
Reporting period
Between January 1, 2020 and December 31, 2020.
GRI 102-51
Date of most recent report
GRI 102-52
Reporting cycle
2019
Annually
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GENERAL CONTENTS
REPORTING PRACTICES
GRI 102-53
Contact point for questions regarding the
report;
GRI 102-54
Statement of reporting in accordance with the
GRI Standards
Sustainability contact details
Consuelo Barrera | informesanuales@
koandina.com
Ruta Nacional 19, Km. 3,7, Córdoba, Argentina
This report has been prepared in accordance
with the Exhaustive option of the GRI Standards
GRI 102-55
GRI content index
GRI Table
GRI 102-56
External verification
Verification Letter
Review Limited and Independent Verification
Report of the Integrated Annual Report of
Coca-Cola Andina S.A. 2020.
MANAGEMENT APPROACH
GRI 103-1
Explanation of the material topic and its
Boundary
Chapter 2: Sustainable Value Creation Strategy
paragraph: Management approach
GRI 103-2
Management approach and its components
Chapter 2: Sustainable Value Creation Strategy
paragraph: Management approach
GRI 103-3
Management approach assessment
Chapter 2: Sustainable Value Creation Strategy
paragraph: Management approach
ECONOMIC CONTENT
ECONOMIC PERFORMANCE
GRI 201-1
GRI 201-2
GRI 201-3
Direct economic value generated and
distributed
Chapter 2: Sustainable Value Creation Strategy
paragraph: 2020 Generated and Distributed
Economic Value
Financial implications and other risks and
opportunities due to climate change
Chapter 1: Our Value Chain, paragraph:
Sustainable Packaging
Chapter 1: Our Value Chain, paragraph: Energy
Management
Risks/opportunities are detected and
addressed through the Risk Management
process. Reviewed annually and audited to
ensure proper mitigation.
Defined benefit plan obligations and other
retirement plans
The Company complies with the system of
planned obligations in force in all countries
where it has operation.
Andina does not receive financial assistance
from the government.
GRI 201-4
Financial assistance received from government
MARKET PRESENCE
GRI 202-1
Ratios of standard entry level wage by gender
compared to local
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Organizational
design with diversity and inclusion
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Work Environment - People
Development
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ECONOMIC CONTENT
MARKET PRESENCE
GRI 202-2
Proportion of senior management hired from
the local community
INDIRECT ECONOMIC IMPACTS
GRI 203-1
Infrastructure investments and services
supported
GRI 203-2
Significant indirect economic impacts
PROCUREMENT PRACTICES
GRI 204-1
Proportion of spending on local suppliers.
ANTI-CORRUPTION
GRI 205-1
Operations assessed for risks related to
corruption
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Organizational
design with diversity and inclusion -
Nationality
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Work environment - Diversity
and inclusion
Chapter 1: Flexibility and commitment,
paragraph: Commitment with the Community
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Comunidad
Chapter 1: Flexibility and commitment,
paragraph: Commitment with the Community
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Comunidad
Chapter 1: Flexibility and commitment,
paragraph: Commitment with our Suppliers
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Suppliers
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model: Risk Management,
Active, Flexible and Dynamic
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Corporate Crime Prevention Policy:
http://www.koandina.com/uploads/Polit.%20Corp.
Prevencion%20de%20delitos%20ley%2020.393.pdf
Code of Ethics:
http://www.koandina.com/uploads/Adjuntos/
CodigodeEticav1 _ 0.pdf
Embotelladora Andina S.A. and its Subsidiaries
will ensure that they maintain an appropriate
organization, management and supervision
crime prevention model referred to in Chilean
Law No. 20.393, called "Crime Prevention Model
of Embotelladora Andina S.A.", through which it
will promote the prevention of the commission
of crimes of Money Laundering, Financing of
Terrorism, Bribery, Receiving Stolen Property,
and all crimes incorporated into this law in the
future. The Coca-Cola Company conducts audits
and reviews of compliance, ethics and crime
prevention randomly among all our facilities.
On the other hand, all our staff know the code
of ethics and the anti-corruption model, these
elements are mandatory content in inductions
to the company for both collaborators and
directors.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
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ECONOMIC CONTENT
ANTI-CORRUPTION
GRI 205-2
Communication and training about anti-
corruption policies and procedures
Chapter 6: Corporate Governance, paragraph:
Corporate Governance Model
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: People Development
GRI 205-3
Confirmed incidents of corruption and actions
taken;
ANTI-COMPETITIVE BEHAVIOR
GRI 206-1
TAXES
GRI 207-1
Legal actions for anti-competitive behavior,
anti-trust, and monopoly practices
Approach to tax
Chapter 2: Sustainable Value Creation Strategy
paragraph: 2020 Generated and Distributed
Economic Value
GRI 207-2
Tax governance, control, and risk management
Chapter 2: Sustainable Value Creation Strategy
paragraph: 2020 Generated and Distributed
Economic Value
Embotelladora Andina S.A. and its Subsidiaries
will ensure that they maintain an appropriate
organization, management and supervision
crime prevention model referred to in Chilean
Law No. 20.393, called "Crime Prevention Model
of Embotelladora Andina S.A.", through which it
will promote the prevention of the commission
of crimes of Money Laundering, Financing of
Terrorism, Bribery, Receiving Stolen Property,
and all crimes incorporated into this law in
the future.
The Coca-Cola Company conducts audits and
reviews of compliance, ethics and crime
prevention randomly among all our facilities
every year. On the other hand, all our staff
know the code of ethics and the anti-corruption
model, these elements are mandatory
content in inductions to the company for both
collaborators and directors.
All complaints are received through the Ethics
Point channel. - In review from 2019 and closed
in 2020: 11
- Pending from 2019: 0
- Received in 2020: 72 of which 18 are closed
and 21 are still in treatment
Embotelladora Andina does not file or have
registered legal actions against it concerning
unfair competition, antitrust practices and/or
against free competition in 2020.
The tax strategy of Coca-Cola Andina and its
subsidiaries is aligned with the strategy of the
business and defines the strategic objectives
in tax matters, pursuing the firm commitment
to support the creation, construction and
protection of shareholder value, giving strict
compliance with current legal regulations,
ensuring that all decisions are considered
with the utmost diligence and professional
care , promoting a proactive and transparent
relationship with tax authorities and ensuring
that corporate and social responsibilities are
given consideration, seeking the progress not
only of the company, but also of the employees,
customers, shareholders and the community as
a whole, so that the value it creates in each of
the jurisdictions in which it operates translates
and corresponds in contribution to them, gaining
the trust and loyalty of stakeholders.
The Directors’ Committee approves the tax criteria
and principles, which govern the company's tax
strategy, and which must be implemented and
followed in all countries in which we operate. Both
the defined strategy and the fiscal governance model,
which is based on adequate, efficient and global tax
compliance, emphasizes the prevention of inherent
risks, including those that negatively impact the
reputation of the company and its subsidiaries.
Corporate Crime Prevention Policy:
http://www.koandina.com/uploads/Polit.%20Corp.
Prevencion%20de%20delitos%20ley%2020.393.pdf
Code of Ethics:
http://www.koandina.com/uploads/Adjuntos/
CodigodeEticav1 _ 0.pdf
Corporate tax policy:
http://www.koandina.com/uploads/Politica%20
Corporativa%20Tributaria%20v2.0.pdf
Corporate tax policy:
http://www.koandina.com/uploads/Politica%20
Corporativa%20Tributaria%20v2.0.pdf
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GRI Code
Content
Reference in Report
Response
Links
ECONOMIC CONTENT
TAXES
GRI 207-3
Stakeholder engagement and management
concerns related to tax
Chapter 2: Sustainable Value Creation Strategy
paragraph: 2020 Generated and Distributed
Economic Value
It aims to meet the growth goal, acting with
responsibility and safeguarding the long-term
interest of all our stakeholders, including
employees, customers, suppliers, brand
partners, shareholders, governments and
communities in which we operate.
Corporate tax policy:
http://www.koandina.com/uploads/Politica%20
Corporativa%20Tributaria%20v2.0.pdf
GRI 207-4
Country by country reporting
See Audited Consolidated Financial Statements
ENVIRONMENTAL CONTENT
MATERIALS
GRI 301-1
Materials used by weight and volume
Chapter 1: Our Value Chain, paragraph:
Sustainable Packaging
GRI 301-2
Recycled input materials
GRI 301-3
Reclaimed products and their packaging
materials, by category
ENERGY
GRI 302-1
Energy consumption within the organization
GRI 302-2
Energy consumption outside of the organization
GRI 302-3
Energy intensity
GRI 302-4
Reduction of energy consumption
GRI 302-5
Reductions in energy requirements of products
and services
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Sustainable Packaging
Chapter 1: Our Value Chain, paragraph:
Sustainable Packaging
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Sustainable Packaging
Chapter 1: Our Value Chain, paragraph:
Sustainable Packaging
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Sustainable Packaging
Chapter 1: Our Value Chain, paragraph: Energy
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Energy Management
Chapter 1: Our Value Chain, paragraph: Energy
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Energy Management
Chapter 1: Our Value Chain, paragraph: Energy
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Energy Management
Chapter 1: Our Value Chain, paragraph: Energy
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Energy Management
Chapter 1: Our Value Chain, paragraph: Energy
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Energy Management
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Content
Reference in Report
Response
Links
ENVIRONMENTAL CONTENT
WATER AND EFFLUENTS
GRI 303-1
Interactions with water as a shared resource
Chapter 1: Our Value Chain, paragraph: Water
Management
World Resources Institute
https://www.wri.org/resources/data-sets/
aqueduct-30-country-rankings
World Resources Institute
https://www.wri.org/resources/data-sets/aqueduct-30-
country-rankings
GRI 303-2
Management of water discharge-related
impacts.
Chapter 1: Our Value Chain, paragraph: Water
Management
GRI 303-3
Water withdrawal
GRI 303-4
Water discharge
GRI 303-5
Water consumption
Chapter 1: Our Value Chain, paragraph: Water
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Water Management
Chapter 1: Our Value Chain, paragraph: Water
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Water Management
Chapter 1: Our Value Chain, paragraph: Water
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Water Management
BIODIVERSITY
GRI 304-1
Operational sites owned, leased, managed in, or
adjacent to, protected areas and areas of high
biodiversity value outside protected areas.
There are no operations in protected areas at
the close of the report
GRI 304-2
Significant impacts of activities, products and
services on biodiversity
There are no operations in protected areas at
the close of the report
GRI 304-3
Protected or restored habitats
Chapter 1: Our Value Chain, paragraph: Energy
Management, subparagraph: Compensation:
Native trees
GRI 304-4
EMISSIONS
GRI 305-1
IUCN Red List species and national conservation
list species with habitats in areas affected by
operations
Direct (scope 1) GHG emissions
GRI 305-2
Energy indirect (Scope 2) GHG emissions.
Chapter 1: Our Value Chain, paragraph: Energy
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Energy Management
Chapter 1: Our Value Chain, paragraph: Energy
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Energy management
At the close of the report there are no
operations in protected areas, therefore there
are no habitats of protected species in areas
affected by operations.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
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Content
ENVIRONMENTAL CONTENT
EMISSIONS
GRI 305-3
Other indirect (scope 3)GHG emissions
GRI 305-4
GHG emissions intensity
GRI 305-5
Reduction of GHG emissions
GRI 305-6
Emissions of ozone-depleting substances (ODS)
GRI 305-7
Nitrogen oxides (NOX), sulfur oxides (SOX), and
other significant air emissions.
WASTE
GRI 306-1
Waste generation
and significant waste-related impacts
GRI 306-2
Management of
significant waste-related impacts
GRI 306-3
Waste generated
GRI 306-4
Waste diverted from disposal
Reference in Report
Response
Links
Chapter 1: Our Value Chain, paragraph: Energy
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Energy management
Chapter 1: Our Value Chain, paragraph: Energy
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Energy management
Chapter 1: Our Value Chain, paragraph: Energy
Management
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Energy management
Chapter 1: Our Value Chain, paragraph:
Sustainable Packaging
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Sustainable Packaging
Chapter 1: Our Value Chain, paragraph:
Sustainable Packaging
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Sustainable Packaging
Chapter 1: Our Value Chain, paragraph:
Sustainable Packaging
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Sustainable Packaging
Chapter 1: Our Value Chain, paragraph:
Sustainable Packaging
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Sustainable Packaging
Use of refrigerant gases for Andina in 2020
were:
R22: 311 kg
R131: 3,610 kg
101 A: 189 kg
R107: 113 kg
R110A: 110 kg
R-138: 23 kg
R101: 219 kg
Embotelladora Andina did not report NOX and
SOX in 2020 given a methodological change in
the way greenhouse gases were estimated.
However, the methodology for considering such
emissions will be adjusted in future reports.
100% of the waste is transported by third
parties for further treatment. All waste is
treated in its home country.
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Content
ENVIRONMENTAL CONTENT
WASTE
GRI 306-5
Waste directed to disposal
ENVIRONMENTAL COMPLIANCE
GRI 307-1
Non-compliance with environmental laws and
regulations.
SUPPLIER MANAGEMENT
GRI 308-1
New suppliers that were screened using
environmental criteria.
GRI 308-2
Negative environmental impacts on the supply
chain and measures taken
Reference in Report
Response
Links
Chapter 1: Our Value Chain, paragraph:
Sustainable Packaging
Chapter 9: Principal Metrics, paragraph:
Value Chain Efficiency and Productivity,
subparagraph: Sustainable Packaging
Chapter 1: Flexibility and commitment,
paragraph: Commitment with our Suppliers
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Suppliers
Chapter 3: A Total Beverage Company,
paragraph: Broad Portfolio, Channels and
Geography, subparagraph: Grow in low cal
segment
Chapter 1: Our Value Chain, paragraph: Water,
Sustainable Packaging and Energy Management
Chapter 1: Flexibility and commitment,
paragraph: Commitment with our Suppliers
The organization has not identified any
violations of environmental laws or
regulations.
Embotelladora Andina actively manages its
environmental impacts through the work
done under its sustainability pillars: Water
Management, Sustainable Packaging, Energy
Management and Beverage Benefit. For more
details review Chapter 1: Our Value Chain and
Chapter 3: A Total Beverage Company and to
review the work done with Suppliers review the
respective section of Chapter 1: Flexibility and
commitment. In 2020 the main initiatives focused
on: Reducing sugar in products, Light-weighting
(initiatives aimed at reducing the requirements
of packaging materials), increasing recycled
materials in packaging, efficient use of water
and energy and sustainable agriculture.
SOCIAL CONTENT
EMPLOYMENT
GRI 401-1
New employee hires and staff turnover
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Work Environment - Personnel y
People Development
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
GRI Code
Content
Reference in Report
Response
Links
SOCIAL CONTENT
EMPLOYMENT
GRI 401-2
Benefits for full-time employees that are not
given to part-time or temporary employees
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Work environment - Diversity
and inclusion
GRI 401-3
Parental leave
Benefits that are granted to full-time
employees and not granted to part-time
employees, by country:
Argentina: Retiree Accompaniment
Chile: Assistance and health insurance;
Life insurance in addition to the mandatory
legal; Dental plan; Preventive vaccination
programs; Medical check-up; Sports and
recreation program for workers; Discount
agreements with health and pharmacy
institutions; Conferences, workshops and
talks of interest to collaborators and
family group; Scholarships for academic
excellence to children of workers for
university careers; Discounts on the rates of
different educational programs for employees;
Marriage licenses, death of close relatives,
siblings and grandparents above the legal
requirements; Flexible schedule for areas
where operation is not affected; Special
treats; Additional holiday week for heads of
area and higher positions; Casual Friday; Enjoy
holidays on holiday period; Holiday license paid
with holiday plus; Gift of summer and winter
clothing administrative areas; Christmas
party for worker and family; Christmas gift
for children of workers; Extension of leave
for death of indirect family members above
the legal requirements; Home office; Nursery
- Crib room; Housing subsidies; Transportation
service for all personnel; Dining service
(bonused in some %); Contests for children
of collaborators with best GPAs; New Year's
Eve/Christmas Gift; Products available to the
employee for internal consumption; Payment
day (last business day of the previous month
or Friday); Discount on purchase of company
products; Loans; Discount club; Additional for
university or tertiary degree for DCCT workers
; Extraordinary salary advance payment;
Subsidy payment medical licenses 3 first days
not covered by health plan; Optional car/home
insurance with company insurance agreement;
Contribution by the employer to life insurance
and/or incorporate the spouse into the
insurance; Gifts/treat specific celebrations;
Financing recreational activities; Merit income
review; Subsidy payment medical licenses not
covered by health plan in the amount that
exceeds the tax cap; Child pre-university
studies funding and agreed deposit (1+1).
Paraguay: Assistance and health insurance;
Flexible hours for areas where the operation
is not affected (e.g. short Friday); Casual
Friday; Home office; Nursery - Crib room; School
kit, bonus for children under 18 years of age;
Housing subsidies; Retirement gratification;
Loans; Additional for university or tertiary
degree for DCCT workers; Refund of hotel
expenses to the DCCT worker with a cap and
Merit Income Review.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
GRI Code
Content
SOCIAL CONTENT
COMPANY-WORKER RELATIONSHIP
GRI 402-1
Minimum notice periods regarding operational
changes and possible inclusion of these in
collective agreements
OCCUPATIONAL HEALTH AND SAFETY
GRI 403-1
Health and safety management system
Reference in Report
Response
Links
As a general provision, the minimum notice
period is based on local policy definitions in
each country.
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Occupational
safety and health
GRI 403-2
Hazard identification, risk assessment and
incident investigation
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Occupational
safety and health
All plants operate under OHSAS 18001 or ISO
11001 standards, as well as voluntarily
implementing the Behavior-Based Safety
Program.
GRI 403-3
Occupational health services
GRI 403-4
Worker participation, consultations and
communication on occupational health and
safety
GRI 403-5
Training workers on occupational health and
safety
GRI 403-6
Promoting health of workers
GRI 403-7
Prevention and mitigation of occupational
health and safety impacts directly linked by
business relationships.
GRI 403-8
Workers covered by an occupational health
and safety management system
GRI 403-9
Work-related injuries
GRI 403-10
Occupational ailments and illnesses
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Occupational
safety and health
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Occupational
safety and health
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Occupational
safety and health
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Occupational
safety and health
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Occupational
safety and health
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Occupational
safety and health
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph:
Work environment - Health and safety
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Occupational
safety and health
2020 occupational illness frequency rate
was 0.13
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
GRI Code
Content
Reference in Report
Response
Links
SOCIAL CONTENT
TRAINING AND TEACHING
GRI 404-1
Average hours of training per year per
employee, by gender and labor category
GRI 404-2
Programs for upgrading employee skills and
transition assistance programs.
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Work Environment - People
Development
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph:
Leadership and Talent; and Skills, Performance
and Recognition
GRI 404-3
Percentage of employees receiving regular
performance and career development reviews
by gender and professional category
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Work Environment - People
Development
DIVERSITY AND EQUAL OPPORTUNITIES
GRI 405-1
Diversity in governing bodies and employees
GRI 405-2
Ratio of the basic salary and remuneration of
women to men
Chapter 1: We are Coca-Cola Andina, paragraph:
Board of Directors and Executive Team
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Work Environment - Personnel
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Organizational
design with diversity and inclusion
NON-DISCRIMINATION
GRI 406-1
FREEDOM OF ASSOCIATION
GRI 407-1
Incidents of discrimination and corrective
actions taken
Chapter 1: Flexibility and commitment,
paragraph: An Agile Company and Committed
Collaborators, subparagraph: Organizational
design with diversity and inclusion
Operations and suppliers in which the right
to freedom of association and collective
bargaining may be at risk and measures taken
to defend these rights
Chapter 1: Flexibility and commitment,
paragraph: Commitment with our Suppliers
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: People Development
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Anonymous reporting procedure:
http://www.koandina.com/uploads/Proc _ Den _ Anoni.pdf
Code of Ethics:
http://www.koandina.com/uploads/Adjuntos/
CodigodeEticav1 _ 0.pdf
Suppliers and Third Party Code of Ethics:
http://www.koandina.com/uploads/Adjuntos/Codigo _
Etica _ Suppliers%20y%20Terceros.pdf
Human Rights Policy:
http://www.koandina.com/uploads/paginas/Politica%20
de%20Derechos%20Humanos%20v1.0.pdf
Suppliers and Third Party Code of Ethics:
http://www.koandina.com/uploads/Adjuntos/Codigo _
Etica _ Suppliers%20y%20Terceros.pdf
Embotelladora Andina has a reporting channel
for all its employees:
a. Anonymous Complaints Channel, through
the Company's website, the content of which
will only be accessed by the Company's
Directors’ and Audit Committee, and the persons
designated for this purpose.
b. Formal Complaints Channel, under which any
Person who has information or suspects of a
violation will be allowed.
In 2020 there were 1 complaints of
Discrimination, received by the anonymous
complaints channel. All cases were addressed.
All Suppliers must comply with the standards
and requirements of the Coca-Cola System and
the Guiding Principles for Suppliers. Review the
Suppliers and Third Party Code of Ethics.
The Company respects the right of its
employees to form unions, or become part of
it or not, without fear of reprisals or being
subject to intimidation or harassment. When
employees are represented by a legally
recognized union, we are committed to
establishing a constructive dialogue with their
freely elected representatives. The Company
undertakes to negotiate in good faith with such
representatives.
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
GRI Code
Content
Reference in Report
Response
Links
SOCIAL CONTENT
CHILD LABOR
GRI 408-1
FORCED LABOR
GRI 409-1
SAFETY PRACTICES
GRI 410-1
Operations and suppliers at significant risk for
incidents of child labor and measures taken to
contribute to the abolition of child labor.
Chapter 1: Flexibility and commitment,
paragraph: Commitment with our Suppliers
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Personnel
Operations and suppliers at significant risk for
incidents of forced or compulsory labor.
The prohibition on the recruitment of children
under the age of 18 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.
The cases present in Brazil and Chile respond to
internship programs for job insertion.
Suppliers and Third Party Code of Ethics:
http://www.koandina.com/uploads/Adjuntos/Codigo _
Etica _ Suppliers%20y%20Terceros.pdf
Anonymous reporting procedure:
http://www.koandina.com/uploads/Proc _ Den _ Anoni.pdf
The Company prohibits the use of all forms of
forced labor, including prison labor, compulsory
labor or bonded labor, military, slave and
any other form of human trafficking. 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 claims.
Human Rights Policy:
http://www.koandina.com/uploads/paginas/Politica%20
de%20Derechos%20Humanos%20v1.0.pdf
Suppliers and Third Party Code of Ethics:
http://www.koandina.com/uploads/Adjuntos/Codigo _
Etica _ Suppliers%20y%20Terceros.pdf
Anonymous reporting procedure:
http://www.koandina.com/uploads/Proc _ Den _ Anoni.pdf
Security personnel trained in human rights
policies or procedures.
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: People Development
Security personnel of all facilities is outsourced.
RIGHTS OF INDIGENOUS PEOPLES
GRI 411-1
Incidents of violations involving rights of
indigenous peoples.
HUMAN RIGHTS ASSESSMENT
GRI 412-1
Operations that have been subject to human
rights reviews or impact assessments
There are no incidents of violations of the rights
of indigenous peoples at the close of the report
or in the period.
HUMAN RIGHTS ASSESSMENT
The reporting organization must submit the
following information: 100% of bottling plants
are assessed on human rights periodically by
third parties hired by The Coca-Cola Company.
GRI 412-2
GRI 412-3
LOCAL COMMUNITIES
GRI 413-1
Employee training on human rights policies or
procedures
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: People Development
Significant investment agreements and
contracts that include human rights clauses
or that underwent human rights screening.
All Suppliers must comply with the standards
and requirements of the Coca Cola system, and
the Guiding Principles for Suppliers.
Suppliers and Third Party Code of Ethics:
http://www.koandina.com/uploads/Adjuntos/Codigo _
Etica _ Suppliers%20y%20Terceros.pdf
Operations with local community engagement,
impact assessments and development programs
Chapter 1: Flexibility and commitment,
paragraph: Commitment with the Community
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Community
The relationship with the community is managed
by those responsible for sustainability and
institutional relationships, always aligned to
The Coca-Cola Company and the definitions of its
Public Affairs areas.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
GRI Code
Content
Reference in Report
Response
Links
SOCIAL CONTENT
LOCAL COMMUNITIES
GRI 413-2
Operations with significant negative impacts –
real or potential – on local communities
Chapter 1: Flexibility and commitment,
paragraph: Commitment with the Community
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Community
Significant negative effects have not been
determined in the local communities where we
have operations.
SUPPLIERS SOCIAL ASSESSMENT
GRI 414-1
Percentage of new suppliers that were
examined based on human rights criteria
GRI 414-2
Negative social impacts on the supply chain and
measures taken
Chapter 1: Flexibility and commitment,
paragraph: Commitment with our Suppliers
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Suppliers
Chapter 1: Flexibility and commitment,
paragraph: Commitment with our Suppliers
Chapter 9: Principal Metrics, paragraph:
Agility, Flexibility and commitment,
subparagraph: Suppliers
PUBLIC POLICY
GRI 415-1
Contributions to political parties and/or
representatives.
Embotelladora Andina does not contribute to
political parties and/or representatives.
CUSTOMER HEALTH AND SAFETY
ç
GRI 416-1
GRI 416-2
RESPONSIBLE MARKETING
GRI 417-1
GRI 417-2
GRI 417-3
Percentage of significant product and service
categories whose health and safety impacts
have been evaluated to promote improvements.
Chapter 3: A Total Beverage Company,
paragraph: Broad Portfolio, Channels and
Geography, subparagraph: Offer products of
the highest quality, ensuring their safety
Chapter 9: Principal Metrics, paragraph:
Market leadership, subparagraph: Quality and
excellence
100% of products are analyzed and their
ingredients are adapted as sugar content in new
versions or new brands.
Cases of non-compliance related to the health
and safety impacts of product and service
categories
The organization has not identified voluntary
violations of regulations or codes.
Requirements for information and labelling of
products and services
Chapter 3: A Total Beverage Company,
paragraph: Broad Portfolio, Channels and
Geography, subparagraph: Responsible
Marketing
Cases of non-compliance related to information
and labelling of products and services
Non-compliance cases related to marketing
communications
The organization has not identified voluntary
violations of regulations or codes.
The organization has not identified voluntary
violations of regulations or codes.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
GRI Code
Content
Reference in Report
Response
Links
SOCIAL CONTENT
CUSTOMER PRIVACY
GRI 418-1
SOCIOECONOMIC COMPLIANCE
Informed claims regarding customer privacy
violations and loss of customer data
It has not been recorded in the period
GRI 419-1
Non-compliance with laws and regulations in
the social and economic area
The Organization has not identified violations of
laws or regulations.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1
GLOSSARY
20-F: Form with annual
results that we must report to
the Securities and Exchange
Commission, the agency that
regulates the securities market in
the United States.
FTE: Full Time Equivalent.
Human resources indicator that
divides the working time of several
part-time and full-time employees
among all hours of a given
work period.
LTIR: Loss Time Incident Ratio.
SAP: Systems, Applications and
Products.
LTISR: Loss Time Incident
Severity Ratio.
NARTD: Non-alcoholic beverages
ready to drink.
NYSE: New York Stock Exchange.
FTSE4Good: Series of sustainable
investment stock indices launched
in 2001 by the FTSE Group.
On premise: Sales channel for
restaurants, pubs, hotels and casinos.
Sarbanes-Oxley: U.S. Federal
Act setting standards for the
board of directors and accounting
mechanisms of all companies listed
on the stock exchanges of the
United States.
GDA: Guideline Daily Amounts.
SSDs: Sparkling Soft Drinks.
GHG: Greenhouse Gases.
GSM: General Shareholders’
Meeting
KORE: The Coca-Cola Operating
Requirements. Policies and
practices of The Coca-Cola
Company regulating bottlers in
several aspects.
PET: Polyethylene terephthalate.
Ref PET: Refillable PET. The
returnable plastic bottle.
rPET: Recycled PET.
Stills: Categories of non-alcoholic
non-carbonated beverages
TCCC: The Coca-Cola Company.
ADR: American Depository Receipts.
Contour bottle: Classic
Coca-Cola bottle.
Unit Cases (UCs): Conventional
measurement unit used to measure
sales volume in the Coca-Cola
System worldwide. Equivalent to
24 - 8 oz or 237 cc bottles. (5.678
liters approximately).
CMF: Comisión para el Mercado
Financiero - Financial Market
Commission, the agency that regulates
the securities market in Chile.
CO2: Chemical formula of
carbon dioxide used to carbonate
beverages.
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 EY Chile
Avda. Presidente Riesco 5435
piso 4, Las Condes
Santiago
Tel: +56 (2) 2676 1000
www.eychile.cl
Limited Assurance Statement of Embotelladora Andina Sustainability Report 2020
(free translation from the original in Independent Spanish)
To the President and Directors of
Embotelladora Andina
Scope
Independence
We have performed an
engagement on
Embotelladora Andina 2020 Sustainability Report.
independent
the
information and data presented
limited assurance
in
The Management of Embotelladora Andina is responsible for the
preparation of the Sustainability Report. The Management of
Embotelladora Andina is also responsible for the data and
affirmations included in Sustainability Report, definition of the
scope and management and control of the information systems
that have provided the information reported.
EY Consulting SpA is an independent firm, unrelated to the
calculation, preparation or provision of economic, environmental
or social data presented
the Embotelladora Andina
in
Sustainability Report.
Our Responsibility
Our responsibility is limited to the scope and procedures previously
mentioned, corresponding to a limited assurance verification which
is the basis for our conclusions.
Standards and Assurance Procedures
Conclusions
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 Core
version of the guidelines for the preparation of sustainability
reports under the Global Reporting Initiative (GRI).
Our procedures have been designed to:
► Determine whether the information and data presented in
the 2020 Sustainability Report are duly supported by
evidence.
► Verify the traceability of the information disclosed by
Embotelladora Andina in its Sustainability Report 2020.
► Determine whether Embotelladora Andina has prepared
its 2020 Sustainability 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
Subject to our limitations of scope noted above and based on
our procedures for this limited assurance of the Embotelladora
Andina 2020 Sustainability 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 2020 Sustainability Report are not presented fairly.
► Embotelladora Andina 2020 Sustainability Report has not
been prepared in accordance with the GRI Standards for
the preparation of sustainability reports under the Global
Reporting Initiative.
► Embotelladora Andina self-declared “Core” 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 Sustainability Report 2020 which are detailed in a
separate
the
Administration of Embotelladora Andina.
recommendations, presented
report of
to
Our limited assurance procedures included enquiries to the
Management of Embotelladora Andina
the
development of the Sustainability Report process, in addition to
other analytical procedures and sampling methods as described
below:
involved
in
Truly yours,
EY Consulting SpA
► Interviews with key Embotelladora Andina personnel, in
order to assess the 2020 Sustainability Report preparation
process, the definition of its content and its underlying
information systems.
► Examination of supporting documents provided by
Embotelladora Andina.
► Review of
formulas and calculations by way of
recalculation.
► Review of the 2020 Sustainability Report in order to
ensure its phrasing and format does not mislead the
reader regarding the information presented.
Chris Heidrich
Partner, Assurance
Elanne Almeida
Partner, ESG
March 24th, 2021
I-00140/21
RGE/msr
60240688
STATEMENT
RESPONSIBILITY
of
The 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 2020 Integrated Annual Report, in compliance with General Rule No. 30 for
Chile’s Financial Market Commission dated November 10, 1989.
JUAN CLARO GONZÁLEZ
JOSÉ ANTONIO GARCÉS SILVA
MARCO ANTONIO ARAUJO
EDUARDO CHADWICK CLARO
GEORGES DE BOURGUIGNON ARNDT
FELIPE JOANNON VERGARA
Chairman of the Board
of Directors
Rut 5.663.828-8
Vice Chairman of the Board
of Directors
Rut 8.745.864-4
Director
Foreign citizen
Director
Rut 7.011.444-5
Director
Rut 7.269.147-4
Director
Rut 6.558.360-7
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PILAR LAMANA GAETE
Independent Director
Rut 8.538.550-K
ROBERTO MERCADÉ
Director
Foreign citizen
GONZALO PAROT PALMA
Independent Director
Rut 6.703.799-5
CARMEN ROMÁN ARANCIBIA
Director
Rut 10.335.491-9
MARIANO ROSSI
Director
Foreign citizen
GONZALO SAID HANDAL
Director
Rut 6.555.478-K
SALVADOR SAID SOMAVÍA
RODRIGO VERGARA MONTES
MIGUEL ÁNGEL PEIRANO
Director
Rut 6.379.626-3
Director
Rut 7.980.977-2
Chief Executive Officer
Rut 23.836.584-8
SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 aCKNOWLEDGEMENTS
GENERAL COORDINATION
Carolina Novoa
Paula Vicuña, Mara Rey, Consuelo Barrera,
Mariana González and Jenny Navas
COLLABORATION
Juan Antonio Miranda, Neiva Vieira, Sheila Chiriani,
Carlos Moncada, Suenia Silva, Victoria Claro,
Francisca Ariztía, Gonzalo Aguirre, Bruno Damaso,
Sergio Vallejos and Pía Fertilio.
CONTENT ASSISTANCE AND EDITING
www.deva.es
DESIGN
www.disenohumano.cl
We invite you to send us your suggestions, doubts
or any comments linked to this Integrated
Report to: andina.ir@koandina.com
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1 INTEGRATED REPORT
annual
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SUSTAINABLE VALUE CREATION STRATEGY2A TOTAL BEVERAGE COMPANY3FLEXIBILITY AND COMMITMENT5CORPORATEGOVERNANCE6INFORMATION FOR THE FINANCIAL MARKET7OUR COMPANY8PRINCIPALMETRICS9EXHIBITS10OUR VALUECHAIN, RESOURCE MANAGEMENT4WE ARECOCA-COLA ANDINA1